Document:

Credit Agreement, dated as September 11, 2003

 Exhibit 10.18 
  
 EXECUTION COPY 
  

  
 CREDIT AGREEMENT 

 
 by and among 
 JOHNSTOWN AMERICA CORPORATION, 
 FREIGHT CAR SERVICES, INC., 
 JAC OPERATIONS, INC. 
 and

 JAIX LEASING COMPANY, 
 as Co-Borrowers 
  
 and 
  
 LASALLE BANK NATIONAL ASSOCIATION, 
 as the Bank 
  

  
 Dated September 11, 2003 
  

  
 TABLE OF CONTENTS

  

			
	 ARTICLE I DEFINITIONS
	  	1
	 SECTION 1.1. DEFINITIONS
	  	1
		
	 ARTICLE II CREDIT FACILITY
	  	20
		
	 SECTION 2.1 COMMITMENT AS TO REVOLVING
FACILITY
	  	20
	 SECTION 2.2 PROCEDURES FOR BORROWING UNDER THE
REVOLVING FACILITY
	  	20
	 SECTION 2.3. CONVERTING FLOATING RATE FUNDINGS TO
EURODOLLAR FUNDINGS; PROCEDURES
	  	21
	 SECTION 2.4. PROCEDURES AT END OF AN
INTEREST PERIOD
	  	21
	 SECTION 2.5. SETTING AND NOTICE OF
RATES
	  	21
	 SECTION 2.6. COMMITMENT TO ISSUE LETTERS OF
CREDIT
	  	22
	 SECTION 2.7. INTEREST ON NOTE
	  	26
	 SECTION 2.8. OBLIGATION TO REPAY ADVANCES;
REPRESENTATIONS
	  	27
	 SECTION 2.9. NOTE; AMORTIZATION
	  	27
	 SECTION 2.10. INTEREST DUE DATES
	  	27
	 SECTION 2.11. COMPUTATION OF INTEREST AND
FEES
	  	27
	 SECTION 2.12. FEES
	  	27
	 SECTION 2.13. USE OF PROCEEDS
	  	28
	 SECTION 2.14. VOLUNTARY REDUCTION OR TERMINATION OF
THE REVOLVING COMMITMENT; PREPAYMENTS
	  	28
	 SECTION 2.15. PAYMENTS
	  	29
	 SECTION 2.16. TAXES
	  	30
	 SECTION 2.17. INCREASED COSTS; CAPITAL ADEQUACY;
FUNDING EXCEPTIONS
	  	31
	 SECTION 2.18. FUNDING LOSSES
	  	34
	 SECTION 2.19. RIGHT OF BANK TO FUND
THROUGH OTHER OFFICES
	  	34
	 SECTION 2.20. DISCRETION OF BANK AS TO
MANNER OF FUNDING
	  	35
	 SECTION 2.21. CONCLUSIVENESS OF STATEMENTS; SURVIVAL
OF PROVISIONS
	  	35
		
	 ARTICLE III CONDITIONS OF LENDING
	  	35
		
	 SECTION 3.1. CONDITIONS PRECEDENT TO THE INITIAL
ADVANCE
	  	35
	 SECTION 3.2. CONDITIONS PRECEDENT TO ALL
ADVANCES
	  	37
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	37
		
	 SECTION 4.1. LEGAL EXISTENCE AND POWER; NAME;
CHIEF EXECUTIVE OFFICE
	  	37
	 SECTION 4.2. AUTHORIZATION FOR BORROWINGS AND
LETTERS OF CREDIT; NO CONFLICT AS TO LAW OR AGREEMENTS
	  	38
	 SECTION 4.3. LEGAL AGREEMENTS
	  	39
	 SECTION 4.4. SUBSIDIARIES
	  	39
	 SECTION 4.5. FINANCIAL CONDITION; NO ADVERSE
CHANGE
	  	39
	 SECTION 4.6. LITIGATION
	  	39
	 SECTION 4.7. REGULATION U
	  	39
	 SECTION 4.8. TAXES
	  	39

  

			
	 SECTION 4.9. TITLES AND LIENS
	  	40
	 SECTION 4.10. PLANS
	  	40
	 SECTION 4.11. DEFAULT
	  	40
	 SECTION 4.12. ENVIRONMENTAL COMPLIANCE
	  	40
	 SECTION 4.13. SUBMISSIONS TO BANK
	  	41
	 SECTION 4.14. FINANCIAL SOLVENCY
	  	41
	 SECTION 4.15. INFORMATION REGARDING REAL ESTATE
	  	42
	 SECTION 4.16. INTELLECTUAL PROPERTY RIGHTS
	  	42
		
	 ARTICLE V AFFIRMATIVE COVENANTS OF THE CO-BORROWERS
	  	43
		
	 SECTION 5.1. REPORTING REQUIREMENTS
	  	43
	 SECTION 5.2. BOOKS AND RECORDS; INSPECTION AND
EXAMINATION
	  	46
	 SECTION 5.3. COMPLIANCE WITH LAWS
	  	46
	 SECTION 5.4. PAYMENT OF TAXES AND OTHER
CLAIMS
	  	46
	 SECTION 5.5. MAINTENANCE OF PROPERTIES
	  	46
	 SECTION 5.6. INSURANCE
	  	47
	 SECTION 5.7. PRESERVATION OF LEGAL EXISTENCE
	  	47
	 SECTION 5.8. CREATION OF NEW CREDIT PARTIES
AND SUBSIDIARIES
	  	47
	 SECTION 5.9. MINIMUM EBITDA
	  	47
	 SECTION 5.12. MAXIMUM LEVERAGE RATIO
	  	48
	 SECTION 5.13. LANDLORD WAIVERS
	  	48
		
	 ARTICLE VI NEGATIVE COVENANTS
	  	48
		
	 SECTION 6.1. LIENS
	  	48
	 SECTION 6.2. INDEBTEDNESS
	  	50
	 SECTION 6.3. GUARANTIES
	  	50
	 SECTION 6.4. INVESTMENTS
	  	51
	 SECTION 6.5. RESTRICTED PAYMENTS
	  	51
	 SECTION 6.6. RESTRICTIONS ON SALE AND ISSUANCE
OF SUBSIDIARY STOCK
	  	52
	 SECTION 6.7. TRANSACTIONS WITH AFFILIATES
	  	52
	 SECTION 6.8. SALE OR TRANSFER OF ASSETS;
SUSPENSION OF BUSINESS OPERATIONS
	  	52
	 SECTION 6.9. CONSOLIDATION AND MERGER; ASSET
ACQUISITIONS
	  	53
	 SECTION 6.10. SALE AND LEASEBACK
	  	53
	 SECTION 6.11. RESTRICTIONS ON NATURE OF
BUSINESS
	  	53
	 SECTION 6.12. ACCOUNTING
	  	53
	 SECTION 6.13. CAPITAL EXPENDITURES
	  	53
	 SECTION 6.14. HAZARDOUS SUBSTANCES
	  	53
		
	 ARTICLE VII EVENTS OF DEFAULT; RIGHTS AND REMEDIES
	  	54
		
	 SECTION 7.1. EVENTS OF DEFAULT
	  	54
	 SECTION 7.2. RIGHTS AND REMEDIES
	  	56
		
	 ARTICLE VIII MISCELLANEOUS
	  	57
		
	 SECTION 8.1. NO WAIVER; CUMULATIVE REMEDIES
	  	57
	 SECTION 8.2. AMENDMENTS, REQUESTED WAIVERS, ETC.
	  	57

  

 ii 

			
	 SECTION 8.3. ADDRESSES FOR NOTICES, ETC.
	  	58
	 SECTION 8.4. COSTS AND EXPENSES
	  	58
	 SECTION 8.5. INDEMNITY
	  	58
	 SECTION 8.6. EXECUTION IN COUNTERPARTS
	  	59
	 SECTION 8.7. GOVERNING LAW; JURISDICTION; WAIVER OF
JURY TRIAL
	  	59
	 SECTION 8 8. INTEGRATION; INCONSISTENCY
	  	60
	 SECTION 8.9. AGREEMENT EFFECTIVENESS
	  	60
	 SECTION 8.10. ADVICE FROM INDEPENDENT COUNSEL
	  	60
	 SECTION 8.11. JUDICIAL INTERPRETATION
	  	61
	 SECTION 8.12. BINDING EFFECT; NO ASSIGNMENT BY
CO-BORROWERS
	  	61
	 SECTION 8.13. SEVERABILITY OF PROVISIONS
	  	61
	 SECTION 8.14. HEADINGS
	  	61
	 SECTION 8.15 COUNTERPARTS
	  	61

  

 iii 

 EXHIBITS AND SCHEDULES 
  

			
	 EXHIBIT A
	  	Borrowing Base Certificate
		
	 EXHIBIT B
	  	Revolving Note
		
	 EXHIBIT C
	  	Notice of Borrowing under Revolving Facility
		
	 EXHIBIT D
	  	Notice of Conversion
		
	 EXHIBIT E
	  	Notice of Rollover
		
	 EXHIBIT F
	  	Certificate of Officer as to Annual Financial Statements
		
	 EXHIBIT G
	  	Certificate of Officer as to Quarterly Financial Statements
		
	 Schedule 4.1
	  	Doing Business Names; Business Locations
		
	 Schedule 4.4
	  	Subsidiaries
		
	 Schedule 4.6
	  	Litigation
		
	 Schedule 4.10
	  	ERISA Plans
		
	 Schedule 4.12
	  	Environmental Matters
		
	 Schedule 4.15
	  	Information Regarding Real Estate
		
	 Schedule 4.16
	  	Intellectual Property
		
	 Schedule 6.1
	  	Outstanding Liens
		
	 Schedule 6.2
	  	Outstanding Indebtedness
		
	 Schedule 6.3
	  	Outstanding Guaranties

  

 iv 

  
 CREDIT AGREEMENT

  
 This Credit Agreement (“Credit Agreement”) is
dated as of September 11, 2003, by and among JOHNSTOWN AMERICA CORPORATION, a Delaware corporation, FREIGHT CAR SERVICES, INC., a Delaware corporation, JAC OPERATIONS, INC., a Delaware corporation, and JAIX LEASING
COMPANY, a Delaware corporation (each a “Co-Borrower”, and collectively the “Co-Borrowers”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking association (the “Bank”). 
  
 BACKGROUND INFORMATION 
  
 The Co-Borrowers have requested that the Bank extend a revolving credit
facility to the Co-Borrowers. 
  
 The Bank is willing to extend
the requested credit facility to the Co-Borrowers pursuant to the terms and subject to the conditions set forth in this Agreement. 
  
 ACCORDINGLY, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Co-Borrowers and the Bank hereby agree as follows: 
  
 ARTICLE
I 
  
 Definitions 
  
 Section 1.1. Definitions. For all purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires: 
  
 (a) the terms defined in the preamble have the meanings therein assigned to them; 
  
 (b) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;
and 
  
 (c) all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with GAAP. 
  
 “Accounts” means the aggregate unpaid obligations of customers and other account debtors of the Co-Borrowers arising out of the sale of goods or the rendition of services by the Co-Borrowers on an open
account or deferred payment basis. 
  
 “Advance” means a
loan of funds by the Bank to the Co-Borrowers under the Revolving Facility. 
  

 “Affiliate” or “Affiliates” means any Person controlled by, controlling or under
common control with the subject Person, including (without limitation) any Subsidiary of the subject Person. For purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, however, that the term “Affiliate” shall in no event include the Bank.

  
 “Agreement” means this Credit Agreement and all
exhibits, amendments and supplements hereto and modifications hereof. 
  
 “Bank” has the meaning specified in the preamble. 
  
 “Borrowing” means a borrowing by the Co-Borrowers under the Revolving Facility, consisting of the aggregate of all Advances made by the Bank to the Co-Borrowers pursuant to a request under Section
2.2. 
  
 “Borrowing Base” means, at any time, the
lesser of: 
  
 (a) the Revolving Commitment, or

  
 (b) the sum of: 
  
 (i) 85% of all Eligible Accounts and Eligible Foreign
Accounts; 
  
 (ii) 70% of all Eligible Finished
Inventory; 
  
 (iii) 60% of all Eligible
Semi-Finished Inventory; and 
  
 (iv) 100% of the
Cash Collateral; 
  
 in any case, computed in accordance with the most recent
Borrowing Base Certificate submitted to, and accepted by, the Bank. 
  
 “Borrowing Base Certificate” means a certificate in substantially the form attached hereto as Exhibit A, duly completed and certified by the Co-Borrowers, pursuant to which the Co-Borrowers set forth their Accounts,
Eligible Accounts, Eligible Finished Inventory and Eligible Semi-Finished Inventory and the applicable Borrowing Base as of a particular date. 
  
 “Business Day” means any day other than a Saturday or Sunday on which national banks are required to be open for business in Chicago, Illinois
and, in addition, if such day relates to a Eurodollar Funding or fixing of a Eurodollar Rate, a day on which dealings in U.S. dollar deposits are carried on in the London interbank eurodollar market. 
  
 “Capital Adequacy Rule” has the meaning specified in Section
2.17(b)(ii). 
  

 2 

 “Capital Adequacy Rule Change” has the meaning specified in Section 2.17(b)(iii).

  
 “Capital Expenditures” means the cost of any real
property, plant and equipment, and any other fixed asset or improvement, or replacement, substitution or addition thereto which is required by GAAP to be included in or reflected as property, plant and equipment or similar fixed assets on the
balance sheet of a Person, having useful life of more man one (1) year, or any other payment which is otherwise required to be capitalized, including as a cost the aggregate amount of expenses, charges, goods exchanged or services rendered or
payments due or arising in connection with the direct or indirect acquisition of such assets or improvements, replacements, substitutions or additions by way of increased product or service charges or offset items or barter exchange or in connection
with Capital Leases, and the entire principal amount of any Debt assumed or incurred in connection therewith, in each case without duplication; provided, however, that Capital Expenditures shall not include expenditures made in
connection with the replacement, substitution or restoration of assets to the extent financed (i) from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored or (ii) with
awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced. 
  
 “Capital Expenditures Threshold” means $5,000,000, unless such amount is adjusted pursuant the written consent of the Bank, in which event
“Capital Expenditure Threshold” shall mean such adjusted amount. 
  
 “Capital Lease” means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal property of such Person that, in conformity with GAAP, is accounted for as
a capital lease on the balance sheet of such Person. 
  
 “Capital Lease Payments” of any Person means, with respect to the applicable Covenant Computation Period, the total expenditures by such Person in respect of Capital Leases during such period, as determined in accordance with
GAAP. 
  
 “Caravelle” means Caravelle Investment Fund,
LLC, a Delaware limited liability company. 
  
 “Caravelle
Deferred Financing Fee Agreement” means that Caravelle Deferred Financing Fee Agreement by and between Caravelle and JAC Holdings, dated as of June 3, 1999. 
  
 “Carroll” means John E. Carroll, Jr., an individual. 
  
 “Cash Collateral” means the cash or cash equivalents pledged by the Co-Borrowers to the Bank pursuant to the terms
of the Securities Account Pledge Agreement. 
  

 3 

 “Cash Taxes” means taxes funded using the Consolidated Group’s cash not financed by the
Bank. 
  
 “Change of Control” means any event,
circumstance or occurrence that results in (a) Carroll (i) ceasing to be Chairman and CEO of the Co-Borrowers or (ii) not being the owner of at least six percent (6%) of all issued and outstanding capital stock of JAC Holdings entitled to vote or
otherwise not having operating control of the Co-Borrowers; (b) Caravelle not being the owner of at least twenty percent (20%) of all issued and outstanding capital stock of JAC Holdings entitled to vote or otherwise not having operating control of
the Co-Borrowers; (c) Hancock not being the owner of at least eighteen percent (18%) of all issued and outstanding capital stock of JAC Holdings entitled to vote or otherwise not having operating control of the Co-Borrowers, (d) the Santomero
Investor not being the owner of at least eighteen percent (18%) of all issued and outstanding capital stock of JAC Holdings entitled to vote or otherwise not having operating control of the Co-Borrowers; or (e) Transportation Investment Partners,
L.L.C. not being the owner of at least thirteen percent (13%) of all issued and outstanding capital stock of JAC Holdings entitled to vote or otherwise not having operating control of the Co-Borrowers; provided, however, that as long
as Caravelle, Hancock, the Santomero Investor, and Transportation Investment Partners, L.L.C. collectively retain at least fifty percent (50%) of the capital stock of JAC Holdings entitled to vote which such entities held as of the Closing Date,
then no Change of Control shall occur as a result of any transfer of capital stock among those Persons who own capital stock of JAC Holdings as of the Closing Date. 
  
 “Cirar Consulting Agreement” means that Cirar Consulting Agreement by and between James Cirar, JAC Holdings, the
Co-Borrowers and JAC Patent, dated as of June 3, 1999. 
  
 “Closing Date” means the date of this Agreement. 
  
 “Co-Borrowers” has the meaning specified in the preamble. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Collateral” means all personal property of each Credit Party in which the Bank has been granted a security interest or lien pursuant to any
Security Document, together with all substitutions and replacements for and products and proceeds of any of the foregoing. 
  
 “Commitment Fee” has the meaning specified in Section 2.12(b). 
  
 “Consolidated Group” means JAC Holdings and its consolidated Subsidiaries, including, without limitation, each
Co-Borrower and each Guarantor. 
  
 “Covenant Computation
Date” means the last day of each fiscal quarter of the Co-Borrowers, commencing on September 30, 2003. Compliance with the Financial Covenants will be determined as follows: (a) quarterly testing of the Financial Covenants 

  

 4 

 
(other than the minimum EBITDA in Section 5.9 and the leverage ratio in Section 5.12) based on actual performance of the Consolidated Group for
the fiscal quarter then-ended and (b) with respect to determining compliance with Section 5.9 and Section 5.12, EBITDA shall be cumulative EBITDA for the Covenant Computation Period. 
  
 “Covenant Computation Period” means the four (4) consecutive fiscal
quarters immediately preceding and ending on a Covenant Computation Date. 
  
 “Credit Party” or “Credit Parties” means the Co-Borrowers or a Guarantor, or all of them collectively, as the context may require, including without limitation each additional Person which becomes
a Guarantor after the Closing Date pursuant to Section 5.8 hereof. 
  
 “Debt” of any Person means., without duplication (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments,
(c) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (d) all obligations of such Person as lessee under Capital Leases which have
been or should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (e) all indebtedness secured by a lien on any asset of such Person, whether or not such indebtedness has been assumed by such Person, (f) all
indebtedness and other obligations of others guaranteed by such Person, (g) all obligations of such Person to pay the deferred purchase price for goods or services, whether or not delivered or accepted (i.e., take-or-pay and similar obligations),
excluding trade accounts payable incurred in the ordinary course of business, (h) all net obligations of such Person under any interest rate swap program or any similar agreement, arrangement or undertaking relating to fluctuations in interest
rates, (i) all obligations, contingent or otherwise, with respect to the face amount of letters of credit (whether or not drawn) and bankers’ acceptances issued for the account of such Person, and (j) all obligations of such Person to advance
funds to, or purchase assets, property or services from, any other Person in order to maintain the financial condition of such Person. 
  
 “Default” means an event that, with giving of notice or passage of time or both, would constitute an Event of Default. 
  
 “Default Rate” shall have the meaning specified in Section
2.7(c). 
  
 “EBITDA” of any Person means, with
respect to the applicable Covenant Computation Period, the sum of such Person’s (a) pre-tax net income, (b) net Interest Expense and (c) depreciation, depletion, and amortization of tangible and intangible assets, before (i) income from
discontinued operations, (ii) minority interests, and (iii) extraordinary gains and losses, in each case for such period, computed and calculated in accordance with GAAP. 
  
 “Eligible Accounts” means all unpaid Accounts arising from a bona fide sale of Inventory or the rendition of
services by the Co-Borrowers in the ordinary course of 

  

 5 

 
business on usual and ordinary terms, evidenced by an invoice and net of any applied or unapplied credits or other allowance (with any such unapplied credits
or other allowances being applied to the most current Account of the Co-Borrowers); provided, however, that the following shall in no event be deemed Eligible Accounts: 
  
 (a) that portion of Accounts over ninety (90) days past invoice date or sixty (60) days past the specified
due date; 
  
 (b) Accounts owed by any unit of
government, whether foreign or domestic, unless such Account is a U.S. Government obligation and the Bank’s pledge and assignment of such Account has been confirmed by duly acknowledged and accepted documents complying with the Assignment of
Claims Act which have been delivered to and approved by the Bank; 
  
 (c) that portion of Accounts that are conditional, disputed or subject to a known claim of offset or a contra account or with respect to which a defense, counterclaim, right to discount or deduction has been asserted;

  
 (d) Accounts which are owed by an account
debtor whose principal corporate office is located outside the United States or Canada; 
  
 (e) Accounts owed by an account debtor that is the subject of dissolution, liquidation, bankruptcy proceedings or has gone out of
business; 
  
 (f) Accounts owed by an Affiliate
of the Co-Borrowers and Accounts with account debtors with whom any Co-Borrower is obligated with respect to goods sold or services rendered by such account party; 
  
 (g) Accounts not subject to a duly perfected security interest in favor of the Bank or which are subject to
any lien, security interest or claim in favor of any Person other than the Bank or GE Capital; 
  
 (h) that portion of Accounts that has been restructured, extended, amended or modified as a result of an account debtor’s inability
to pay; 
  
 (i) that portion of Accounts relating
to Eligible Finished Inventory; 
  
 (j) that
portion of Accounts constituting a finance charge, service charge or interest; and 
  
 (k) Accounts owed by an account debtor, regardless of whether otherwise eligible, if twenty-five percent (25%) or more of the total amount
due under Accounts from such account debtor is ineligible under clauses (a), (c) or (h) above. 
  
 “Eligible Finished Inventory” means Inventory consisting of Finished Railcars, at the selling price as determined in accordance with the
applicable sales contract; 

  

 6 

 
provided, however, that the following shall in no event be deemed Eligible Finished Inventory: 
  
 (a) Inventory that is (i) in transit; (ii) located at any
warehouse or leased premises with respect to which the Bank has not received an acceptable warehouseman or landlord release and waiver or other similar documentation acceptable to the Bank; (iii) located outside of the United States; (iv) covered by
any negotiable or non-negotiable warehouse receipt, bill of lading or other document of title; or (v) on consignment to or from any other Person or subject to any bailment of any kind or description; 
  
 (b) Inventory older than 365 days; 
  
 (c) Inventory that, in the commercially reasonable judgment
of the Bank, is or has become unmerchantable, unmarketable, spoiled, damaged, obsolete or otherwise unfit for sale; 
  
 (d) Inventory constituting Eligible Semi-Finished Inventory; 
  
 (e) Inventory which is not owned by the Co-Borrowers free and clear of all liens, claims and rights of
others (including any rights of reclamation or equitable claims), is subject to a security interest in favor of any Person other than the Bank or GE Capital, or in which the Bank does not have a valid and perfected first priority security interest;

  
 (f) Inventory which constitutes “bill
and hold” goods, except to the extent the Account arising from such “bill and hold” sale is not otherwise included as an Eligible Account; and 
  

(g) Otherwise Eligible Finished Inventory for which a landlord/warehouseman lien waiver has not been delivered as required in
Section 5.13. 
  
 “Eligible Foreign Accounts”
means an otherwise Eligible Account except that such Account is due and owing by an Account debtor located outside the United States or Canada; but excluding any Accounts having any of the following characteristics: 
  
 (a) That portion of Accounts not yet earned by the final
delivery of goods or rendition of services, as applicable, by the Co-Borrowers to the customer; 
  
 (b) That portion of Accounts for which an invoice has not been sent to the applicable account debtor; 
  
 (c) Accounts owed by any unit of government; 
  
 (d) That portion of Accounts that constitutes advertising,
finance charges, service charges or sales or excise taxes; 
  

 7 

 (e) That portion of Accounts owed by any one Account debtor located outside the United
States that would permit Advances supported by such Account debtor’s Accounts to exceed $500,000 if such Account debtor is rated BBB-minus or better by Standard and Poors, or is controlled by entities rated BBB-minus or better by Standard and
Poors; 
  
 (f) Accounts denominated in any
currency other than United States dollars, Canadian dollars, Swiss francs, Japanese yen, United Kingdom pounds sterling or European Union Euros; 
  
 (g) Accounts owed by debtors located in countries not acceptable to the Lender in its sole discretion; or 
  
 (h) Accounts otherwise deemed unacceptable to the Lender in
its sole discretion. 
  
 “Eligible Semi-Finished
Inventory” means Inventory consisting of railcars and railcar kits being manufactured as a result of or pursuant to purchase orders issued by Persons other than Affiliates of the Co-Borrowers, at the lower of cost or market value as determined
in accordance with GAAP; provided, however, that the following shall in no event be deemed Eligible Semi-Finished Inventory: 
  
 (a) Inventory that is (i) in transit; (ii) located at any warehouse or leased premises with respect to which the Bank has not received an
acceptable warehouseman or landlord release and waiver or other similar documentation acceptable to the Bank; (iii) located outside of the United States; (iv) covered by any negotiable or non-negotiable warehouse receipt, bill of lading or other
document of title; or (v) on consignment to or from any other Person or subject to any bailment of any kind or description; 
  
 (b) Inventory older than 365 days; 
  
 (c) Inventory that, in the commercially reasonable judgment of the Bank, is or has become unmerchantable, unmarketable, spoiled, damaged,
obsolete or otherwise unfit for sale; 
  
 (d)
Inventory which is not owned by the Co-Borrowers free and clear of all liens, claims and rights of others (including any rights of reclamation or equitable claims), is subject to a security interest in favor of any Person other than the Bank or GE
Capital or in which the Bank does not have a valid and perfected first priority security interest; 
  
 (e) Inventory which constitutes “bill and hold” goods, except to the extent the Account arising from such “bill and
hold” sale is not otherwise included as an Eligible Account; 
  

 8 

 (f) Otherwise Eligible Semi-Finished Inventory for which a landlord/warehouseman lien
waiver has not been delivered as required in Section 5.13; and 
  
 (g) Railcars being manufactured without purchase orders. 
  
 “Environmental Laws” has the meaning specified in Section 4.12. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” means, with respect to a Credit Party, any trade or business (whether or not incorporated) that
is, along with such Credit Party, a member of a controlled group of corporations or a controlled group of trades or businesses, as described in sections 414(b) and 414(c), respectively, of the Code. 
  
 “Eurodollar Advance” means any Advance which bears interest at a
rate determined by reference to a Eurodollar Rate. 
  
 “Eurodollar Base Rate” means, with respect to an Interest Period, the LIBOR Index Rate or if the LIBOR Index Rate cannot be determined, the rate per annum equal to the rate (rounded up if necessary to the nearest one one-hundredth
of one percent (1/100%)) determined by the Bank in accordance with Section 2.5 to be a rate at which U.S. dollar deposits are offered to major banks in the London interbank eurodollar market for funds to be made available on the first day of
such Interest Period and maturing at the end of such Interest Period. 
  
 “Eurodollar Funding” means any Funding which bears interest at a rate determined by reference to a Eurodollar Rate, including Eurodollar Advances. 
  
 “Eurodollar Rate” means, with respect to an Interest Period, the rate obtained by adding (a) the applicable Margin
to (b) the rate obtained by dividing (i) the applicable Eurodollar Base Rate by (ii) a percentage equal to one (1.00) minus the applicable percentage (expressed as a decimal) prescribed by the Board of Governors of the Federal Reserve System
(or any successor thereto) for determining the maximum reserve requirements applicable to Eurodollar fundings (currently referred to as “Eurocurrency Liabilities” in Regulation D) or any other maximum reserve requirements applicable to a
member bank of the Federal Reserve System with respect to such eurodollar fundings. 
  
 “Event of Default” has the meaning specified in Section 7.1. 
  
 “Financial Covenants” means the covenants contained in Sections 5.9 through 5.12 and 6.13. 
  

 9 

 “Finished Railcars” means railcars for which production of the railcars has been completed, a
customer has accepted the railcars, and the railcars have not been shipped or invoiced to the customer. 
  
 “Fixed Charge Coverage Ratio” of the Consolidated Group means, with respect to any Covenant Computation Date, the ratio (a) of the Consolidated
Group’s EBITDA plus expenses and/or settlement costs, without duplication, of up to $5,000,000 in the aggregate related to the Pending Employment Litigation and minus the sum of the Consolidated Group’s (i) Capital
Expenditures (net of Capital Expenditures made using the Consolidated Group’s cash not financed by the Bank or another lender) and (ii) Cash Taxes, to (b) the sum of the Consolidated Group’s (i) net Interest Expense, (ii) Holding Company
Note Payments to the extent such payments exceed the Minimum Account Balance under the Securities Account Pledge Agreement and only to the extent such Holding Company Note Payments are permitted under this Agreement, the GE Capital Loan Agreement,
the Holding Company Subordination Agreement, and the subordination granted GE Capital in connection with the GE Capital Loan Agreement, (iii) GE Capital Loan Agreement Payments, (iv) Capital Lease Payments, and (v) debt service on any Debt permitted
under Section 6.2. The one-time payment of $9,000,000 to be made from proceeds of the GE Capital Loan Agreement concurrently with the execution of such agreement shall not be included in the calculation of Fixed Charge Coverage Ratio. 
  
 “Floating Rate” means an annual rate at all times equal to the sum
of (a) the Prime Rate and (b) the applicable Margin, which Floating Rate shall change when and as the Prime Rate changes. 
  
 “Floating Rate Advance” means any Advance which bears interest at a rate determined by reference to the Floating Rate. 
  
 “Floating Rate Funding” means any Funding which bears interest at a
rate determined by reference to the Floating Rate, including Floating Rate Advances. 
  
 “Funded Debt” of any Person means all Debt of the Consolidated Group not constituting Subordinated Debt, but excluding any Debt arising hereunder which is secured by the Cash Collateral. 
  
 “Funding” means a designated portion of outstanding principal
indebtedness evidenced by the Note which bears interest at a rate determined by reference to a particular Eurodollar Rate or Floating Rate, as the case may be. 
  

“GAAP” means generally accepted accounting principles as in effect from time to time applied on a basis consistent with the accounting
practices applied in the financial statements referred to in Section 4.5. 
  
 “GE Capital” means General Electric Capital Corporation, a Delaware corporation. 
  

 10 

 “GE Capital Loan Agreement” means the Credit Agreement which the Co-Borrowers anticipate
executing with GE Capital within 45 days of the Closing Date. 
  
 “GE Capital Loan Agreement Payments” means any payments made pursuant to the terms of the GE Capital Loan Agreement. 
  
 “Guarantor” or “Guarantors” means, as the context shall require, JAC Patent, JAC Holdings, and JAC Intermedco, together with each and
every additional Person which shall execute and deliver a Guaranty for the benefit of the Bank pursuant to Section 5.8 hereof. 
  
 “Guaranty” or “Guaranties” means a guaranty of a Guarantor made in favor of the Bank guarantying payment of all Obligations, or all of
them collectively, as the context may require, and all amendments and supplements thereto and modifications thereof. 
  
 “Hancock” means, collectively, Hancock Mezzanine Partners L.P. and Hancock Mutual Life Insurance Company. 
  
 “Hancock Management Agreements” means those management services
agreements by and between Hancock and JAC Holdings, dated as of June 3, 1999. 
  
 “Hazardous Substance” means any asbestos, urea-formaldehyde, polychlorinated biphenyls, nuclear fuel or material, chemical waste, radioactive material, explosives, known carcinogens, petroleum products and
by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials or substances listed or identified in, or regulated by, any Environmental Laws. 
  
 “Holding Company Note Payments” means those payments made pursuant to the Holding Company Notes. 
  
 “Holding Company Notes” means those notes issued by Rabbit Hill
Holdings, Inc., in favor of Caravelle and Hancock, dated as of June 3, 1999, and bought by Caravelle, Hancock Mezzanine Partners and Hancock Mutual Life Insurance Company. 
  
 “Holding Company Subordination Agreement” means Subordination Agreement dated as of September 11, 2003, by and
Among the Bank, JAC Holdings, Caravelle, Hancock, Transportation Investment Partners, L.L.C., James Cirar and Camillo M. Santomero, III. 
  
 “Holding Management Agreement” means that certain Management Services Agreement between JAC Holding, JAC Intermedco, the Co-Borrowers, and JAC
Patent dated as of June 3, 1999. 
  
 “Indemnitees” has
the meaning specified in Section 8.5. 
  
 “Intellectual Property Rights” means all actual or prospective rights arising in connection with any intellectual property or other proprietary rights, including all rights 

  

 11 

 
arising in connection with copyrights, patents, service marks, trade dress, trade secrets, trademarks, trade names or mask works. 
  
 “Interest Coverage Ratio” of the Consolidated Group means, with
respect to any Covenant Computation Date, the ratio of the Consolidated Group’s (a) EBITDA plus expenses and/or settlement costs, without duplication, of up to $5,000,000 in the aggregate related to the Pending Employment Litigation and
minus Capital Expenditures (net of Capital Expenditures made using the Consolidated Group’s cash not financed by the Bank or another lender) minus Cash Taxes, to (b) Interest Expense. 
  
 “Interest Expense” of the Consolidated Group means, with respect to
the applicable Covenant Computation Period, the total gross interest expense on all Debt of the Consolidated Group during such period and shall in any event include, without limitation and without duplication, (a) cash interest expense less cash
interest income on all Debt, (b) the amortization of Debt discounts, (c) the amortization of all fees payable in connection with the incurrence of Debt to the extent included in interest expense, (d) that portion of any Capital Lease Payment which
would constitute imputed interest as determined in accordance with GAAP and (e) all fees and charges with respect to letters of credit issued for the account of the Consolidated Group. 
  
 ‘Interest Period” means, relative to any Eurodollar Funding, the period beginning on (and including) the date on
which such Eurodollar Funding is made, or continued as, or converted into, a Eurodollar Funding pursuant to Sections 2.2, 2.3 or 2.4 and shall end on (but exclude) the day which numerically corresponds to such date one (1), two
(2), or three (3) months thereafter (or, if such month has no numerically corresponding day, on the last Business Day of such month), as the Co-Borrowers may select in their relevant notice pursuant to Sections 2.2, 2.3, or 2.4;
provided, however, that: 
  
 (a) no
more than five (5) different Interest Periods may be outstanding at any one time with respect to the Revolving Facility; 
  
 (b) if an Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next following
Business Day (unless such next following Business Day is the first Business Day of a month, in which case such Interest Period shall end on the next preceding Business Day); 
  
 (c) no Interest Period applicable to a Funding for the Revolving Facility may end later than the applicable
Maturity Date for the Revolving Facility; and 
  
 “Inventory” means all inventory of the Co-Borrowers, as that term is defined in the UCC, whether now owned or hereafter acquired, whether consisting of finished or unfinished goods, processed or unprocessed products, inputs, parts
or components, supplies or materials, whether acquired, held or furnished for sale, for lease or under service contracts or for manufacture or processing, and wherever located. 
  

 12 

 “JAC Holdings” means JAC Holdings International, Inc., a Delaware corporation. 
  
 “JAC Intermedco” means JAC Intermedco, Inc., a Delaware
corporation. 
  
 “JAC Patent” means JAC Patent Company,
a Delaware corporation. 
  
 “Letter of Credit” has the
meaning specified in Section 2.6. 
  
 “Letter of
Credit Amount” means the sum of (a) the aggregate remaining available amount of all issued and outstanding Letters of Credit, and (b) amounts drawn under Letters of Credit for which the Letter of Credit Bank has not been reimbursed with
proceeds of a Borrowing or otherwise. 
  
 “Letter of Credit
Bank” means the Bank (or, as applicable, one of its affiliates), in its separate capacity as issuer of Letters of Credit for the account of the Co-Borrowers pursuant to Section 2.6. 
  
 “Letter of Credit Fee” has the meaning specified in Section
2.6(b). 
  
 “Letter of Credit Sublimit” means twelve
million dollars ($ 12,000,000). 
  
 “Level I Status”
means a period of time during which the Leverage Ratio of the Consolidated Group is greater than 2.50 to 1,00. 
  
 “Level II Status” means a period of time during which the Leverage Ratio of the Consolidated Group is greater than 2.00 to 1.00, but less than
or equal to 2.50 to 1.00. 
  
 “Level III Status” means a
period of time during which the Leverage Ratio of the Consolidated Group is greater than 1.50 to 1.00, but less than or equal to 2.00 to 1.00. 
  
 “Level IV Status” means a period of time during which the Leverage Ratio of the Consolidated Group is greater than 1.00 to 1.00, but less than
or equal to 1.50 to 1.00. 
  
 “Level V Status” means a
period of time during which the Leverage Ratio of the Consolidated Group is equal to or less than 1.00 to 1.00. 
  
 “Leverage Ratio” of the Consolidated Group means, with respect to any Covenant Computation Date, the ratio of (a) the Consolidated Group’s
Funded Debt, to (b) the Consolidated Group’s EBITDA plus expenses and/or settlement costs, without duplication, of up to $5,000,000 in the aggregate related to the Pending Employment Litigation; provided, however, that for
purposes of determining Status, no expenses and/or settlement costs related to the Pending Employment Litigation shall be added to the Consolidated Group’s EBITDA. 
  
 “LIBOR Index Rate” means relative to any Interest Period, the rate per annum determined by the Bank as of
approximately 11:00 a.m. London time on the date two (2) 

  

 13 

 
Business Days before the commencement of such Interest Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in
dollars offered on the London interbank dollar market for a period corresponding to the term of such Interest Period and in an amount comparable to the aggregate amount of the relevant Funding (as set forth by the Bloomberg Information Service or
any successor thereto or any other service selected by the Bank that has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rates). 
  
 “Licensed Intellectual Property” has the meaning specified in
Section 4.16(b). 
  
 “Loan Documents” means this
Agreement, the Note, the Guaranties, each and every application or other agreement pursuant to which a Letter of Credit is issued and the Security Documents. 
  
 “Local Time” means the local time of day in Chicago, Illinois. 
  
 “Management Fee Payment” means any management fees or other payments payable by the Co-Borrowers or JAC Holdings
pursuant to the terms of (i) the Santomero Management Agreement, (ii) the Cirar Consulting Agreement, (iii) the Hancock Management Agreements, (iv) the Caravelle Deferred Financing Fee Agreement, or (v) the Holding Management Agreement. 

 
 “Margin” means, with respect to computation of the applicable
interest rate on Fundings under the Revolving Facility, or the Letter of Credit Fee, as the case may be, the applicable increment set forth and described in the table below, established as of the last day of each fiscal quarter according to the then
applicable Status; provided, however, that any adjustment in the applicable Margin shall not become effective until the first calendar day of the first month immediately following receipt by the Bank of financial statements relating to the last day
of such fiscal quarter pursuant to Section 5.1 hereof. If financial statements of the Consolidated Group necessary to establish the appropriate Margin hereunder are not received by the Bank on or prior to the date required pursuant to
Section 5.1 hereof, the applicable Margin shall be determined as if Level I Status were in effect and such Level I Status shall remain in effect until such time as the required financial statements are received: 
  

										
	 STATUS

	  	EURO DOLLAR
RATE MARGIN

	 	 	FLOATING RATE
MARGIN

	 	 	LETTER OF
CREDIT
FEE
MARGIN

	 
	 Level I Status
	  	4.00	%	 	1.25	%	 	4.00	%
	 Level II Status
	  	3.50	%	 	1.00	%	 	3.50	%
	 Level III Status
	  	3.25	%	 	0.75	%	 	3.25	%
	 Level IV Status
	  	2.75	%	 	0.50	%	 	2.75	%
	 Level V Status
	  	2.50	%	 	0.25	%	 	2.50	%

  

 14 

 provided, however, that for the period commencing on the Closing Date and continuing to the date the Bank
receives the Consolidated Group’s financial statements and related officer’s certificates specified in Section 5.1(b) demonstrating the financial performance of the Consolidated Group for the fiscal month ending September 30, 2003,
the applicable Margins shall be determined as if Level III Status were in effect, regardless of the Leverage Ratio of the Consolidated Group for such period; provided, further, with respect to computation of the applicable interest
rate on Fundings under the Revolving Facility or the Letter of Credit Fee, as the case may be, during any period in which the Consolidated Group maintains Cash Collateral pursuant to the terms of the Securities Account Pledge Agreement, the Margin
for all Prime Rate Advances and Letter of Credit Advances up to an amount equal to the Cash Collateral shall be the applicable Margin as determined above, minus (i) 0.25% with respect to the Prime Rate Margin, or (ii) 0.75% with respect to
the Letter of Credit Fee Margin. 
  
 “Master Letter of Credit
Agreement” shall have the meaning specified in Section 2.6(a). 
  
 “Material Adverse Effect” means, with respect to any event or circumstance, a material adverse effect on: 
  
 (a) the business, financial condition, operations or prospects of the Credit Parties, taken as a whole; 
  
 (b) the ability of a Credit Party to perform its obligations
under any Loan Document to which it is a party; 
  
 (c) the validity, enforceability or collectibility of any Loan Document; or 
  
 (d) the status, existence, perfection, priority or enforceability of any lien or security interest granted pursuant to any Security
Document. 
  
 “Maturity Date” means September 11, 2006.

  

 15 

 “Mortgage” or “Mortgages” means each mortgage or deed of trust, as the case may be,
from the appropriate Credit Party owning real property described in Schedule 4.15, pursuant to which such Credit Party grants the Bank, a mortgage lien on such real property and related improvements to secure payment of the Obligations, or
all such Mortgages collectively, as the context may require, and all amendments and supplements thereto and modifications thereof. 
  
 “Multiemployer Plan” means a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) to which any Credit Party or any ERISA Affiliate
contributes or is obligated to contribute. 
  
 “Note”
means the Revolving Note. 
  
 “Obligations” means each
and every Debt, liability and other obligation of every type and description arising under or in connection with any of the Loan Documents which any Credit Party may now or at any time hereafter owe to the Bank, whether such debt, liability or
obligation now exists or is hereafter created or incurred, whether it is direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or sole, joint, several or joint and several, and including
specifically, but not limited to, the Letter of Credit Amount, and all indebtedness, liabilities and obligations of the Co-Borrowers arising under or evidenced by the Note. 
  
 “Off-the-shelf Software” has the meaning specified in Section 4.16(b). 
  
 “Outstanding Obligations” means, as of the date of determination,
the outstanding principal amount of all Obligations. 
  
 “Owned Intellectual Property” has the meaning specified in Section 4.16(a). 
  
 “Payee” has the meaning specified in Section 2.16. 
  
 “Payment Conditions” shall mean (a) no Default or Event of Default shall be in existence or shall occur as a
result of the proposed payment on the Holding Company Notes and (b) the following tests are met: (i) the Co-Borrowers are in compliance with the minimum Fixed Charge Coverage Ratio requirements set forth in Section 5.11 for the two Covenant
Computation Dates immediately preceding the date of such proposed payment of the Holding Company Notes; (ii) the Co-Borrowers are in compliance with the minimum EBITDA requirements set forth in Section 5.9 for the four quarters immediately preceding
the date of the proposed payment of the Holding Company Notes; and (iii) availability under the Credit Agreement shall equal or exceed $15,000,000 on the date of (and after giving effect to) the proposed payment of the Holding Company Notes. The
determination of compliance with the foregoing shall be made by the Bank in its good faith judgment based upon information furnished by the Co-Borrowers and in form and substance acceptable to the Bank and such other information as the Bank shall
request. 
  

 16 

 “Pending Employment Litigation” means (i) litigation or administrative proceedings related to
unfair labor claims of the United Steelworkers of America against the Co-Borrowers before the National Labor Relations Board related to expiration of the Co-Borrowers collective bargaining agreement in October 2001; (ii) the case captioned United
Steelworkers of America, Geraldine Deemer and Daryl Shetler v. Johnstown America Corporation, No. 02806, commenced in the United States District Court for the Western District of Pennsylvania, and any appeals arising from and related to such case,
and (iii) USWA, Reggie Britt, et. al v. Johnstown America Corp., Inc., No. 03-1298, commenced in the United States District Court for the Western District of Pennsylvania, and any appeals arising from and related to such case. 
  
 “Pension Plan” means a pension plan (as defined in Section 3(2) of
ERISA) maintained for employees of any Credit Party or any ERISA Affiliate and covered by Title IV of ERISA. 
  
 “Permitted Distribution” means any distribution or dividend necessary (i) to make a Holding Company Note Payment permitted in accordance with
the terms of the Holding Company Subordination Agreement or (ii) to make a Management Fee Payment permitted in accordance with the terms of the Holding Company Subordination Agreement. 
  
 “Permitted Liens” has the meaning specified in Section 6.1. 
  
 “Person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) maintained for employees of any Credit
Party or ERISA Affiliate. 
  
 “Prime Rate” means, for
any day, the rate of interest in effect for such day as publicly announced from time to time by the Bank as its “prime rate” (whether or not such rate is actually charged by the Bank), or if the Bank ceases to announce such a rate so
designated, any similar successor rate designated by the Bank in its reasonable discretion. Any change in the Prime Rate announced by the Bank shall take effect at the opening of business on the day specified in the public announcement of such
change. 
  
 “Reportable Event” means a reportable event
(as defined in Section 4043 of ERISA), other than an event for which the 30-day notice requirement under ERISA has been waived in regulations issued by the Pension Benefit Guaranty Corporation. 
  
 “Return” has the meaning specified in Section 2.17(b)(i).

  
 “Revolving Advance” means a loan of funds by the
Bank to the Co-Borrowers under the Revolving Facility, including both Floating Rate Advances and Eurodollar Advances made thereunder. 
  

 17 

 “Revolving Commitment” shall mean twenty million dollars ($20,000,000), being the maximum
amount of the Revolving Commitment of the Bank, unless such amount is adjusted pursuant to Section 2.14(a), in which event it means the amount to which said amount is adjusted pursuant thereto, or as the context may require, the obligation of
the Bank to make Revolving Advances and provide for issuance of Letters of Credit, as contemplated in Sections 2.1 and 2.6. 
  
 “Revolving Commitment Termination Date” means the earlier of (a) the Maturity Date with respect to the Revolving Facility or (b) the date on
which the Revolving Commitment is terminated pursuant to Section 7.2 or reduced to zero pursuant to Section 2.14(a). 
  
 “Revolving Facility” means the revolving credit facility being made available to the Co-Borrowers by the Bank pursuant to Section 2.1.

  
 “Revolving Facility Outstanding Amount” means, as of
the date of determination, the sum of (a) the aggregate principal amount of all outstanding Revolving Advances, and (b) the Letter of Credit Amount. 
  
 “Revolving Note” means a promissory note of the Co-Borrowers payable to a Bank in the amount of the Bank’s Revolving Commitment, in
substantially the. form of Exhibit B (as such promissory note may be amended, extended or otherwise modified from time to time), evidencing the aggregate indebtedness of the Co-Borrowers to the Bank, and also means each promissory note
accepted by the Bank from time to time in substitution therefor or in renewal thereof. 
  
 “Santomero Investor” means any of (i) Camillo M. Santomero III, (ii) any spouse or lineal descendant of Camillo M. Santomero, and (iii) any trust, family limited partnership or limited liability company, the
sole members, partners or beneficiaries thereof are persons described in clauses (i) and (ii). 
  
 “Santomero Management Agreement” means that Santomero Management Agreement by and among Camillo M. Santomero, III, JAC Holdings, JAC Intermedco, JAC Patent, and the Co-Borrowers, dated as of June 3,1999.

  
 “Securities Account Pledge Agreement” means the
Securities Account Pledge Agreement of the Co-Borrowers’ in favor of the Bank, dated as of even date herewith. 
  
 “Security Agreement” or “Security Agreements” means the security agreement of a Credit Party for the benefit of the Bank pursuant to
which such Credit Party grants the Bank a security interest in substantially all the personal property of such Credit Party to secure payment of the Obligations, or all of them collectively, as the context may require, and all amendments and
supplements thereto and modifications thereof. 
  
 “Security
Documents” means each Security Agreement, Securities Account Pledge Agreement, Mortgage, Trademark and Patent Security Agreement and each and every 

  

 18 

 
additional agreement entered into by any Credit Party for the benefit of the Bank to secure payment of the Obligations or otherwise relating to any
Collateral. 
  
 “Status” means the financial condition
of the Consolidated Group determined in accordance with the definitions of “Level I Status,” “Level II Status,” “Level III Status,” “Level IV Status,” and “Level V Status.” 
  
 “Subordinated Debt” means all indebtedness, if any (including
principal, interest and fees thereon), subordinated to payment of the Obligations pursuant to a Subordination Agreement. 
  
 “Subordination Agreement” or “Subordination Agreements” means any agreement (in form and substance satisfactory to the Bank) executed
and delivered by a holder of Subordinated Debt in favor of the Bank pursuant to which such holder subordinates payment of the Subordinated Debt held by it to payment of the Obligations, or all of them collectively, as the context may require, and
all amendments and supplements thereto and modifications thereof. 
  
 “Subsidiary” of a Person means any corporation, partnership or limited liability company of which more than fifty percent (50%) of the outstanding equity or membership interests or shares of capital stock having general voting
power under ordinary circumstances to elect a majority of the board of directors (or other governing body) of such entity, (irrespective of whether or not at the time stock or membership interests of any other class or classes shall have or might
have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned by such Person, by such Person and one or more Subsidiaries of such Person, or by one or more other Subsidiaries of such Person. 

 
 “Taxes” has the meaning specified in Section 2.16.

  
 “Trademark and Patent Security Agreement” or
“Trademark and Patent Security Agreements” means a separate security agreement of a Credit Party for the benefit of the Bank pursuant to which such Credit Party grants the Bank a security interest in all trademarks now or hereafter held by
such Credit Party to secure payment of the Obligations, or all of them collectively, as the context may require, and all amendments and supplements thereto and modifications thereof. 
  
 “UCC” means the Uniform Commercial Code as in effect from time to time in the state designated in Section
8.7(a) as the state whose laws shall govern this Agreement, or in any other state whose laws are held to govern this Agreement or any portion hereof. 
  

 19 

  
 ARTICLE II 
  
 CREDIT FACILITY 
  
 Section 2.1 Commitment as to Revolving Facility. The Bank hereby
agrees, on the terms and subject to the conditions herein set forth, including specifically satisfaction of all conditions set forth in Section 3.2 hereof, to make Revolving Advances to the Co-Borrowers from time to time during the period
from the date hereof to and including the Revolving Commitment Termination Date, in an aggregate amount at any time outstanding not to exceed the Revolving Commitment; provided, however, that the Bank shall not be required to fund any
such Borrowing if, after giving effect to such Borrowing, the Revolving Facility Outstanding Amount would exceed the Borrowing Base. Within the above limits, the Co-Borrowers may obtain Revolving Advances, prepay Revolving Advances in accordance
with the terms hereof and reborrow Revolving Advances in accordance with the applicable terms and conditions of this Article II. 
  
 Section 2.2 Procedures for Borrowing Under the Revolving Facility. A request for a Revolving Advance shall be made or shall be deemed to be made,
each in the following manner: the Borrower requesting such Revolving Advance shall give the Bank same day notice, no later than 1:00 P.M., Local Time, for such day, of its request for a Revolving Advance as a Floating Rate Advance and at least three
(3) Business Days prior notice of its request for a Revolving Advance as a Eurodollar Advance, in which notice such Borrower shall specify the amount of the proposed borrowing and the proposed borrowing date; provided, however, that no such request
may be made at a time when there exists a Default or Event of Default. In the event that a Borrower maintains a controlled disbursement account at the Bank, each check presented for payment against such controlled disbursement account and any other
charge or request for payment against such controlled disbursement account shall constitute a request for a Revolving Advance as a Floating Rate Advance. As an accommodation to Borrowers, the Bank may permit telephone requests for Revolving Advances
and electronic transmittal of instructions, authorizations, agreements or reports to the Bank by the Co-Borrower specifically directs the Bank in writing not to accept or act upon telephonic or electronic communications from such Co-Borrower, the
Bank shall have no liability to the Co-Borrowers for any loss or damage suffered by a Co-Borrower as a result of the Bank’s honoring of any requests, execution of any instructions, authorizations or agreements or reliance on any reports
communicated to it telephonically or electronically and purporting to have been sent to the Bank by a Co-Borrower and the Bank shall have no duty to verify the origin of any such communication or the authority of the Person sending it. 

 
 Each Borrower hereby irrevocably authorizes the Bank to disburse the
proceeds of each Revolving Advance requested by such Co-Borrower, or deemed to be requested by such Borrower, as follows: Subject to satisfaction of the conditions precedent set forth in Article III, the proceeds of each Revolving Advance requested
under the Section 2.2 shall be disbursed by the Bank in lawful money of the United States of America in immediately available funds, in the case of the initial borrowing, in accordance with the terms of the written disbursement letter from
such Co-Borrower, and in the case of each 

  

 20 

 
subsequent borrowing, by wire transfer or Automated Clearing House (ACH) transfer to such bank account as may be agreed upon by such Co-Borrower and the Bank
from time to time, or elsewhere if pursuant to a written direction from such Co-Borrower. 
  
 Section 2.3. Converting Floating Rate Fundings to Eurodollar Fundings; Procedures. So long as no Default or Event of Default shall exist, the Co-Borrowers may convert all or any part of any outstanding Floating
Rate Funding under the Revolving Facility into a Eurodollar Funding by giving notice to the Bank of such conversion not later than 11:00 a.m., Local Time, on a Business Day which is at least three (3) Business Days prior to the date of the requested
conversion. Each such notice shall be irrevocable, shall be effective upon receipt by the Bank, shall be in writing or by telephone or telecopy transmission, to be confirmed in writing by the Co-Borrowers if so requested by the Bank (in the form of
Exhibit D), shall specify the date and amount of such conversion, the total amount of the Funding to be so converted and the Interest Period therefor. Each conversion of a Funding shall be on a Business Day, and the aggregate amount of each
such conversion of a Floating Rate Funding to a Eurodollar Funding shall be in an amount equal to $1,000,000 or a higher integral multiple of $1,000,000. 
  
 Section 2.4. Procedures at End of an Interest Period. Unless the Co-Borrowers request a new Eurodollar Funding in accordance with the procedures
set forth below, or prepays the principal of an outstanding Eurodollar Funding at the expiration of an Interest Period, the Bank shall automatically and without request of the Co-Borrowers convert each Eurodollar Funding to a Floating Rate Funding
on the last day of the relevant Interest Period. So long as no Default or Event of Default shall exist, the Co-Borrowers may cause all or any part of any outstanding Eurodollar Funding to continue to bear interest at a Eurodollar Rate after the end
of the then applicable Interest Period by notifying the Bank not later than 11:00 a.m., Local Time, on a Business Day which is at least three (3) Business Days prior to the first day of the new Interest Period. Each such notice shall be in writing
or by telephone or telecopy transmission, to be confirmed in writing by the Co-Borrowers if so requested by the Bank (in the form of Exhibit E), shall be irrevocable, effective when received by the Bank, and shall specify the first day of the
applicable Interest Period, the amount of the expiring Eurodollar Funding to be continued and the Interest Period therefor. Each new Interest Period shall begin on a Business Day and the amount of each Funding bearing a new Eurodollar Rate shall be
in an amount equal to $1,000,000 or a higher integral multiple of $1,000,000. 
  
 Section 2.5. Setting and Notice of Rates. The applicable Eurodollar Rate for each Interest Period shall be determined by the Bank on the second Business Day prior to the beginning of such Interest Period,
whereupon notice thereof (which may be by telephone) shall be given by the Bank to the Co-Borrowers. Each such determination of the applicable Eurodollar Rate shall be conclusive and binding upon the parties hereto, in the absence of demonstrable
error. The Bank, upon written request of the Co-Borrowers, shall deliver to the Co-Borrowers a statement showing the computations used by the Bank in determining the applicable Eurodollar Rate hereunder. 
  

 21 

 Section 2.6. Commitment to Issue Letters of Credit. The Letter of Credit Bank agrees, from the
date hereof to and including the Revolving Commitment Termination Date, to issue one or more letters of credit for the account of the Co-Borrowers, on the terms and subject to the conditions set forth below: 
  
 (a) Each letter of credit issued pursuant to this Section
2.6, shall be referred to herein as a “Letter of Credit.” No Letter of Credit shall be issued by the Letter of Credit Bank if, after giving effect to the issuance of such Letter of Credit (i) the Letter of Credit Amount would exceed
the Letter of Credit Sublimit or (ii) the Revolving Facility Outstanding Amount would exceed the Borrowing Base. The expiration date of any Letter of Credit shall not be later than the earlier of (A) one year after the date of issuance of such
Letter of Credit, or (B) twenty-five (25) days prior to the Revolving Commitment Termination Date. The Co-Borrowers may renew any Letter of Credit with a one year tenor for additional one year periods upon five (5) days prior written notice to the
Letter of Credit Bank, so long as the expiry date thereof complies with the preceding sentence upon such renewal. Each Letter of Credit will be issued under and pursuant to the terms and conditions of a Master Letter of Credit Agreement by and
between the Co-Borrowers and the Letter of Credit Bank (the “Master Letter of Credit Agreement”) governing all Letters of Credit to be issued hereunder, and upon no less than five (5) Business Days’ prior written application from the
Co-Borrowers to the Letter of Credit Bank as contemplated therein. The application requesting issuance of a Letter of Credit shall be on the Letter of Credit Bank’s standard form or such other form as may be agreed to by the Letter of Credit
Bank and the Co-Borrowers. In the event that any of the terms of such application are inconsistent with the terms and provisions of this Agreement, the terms and provisions of this Agreement shall govern. The Letter of Credit Bank shall not be
obligated to issue a Letter of Credit unless on the date of issuance all of the conditions precedent specified in Section 3.2 shall have been satisfied as fully as if the issuance of such Letter of Credit were a Revolving Advance. 

 
 (b) The Co-Borrowers agree to pay to the Bank, a
commission with respect to each Letter of Credit (herein, the “Letter of Credit Fee”) computed as the product of (i) an annual rate equal to the applicable Margin for Letters of Credit in effect on the date payment of the Letter of Credit
Fee becomes due and payable hereunder, and (ii) the face amount of the applicable Letter of Credit outstanding from time to time. The Letter of Credit Fee shall be payable quarterly in arrears on the last day of each calendar quarter, or upon such
other terms as may be agreed upon by the Co-Borrowers and the Bank at the time of issuance of any such Letter of Credit; provided, however, that from and after the occurrence of an Event of Default and continuing thereafter until such
Event of Default shall be remedied to the written satisfaction of the Bank, the applicable Letter of Credit Fee payable hereunder with respect to each Letter of Credit shall be equal to the sum of the product of (i) the sum of (1) the Margin
otherwise in effect with respect to such Letter of Credit, and (ii) the face amount of the applicable Letter of Credit outstanding from time to time. If any Letter of Credit Fee so paid is greater than the amount that actually accrues (as a 

  

 22 

 
result of cancellation of the Letter of Credit prior to the end of its stated term), the Co-Borrowers shall be entitled to a credit for the amount of any
such Letter of Credit Fee not earned. 
  
 (c)
Upon issuance of a Letter of Credit hereunder, and without any further notice to the Bank, the Bank shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Letter of Credit Bank an undivided participating interest
in the Letter of Credit Bank’s risk and obligation under such Letter of Credit and in the obligation of the Letter of Credit Bank to honor drafts thereunder, and in the amount of any drawing thereunder, and in all rights of the Letter of Credit
Bank to obtain reimbursement from the Co-Borrowers in the amount of such drawing, and all other rights of the Letter of Credit Bank with respect thereto, in an amount equal to the product of (i) the maximum amount available to be drawn under such
Letter of Credit and the amount of any drawing thereunder, respectively and (ii) the Revolving Facility. Whenever a draft submitted under a Letter of Credit is paid by the Letter of Credit Bank, the Letter of Credit Bank shall so notify the Bank and
shall request immediate reimbursement from the Co-Borrowers for the amount of the draft. If sufficient funds are not immediately paid to the Bank by the Co-Borrowers, the Co-Borrowers shall be deemed to have requested a Borrowing under the Revolving
Facility pursuant to Section 2.2 and the Bank shall be notified of such request in accordance with Section 2.2 and shall fund such request for a Borrowing as Floating Rate Advances (in accordance with their respective Percentages) for
purposes of reimbursing the Letter of Credit Bank for the amount of such draft so paid by the Letter of Credit Bank (less any amounts realized by the Letter of Credit Bank pursuant to the second sentence of this Section 2.6(c)). If for any
reason or under any circumstance (including, without limitation, the occurrence of a Default or Event of Default or the failure to satisfy any of the conditions set forth in Section 3.2) the Bank does not make such Revolving Advances as
contemplated above and the Co-Borrowers do not otherwise reimburse the Letter of Credit Bank for the amount of the draft so paid by the Letter of Credit Bank, the Co-Borrowers shall nonetheless be obligated to reimburse the amount of the draft to
the Letter of Credit Bank, with interest upon such amount at the Default Rate from and after the date such draft is paid by the Letter of Credit Bank until the amount thereof is repaid to the Letter of Credit Bank in full. If the Letter of Credit
Bank shall not have obtained reimbursement for any drawing under a Letter of Credit (whether from the Co-Borrowers or as proceeds of a Borrowing), upon demand of the Bank, the Bank shall immediately advance the amount to the Letter of Credit Bank
and shall be entitled to interest on such participating interest at the Default Rate until reimbursed in full by the Co-Borrowers. 
  
 (d) The Bank and the Co-Borrowers agree that, in paying any drawing under a Letter of Credit, the Letter of Credit Bank shall not have any
responsibility to obtain any document (other than any sight draft and certificates expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or
delivering any such 

  

 23 

 
document. The Letter of Credit Bank shall not be liable to the Bank for: (i) any action taken or omitted in connection herewith at the request or with the
approval of the Bank; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document executed in connection with a Letter of Credit.

  
 (e) The Co-Borrowers hereby assume all risks
of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the Co-Borrowers’ pursuing such rights and remedies as they may
have against the beneficiary or transferee at law or under any other agreement. The Letter of Credit Bank shall not be liable or responsible for any of the matters described in clauses (i) through (vii) of subsection (f) below. In furtherance and
not in limitation of the foregoing: (i) the Letter of Credit 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; and (ii) the
Letter of Credit Bank shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or
in part, which may prove to be invalid or ineffective for any reason. 
  
 (f) The obligation of the Co-Borrowers under this Agreement to reimburse the Letter of Credit Bank for a drawing under a Letter of Credit shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including the following: 
  
 (i) any lack of validity or enforceability of this Agreement, the Master Letter of Credit Agreement or any letter of credit application;

  
 (ii) 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 Co-Borrowers in respect of any Letter of Credit or any other amendment or waiver of or any consent to departure from any letter of credit application; 
  
 (iii) the existence of any claim, set-off, defense or other
right that the Co-Borrowers may have at any time against any beneficiary or any transferee of any Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the Letter of Credit Bank or any other Person,
whether in connection with this Agreement, the transactions contemplated hereby or any unrelated transaction; 
  
 (iv) any draft, demand, certificate or other document presented under any 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; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit; 
  

 24 

 (v) any payment by the Letter of Credit Bank under any Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms of any Letter of Credit; or any payment made by the Letter of Credit Bank under any Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of any Letter of Credit, including any arising in connection with any insolvency
proceeding; 
  
 (vi) any exchange, release or
non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the obligations of the Co-Borrowers in respect of any Letter of Credit; or 
  
 (vii) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Co-Borrowers or a guarantor. 
  
 (g) Notwithstanding anything in this Section 2.6 to
the contrary, including particularly subsections (e) and (f) above, the Co-Borrowers may have a claim against the Letter of Credit Bank and the Letter of Credit Bank may be liable to the Co-Borrowers, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Co-Borrowers which the Co-Borrowers prove were caused by the Letter of Credit Bank’s willful misconduct or gross negligence or the willful failure to pay
under any Letter of Credit after the presentation to the Letter of Credit Bank by the beneficiary of a sight draft and certificate strictly complying with the terms and conditions of a Letter of Credit. 
  
 (h) The Co-Borrowers shall indemnify, protect, defend and
hold harmless each Indemnitee from and against all losses, liabilities, claims, damages, judgments, costs and expenses, including but not limited to all reasonable attorneys’ fees and legal expenses, incurred by the Indemnitees or imposed upon
the Indemnitees at any time by reason of the issuance, demand for honor or honor of any Letter of Credit or the enforcement, protection or collection of the Letter of Credit Bank’s claims against the Co-Borrowers under this Section 2.6
or by reason of any act or omission of any Indemnitee in connection with any of the foregoing; provided, however, that such indemnification shall not extend to losses, liabilities, claims, damages, judgments, costs and expenses to the
extent arising from any act or omission of an Indemnitee which constitutes gross negligence or willful misconduct. 
  
 (i) The Co-Borrowers hereby agree to pay to the Letter of Credit Bank, on demand, all administrative fees charged by the Letter of Credit
Bank in the ordinary course of business in connection with the issuance of letters of credit, honoring of drafts under letters of credit, amendments thereto, transfers thereof and all other 

  

 25 

 
activity with respect to letters of credit, at the then current rates established by the Letter of Credit Bank from time to time for such services rendered
on behalf of customers of the Letter of Credit Bank generally. 
  
 Section 2.7. Interest on Note. The Co-Borrowers hereby agree to pay interest on the unpaid principal amount of each Note for the period commencing on the date of this Agreement until the unpaid principal amount thereof is paid in
full, in accordance with the following: 
  
 (a)
Floating Rate Fundings. Subject to subsection (c) below, while any outstanding principal of a Note constitutes a Floating Rate Funding, the outstanding principal balance thereof shall bear interest at an annual rate at all times equal
to the Floating Rate applicable to such Floating Rate Funding. 
  
 (b) Eurodollar Fundings. Subject to subsection (c) below, while any outstanding principal of the Note constitutes a Eurodollar Funding, the outstanding principal balance thereof shall bear interest for
the applicable Interest Period at an annual rate equal to the Eurodollar Rate established with respect such Eurodollar Funding in accordance with Section 2.2, 2.3 or 2.4 hereof. 
  
 (c) Default Rate. From and after the occurrence of an
Event of Default and continuing thereafter until such Event of Default shall be remedied to the written satisfaction of the Bank, the outstanding principal balance of the Note shall bear interest, until paid in full, at a rate equal to the sum of
(i) the interest rate otherwise in effect with respect to such outstanding principal and (ii) two percent (2%). In addition, any unreimbursed amounts payable under Section 2.6 and all fees, indemnification obligations and other Obligations
not paid when due hereunder shall bear interest, until paid in full, at an annual rate equal to the sum of (i) the Floating Rate (with the then applicable Revolving Facility Margin) and (ii) two percent (2%) (each rate described in this subsection
(c) herein a “Default Rate”). 
  
 (d)
Savings Clause. Notwithstanding anything in this Section 2.7 to the contrary, at no time shall the Co-Borrowers be obligated or required to pay interest on any Obligation at a rate which could subject the Bank to either civil or
criminal liability as a result of being in excess of the maximum interest rate which the Co-Borrowers are permitted by applicable law. If, under the terms of this Agreement or any other Loan Document, the Co-Borrowers are at any time required or
obligated to pay interest on any Obligation at a rate in excess of such maximum rate, the Floating Rate, Eurodollar Rate or Default Rate, as the case may be, shall be deemed to be immediately reduced to such maximum rate and all previous payments in
excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of any interest thereon due hereunder. All sums paid or agreed to be paid to the Bank for the use, forbearance or detention of any
Obligation, shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term of the Obligation to which such payment applies until 

  

 26 

 
payment in fall so that the rate or amount of interest on account of any such Obligation does not exceed the maximum lawful rate of interest from time to
time in effect and applicable to such Obligation for so long as the Obligation is outstanding. 
  
 Section 2.8. Obligation to Repay Advances; Representations. The Co-Borrowers shall be obligated to repay all Advances under this Article II notwithstanding the failure of the Bank to receive any written
request therefor or written confirmation thereof and notwithstanding the fact that the person requesting the same was not in fact authorized to do so. Any request for a Borrowing under the Revolving Facility, whether written, telephonic, telecopy or
otherwise, shall be deemed to be a representation by the Co-Borrowers that (a) the amount of the requested Borrowing, when added to the Revolving Facility Outstanding Amount, as applicable, would not cause the Revolving Facility Outstanding Amount
to exceed the Borrowing Base, and (b) the statements set forth in Section 3.2 are correct as of the time of the request. 
  
 Section 2.9. Note; Amortization. All Revolving Advances made by the Bank hereunder shall be evidenced by and repayable in accordance with the Note
issued by the Co-Borrowers to the Bank. The aggregate unpaid principal amount of the Note shall bear interest at the applicable Floating Rate unless a Eurodollar Rate shall become applicable thereto pursuant to Sections 2.2, 2.3 or
2.4, and shall be payable on the Maturity Date with respect thereto or earlier in accordance with Section 7.2. 
  
 Section 2.10. Interest Due Dates. Accrued interest on each Eurodollar Funding shall be payable on the last day of the Interest Period relating to
such Eurodollar Funding; provided, however, that if any Interest Period is longer than three (3) months, interest shall be payable in arrears (3) three months, or a whole multiple thereof, after the first day of such Interest Period
and on the last day of the Interest Period. Accrued interest on each Floating Rate Funding shall be payable monthly in arrears on the last day of each month and at maturity. 
  
 Section 2.11. Computation of Interest and Fees. Interest accruing on the Note and on the unreimbursed portion of any
Letter of Credit Amount, all Letter of Credit Fees, Commitment Fees and other fees described in Section 2.12 shall be computed on the basis of the actual number of days elapsed in a year of three hundred sixty (360) days. 
  
 Section 2.12. Fees. The Co-Borrowers hereby agree to pay the following
fees to the Bank in accordance with the following: 
  
 (a) Origination and Structuring Fees. The Co-Borrowers agree to pay (i) to the Bank, for the sole and exclusive account of the Bank, the one-time arrangement and origination fees payable to the Bank of two hundred thousand dollars
($200,000). 
  
 (b) Commitment Fee. The
Co-Borrowers agree to pay to the Bank, an ongoing commitment fee (the “Commitment Fee”) computed as the product of an annual rate equal to (i) if the Bank has made Advances (A) in an amount equal to or less than 50% of the Revolving
Commitment, 0,50% or (B) in amount greater than 

  

 27 

 
50% of the Revolving Commitment, 0.35%, and (ii) the daily average amount by which (A) the sum of the Revolving Commitment exceeds (B) the Revolving Facility
Outstanding Amount from the Closing Date to and including the Revolving Commitment Termination Date, payable quarterly in arrears on the last Business Day of each calendar quarter. Any such Commitment Fee remaining unpaid on the Revolving Commitment
Termination Date shall be due and payable on such date. 
  
 (c) Audit Fees. The Co-Borrowers agree to pay to the Bank, on written demand, reasonable fees charged by the Bank in connection with any audits or inspections by the Bank (or by the employees, agents,
consultants or auditors of the Bank) of any Collateral or the operations or businesses of any Credit Party, together with actual out-of-pocket costs and expenses incurred in conducting any such audit or inspection; provided, however,
that until the occurrence of an Event of Default the Co-Borrowers shall not be obligated to reimburse the Bank for more than two (2) such audits or inspections conducted by the Bank during any fiscal year of the Co-Borrowers. 
  
 Section 2.13. Use of Proceeds. Proceeds of the initial Borrowing under
the Revolving Facility shall be used by the Co-Borrowers for working capital purposes and general corporate purposes. 
  
 Section 2.14. Voluntary Reduction or Termination of the Revolving Commitment; Prepayments. 
  
 (a) Reduction or Termination of Revolving Commitment.
The Co-Borrowers, from time to time upon not less than thirty (30) Business Days’ prior written notice to the Bank, may permanently reduce the Revolving Commitment; provided, however, that no such reduction shall reduce the
Revolving Commitment to an amount less than the Revolving Facility Outstanding Amount. Any such voluntary reduction shall be in an aggregate amount equal to $2,000,000 or a higher integral multiple of $1,000,000. The Co-Borrowers at any time prior
to the Revolving Commitment Termination Date may terminate the Revolving Commitment by (i) providing to the Bank not less than thirty (30) Business Days’ prior written notice of their intention to so terminate the Revolving Commitment and (ii)
making payment in full of the Note and all other monetary Obligations and terminating, or making a cash deposit with respect to, all outstanding Letters of Credit. 
  
 (b) Prepayments. If the Revolving Facility Outstanding Amount shall at any time exceed the Borrowing
Base, the Co-Borrowers shall immediately prepay the Revolving Advances in an amount equal to such excess, without notice or demand by the Bank. The Co-Borrowers from time to time may voluntarily prepay the Note in whole or in part. In the event of
either mandatory prepayment or voluntary prepayment hereunder (i) any prepayment of the Revolving Facility shall be applied against outstanding Advances of the Bank, (ii) each prepayment of the Note shall be made to the Bank not later than 2:00 p.m.
Local Time, on a Business Day, and funds 

  

 28 

 
received after that hour shall be deemed to have been received by the Bank on the next following Business Day, (iii) each partial prepayment of Fundings
which, at the time of such prepayment, bear interest at a Eurodollar Rate shall be accompanied by accrued interest on such partial prepayment through the date of prepayment and additional compensation calculated in accordance with Section
2.18, (iv) each partial prepayment of Fundings with respect to the Revolving Facility which, at the time of such prepayment, bear interest at a Eurodollar Rate, shall be in an aggregate amount equal to the applicable minimum Funding amount
specified in Section 2.4 for the Revolving Facility and, after application of any such prepayment, shall not result in a Eurodollar Funding remaining outstanding in an amount less than such minimum Funding amount, and (v) each partial
prepayment of Fundings with respect to the Revolving Facility which, at the time of such prepayment, bear interest at a Floating Rate, shall be in an aggregate amount equal to $2,000,000 or a higher integral multiple of $1,000,000, unless (in either
case) the aggregate outstanding balance of the Note under the Revolving Facility being prepaid is less than the minimum Funding amount, in which event any such prepayment may be in such lesser amount. 
  
 Section 2.15. Payments. 
  
 (a) Making of Payments. All payments of principal of
and interest due with respect to the Revolving Facility shall be made to the Bank. All payments of fees pursuant to Section 2.12 shall be made to the Bank for the account of the Bank, as specified in Section 2.12. All payments on
account of the Revolving Facility shall be made to the Bank at its office in Chicago, Illinois not later than 2:00 p.m. Local Time, on the date due, in immediately available funds, and funds received after that hour shall be deemed to have been
received on the next following Business Day. The Co-Borrowers hereby authorize the Bank to charge the Co-Borrowers’ demand deposit account maintained with the Bank for the amount of any Obligation on its due date, but the Bank’s failure to
so charge any such account shall in no way affect the obligation of the Co-Borrowers to make any such payment. All payments under Section 2.16, 2.17 or 2.18 shall be made by the Co-Borrowers directly to the Bank entitled
thereto. 
  
 (b) Setoff. The Co-Borrowers
agree that the Bank shall have all rights of setoff and bankers’ lien provided by applicable law, and in addition thereto, the Co-Borrowers agree that if at any time any Obligation is due and owing by the Co-Borrowers under this Agreement to
the Bank at a time when an Event of Default has occurred and is continuing hereunder, the Bank may apply any and all balances, credits, and deposits, accounts or moneys of the Co-Borrowers then or thereafter in the possession of the Bank (excluding,
however, any trust or escrow accounts held by the Co-Borrowers for the benefit of any third party) to the payment thereof. 
  
 (c) Due Date Extension. Subject to subsection (b) of the definition of “Interest Period” with respect to
Eurodollar Fundings, if any payment of principal of or interest on any Funding or any fees payable hereunder falls due on a day which is 

  

 29 

 
not a Business Day, then such due date shall be extended to the next following Business Day, and (in the case of principal) additional interest shall accrue
and be payable for the period of such extension. 
  
 (d) Application of Payments. Except as otherwise provided herein, so long as no Default or Event of Default has occurred and is continuing hereunder, each payment received from the Co-Borrowers shall be applied to such Obligation as
the Co-Borrowers shall specify by notice to be received by the Bank on or before the date of such payment, or in the absence of such notice, as the Bank shall determine in its discretion. 
  
 Section 2.16. Taxes. All payments made by the Co-Borrowers to the Bank (herein any “Payee”) under or in
connection with this Agreement or the Note shall be made without any setoff or other counterclaim, and shall be free and clear of and without deduction for or on account of any present or future taxes now or hereafter imposed by any governmental or
other authority, except to the extent that any such deduction or withholding is compelled by law. As used herein, the term “Taxes” shall include all income, excise and other taxes of whatever nature (other than taxes generally assessed on
the overall net income of a Payee by the government or other authority of the country, state or political subdivision in which such Payee is incorporated or in which the office through which such Payee is acting is located) as well as all levies,
imposts, duties, charges, or fees of whatever nature. “Taxes” shall not include, however, any foreign withholding taxes or similar deductions imposed solely as a result of the Bank’s election to fund an Advance through a foreign
office of the Bank. If any Co-Borrower is notified that it is compelled by law to make any deductions or withholdings on account of any Taxes (including any foreign withholding) it will: 
  
 (a) pay to the relevant authorities the full amount required to be so withheld or deducted; 
  
 (b) pay such additional amounts (including, without
limitation, any penalties, interest or expenses) as may be necessary in order that the net amount received by the Payee after such deductions or withholdings (including any required deduction or withholding on such additional amounts) shall equal
the amount the Payee would have received had no such deductions or withholdings been made; and 
  
 (c) promptly forward to the Bank (for delivery to the appropriate Payee) an official receipt or other documentation satisfactory to the
Bank evidencing such payment to such authorities. 
  
 The amount that any
Co-Borrower shall be required to pay to any Payee pursuant to the foregoing clause (b) shall be reduced, to the extent permitted by applicable law, by the amount of any offsetting tax benefit which such Payee receives as the result of the
Co-Borrowers’ payment to the relevant authorities as reasonably determined by such Payee; provided, however, that if such Payee shall subsequently determine that it has lost the benefit of all or a portion of such tax benefit, the
Co-Borrower shall promptly remit to such Payee 

  

 30 

 
the amount certified by such Payee to be the amount necessary to restore such Payee to the position it would have been in if no payment had been made
pursuant to this sentence. If any Taxes otherwise payable by any of the Co-Borrowers pursuant to the foregoing are directly asserted against a Payee, such Payee may pay such taxes, and that Co-Borrowers promptly shall reimburse such Payee to the
full extent otherwise required under this Section 2.16. The obligations of the Co-Borrowers under this Section 2.16 shall survive any termination of this Agreement. 
  
 Section 2.17. Increased Costs; Capital Adequacy; Funding Exceptions. 
  
 (a) Increased Costs on Eurodollar Advances. If
Regulation D of the Board of Governors of the Federal Reserve System or after the date of this Agreement the adoption of any applicable law, rule or regulation, or any change in any existing law, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by a Bank with any request or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency, shall: 
  
 (i)
subject the Bank to or cause the withdrawal or termination of any exemption previously granted to the Bank with respect to, any tax, duty or other charge with respect to its Eurodollar Fundings or its obligation to make Eurodollar Fundings, or shall
change the basis of taxation of payments to the Bank of the principal of or interest under this Agreement in respect of its Eurodollar Fundings or its obligation to make Eurodollar Fundings (except for changes in the rate of tax on the overall net
income of the Bank imposed by the jurisdictions in which the Bank’s principal executive office is located); or 
  
 (ii) impose, modify or deem applicable any reserve (including, without limitation, any reserve imposed by the Board of Governors of the
Federal Reserve System, but excluding any reserve included in the determination of interest rates pursuant to Section 2.5), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by,
the Bank; or 
  
 (iii) impose on the Bank any
other condition affecting its making, maintaining or funding of its Eurodollar Fundings or its obligation to make Eurodollar Fundings; 
  
 and the result of any of the foregoing is to increase the cost to the affected Bank of making or maintaining any Eurodollar Funding, or to reduce the
amount of any sum received or receivable by the Bank under this Agreement or under the Note with respect to a Eurodollar Funding, then the Bank will notify the Co-Borrowers of such increased cost and within fifteen (15) days after demand by the Bank
(which demand shall be accompanied by a statement setting forth the basis of such demand) the Co-Borrowers shall pay to the Bank such additional amount or amounts as will 

  

 31 

 
compensate the Bank for such increased cost or such reduction; provided, however, that no such increased cost or such reduction shall be
payable by the Co-Borrowers for any period longer than ninety (90) days prior to the date on which notice thereof is delivered to the Co-Borrowers. The Bank will promptly notify the Co-Borrowers of any event of which it has knowledge, occurring
after the date hereof, which will entitle the Bank to compensation pursuant to this Section 2.17. If the Co-Borrowers receive notice from the Bank of any event which will entitle such Bank to compensation pursuant to this Section 2.17,
the Co-Borrowers may prepay any then outstanding Eurodollar Fundings or notify the Bank that any pending request for a Eurodollar Funding shall be deemed to be a request for a Floating Rate Funding, in each case subject to the provisions of
Section 2.18. 
  
 (b) Capital
Adequacy. If the Bank determines at any time that the Bank’s Return has been reduced as a result of any Capital Adequacy Rule Change, the Bank may require the Co-Borrowers to pay to the Bank the amount necessary to restore the Bank’s
Return to what it would have been had there been no Capital Adequacy Rule Change. For purposes of this Section 2.17(b), the following definitions shall apply: 
  
 (i) “Return”, for any calendar quarter or shorter period, means the percentage determined by
dividing (A) the sum of interest and ongoing fees earned by the Bank under this Agreement during such period by (B) the average capital the Bank is required to maintain during such period as a result of its being a party to this Agreement, as
determined by the Bank based upon its total capital requirements and a reasonable attribution formula that takes account of the Capital Adequacy Rules then in effect. Return may be calculated for the Bank for each calendar quarter and for the
shorter period between the end of a calendar quarter and the date of termination in whole of this Agreement. 
  
 (ii) “Capital Adequacy Rule” means any generally applicable law, rule, regulation or guideline regarding capital adequacy that
applies to the Bank, or the interpretation thereof by any governmental or regulatory authority. Capital Adequacy Rules include rules requiring financial institutions to maintain total capital in amounts based upon percentages of outstanding loans,
binding loan commitments and letters of credit. 
  
 (iii) “Capital Adequacy Rule Change” means any generally applicable change in any Capital Adequacy Rule occurring after the date of this Agreement, but does not include any changes in applicable requirements that at the date
hereof are scheduled to take place under the existing Capital Adequacy Rules or any increases in the capital that the Bank is required to maintain to the extent that the increases are required due to a regulatory authority’s assessment of the
Bank’s financial condition. 
  

 32 

 The initial notice sent by the Bank shall be sent as promptly as practicable after the Bank learns that
its Return has been reduced, shall include a demand for payment of the amount necessary to restore the Bank’s Return for the quarter in which the notice is sent, and shall state in reasonable detail the cause for the reduction in the
Bank’s Return and the Bank’s calculation of the amount of such reduction; provided, however, that no such increased cost or such reduction shall be payable by the Co-Borrowers for any period longer than ninety (90) days prior
to the date on which notice thereof is delivered to the Co-Borrowers. Thereafter, the Bank may send a new notice during each calendar quarter setting forth the calculation of the reduced Return for that quarter and including a demand for payment of
the amount necessary to restore the Bank’s Return for that quarter. The Bank’s calculation in any such notice shall be conclusive and binding absent demonstrable error. 
  
 (c) Basis for Determining Interest Rate Inadequate or Unfair. If with respect to any Interest Period:

  
 (i) the Bank determines that deposits in U.S.
dollars (in the applicable amounts) are not being offered in the London interbank eurodollar market for such Interest Period; or 
  
 (ii) the Bank determines that by reason of circumstances affecting the London interbank eurodollar market adequate and reasonable means do
not exist for ascertaining the applicable Eurodollar Rate; or 
  
 (iii) the Bank determines that the Eurodollar Rate as determined by the Bank will not adequately and fairly reflect the cost to the Bank of maintaining or funding a Eurodollar Funding for such Interest Period, or that
the making or funding of Eurodollar Fundings has become impracticable as a result of an event occurring after the date of this Agreement which in the opinion of the Bank materially affects such Eurodollar Fundings; 
  
 then the Bank shall promptly notify the affected parties and (A) in
the event of any occurrence described in the foregoing clause (i) the Co-Borrowers shall enter into good faith negotiations with the Bank in order to determine an alternate method to determine the Eurodollar Rate for the Bank, and during the
pendancy of such negotiations with the Bank, the Bank shall be under no obligation to make any new Eurodollar Fundings, and (B) in the event of any occurrence described in the foregoing clauses (ii) or (iii), for so long as such circumstances shall
continue, the Bank shall not be under any obligation to make any new Eurodollar Fundings. 
  
 (d) Illegality. In the event that any change in (including the adoption of any new) applicable laws or regulations, or any change
in the interpretation of applicable laws or regulations by any governmental authority, central bank, comparable agency or any other regulatory body charged with the interpretation, implementation or administration thereof, or compliance by the Bank
with any request or directive (whether or not having the force of law) of any such authority, 

  

 33 

 
central bank, comparable agency or other regulatory body, should make it or, in the good faith judgment of the Bank, shall raise a substantial question as to
whether it is unlawful for the Bank to make, maintain or fund Eurodollar Fundings, then (i) the Bank shall promptly notify the Co-Borrowers, (ii) the obligation of the Bank to make, maintain or convert into Eurodollar Fundings shall, upon the
effectiveness of such event, be suspended for the duration of such unlawfulness, and (iii) for the duration of such unlawfulness, any notice by the Co-Borrowers pursuant to Sections 2.2, 2.3 or 2.4 requesting the Bank to make or
convert into Eurodollar Fundings shall be construed as a request to make or to continue making Floating Rate Fundings. 
  
 (e) Procedures to Mitigate. If circumstances arise in respect of the Bank which would or would upon the giving of notice result in
any liability of the Co-Borrowers under this Section 2.17 then, without in any way limiting, reducing or otherwise qualifying the Co-Borrowers’ obligations under this Section 2.17, the Bank shall promptly, upon becoming aware of
the same, notify Co-Borrowers thereof and shall, in consultation with the Co-Borrowers and to the extent that it can do so without, in its reasonable judgment, disadvantaging itself, take such reasonable steps as may be available to it to mitigate
the effects of such circumstances (including, without limitation, the designation of an alternate office or the transfer of its Eurodollar Fundings to another office). 
  
 Section 2.18. Funding Losses. The Co-Borrowers hereby agree that upon demand by the Bank (which demand shall be
accompanied by a statement setting forth the basis for the calculations of the amount being claimed) the Co-Borrowers will indemnify the Bank against any loss or expense which the Bank may have sustained or incurred (including, without limitation,
any net loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by the Bank to fund or maintain Eurodollar Fundings) or which the Bank may be deemed to have sustained or incurred, as reasonably
determined by the Bank, (i) as a consequence of any failure by the Co-Borrowers to make any payment when due of any amount due hereunder in connection with any Eurodollar Fundings, (ii) due to any failure of the Co-Borrowers to borrow or convert any
Eurodollar Fundings on a date specified therefor in a notice thereof or (iii) due to any payment or prepayment of any Eurodollar Funding on a date other than the last day of the applicable Interest Period for such Eurodollar Funding. For this
purpose, all notices under Sections 2.2, 2.3 and 2.4 shall be deemed to be irrevocable. 
  
 Section 2.19. Right of Bank to Fund through Other Offices. The Bank, if it so elects, may fulfill its agreements hereunder with respect to any
Eurodollar Funding by causing a foreign branch or affiliate of the Bank to make such Eurodollar Funding; provided, that in such event the obligation of the Co-Borrowers to repay such Eurodollar Funding shall nevertheless be to the Bank and
the Eurodollar Funding shall be deemed held by the Bank for the account of the branch or affiliate. 
  
 Section 2.20. Discretion of Bank as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, the Bank shall be
entitled to fund and 

  

 34 

 
maintain all or any part of its Eurodollar Fundings in any manner it deems fit, it being understood, however, that for the purposes of this Agreement
(specifically including, without limitation, Section 2.18 hereof) all determinations hereunder shall be made as if the Bank had actually funded and maintained each Eurodollar Funding during each Interest Period for such Eurodollar Funding
through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to the appropriate Eurodollar Rate for such Interest Period. 
  
 Section 2.21. Conclusiveness of Statements; Survival of Provisions. Determinations and statements of the Bank
pursuant to Section 2.16, 2.17, or 2.18 shall be conclusive absent demonstrable error. The Bank may use reasonable averaging and attribution methods in determining compensation pursuant to such Sections 2.16, 2.17
or 2.18 and the provisions of Sections 2.16, 2.17 and 2.18 shall survive termination of this Agreement. 
  
 ARTICLE III  
  
 CONDITIONS OF LENDING 
  
 Section 3.1. Conditions Precedent to the Initial Advance. The obligation of the Bank to fund the initial Advances or issue any Letter of Credit is subject to the condition precedent that the Bank shall have
received the following, each in form and substance satisfactory to the Bank: 
  
 (a) The Note, properly executed on behalf of the Co-Borrowers. 
  
 (b) The Guaranties, properly executed on behalf of the appropriate Guarantor. 
  
 (c) The Security Documents (other than the Mortgages),
properly executed on behalf of the appropriate Credit Party, together with: 
  
 (i) financing statements with respect to each Credit Party to be filed in all jurisdictions which, in the opinion of the Bank, are reasonably necessary to perfect the security interests created by the Security
Documents, to the extent such security interests can be perfected by filing; and 
  
 (ii) current searches of appropriate filing offices in each state (and county, to the extent relevant) in which a Credit Party has an
office or otherwise conducts business (including, without limitation, patent and trademark offices, secretaries of state and county recorders) showing that no state or federal tax liens have been filed and remain in effect against any Credit Party,
and that no financing statements or other notifications or filings have been filed and remain in effect against any Credit Party, other than those for which the Bank has received an appropriate release, termination or satisfaction or those permitted
in accordance with Section 6.1. 
  

 35 

 (d) Evidence of all insurance required by the terms of any Loan Document, together with
appropriate certificates and loss payable endorsements showing the Bank as additional insured and loss payee thereunder. 
  
 (e) Evidence that all actions which, in the opinion of the Bank, are reasonably necessary to perfect and protect the security interests
created by the Security Documents have been taken. 
  
 (f) Copies of the Articles of Incorporation and Bylaws (or other comparable organizational documents) of each Credit Party, certified by the Secretary or Assistant Secretary of such Credit Party as being true and correct copies thereof.

  
 (g) A certificate of good standing for each
Credit Party, dated not more than thirty (30) days prior to the date hereof, and evidence satisfactory to the Bank that each Credit Party is qualified to conduct its business in each state where it presently conducts such business if failure to
obtain any such qualification or licensing would have a Material Adverse Effect. 
  
 (h) A signed copy of a certificate of the Secretary or an Assistant Secretary of each Credit Party which shall certify the names of the
officers of such Credit Party authorized to sign the Loan Documents to which such Credit Party is a party and the other documents or certificates to be delivered pursuant to this Agreement, including (as to the Co-Borrowers) requests for Advances
and Eurodollar Fundings, together with the true signatures of such officers. The Bank may conclusively rely on such certificates until it shall receive a further certificate of the Secretary of an Assistant Secretary of a Credit Party canceling or
amending the prior certificate and submitting the signatures of the officers named in such further certificate. 
  
 (i) A Borrowing Base Certificate as of a date not more than ten (10) days prior to the Closing Date. 
  
 (j) Collateral audit reports in all respects satisfactory to
the Bank. 
  
 (k) The following financial
information: (i) audited financial statements for the period ednded December 31, 2002 for the Consolidated Group (as of such date), (ii) interim financial statements of the Consolidated Group for the period from December 31, 2002 through July
31, 2003; and (iii) a business plan for the Co-Borrowers’ 2003 fiscal year, including a written analysis of the business and prospects for the Consolidated Group for such year and for each year thereafter through the Co-Borrowers’ fiscal
year end, 2006, together with financial projections for the period commencing December 31, 2002, and ending on January 1, 2007, prepared by management of the Co-Borrowers, together with a summary of key assumptions utilized by management in the
preparation of such projections. 
  
 (l) The
Securities Account Pledge Agreement, properly executed on behalf of the Co-Borrowers. 
  

 36 

 (m) Holding Company Subordination Agreement. 
  
 (n) A signed copy of an opinion of counsel for each Credit
Party addressed to the Bank. 
  
 (o) Availability
of at least three million dollars ($3,000,000) under the Revolving Commitment at Closing. 
  
 (p) Payment of all fees and expenses then due and payable pursuant to Sections 2.12 and 8.4 hereof. 
  
 Section 3.2. Conditions Precedent to All Advances. The obligation of
the Bank to make each Advance or issue a Letter of Credit shall be subject to the further conditions precedent that on such date: 
  
 (a) the representations and warranties contained in Article IV hereof are correct in all material respects on and as of the date of
such Advance or Letter of Credit as though made on and as of such date; 
  
 (b) no event has occurred and is continuing, or would result from such Advance or Letter of Credit, which constitutes a Default or an Event of Default; and 
  
 (c) there has been no material adverse change in the
financial condition or prospects of any Credit Party since the date of the financial statements described in Section 4.5. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Co-Borrowers represent and warrant to the Bank as follows: 
  
 Section 4.1. Legal Existence and Power; Name; Chief Executive Office. Each Credit Party is a legal entity duly organized, validly existing and in good standing under the laws of its respective state of
organization, and is duly licensed or qualified to transact business in all jurisdictions where the character of the property owned or leased or the nature of the business transacted by it makes such licensing or qualification necessary and where
failure to obtain such licensing or qualification would have a Material Adverse Effect. Each Credit Party has all requisite power and authority, corporate or otherwise, to conduct its business, to own its properties and to execute and deliver, and
to perform all of its obligations under, the Loan Documents to which it is a party. Within the last twelve (12) months, each Credit Party has done business solely under the names set forth in Schedule 4.1. The state of organization and the
chief executive office and principal place of business of each Credit Party are designated as such in Schedule 4.1, each other place of 

  

 37 

 
business of each Credit Party is located at the address set forth in Schedule 4.1 and all records relating to their respective businesses are kept at
those locations. 
  
 Section 4.2. Authorization for Borrowings
and Letters of Credit; No Conflict as to Law or Agreements. The execution, delivery and performance by each Credit Party of the Loan Documents to which it is a party, and the Letters of Credit and Advances from time to time obtained hereunder,
have been duly authorized by all necessary corporate action and do not and will not (a) require any consent or approval which has not been obtained prior to the date hereof, (b) require any authorization, content or approval by, or registration,
declaration or filing (other than filing of financing statements as contemplated hereunder) with, or notice to, any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or any third party, except such
authorization, consent, approval, registration, declaration, filing or notice as has been obtained, accomplished or given prior to the date hereof, (c) violate any provision of any law, rule or regulation (including, without limitation, Regulations
T, U or X of the Board of Governors of the Federal Reserve System) or of any order, writ, injunction or decree presently in effect having applicability to a Credit Party or of the articles of incorporation, bylaws or other organizational documents
of a Credit Party, (d) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other material agreement, lease or instrument to which any Credit Party is a party or by which it or its properties may be
bound or affected, or (e) result in, or require, the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature upon or with respect to any of the properties now owned or
hereafter acquired by an Credit Party (other than as required hereunder in favor of the Bank). 
  
 Section 4.3. Legal Agreements. Each of the Loan Documents constitutes the legal, valid and binding obligations and agreements of the Credit Party which is a party thereto, enforceable against such Credit Party
in accordance its terms, except to the extent that enforcement thereof may be limited by an applicable bankruptcy, insolvency or similar laws now or hereafter in effect affecting creditors’ rights generally and by general principles of equity.

  
 Section 4.4. Subsidiaries. All Subsidiaries of each
Credit Party (both direct and indirect) are set forth and described in the organizational chart in Schedule 4.4. 
  
 Section 4.5. Financial Condition; No Adverse Change. The Co-Borrowers have heretofore furnished to the Bank audited financial statements of the
Consolidated Group for its fiscal year ended December 30, 2002, and unaudited financial statements of the Consolidated Group for the year-to-date period ended July 31, 2003, and those financial statements fairly present the financial condition of
the Consolidated Group on the dates thereof and the results of operations and cash flows for the periods then ended (subject to year-end audit adjustments) and were prepared in accordance with GAAP. Since the date of the financial statements
described above, there has not occurred any event or circumstance that would have a Material Adverse Effect. 
  

 38 

 Section 4.6. Litigation. There are no actions, suits or proceedings pending or, to the respective
knowledge of the Credit Parties, threatened against or affecting any Credit Party or the properties of any Credit Party before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, which, if
determined adversely to such Person, could reasonably be expected to have a Material Adverse Effect, except as set forth and described in Schedule 4.6. 
  

Section 4.7. Regulation U. No Credit Party has engaged in the business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Advance 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. 
  
 Section 4.8.
Taxes. To their respective knowledge, each Credit Party has paid or caused to be paid to the proper authorities when due all federal, state and local taxes required to be withheld by it. Each Credit Party has filed all federal, state and
local tax returns which to the knowledge of the officers of such Credit Party, are required to be filed, and each Credit Party has paid or caused to be paid to the respective taxing authorities all taxes as shown on said returns or on any assessment
received by it to the extent such taxes have become due, except for any such tax, assessment, charge or claim whose amount, applicability or validity is being contested by an Credit Party in good faith and by proper proceedings and for which such
Credit Party shall have set aside adequate reserves. 
  
 Section
4.9. Titles and Liens. A Credit Party has good and absolute title to all properties and assets reflected in the latest balance sheet referred to in Section 4.5, free and clear of all mortgages, security interests, liens and
encumbrances, except for (a) mortgages, security interests and liens permitted by Section 6.1, and (b) covenants, restrictions, rights, easements and minor irregularities in title which do not (i) materially interfere with the business or
operations of any Credit Party as presently conducted and (ii) materially impair the value of the property to which they attach. In addition, no financing statement naming any Credit Party as debtor is on file in any office except to perfect only
security interests permitted by Section 6.1. 
  
 Section
4.10. Plans. Except as disclosed on Schedule 4.10, none of the Co-Borrowers, any other Credit Party or any of their respective ERISA Affiliates (i) maintains or has maintained any Pension Plan, (ii) contributes or has contributed to
any Multiemployer Plan or (iii) provides or has provided post-retirement medical or insurance benefits with respect to employees or former employees (other than benefits required under Section 601 of ERISA, Section 4980B of the Code or applicable
state law). None of the Co-Borrowers, any other Credit Party or any of their respective ERISA Affiliates has received any notice or has any knowledge to the effect that it is not in full compliance with any of the requirements of ERISA, the Code or
applicable state law with respect to any Plan. No Reportable Event exists in connection with any Pension Plan. Each Plan which is intended to qualify under the Code is so qualified, and no fact or circumstance exists which may have an adverse effect
on the Plan’s tax-qualified status. None of the Co-Borrowers, any other Credit Party or any of 

  

 39 

 
their respective ERISA Affiliates has (i) any accumulated funding deficiency (as defined in Section 302 of ERISA and Section 412 of the Code) under any Plan,
whether or not waived, (ii) any liability under Section 4201 or 4243 of ERISA for any withdrawal, partial withdrawal, reorganization or other event under any Multiemployer Plan or (iii) any liability or knowledge of any facts or circumstances which
could result in any liability to the Pension Benefit Guaranty Corporation, the Internal Revenue Service, the Department of Labor or any participant in connection with any Plan (other than routine claims for benefits under the Plan). 
  
 Section 4.11. Default. Each Credit Party is in compliance with all
provisions of all agreements, instruments, decrees and orders to which it is a party or by which it or its property is bound or affected, the breach or default of which could reasonably be expected to have a Material Adverse Effect. 
  
 Section 4.12. Environmental Compliance. Each Credit Party has obtained
all permits, licenses and other authorizations which are required under federal, state and local laws and regulations relating to emissions, discharges, releases of pollutants, contaminants, hazardous or toxic materials, or wastes into ambient air,
surface water, ground water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants or hazardous or toxic materials or wastes
(“Environmental Laws”) at their respective facilities or in connection with the operation of its facilities. Except as disclosed in Schedule 4.12, each Credit Party and all activities of each Credit Party, at its facilities comply
with all material Environmental Laws and with all terms and conditions of any required permits, licenses and authorizations applicable to such Person with respect thereto. Except as disclosed in Schedule 4.12, each Credit Party is in
compliance with all limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in Environmental Laws or contained in any plan, order, decree, judgment or notice of which such Credit
Party is aware and with respect to which noncompliance would have a Material Adverse Effect Except as disclosed in Schedule 4.12, no Credit Party is aware of, nor has any Credit Party received notice of, any events, conditions, circumstances,
activities, practices, incidents, actions or plans which may interfere with or prevent continued compliance with, or which may give rise to any liability under, any Environmental Laws. 
  
 Section 4.13. Submissions to Bank. All financial and other information provided to the Bank by or on behalf of any
Credit Party in connection with the Co-Borrowers’ request for the credit facilities contemplated hereby is true and correct in all material respects and, as to projections, valuations or pro forma financial statements, present a good faith
opinion as of the date made as to such projections, valuations and pro forma condition and results. 
  

 40 

 Section 4.14. Financial Solvency. Both before and after giving effect to all of the loans,
guaranties and other financial accommodations contemplated herein, each Credit Party: 
  
 (a) was not and will not be insolvent, as that term is used and defined in Section 101(32) of the United States Bankruptcy Code and
Section 2 of the Uniform Fraudulent Transfer Act; 
  
 (b) does not have unreasonably small capital and is not engaged or about to engage in a business or a transaction for which any remaining assets of such Credit Party are unreasonably small; 
  
 (c) does not, by executing, delivering or performing its
obligations under the Loan Documents or by taking any action with respect thereto, intend to, nor believe that it will, incur debts beyond its ability to pay them as they mature; 
  
 (d) does not, by executing, delivering or performing its obligations under the Loan Documents to which it is
a party or by taking any action with respect thereto, intend to hinder, delay or defraud either its present or future creditors; and 
  
 (e) does not contemplate filing a petition in bankruptcy or for an arrangement or reorganization or similar proceeding under any law any
jurisdiction or country, and, to the best knowledge of such Credit Party, is not the subject of any bankruptcy or insolvency proceedings or similar proceedings under any law of any jurisdiction or country threatened or pending against such Credit
Party; 
  
 provided, however, that for purposes of the foregoing
representation relating to a Guarantor, no Guaranty executed by a Guarantor shall be deemed a liability of such Guarantor, 
  
 Section 4.15 Information Regarding Real Estate. Set forth and described in Schedule 4.15 is a true and accurate description of each parcel
of real estate owned or leased by a Credit Party and which is not otherwise truly and accurately described in any Mortgage or other Security Document. 
  
 Section 4.16 Intellectual Property Rights. 
  
 (a) Owned Intellectual Property. Schedule 4.16 is a complete list of all patents, applications for patents, trademarks,
applications for trademarks, service marks, applications for service marks, mask works, trade dress and copyrights for which any Credit Party is the registered owner (the “Owned Intellectual Property”). Except as disclosed on Schedule
4.16, (i) a Credit Party owns the Owned Intellectual Property free and clear of all restrictions (including covenants not to sue a third party), court orders, injunctions, decrees, writs or liens, whether by written agreement or otherwise, (ii)
no Person other than a Credit Party owns or has been granted any right in the Owned Intellectual Property, (iii) all Owned Intellectual Property is valid, subsisting and enforceable and (iv) each Credit Party has taken all commercially reasonable
action necessary to maintain and protect the Owned Intellectual Property owned by it. 
  

 41 

 (b) Intellectual Property Rights Licensed from Others. Schedule 4.16 is a
complete list of all agreements under which any Credit Party has licensed Intellectual Property Rights from another Person (“Licensed Intellectual Property”) other than readily available, non-negotiated licenses of computer software and
other intellectual property used solely for performing accounting, word processing and similar administrative tasks (“Off-the-shelf Software”) and a summary of any ongoing payments the applicable Credit Party is obligated to make with
respect thereto. Except as disclosed on Schedule 4.16 and in written agreements copies of which have been given to the Bank, each Credit Party’s licenses to use the Licensed Intellectual Property are free and clear of all restrictions,
liens, court orders, injunctions, decrees, or writs, whether by written agreement or otherwise. Except as disclosed on Schedule 4.16, no Credit Party is obligated or under any liability whatsoever to make any payments of a material nature by
way of royalties, fees or otherwise to any owner of, licensor of, or other claimant to, any Intellectual Property Rights. 
  
 (c) Infringement. Except as disclosed on Schedule 4.16, no Credit Party has any knowledge of, and has not received any
written claim or notice alleging, any infringement of another Person’s Intellectual Property Rights (including any written claim that a Credit Party must license or refrain from using the Intellectual Property Rights of any third party) nor, to
the knowledge of any Credit Party, is there any threatened claim or any reasonable basis for any such claim. 
  
 ARTICLE V 
  
 AFFIRMATIVE COVENANTS OF THE CO-BORROWERS 
  
 So
long as the Note or Letter of Credit shall remain unpaid or outstanding or any Revolving Commitment shall be outstanding, the Co-Borrowers will comply with the following requirements, unless the Bank shall otherwise consent in writing: 

 
 Section 5.1. Reporting Requirements. The Co-Borrowers will deliver,
or cause to be delivered, to the Bank each of the following, which shall be in form and detail reasonably acceptable to the Bank: 
  
 (a) as soon as available, and in any event within one hundred twenty (120) days after the end of each fiscal year of the Co-Borrowers,
audited annual financial statements of the Consolidated Group with the unqualified opinion of independent certified public accountants selected by the Consolidated Group and acceptable to the Bank, which annual financial statements shall include the
balance sheets of the Consolidated Group as at the end of such fiscal year and the related statements of income, retained earnings and cash flows of the Consolidated Group for the fiscal year then ended, prepared on a consolidating and consolidated
basis, all in reasonable detail and prepared in accordance with GAAP, together with (i) a report signed, by such accountants stating that in making the investigations necessary for said opinion they obtained no knowledge, except as specifically
stated, of any Default or Event of 

  

 42 

 
Default hereunder and all relevant facts in reasonable detail to evidence, and the computations as to, whether or not the Co-Borrowers are in compliance with
the Financial Covenants; and (ii) a certificate of the chief financial officer of the Co-Borrowers, substantially in the form of Exhibit F, stating that such financial statements have been prepared in accordance with GAAP and whether or not
such officer has knowledge of the occurrence of any Default or Event of Default hereunder and, if so, stating in reasonable detail the facts with respect thereto, and a budget for the current fiscal year and financial projections for the current
fiscal year and for the immediately succeeding fiscal year; 
  
 (b) as soon as available and in any event within thirty (30) days after the end of each fiscal month of the Co-Borrowers, an unaudited/interim balance sheet and statement of income, cash flow and retained earnings of
the Consolidated Group as at the end of and for such fiscal month and for the year-to-date period then ended, prepared on a consolidating and consolidated basis, in reasonable detail and stating in comparative form the budget of the Consolidated
Group for such fiscal month and for the year-to-date period then ended and the figures for the corresponding date and periods in the previous year, all prepared in accordance with GAAP, subject to year-end audit adjustments; 
  
 (c) as soon as available and in any event within twenty (20)
days after the end of each fiscal quarter of the Co-Borrowers, a certificate of the chief financial officer of the Co-Borrowers, substantially in the form of Exhibit G, stating (i) that such financial statements have been prepared in
accordance with GAAP, subject to year-end audit adjustments, (ii) whether or not such officer has knowledge of the occurrence of any Default or Event of Default hereunder not theretofore reported and remedied and, if so, stating in reasonable detail
the facts with respect thereto, and (iii) all relevant facts in reasonable detail to evidence, and the computations as to (A) the applicable Status for purposes of establishing the appropriate Margins and (B) whether or not the Co-Borrowers are in
compliance with the Financial Covenants; 
  
 (d)
within fifteen (15) days after the end of each month, a properly completed and executed Borrowing Base Certificate as at the end of such month; 
  
 (e) not later than January 31 of each fiscal year of the Co-Borrowers, the projected balance sheets, income statements, Capital
Expenditures budget, and cash flow statements for the Consolidated Group for each month of such year, each in reasonable detail, representing the good faith projections of the Co-Borrowers for each such month, and certified by the Co-Borrowers’
chief financial officer as being the most accurate projections available and identical to the projections used by the Co-Borrowers for internal planning purposes, together with such supporting schedules and information as the Bank from time to time
may reasonably request; 
  
 (f) as soon as
available and in any event within thirty (30) days after the end of each fiscal month of the Co-Borrowers, any and all receivables schedules, 

  

 43 

 
collection, agings of accounts receivable and accounts payable, inventory reports and such other material reports, records or information as the Bank from
time to time may reasonably request; 
  
 (g) as
soon as available and in any event within thirty (30) days after the end of each fiscal month of the Co-Borrowers, an account statement with respect to the Account (as defined in the Securities Account Pledge Agreement) from the institution holding
such Account; 
  
 (h) immediately after the
commencement thereof, notice in writing of all uninsured litigation and of all proceedings before any governmental or regulatory agency affecting any Credit Party of the type described in Section 4.6 or which (i) seek a monetary recovery
against any Credit Party in excess of $250,000 or (ii) if determined adversely to any Credit Party, could reasonably be expected to have a Material Adverse Effect; 
  
 (i) as promptly as practicable (but in any event not later than five (5) Business Days) after an officer of
the Co-Borrowers obtains knowledge of the occurrence of a Default or Event of Default hereunder, notice of such occurrence, together with a detailed statement by a responsible officer of the Co-Borrowers setting forth the steps being taken by the
Co-Borrowers to cure the effect of such Default or Event of Default; 
  
 (j) as promptly as practicable, and in any event within thirty (30) days after the Co-Borrowers know or have reason to know that any Reportable Event with respect to any Pension Plan has occurred, the Co-Borrowers
will deliver to the Bank a statement of the Co-Borrowers’ (or, as applicable, other Credit Party’s) chief financial officer setting forth details as to such Reportable Event and the action which the Co-Borrowers (or, as applicable, other
Credit Party) propose to take with respect thereto, together with a copy of the notice of such Reportable Event to the Pension Benefit Guaranty Corporation; 
  
 (k) as promptly as practicable, and in any event within ten (10) days after any Credit Party fails to make any quarterly contribution
required with respect to any Pension Plan under Section 412(m) of the Code, the Co-Borrowers will deliver to the Bank a statement of the Co-Borrowers’ (or, as applicable, other Credit Party’s) chief financial officer setting forth details
as to such failure and the action which the Co-Borrowers (or, as applicable, other Credit Party) propose to take with respect thereto, together with a copy of any notice of such failure required to be provided to the Pension Benefit Guaranty
Corporation; 
  
 (l) as promptly as practicable,
and in any event with ten (10) days after the Co-Borrowers know or have reason to know that the Co-Borrowers or any other Credit Party have or are reasonably expected to have any liability under Section 4201 or 4243 of ERISA for any withdrawal,
partial withdrawal, reorganization or other event under any Multiemployer Plan, the Co-Borrowers will deliver to the Bank a 

  

 44 

 
statement of the Co-Borrowers’ (or, as applicable, other Credit Party’s) chief financial officer setting forth details as to such liability and the
action which Co-Borrowers (or, as applicable, other Credit Party) propose to take with respect thereto; 
  
 (m) promptly upon obtaining knowledge thereof, notice of the violation by any Credit Party of any law, rule or regulation, the
non-compliance with which could reasonably be expected to have a Material Adverse Effect; 
  
 (n) promptly upon their distribution, copies of all financial statements, reports, proxy statements and other communications which the
Co-Borrowers shall have sent to its stockholders; 
  
 (o) promptly after the sending or filing thereof, copies of all regular and periodic financial reports which the Co-Borrowers shall file with the Securities and Exchange Commission or any national securities exchange; and 
  
 (p) not later than December 31 of each year, updated
certificates of insurance in each case demonstrating coverage for all tangible Collateral and showing the Bank as additional insured, loss payee and otherwise satisfying all requirements specified in any Loan Document. 
  
 Section 5.2. Books and Records; Inspection and Examination. The
Co-Borrowers will keep, and will cause each other Credit Party to keep, accurate books of record and account for itself pertaining to its business and financial condition and such other matters as the Bank may from time to time request in which true
and complete entries will be made in accordance with GAAP consistently applied and, upon request of and reasonable notice by the Bank, will permit any officer, employee, attorney or accountant for the Bank to audit, review, make extracts from or
copy any and all corporate and financial books and records of any Credit Party at all reasonable times during ordinary business hours, to send and discuss with account debtors and other obligors requests for verification of amounts owed to any
Credit Party, and to discuss the affairs of any Credit Party with any of its directors, officers, employees or agents. The Co-Borrowers will permit the Bank or its employees, accountants, attorneys or agents, to examine and inspect any property of
any Credit Party at any time during ordinary business hours; provided, that the Bank will use reasonable efforts to conduct (or have conducted) any such examination or inspection so as to minimize disruptions to the operations of such Credit Party.

  
 Section 5.3. Compliance with Laws. The Co-Borrowers
will, and will cause each Credit Party to, (a) comply with the requirements of all applicable laws and regulations including (but not limited to) all Environmental Laws and (b) use and keep its assets, and will require that others use and keep its
assets, only for lawful purposes, without violation of any federal, state or local law, statute or ordinance. 
  
 Section 5.4. Payment of Taxes and Other Claims. The Co-Borrowers will pay or discharge, and will cause each other Credit Party to pay or discharge,
when due, (a) all taxes, assessments and governmental charges levied or imposed upon it or upon its income or 

  

 45 

 
profits, upon any properties belonging to it prior to the date on which penalties attach thereto, (b) all federal, state and local taxes required to be
withheld by it, and (c) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien or charge upon any properties of a Credit Party; provided, that no Credit Party shall be required to pay any such tax,
assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings and for which such Credit Party has set aside adequate reserves in accordance with GAAP. 
  
 Section 5.5. Maintenance of Properties. The Co-Borrowers will keep and
maintain, and will cause each other Credit Party to keep and maintain, all of its properties necessary or useful in its business in good condition, repair and working order (normal wear and tear excepted); provided, however, that
nothing in this Section 5.5 shall prevent a Credit Party from discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the reasonable judgment of such Credit Party, desirable in the conduct of such
Credit Party’s business and not disadvantageous in any material respect to the Bank. The Co-Borrowers will and will cause each other Credit Party to take all commercially reasonable steps necessary to protect and maintain its Intellectual
Property Rights. The Co-Borrowers will and will cause each other Credit Party to take all commercially reasonable steps necessary to prosecute any Person infringing its Intellectual Property Rights and to defend itself against any Person accusing it
of infringing any Person’s Intellectual Property Rights. 
  
 Section 5.6. Insurance. The Co-Borrowers will obtain and at all times maintain, and will cause each other Credit Party to obtain and at all times maintain, insurance with insurers believed by it to be responsible and reputable in
such amounts and against such risks as is usually carried by companies engaged in similar business and owning similar properties in the same general areas in which it operates. 
  
 Section 5.7. Preservation of Legal Existence. The Co-Borrowers will preserve and maintain, and will cause each other
Credit Party to preserve and maintain, its legal existence and all of its rights, privileges and franchises necessary or desirable in the normal conduct of its business and shall conduct its business in an orderly, efficient and regular manner.

  
 Section 5.8. Creation of New Credit Parties and
Subsidiaries. The Co-Borrowers will not create any Subsidiary, nor will it acquire any business which would constitute a Subsidiary, without first obtaining the prior written approval of the Bank. The Co-Borrowers will cause each new Subsidiary
to execute and deliver to the Bank, a Guaranty, a Security Agreement and a Trademark and Patent Security Agreement, each in form and content acceptable to the Bank, whereupon such Subsidiary shall constitute a Credit Party hereunder. In the event
that any such Subsidiary is organized under a jurisdiction other than the United States of America or a state thereof, the Bank will negotiate in good faith with the Co-Borrowers and such Subsidiary to include provisions in such Subsidiary’s
Guaranty designed to prevent deemed distributions to the Co-Borrowers under Section 956 of the Code; provided, however, that such provisions shall preserve the maximum security in 

  

 46 

 
such Subsidiary and its assets for the Bank possible in connection with such considerations; provided, further, that the Bank shall not be
responsible to the Co-Borrowers, any Credit Party, any such Subsidiary or any other Person for the sufficiency of such provisions to accomplish their stated purpose. 
  
 Section 5.9. Minimum EBITDA. As of each Covenant Computation Date, the Co-Borrowers will achieve minimum EBITDA
(plus expenses and/or settlement costs, without duplication, of up to $5,000,000 in the aggregate related to the Pending Employment Litigation) for the Consolidated Group of not less than $8,500,000. 
  
 Section 5.10. Minimum Interest Coverage Ratio. As of each Covenant
Computation Date, the Co-Borrowers will maintain the Interest Coverage Ratio of the Consolidated Group at not less than 3.75 to 1.00. 
  
 Section 5.11. Minimum Fixed Charge Coverage Ratio. As of each Covenant Computation Date, the Co-Borrowers will maintain the Fixed Charge Coverage
Ratio of the Consolidated Group at not less than 1.15 to 1.00. 
  
 Section 5.12. Maximum Leverage Ratio. As of each Covenant Computation Date, the Co-Borrowers will maintain the Leverage Ratio of the Consolidated Group at not more than 2.75 to 1.00. 
  
 Section 5.13. Landlord Waivers. Not later than ninety (90) days
following the Closing Date, the Co-Borrowers will have obtained and delivered to the Bank landlord and/or warehouseman lien waivers, as appropriate, for each location where any Collateral is located that is not owned by a Credit Party, such waivers
to be in form and substance satisfactory to the Bank. After the expiration of such ninety (90) day period, all otherwise Eligible Finished Inventory and Eligible Semi-Finished Inventory located at any such non-owned location for which an appropriate
waiver has not been obtained will no longer constitute Eligible Finished Inventory or Eligible Semi-Finished Inventory and will continue not to constitute Eligible Finished Inventory or Eligible Semi-Finished unless and until such waiver is
obtained. 
  
 ARTICLE VI 
  
 NEGATIVE COVENANTS 
  
 So long as the Note or any Letter of Credit shall remain unpaid or
outstanding or any Revolving Commitment shall be outstanding, the Co-Borrowers will comply with the following requirements, unless the Bank shall otherwise consent in writing: 
  
 Section 6.1. Liens. The Co-Borrowers will not, and will not permit any other Credit Party to, create, incur or suffer
to exist any mortgage, deed of trust, pledge, lien, security interest, assignment or transfer upon or of any assets of any Credit Party, now 

  

 47 

 
owned or hereafter acquired, to secure any indebtedness; excluding from the operation of the foregoing (herein “Permitted Liens”):

  
 (a) mortgages, deeds of trust, pledges,
liens, security interests and assignments in existence on the date hereof and listed in Schedule 6.1 (including any subsequent extension or renewal of such mortgages, deeds of trust, pledges, liens, security interests and assignments to the
extent (i) the related extension or renewal of the Debt secured thereby is otherwise permitted under this Agreement, (ii) the principal amount secured thereby is not increased above the amount outstanding immediately prior to such extension or
renewal, and (iii) the property subject thereto is not increased); 
  
 (b) liens for taxes or assessments or other governmental charges to the extent not required to be paid by Section 5.4; 
  

(c) materialmen’s, merchants’, carriers’, worker’s, repairer’s, or other like liens arising in the ordinary course of business to the extent not required to be paid by Section 5.4; 
  
 (d) pledges or deposits to secure obligations under
worker’s compensation laws, unemployment insurance and social security laws, or to secure the performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases or to secure statutory obligations or surety or
appeal bonds, or to secure indemnity, performance or other similar bonds in the ordinary course of business; 
  
 (e) zoning restrictions, easements, licenses, restrictions on the use of real property or minor irregularities in title thereto, which do
not materially impair the use of such property in the operation of the business of any Credit Party or the value of such property for the purpose of such business; 
  
 (f) liens and security interests granted to the Bank pursuant to any of the Security Documents; 

 
 (g) liens and security interests granted to GE Capital in
connection with the GE Capital Loan Agreement; 
  
 (h) purchase money mortgages, liens or security interests, including conditional sale agreements, capital lease liabilities or other title retention agreements and leases which are in the nature of title retention agreements, upon or in
property acquired after the date hereof by a Credit Party, or mortgages, liens or security interests existing in such property at the time of the acquisition thereof, provided that: 
  
 (i) no such mortgage, lien or security interest extends or
shall extend to or cover any property of a Credit Party other than the property then being acquired; and 
  

 48 

 (ii) the aggregate principal amount of the indebtedness secured by any such mortgage,
lien or security interest shall not exceed the cost of such property so acquired in connection therewith; 
  
 (i) bankers’ liens, rights of set off or similar rights as to accounts maintained with a financial institution; and 
  
 (j) licenses, leases or subleases granted to other Persons
if and to the extent such licenses, leases and subleases do not interfere in any material respect with the business of any Credit Party or any of their respective Subsidiaries and does not diminish the value of, or impair any right of the Bank in or
to any Collateral (as such term is defined in the applicable Security Agreement). 
  
 Section 6.2. Indebtedness. The Co-Borrowers will not, and will not permit any other Credit Party to, incur, create, assume, permit or suffer to exist, any indebtedness or liability on account of deposits or
advances or any indebtedness for borrowed money, or any other indebtedness or liability evidenced by notes, bonds, debentures or similar obligations, except: 
  

(a) Obligations arising hereunder; 
  
 (b) Obligations owing to GE Capital in connection with the GE Capital Loan Agreement; 
  
 (c) Obligations arising under the Holding Company Notes and
any additional Holding Company Notes issued to pay interest on such Notes; 
  
 (d) Subordinated Debt issued to refinance the Holding Company Notes provided such Subordinated Debt is (i) incurred solely by JAC Holdings, (ii) the terms of such Subordinated Debt are no less favorable to JAC
Holdings as the terms of the Holding Company Notes, and (iii) the holder or holders of such Subordinated Debt enter into a Subordination Agreement acceptable in form and substance to the Bank; 
  
 (e) indebtedness in existence on the date hereof and listed
in Schedule 6.2; together with any extension, renewal or replacement thereof (so long as such indebtedness is not increased above the amount outstanding immediately prior to giving effect to any such extension, renewal or replacement);

  
 (f) Capital Leases, operating leases, and
indebtedness of a Credit Party secured by security interests permitted by Section 6.l(h). not to exceed $1,500,000 in annual payments in the aggregate at any time outstanding, net of any payments received pursuant to those Capital Leases
and other transactions; and 
  
 (g) intercompany
loans by and between the Credit Parties. 
  

 49 

 Section 6.3. Guaranties. The Co-Borrowers will not, and will not permit any other Credit Party to,
assume, guarantee, endorse or otherwise become directly or contingently liable in connection with any obligations of any other Person, except: 
  
 (a) the Guaranties; 
  
 (b) guarantees required under the GE Capital Loan Agreement; 
  
 (c) the endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and 
  
 (d)
guaranties, endorsements and other direct or contingent liabilities in connection with the obligations of other Persons in existence on the date hereof and listed in Schedule 6.3; together with any extension, renewal or replacement thereof
(so long as such indebtedness is not increased above the amount outstanding immediately prior to giving effect to any such extension, renewal or replacement). 
  

Section 6.4. Investments. The Co-Borrowers will not, and will not permit any other Credit Party to, purchase or hold beneficially any stock or
other securities or evidences of indebtedness of, make or permit to exist any loans or advances to, or create or acquire any Subsidiary or make any investment or acquire any interest whatsoever in, any other Person, except: 
  
 (a) investments in direct obligations of the United States
of America or any agency or instrumentality thereof whose obligations constitute the full faith and credit obligations of the United States of America having a maturity of one (1) year or less, commercial paper issued by a U.S. corporation rated
“A-l” or “A-2” by Standard & Poors Rating Group or “P-l” or “P-2” by Moody’s Investors Service, investments in money market mutual funds whose underlying assets are exclusively investments which would
otherwise be permitted investments under this Section 6.4(a), or repurchase agreements, certificates of deposit or bankers’ acceptances having a maturity of one (1) year or less issued by members of the Federal Reserve System having
deposits in excess of $500,000,000 (which certificates of deposit or bankers’ acceptances are fully insured by the Federal Deposit Insurance Corporation); 
  

(b) travel advances or loans to officers and employees of any Credit Party not exceeding at any one time an aggregate for all members
of the Consolidated Group of $100,000; 
  
 (c)
advances in the form of progress payments, prepaid rent or security deposits in the ordinary course of business; and 
  
 (d) investments by any Credit Party in another Credit Party, including intercompany transfers, advances, loans, guarantees or other
financial accommodations. 
  

 50 

 Section 6.5. Restricted Payments. The Co-Borrowers will not declare or pay any dividends on any
shares of any class of its stock, or directly or indirectly apply any assets to the redemption, retirement, purchase or other acquisition of any shares of any class of stock of the Co-Borrowers or make any payments or distributions for any reason to
or for the account or benefit of any Affiliate, except (a) Permitted Distributions, (b) payments owing under transactions with affiliates otherwise permitted by Section 6.7 hereof; and (c) payments permitted under Section 6.15 hereof
(to the extent not duplicative of Permitted Distributions). 
  
 Section 6.6. Restrictions on Sale and Issuance of Subsidiary Stock. The Co-Borrowers will not: 
  
 (a) permit any of its Subsidiaries to issue or sell any shares of any class of such Subsidiary’s stock to any other Person (other
than to the Co-Borrowers or a wholly-owned Subsidiary of the Co-Borrowers); or 
  
 (b) sell, transfer or otherwise dispose of any shares of any class of stock of any of its Subsidiaries to any other Person (except to a
wholly owned Subsidiary of the Co-Borrowers); or 
  
 (c) permit any of its Subsidiaries to sell, transfer or otherwise dispose of any shares of any class of stock of any other Subsidiary of the Co-Borrowers to any other Person (other than to the Co-Borrowers or a wholly-owned Subsidiary of
the Co-Borrowers). 
  
 Section 6.7. Transactions With
Affiliates. The Co-Borrowers will not, and will not permit any other Credit Party to enter into or be a party to any transaction with any Affiliate of the Co-Borrowers or any such Credit Party that is not also a Credit Party except in the
ordinary course of and pursuant to the reasonable requirements of such Credit Party’s business and upon fair and reasonable terms that are no less favorable to such Credit Party than would be obtained in a comparable arms-length transaction
with a Person not an Affiliate of such Credit Party. 
  
 Section
6.8. Sale or Transfer of Assets; Suspension of Business Operations. Except as permitted under section 6.2(f), the Co-Borrowers will not, and will not permit any other Credit Party to, sell, lease, assign, transfer or otherwise dispose of all
or a substantial part of the assets of the Consolidated Group (other than the sale of Inventory in the ordinary course of business), whether in one transaction or in a series of transactions, to any other Person and will not liquidate, dissolve or
suspend its business operations. For purposes of the foregoing, a “substantial part” of the Consolidated Group’s assets shall mean assets in excess of 10% of the book value of the Consolidated Group’s assets, determined in
accordance with GAAP. 
  
 The Bank agrees that the security
interest granted to the Bank in any railroad rolling stock shall be automatically released as described in Section 9-320 of the UCC upon sale by the Co-Borrowers of such railroad rolling stock to a buyer in the ordinary course of 

  

 51 

 
business; provided, however, the such security interest shall attach to the proceeds of such sale; and provided, further, that the foregoing shall not affect
the Bank’s security interest in any security interest of the Co-Borrowers in the property of such buyers to the extent that such security interest secures the purchase price for such railroad rolling stock. Subject to the terms of this Section
6.8, if the Co-Borrowers shall request in writing that the Bank evidence the release referred to in this Section 6.8 with respect to specific railroad cars, the Bank shall promptly execute and deliver a partial release with respect to such railroad
cars substantially in the form of Exhibit A to the Security Agreement. In the event that any Credit Party is granted a security interest in any railroad rolling stock or other property as collateral security for the purchase price of such
railroad rolling stock or other property, such Credit Party agrees that it shall execute and deliver all documents requested by the Bank in order to reflect and perfect the collateral assignment of the foregoing security interest of such Credit
Party to the Bank. 
  
 Section 6.9. Consolidation and Merger;
Asset Acquisitions. The Co-Borrowers will not, and will not permit any other Credit Party to, consolidate with or merge into any Person, or permit any other Person to merge into it, or acquire (in a transaction analogous in purpose or effect to
a consolidation or merger) all or substantially all the assets of any other Person, except for the merger of any Credit Party into another Credit Party or any Subsidiary into a Credit Party; provided that such Credit Party survives as the sole
remaining entity. 
  
 Section 6.10. Sale and Leaseback. The
Co-Borrowers will not, and will not permit any other Credit Party to, enter into any arrangement, directly or indirectly, with any other Person whereby any Credit Party shall sell or transfer any real or personal property, whether now owned or
hereafter acquired, and then or thereafter rent or lease as lessee such property or any part thereof or any other property which a Credit Party intends to use for substantially the same purpose or purposes as the property being sold or transferred.

  
 Section 6.11. Restrictions on Nature of Business. The
Co-Borrowers will not, and will not permit any other Credit Party to, engage in any line of business materially different from that presently engaged in by the Co-Borrowers or any such Credit Party and will not purchase, lease or otherwise acquire
assets not related to its business. 
  
 Section 6.12.
Accounting. The Co-Borrowers will not, and will not permit any other Credit Party to, adopt any material change in accounting principles, other than as required by GAAP, and will not adopt, permit or consent to any change in its fiscal year.

  
 Section 6.13. Capital Expenditures. The Co-Borrowers
will not, and will not permit any other Credit Party to, make Capital Expenditures during any fiscal year of the Co-Borrowers in an aggregate amount (for the entire Consolidated Group) in excess of the Capital Expenditures Threshold;
provided, however, that no such Capital Expenditures shall be permitted to the extent they would result in a failure of the Co-Borrowers to comply with any Financial Covenant or any other covenant or agreement of the Co-Borrowers
hereunder. 
  

 52 

 Section 6.14. Hazardous Substances. The Co-Borrowers will not cause or permit, and will not permit
any other Credit Party to cause or permit; any Hazardous Substances to be disposed of in any manner which might result in any material liability to any Credit Party on, under or at any real property which is operated by any Credit Party or in which
any Credit Party has any interest. 
  
 Section 6.15. Holding
Company Note Payments. The Co-Borrowers will not, and will not permit any other Credit Party to, make any Holding Company Note Payments prior to March 31, 2004, and, after that date, the Co-Borrowers or any other Credit Party may make scheduled
payments (but not prepayments) of interest required to be paid under the Holding Company Notes, so long as the Payment Conditions have been satisfied; provided, however, the Co-Borrowers will be permitted to pay up to $9,000,000 of the
proceeds of the GE Capital Loan Agreement to the holders of the Holding Company Notes concurrently with the execution of the GE Capital Loan Agreement. 
  
 ARTICLE VII 
  
 EVENTS OF DEFAULT; RIGHTS AND REMEDIES 
  
 Section 7.1. Events of Default. “Event of Default”, wherever used herein, means any one of the following events: 
  
 (a) default in the payment of any principal of the Note when
it becomes due and payable, including, without limitation, any such payment becoming due and payable under Section 2.14(b); or 
  
 (b) default in the payment of any interest on the Note or in the payment of any fees, costs or expenses required to be paid by the
Co-Borrowers under any Loan Document and the continuation of such default for more than three (3) Business Days; or 
  
 (c) default in the performance, or breach, of Section 5.1, any Financial Covenant or any covenant or agreement on the part of the
Co-Borrowers contained in Article VI; or 
  
 (d) default in the performance, or breach, of any covenant or agreement of the Co-Borrowers in this Agreement (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 7.1
specifically dealt with) or default in the performance, or breach, of any covenant or agreement of any Credit Party in any other Loan Document and the continuance of such default or breach for a period of thirty (30) calendar days after the
Co-Borrowers or any such Credit Party has or should reasonably have had notice thereof; or 
  
 (e) any Credit Party shall be or become insolvent, or admit in writing its inability to pay its debts as they mature, or make an
assignment for the benefit of 

  

 53 

 
creditors; or any Credit Party shall apply for or consent to the appointment of any receiver, trustee, or similar officer for it or for all or any
substantial part of its property; or such receiver, trustee or similar officer shall be appointed without the application or consent of such Credit Party; or any Credit Party shall institute (by petition, application, answer, consent or otherwise)
any insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding relating to it under the laws of any jurisdiction; or any such proceeding shall be instituted (by petition, application or otherwise)
against such Credit Party; or any judgment, writ, warrant of attachment or execution or similar process shall be issued or levied against a substantial part of the property of an Credit Party and such judgment, writ, or similar process shall not be
released, vacated or fully bonded within sixty (60) calendar days after its issue or levy; or 
  
 (f) a petition naming any Credit Party as debtor shall be filed under the United States Bankruptcy Code and that, in the case of an
involuntary petition, is not dismissed within forty-five (45) days after the filing of such involuntary petition; provided, however, that the Bank shall have no obligation to make Revolving Advances or extend any other credit to the Co-Borrowers
during such period; or 
  
 (g) any representation
or warranty made by any Credit Party in any Loan Document or by the Co-Borrowers (or any of its officers) in any request for a Borrowing, or in any other certificate, instrument, or statement contemplated by or made or delivered pursuant to or in
connection with any Loan Document, shall prove to have been incorrect in any material respect when made; or 
  
 (h) the rendering against any Credit Party of a final judgment, decree or order for the payment of money in excess of $1,000,000 (unless
the payment of such judgment is fully insured) and the continuance of such judgment, decree or order unsatisfied and in effect for any period of thirty (30) consecutive calendar days without a stay of execution; or 
  
 (i) a writ of attachment, garnishment, levy or similar
process shall be issued against or served on the Bank with respect to (i) any property of any Credit Party in the possession of the Bank, or (ii) any indebtedness of the Bank to any Credit Party; or 
  
 (j) a default of event of default shall occur under the GE
Capital Loan Agreement; or 
  
 (k) a default
under any material credit agreement, security agreement, mortgage or deed of trust, bond, debenture, note, securitization agreement or other evidence of indebtedness or similar obligation of any Credit Party or under any indenture or other
instrument under which any such evidence of indebtedness or similar obligation has been issued or by which it is governed (other than one for which a default in the performance thereof or whose breach is elsewhere in this Section 7.1
specifically dealt with) and the expiration of the applicable period of 

  

 54 

 
grace, if any, specified in such evidence of indebtedness, indenture or other instrument; or 
  
 (l) any Guarantor shall attempt to reject, terminate or rescind its Guaranty or shall contest in any manner
the validity, binding nature or enforceability of its Guaranty; or 
  
 (m) any Reportable Event, which the Bank determines in good faith may constitute grounds for the termination of any Pension Plan or for the appointment by the appropriate United States District Court of a trustee to
administer any Pension Plan, shall have occurred and be continuing thirty (30) days after written notice to such effect shall have been given to the Co-Borrowers by the Bank; or a trustee shall have been appointed by an appropriate United States
District Court to administer any Pension Plan; or the Pension Benefit Guaranty Corporation shall have instituted proceedings to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan; or the Co-Borrowers, any other Credit
Party or any of their respective ERISA Affiliates shall have filed for a distress termination of any Pension Plan under Title IV of ERISA; or the Co-Borrowers, any other Credit Party or any of their respective ERISA Affiliates shall have failed to
make any quarterly contribution required with respect to any Pension Plan under Section 412(m) of the Code, which the Bank determines in good faith may by itself, or in combination with any such failures that the Bank may determine are likely to
occur in the future, result in the imposition of a lien on the Co-Borrowers’ or any other Credit Party’s assets in favor of the Pension Plan; or any withdrawal, partial withdrawal, reorganization or other event occurs with respect to a
Multiemployer Plan which results or could reasonably be expected to result in a material liability of the Co-Borrowers or any other Credit Party to the Multiemployer Plan under Title IV of ERISA; or 
  
 (n) any Credit Party shall liquidate, dissolve, terminate or
suspend its business operations or otherwise fail to operate its business in the ordinary course, or shall sell all or substantially all of its assets, unless such Credit Party is merged into, or its business becomes part of, another Credit Party;
or 
  
 (o) any Change of Control shall occur; or

  
 (p) the Co-Borrowers shall fail to deliver
the Mortgages on the earlier of (i) the execution of the GE Capital Loan Agreement or (ii) forty-five (45) days after the Closing Date. 
  
 Section 7.2. Rights and Remedies. Upon the occurrence of an Event of Default or at any time thereafter until such Event of Default is cured or
waived to the written satisfaction of the Bank, the Bank may exercise any or all of the following rights and remedies: 
  
 (a) by notice to the Co-Borrowers, declare the Revolving Commitment to be terminated, whereupon the same shall forthwith terminate;

  

 55 

 (b) by notice to the Co-Borrowers, declare the entire unpaid principal amount of the
Note, all interest accrued and unpaid thereon, and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Note, all such accrued 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 Co-Borrowers; 
  
 (c) by notice to the Co-Borrowers, demand payment by the Co-Borrowers of funds with respect to each outstanding Letter of Credit in an
amount sufficient to fund a cash escrow equal to the Letter of Credit Amount, which cash escrow will beheld by the Bank (or its designee), without interest, as a pledged cash collateral account and applied to reimbursement of all drafts submitted
under outstanding Letters of Credit; 
  
 (d)
without notice to the Co-Borrowers and without further action, apply any and all monies owing by the Bank to any Credit Party to the payment of the Note, including interest accrued thereon, and of all other Obligations then owing by the Co-Borrowers
hereunder; 
  
 (e) exercise and enforce the
rights and remedies available to the Bank under any Loan Document; 
  
 (f) exercise any other rights and remedies available to the Bank by law or agreement. 
  
 Notwithstanding the foregoing, upon the occurrence of an Event of Default described in Section 7.1(e), (f) or (i) the entire unpaid principal amount of the Note,
all interest accrued and unpaid thereon, and all other, amounts payable under this Agreement shall be immediately due and payable without presentment, demand, protest or notice of any kind. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 Section 8.1. No Waiver; Cumulative Remedies. No failure or delay on the part of the Bank in exercising any right, power or remedy under the Loan
Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy under the Loan Documents. The
remedies provided in the Loan Documents are cumulative and not exclusive of any remedies provided by law. 
  
 Section 8.2. Amendments, Requested Waivers, Etc. No amendment, modification, termination or waiver of any provision of any Loan Document or consent
to any departure by the Co-Borrowers therefrom shall be effective unless the same shall be in writing and signed by the Bank. Any waiver or consent given hereunder shall be effective only in the specific instance and for the specific purpose for
which given. No notice to or 

  

 56 

 
demand on the Co-Borrowers in any case shall entitle the Co-Borrowers to any other or further notice or demand in similar or other circumstances. 

 
 Section 8.3. Addresses for Notices, Etc. Except as otherwise
expressly provided herein, all notices, requests, demands and other communications provided for under the Loan Documents shall be in writing and mailed or delivered to the applicable parties at their respective addresses set forth on the execution
pages hereto, or as to each party, at such other address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section 8.3. All such notices, requests, demands and other
communications, when delivered, shall be effective upon actual delivery and when mailed, shall be effective one Business Day after the date sent by nationally recognized overnight mail courier or delivery service, addressed as aforesaid, except that
notices or requests to the Bank pursuant to any of the provisions of Article II shall not be effective until received by the Bank. 
  
 Section 8.4. Costs and Expenses. The Co-Borrowers will reimburse the Bank for (a) any and all reasonable out-of-pocket costs and expenses,
including without limitation reasonable attorneys’ fees and expenses (including allocated costs of in-house counsel), lien and UCC searches, title and recording expenses and other similar expenses, environmental audit, appraisal and other
underwriting related expenses, paid or incurred by the Bank in connection with the preparation, filing or recording of the Loan Documents, and the transactions contemplated hereby (which amount shall be paid on the Closing Date or as soon thereafter
as demand is made therefor) and the negotiation of any amendments, modifications or extensions to or of any of the foregoing documents, instruments or agreements and the preparation of any and all documents reasonably necessary or desirable to
effect such amendments, modifications or extensions, (b) customary transaction fees of the Bank incurred in connection with the loans contemplated hereby, (c) reasonable fees in connection with any audits or inspections by the Bank of any Collateral
or the operations or business of the Co-Borrowers or any other Credit Party, whether conducted at the Co-Borrowers’ premises, any other Credit Party’s premises or at the Bank’s premises (subject to the limitations imposed in
Section 2.12(c)), and (d) any and ail other reasonable out-of-pocket costs and expenses incurred by the Bank in connection with any of the transactions contemplated hereby. In addition to the foregoing, the Co-Borrowers will reimburse the
Bank for any and all reasonable costs and expenses incurred by the Bank in connection with the enforcement of any of the rights or remedies of the Bank under any of the Loan Documents or under applicable law, whether or not suit is filed with
respect thereto. 
  
 Section 8.5. Indemnity. In addition to
the payment of expenses pursuant to Section 8.4, the Co-Borrowers agree to indemnify, defend and hold harmless the Bank and each of its respective participants, parent corporations, subsidiary corporations, affiliated corporations, successor
corporations, and all present and future officers, directors, employees (the “Indemnitees”), from and against (i) any claim, loss or damage to which any Indemnitee may be subjected as a result of any past, present or future existence, use,
handling, storage, transportation or disposal of any Hazardous Substance by any Credit Party or with respect to any property owned, leased or controlled by any Credit Party, (ii) any and all transfer taxes, 

  

 57 

 
documentary taxes, assessments or charges made by any governmental authority (excluding income or gross receipts taxes) by reason of the execution and
delivery of this Agreement and the other Loan Documents or the making of any Advances and (iii) any and all liabilities, losses, damages, penalties, judgments, suits, claims, costs and expenses of any kind or nature whatsoever (including, without
limitation, the reasonable fees and disbursements of counsel) in connection with any investigative, administrative or judicial proceedings, whether or not such Indemnitee shall be designated a party thereto, which may be imposed on, incurred by or
asserted against such Indemnitee, in any manner relating to or arising out of or in connection with, the making of any Advances or entering into this Agreement or any other Loan Documents or the use or intended use of the proceeds of the Advances,
excepting, however, from the foregoing any such liabilities, losses, damages, penalties, judgments, suits, claims, costs and expenses resulting from the willful misconduct or gross negligence of any Indemnitee. If any investigative, judicial or
administrative proceeding arising from any of the foregoing is brought against any Indemnitee, upon request of such Indemnitee, the Co-Borrowers, or counsel designated by the Co-Borrowers and satisfactory to the Indemnitee, will resist and defend
such action, suit or proceeding to the extent and in the manner directed by the Indemnitee, at the Co-Borrowers’ sole cost and expense. Each Indemnitee will use its best efforts to cooperate in the defense of any such action, suit or
proceeding. If the foregoing undertaking to indemnify, defend and hold harmless may be held to be unenforceable because it violates any law or public policy, the Co-Borrowers shall nevertheless make the maximum contribution to the payment and
satisfaction of each of the indemnified liabilities contemplated hereby which is permissible under applicable law. The obligations of the Co-Borrowers under this Section 8.5 shall survive termination of this Agreement and the discharge of the
Obligations. 
  
 Section 8.6. Execution in Counterparts.
This Agreement and other Loan Documents may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the
same instrument. 
  
 Section 8.7. Governing Law; Jurisdiction;
Waiver of Jury Trial. 
  
 (a) Governing
Law. The Loan Documents shall be governed by, and construed in accordance with, the laws of the State of Illinois (other than its conflicts of laws rules), except to the extent the law of any other jurisdiction applies as to the perfection or
enforcement of the Bank’s security interest in or lien on any Collateral and except to the extent expressly provided to the contrary in any Loan Document. 
  

(b) Jurisdiction. The Co-Borrowers hereby irrevocably submit to the jurisdiction of any state or federal court sitting in
Chicago, Illinois in any action or proceeding arising out of or relating to this Agreement or any of the other Loan Documents, and the Co-Borrowers hereby irrevocably agree that all claims in respect of such action or proceeding may be heard and
determined in such state or federal court. The Co-Borrowers hereby irrevocably waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance of such 

  

 58 

 
action or proceeding. The Co-Borrowers irrevocably consent to the service of copies of the summons and complaint and any other process which may be served in
any such action or proceeding by the mailing of copies of such process to the Co-Borrowers at their addresses specified in Section 8.3 above. The Co-Borrowers agree that a final judgment in any such action or proceeding may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Section 8.7(b) shall affect the right of the Bank to serve legal process in any other manner permitted by law or affect the right of the Bank
to bring any action or proceeding against the Co-Borrowers or their property in the courts of Other jurisdictions. 
  
 (c) WAIVER OF JURY TRIAL. THE CO-BORROWERS AND THE BANK HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED THEREUNDER. 
  
 Section 8.8. Integration; Inconsistency. This Agreement, together with the Loan Documents, comprise the final and complete integration of all prior
expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to such subject matter, superseding all prior oral or written understandings. If any
provision of a Loan Document is inconsistent with or conflicts with a comparable or similar provision appearing in this Agreement, the comparable or similar provision in this Agreement shall govern. 
  
 Section 8.9. Agreement Effectiveness. This Agreement shall become
effective upon delivery of fully executed counterparts hereof to each of the parties hereto. 
  
 Section 8.10. Advice from Independent Counsel. The parties hereto understand that this Agreement is a legally binding agreement that may affect such party’s rights. Each party hereto represents to the
other that it has received legal advice from counsel of its choice regarding the meaning and legal significance of this Agreement and that it is satisfied with its legal counsel and the advice received from it. 
  
 Section 8.11. Judicial Interpretation. Should any provision of this
Agreement require judicial interpretation, it is agreed that a court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against any person by reason of the rule of construction
that a document is to be construed more strictly against the person who itself through its agent prepared the same, it being agreed that all parties hereto have participated in the preparation of this Agreement. 
  
 Section 8.12. Binding Effect; No Assignment by Co-Borrowers. This
Agreement shall be binding upon and inure to the benefit of the Co-Borrowers, the Bank and their respective successors and assigns; provided, except, that the Co-Borrowers may not assign any or all of its rights or obligations hereunder or
any of its interest herein without the prior written consent of the Bank. 
  

 59 

 Section 8.13. Severability of Provisions. Any provision of this Agreement which is prohibited or
unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. 
  
 Section 8.14. Headings. Article and Section headings in this Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose. 
  
 Section 8.15 Counterparts. This Agreement and the other Loan Documents may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of
this Agreement or such other Loan Document, as the case may be, taken together, shall constitute but one and the same instrument. 
  
 [Signature Page Follows] 
  

 60 

 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. 
  

											
	 Address:
	 	 	 	JOHNSTOWN AMERICA CORPORATION
				
	 17 Johns Street
	 	 	 	By	 	 /s/ Glen T. Karan

	 Johnstown, PA 15907
	 	 	 	 	 	 Name:
	 	 Glen T. Karan

	 Attn: Glen T. Karan
	 	 	 	 	 	 Title:
	 	 Vice President-Finance and

	 Telecopy No.: (814) 533-5010
	 	 	 	 	 	 	 	 Administration, Secretary

	 	 	 	 	 	 	 	 	 and Treasurer

			
	 Address:
	 	 	 	FREIGHT CAR SERVICES, INC.
				
	 2313 Cannon Street
	 	 	 	By	 	 /s/ Glen T. Karan

	 Danville, IL 61832
	 	 	 	 	 	 Name:
	 	 Glen T. Karan

	 Attn: Glen T. Karan
	 	 	 	 	 	 Title:
	 	 Vice President-Finance and

	 Telecopy No.: (814) 533-5010
	 	 	 	 	 	 	 	 Administration, Secretary

	 	 	 	 	 	 	 	 	 and Treasurer

			
	 Address:
	 	 	 	JAIX LEASING COMPANY
				
	 Two North Riverside Plaza
	 	 	 	By	 	 /s/ Glen T. Karan

	 Suite 1250
	 	 	 	 	 	 Name:
	 	 Glen T. Karan

	 Chicago, IL 60606
	 	 	 	 	 	 Title:
	 	 Vice President-Finance and

	 Attn: Glen T. Karan
	 	 	 	 	 	 	 	 Administration, Secretary

	 Telecopy No.: (814) 533-5010
	 	 	 	 	 	 	 	 and Treasurer

			
	 Address:
	 	 	 	JAC OPERATIONS, INC.
				
	 17 Johns Street
	 	 	 	By	 	 /s/ Glen T. Karan

	 Johnstown, PA 15907
	 	 	 	 	 	 Name:
	 	 Glen T. Karan

	 Attn: Glen T. Karan
	 	 	 	 	 	 Title:
	 	 Vice President-Finance and

	 Telecopy No.: (814) 533-5010
	 	 	 	 	 	 	 	 Administration, Secretary

	 	 	 	 	 	 	 	 	 and Treasurer

  
 [Signature Page 1 of
2 to Johnstown Credit Agreement] 
  

											
	 Address:
	 	 	 	 LASALLE BANK NATIONAL ASSOCIATION, as Bank

				
	 135 South LaSalle Street
	 	 	 	By	 	 /s/ Robert W. Hart

	 Chicago, Illinois 60603
	 	 	 	 	 	 Name:
	 	 Robert W. Hart

	 Attn: Robert W. Hart, First Vice President
	 	 	 	 	 	 Title:
	 	 First Vice President

	 Telecopy No. (312) 904-2903
	 	 	 	 	 	 	 	 

  
 [Signature Page 2 of
2 to Johnstown Credit Agreement]Credit Agreement, dated as of October 17, 2003

 Exhibit 10.19 
  
 This CREDIT AGREEMENT (this “Agreement”), dated as of October 17, 2003 among JOHNSTOWN AMERICA CORPORATION,
a Delaware corporation (“JAC”), FREIGHT CAR SERVICES, INC., a Delaware corporation (“FCS”), JAC OPERATIONS; INC., a Delaware corporation (“JAC Operations”), and JAIX LEASING COMPANY, a Delaware
corporation (“JAIX”) (JAC, FCS, JAC Operations and JAIX are sometimes collectively referred to herein as the “Borrowers” and each individually as a “Borrower”); the other Credit Parties signatory
hereto; GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual capacity, “GE Capital”), for itself, as Lender, and as Agent for Lenders, and the other Lenders signatory hereto from time to time. 

 
 RECITALS 
  
 WHEREAS, Borrowers have requested that Lenders extend credit facilities to
Borrowers of up to Nine Million Dollars ($9,000,000.00) in the aggregate for the purpose of making the Redemption Distribution, for Holdings to make the Redemption with the proceeds thereof and to pay certain transaction expenses; and for these
purposes, Lenders are willing to make certain loans and other extensions of credit to Borrowers of up to such amount upon the terms and conditions set forth herein; and 
  
 WHEREAS, Borrowers have agreed to secure all of their obligations under the Loan Documents by granting to Agent, for the
benefit of Agent and Lenders, a security interest in and lien upon of their existing and after-acquired personal and real property subject to the Intercreditor Agreement; and 
  
 WHEREAS, JAC Holdings International, Inc., a Delaware corporation (“Holdings”), JAC Intermedco, Inc.,
(“Intermedco”), and JAC Patent Company, a Delaware corporation (“JAC Patent Company”) are willing to guarantee all of the Obligations of Borrowers to Agent and Lenders under the Loan Documents and, in the
case of Holdings and Intermedco, to pledge to Agent, for the benefit of Agent and Lenders, all of the Stock of Borrowers to secure such guaranty and the Obligations, and in the case of JAC Patent Company, to pledge to Agent, for the benefit of Agent
and Lenders, a security interest in patents owned by JAC Patent Company to secure such guaranty and the Obligations; and 
  
 WHEREAS, capitalized terms used in this Agreement shall have the meanings ascribed to them in Annex A and, for purposes of this Agreement and the
other Loan Documents, the rules of construction set forth in Annex A shall govern. All Annexes, Disclosure Schedules, Exhibits and other attachments (collectively, “Appendices”) hereto, or expressly identified to this Agreement, are
incorporated herein by reference, and taken together with this Agreement, shall constitute but a single agreement. These Recitals shall be construed as part of the Agreement. 
  

 1 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and for
other good and valuable consideration, the parties hereto agree as follows: 
  
 1. AMOUNT AND TERMS OF CREDIT 
  
 1.1 Credit Facilities. 
  
 (a)
Term Loan. 
  
 (i) Subject to the terms and
conditions hereof, each Term Lender agrees to make a term loan (collectively, the “Term Loan”) on the Closing Date to each Borrower in the amount of the applicable Term Lender’s Term Loan Commitment. The obligations of each
Term Lender hereunder shall be several and not joint. Each such Term Loan shall be evidenced by a promissory note substantially in the form of Exhibit 1.1(a) (each a “Term Note” and collectively the “Term
Notes”), and, except as provided in Section 1.12, all of the Borrowers shall jointly execute and deliver the Term Notes to the applicable Term Lender. Each Term Note shall represent the obligation of Borrowers to pay the applicable Term
Lender’s Term Loan Commitment, together with interest thereon as prescribed in Section 1.5. The aggregate principal amount of the Term Loan advanced to Borrowers shall be the primary obligation of Borrowers and shall also be guaranteed
by all other Credit Parties pursuant to Section 12. 
  
 (ii) Borrowers shall repay the Term Loan in fifty-four (54) consecutive equal monthly installments on the first day of each month commencing, on November 1, 2003 in the amount of $166,666.67. The final installment due on March 31, 2008
shall be in the amount of $ 166,666.67 or, if different, the remaining principal balance of the Term Loan. 
  
 (iii) Notwithstanding Section 1.1(a)(ii), the aggregate outstanding principal balance of the Term Loan shall be due and payable in full in
immediately available funds on the Commitment Termination Date, if not sooner paid in full. No payment with respect to the Term Loan may be reborrowed. 
  
 (iv) Each payment of principal with respect to the Term Loan shall be paid to Agent for the ratable benefit of each Term Lender making a
Term Loan, ratably in proportion to each such Term Lender’s respective Term Loan Commitment. 
  
 (b) Reliance on Notices; Appointment of Borrower Representative. Each Borrower hereby designates JAC as its representative and
agent on its behalf for the purposes of giving instructions with respect to the disbursement of the proceeds of the Loans, selecting interest rate options, giving and receiving all other notices and consents hereunder or under any of the other Loan
Documents and taking all other actions (including in respect of compliance with covenants) on behalf of any Borrower or Borrowers under the Loan Documents. Borrower Representative hereby accepts such appointment. Agent and each Lender may regard any
notice or other communication pursuant to any Loan Document from Borrower Representative as a notice or communication from all Borrowers, and may give any notice or communication required or permitted to be given to any Borrower or Borrowers
hereunder to Borrower 

  

 2 

 
Representative on behalf of such Borrower or Borrowers. Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement and
undertaking made on its behalf by Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to the same extent as if the same had been made directly by
such Borrower. 
  
 1.2 Intentionally Omitted. 

 
 1.3 Prepayments. 
  
 (a) Voluntary Prepayments. Borrowers may at any time
on at least 5 days’ prior written notice by Borrower Representative to Agent, voluntarily prepay all or part of the Term Loan, provided that any such prepayments shall be in a minimum amount of $1,000,000 and integral multiples of
$250,000 in excess of such amount. Any voluntary prepayment must be accompanied by the payment of the Fee required by Section 1.9(c), if any, plus the payment of any LIBOR funding breakage costs in accordance with Section 1.13(b). Any
partial prepayment, regardless of any designation made by the Borrower Representative or any Borrower, shall be applied to the scheduled principal payments of the Term Loan in the inverse order of maturity. 
  
 (b) Mandatory Prepayments. 
  
 (i) Immediately upon receipt by any Credit Party of proceeds
of any asset disposition (but excluding proceeds of asset dispositions permitted by Section 6.8 (a)) or any sale of Stock of any Subsidiary of any Credit Party, Borrowers shall prepay the Loans in an amount equal to all such proceeds, net of
(A) commissions and other reasonable and customary transaction costs, fees and expenses properly attributable to such transaction and payable by Borrowers in connection therewith (in each case, paid to non-Affiliates), (B) transfer taxes, (C)
amounts payable to holders of senior Liens (to the extent such Liens constitute Permitted Encumbrances hereunder), if any, and (D) an appropriate reserve for income taxes in accordance with GAAP in connection therewith (proceeds of asset
distributions which are net of items referenced in subclauses (A) through (D) are sometimes herein referred to as “Net Proceeds”). Any such prepayment shall be applied in accordance with Section 1.3(c).

  
 (ii) Immediately upon receipt by any Credit
Party (A) at any time any Default or Event of Default exists, of proceeds of any disposition of Used Railcar Inventory, Borrowers shall prepay the Loans in an amount equal to all Net Proceeds from such disposition, and (B) so long as no Default or
Event of Default exists, of proceeds of any disposition of Listed Cars, Borrowers shall prepay the Loans in an amount equal to fifty percent (50%) of all Net Proceeds from such disposition. Except as set forth in Section 1.3(b)(ii)(B) above,
Borrowers shall have no obligation to make any mandatory prepayment of Net Proceeds from the disposition of Used Railcar Inventory when no Default or Event of Default exists. 
  
 (iii) If Holdings or any Borrower issues Stock for cash, no later than 

  

 3 

 
the Business Day following the date of receipt of the proceeds thereof, all Borrowers (in the case of an issuance by Holdings) or the issuing Borrower shall
prepay the Loans in an amount equal to all such proceeds, net of underwriting discounts and commissions and other reasonable costs paid to non-Affiliates in connection therewith. Any such prepayment shall be applied in accordance with Section
1.3(c). 
  
 (iv) If any Credit Party borrows
any money or issues any debt securities, other than debt permitted under Section 6.3(a) below, no later than the Business Day following the date of receipt of the proceeds thereof, Borrowers shall prepay the Loans in an amount equal to all
such proceeds, net of reasonable costs paid to non-Affiliates in connection therewith. Any such prepayment shall be applied in accordance with Section 1.3(c). 
  
 (c) Application of Certain Mandatory Prepayments. Any prepayments made by any Borrower pursuant to
Section 1.3(b)(i),(ii), (iii) or (iv) shall be applied as follows: first, to Fees and reimbursable expenses of Agent then due and payable pursuant to any of the Loan Documents; second, to interest then due and payable on the Term Loan;
and third, to prepay the scheduled principal installments of the Term Loan in inverse order of maturity, until the same has been prepaid in full. 
  
 (d) Application of Prepayments from Insurance and Condemnation Proceeds. Prepayments from insurance or condemnation proceeds in
accordance with Section 5.4(c) and the Mortgage(s), respectively, shall be applied in accordance with Section 1.3(c) above. 
  
 (e) No Implied Consent. Nothing in this Section 1.3 shall be construed to constitute Agent’s or any Lender’s
consent to any transaction that is not permitted by other provisions of this Agreement or the other Loan Documents. 
  
 1.4 Use of Proceeds. 
  
 Borrowers shall utilize the proceeds of the Loans solely to make the Redemption Distribution and for Holdings to make the Redemption. Disclosure
Schedule (1.4) contains a description of Borrowers’ sources and uses of funds as of the Closing Date, including Loans to be made or incurred on that date, and a funds flow memorandum detailing how funds from each source are to be
transferred to particular uses. 
  
 1.5 Interest and Applicable
Margins. 
  
 (a) Borrowers shall pay interest
to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the applicable LIBOR Rate plus the Applicable Term Loan LIBOR Margin per annum.

  
 As of the Closing Date and all times
thereafter, the Applicable Term Loan LIBOR Margin is 4.50%. 
  

 4 

 (b) If any payment on any Loan becomes due and payable on a day other than a Business
Day, the maturity thereof will be extended to the next succeeding Business Day and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. 
  
 (c) All computations of Fees calculated on a per annum basis
and interest shall be made by Agent on the basis of a 360-day year, in each case for the actual number of days occurring in the period for which such interest and Fees are payable. Each determination by Agent of an interest rate and Fees hereunder
shall be final, binding and conclusive on Borrowers, absent manifest error. 
  
 (d) So long as an Event of Default has occurred and is continuing under Section 8.1 (a), (i) or (j) or so long as any other Event of Default has occurred and is continuing and at the election of Agent (or upon
the written request of Requisite Lenders) confirmed by written notice from Agent to Borrower Representative, the interest rates applicable to the Loans shall be increased by two percentage points (2%) per annum above the rates of interest or the
rate of such Fees otherwise applicable hereunder (“Default Rate”), and all outstanding Obligations shall bear interest at the Default Rate applicable to such Obligations. Interest at the Default Rate shall accrue from the initial
date of such Event of Default until that Default or Event of Default is cured or waived and shall be payable upon demand. 
  
 (e) Notwithstanding anything to the contrary set forth in this Section 1.5, if a court of competent jurisdiction determines in a
final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the “Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be so exceeded, the rate of
interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, however, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, Borrowers shall continue to pay interest
hereunder at the Maximum Lawful Rate until such time as the total interest received by Agent, on behalf of Lenders, is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of
this paragraph) the interest rate payable since the Closing Date as otherwise provided in this Agreement. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Sections 1.5(a) through (d),
unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by any Lender pursuant to the terms hereof exceed the amount that such
Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily
rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section 1.5(e), a court of competent jurisdiction shall finally determine
that a Lender has received interest hereunder in excess of the Maximum Lawful Rate, Agent shall, to the extent permitted by applicable law, promptly apply such excess in the order specified in Section 1.11 and thereafter shall refund any
excess to Borrowers or as a court of competent jurisdiction may otherwise order. 
  

 5 

 1.6 Intentionally Omitted. 
  
 1.7 Intentionally Omitted. 
  

1.8 Cash Management Systems. 
  
 On or prior to the Closing Date, Borrowers will establish and will maintain all of its deposit accounts with Revolving Credit Lender (other than payroll
accounts, the Borrowers’ petty cash accounts at First National Bank, account #148988, Old National Bank, account #101606645 and JAC Patent’s petty cash account at Wilmington Trust, account #2815-3554) and grant to Agent a perfected
security interest in such deposit accounts subject to the Intercreditor Agreement (other than payroll accounts, the Borrowers’ petty cash accounts at First National Bank, account #148988 and at Old National Bank, account #101606645 and JAC
Patent’s petty cash account at Wilmington Trust, account #2815-3554). 
  
 1.9 Fees. 
  
 (a) Borrowers shall pay to GE Capital, individually, the Fees specified in that certain fee letter of even date herewith among Borrowers and GE Capital (the “GE Capital Fee Letter”), at the times specified for payment
therein. 
  
 (b) If Borrowers pay after
acceleration or prepay all or any portion of the Term Loan, whether voluntarily or involuntarily and whether before or after acceleration of the Obligations, or if any of the Commitments are otherwise terminated, Borrowers shall pay to Agent, for
the benefit of Lenders as liquidated damages and compensation for the costs of being prepared to make funds available hereunder an amount equal to the Applicable Percentage (as defined below) multiplied by the sum of the principal amount of the Term
Loan paid after acceleration or prepaid. As used herein, the term “Applicable Percentage” shall mean (x) three percent (3%), in the case of a prepayment on or prior to the first anniversary of the Closing Date, (y) two percent (2%), in the
case of a prepayment after the first anniversary of the Closing Date but on or prior to the second anniversary thereof, and (z) one percent (1%), in the case of a prepayment after the second anniversary of the Closing Date but on or prior to the
third anniversary thereof. The Credit Parties agree that the Applicable Percentages are a reasonable calculation of Lenders’ lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early
termination of the Commitments. Notwithstanding the foregoing, no prepayment fee shall be payable by Borrowers (A) in the event Borrowers prepay all of the Term Loan due to the refinance of the Loans by GE Capital, or (B) upon a mandatory prepayment
made pursuant to Sections 1.3(b) or 1.16(c); provided that, in the case of prepayments made pursuant to Sections 1.3(b)(i),(ii) (iii) or (iv), the transaction giving rise to the applicable prepayment is expressly permitted under Section 6. 
  
 1.10 Receipt of Payments. 
  
 Borrowers shall make each payment under this Agreement not later than 2:00
p.m. (New York time) on the day when due in immediately available funds in Dollars to the Collection Account. For purposes of computing interest and Fees as of any date, all payments shall be 

  

 6 

 
deemed received on the first Business Day on which immediately available funds therefor are received in the Collection Account prior to 2:00 p.m. New York
time. Payments received after 2:00 p.m. New York time on any Business Day or on a day that is not a Business Day shall be deemed to have been received on the following Business Day. 
  
 1.11 Application and Allocation of Payments. 
  
 So long as no Default or Event of Default has occurred and is continuing, (i) payments matching specific scheduled payments
then due shall be applied to those scheduled payments; (ii) voluntary prepayments shall be applied as determined by Borrower Representative, subject to the provisions of Section 1.3(a); and (iii) mandatory prepayments shall be applied as set
forth in Sections 1.3(c) and 1.3(d). All payments and prepayments applied to a particular Loan shall be applied ratably to the portion thereof held by each Lender as determined by its Pro Rata Share. As to any other payment, and as to
all payments made when a Default or Event of Default has occurred and is continuing or following the Commitment Termination Date, each Borrower hereby irrevocably waives the right to direct the application of any and all payments received from or on
behalf of Borrowers, and each Borrower hereby irrevocably agrees that Agent shall have the continuing exclusive right to apply any and all such payments against the Obligations of Borrowers as Agent may deem advisable notwithstanding any previous
entry by Agent in the Loan Account or any other books and records. 
  
 1.12 Loan Account and Accounting. 
  
 Agent shall
maintain a loan account (the “Loan Account”) on its books to record: the Term Loan, all payments made by Borrowers, and all other debits and credits as provided in this Agreement with respect to the Loans or any other Obligations.
All entries in the Loan Account shall be made in accordance with Agent’s customary accounting practices as in effect from time to time. The balance in the Loan Account, as recorded on Agent’s most recent printout or other written
statement, shall, absent manifest error, be presumptive evidence of the amounts due and owing to Agent and Lenders by Borrowers; provided that any failure to so record or any error in so recording shall not limit or otherwise affect any
Borrower’s duty to pay the Obligations. Agent shall render to Borrower Representative a monthly accounting of transactions with respect to the Loans setting forth the balance of the Loan Account as to each Borrower for the immediately preceding
month. Unless Borrower Representative notifies Agent in writing of any objection to any such accounting (specifically describing the basis for such objection), within 30 days after the date thereof, each and every such accounting shall (absent
manifest error) be deemed final, binding and conclusive on Borrowers in all respects as to all matters reflected therein. Only those items expressly objected to in such notice shall be deemed to be disputed by Borrowers. Notwithstanding any
provision herein contained to the contrary, any Lender may elect (which election may be revoked) to dispense with the issuance of Notes to that Lender and may rely on the Loan Account as evidence of the amount of Obligations from time to time owing
to it. 
  

 7 

 1.13 Indemnity. 
  
 (a) Each Credit Party that is a signatory hereto shall jointly and severally indemnify and hold harmless
each of Agent, Lenders and their respective Affiliates, and each such Person’s respective officers, directors, employees, attorneys, agents and representatives (each, an “Indemnified Person”), from and against any and all
suits, actions, proceedings, claims, damages, losses, liabilities and expenses (including reasonable attorneys’ fees and disbursements and other costs of investigation or defense, including those incurred upon any appeal) that may be instituted
or asserted against or incurred by any such Indemnified Person as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents and the administration of such credit, and in connection with or
arising out of the transactions contemplated hereunder and thereunder and any actions or failures to act in connection therewith, including any and all Environmental Liabilities and legal costs and expenses arising out of or incurred in connection
with disputes between or among any parties to any of the Loan Documents (collectively, “Indemnified Liabilities”); provided, that no such Credit Party shall be liable for any indemnification to an Indemnified Person to the
extent that any such suit, action, proceeding, claim, damage, loss, liability or expense results from that Indemnified Person’s gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent
jurisdiction. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR
INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

  
 (b) To induce Lenders to provide the LIBOR
Rate option on the terms provided herein, if (i) any LIBOR Loans are repaid in whole or in part prior to the first day of any calendar month (whether that repayment is made pursuant to any provision of this Agreement or any other Loan Document or
occurs as a result of acceleration, by operation of law or otherwise); (ii) any Borrower shall default in payment when due of the principal amount of or interest on any LIBOR Loan; (iii) any Borrower shall refuse to accept any borrowing of, or shall
request a termination of, any borrowing of, LIBOR Loans after Borrower Representative has given notice requesting the same in accordance herewith; or (iv) any Borrower shall fail to make any prepayment of a LIBOR Loan after Borrower Representative
has given a notice thereof in accordance herewith, then Borrowers shall jointly and severally indemnify and hold harmless each Lender from and against all losses, costs and expenses resulting from or arising from any of the foregoing. Such
indemnification shall include any loss (including loss of margin) or expense arising from the reemployment of funds obtained by it or from fees payable to terminate deposits from which such funds were obtained. For the purpose of calculating amounts
payable to a Lender under this subsection, each Lender shall be deemed to have actually funded its relevant LIBOR Loan through the purchase of a deposit bearing interest at the LIBOR Rate in an amount equal to the amount of that LIBOR Loan and
having a one month maturity; provided, that each Lender may fund each of its LIBOR Loans in any manner it sees fit, and the foregoing assumption shall be utilized only for the calculation of 

  

 8 

 
amounts payable under this subsection. This covenant shall survive the termination of this Agreement and the payment of the Notes and all other amounts
payable hereunder. As promptly as practicable under the circumstances, each Lender shall provide Borrower Representative with its written calculation of all amounts payable pursuant to this Section 1.13(b), and such calculation shall be
binding on the parties hereto unless Borrower Representative shall object in writing within 10 Business Days of receipt thereof, specifying the basis for such objection in detail. 
  
 1.14 Access. 
  
 Each Credit Party that is a party hereto shall, during normal business hours, from time to time upon one Business Day’s prior notice as frequently as
Agent reasonably determines to be appropriate: (a) provide Agent and each Lender and any of its or their officers, employees and agents access to its properties, facilities, advisors and employees (including officers) of each Credit Party and to the
Collateral, and so long as no Default or Event of Default exists, Agent agrees to use reasonable efforts to minimize disruptions to any such Credit Party, (b) permit Agent and each Lender, and any of its or their officers, employees and agents, to
inspect, audit and make extracts from any Credit Party’s books and records, and (c) permit Agent and each Lender, and its or their officers, employees and agents, to inspect, review, evaluate and make test verifications and counts of the
Accounts, Inventory and other Collateral of any Credit Party. If a Default or Event of Default has occurred and is continuing or if access is necessary to preserve or protect the Collateral as determined by Agent, each such Credit Party shall
provide such access to Agent and to each Lender at all times and without advance notice. Furthermore, so long as any Event of Default has occurred and is continuing, Borrowers shall provide Agent and each Lender with access to their suppliers and
customers. Each Credit Party shall make available to Agent and each Lender and its or their counsel, as quickly as is possible under the circumstances, originals or copies of all books and records that Agent may reasonably request. Each Credit Party
shall deliver any document or instrument necessary for Agent and each Lender, as it or they may from time to time reasonably request, to obtain records from any service bureau or other Person that maintains records for such Credit Party, and shall
maintain duplicate records or supporting documentation on media, including computer tapes and discs owned by such Credit Party. 
  
 1.15 Taxes. 
  
 (a) Any and all payments by each Borrower hereunder (including any payments made pursuant to Section 12) or under the Notes shall
be made, in accordance with this Section 1.15, free and clear of and without deduction for any and all present or future Taxes. If any Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder
(including any sum payable pursuant to Section 12) or under the Notes, (i) the sum payable shall be increased as much as shall be necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section 1.15) Agent or Lenders, as applicable, receive an amount equal to the sum they would have received had no such deductions been made, (ii) such Borrower shall make such deductions, and (iii) such Borrower shall pay
the full amount deducted to the relevant taxing or other authority in accordance with applicable law. Within 30 days after the date of any payment of Taxes, Borrower Representative 

  

 9 

 
shall furnish to Agent the original or a certified copy of a receipt evidencing payment thereof. Agent and Lenders shall not be obligated to return or refund
any amounts received pursuant to this Section. 
  
 (b) Each Credit Party that is a signatory hereto shall jointly and severally indemnify and, within 10 days of demand therefore, pay Agent and each Lender for the full amount of Taxes (including any Taxes imposed by any jurisdiction on
amounts payable under this Section 1.15) paid by Agent or such Lender, as appropriate, and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes were correctly or
legally asserted. 
  
 (c) Each Lender organized
under the laws of a jurisdiction outside the United States (a “Foreign Lender”) as to which payments to be made under this Agreement or under the Notes are exempt from United States withholding tax under an applicable statute or tax
treaty shall provide to Borrower Representative and Agent a properly completed and executed IRS Form W-8ECI or Form W-8BEN or other applicable form, certificate or document prescribed by the IRS or the United States certifying as to such Foreign
Lender’s entitlement to such exemption (a “Certificate of Exemption”). Any foreign Person that seeks to become a Lender under this Agreement shall provide a Certificate of Exemption to Borrower Representative and Agent prior to
becoming a Lender hereunder. No foreign Person may become a Lender hereunder if such Person fails to deliver a Certificate of Exemption in advance of becoming a Lender. 
  
 1.16 Capital Adequacy; Increased Costs; Illegality. 
  
 (a) If any Lender shall have determined that any law, treaty, governmental (or quasi-governmental) rule,
regulation, guideline or order regarding capital adequacy, reserve requirements or similar requirements or compliance by any Lender with any request or directive regarding capital adequacy, reserve requirements or similar requirements (whether or
not having the force of law), in each case, adopted after the Closing Date, from any central bank or other Governmental Authority increases or would have the effect of increasing the amount of capital, reserves or other funds required to be
maintained by such Lender and thereby reducing the rate of return on such Lender’s capital as a consequence of its obligations hereunder, then Borrowers shall from time to time upon demand by such Lender (with a copy of such demand to Agent)
pay to Agent, for the account of such Lender, additional amounts sufficient to compensate such Lender for such reduction. A certificate as to the amount of that reduction and showing the basis of the computation thereof submitted by such Lender to
Borrower Representative and to Agent shall, absent manifest error, be final, conclusive and binding for all purposes. 
  
 (b) If, due to either (i) the introduction of or any change in any law or regulation (or any change in the interpretation thereof) 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), in each case adopted after the Closing Date, there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining any Loan, then Borrowers shall from time to time, upon demand by such Lender (with a copy of such demand to Agent), pay to Agent for the account of such 

  

 10 

 
Lender additional amounts sufficient to compensate such Lender for such increased cost. A certificate as to the amount of such increased cost, submitted to
Borrower Representative and to Agent by such Lender, shall be conclusive and binding on Borrowers for all purposes, absent manifest error. Each Lender agrees that, as promptly as practicable after it becomes aware of any circumstances referred to
above which would result in any such increased cost, the affected Lender shall, to the extent not inconsistent with such Lender’s internal policies of general application, use reasonable commercial efforts to minimize costs and expenses
incurred by it and payable to it by Borrowers pursuant to this Section 1.16(b). 
  
 (c) Notwithstanding anything to the contrary contained herein, if the introduction of or any change in any law or regulation (or any
change in the interpretation thereof) shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for any Lender to agree to make or to make or to continue to fund or maintain any LIBOR Loan, then,
unless that Lender is able to make or to continue to fund or to maintain such LIBOR Loan at another branch or office of that Lender without, in that Lender’s opinion, adversely affecting it or its Loans or the income obtained therefrom, on
notice thereof and demand therefor by such Lender to Borrower Representative through Agent, (i) the obligation of such Lender to agree to make or to make or to continue to fund or maintain LIBOR Loans shall terminate and (ii) each Borrower shall
forthwith prepay in full all outstanding LIBOR Loans owing by such Borrower to such Lender, together with interest accrued thereon. 
  
 (d) Within 15 days after receipt by Borrower Representative of written notice and demand from any Lender (an “Affected
Lender”) for payment of additional amounts or increased costs as provided in Sections 1.15(a), 1.16(a) or 1.16(b), Borrower Representative may, at its option, notify Agent and such Affected Lender of its intention to replace the
Affected Lender. So long as no Default or Event of Default has occurred and is continuing, Borrower Representative, with the consent of Agent, may obtain, at Borrowers’ expense, a replacement Lender (“Replacement Lender”) for
the Affected Lender, which Replacement Lender must be reasonably satisfactory to Agent. If Borrowers obtain a Replacement Lender within 90 days following notice of their intention to do so, the Affected Lender must sell and assign its Loans and
Commitments to such Replacement Lender for an amount equal to the principal balance of all Loans held by the Affected Lender and all accrued interest and Fees with respect thereto through the date of such sale; provided, that Borrowers shall
have reimbursed such Affected Lender for the additional amounts or increased costs that it is entitled to receive under this Agreement through the date of such sale and assignment. Notwithstanding the foregoing, Borrowers shall not have the right to
obtain a Replacement Lender if the Affected Lender rescinds its demand for increased costs or additional amounts within 15 days following its receipt of Borrowers’ notice of intention to replace such Affected Lender. Furthermore, if Borrowers
give a notice of intention to replace and do not so replace such Affected Lender within 90 days thereafter, Borrowers” rights under this Section 1.16(d) shall terminate and Borrowers shall promptly pay all increased costs or additional
amounts demanded by such Affected Lender pursuant to Sections 1.15(a), 1.16(a) and l.l6(b). 
  

 11 

 1.17 Single Loan. 
  
 Borrowers agree that all Loans to each Borrower and all of the other Obligations of each Borrower arising under this
Agreement and the other Loan Documents shall constitute one general obligation of that Borrower secured, until the Termination Date, by all of the Collateral. 
  

2. CONDITIONS PRECEDENT 
  
 2.1 Conditions to the Initial Loans. 
  
 No Lender shall be obligated to make any Loan on the Closing Date, or to take, fulfill, or perform any other action hereunder, until the following
conditions have been satisfied or provided for in a manner satisfactory to Agent, or waived in writing by Agent: 
  
 (a) Credit Agreement; Loan Documents. This Agreement or counterparts hereof shall have been duly executed by, and delivered to,
Borrowers, each other Credit Party, Agent and Lenders; and Agent shall have received such documents, instruments, agreements and legal opinions as Agent shall reasonably request in connection with the transactions contemplated by this Agreement and
the other Loan Documents, including all those listed in the Closing Checklist attached hereto as Annex D, each in form and substance reasonably satisfactory to Agent. 
  
 (b) Approvals. Agent shall have received (i) satisfactory evidence that the Credit Parties have
obtained all required consents and approvals of all Persons including all requisite Governmental Authorities, to the execution, delivery and performance of this Agreement and the other Loan Documents and the consummation of the Related Transactions
or (ii) an officer’s certificate in form and substance reasonably satisfactory to Agent affirming that no such consents or approvals are required. 
  
 (c) Revolving Credit Loan; Opening Availability. The Borrowers and the Revolving Credit Lender shall have executed and delivered
the Revolving Credit Loan Documents, all conditions to the funding of the Revolving Credit Loan shall have been satisfied and Borrowers shall have not less that $3,000,000 in availability under the Revolving Credit Loan. 
  
 (d) Payment of Fees. Borrowers shall have paid the
Fees required to be paid on the Closing Date in the respective amounts specified in Section 1.9 (including the Fees specified in the GE Capital Fee Letter), and shall have reimbursed Agent for all fees, costs and expenses of closing presented
as of the Closing Date. 
  
 (e) Capital
Structure: Other Debt. The capital structure of each Credit Party and the terms and conditions of all Debt of each Credit Party shall be acceptable to Agent in its sole discretion. 
  
 (f) Due Diligence. Agent shall have completed its business and legal due diligence, including a roll
forward of its previous Collateral audit, appraisals, environmental audits and reports with results reasonably satisfactory to Agent. 
  

 12 

 (g) Consummation of Related Transactions. Agent shall have received fully executed
copies of the Related Transactions Documents, each of which shall be in form and substance reasonably satisfactory to Agent and its counsel. The Related Transactions shall have been consummated in accordance Related Transactions Documents.

  
 2.2 Intentionally Omitted. 
  
 3. REPRESENTATIONS AND WARRANTIES 
  
 To induce Lenders to make the Loans, the Credit Parties executing this
Agreement, jointly and severally, make the following representations and warranties to Agent and each Lender with respect to all Credit Parties, each and all of which shall survive the execution and delivery of this Agreement. 
  
 3.1 Corporate Existence; Compliance with Law. 
  
 (a) Each Credit Party (i) is a corporation, limited
liability company or limited partnership duly organized, validly existing and in good standing under the laws of its respective jurisdiction of incorporation or organization set forth in Disclosure Schedule (3.1); (ii) is duly qualified to
conduct business and is in good standing in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a Material Adverse
Effect; (iii) has the requisite power and authority and the legal right to own, pledge, mortgage or otherwise encumber and operate its properties, to lease the property it operates under lease and to conduct its business as now, heretofore and
proposed to be conducted; (iv) subject to specific representations regarding Environmental Laws, has all licenses, permits, consents or approvals from or by, and has made all filings with, and has given all notices to, all Governmental Authorities
having jurisdiction, to the extent required for such ownership, operation and conduct; and (v) is in compliance with its charter and bylaws or partnership or operating agreement, as applicable. 
  
 (b) Subject to specific representations set forth herein
regarding ERISA, Environmental Laws, tax and other laws, each Credit Party is and will remain in compliance with all applicable provisions of all laws and regulations, including, without limitation, all applicable Bank Secrecy Act
(“BSA”) laws, regulations and government guidances on BSA compliance and on the prevention and detection of money laundering violations. Without, in any way limiting the foregoing, each Credit Party has taken and will take all
necessary steps to ensure that no person who owns a controlling interest in or otherwise controls such Credit Party is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person designated under Section 1(b), (c), or (d) of
Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Order. 
  

 13 

 3.2 Executive Offices, Collateral Locations, FEIN. 
  
 As of the Closing Date, the current location of each Credit Party’s
chief executive office and the warehouses and premises at which any Collateral (other than Collateral listed and described on Disclosure Schedule (3.26)), is located are set forth in Disclosure Schedule (3.2), and none of such
locations has changed within the 12 months preceding the Closing Date. In addition, Disclosure Schedule (3.2) lists the federal employer identification number of each Credit Party. 
  
 3.3 Corporate Power, Authorization, Enforceable Obligations. 
  
 The execution, delivery and performance by each Credit Party of the Loan
Documents to which it is a party and the creation of all Liens provided for therein: (a) are within such Person’s power; (b) have been duly authorized by all necessary corporate, limited liability company or limited partnership action; (c) do
not contravene any provision of such Person’s charter, bylaws or partnership or operating agreement as applicable; (d) do not violate any law or regulation, or any order or decree of any court or Governmental Authority; (e) do not conflict with
or result in the breach or termination of, constitute a default under or accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Person is a
party or by which such Person or any of its property is bound; (f) do not result in the creation or imposition of any Lien upon any of the property of such Person other than those in favor of Agent, on behalf of itself and Lenders, pursuant to the
Loan Documents; and (g) do not require the consent or approval of any Governmental Authority or any other Person, except those referred to in Section 2.1(c), all of which will have been duly obtained, made or complied with prior to the
Closing Date. Each of the Loan Documents has been duly executed and delivered by each Credit Party that is a party thereto and each such Loan Document constitutes a legal, valid and binding obligation of such Credit Party enforceable against it in
accordance with its terms. 
  
 3.4 Financial Statements and
Projections. 
  
 Except for the Projections and the Fair
Salable Balance Sheet, all Financial Statements concerning Holdings and its Subsidiaries that are referred to below have been prepared in accordance with GAAP consistently applied throughout the periods covered (except as disclosed therein and
except, with respect to unaudited Financial Statements, for the absence of footnotes and normal year-end audit adjustments) and present fairly in all material respects the financial position of the Persons covered thereby as at the dates thereof and
the results of their operations and cash flows for the periods then ended. 
  
 (a) Financial Statements. The following Financial Statements have been delivered on the date hereof: 
  
 (i) The audited consolidated and consolidating balance sheets at December 31, 2001 and 2002 and the related statements of income and cash
flows of the Consolidated Group for the Fiscal Years then ended, certified by Deloitte & Touche, LLP. 
  
 (ii) The unaudited balance sheet(s) at June 30, 2003 and the related statement(s) of income and cash flows of the Consolidated Group for
the two Fiscal Quarters then ended. 
  

 14 

 (b) Pro Forma. The Pro Forma delivered on the date hereof was prepared by
Borrowers giving pro forma effect to the Related Transactions, was based on the unaudited consolidated and consolidating balance sheets of the Consolidated Group dated as of June 30, 2003, and was prepared in accordance with GAAP, with only such
adjustments thereto as would be required in accordance with GAAP. 
  
 (c) Projections. The Projections delivered on the date hereof have been
prepared by Borrowers in light of the past operations of their businesses, but including future payments of known contingent liabilities reflected on the Fair Salable Balance Sheet, and reflect projections for the Fiscal Quarter ending December 31,
2002 for the five (5) year period beginning on January 1, 2003 on a month-by-month basis for the first year and on a year-by-year basis thereafter. The Projections are based upon estimates and assumptions stated therein, all of which Borrowers
believe to be reasonable and fair in light of current conditions and current facts known to Borrowers and, as of the Closing Date, reflect Borrowers’ good faith and reasonable estimates of the future financial performance of Borrowers and of
the other information projected therein for the period set forth therein. 
  
 3.5 Material Adverse Effect. 
  
 Between December 31, 2002 and the Closing Date: (a) no Credit Party has incurred any obligations, contingent or noncontingent liabilities, liabilities for Charges, long-term leases or forward or long-term commitments that are not reflected
in the Pro Forma and that, alone or in the aggregate, could reasonably be expected to have a Material Adverse Effect, (b) no contract, lease or other agreement or instrument has been entered into by any Credit Party or has become binding upon any
Credit Party’s assets and no law or regulation applicable to any Credit Party has been adopted that has had or could reasonably be expected to have a Material Adverse Effect, and (c) no Credit Party is in default and to the best of
Borrowers’ knowledge no third party is in default under any material contract, lease or other agreement or instrument, that alone or in the aggregate could reasonably be expected to have a Material Adverse Effect. Between December 31, 2002 and
the Closing Date no event has occurred, that alone or together with other events, could reasonably be expected to have a Material Adverse Effect. 
  
 3.6 Ownership of Property; Liens. 
  
 As of the Closing Date, the real estate (“Real Estate”) listed in Disclosure Schedule (3.6) constitutes all of the real property
owned, leased, subleased, or used by any Credit Party. Each Credit Party owns good and marketable fee simple title to all of its owned Real Estate, and valid and marketable leasehold interests in all of its leased Real Estate, all as described on
Disclosure Schedule (3.6), and copies of all such leases or a summary of terms thereof reasonably satisfactory to Agent have been delivered to Agent. Disclosure Schedule (3.6) further describes any Real Estate with respect to
which any Credit Party is a lessor, sublessor or assignor as of the Closing Date. Each Credit Party also has good and marketable title to, or valid leasehold interests in, all of its personal property and assets. As of the Closing Date, none of the
properties and assets of any Credit Party are subject to any Liens other than Permitted Encumbrances, and 

  

 15 

 
there are no facts, circumstances or conditions known to any Credit Party that may result in any Liens (including Liens arising under Environmental Laws)
other than Permitted Encumbrances. Each Credit Party has received all deeds, assignments, waivers, consents, nondisturbance and attornment or similar agreements, bills of sale and other documents, and has duly effected all recordings, filings and
other actions necessary to establish, protect and perfect such Credit Party’s right, title and interest in and to all such Real Estate and other properties and assets. Disclosure Schedule (3.6) also describes any purchase options, rights
of first refusal or other similar contractual rights pertaining to any Real Estate. As of the Closing Date, no portion of any Credit Party’s Real Estate has suffered any material damage by fire or other casualty loss that has not heretofore
been repaired and restored in all material respects to its original condition or otherwise remedied. As of the Closing Date, all material permits required to have been issued or appropriate to enable the Real Estate to be lawfully occupied and used
for all of the purposes for which it is currently occupied and used have been lawfully issued and are in full force and effect. 
  
 3.7 Labor Matters. 
  
 As of the Closing Date (a) except as set forth in Disclosure Schedule (3.7), no strikes, labor actions of any type (including without limitation,
slow downs, work stoppages or disruptions) or other labor disputes against any Credit Party are pending or, to any Credit Party’s knowledge, threatened; (b) hours worked by and payment made to employees of each Credit Party comply with the Fair
Labor Standards Act and each other federal, state, local or foreign law applicable to such matters; (c) all payments due from any Credit Party for employee health and welfare insurance have been paid or accrued as a liability on the books of such
Credit Party; (d) except as set forth in Disclosure Schedule (3.7), no Credit Party is a party to or bound by any collective bargaining agreement, management agreement, consulting agreement, employment agreement, bonus, restricted stock,
stock option, or stock appreciation plan or agreement or any similar plan, agreement or arrangement (and true and complete copies of any agreements described on Disclosure Schedule (3.7) have been delivered to Agent); (e) there is no
organizing activity involving any Credit Party pending or, to any Credit Party’s knowledge, threatened by any labor union or group of employees; (f) there are no representation proceedings pending or, to any Credit Party’s knowledge,
threatened with the National Labor Relations Board, and no labor organization or group of employees of any Credit Party has made a pending demand for recognition; and (g) except as set forth in Disclosure Schedule (3.7), there are no material
complaints or charges against any Credit Party pending or, to the knowledge of any Credit Party, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the
employment or termination of employment by any Credit Party of any individual. 
  
 3.8 Ventures, Subsidiaries and Affiliates; Outstanding Stock and Debt. 
  
 Except as set forth in Disclosure Schedule (3.8), as of the Closing Date, no Credit Party has any Subsidiaries, is engaged in any joint venture or
partnership with any other Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Credit Party is owned by each of the Stockholders and in the amounts set forth in Disclosure Schedule (3.8). Except as
set forth in Disclosure Schedule (3.8), there are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which any Credit Party may be 

  

 16 

 
required to issue, sell, repurchase or redeem any of its Stock or other equity securities or any Stock or other equity securities of its Subsidiaries. All
outstanding Debt and Guaranteed Debt of each Credit Party as of the Closing Date (except for the Obligations) is described in Section 6.3 (including Disclosure Schedule (6.3)). None of the Credit Parties other than Borrowers has any
assets (except Stock of their Subsidiaries) or any Debt or Guaranteed Debt (except the Obligations). 
  
 3.9 Government Regulation. 
  
 No Credit Party 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. No Credit Party is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, or any other federal or
state statute that restricts or limits its ability to incur Debt or to perform its obligations hereunder. The making of the Loans by Lenders to Borrowers, the application of the proceeds thereof and repayment thereof and the consummation of the
Related Transactions will not violate any provision of any such statute or any rule, regulation or order issued by the Securities and Exchange Commission. 
  
 3.10 Margin Regulations. 
  
 No Credit Party is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” any “margin stock” as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect (such securities being referred to herein as
“Margin Stock”). No Credit Party owns any Margin Stock, and none of the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly or indirectly, for the purpose of purchasing or carrying any
Margin Stock, for the purpose of reducing or retiring any Debt that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any of the Loans or other extensions of credit under this Agreement to be
considered a “purpose credit” within the meaning of Regulations T, U or X of the Federal Reserve Board. No Credit Party will take or permit to be taken any action that might cause any Loan Document to violate any regulation of the Federal
Reserve Board. 
  
 3.11 Taxes. 
  
 All tax returns, reports and statements, including information returns,
required by any Governmental Authority to be filed by any Credit Party have been filed with the appropriate Governmental Authority and all Charges have been paid prior to the date on which any fine, penalty, interest or late charge may be added
thereto for nonpayment thereof (or any such fine, penalty, interest, late charge or loss has been paid), excluding Charges or other amounts being contested in accordance with Section 5.2(b). Proper and accurate amounts have been withheld by
each Credit Party from its respective employees for all periods in full and complete compliance with all applicable federal, state, local and foreign laws and such withholdings have been timely paid to the respective Governmental Authorities.
Disclosure Schedule (3.11) sets forth as of the Closing Date those taxable years for which any Credit Party’s tax returns are currently being audited by the IRS or any other applicable Governmental Authority, and any 

  

 17 

 
assessments or threatened assessments in connection with such audit, or otherwise currently outstanding. Except as described in Disclosure Schedule
(3.11), no Credit Party has executed or filed with the IRS or any other Governmental Authority any agreement or other document extending, or having the effect of extending, the period for assessment or collection of any Charges. None of the
Credit Parties and their respective predecessors are liable for any Charges: (a) under any agreement (including any tax sharing agreements) or (b) to each Credit Party’s knowledge, as a transferee. As of the Closing Date, no Credit Party has
agreed or been requested to make any adjustment under IRC Section 481(a), by reason of a change in accounting method or otherwise, which would have a Material Adverse Effect. 
  
 3.12 ERISA. 
  
 (a) Disclosure Schedule (3.12) lists (i) all ERISA Affiliates and (ii) all Plans and separately identifies all Pension Plans,
including Title IV Plans, Multiemployer Plans, ESOPs and Welfare Plans, including all Retiree Welfare Plans. Copies of all such listed Plans, together with a copy of the latest IRS/DOL 5500-series form for each such Plan, have been delivered to
Agent. Except with respect to Multiemployer Plans, each Qualified Plan has been determined by the IRS to qualify under Section 401 of the IRC, the trusts created thereunder have been determined to be exempt from tax under the provisions of Section
501 of the IRC, and nothing has occurred that would cause the loss of such qualification or tax-exempt status. Each Plan is in compliance with the applicable provisions of ERISA and the IRC, including the timely filing of all reports required under
the IRC or ERISA, including the statement required by 29 CFR Section 2520.104-23. Neither any Credit Party nor ERISA Affiliate has failed to make any contribution or pay any amount due as required by either Section 412 of the IRC or Section 302 of
ERISA or the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has engaged in a “prohibited transaction,” as defined in Section 406 of ERISA and Section 4975 of the IRC, in connection with any Plan, that would subject
any Credit Party to a material tax on prohibited transactions imposed by Section 502(i) of ERISA or Section 4975 of the IRC. 
  
 (b) Except as set forth in Disclosure Schedule (3.12): (i) no Title IV Plan has any Unfunded Pension Liability; (ii) no ERISA Event
or event described in Section 4062(e) of ERISA with respect to any Title IV Plan has occurred or is reasonably expected to occur; (iii) there are no pending, or to the knowledge of any Credit Party, threatened claims (other than claims for benefits
in the normal course), sanctions, actions or lawsuits, asserted or instituted against any Plan or any Person as fiduciary or sponsor of any Plan; (iv) no Credit Party or ERISA Affiliate has incurred or reasonably expects to incur any liability as a
result of a complete or partial withdrawal from a Multiemployer Plan; (v) within the last five years no Title IV Plan of any Credit Party or ERISA Affiliate has been terminated, whether or not in a “standard termination” as that term is
used in Section 4041(b)(l) of ERISA, nor has any Title IV Plan of any Credit Party or any ERISA Affiliate (determined at any time within the last five years) with Unfunded Pension Liabilities been transferred outside of the “controlled
group” (within the meaning of Section 4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate (determined at such time); (vi) except in the case of any ESOP, Stock of all Credit Parties and their ERISA Affiliates makes up, in the
aggregate, no more than 10% of fair market value of 

  

 18 

 
the assets of any Plan measured on the basis of fair market value as of the latest valuation date of any Plan; and (vii) no liability under any Title IV Plan
has been satisfied with the purchase of a contract from an insurance company that is not rated AAA by the Standard & Poor’s Corporation or an equivalent rating by another nationally recognized rating agency. 
  
 3.13 No Litigation. 
  
 No action, claim, lawsuit, demand, investigation or proceeding is now pending
or, to the knowledge of any Credit Party, threatened against any Credit Party, before any Governmental Authority or before any arbitrator or panel of arbitrators (collectively, “Litigation”), (a) that challenges any Credit
Party’s right or power to enter into or perform any of its obligations under the Loan Documents to which it is a party, or the validity or enforceability of any Loan Document or any action taken thereunder, or (b) that has a reasonable risk of
being determined adversely to any Credit Party and that, if so determined, could be reasonably be expected to have a Material Adverse Effect. Except as set forth on Disclosure Schedule (3.13), as of the Closing Date there is no Litigation
pending or, to any Credit Party’s knowledge, threatened, that seeks damages in excess of $100,000 or injunctive relief against, or alleges criminal misconduct of, any Credit Party. 
  
 3.14 Brokers. 
  
 No broker or finder brought about the obtaining, making or closing of the Loans or the Related Transactions, and no Credit Party or Affiliate thereof has
any obligation to any Person in respect of any finder’s or brokerage fees in connection therewith. 
  
 3.15 Intellectual Property. 
  
 As of the Closing Date, each Credit Party owns or has rights to use all Intellectual Property necessary to continue to conduct its business as now or
heretofore conducted by it or proposed to be conducted by it, and each Patent, Trademark and License is listed, together with application or registration numbers, as applicable, in Disclosure Schedule (3.15). Each Credit Party conducts its
business and affairs without infringement of or interference with any Intellectual Property of any other Person in any material respect. Except as set forth in Disclosure Schedule (3.15), no Credit Party is aware of any infringement claim by any
other Person with respect to any Intellectual Property. 
  
 3.16
Full Disclosure. 
  
 No information contained in this
Agreement, any of the other Loan Documents, any Projections, Financial Statements or Collateral Reports or other written reports from time to time delivered hereunder or any written statement furnished by or on behalf of any Credit Party to Agent or
any Lender pursuant to the terms of this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading in light
of the circumstances under which they were made. The Liens granted to Agent, on behalf of itself and Lenders, pursuant to the Collateral Documents will at all times be fully perfected first priority Liens in and to the Collateral described therein,
subject, as to priority, only to Permitted Encumbrances. 
  

 19 

 3.17 Environmental Matters. 
  
 (a) Except as set forth in Disclosure Schedule (3.17), as of the Closing Date: (i) the Real Estate is
free of contamination from any Hazardous Material except for such contamination that would not adversely impact the value or marketability of such Real Estate and that would not result in Environmental Liabilities that could reasonably be expected
to exceed $50,000; (ii) no Credit Party has caused or suffered to occur any Release of Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate; (iii) the Credit Parties are and have been in compliance with all
Environmental Laws, except for such noncompliance that would not result in Environmental Liabilities which could reasonably be expected to exceed $50,000; (iv) the Credit Parties have obtained, and are in compliance with, all Environmental Permits
required by Environmental Laws for the operations of their respective businesses as presently conducted or as proposed to be conducted, except where the failure to so obtain or comply with such Environmental Permits would not result in Environmental
Liabilities that could reasonably be expected to exceed $50,000, and all such Environmental Permits are valid, uncontested and in good standing; (v) no Credit Party is involved in operations or knows of any facts, circumstances or conditions,
including any Releases of Hazardous Materials, that are likely to result in any Environmental Liabilities of such Credit Party which could reasonably be expected to exceed $50,000, and no Credit Party has permitted any current or former tenant or
occupant of the Real Estate to engage in any such operations; (vi) there is no Litigation arising under or related to any Environmental Laws, Environmental Permits or Hazardous Material that seeks damages, penalties, fines, costs or expenses in
excess of $50,000 or injunctive relief against, or that alleges criminal misconduct by, any Credit Party; (vii) no notice has been received by any Credit Party identifying it as a “potentially responsible party” or requesting information
under CERCLA or analogous state statutes, and to the knowledge of the Credit Parties, there are no facts, circumstances or conditions that may result in any Credit Party being identified as a “potentially responsible party” under CERCLA or
analogous state statutes; and (viii) the Credit Parties have provided to Agent copies of all existing environmental reports, reviews and audits and all written information pertaining to actual or potential Environmental Liabilities, in each case
relating to any Credit Party. 
  
 (b) Each Credit
Party hereby acknowledges and agrees that Agent (i) is not now, and has not ever been, in control of any of the Real Estate or any Credit Party’s affairs, and (ii) does not have the capacity through the provisions of the Loan Documents or
otherwise to influence any Credit Party’s conduct with respect to the ownership, operation or management of any of its Real Estate or compliance with Environmental Laws or Environmental Permits. 
  
 3.18 Insurance. 
  
 Disclosure Schedule (3.18) lists all insurance policies of any nature
maintained, as of the Closing Date, for current occurrences by each Credit Party, as well as a summary of the terms of each such policy. 
  

 20 

 3.19 Deposit and Disbursement Accounts. 
  
 Disclosure Schedule (3.19) lists all banks and other financial
institutions at which any Credit Party maintains deposit or other accounts as of the Closing Date, including any Disbursement Accounts, and such Schedule correctly identifies the name, address and telephone number of each depository, the name in
which the account is held, a description of the purpose of the account, and the complete account number therefor. 
  
 3.20 Government Contracts. 
  
 Except as set forth in Disclosure Schedule (3.20), as of the Closing Date, no Credit Party is a party to any contract or agreement with any
Governmental Authority and no Credit Party’s Accounts are subject to the Federal Assignment of Claims Act (31 U.S.C. Section 3727) or any similar state or local law. 
  
 3.21 Customer and Trade Relations. 
  
 As of the Closing Date, there exists no actual or, to the knowledge of any Credit Party, threatened termination or
cancellation of, or any material adverse modification or change in: the business relationship of any Credit Party with any customer or group of customers whose purchases during the preceding 12 months caused them to be ranked among the ten largest
customers of such Credit Party; or the business relationship of any Credit Party with any supplier material to its operations. 
  
 3.22 Agreements and Other Documents. 
  
 As of the Closing Date, each Credit Party has provided to Agent or its counsel, on behalf of Lenders, accurate and complete copies (or summaries) of all
of the following agreements or documents to which it is subject and each of which is listed in Disclosure Schedule (3.22): supply agreements and purchase agreements not terminable by such Credit Party within 60 days following written notice
issued by such Credit Party and involving transactions in excess of $1,000,000 per annum; leases of Equipment having a remaining term of one year or longer and requiring aggregate rental and other payments in excess of $500,000 per annum; leases of
railcars and other contractual obligations with respect to used railcars; licenses and permits held by the Credit Parties, the absence of which could be reasonably likely to have a Material Adverse Effect; instruments and documents evidencing any
Debt or Guaranteed Debt of such Credit Party and any Lien granted by such Credit Party with respect thereto; and instruments and agreements evidencing the issuance of any equity securities, warrants, rights or options to purchase equity securities
of such Credit Party. 
  
 3.23 Solvency. 
  
 Both before and after giving effect to (a) the Loans to be made or incurred
on the Closing Date or such other date as Loans requested hereunder are made or incurred, (b) the disbursement of the proceeds of such Loans pursuant to the instructions of Borrower Representative; (c) the Redemption Distribution and the Redemption;
and (d) the payment and accrual of all transaction costs in connection with the foregoing, each Credit Party is and will be Solvent. 
  

 21 

 3.24 Subordinated Debt. 
  
 As of the Closing Date, Borrowers have delivered to Agent a complete and correct copy of the Subordinated Notes Agreement
and the Subordinated Notes (including all schedules, exhibits, amendments, supplements, modifications, assignments and all other documents delivered pursuant thereto or in connection therewith). Holdings has the Corporate power and authority to
incur the Debt evidenced by the Subordinated Notes Agreement and the Subordinated Notes. The subordination provisions of the Subordinated Notes Agreement, Subordinated Notes and the Subordination Agreement are enforceable against the Subordinated
Note Holders, who are holders of the Subordinated Notes, by Agent and Lenders. All Obligations constitute senior indebtedness entitled to the benefits of the subordination provisions contained in the Subordinated Notes Agreement, the Subordinated
Notes and the Subordination Agreement. Borrowers acknowledge that Agent and each Lender are entering into this Agreement and are extending the Commitments in reliance upon the subordination provisions of the Subordinated Notes Agreement, the
Subordinated Notes and the Subordination Agreement and this Section 3.24. 
  
 3.25 Status of Holdings. 
  
 Prior to the Closing Date, neither Holdings nor JAC Intermedco will be engaged in any business or incurred any Debt or any other liabilities (except in connection with its corporate formation, the Related Transactions Documents, the
Subordinated Notes, the Subordinated Notes Agreement and this Agreement). 
  
 3.26 Railcar Matters. 
  
 (a) Certain railcars which comprise a portion of Borrowers Used Railcar Inventory are listed on Disclosure Schedule (3.26) and are herein referred to as the “Listed Cars”. Each Listed Car is
being stored at the locations specifically identified on Disclosure Schedule (3.26). 
  
 (b) Prior to the storage of any railcar comprising a part of the Used Railcar Inventory, all product, commodity and cargo has been removed
from each such railcar and each such railcar has been cleaned. 
  
 (c) Each of the railcars comprising a part of the Used Railcar Inventory has been maintained in accordance with Applicable Law and with the American Association of Railroads (“AAR”) Interchange Rules,
and is qualified for interchange service in the United States. 
  
 (d) The Borrowers have obtained and maintained adequate property insurance with respect to the Used Railcar Inventory. 
  
 4. FINANCIAL STATEMENTS AND INFORMATION 
  
 4.1 Reports and Notices. 
  
 (a) Each Credit Party executing this Agreement hereby agrees that from and after the Closing Date and until the Termination Date, it shall
deliver to Agent or to Agent and Lenders, as required, the Financial Statements, notices, Projections and other information at the times, to the Persons and in the manner set forth in Annex E. 
  

 22 

 (b) Each Credit Party executing this Agreement hereby agrees that, from and after the
Closing Date and until the Termination Date, it shall deliver to Agent or to Agent and Lenders, as required, the various Collateral Reports at the times, to the Persons and in the manner set forth in Annex F. 
  
 (c) Each Credit Party executing this Agreement hereby agrees
that, from and after the Closing Date and until the Termination Date, it shall deliver to Agent or to Agent, the various reports and financial statements required to be delivered to Revolving Credit Lender under the Revolving Credit Agreement, at
such times and in such manner as required therein. 
  
 4.2
Communication with Accountants. 
  
 Each Credit Party
executing this Agreement authorizes Agent, so long as an Event of Default has occurred and is continuing, to communicate directly with its independent certified public accountants, including Deloitte & Touche, LLP, and, so long as an Event of
Default has occurred and is continuing, authorizes and, at Agent’s request, shall instruct those accountants and advisors to disclose and make available to Agent and each Lender any and all Financial Statements and other supporting financial
documents, schedules and information relating to any Credit Party (including copies of any issued management letters) with respect to the business, financial condition and other affairs of any Credit Party. 
  
 5. AFFIRMATIVE COVENANTS 
  
 Each Credit Party executing this Credit Agreement jointly and severally
agrees as to all Credit Parties that from and after the date hereof and until the Termination Date: 
  
 5.1 Maintenance of Existence and Conduct of Business. 
  
 Each Credit Party shall: do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and its rights
and franchises; continue to conduct its business as permitted hereunder; at all times maintain, preserve and protect all of its assets and properties used or useful in the conduct of its business, and keep the same in good repair, working order and
condition in all material respects (taking into consideration ordinary wear and tear) and from time to time make, or cause to be made, all necessary or appropriate repairs, replacements and improvements thereto consistent with industry practices;
and transact business only in such corporate and trade names as are set forth in Disclosure Schedule (5.1). 
  
 5.2 Payment of Charges. 
  
 (a) Subject to Section 5.2(b), each Credit Party shall pay and discharge or cause to be paid and discharged promptly all Charges
payable by it, including (i) Charges imposed upon it, its income and profits, or any of its property (real, personal or mixed) and all Charges with respect to tax, social security and unemployment withholding with respect to its employees, (ii)
lawful claims for labor, materials, supplies and services or otherwise, and (iii) all storage or rental charges payable to warehousemen or bailees, in each case, before any thereof shall become past due. 
  

 23 

 (b) Each Credit Party may in good faith contest, by appropriate proceedings, the validity
or amount of any Charges, Taxes or claims described in Section 5.2(a); provided, that (i) adequate reserves with respect to such contest are maintained on the books of such Credit Party, in accordance with GAAP; (ii) no Lien shall be
imposed to secure payment of such Charges (other than payments to warehousemen and/or bailees) that is superior to any of the Liens securing the Obligations and such contest is maintained and prosecuted continuously and with diligence and operates
to suspend collection or enforcement of such Charges; (iii) none of the Collateral becomes subject to forfeiture or loss as a result of such contest; (iv) such Credit Party shall promptly pay or discharge such contested Charges, Taxes or claims and
all additional charges, interest, penalties and expenses, if any, and shall deliver to Agent evidence reasonably acceptable to Agent of such compliance, payment or discharge, if such contest is terminated or discontinued adversely to such Credit
Party or the conditions set forth in this Section 5.2(b) are no longer met; and (v) Agent has not advised Borrowers in writing that Agent reasonably believes that nonpayment or non discharge thereof could have or result in a Material Adverse
Effect. 
  
 5.3 Books and Records. 
  
 Each Credit Party shall keep adequate books and records with respect to its
business activities in which proper entries, reflecting all financial transactions, are made in accordance with GAAP and on a basis consistent with the Financial Statements referenced in Section 3.4. 
  
 5.4 Insurance; Damage to or Destruction of Collateral. 
  
 (a) The Credit Parties shall, at their sole cost and
expense, maintain the policies of insurance described on Disclosure Schedule (3.18) as in effect on the date hereof or otherwise in form and amounts and with insurers reasonably acceptable to Agent. Such policies of insurance (or the loss
payable and additional insured endorsements delivered to Agent) shall contain provisions pursuant to which the insurer agrees to provide 30 days prior written notice to Agent in the event of any non-renewal, cancellation or amendment of any such
insurance policy. If any Credit Party at any time or times hereafter shall fail to obtain or maintain any of the policies of insurance required above, or to pay all premiums relating thereto, Agent may at any time or times thereafter obtain and
maintain such policies of insurance and pay such premiums and take any other action with respect thereto that Agent deems advisable. Agent shall have no obligation to obtain insurance for any Credit Party or pay any premiums therefor. By doing so,
Agent shall not be deemed to have waived any Default or Event of Default arising from any Credit Party’s failure to maintain such insurance or pay any premiums therefor. All sums so disbursed, including reasonable attorneys’ fees, court
costs and other charges related thereto, shall be payable on demand by Borrowers to Agent and shall be additional Obligations hereunder secured by the Collateral. 
  
 (b) Agent reserves the right at any time upon any change in any Credit Party’s risk profile (including
any change in the product mix maintained by any Credit Party or 

  

 24 

 
any laws affecting the potential liability of such Credit Party) to require additional forms and limits of insurance to, in Agent’s opinion, adequately
protect both Agent’s and Lender’s interests in all or any portion of the Collateral and to ensure that each Credit Party is protected by insurance in amounts and with coverage customary for its industry. If reasonably requested by Agent,
each Credit Party shall deliver to Agent from time to time a report of a reputable insurance broker, reasonably satisfactory to Agent, with respect to its insurance policies. 
  
 (c) Each Credit Party shall deliver to Agent, in form and substance reasonably satisfactory to Agent,
endorsements to (i) all “All Risk” and business interruption insurance naming Agent, on behalf of itself and Lenders, as loss payee, and (ii) all general liability and other liability policies naming Agent, on behalf of itself and Lenders,
as additional insured. Each Credit Party irrevocably makes, constitutes and appoints Agent (and all officers, employees or agents designated by Agent), so long as any Default or Event of Default has occurred and is continuing or the anticipated
insurance proceeds exceed $3,000,000 as such Credit Party’s true and lawful agent and attorney-in-fact for the purpose of making, settling and adjusting claims under such “All Risk” policies of insurance, endorsing the name of such
Credit Party on any check or other item of payment for the proceeds of such “All Risk” policies of insurance and for making all determinations and decisions with respect to such “All Risk” policies of insurance. Agent shall have
no duty to exercise any rights or powers granted to it pursuant to the foregoing power-of-attorney. Borrower Representative shall promptly notify Agent of any loss, damage, or destruction to the Collateral in the amount of $250,000 or more, whether
or not covered by insurance. After deducting from such proceeds the expenses, if any, incurred by Agent in the collection or handling thereof, Agent may, at its option, apply such proceeds to the reduction of the Obligations in accordance with
Section 1.3(d); provided that in the case of insurance proceeds pertaining to any Credit Party that is not a Borrower, such insurance proceeds shall be applied ratably to all of the Loans owing by each Borrower, or permit or require
the applicable Credit Party to use such money, or any part thereof, to replace, repair, restore or rebuild the Collateral in a diligent and expeditious manner with materials and workmanship of substantially the same quality as existed before the
loss, damage or destruction. Notwithstanding the foregoing, if the casualty giving rise to such insurance proceeds could not reasonably be expected to have a Material Adverse Effect and such insurance proceeds do not exceed $250,000 in the
aggregate, Agent shall permit the applicable Credit Party to replace, restore, repair or rebuild the property; provided that if such Credit Party shall not have completed or entered into binding agreements to complete such replacement,
restoration, repair or rebuilding within 180 days of such casualty, Agent may apply such insurance proceeds to the Obligations in accordance with Section 1.3(d); provided, further, that in the case of insurance proceeds pertaining to
any Credit Party that is not a Borrower, such insurance proceeds shall be applied ratably to all of the Loans owing by each Borrower. All insurance proceeds that are to be made available to any Borrower to replace, repair, restore or rebuild the
Collateral shall be applied by Agent to reduce the outstanding principal balance of the Term Loan in inverse order of maturity. All insurance proceeds made available to any Credit Party that is not a Borrower to replace, repair, restore or rebuild
Collateral shall be deposited in a cash collateral account. Thereafter, such funds shall be made available to that Borrower or Credit Party to provide funds to replace, 

  

 25 

 
repair, restore or rebuild the Collateral as follows: (i) Borrower Representative shall request a release from the cash collateral account be made to such
Borrower or Credit Party in the amount requested to be released and provide supporting documentation acceptable to Agent, and (ii) so long as no Default or Event of Default exists, Agent shall release funds from the cash collateral account. To the
extent not used to replace, repair, restore or rebuild the Collateral, such insurance proceeds shall be applied in accordance with Section 1.3(d); provided that in the case of insurance proceeds pertaining to any Credit Party that is
not a Borrower, such insurance proceeds shall be applied ratably to all of the Loans owing by each Borrower. 
  
 5.5 Compliance with Laws. 
  
 Each Credit Party shall comply with all federal, state, local and foreign laws and regulations applicable to it, including those relating to the
manufacturing, buying and selling of railcars, ERISA and labor matters and Environmental Laws and Environmental Permits, except to the extent that the failure to comply, individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect. 
  
 5.6 Supplemental Disclosure.

  
 From time to time as may be reasonably requested by Agent
(which request will not be made more frequently than once each year absent the occurrence and continuance of a Default or an Event of Default), the Credit Parties shall supplement each Disclosure Schedule hereto, or any representation herein or in
any other Loan Document, with respect to any matter hereafter arising that, if existing or occurring at the date of this Agreement, would have been required to be set forth or described in such Disclosure Schedule or as an exception to such
representation or that is necessary to correct any information in such Disclosure Schedule or representation which has been rendered inaccurate thereby (and, in the case of any supplements to any Disclosure Schedule, such Disclosure Schedule shall
be appropriately marked to show the changes made therein); provided that (a) no such supplement to any such Disclosure Schedule or representation shall amend, supplement or otherwise modify any Disclosure Schedule or representation
(regardless of whether such representation is deemed given under the terms of this Agreement prior to, concurrently with or following any such supplement), or be or be deemed a waiver of any Default or Event of Default resulting from the matters
disclosed therein, except as consented to by Agent and Requisite Lenders in writing, and (b) no supplement shall be required or permitted as to representations and warranties that relate solely to the Closing Date. 
  
 5.7 Intellectual Property. 
  
 Each Credit Party will conduct its business and affairs without infringement
of or interference with any Intellectual Property of any other Person in any material respect. 
  
 5.8 Environmental Matters. 
  
 Each Credit Party shall and shall cause each Person within its control to: (a) conduct its operations and keep and maintain its Real Estate in compliance with all Environmental Laws and Environmental Permits other
than noncompliance that could not reasonably be expected to have a Material Adverse Effect; (b) implement any and all investigation, remediation, removal and 

  

 26 

 
response actions that are appropriate or necessary to maintain the value and marketability of the Real Estate or to otherwise comply with Environmental Laws
and Environmental Permits pertaining to the presence, generation, treatment, storage, use, disposal, transportation or Release of any Hazardous Material on, at, in, under, above, to, from or about any of its Real Estate; (c) notify Agent promptly
after such Credit Party becomes aware of any violation of Environmental Laws or Environmental Permits or any Release on, at, in, under, above, to, from or about any Real Estate that is reasonably likely to result in Environmental Liabilities in
excess of $100,000; and (d) promptly forward to Agent a copy of any order, notice, request for information or any communication or report received by such Credit Party in connection with any such violation or Release or any other matter relating to
any Environmental Laws or Environmental Permits that could reasonably be expected to result in Environmental Liabilities in excess of $100,000, in each case whether or not the Environmental Protection Agency or any Governmental Authority has taken
or threatened any action in connection with any such violation, Release or other matter. If Agent at any time has a reasonable basis to believe that there may be a violation of any Environmental Laws or Environmental Permits by-any Credit Party or
any Environmental Liability arising thereunder, or a Release of Hazardous Materials on, at, in, under, above, to, from or about any of its Real Estate, that, in each case, could reasonably be expected to have a Material Adverse Effect, then each
Credit Party shall, upon Agent’s written request (i) cause the performance of such environmental audits including subsurface sampling of soil and groundwater, and preparation of such environmental reports, at Borrowers’ expense, as Agent
may from time to time reasonably request, which shall be conducted by reputable environmental consulting firms reasonably acceptable to Agent and shall be in form and substance reasonably acceptable to Agent, and (ii) permit Agent or its
representatives to have access to all Real Estate for the purpose of conducting such environmental audits and testing as Agent deems appropriate, including subsurface sampling of soil and groundwater. Borrowers shall reimburse Agent for the costs of
such audits and tests and the same will constitute a part of the Obligations secured hereunder. 
  
 5.9 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real Estate Purchases. 
  
 Each Credit Party shall obtain a landlord’s agreement, mortgagee
agreement or bailee letter, as applicable, from the lessor of each leased property, mortgagee of owned property or bailee with respect to any warehouse, processor or converter facility or other location where Collateral is stored or located, which
agreement or letter shall contain a waiver or subordination of all Liens or claims that the landlord, mortgagee or bailee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to
Agent. After the Closing Date, no real property or warehouse space shall be leased by any Credit Party and no Inventory shall be shipped to a processor or converter under arrangements established after the Closing Date without the prior written
consent of Agent or, unless and until a reasonably satisfactory landlord agreement or bailee letter, as appropriate, shall first have been obtained with respect to such location. Each Credit Party shall timely and fully pay and perform its
obligations under all leases and other agreements with respect to each leased location or public warehouse where any Collateral is or may be located. To the extent otherwise permitted hereunder, if any Credit Party proposes to acquire a fee
ownership interest in Real Estate after the Closing Date, it shall first provide to Agent a mortgage or deed of trust granting Agent a first priority Lien on such Real Estate, together with environmental audits, mortgage title insurance 

  

 27 

 
commitment, real property survey, local counsel opinion(s), and, if required by Agent, supplemental casualty insurance and flood insurance, and such other
documents, instruments or agreements reasonably requested by Agent, in each case, in form and substance reasonably satisfactory to Agent. 
  
 5.10 Railcar Matters. 
  
 (a) The Borrowers will pay or cause to be paid any of the fees, expenses, charges, invoices or bills arising from time to time with
respect to the Used Railcar Inventory, including without limitation any storage or AAR repair bills. 
  
 (b) The Borrowers shall maintain the Used Railcar Inventory in accordance with Applicable Law and the AAR Interchange Rules. 

 
 (c) The Borrowers shall promptly notify the Agent of (i)
any loss of or material damage to any item of Used Railcar Inventory, (ii) any refurbishment or material repair or alteration of any item of Used Railcar Inventory, (iii) any sale, transfer or lease of any item of Used Railcar Inventory and (iv) the
imposition of any lien or encumbrance on any item of Used Railcar Inventory. 
  
 (d) The Borrowers shall obtain and maintain appropriate insurance with respect to the Used Railcar Inventory. 
  
 5.11 Further Assurances. 
  
 Each Credit Party executing this Agreement agrees that it shall and shall cause each other Credit Party to, at such Credit Party’s expense and upon
request of Agent, duly execute and deliver, or cause to be duly executed and delivered, to Agent such further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of Agent to carry out
more effectively the provisions and purposes of this Agreement or any other Loan Document. 
  
 6. NEGATIVE COVENANTS 
  
 Each Credit Party executing this Agreement jointly and severally agrees as to all Credit Parties that from and after the date hereof until the Termination
Date: 
  
 6.1 Mergers, Subsidiaries, Etc. 
  
 No Credit Party shall directly or indirectly, by operation of law of
otherwise, (a) form or acquire any Subsidiary, or (b) merge with, consolidate with, acquire all or substantially all of the assets or Stock of, or otherwise combine with or acquire, any Person, except that any Borrower may merge with another
Borrower, provided that Borrower Representative shall be the survivor of any such merger to which it is a party. 
  

 28 

 6.2 Investments; Loans and Advances. 
  
 Except as otherwise expressly permitted by this Section 6, no Credit Party shall make or permit to exist any
investment in, or make, accrue or permit to exist loans or advances of money to, any Person, through the direct or indirect lending of money, holding of securities or otherwise, except that: (a) Borrowers may hold investments comprised of notes
payable, or stock or other securities issued by Account Debtors to any Borrower pursuant to negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course of business; (b) each Credit Party may
maintain its existing investments in its Subsidiaries as of the Closing Date; (c) advances among the Credit Parties permitted pursuant to Section 6.14(a); (d) so long as no Default or Event of Default has occurred and is continuing, Borrowers
may make investments, subject to Control Letters in favor of Agent for the benefit of Lenders or otherwise subject to a perfected security interest in favor of Agent for the benefit of Lenders, in (i) marketable direct obligations issued or
unconditionally guaranteed by the United States of America or any agency thereof maturing within one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and currently
having the highest rating obtainable from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (iii) certificates of deposit maturing no more than one year from the date of creation thereof issued by commercial
banks incorporated under the laws of the United States of America, each having combined capital, surplus and undivided profits of not less than $300,000,000 and having a senior unsecured rating of “A” or better by a nationally recognized
rating agency (an “A Rated Bank”), (iv) time deposits maturing no more than 30 days from the date of creation thereof with A Rated Banks and (v) mutual funds that invest solely in one or more of the investments described in clauses
(i) through (iv) above; and (e) so long as no Default or Event of Default has occurred and is continuing, Borrowers may make investments, of a type not otherwise set forth herein, which have a maturity date of not more than twelve (12) months from
the creation thereof which are offered by Revolving Credit Lender as a part of Revolving Credit Lender’s cash management system and for which Agent has received an executed Control Letter in form and content satisfactory to Agent. 

 
 6.3 Debt. 
  
 (a) No Credit Party shall create, incur, assume or permit to
exist any Debt, except (without duplication) (i) Debt secured by purchase money security interests and Capital Leases permitted in Section 6.7(c), (ii) the Loans and the other Obligations, (iii) unfunded pension fund and other employee
benefit plan obligations and liabilities to the extent they are permitted to remain unfunded under applicable law, (iv) existing Debt (including the Subordinated Debt, subject to the Subordination Agreement, and the Revolving Credit Loan, subject to
the Intercreditor Agreement) described in Disclosure Schedule (6.3) and refinancings thereof or amendments or modifications thereto that do not have the effect of increasing the principal amount thereof or interest rate thereon or changing
the amortization thereof (other than to extend the same) and that are otherwise on terms and conditions no less favorable to any Credit Party, Agent or any Lender, as determined by Agent, than the terms of the Debt being refinanced, amended or
modified, and with respect to any Subordinated Debt, is subject to a subordination agreement which contains, mutatis mutandis, the same terms and provisions as the Subordination Agreement, (v) Debt consisting of intercompany payables
and receivables evidenced between Credit Parties, provided, there shall be no intercompany payables or receivables between Holdings and any other Credit Party other than payables or receivables created 

  

 29 

 
in connection with the payment of the Redemption Distribution as permitted under Section 6.14(f); (vi) Debt incurred in connection with permitted
payments made under Section 6.14; and (vii) Debt specifically permitted under Section 6.18. 
  
 (b) No Credit Party shall, directly or indirectly, voluntarily purchase, redeem, defease or prepay any principal of, premium, if any,
interest or other amount payable in respect of any Debt, other than (i) the Obligations; (ii) the Revolving Credit Loan subject at all times to the Intercreditor Agreement; (iii) Debt secured by a Permitted Encumbrance if the asset securing such
Debt has been sold or otherwise disposed of in accordance with Sections 6.8(b); (iv) Debt permitted by Section 6.3(a)(iv) upon any refinancing thereof in accordance with Section 6.3(a)(iv); and (v) as otherwise permitted under Section 6.14.

  
 6.4 Employee Loans and Affiliate Transactions.

  
 (a) No Credit Party shall enter into or be a
party to any transaction with any other Credit Party or any Affiliate thereof except in the ordinary course of and pursuant to the reasonable requirements of such Credit Party’s business and upon fair and reasonable terms that are no less
favorable to such Credit Party than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate of such Credit Party. In addition, if any such transaction or series of related transactions involves payments in
excess of $250,000 in the aggregate, the terms of these transactions must be disclosed in advance to Agent and Lenders. All such transactions existing as of the date hereof are described in Disclosure Schedule (6.4(a)). 
  
 (b) No Credit Party shall enter into any lending or
borrowing transaction with any employees of any Credit Party, except loans to its respective employees in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes and
stock option financing up to a maximum of $100,000 in the aggregate at any one time outstanding. 
  
 (c) No Credit Party shall increase the direct or indirect aggregate compensation (excluding stock options) of the ten most highly
compensated employees of the Credit Parties, taken as a whole, by more than 20% per annum in excess of the current compensation level for those employees, expressed as an aggregate dollar amount and set forth in Disclosure Schedule (6.4(c))
not including raises in compensation levels in connection with promotions or bonuses. 
  
 6.5 Capital Structure and Business. 
  
 No Credit Party shall (a) make any changes in any of its business objectives, purposes or operations that could in any way adversely affect the repayment of the Loans or any of the other Obligations or could
reasonably be expected to have or result in a Material Adverse Effect, (b) make any change in its capital structure as described in Disclosure Schedule (3.8), including the issuance or sale of any shares of Stock, warrants or other securities
convertible into Stock or any revision of the terms of its outstanding Stock; provided that Holdings may issue or sell shares of its Stock (i) in the form of Permitted Stock Options, (ii) in exchange for the cancellation or 

  

 30 

 
payment (whether in the form of redemption or otherwise) of the Subordinated Notes, or (iii) for cash so long as (A) the proceeds thereof are applied in
prepayment of the Obligations as required by Section 1.3(b), and (B) no Change of Control occurs after giving effect thereto, or (c) amend its charter or bylaws in a manner that would adversely affect Agent or Lenders or such Credit
Party’s duty or ability to repay the Obligations. No Credit Party shall engage in any business other than the businesses currently engaged in by it. 
  
 6.6 Guaranteed Debt. 
  
 No Credit Party shall create, incur, assume or permit to exist any Guaranteed Debt except (a) by endorsement of instruments or items of payment for
deposit to the general account of any Credit Party, (b) for Guaranteed Debt incurred for the benefit of any other Credit Party if the primary obligation is expressly permitted by this Agreement, and (c) that Guaranteed Debt described on
Disclosure Schedule 6.6. 
  
 6.7 Liens.

  
 No Credit Party shall create, incur, assume or permit to exist
any Lien on or with respect to its Accounts or any of its other properties or assets (whether now owned or hereafter acquired) except for (a) Permitted Encumbrances; (b) Liens in existence on the date hereof and summarized on Disclosure Schedule
(6.7) securing the Debt described on Disclosure Schedule (6.3) and permitted refinancings, extensions and renewals thereof, including extensions or renewals of any such Liens; provided that the principal amount of the Debt so secured is
not increased and the Lien does not attach to any other property; (c) Liens created after the date hereof by conditional sale or other title retention agreements (including Capital Leases) or in connection with purchase money Debt with respect to
Equipment and Fixtures acquired by any Credit Party in the ordinary course of business, involving the incurrence of an aggregate amount of annual payments of purchase money Debt, plus annual payments of Capital Leases, plus the annual
payments under operating leases as permitted in Section 6.18 below of not more than $1,500,000.00 at any one time for all such Liens (provided, in the case of purchase money Debt, that such Liens attach only to the assets subject to
such purchase money debt and such Debt is incurred within 20 days following such purchase and does not exceed 100% of the purchase price of the subject assets); and (d) Liens in favor of Revolving Credit Lender securing the Revolving Credit Loan not
to exceed $20,000,000 in the aggregate principal amount at any time outstanding, subject at all times to the Intercreditor Agreement. In addition, no Credit Party shall become a party to any agreement, note, indenture or instrument, or take any
other action, that would prohibit the creation of a Lien on any of its properties or other assets in favor of Agent, on behalf of itself and Lenders, as additional collateral for the Obligations, except operating leases, Capital Leases or Licenses
which prohibit Liens upon the assets that are subject thereto. 
  
 6.8 Sale of Stock and Assets. 
  
 No Credit Party
shall sell, transfer, convey, assign or otherwise dispose of any of its properties or other assets, including the Stock of any of its Subsidiaries (whether in a public or a private offering or otherwise) or any of its Accounts, other than (a) the
sale of Inventory in the ordinary course of business, provided, to the extent such Inventory consists of Used Railcar Inventory, such sale is made for immediate cash delivery and not on terms, and (b) the sale, 

  

 31 

 
transfer, conveyance or other disposition by a Credit Party of Equipment, Fixtures that are obsolete or no longer used or useful in such Credit Party’s
business and having an appraised value not exceeding $50,000 in any single transaction or $250,000 in the aggregate in any Fiscal Year. With respect to any disposition of assets or other properties consisting of Used Railcar Inventory assets
permitted pursuant to clause (a) above, subject to Section 1.3(b), Agent and the Lenders agree their Lien in such Used Railcar Inventory shall be automatically released in accordance with Section 9-320 of the Code, provided that, the Lien of
Agent and the Lenders shall attach to the proceeds of such sale. Upon written request by Borrowers, Agent (without the consent of any Lender) shall execute and deliver a partial release with respect to such Used Railcar Inventory sold pursuant to
clause (a) above in form and content satisfactory to Agent. With respect to any disposition of assets or other properties permitted pursuant to clause (b) above, subject to Section 1.3(b), Agent agrees on reasonable prior written notice to release
its Lien on such assets or other properties in order to permit the applicable Credit Party to effect such disposition and shall execute and deliver to Borrowers, at Borrowers’ expense, appropriate UCC-3 termination statements and other releases
as reasonably requested by Borrowers. 
  
 6.9 ERISA.

  
 No Credit Party shall, or shall cause or permit any ERISA
Affiliate to, cause or permit to occur an event that could result in the imposition of a Lien under Section 412 of the IRC or Section 302 or 4068 of ERISA or cause or permit to occur an ERISA Event to the extent such ERISA Event could reasonably be
expected to have a Material Adverse Effect. 
  
 6.10 Financial
Covenants. 
  
 Borrowers shall not breach or fail to comply
with any of the Financial Covenants. 
  
 6.11 Hazardous
Materials. 
  
 No Credit Party shall cause or permit a Release
of any Hazardous Material on, at, in, under, above, to, from or about any of the Real Estate where such Release would (a) violate in any respect, or form the basis for any Environmental Liabilities under, any Environmental Laws or Environmental
Permits or (b) otherwise adversely impact the value or marketability of any of the Real Estate or any of the Collateral, other than such violations or Environmental Liabilities that could not reasonably be expected to have a Material Adverse Effect.

  
 6.12 Sale-Leasebacks. 
  
 No Credit Party shall engage in any sale-leaseback, synthetic lease or
similar transaction involving any of its assets without the prior written consent of Agent. 
  
 6.13 Cancellation of Debt. 
  
 No Credit Party shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm’s-length basis and in the ordinary course of its business consistent with past practices. 
  

 32 

 6.14 Restricted Payments. 
  
 No Credit Party shall make any Restricted Payment, except (a) payments of Debt permitted under Section 6.3(a)(v), (b)
dividends and distributions by Subsidiaries of any Borrower paid to such Borrower, (c) employee loans permitted under Section 6.4(b), (d) payments of fees (or dividends or distributions in order to allow any other Credit Party to make payment
of fees) pursuant to the Management Services Agreements to the extent (and only to the extent) permitted by the Subordination Agreement provided, no Default or Event of Default has occurred and is continuing or would result after giving
effect to any Restricted Payment pursuant to this clause (d), (e) capitalization of accrued interest under the Subordinated Notes Agreement by issuance of PIK Notes (as such term is defined in the Subordination Agreement) to the extent (and
only to the extent) permitted by the Subordination Agreement, (f) payments made to Holdings in connection with the Redemption Distribution; and (g) payments made to the Subordinated Note Holders in connection with the Redemption. 
  
 6.15 Change of Corporate Name or Location; Change of Fiscal Year.

  
 No Credit Party shall (a) change its corporate name or trade
name or (b) change its chief executive office, principal place of business, corporate offices or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral, in each case without at least
30 days prior written notice to Agent and after Agent’s written acknowledgment that any reasonable action requested by Agent in connection therewith, including to continue the perfection of any Liens in favor of Agent, on behalf of Lenders, in
any Collateral, has been completed or taken, and provided that any such new location shall be in the continental United States. Without limiting the foregoing, no Credit Party shall change its name, identity or corporate structure in any
manner that might make any financing or continuation statement filed in connection herewith seriously misleading within the meaning of Section 9-506 of the Code or any other then applicable provision of the Code except upon prior written notice to
Agent and Lenders and after Agent’s written acknowledgment that any reasonable action requested by Agent in connection therewith, including to continue the perfection of any Liens in favor of Agent, on behalf of Lenders, in any Collateral, has
been completed or taken. No Credit Party shall change its Fiscal Year. 
  
 6.16 No Impairment of Intercompany Transfers. 
  
 No Credit Party shall directly or indirectly enter into or become bound by any agreement, instrument, indenture or other obligation (other than this Agreement, the other Loan Documents and the Revolving Credit Agreement) that could directly
or indirectly restrict, prohibit or require the consent of any Person with respect to the payment of dividends or distributions or the making or repayment of intercompany loans by a Subsidiary of any Borrower to any Borrower or between Borrowers.

  
 6.17 No Speculative Transactions. 
  
 No Credit Party shall engage in any transaction involving commodity options,
futures contracts or similar transactions, except solely to hedge against fluctuations in the prices of commodities owned or purchased by it and the values of foreign currencies receivable or payable by it and interest swaps, caps or collars.

  

 33 

 6.18 Leases; Real Estate Purchases. 
  
 No Credit Party shall enter into any operating lease for Equipment or Real Estate, if the aggregate of all such operating
lease payments payable in any year for the Consolidated Group plus the amount of annual payments of purchase money Debt, plus the amount of annual payments of Capital Leases permitted under Section 6.3 (a)(i) and Section
6.7(c) would exceed $1,500,000. No Credit Party shall purchase a fee simple ownership interest in Real Estate without Agent’s prior written consent. 
  
 6.19 Changes Relating to Subordinated Debt; Material Contracts. 
  
 (a) No Credit Party shall change or amend the terms of any Subordinated Debt (or any indenture or agreement
in connection therewith) if the effect of such amendment is to: (a) increase the interest rate on such Subordinated Debt; (b) change the dates upon which payments of principal or interest are due on such Subordinated Debt other than to extend such
dates; (c) change any default or event of default other than to delete or make less restrictive any default provision therein, or add any covenant with respect to such Subordinated Debt; (d) change the redemption or prepayment provisions of such
Subordinated Debt other than to extend the dates therefor or to reduce the premiums payable in connection therewith; (e) grant any security or collateral to secure payment of such Subordinated Debt; or (f) change or amend any other term if such
change or amendment would materially increase the obligations of the Credit Party thereunder or confer additional material rights on the holder of such Subordinated Debt in a manner adverse to any Credit Party, Agent or any Lender. 
  
 (b) No Credit Party shall change or amend the terms of any
of the Revolving Credit Loan Documents without Agent’s prior written consent. 
  
 6.20 Credit Parties Other than Borrowers. 
  
 None of the Credit Parties other than Borrowers shall engage in any trade or business, or own any assets (other than Stock of their Subsidiaries) or incur any Debt or Guaranteed Debt (other than the Obligations).

  
 6.21 Railcar Matters. 
  
 (a) The Borrowers shall not move or cause to be moved any of
the Listed Cars from its place of storage, except for movement to another storage location or repair shop after prior written notice to the Agent identifying the registration mark of the railcar being moved, and the origin and destination of such
railcar. 
  
 (b) The Borrowers shall not alter
the registration marks of any of the Listed Cars without the prior written consent of the Agent. 
  

 34 

 7. TERM 
  
 7.1 Termination. 
  
 The financing arrangements contemplated hereby shall be in effect until the Commitment Termination Date, and the Loans and all other Obligations shall be
automatically due and payable in full on such date. 
  
 7.2
Survival of Obligations Upon Termination of Financing Arrangements. 
  
 Except as otherwise expressly provided for in the Loan Documents, no termination or cancellation (regardless of cause or procedure) of any financing arrangement under this Agreement shall in any way affect or impair
the obligations, duties and liabilities of the Credit Parties or the rights of Agent and Lenders relating to any unpaid portion of the Loans or any other Obligations, due or not due, liquidated, contingent or unliquidated, or any transaction or
event occurring prior to such termination, or any transaction or event, the performance of which is required after the Commitment Termination Date. Except as otherwise expressly provided herein or in any other Loan Document, all undertakings,
agreements, covenants, warranties and representations of or binding upon the Credit Parties, and all rights of Agent and each Lender, all as contained in the Loan Documents, shall not terminate or expire, but rather shall survive any such
termination or cancellation and shall continue in full force and effect until the Termination Date; provided, that the provisions of Section 11, the payment obligations under Sections 1.15 and 1.16, and the indemnities
contained in the Loan Documents shall survive the Termination Date. 
  
 8. EVENTS OF DEFAULT; RIGHTS AND REMEDIES 
  
 8.1 Events of Default. 
  
 The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute an “Event of Default” hereunder: 
  
 (a) Any Borrower (i) fails to make any payment of principal of, or interest on, or Fees owing in respect of,
the Loans or any of the other Obligations when due and payable, or (ii) fails to pay or reimburse Agent or Lenders for any expense reimbursable hereunder or under any other Loan Document within 10 days following Agent’s demand for such
reimbursement or payment of expenses. 
  
 (b) Any
Credit Party fails or neglects to perform, keep or observe any of the provisions of Sections 1.4, 1.8, 5.4(a) or 6, or any of the provisions set forth in Annexes C or G, respectively. 
  
 (c) Any Borrower fails or neglects to perform, keep or
observe any of the provisions of Section 4 or any provisions set forth in Annexes E or F, respectively. 
  
 (d) Any Credit Party fails or neglects to perform, keep or observe any other provision of this Agreement or of any of the other Loan
Documents (other than any provision embodied in or covered by any other clause of this Section 8.1) and the same shall remain unremedied for 20 days or more. 
  
 (e) Any default or event of default (each as such terms are defined in the Revolving Credit Agreement)
occurs under the Revolving Credit Loan Documents that is not cured within any applicable grace period therefor. 
  

 35 

 (f) A default or breach occurs under any other agreement, document or instrument other
than the Revolving Credit Loan Documents to which any Credit Party is a party that is not cured within any applicable grace period therefor, and such default or breach (i) involves the failure to make any payment when due in respect of any Debt or
Guaranteed Debt (other than the Obligations) of any Credit Party in excess of $500,000 in the aggregate (including (x) undrawn committed or available amounts and (y) amounts owing to all creditors under any combined or syndicated credit
arrangements), or (ii) causes, or permits any holder of such Debt or Guaranteed Debt or a trustee to cause, Debt or Guaranteed Debt or a portion thereof in excess of $500,000 in the aggregate to become due prior to its stated maturity or prior to
its regularly scheduled dates of payment, or cash collateral in respect thereof to be demanded, in each case, regardless of whether such default is waived, or such right is exercised, by such holder or trustee. 
  
 (g) Any information contained in any representation or
warranty herein or in any Loan Document or in any written statement, report, financial statement or certificate made or delivered to Agent or any Lender by any Credit Party is untrue or incorrect in any material respect as of the date when made or
deemed made. 
  
 (h) Assets with a fair market
value of $50,000 or more and which are owned by any Credit Party are attached, seized, levied upon or subjected to a writ or distress warrant, or come within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors
of any Credit Party and such condition continues for 30 days or more. 
  
 (i) A case or proceeding is commenced against any Credit Party seeking a decree or order in respect of such Credit Party (i) under the Bankruptcy Code, or any other applicable federal, state or foreign bankruptcy or
other similar law, (ii) appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Credit Party or for any substantial part of any such Credit Party’s assets, or (iii) ordering the winding-up
or liquidation of the affairs of such Credit Party, and such case or proceeding shall remain undismissed or unstayed for 45 days or more or a decree or order granting the relief sought in such case or proceeding shall be entered by a court of
competent jurisdiction. 
  
 (j) Any Credit Party
(i) files a petition seeking relief under the Bankruptcy Code, or any other applicable federal, state or foreign bankruptcy or other similar law, (ii) consents to or fails to contest in a timely and appropriate manner the institution of proceedings
thereunder or the filing of any such petition or the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Credit Party or for any substantial part of any such
Credit Party’s assets, (iii) makes an assignment for the benefit of creditors, (iv) takes any action in furtherance of any of the foregoing; or (v) admits in writing its inability to, or is generally unable to, pay its debts as such debts
become due. 
  
 (k) A final judgment or judgments
for the payment of money in excess of 

  

 36 

 
$500,000 in the aggregate at any time are outstanding against one or more of the Credit Parties and the same are not, within 30 days after the entry thereof,
discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay. 
  
 (l) Any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms
(or any Credit Party shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise
is not valid, binding and enforceable in accordance with its terms), or any Lien created under any Loan Document ceases to be a valid and perfected first priority Lien (except as otherwise permitted herein or therein) in any of the Collateral
purported to be covered thereby. 
  
 (m) Any
Change of Control occurs. 
  
 (n) Any event
occurs, whether or not insured or insurable, as a result of which revenue-producing activities cease or are substantially curtailed at the FCS facility in Danville, Illinois and such cessation or curtailment continues for more than 90 days.

  
 (o) Any default or breach by Holdings or any
Borrower occurs and is continuing under the Subordinated Notes Agreement or the Subordinated Notes or the Subordinated Notes Agreement or the Subordinated Notes shall be terminated for any reason. 
  
 8.2 Remedies. 
  
 (a) If any Default or Event of Default has occurred and is
continuing, Agent may, without notice except as otherwise expressly provided herein, increase the rate of interest applicable to the Loans to the Default Rate. 
  

(b) If any Event of Default has occurred and is continuing, Agent may, without notice: (i) declare all or any portion of the
Obligations, including all or any portion of any Loan to be forthwith due and payable all without presentment, demand, protest or further notice of any kind, all of which are expressly waived by Borrowers and each other Credit Party; or (ii)
exercise any rights and remedies provided to Agent under the Loan Documents or at law or equity, including all remedies provided under the Code; provided, that upon the occurrence of an Event of Default specified in Sections 8.1(i) or
[j], all of the Obligations shall become immediately due and payable without declaration, notice or demand by any Person. 
  
 8.3 Waivers by Credit Parties. 
  
 Except as otherwise provided for in this Agreement or by applicable law, each Credit Party waives (including for purposes of Section 12): (a)
presentment, demand and protest and notice of presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all commercial
paper, accounts, contract rights, documents, instruments, chattel paper and 

  

 37 

 
guaranties at any time held by Agent on which any Credit Party may in any way be liable, and hereby ratifies and confirms whatever Agent may do in this
regard, (b) all rights to notice and a hearing prior to Agent’s taking possession or control of, or to Agent’s replevy, attachment or levy upon, the Collateral or any bond or security that might be required by any court prior to allowing
Agent to exercise any of its remedies, and (c) the benefit of all valuation, appraisal, marshaling and exemption laws. 
  
 9. ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT 
  
 9.1 Assignment and Participations. 
  
 (a) Subject to the terms of this Section 9.1, any Lender may make an assignment to a Qualified Assignee of,
or sell participations in, at any time or times, the Loan Documents, Loans, and any Commitment or any portion thereof or interest therein, including any Lender’s rights, title, interests, remedies, powers or duties thereunder. Any assignment by
a Lender shall: (i) require the consent of Agent (which consent shall not be unreasonably withheld or delayed with respect to a Qualified Assignee) and the execution of an assignment agreement (an “Assignment Agreement”) substantially in
the form attached hereto as Exhibit 9.1 (a) and otherwise in form and substance reasonably satisfactory to, and acknowledged by, Agent; (ii) be conditioned on such assignee Lender representing to the assigning Lender and Agent that it is
purchasing the applicable Loans to be assigned to it for its own account, for investment purposes and not with a view to the distribution thereof; (iii) after giving effect to any such partial assignment, the assignee Lender shall have Commitments
in an amount at least equal to $1,000,000 and the assigning Lender shall have retained Commitments in an amount at least equal to $1,000,000; (iv) include a payment to Agent of an assignment fee of $3,500; and (v) so long as no Event of Default has
occurred and is continuing, require the consent of Borrower Representative, which shall not be unreasonably withheld or delayed; provided that no such consent shall be required for an assignment to a Qualified Assignee in the case of an assignment
by a Lender under this Section 9.1, the assignee shall have, to the extent of such assignment, the same rights, benefits and obligations as all other Lenders hereunder. The assigning Lender shall be relieved of its obligations hereunder with
respect to its Commitments or assigned portion thereof from and after the date of such assignment. Each Borrower hereby acknowledges and agrees that any assignment shall give rise to a direct obligation of Borrowers to the assignee and that the
assignee shall be considered to be a “Lender”. In all instances, each Lender’s liability to make Loans hereunder shall be several and not joint and shall be limited to such Lender’s Pro Rata Share of the applicable Commitment. In
the event Agent or any Lender assigns or otherwise transfers all or any part of the Obligations, Agent or any such Lender shall so notify Borrowers and Borrowers shall, upon the request of Agent or such Lender, execute new Notes in exchange for the
Notes, if any, being assigned. Notwithstanding the foregoing provisions of this Section 9.1 (a), any Lender may at any time pledge the Obligations held by it and such Lender’s rights under this Agreement and the other Loan Documents to a
Federal Reserve Bank, and any Lender that is an investment fund may assign the Obligations held by it and such Lender’s rights under this Agreement and the other Loan Documents to another investment fund managed by the same investment advisor;
provided, that no such pledge to a Federal Reserve Bank shall release such Lender from such Lender’s obligations hereunder or under any other Loan Document. 
  

 38 

 (b) Any participation by a Lender of all or any part of its Commitments shall be made
with the understanding that all amounts payable by Borrowers hereunder shall be determined as if that Lender had not sold such participation, and that the holder of any such participation shall not be entitled to require such Lender to take or omit
to take any action hereunder except actions directly affecting (i) any reduction in the principal amount of, or interest rate or Fees payable with respect to, any Loan in which such holder participates, (ii) any extension of the scheduled
amortization of the principal amount of any Loan in which such holder participates or the final maturity date thereof, and (iii) any release of all or substantially all of the Collateral (other than in accordance with the terms of this Agreement,
the Collateral Documents or the other Loan Documents). Solely for purposes of Sections 1.13, 1.15, 1.16 and 9.8, each Borrower acknowledges and agrees that a participation shall give rise to a direct obligation of Borrowers to the participant
and the participant shall be considered to be a “Lender”. Except as set forth in the preceding sentence no Borrower or Credit Party shall have any obligation or duty to any participant. Neither Agent nor any Lender (other than the Lender
selling a participation) shall have any duty to any participant and may continue to deal solely with the Lender selling a participation as if no such sale had occurred. 
  
 (c) Except as expressly provided in this Section 9.1, no Lender shall, as between Borrowers and that
Lender, or Agent and that Lender, be relieved of any of its obligations hereunder as a result of any sale, assignment, transfer or negotiation of, or granting of participation in, all or any part of the Loans, the Notes or other Obligations owed to
such Lender. 
  
 (d) Each Credit Party executing
this Agreement shall assist any Lender permitted to sell assignments or participations under this Section 9.1 as reasonably required to enable the assigning or selling Lender to effect any such assignment or participation, including the
execution and delivery of any and all agreements, notes and other documents and instruments as shall be requested and, if requested by Agent, the preparation of informational materials for, and the participation of management in meetings with,
potential assignees or participants. Each Credit Party executing this Agreement shall certify the correctness, completeness and accuracy of all descriptions of the Credit Parties and their respective affairs contained in any selling materials
provided by them and all other information provided by them and included in such materials, except that any Projections delivered by Borrowers shall only be certified by Borrowers as having been prepared by Borrowers in compliance with the
representations contained in Section 3.4(c). 
  
 (e) Any Lender may furnish any information concerning Credit Parties in the possession of such Lender from time to time to assignees and participants (including prospective assignees and participants); provided that such Lender, shall
obtain from assignees or participants confidentiality covenants substantially equivalent to those contained in Section 11.8. 
  
 (f) So long as no Event of Default has occurred and is continuing, no Lender 

  

 39 

 
shall assign or sell participations in any portion of its Loans or Commitments to a potential Lender or participant, if, as of the date of the proposed
assignment or sale, the assignee Lender or participant would be subject to capital adequacy or similar requirements under Section 1.16(a), increased costs under Section 1.16(b), an inability to fund LIBOR Loans under
Section 1.16(c), or withholding taxes in accordance with Section 1.15(a). 
  
 9.2 Appointment of Agent. 
  
 GE Capital is hereby appointed to act on behalf of all Lenders as Agent under this Agreement and the other Loan Documents. The provisions of this Section 9.2 are solely for the benefit of Agent and Lenders and no Credit Party nor any
other Person shall have any rights as a third party beneficiary of any of the provisions hereof. In performing its functions and duties under this Agreement and the other Loan Documents, Agent shall act solely as an agent of Lenders and does not
assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for any Credit Party or any other Person. Agent shall have no duties or responsibilities except for those expressly set forth in this
Agreement and the other Loan Documents. The duties of Agent shall be mechanical and administrative in nature and Agent shall not have, or be deemed to have, by reason of this Agreement, any other Loan Document or otherwise a fiduciary relationship
in respect of any Lender. Except as expressly set forth in this Agreement and the other Loan Documents, Agent shall not have any duty to disclose, and shall not be liable for failure to disclose, any information relating to any Credit Party or any
of their respective Subsidiaries or any Account Debtor that is communicated to or obtained by GE Capital or any of its Affiliates in any capacity. Neither Agent nor any of its Affiliates nor any of their respective officers, directors, employees,
agents or representatives shall be liable to any Lender for any action taken or omitted to be taken by it hereunder or under any other Loan Document, or in connection herewith or therewith, except for damages caused by its or their own gross
negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction. 
  
 If Agent shall request instructions from Requisite Lenders, or all affected Lenders with respect to any act or action (including failure to act) in
connection with this Agreement or any other Loan Document, then Agent shall be entitled to refrain from such act or taking such action unless and until Agent shall have received instructions from Requisite Lenders, or all affected Lenders, as the
case may be, and Agent shall not incur liability to any Person by reason of so refraining. Agent shall be fully justified in failing or refusing to take any action hereunder or under any other Loan Document (a) if such action would, in the opinion
of Agent, be contrary to law or the terms of this Agreement or any other Loan Document, (b) if such action would, in the opinion of Agent, expose Agent to Environmental Liabilities or (c) if Agent shall not first be indemnified to its satisfaction
against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Without limiting the foregoing, no Lender shall have any right of action whatsoever against Agent as a result of Agent
acting or refraining from acting hereunder or under any other Loan Document in accordance with the instructions of Requisite Lenders. 
  

 40 

 9.3 Agent’s Reliance, Etc. 
  
 Neither Agent nor any of its Affiliates 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 this Agreement or the other Loan Documents, except for damages caused by its or their own gross negligence or willful misconduct as determined by a final,
non-appealable judgment of a court of competent jurisdiction. Without limiting the generality of the foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until Agent receives written notice of the assignment or transfer
thereof signed by such payee and in form reasonably satisfactory to Agent; (b) may consult with legal counsel, independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it
in good faith in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made in or in
connection with this Agreement or the other Loan Documents; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or the other Loan Documents on the
part of any Credit Party or to inspect the Collateral (including the books and records) of any Credit Party; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of
this Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and (f) shall incur no liability under or in respect of this Agreement or the other Loan Documents by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
  
 9.4 GE Capital and Affiliates. 
  
 With respect to its Commitments hereunder, GE Capital shall have the same rights and powers under this Agreement and the
other Loan Documents as any other Lender and may exercise the same as though it were not Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include GE Capital in its individual capacity. GE
Capital and its Affiliates may lend money to, invest in, and generally engage in any kind of business with, any Credit Party, any of their Affiliates and any Person who may do business with or own securities of any Credit Party or any such
Affiliate, all as if GE Capital were not Agent and without any duty to account therefor to Lenders. GE Capital and its Affiliates may accept fees and other consideration from any Credit Party for services in connection with this Agreement or
otherwise without having to account for the same to Lenders. Each Lender acknowledges the potential conflict of interest between GE Capital as a Lender holding disproportionate interests in the Loans, and GE Capital as Agent. 
  
 9.5 Lender Credit Decision. 
  
 Each Lender acknowledges that it has, independently and without reliance upon
Agent or any other Lender and based on the Financial Statements referred to in Section 3.4(a) and such other documents and information as it has deemed appropriate, made its own credit and financial analysis of the Credit Parties and its own
decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon 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 this Agreement. 

  

 41 

 
Each Lender acknowledges the potential conflict of interest of each other Lender as a result of Lenders holding disproportionate interests in the Loans, and
expressly consents to, and waives any claim based upon, such conflict of interest. 
  
 9.6 Indemnification. 
  
 Lenders agree to indemnify Agent (to the extent not reimbursed by Credit Parties and without limiting the obligations of Credit Parties hereunder), ratably according to their respective Pro Rata Shares, from and against 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 Agent in any way relating to or arising out
of this Agreement or any other Loan Document or any action taken or omitted to be taken by Agent in connection therewith; provided, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from Agent’s gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction. Without limiting the foregoing,
each Lender agrees to reimburse Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred by Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement and each other Loan Document, to the extent that Agent is not reimbursed for
such expenses by Credit Parties. 
  
 9.7 Successor Agent.

  
 Agent may resign at any time by giving not less than 30
days’ prior written notice thereof to Lenders and Borrower Representative. Upon any such resignation, the Requisite Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Requisite
Lenders and shall have accepted such appointment within 30 days after the resigning Agent’s giving notice of resignation, then the resigning Agent may, on behalf of Lenders, appoint a successor Agent, which shall be a Lender, if a Lender is
willing to accept such appointment, or otherwise shall be a commercial bank or financial institution or a subsidiary of a commercial bank or financial institution if such commercial bank or financial institution is organized under the laws of the
United States of America or of any State thereof and has a combined capital and surplus of at least $300,000,000. If no successor Agent has been appointed pursuant to the foregoing, within 30 days after the date such notice of resignation was given
by the resigning Agent, such resignation shall become effective and the Requisite Lenders shall thereafter perform all the duties of Agent hereunder until such time, if any, as the Requisite Lenders appoint a successor Agent as provided above. Any
successor Agent appointed by Requisite Lenders hereunder shall be subject to the approval of Borrower Representative, such approval not to be unreasonably withheld or delayed; provided that such approval shall not be required if a Default or
an Event of Default has occurred and is continuing. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the
resigning Agent. Upon the earlier of the acceptance of any appointment as Agent hereunder by a successor Agent or the effective date of the resigning Agent’s resignation, the resigning Agent shall be discharged from its duties and obligations
under this Agreement and the other Loan Documents, 

  

 42 

 
except that any indemnity rights or other rights in favor of such resigning Agent shall continue. After any resigning Agent’s resignation hereunder, the
provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was acting as Agent under this Agreement and the other Loan Documents. 
  
 9.8 Setoff and Sharing of Payments. 
  
 In addition to any rights now or hereafter granted under applicable law and
not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default and subject to Section 9.9(f), each Lender is hereby authorized at any time or from time to time, without notice to any Credit Party
or to any other Person, any such notice being hereby expressly waived, to offset and to appropriate and to apply any and all balances held by it at any of its offices for the account of any Borrower or Guarantor (regardless of whether such balances
are then due to such Borrower or Guarantor) and any other properties or assets at any time held or owing by that Lender or that holder to or for the credit or for the account of any Borrower or Guarantor against and on account of any of the
Obligations that are not paid when due. Any Lender exercising a right of setoff or otherwise receiving any payment on account of the Obligations in excess of its Pro Rata Share thereof shall purchase for cash (and the other Lenders or holders shall
sell) such participations in each such other Lender’s or holder’s Pro Rata Share of the Obligations as would be necessary to cause such Lender to share the amount so offset or otherwise received with each other Lender or holder in
accordance with their respective Pro Rata Shares (other than offset rights exercised by any Lender with respect to Sections 1.13, 1.15 or 1.16). Each Credit Party that is a Borrower or Guarantor agrees, to the fullest extent
permitted by law, that (a) any Lender may exercise its right to offset with respect to amounts in excess of its Pro Rata Share of the Obligations and may sell participations in such amounts so offset to other Lenders and holders and (b) any Lender
so purchasing a participation in the Loans made or other Obligations held by other Lenders or holders may exercise all rights of offset, bankers’ lien, counterclaim or similar rights with respect to such participation as fully as if such Lender
or holder were a direct holder of the Loans and the other Obligations in the amount of such participation. Notwithstanding the foregoing, if all or any portion of the offset amount or payment otherwise received is thereafter recovered from the
Lender that has exercised the right of offset, the purchase of participations by that Lender shall be rescinded and the purchase price restored without interest. 
  
 9.9 Advances; Payments; Non-Funding Lenders; Information; Actions in Concert. 
  
 (a) Payments. On the 2nd Business Day of each
calendar week or more frequently at Agent’s election (each, a “Settlement Date”), Agent shall advise each Lender by telephone, or telecopy of the amount of such Lender’s Pro Rata Share of principal, interest and Fees paid
for the benefit of Lenders with respect to each applicable Loan. Provided that each Lender has funded all payments required to be made by it and has purchased all participations required to be purchased by it under this Agreement and the other Loan
Documents as of such Settlement Date, Agent shall pay to each Lender such Lender’s Pro Rata Share of principal, interest and Fees paid by Borrowers since the previous Settlement Date for the benefit of such Lender on the Loans held by it. To
the extent that any Lender (a “Non-Funding Lender”) has failed to fund all such payments or 

  

 43 

 
failed to fund the purchase of all such participations, Agent shall be entitled to set off the funding short-fall against that Non-Funding Lender’s Pro
Rata Share of all payments received from Borrowers. Such payments shall be made by wire transfer to such Lender’s account (as specified by such Lender in Annex H or the applicable Assignment Agreement) not later than 2:00 p.m. (New York
time) on the next Business Day following each Settlement Date. 
  
 (b) Availability of Lender’s Pro Rata Share. Agent may assume that each Lender will make its Pro Rata Share of the Term Loan available to Agent on the Closing Date. If such Pro Rata Share is not, in fact,
paid to Agent by such Lender when due, Agent will be entitled to recover such amount on demand from such Lender without setoff, counterclaim or deduction of any kind. If any Lender fails to pay the amount of its Pro Rata Share forthwith upon
Agent’s demand, Agent shall promptly notify Borrower Representative and Borrowers shall immediately repay such amount to Agent. Nothing in this Section 9.9(b) or elsewhere in this Agreement or the other Loan Documents shall be deemed to
require Agent to advance funds on behalf of any Lender or to relieve any Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that Borrowers may have against any Lender as a result of any default by such Lender
hereunder. To the extent that Agent advances funds to any Borrower on behalf of any Lender and is not reimbursed therefor on the same Business Day as such advance is made, Agent shall be entitled to retain for its account all interest accrued on
such advance until reimbursed by the applicable Lender. 
  
 (c) Return of Payments. 
  
 (i) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that a related payment has been or will be received by Agent from Borrowers and such related payment is not received by Agent,
then Agent will be entitled to recover such amount from such Lender on demand without setoff, counterclaim or deduction of any kind. 
  
 (ii) If Agent determines at any time that any amount received by Agent under this Agreement must be returned to any Borrower or paid to
any other Person pursuant to any insolvency law or otherwise, then, notwithstanding any other term or condition of this Agreement or any other Loan Document, Agent will not be required to distribute any portion thereof to any Lender. In addition,
each Lender will repay to Agent on demand any portion of such amount that Agent has distributed to such Lender, together with interest at such rate, if any, as Agent is required to pay to any Borrower or such other Person, without setoff,
counterclaim or deduction of any kind. 
  
 (d)
Non-Funding Lenders. The failure of any Non-Funding Lender to make any payment required by it hereunder on the date specified therefor shall not relieve any other Lender (each such other Lender, an “Other Lender”) of its obligations
to purchase such participation on such date, but neither any Other Lender nor Agent shall be responsible for the failure of any Non-Funding Lender to purchase a participation or make any other payment required hereunder. Notwithstanding anything set
forth herein 

  

 44 

 
to the contrary, a Non-Funding Lender shall not have any voting or consent rights under or with respect to any Loan Document or constitute a
“Lender” (or be included in the calculation of “Requisite Lenders” hereunder) for any voting or consent rights under or with respect to any Loan Document. At Borrower Representative’s request, Agent or a Person reasonably
acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole discretion (but shall have no obligation) to purchase from any Non-Funding Lender, and each Non-Funding Lender agrees that it shall, at Agent’s request,
sell and assign to Agent or such Person, all of the Commitments of that Non-Funding Lender for an amount equal to the principal balance of all Loans held by such Non-Funding Lender and all accrued interest and fees with respect thereto through the
date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement. 
  
 (e) Dissemination of Information. Agent shall use reasonable efforts to provide Lenders with any notice of Default or Event of
Default received by Agent from, or delivered by Agent to, any Credit Party, with notice of any Event of Default of which Agent has actually become aware and with notice of any action taken by Agent following any Event of Default; provided,
that Agent shall not be liable to any Lender for any failure to do so, except to the extent that such failure is attributable to Agent’s gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of
competent jurisdiction. Lenders acknowledge that Borrowers are required to provide Financial Statements and Collateral Reports to Lenders in accordance with Annexes E and F hereto and agree that Agent shall have no duty to provide the same to
Lenders. 
  
 (f) Actions in Concert.
Anything in this Agreement to the contrary notwithstanding, each Lender hereby agrees with each other Lender that no Lender shall take any action to protect or enforce its rights arising out of this Agreement or the Notes (including exercising any
rights of setoff) without first obtaining the prior written consent of Agent and Requisite Lenders, it being the intent of Lenders that any such action to protect or enforce rights under this Agreement and the Notes shall be taken in concert and at
the direction or with the consent of Agent or Requisite Lenders. 
  
 10.
SUCCESSORS AND ASSIGNS 
  
 10.1 Successors and Assigns.

  
 This Agreement and the other Loan Documents shall be binding
on and shall inure to the benefit of each Credit Party, Agent, Lenders and their respective successors and assigns (including, in the case of any Credit Party, a debtor-in-possession on behalf of such Credit Party), except as otherwise provided
herein or therein. No Credit Party may assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder or under any of the other Loan Documents without the prior express written consent of Agent and Lenders.
Any such purported assignment, transfer, hypothecation or other conveyance by any Credit Party without the prior express written consent of Agent and Lenders shall be void. The terms and provisions of this Agreement are for the purpose of defining
the relative rights and obligations of each Credit Party, Agent and Lenders with respect to the transactions contemplated hereby and 

  

 45 

 
no Person shall be a third party beneficiary of any of the terms and provisions of this Agreement or any of the other Loan Documents. 
  
 11. MISCELLANEOUS 
  
 11.1 Complete Agreement; Modification of Agreement. 
  
 The Loan Documents constitute the complete agreement between the parties with
respect to the subject matter thereof and may not be modified, altered or amended except as set forth in Section 11.2. Any letter of interest, commitment letter, or fee letter (other than the GE Capital Fee Letter) or confidentiality
agreement] between any Credit Party and Agent or any Lender or any of their respective Affiliates, predating this Agreement and relating to a financing of substantially similar form, purpose or effect shall be superseded by this Agreement.

  
 11.2 Amendments and Waivers. 
  
 (a) Except for actions expressly permitted to be taken by
Agent, no amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, or any consent to any departure by any Credit Party therefrom, shall in any event be effective unless the same shall be in
writing and signed by Agent and Borrowers, and by Requisite Lenders, or all affected Lenders, as applicable. Except as set forth in clauses (b) and (c) below, all such amendments, modifications, terminations or waivers requiring the consent of any
Lenders shall require the written consent of Requisite Lenders. 
  
 (b) No amendment, modification, termination or waiver shall, unless in writing and signed by Agent and each Lender directly affected thereby: (i) increase the principal amount of any Lender’s Commitment (which
action shall be deemed to directly affect all Lenders; (ii) reduce the principal of, rate of interest on or Fees payable with respect to any Loan of any affected Lender; (iii) extend any scheduled payment date (other than payment dates of mandatory
prepayments under Section 1.3(b)(i)-(iv)) or final maturity date of the principal amount of any Loan of any affected Lender; (iv) waive, forgive, defer, extend or postpone any payment of interest or Fees as to any affected Lender; (v) release
any Guaranty or, except as otherwise permitted herein or in the other Loan Documents, release, or permit any Credit Party to sell or otherwise dispose of, any Collateral with a value exceeding $5,000,000 in the aggregate (which action shall be
deemed to directly affect all Lenders); (vi) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans that shall be required for Lenders or any of them to take any action hereunder; and (vii) amend or waive
this Section 11.2 or the definitions of the terms “Requisite Lenders”, insofar as such definitions affect the substance of this Section 11.2. Furthermore, no amendment, modification, termination or waiver affecting the rights
or duties of Agent under this Agreement or any other Loan Document shall be effective unless in writing and signed by Agent in addition to Lenders required hereinabove to take such action. Each amendment, modification, termination or waiver shall be
effective only in the specific instance and for the specific purpose for which it was given. No amendment, modification, termination or waiver shall be required for Agent to take additional Collateral pursuant to any Loan Document. No 

  

 46 

 
amendment, modification, termination or waiver of any provision of any Note shall be effective without the written concurrence of the holder of that Note. No
notice to or demand on any Credit Party in any case shall entitle such Credit Party or any other Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent
effected in accordance with this Section 11.2 shall be binding upon each holder of the Notes at the time outstanding and each future holder of the Notes. 
  
 (c) If, in connection with any proposed amendment, modification, waiver or termination (a “Proposed
Change”): 
  
 (i) requiring the consent
of all affected Lenders, the consent of Requisite Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained as described in this clause (i) and in clauses
(ii), (iii) and (iv) below being referred to as a “Non-Consenting Lender”), or 
  
 (ii) requiring the consent of Requisite Lenders, the consent of Lenders holding 51% or more of the aggregate Commitments is obtained, but
the consent of Requisite Lenders is not obtained, 
  
 then, so long as Agent is
not a Non-Consenting Lender, at Borrower Representative’s request, Agent or a Person reasonably acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole discretion (but shall have no obligation) to purchase
from such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon Agent’s request, sell and assign to Agent or such Person, all of the Commitments of such Non-Consenting Lenders for an amount equal to the principal
balance of all Loans held by the Non-Consenting Lenders and all accrued interest and Fees with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement. 
  
 (d) Upon payment in full in cash and performance of all of
the Obligations (other than indemnification Obligations), termination of the Commitments and a release of all claims against Agent and Lenders, and so long as no suits, actions, proceedings or claims are pending or threatened against any Indemnified
Person asserting any damages, losses or liabilities that are Indemnified Liabilities, Agent shall deliver to Borrowers termination statements, mortgage releases and other documents necessary or appropriate to evidence the termination of the Liens
securing payment of the Obligations. 
  
 11.3 Fees and
Expenses. 
  
 Borrowers shall reimburse (i) Agent for all
fees, costs and expenses (including the reasonable fees and expenses of all of its counsel, advisors, consultants and auditors) and (ii) Agent (and, with respect to clauses (c) and (d) below, all Lenders) for all fees, costs and
expenses, including the reasonable fees, costs and expenses of counsel or other advisors (including environmental and management consultants and appraisers), incurred in connection with the negotiation and preparation of the Loan Documents and
incurred in connection with: 
  
 (a) the
forwarding to Borrowers or any other Person on behalf of Borrowers 

  

 47 

 
by Agent of the proceeds of any Loan (including a wire transfer fee of $25 per wire transfer); 
  
 (b) any amendment, modification or waiver of, consent with respect to, or termination of, any of the Loan
Documents or Related Transactions Documents or advice in connection with the administration of the Loans made pursuant hereto or its rights hereunder or thereunder; 
  
 (c) any litigation, contest, dispute, suit, proceeding or action (whether instituted by Agent, any Lender,
any Borrower or any other Person and whether as a party, witness or otherwise) in any way relating to the Collateral, any of the Loan Documents or any other agreement to be executed or delivered in connection herewith or therewith, including any
litigation, contest, dispute, suit, case, proceeding or action, and any appeal or review thereof, in connection with a case commenced by or against any or all of the Borrowers or any other Person that may be obligated to Agent by virtue of the Loan
Documents; including any such litigation, contest, dispute, suit, proceeding or action arising in connection with any work-out or restructuring of the Loans during the pendency of one or more Events of Default; provided that in the case of
reimbursement of counsel for Lenders other than Agent, such reimbursement shall be limited to one counsel for all such Lenders; provided, further, that no Person shall be entitled to reimbursement under this clause (c) in respect of any litigation,
contest, dispute, suit, proceeding or action to the extent any of the foregoing results from such Person’s gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction;

  
 (d) any attempt to enforce any remedies of
Agent against any or all of the Credit Parties or any other Person that may be obligated to Agent or any Lender by virtue of any of the Loan Documents, including any such attempt to enforce any such remedies in the course of any work-out or
restructuring of the Loans during the pendency of one or more Events of Default; provided, that in the case of reimbursement of counsel for Lenders other than Agent, such reimbursement shall be limited to one counsel for all such Lenders;

  
 (e) any workout or restructuring of the Loans
during the pendency of one or more Events of Default; and 
  
 (f) efforts to (i) monitor the Loans or any of the other Obligations, (ii) evaluate, observe or assess any of the Credit Parties or their respective affairs, and (iii) verify, protect, evaluate, assess, appraise,
collect, sell, liquidate or otherwise dispose of any of the Collateral, 
  
 including, as to each of clauses (a) through (f) above, all reasonable attorneys’ and other professional and service providers’ fees arising from such services and other advice, assistance or other representation, including those
in connection with any appellate proceedings, and all expenses, costs, charges and other fees incurred by such counsel and others in connection with or relating to any of the events or actions described in this Section 11.3, all of which
shall be payable, on demand, by Borrowers to Agent. Without limiting the generality of the foregoing, 

  

 48 

 
such expenses, costs, charges and fees may include: fees, costs and expenses of accountants, environmental advisors, appraisers, management and other
consultants and paralegals; court costs and expenses; photocopying and duplication expenses; court reporter fees, costs and expenses; long distance telephone charges; air express charges; telegram or telecopy charges; secretarial overtime charges;
and expenses for travel, lodging and food paid or incurred in connection with the performance of such legal or other advisory services. 
  
 11.4 No Waiver. 
  
 Agent’s or any Lender’s failure, at any time or times, to require strict performance by the Credit Parties of any provision of this Agreement or
any other Loan Document shall not waive, affect or diminish any right of Agent or such Lender thereafter to demand strict compliance and performance herewith or therewith. Any suspension or waiver of an Event of Default shall not suspend, waive or
affect any other Event of Default whether the same is prior or subsequent thereto and whether the same or of a different type. Subject to the provisions of Section 11.2, none of the undertakings, agreements, warranties, covenants and
representations of any Credit Party contained in this Agreement or any of the other Loan Documents and no Default or Event of Default by any Credit Party shall be deemed to have been suspended or waived by Agent or any Lender, unless such waiver or
suspension is by an instrument in writing signed by an officer of or other authorized employee of Agent and the applicable required Lenders, and directed to Borrowers specifying such suspension or waiver. 
  
 11.5 Remedies. 
  
 Agent’s and Lenders’ rights and remedies under this Agreement shall
be cumulative and nonexclusive of any other rights and remedies that Agent or any Lender may have under any other agreement, including the other Loan Documents, by operation of law or otherwise. Recourse to the Collateral shall not be required.

  
 11.6 Severability. 
  
 Wherever possible, each provision of this Agreement and the other Loan
Documents shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement or any other Loan Document shall be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement or such other Loan Document. 
  
 11.7 Conflict of Terms. 
  
 Except as otherwise provided in this Agreement or any of the other Loan
Documents by specific reference to the applicable provisions of this Agreement, if any provision contained in this Agreement conflicts with any provision in any of the other Loan Documents, the provision contained in this Agreement shall govern and
control. 
  

 49 

 11.8 Confidentiality. 
  
 Agent and each Lender agree to use commercially reasonable efforts (equivalent to the efforts Agent or such Lender applies
to maintaining the confidentiality of its own confidential information) to maintain as confidential all confidential information provided to them by the Credit Parties and designated as confidential for a period of 2 years following receipt thereof,
except that Agent and any Lender may disclose such information (a) to Persons employed or engaged by Agent or such Lender in evaluating, approving, structuring or administering the Loans and the Commitments; (b) to any bona fide assignee or
participant or potential assignee or participant that has agreed to comply with the covenant contained in this Section 11.8 (and any such bona fide assignee or participant or potential assignee or participant may disclose such information to
Persons employed or engaged by them as described in clause (a) above); (c) as required or requested by any Governmental Authority or reasonably believed by Agent or such Lender to be compelled by any court decree, subpoena or legal or
administrative order or process; (d) as, on the advice of Agent’s or such Lender’s counsel, is required by law; (e) in connection with the exercise of any right or remedy under the Loan Documents or in connection with any Litigation to
which Agent or such Lender is a party; or (f) that ceases to be confidential through no fault of Agent or any Lender. 
  
 Notwithstanding anything herein to the contrary, the information subject to this Section 11.8 shall not include, and Agent and each Lender may
disclose without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby
and all materials of any kind (including opinions or other tax analyses) that are provided to Agent or such Lender relating to such tax treatment and tax structure; provided, however, that with respect to any document or similar item
that in either case contains information concerning the tax treatment or tax structure of the transactions as well as other information, this Section 11.8 shall apply only to such portions of the document or similar item that relate to the
tax treatment or tax structure of the advances and transactions contemplated hereby. 
  
 11.9 GOVERNING LAW. 
  
 EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CREDIT PARTIES, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT AGENT, LENDERS AND THE CREDIT PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF NEW YORK COUNTY; PROVIDED FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE 

  

 50 

 
AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION THAT
SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH
CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
SUCH CREDIT PARTY AT THE ADDRESS SET FORTH IN ANNEX I OF THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS,
PROPER POSTAGE PREPAID. 
  
 11.10 Notices. 
  
 Except as otherwise provided herein, whenever it is provided herein that any
notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other parties, or whenever any of the parties desires to give or serve upon any other parties any
communication with respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be deemed to have been validly served, given or delivered: (a) upon the earlier of
actual receipt and 3 Business Days after deposit in the United States Mail, registered or certified mail, return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by telecopy or other similar facsimile transmission
(with such telecopy or facsimile promptly confirmed by delivery of a copy by personal delivery or United States Mail as otherwise provided in this Section 11.10); (c) 1 Business Day after deposit with a reputable overnight courier with all
charges prepaid or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or facsimile number indicated in Annex I or to such other address (or facsimile number)
as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled to receive such notice. Failure or delay in delivering copies of any notice, demand, request,
consent, approval, declaration or other communication to any Person (other than Borrower Representative or Agent) designated in Annex I to receive copies shall in no way adversely affect the effectiveness of such notice, demand, request,
consent, approval, declaration or other communication. 
  
 11.11
Section Titles. 
  
 The Section titles and Table of
Contents contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
  

 51 

 11.12 Counterparts. 
  
 This Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately
constitute one agreement. 
  
 11.13 WAIVER OF JURY TRIAL.

  
 BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A
JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT, LENDERS AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO. 
  
 11.14 Press Releases and Related Matters. 
  
 Each
Credit Party executing this Agreement agrees that neither it nor its Affiliates will in the future issue any press releases or other public disclosure using the name of GE Capital or its affiliates or referring to this Agreement, the other Loan
Documents or the Related Transactions Documents without at least 2 Business Days’ prior notice to GE Capital and without the prior written consent of GE Capital unless (and only to the extent that) such Credit Party or Affiliate is required to
do so under law and then, in any event, such Credit Party or Affiliate will consult with GE Capital before issuing such press release or other public disclosure. Each Credit Party consents to the publication by Agent or any Lender of a tombstone or
similar advertising material relating to the financing transactions contemplated by this Agreement. Agent reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table measurements.

  
 11.15 Reinstatement. 
  
 This Agreement shall remain in full force and effect and continue to be
effective should any petition be filed by or against any Borrower for liquidation or reorganization, should any Borrower become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed
for all or any significant part of any Borrower’s assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any 

  

 52 

 
part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned. 
  
 11.16 Advice of
Counsel. 
  
 Each of the parties represents to each other
party hereto that it has discussed this Agreement and, specifically, the provisions of Sections 11.9 and 11.13, with its counsel. 
  
 11.17 No Strict Construction. 
  
 The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

  
 12. CROSS-GUARANTY 
  
 12.1 Cross-Guaranty. 
  
 Each Borrower hereby agrees that such Borrower is jointly and severally
liable for, and hereby absolutely and unconditionally guarantees to Agent and Lenders and their respective successors and assigns, the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and performance of, all
Obligations owed or hereafter owing to Agent and Lenders by each other Borrower. Each Borrower agrees that its guaranty obligation hereunder is a continuing guaranty of payment and performance and not of collection, that its obligations under this
Section 12 shall not be discharged until payment and performance, in full, of the Obligations has occurred, and that its obligations under this Section 12 shall be absolute and unconditional, irrespective of, and unaffected by,

  
 (a) the genuineness, validity, regularity,
enforceability or any future amendment of, or change in, this Agreement, any other Loan Document or any other agreement, document or instrument to which any Borrower is or may become a party; 
  
 (b) the absence of any action to enforce this Agreement
(including this Section 12) or any other Loan Document or the waiver or consent by Agent and Lenders with respect to any of the provisions thereof; 
  
 (c) the existence, value or condition of, or failure to perfect its Lien against, any security for the Obligations or any action, or the
absence of any action, by Agent and Lenders in respect thereof (including the release of any such security); 
  
 (d) the insolvency of any Borrower; or 
  
 (e) any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor.

  

 53 

 Each Borrower shall be regarded, and shall be in the same position, as principal debtor with respect to the Obligations
guaranteed hereunder. 
  
 12.2 Waivers by Borrowers.

  
 Each Borrower expressly waives all rights it may have now or
in the future under any statute, or at common law, or at law or in equity, or otherwise, to compel Agent or Lenders to marshall assets or to proceed in respect of the Obligations guaranteed hereunder against any other Borrower, any other party or
against any security for the payment and performance of the Obligations before proceeding against, or as a condition to proceeding against, such Borrower. It is agreed among each Borrower, Agent and Lenders that the foregoing waivers are of the
essence of the transaction contemplated by this Agreement and the other Loan Documents and that, but for the provisions of this Section 12 and such waivers, Agent and Lenders would decline to enter into this Agreement. 
  
 12.3 Benefit of Guaranty. 
  
 Each Borrower agrees that the provisions of this Section 12 are for
the benefit of Agent and Lenders and their respective successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other Borrower and Agent or Lenders, the obligations of such other Borrower under the
Loan Documents. 
  
 12.4 Subordination of Subrogation, Etc.

  
 Notwithstanding anything to the contrary in this Agreement or
in any other Loan Document, and except as set forth in Section 12.7, each Borrower hereby expressly and irrevocably subordinates to payment of the Obligations any and all rights at law or in equity to subrogation, reimbursement, exoneration,
contribution, indemnification or set off and any and all defenses available to a surety, guarantor or accommodation co-obligor until the Obligations are indefeasibly paid in full in cash. Each Borrower acknowledges and agrees that this subordination
is intended to benefit Agent and Lenders and shall not limit or otherwise affect such Borrower’s liability hereunder or the enforceability of this Section 12, and that Agent, Lenders and their respective successors and assigns are
intended third party beneficiaries of the waivers and agreements set forth in this Section 12.4. 
  
 12.5 Election of Remedies. 
  
 If Agent or any Lender may, under applicable law, proceed to realize its benefits under any of the Loan Documents giving Agent or such Lender a Lien upon
any Collateral, whether owned by any Borrower or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement, Agent or any Lender may, at its sole option, determine which of its remedies or rights it may pursue without
affecting any of its rights and remedies under this Section 12. If, in the exercise of any of its rights and remedies, Agent or any Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment against
any Borrower or any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, each Borrower hereby consents to such action by Agent or such Lender and waives any claim based upon such action,
even if such action by Agent or such Lender shall 

  

 54 

 
result in a full or partial loss of any rights of subrogation that each Borrower might otherwise have had but for such action by Agent or such Lender. Any
election of remedies that results in the denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s obligation to pay the full amount of the Obligations. In
the event Agent or any Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or the Loan Documents, Agent or such Lender may bid all or less than the amount of the Obligations and the amount of such bid
need not be paid by Agent or such Lender but shall be credited against the Obligations. The amount of the successful bid at any such sale, whether Agent, Lender or any other party is the successful bidder, shall be conclusively deemed to be the fair
market value of the Collateral and the difference between such bid amount and the remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section 12, notwithstanding that any
present or future law or court decision or ruling may have the effect of reducing the amount of any deficiency claim to which Agent or any Lender might otherwise be entitled but for such bidding at any such sale. 
  
 12.6 Limitation. 
  
 Notwithstanding any provision herein contained to the contrary, each
Borrower’s liability under this Section 12 (which liability is in any event in addition to amounts for which such Borrower is primarily liable under Section 1) shall be limited to an amount not to exceed as of any date of
determination the greater of: 
  
 (a) the net
amount of all Loans advanced to any Borrower under this Agreement and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower; and 
  
 (b) the amount that could be claimed by Agent and Lenders from Borrowers under this Section 12 without rendering such claim
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among other
things, such Borrower’s right of contribution and indemnification from each other Borrower under Section 12.7. 
  
 12.7 Contribution with Respect to Guaranty Obligations. 
  

(a) To the extent that any Borrower or Guarantor shall make a payment under this Section 12 of all or any of the Obligations
(other than Loans made to that Borrower for which it is primarily liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments then previously or concurrently made by any other Credit Party, exceeds the amount
that such Credit Party would otherwise have paid if each Credit Party had paid the aggregate Obligations satisfied by such Guarantor Payment in the same proportion that such Borrower’s “Allocable Amount” (as, defined below) (as
determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of
the Obligations and termination of the Commitments, such Borrower shall be entitled 

  

 55 

 
to receive contribution and indemnification payments from, and be reimbursed by, each other Creditor Party for the amount of such excess, pro rata based upon
their respective Allocable Amounts in effect immediately prior to such Guarantor Payment. 
  
 (b) As of any date of determination, the “Allocable Amount” of any Borrower shall be equal to the maximum amount of the claim
that could then be recovered from such Borrower under this Section 12 without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law. 
  
 (c) This Section 12.7 is intended only to define the relative rights of the Borrowers and nothing set forth in this Section 12.7 is intended to or shall impair the obligations of Borrowers, jointly and
severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Agreement, including Section 12.1. Nothing contained in this Section 12.7 shall limit the liability of any Borrower to
pay the Loans made directly or indirectly to that Borrower and accrued interest, Fees and expenses with respect thereto for which such Borrower shall be primarily liable. 
  
 (d) The parties hereto acknowledge that the rights of contribution and indemnification hereunder shall
constitute assets of the Borrowers to which such contribution and indemnification is owing. 
  
 (e) The rights of the indemnifying Borrowers under this Section 12.7 shall be exercisable upon the full and indefeasible payment of
the Obligations and the termination of the Commitments. 
  
 12.8
Liability Cumulative. 
  
 The liability of Borrowers under
this Section 12 is in addition to and shall be cumulative with all liabilities of each Borrower to Agent and Lenders under this Agreement and the other Loan Documents to which such Borrower is a party or in respect of any Obligations or
obligation of the other Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. 
  

 56 

 IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first written above. 

 

			
	BORROWERS
	
	JOHNSTOWN AMERICA CORPORATION
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

	
	FREIGHT CAR SERVICES, INC.
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

	
	JAIX LEASING COMPANY
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

	
	JAC OPERATIONS, INC.
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

  
 SIGNATURE PAGE TO

 CREDIT AGREEMENT 
  

			
	AGENT AND LENDER
	
	 GENERAL ELECTRIC CAPITAL CORPORATION, 
 as Agent and Lender

		
	 	 	 /s/    General Electric Capital Corporation

	 	 	 Duly Authorized Signatory

  
 SIGNATURE PAGE TO

 CREDIT AGREEMENT 
  

 The following Persons are signatories to this Agreement in their capacity as Credit Party and not as a
Borrower. 
  

			
	JAC HOLDINGS INTERNATIONAL, INC.
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

	
	JAC INTERMEDCO, INC.
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

	
	JAC PATENT COMPANY
		
	By:	 	 /s/ Glen T. Karan

	 Name:
	 	 Glen T. Karan

	 Title:
	 	 Vice President – Finance and
 Administration, Secretary and Treasurer

  
 SIGNATURE PAGE TO

 CREDIT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]