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oil-driaug302022xsixtham

EXECUTION VERSION  Oil-Dri - Sixth Amendment to Credit Agreement.doc  1620467  SIXTH AMENDMENT TO CREDIT AGREEMENT   This Sixth Amendment to Credit Agreement (this “Amendment”) dated as of August 30, 2022, is  between Oil-Dri Corporation of America (the “Company”) and BMO Harris Bank N.A. (the “Bank”).  PRELIMINARY STATEMENTS   A. The Company, the Domestic Subsidiaries of the Company, and the Bank are parties to a  Credit Agreement dated as of January 27, 2006 (as amended and restated from time to time, the “Credit  Agreement”).  All capitalized terms used herein without definition shall have the same meanings herein as  such terms are defined in the Credit Agreement.   B. The Company and the Bank have agreed to amend the Credit Agreement under the terms  and conditions set forth in this Amendment.  SECTION 1. AMENDMENTS.    Upon satisfaction of the conditions precedent contained in Section 3 below, the Credit Agreement  shall be and hereby is amended to delete the stricken text (indicated textually in the same manner as the  following example: stricken text) and to add the double-underlined text (indicated textually in the same  manner as the following example: double-underlined text) as set forth in Annex A attached hereto (as  amended, the “Amended Credit Agreement”).  Bank hereby agrees that delivery of the amended and  restated Schedule 5.2 set forth in Annex A attached hereto fully satisfies any and all delivery or notice  requirements set forth in Section 7.16 of the Credit Agreement arising prior to the date hereof with respect  to any of the Subsidiaries formed or acquired and disclosed on such Schedule 5.2.   SECTION 2. REPRESENTATIONS.  In order to induce the Bank to execute and deliver this Amendment, the Company hereby  represents and warrants to the Bank that, after giving effect to this Amendment, (a) each of the  representations and warranties set forth in Section 5 of the Credit Agreement is true and correct in all  material respects (or in all respects to the extent subject to or qualified by materiality or similar concepts)  on and as of the date of this Amendment as if made on and as of the date hereof and as if each reference  therein to the Credit Agreement referred to the Amended Credit Agreement and (b) no Default or Event  of Default exists under the Credit Agreement.  SECTION 3. CONDITIONS PRECEDENT.   This Amendment shall become effective upon satisfaction of the following conditions precedent:   3.1. The Company and the Bank shall have executed and delivered this Amendment, and each  Guarantor shall have executed and delivered its consent to this Amendment in the space provided for that  purpose below.  

 

-2-   3.2. The Bank shall have received an upfront fee in an amount equal to $20,000, which fee shall  be fully-earned when due and non-refundable when paid.    3.3. The Bank shall have received a current good standing certificate for the Company and each  Guarantor from the jurisdiction where it is organized.   3.4. Legal matters incident to the execution and delivery of this Amendment shall be  satisfactory to the Bank and its counsel.  SECTION 4. MISCELLANEOUS.    4.1. Except as specifically amended hereby, the Credit Agreement shall continue in full force  and effect in accordance with its original terms.  Reference to this specific Amendment need not be made  in the Credit Agreement, the Note, or any other instrument or document executed in connection therewith,  or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit  Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the  Credit Agreement as amended hereby.   4.2. The Company agrees to pay on demand all costs and expenses of or incurred by the Bank in  connection with the negotiation, preparation, execution and delivery of this Amendment.   4.3. This Amendment may be executed in any number of counterparts, and by the different  parties on different counterpart signature pages, all of which taken together shall constitute one and the  same agreement.  Any of the parties hereto may execute this Amendment by signing any such counterpart  and each of such counterparts shall for all purposes be deemed to be an original.  Delivery of executed  counterparts of this Amendment by facsimile transmission or by e-mail transmission of a portable  document format file (also known as a “PDF” file) shall be effective as an original.  This Amendment  shall be governed by, and construed in accordance with, the internal laws of the State of Illinois.  [SIGNATURE PAGES TO FOLLOW]    

 

This Sixth Amendment to Credit Agreement is dated as of the date first above written.  OIL-DRI CORPORATION OF AMERICA, as the  Company  By S"4-M~  Name: Susan M. Kreh  Title: Chief Financial Officer  BMO HARRIS BANK N.A., as the Bank  By: _  Name:  Title:  [Signature Page to Sixth Amendment to Credit Agreement­  Oil-Dri Corporation of America]  

 

 

 

GUARANTORS' ACKNOWLEDGMENT, CONSENT, AND REAFFIRMATION  Each of the undersigned has heretofore guaranteed the due and punctual payment of all present  and future Obligations pursuant to Section 9 of the Credit Agreement and hereby consents to the Sixth  Amendment to the Credit Agreement as set forth above and confirms that all of the obligations of the  undersigned thereunder remain in full force and effect. Each of the undersigned further agrees that the  consent of the undersigned to any further amendments to the Credit Agreement shall not be required as a  result of this consent having been obtained. Each of the undersigned acknowledges that the Bank is  relying on the assurances provided for herein and entering into this Amendment and maintaining credit  outstanding to the Company under the Credit Agreement as so amended.  OIL-ORI CORPORATION OF GEORGIA  ByNa~~h~  Title: Vice President  MOUNDS PRODUCTION COMPANY, LLC  By Mounds Management, Inc.  Its Managing Member  By¿~WJ~  :Susan M. Kreh  Title: Vice President  OIL-ORI PRODUCTION COMPANY  By £~Wt~  Name: Susan M. Kreh  Title: Vice President  MOUNDS MANAGEMENT, INC.  By.:£Mk M~  Name: Susan M. Kreh 7  Title: Vice President  BLUE MOUNTAIN PRODUCTION COMPANY  By ¿[¿I/Wh k11 ~  N~anM.Kreh  Title: Vice President  AMLAN INTERNATIONAL  By~ht~  Name: Susan M. Krei  Title: Vice President  TAFT PRODUCTION COMPANY  Byc5u,4hWI~  Name: Susan M. Kreh  1  Title: Vice President  [Signature Page to Guarantors' Acknowledgment, Consent, and Reaffirmation -  Oil-Dri Corporation of America]  

 

    ANNEX A  AMENDED CREDIT AGREEMENT   [Attached].  

 

EXECUTION VERSION ANNEX A TO SIXTH AMENDMENT Oil-Dri, 6th Amend - Annex A to Fifth Amendment 4838-0040-5379- Conformed Credit Agreement 4858-8941-4674 v512.docx 1620467 CREDIT AGREEMENT1 BY AND AMONG OIL-DRI CORPORATION OF AMERICA,  THE GUARANTORS FROM TIME TO TIME PARTIES HERETO, AND BMO HARRIS BANK N.A. DATED AS OF JANUARY 27, 2006 1 Conformed Copy reflecting the updates provided in (i) that certain First Amendment to Credit Agreement, dated  as of December 19, 2008, (ii) that certain Second Amendment to Credit Agreement, dated as of December 21,  2011, (iii) that certain Third Amendment to Credit Agreement, dated as of June 21, 2012, (iv) that certain Fourth  Amendment to Credit Agreement, dated as of December 4, 2014, (v) that certain Fifth Amendment to Credit  Agreement, dated as of January 31, 2019, and (vi) that certain Sixth Amendment to Credit Agreement, dated as of  August 30, 2022. 

 

-i- TABLE OF CONTENTS SECTION DESCRIPTION PAGE SECTION 1. THE CREDITS ................................................................................................1 Section 1.1. Revolving Credit....................................................................................1 Section 1.2. Manner and Disbursement of Loans ......................................................1 Section 1.3. Letters of Credit .....................................................................................2 Section 1.4. Guaranties from Domestic Subsidiaries.................................................3 SECTION 2. INTEREST ON LOANS AND CHANGE IN CIRCUMSTANCES...............................3 Section 2.1. Interest Rate Options on Loans..............................................................3 Section 2.2. Minimum Amounts; Computation of Interest and Fees ........................5 Section 2.3. Manner of Rate Selection.......................................................................6 Section 2.4. Change of Law.......................................................................................6 Section 2.5. Unavailability of Deposits or Inability to Ascertain, or  Inadequacy of, Adjusted LIBORTerm SOFR........................................6 Section 2.6. Taxes and Increased Costs .....................................................................7 Section 2.7. Funding Indemnity.................................................................................8 Section 2.8. Lending Branch......................................................................................8 Section 2.9. Discretion of Bank as to Manner of Funding.........................................8 SECTION 3. FEES, PREPAYMENTS, PORTIONS, TERMINATIONS,  EXTENSIONS, APPLICATIONS AND CAPITAL ADEQUACY ...............................9 Section 3.1. Fees ........................................................................................................9 Section 3.2. Voluntary Prepayments..........................................................................9 Section 3.3. Mandatory Prepayment..........................................................................9 Section 3.3A. Mandatory Prepayment-Foreign Currency ..........................................10 Section 3.4. Terminations ........................................................................................10 Section 3.5. Place and Application of Payments .....................................................10 Section 3.6. Notations. .............................................................................................11 Section 3.7. Change in Capital Adequacy Requirements ........................................11 SECTION 4. DEFINITIONS; INTERPRETATION ..................................................................11 Section 4.1. Definitions............................................................................................11 Section 4.2. Interpretation....................................................................................2423 Section 4.3. Divisions ..............................................................................................23 SECTION 5. REPRESENTATIONS AND WARRANTIES........................................................24 Section 5.1. Organization and Qualification............................................................24 Section 5.2. Subsidiaries ..........................................................................................24 Section 5.3. Corporate Authority and Validity of Obligations ............................2524 Section 5.4. Use of Proceeds; Margin Stock............................................................25 Section 5.5. Financial Reports .................................................................................25 

 

-ii- Section 5.6. No Material Adverse Change...............................................................26 Section 5.7. Full Disclosure .....................................................................................26 Section 5.8. Good Title ............................................................................................26 Section 5.9. Litigation and Other Controversies......................................................26 Section 5.10. Taxes ....................................................................................................26 Section 5.11. Approvals.........................................................................................2726 Section 5.12. Affiliate Transactions.......................................................................2726 Section 5.13. Investment Company ...........................................................................27 Section 5.14. ERISA..................................................................................................27 Section 5.15. Compliance with Laws ........................................................................27 Section 5.16. Other Agreements ................................................................................27 Section 5.17. No Default........................................................................................2827 Section 5.18. Sanctions; Anti-Money Laundering Laws and  Anti-Corruption Laws......................................................................2827 SECTION 6. CONDITIONS PRECEDENT ............................................................................28 Section 6.1. All Advances........................................................................................28 Section 6.2. Initial Advance.....................................................................................29 SECTION 7. COVENANTS............................................................................................3029 Section 7.1. Maintenance of Business .....................................................................30 Section 7.2. Maintenance of Properties ...................................................................30 Section 7.3. Taxes and Assessments........................................................................30 Section 7.4. Insurance ..............................................................................................30 Section 7.5. Financial Reports .................................................................................30 Section 7.6. Inspection.............................................................................................32 Section 7.7. Indebtedness for Borrowed Money......................................................32 Section 7.8. Liens.....................................................................................................33 Section 7.9. Investments, Loans, Advances and Guaranties................................3433 Section 7.10. Mergers, Consolidations and Sales ......................................................35 Section 7.11. Maintenance of Subsidiaries ................................................................36 Section 7.12. ERISA..................................................................................................36 Section 7.13. Compliance with Laws ........................................................................36 Section 7.14. Burdensome Contracts With Affiliates............................................3736 Section 7.15. Change in the Nature of Business....................................................3736 Section 7.16. Formation of Subsidiaries ....................................................................37 Section 7.17. Financial Covenants.............................................................................37 Section 7.18. Compliance with Anti-Corruption Laws, Anti-Money  Laundering Laws and Sanctions ..........................................................37 SECTION 8. EVENTS OF DEFAULT AND REMEDIES .....................................................3837 Section 8.1. Events of Default. ............................................................................3837 Section 8.2. Non-Bankruptcy Defaults ................................................................4039 Section 8.3. Bankruptcy Defaults ........................................................................4039 

 

-iii- SECTION 9. THE GUARANTEES ..................................................................................4140 Section 9.1. The Guarantees ................................................................................4140 Section 9.2. Guarantee Unconditional .....................................................................41 Section 9.3. Discharge Only Upon Payment in Full; Reinstatement in  Certain Circumstances .....................................................................4241 Section 9.4. Subrogation ..........................................................................................42 Section 9.5. Waivers ................................................................................................42 Section 9.6. Limit on Recovery ...............................................................................42 Section 9.7. Stay of Acceleration.........................................................................4342 Section 9.8. Keepwell ..........................................................................................4342 SECTION 10. MISCELLANEOUS ........................................................................................43 Section 10.1. Holidays ...............................................................................................43 Section 10.2. No Waiver, Cumulative Remedies ......................................................43 Section 10.3. Amendments, Etc.................................................................................43 Section 10.4. Costs and Expenses..........................................................................4443 Section 10.5. Documentary Taxes .............................................................................44 Section 10.6. Survival of Representations .................................................................44 Section 10.7. Survival of Indemnities........................................................................44 Section 10.8. Notices .............................................................................................4544 Section 10.9. Construction.........................................................................................45 Section 10.10. Headings ..............................................................................................45 Section 10.11. Severability of Provisions ....................................................................45 Section 10.12. Counterparts.........................................................................................45 Section 10.13. Binding Nature, Governing Law, Etc ..............................................4645 Section 10.14. Submission to Jurisdiction;  Waiver of Jury Trial ...........................4645 Section 10.15. Patriot Act ........................................................................................4645 Signature ......................................................................................................................................471 Exhibit A — Revolving Note Exhibit B — Compliance Certificate Exhibit C — Guaranty Schedule 5.2 — Subsidiaries 

 

OIL-DRI CORPORATION OF AMERICA CREDIT AGREEMENT BMO Harris Bank N.A. Chicago, Illinois Ladies and Gentlemen: The undersigned, Oil-Dri Corporation of America, a Delaware corporation (the  “Company”), applies to you (the “Bank”) for your commitment, subject to the terms and  conditions hereof and on the basis of the representations and warranties hereinafter set forth, to  make a revolving credit (the “Revolving Credit”) available to the Company, all as more fully  hereinafter set forth. SECTION 1. THE CREDITS.  Section 1.1. Revolving Credit. Subject to the terms and conditions hereof, the Bank agrees  to extend a Revolving Credit to the Company which may be availed of by the Company from time  to time during the period from and including the date hereof to but not including the Termination  Date, at which time the commitment of the Bank to extend credit under the Revolving Credit shall  expire.  The Revolving Credit may be utilized by the Company in the form of loans (individually a  “Loan” and collectively the “Loans”) and Letters of Credit, provided that (a) the aggregate  principal amount of Loans and Letters of Credit outstanding at any one time shall not exceed  $45,000,000 (the “Revolving Credit Commitment”, as such amount may be reduced pursuant to  Section 3.4 hereof), and (b) as provided in Section 1.3(a), the aggregate amount of Letters of  Credit issued and outstanding hereunder shall not at any one time exceed the U.S. Dollar  Equivalent of $10,000,000.  Each Loan shall be in a minimum amount of $100,000 or such greater  amount which is an integral multiple of $25,000; provided, however, that Loans which bear  interest with reference to the Adjusted LIBORTerm SOFR or Offered Rate shall be in such greater  amount as is required by Section 2 hereof.  The Loans shall be made against and evidenced by a  single promissory note of the Company in the form (with appropriate insertions) attached hereto as  Exhibit A (the “Note”) payable to the order of the Bank in the principal amount of $45,000,000.   The Note shall be dated the date of issuance thereof and be expressed to bear interest as set forth in  Section 2 hereof.  The Note, and all Loans evidenced thereby, shall mature and be due and payable  in full on the Termination Date.  Without regard to the principal amount of the Note stated on its  face, the actual principal amount at any time outstanding and owing by the Company on account of  the Note shall be the sum of all Loans made under this Section less all payments of principal  actually received by the Bank.  During the period from and including the date hereof to but not  including the Termination Date, the Company may use the Revolving Credit Commitment by  borrowing, repaying and reborrowing Loans in whole or in part, all in accordance with the terms  and conditions of this Agreement.  Section 1.2. Manner and Disbursement of Loans.  The Company shall give written or  telephonic notice to the Bank (which notice shall be irrevocable once given and, if given by  telephone, shall be promptly confirmed in writing) by no later than 11:00 a.m. (Chicago time) on  the date the Company requests the Bank to make a Loan hereunder; provided, however, that  

 

-2- telephonic notice may only be given by an Authorized Representative.  Each such notice shall  specify (i) the date of the Loan requested (which must be a Business Day) and (ii) and the amount  of such Loan.  The Company agrees that the Bank may rely upon any written or telephonic notice  given by any person the Bank reasonably and in good faith believes is an Authorized  Representative without the necessity of independent investigation and, in the event any earlier  telephonic notice conflicts with the later written confirmation, such notice shall govern if the Bank  has acted in reasonable reliance thereon.  Subject to the provisions of Section 6 hereof, the  proceeds of each Loan shall be made available to the Company at the principal office of the Bank  in Chicago, Illinois, in immediately available funds.  Each Loan shall initially constitute part of the  Base Rate Portion except to the extent the Company has otherwise timely elected as provided in  Section 2 hereof.  Section 1.3. Letters of Credit. (a) General Terms.  Subject to the terms and conditions hereof, the Revolving Credit  Commitment may be availed of by the Company in the form of standby letters of credit issued by  the Bank for the account of the Company (individually a “Letter of Credit” and collectively the  “Letters of Credit”), provided that the aggregate amount of Letters of Credit (including the  Present Letters of Credit) issued and outstanding hereunder shall not at any one time exceed the  U.S. Dollar Equivalent of $10,000,000.  For purposes of this Agreement, a Letter of Credit shall be  deemed outstanding as of any time in an amount equal to the maximum amount which could be  drawn thereunder under any circumstances and over any period of time plus any unreimbursed  drawings then outstanding with respect thereto.  If and to the extent any Letter of Credit expires or  otherwise terminates without having been drawn upon, the availability under the Commitment  shall to such extent be reinstated.  The parties acknowledge and agree that the Present Letters of  Credit shall each constitute a “Letter of Credit” herein for all purposes of this Agreement to the  same extent, and with the same force and effect as if such Letter of Credit had been issued at the  request of the Company hereunder. (b) Term.  Each Letter of Credit issued hereunder shall expire not later than the earlier of  (i) twelve (12) months from the date of issuance (or be cancelable not later than twelve (12)  months from the date of issuance and each renewal) or (ii) 270 days after the Termination Date.   On the Termination Date, the Company hereby agrees to pay to the Bank without notice or demand  an amount equal to 103% of the Letters of Credit outstanding on such date (whether or not the  relevant Letters of Credit have been drawn upon) which amount shall be held by the Bank as  collateral security therefor ( and which cash collateral shall be accompanied by such security  documents as are then required by the Bank in its reasonable discretion) or the Company shall  provide a “back-up” letter of credit in a face amount equal to 103% of the Letters of Credit  outstanding on such date and otherwise in form and substance, and issued by an issuer, satisfactory  to the Bank in its reasonable discretion, as security for the repayment of any amounts owing with  respect to the Letters of Credit. (c) General Characteristics.  Each Letter of Credit issued hereunder shall be payable in  U.S. Dollars or an Available Foreign Currency, conform to the general requirements of the Bank  for the issuance of a standby letter of credit as to form and substance, and be a letter of credit which  the Bank may lawfully issue. 

 

-3- (d) Applications.  At the time the Company requests each Letter of Credit to be issued (or  prior to the first issuance of a Letter of Credit in the case of a continuing application), the Company  shall execute and deliver to the Bank an application for such Letter of Credit in the form then  customarily prescribed by the Bank (individually an “Application” and collectively the  “Applications”).  Subject to the other provisions of this subsection, the obligation of the Company  to reimburse the Bank for drawings under a Letter of Credit shall be governed by the Application  for such Letter of Credit.  In the event a drawing is paid on a Letter of Credit and the Company has  not notified the Bank by 11:00 a.m. (Chicago time) on the date when such drawing is paid that the  Company intends to repay such reimbursement obligation with funds not borrowed under this  Agreement, the Company shall be deemed to have irrevocably requested a Loan constituting a  Base Rate Portion on such day in the amount of the reimbursement obligation then due, in each  case subject to Section 6.1 hereof (other than the requirement that a Loan be in a certain minimum  amount), which new Loan shall be applied to pay the reimbursement obligation then due.   Anything contained in the Applications to the contrary notwithstanding, (i) in the event the Bank is  not reimbursed by the Company (whether out of the proceeds of such a Loan or otherwise) for the  amount the Bank pays on any amount drawn under a Letter of Credit issued hereunder by 2:00  p.m. (Chicago time) on the date when such drawing is paid, the obligation of the Company to  reimburse the Bank for the amount of such drawing paid shall bear interest (which the Company  hereby promises to pay on demand) from and after the date the drawing is paid until payment in  full thereof at the fluctuating rate per annum determined by adding 2% to the Base Rate as from  time to time in effect (computed on the basis of a year of 365 or 366 days, as the case may be, for  the actual number of days elapsed), (ii) the Company shall pay fees in connection with each Letter  of Credit as set forth in Section 3 hereof, and (iii) prior to the occurrence of an Event of Default the  Bank will not call for the funding of a Letter of Credit by the Company prior to being presented  with a drawing thereunder.   Section 1.4. Guaranties from Domestic Subsidiaries .  Payment of the Obligations shall  at all times be jointly and severally guaranteed by each Domestic Subsidiary pursuant hereto or  pursuant to a Guaranty issued by such Domestic Subsidiary; provided, however, that no such  guaranty shall be required from any Domestic Subsidiary which is an Inactive Subsidiary.  In the  event any Domestic Subsidiary is hereafter acquired or formed or any previously Inactive  Domestic Subsidiary ceases to be Inactive, the Company shall also cause such Domestic  Subsidiary to execute a Guaranty, together with such other instruments, documents, certificates  and opinions required by the Bank in connection therewith. SECTION 2. INTEREST ON LOANS AND CHANGE IN CIRCUMSTANCES. Section 2.1. Interest Rate Options on Loans.  (a) Subject to all of the terms and conditions  of this Section 2, portions of the principal indebtedness evidenced by the Note (all of the  indebtedness evidenced by the Note bearing interest at the same rate for the same period of time  being hereinafter referred to as a “Portion”) shall bear interest with reference to the Base Rate (the  “Base Rate Portion”) or, at the option of the Company subject to the terms and conditions hereof,  with reference to an Adjusted LIBORTerm SOFR (“LIBORSOFR Portions”) or with reference to  an Offered Rate (“Offered Rate Portions”), and Portions may be converted from time to time from  one basis to the other.  All of the indebtedness evidenced by the Note which is not part of a Fixed  Rate Portion shall constitute a single Base Rate Portion.  All of the indebtedness evidenced by the  

 

-4- Note which bears interest with reference to a particular Adjusted LIBORTerm SOFR for a  particular Interest Period shall constitute a single LIBORSOFR Portion.  All of the indebtedness  evidenced by the Note which bears interest with reference to a particular Offered Rate for a  particular Interest Period shall constitute a single Offered Rate Portion.  There shall not be more  than ten (10) Fixed Rate Portions applicable to the Note outstanding at any one time.  Anything  contained herein to the contrary notwithstanding, the obligation of the Bank to create, continue or  effect by conversion any Fixed Rate Portion shall be conditioned upon the fact that at the time no  Default or Event of Default shall have occurred and be continuing.  The Company hereby promises  to pay interest on each Portion at the rates and times specified in this Section 2.  (b) Base Rate Portion.  The Base Rate Portion shall bear interest at the rate per annum  determined by adding the Applicable Margin to the Base Rate as in effect from time to time,  provided that if the Base Rate Portion or any part thereof is not paid when due (whether by lapse of  time, acceleration or otherwise), or at the election of the Bank upon notice to the Company during  the existence of any other Event of Default, such Portion shall bear interest, whether before or after  judgment, until payment in full thereof at the rate per annum determined by adding 2% to the  interest rate which would otherwise be applicable thereto from time to time.  Interest on the Base  Rate Portion shall be payable quarter-annually on the last day of each March, June, September and  December, in each year (commencing on the first such date occurring after the date hereof) and at  maturity of the Note and interest after maturity (whether by lapse of time, acceleration or  otherwise) shall be due and payable upon demand.  Any change in the interest rate on the Base  Rate Portion resulting from a change in the Base Rate shall be effective on the date of the relevant  change in the Base Rate. (c) LIBORSOFR Portions.  Each LIBORSOFR Portion shall bear interest for each  Interest Period selected therefor at a rate per annum determined by adding the Applicable Margin  to the Adjusted LIBORTerm SOFR for such Interest Period, provided that if any LIBORSOFR  Portion is not paid when due (whether by lapse of time, acceleration or otherwise), or at the  election of the Bank upon notice to the Company during the existence of any other Event of  Default, such Portion shall bear interest, whether before or after judgment, until payment in full  thereof through the end of the Interest Period then applicable thereto at the rate per annum  determined by adding 2% to the interest rate which would otherwise be applicable thereto, and  effective at the end of such Interest Period such LIBORSOFR Portion shall automatically be  converted into and added to the Base Rate Portion and shall thereafter bear interest at the interest  rate applicable to the Base Rate Portion after default.  Interest on each LIBORSOFR Portion shall  be due and payable on the last day of each Interest Period applicable thereto and, with respect to  any Interest Period applicable to a LIBORSOFR Portion in excess of three (3) months, on the date  occurring every three (3) months after the date such Interest Period began and at the end of such  Interest Period, and interest after maturity (whether by lapse of time, acceleration or otherwise)  shall be due and payable upon demand.  The Company shall notify the Bank on or before 11:00  a.m. (Chicago time) on the third Business Day preceding the end of an Interest Period applicable to  a LIBORSOFR Portion whether such LIBORSOFR Portion is to continue as a LIBORSOFR  Portion, in which event the Company shall notify the Bank of the new Interest Period selected  therefor, and in the event the Company shall fail to so notify the Bank, such LIBORSOFR Portion  shall automatically be converted into and added to the Base Rate Portion as of and on the last day  of such Interest Period.   

 

-5- (d) Offered Rate Portions.  Each Offered Rate Portion shall bear interest for the Interest  Period selected therefor at the Offered Rate for such Interest Period, provided that if such Offered  Rate Portion is not paid when due (whether by lapse of time, acceleration or otherwise), or at the  election of the Bank upon notice to the Company during the existence of any other Event of  Default, such Portion shall bear interest, whether before or after judgment, until payment in full  thereof through the end of the Interest Period then applicable thereto at the rate per annum  determined by adding 2% to the interest rate which would otherwise be applicable thereto and  effective at the end of such Interest Period such Offered Rate Portion shall automatically be  converted into and added to the Base Rate Portion and shall thereafter bear interest at the interest  rate applicable to the Base Rate Portion after default.  Interest on each Offered Rate Portion shall  be due and payable on the last day of each Interest Period applicable thereto, and interest after  maturity (whether by lapse of time, acceleration or otherwise) shall be due and payable upon  demand.  The Company shall notify the Bank by 11:00 a.m. (Chicago time) on the Business Day  on which the Company requests that any Offered Rate Portion be created or that any part of the  Base Rate Portion or any part of a LIBORSOFR Portion be converted into an Offered Rate Portion  (each such notice to specify in each instance the amount thereof and the Interest Period selected  therefor).  Upon receipt of notice from the Bank of the Company’s request that an Offered Rate  Portion be created or effected by conversion, the Bank shall in its discretion quote an interest rate  to the Company at which the Bank would be willing to make the Offered Rate Portion available to  the Company for such Interest Period.  The Company understands and agrees that (i) the Bank has  no obligation to quote Offered Rates or to make any Offered Rate Portion available to the  Company, (ii) that the Bank may refuse to make any such Offered Rate Portion available to the  Company after receiving a request therefor from the Company and (iii) that any such Offered Rate  Portion made available to the Company shall be subject to such other terms and conditions as are  mutually agreed upon by the Company and the Bank.  If the Company accepts the Offered Rate so  quoted by the Bank, then the Company shall be irrevocably committed to take the Offered Rate  Portion on the date, in the amount and for the Interest Period requested by the Company and at the  Offered Rate quoted by the Bank.  The Company acknowledges and agrees that each interest rate  quote is given for immediate acceptance, and if the Company does not so immediately accept the  Offered Rate quoted on the terms and conditions specified by the Bank and in the amount and for  the Interest Period requested by the Company, the offer to make such Offered Rate Portion shall be  deemed immediately withdrawn and such Offered Rate Portion not created or effected by  conversion, as the case may be. Section 2.2. Minimum Amounts; Computation of Interest and Fees.   (a) Minimum Amounts.  Each LIBORSOFR Portion shall be in an amount equal to  $500,000 or such greater amount which is an integral multiple of $50,000.  Each Offered Rate  Portion shall be in an amount equal to $500,000 or such greater amount which is an integral  multiple of $50,000. (b) Computation of Interest and Fees.  All interest on each Fixed Rate Portion and the  Letter of Credit fees shall be computed on the basis of a year of 360 days for the actual number of  days elapsed.  All interest on the Base Rate Portion and the commitment fee shall be computed on  the basis of a year of 365 or 366 days, as the case may be, for the actual number of days elapsed. 

 

-6- Section 2.3. Manner of Rate Selection.  The Company shall notify the Bank by (i) 11:00  a.m. (Chicago time) at least three (3) Business Days prior to the date upon which the Company  requests that any LIBORSOFR Portion be created or that any part of the Base Rate Portion or any  part of an Offered Rate Portion be converted into a LIBORSOFR Portion (each such notice to  specify in each instance the amount thereof and the Interest Period selected therefor) and (ii) 11:00  a.m. (Chicago time) at least one (1) Business Day prior to the date upon which the Company  requests that any Offered Rate Portion be created or that any part of the Base Rate Portion or any  part of a LIBORSOFR Portion be converted into an Offered Rate Portion (each such notice to  specify in each instance the amount thereof and the Interest Period selected therefor).  If any  request is made to convert a Fixed Rate Portion into the Base Rate Portion, such conversion shall  only be made so as to become effective as of the last day of the Interest Period applicable thereto.   All requests for the creation, continuance and conversion of Portions under this Agreement shall  be irrevocable.  Such requests may be written or oral and the Bank is hereby authorized to honor  telephonic requests for creations, continuances and conversions received by it from any person the  Bank reasonably and in good faith believes to be an Authorized Representative without the need of  independent investigation, the Company hereby indemnifying the Bank from any liability or loss  ensuing from so acting. Section 2.4. Change of Law.  Notwithstanding any other provisions of this Agreement or  the Note, if at any time the Bank shall determine reasonably and in good faith that any change in  applicable laws, treaties or regulations or in the interpretation thereof makes it unlawful for the  Bank to create or continue to maintain any Fixed Rate Portion, it shall promptly so notify the  Company and the obligation of the Bank to create, continue or maintain any such Fixed Rate  Portion under this Agreement shall be suspended until it is no longer unlawful for the Bank to  create, continue or maintain such Fixed Rate Portion.  The Company, on demand, shall, if the  continued maintenance of any such Fixed Rate Portion is unlawful, thereupon prepay the  outstanding principal amount of the affected Fixed Rate Portion, together with all interest accrued  thereon and all other amounts payable to the Bank with respect thereto under this Agreement;  provided, however, that the Company may elect to convert the principal amount of the affected  Fixed Rate Portion into the Base Rate Portion, subject to the terms and conditions of this  Agreement.   Section 2.5. Unavailability of Deposits or Inability to Ascertain, or Inadequacy of,  Adjusted LIBORTerm SOFR.   Notwithstanding any other provision of this Agreement or the Note,  if prior to the commencement of any Interest Period, the Bank shall determine reasonably and in  good faith that deposits in the amount of any LIBORSOFR Portion scheduled to be outstanding  during such Interest Period are not readily available to the Bank in the interbank eurodollar market  or, by reason of circumstances affecting the interbank eurodollar market, adequate and reasonable  means do not exist for ascertaining the Adjusted LIBORTerm SOFR or that LIBORSOFR as  determined hereby will not adequately and fairly reflect the cost to the Bank of funding any  LIBORSOFR Portion for such Interest Period or that the making or funding of LIBORSOFR  Portions has become impracticable, then the Bank shall promptly give notice thereof to the  Company and the obligations of the Bank to create, continue or effect by conversion any such  LIBORSOFR Portion in such amount and for such Interest Period shall be suspended until  deposits in such amount and for the Interest Period selected by the Company shall again be readily  available in the interbank eurodollar market and adequate and reasonable means exist for  

 

-7- ascertaining the Adjusted LIBORTerm SOFR.  Section 2.6. Taxes and Increased Costs.  With respect to any Fixed Rate Portion, if the  Bank shall determine in good faith that any change in any applicable law, treaty, regulation or  guideline (including, without limitation, Regulation D of the Board of Governors of the Federal  Reserve System) or any new law, treaty, regulation or guideline, or any interpretation of any of the  foregoing by any governmental authority charged with the administration thereof or any central  bank or other fiscal, monetary or other authority having jurisdiction over the Bank or its lending  branch or the Fixed Rate Portions contemplated by this Agreement (whether or not having the  force of law), shall: (i) impose, increase, or deem applicable any reserve, special deposit or similar  requirement against assets held by, or deposits in or for the account of, or loans by, or any  other acquisition of funds or disbursements by, the Bank which is not in any instance  already accounted for in computing the interest rate applicable to such Fixed Rate Portion; (ii) subject the Bank, any Fixed Rate Portion or the Note to the extent it  evidences such a Portion to any tax (including, without limitation, any United States  interest equalization tax or similar tax however named applicable to the acquisition or  holding of debt obligations and any interest or penalties with respect thereto), duty, charge,  stamp tax, fee, deduction or withholding in respect of this Agreement, any Fixed Rate  Portion or the Note to the extent it evidences such a Portion, except such taxes as may be  measured by the overall net income or gross receipts of the Bank or its lending branches  and imposed by the jurisdiction, or any political subdivision or taxing authority thereof, in  which the Bank’s principal executive office or its lending branch is located; (iii) change the basis of taxation of payments of principal and interest due from  the Company to the Bank hereunder or under the Note to the extent it evidences any Fixed  Rate Portion (other than by a change in taxation of the overall net income or gross receipts  of the Bank); or (iv) impose on the Bank any penalty with respect to the foregoing or any other  condition regarding this Agreement, its disbursement, any Fixed Rate Portion or the Note  to the extent it evidences any Fixed Rate Portion; and the Bank shall determine reasonably and in good faith that the result of any of the foregoing is  to increase the cost (whether by incurring a cost or adding to a cost) to the Bank of creating or  maintaining any Fixed Rate Portion hereunder or to reduce the amount of principal or interest  received or receivable by the Bank (without benefit of, or credit for, any prorations, exemption,  credits or other offsets available under any such laws, treaties, regulations, guidelines or  interpretations thereof), then the Company shall pay on demand to the Bank from time to time as  specified by the Bank such additional amounts as are sufficient to compensate and indemnify it for  such increased cost or reduced amount.  If the Bank makes such a claim for compensation, it shall  provide to the Company a certificate setting forth the computation of the increased cost or reduced  amount as a result of any event mentioned herein in reasonable detail and such certificate shall be  prima facie correct.  

 

-8- Section 2.7. Funding Indemnity.  In the event the Bank shall incur any loss, cost or  expense (including, without limitation, any loss (including loss of profit), cost or expense incurred  by reason of the liquidation or reemployment of deposits or other funds acquired or contracted to  be acquired by the Bank to fund or maintain any Fixed Rate Portion or the relending or reinvesting  of such deposits or other funds or amounts paid or prepaid to the Bank) as a result of: (a) any payment of a Fixed Rate Portion on a date other than the last day of the  then applicable Interest Period for any reason, whether before or after default, and whether  or not such payment is required by any provisions of this Agreement, but in any event  excluding such a payment to the extent required by Section 2.4 hereof; or (b) any failure by the Company to create, borrow, continue or effect by  conversion a Fixed Rate Portion on the date specified in a notice given pursuant to this  Agreement unless such failure results from the Bank’s inability or unwillingness pursuant  to Sections 2.4 or 2.5 hereof to create, continue or effect by conversion such Fixed Rate  Portions; then upon the demand of the Bank, the Company shall pay to the Bank such amount as will  reimburse the Bank for such loss, cost or expense.  If the Bank requests such a reimbursement, it  shall provide to the Company a certificate setting forth the computation of the loss, cost or expense  giving rise to the request for reimbursement in reasonable detail and such certificate shall be prima  facie correct. Section 2.8. Lending Branch.  The Bank may, at its option, elect to make, fund or  maintain Portions of the Loans hereunder at such of its branches or offices as the Bank may from  time to time elect.  To the extent reasonably possible, the Bank shall designate an alternate branch  or funding office with respect to the Fixed Rate Portions to reduce any liability of the Company to  the Bank under Section 2.6 hereof or to avoid the unavailability of an interest rate option under  Section 2.5 hereof, so long as such designation is not otherwise disadvantageous to the Bank. Section 2.9. 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 maintain its funding of all  or any part of the Note in any manner it sees fit, it being understood, however, that for the purposes  of this Agreement all determinations hereunder (including, without limitation, determinations  under Sections 2.5, 2.6 and 2.7 hereof) shall be made as if the Bank had actually funded and  maintained each Fixed Rate Portion during each Interest Period applicable thereto through the  purchase of deposits in the interbank eurodollar market in the amount of such Fixed Rate Portion,  having a maturity corresponding to such Interest Period, and, in the case of any LIBORSOFR  Portion, bearing an interest rate equal to the LIBORTerm SOFR for such Interest Period.  SECTION 3. FEES, PREPAYMENTS, PORTION, TERMINATIONS, EXTENSIONS, APPLICATIONS  AND CAPITAL ADEQUACY. Section 3.1. Fees.  (a) Commitment Fees.   For the period from and including the Fifth Amendment  

 

-9- Effective Date to but not including the Termination Date, the Company shall pay to the Bank a  commitment fee at the rate per annum equal to the Applicable Margin for the commitment fee as  from time to time in effect on the average daily unused portion of the Revolving Credit  Commitment.  Such commitment fee shall be payable quarterly in arrears on the last day of each  March, June, September, and December in each year (commencing on the first such date occurring  after the date hereof) and on the Termination Date. (b) Letter of Credit Fees.  For the period from and including the Fifth Amendment  Effective Date to but not including the Termination Date, the Company shall pay to the Bank a fee  at a rate per annum equal to the Applicable Margin for Letter of Credit fees in effect as of the time  such fee is payable, on the average daily outstanding amounts during the preceding quarter of the  Letters of Credit which are standby letters of credit.  Such letter of credit fee shall be payable  quarterly in arrears on the last day of each March, June, September, and December in each year  (commencing on the first such date occurring after the date hereof) and on the Termination Date. (c) Letter of Credit Transaction Charges.  In addition to the Letter of Credit fee called for  by Section 3.1(b) hereof, the Company further agrees to pay to the Bank such issuing, processing  and transaction fees and charges as the Bank from time to time customarily imposes in connection  with any issuance, amendment, cancellation, negotiation, and/or payment of any Letter of Credit  and the drawings made thereunder. Section 3.2. Voluntary Prepayments. The Company shall have the privilege of prepaying  the Loans in whole or in part (but, if in part, then (i) if such Loan or Loans constitutes part of the  Base Rate Portion, in an amount not less than $ 50,000, (ii) if such Loan or Loans constitutes part  of a Fixed Rate Portion, in an amount not less than $ 50,000, and (iii) in each case, in an amount  such that the minimum amount required for a Loan pursuant to Sections 1.1 and 2.2(a) hereof  remain outstanding) at any time upon prior notice to the Bank (such notice if received subsequent  to 11:00 a.m. (Chicago time) on a given day to be treated as though received at the opening of  business on the next Business Day) by paying to the Bank the principal amount to be prepaid and  (i) if such a prepayment prepays the Note in full and is accompanied by the termination of the  Revolving Credit Commitment in whole, accrued interest thereon to the date of prepayment, and  (ii) in the case of any prepayment of a Fixed Rate Portion of the Loans, accrued interest thereon to  the date of prepayment plus any amounts due the Bank under Section 2.7 hereof. Section 3.3. Mandatory Prepayment.  If, within sixty (60) days after receiving notice  under Section 7.5(e) of a Change of Control Event, the Bank notifies the Company that the Bank  requires prepayment of the Obligations under the Loan Documents, on the date set forth in such  notice (which date shall be no earlier than (x) thirty (30) days after such notice is given or (y) the  day on which the Company or any Subsidiary repays any other Consolidated Total  DebtIndebtedness for Borrowed Money aggregating $1,000,000 or more before its original  scheduled due date or (z) the occurrence of such Change of Control Event, whichever day is  earlier), the Company shall pay in full all Obligations then outstanding under the Loan Documents,  including the prepayment of the Letters of Credit in the manner contemplated by Section 8.4  hereof, and the Revolving Credit Commitment shall terminate in full. Section 3.3A. Mandatory Prepayment-Foreign Currency.  If at any time the sum of the  

 

-10- Loans and the U.S. Dollar Equivalent of all Letters of Credit then outstanding shall be in excess of  the Revolving Credit Commitment, the Company shall immediately upon demand pay over the  amount of the excess to the Bank as and for a mandatory prepayment of the Obligations under the  Loan Documents, with each such prepayment first to be applied to the Loans until paid in full with  any remaining balance to be held by the Bank as collateral security for the Obligations owing  under the Loan Documents with respect to the Letters of Credit.   Section 3.4. Terminations.  The Company shall have the right at any time and from time  to time, upon three (3) Business Days’ prior notice to the Bank, to terminate without premium or  penalty and in whole or in part (but if in part, then in an amount not less than $500,000) the  Revolving Credit Commitment, provided that the Revolving Credit Commitment may not be  reduced to an amount less than the aggregate principal amount of the Loans and Letters of Credit  then outstanding.  Partial terminations of the Revolving Credit Commitment hereunder shall not  reduce the maximum amount of Letters of Credit permitted under Section 1.3(a) hereof unless and  until the Revolving Credit Commitment has been reduced to an amount less than $10,000,000, in  which event such maximum amount of Letters of Credit shall be equal to the Revolving Credit  Commitment.  Any termination of the Revolving Credit Commitment pursuant to this Section may  not be reinstated. Section 3.5. Place and Application of Payments.  All payments of principal, interest, fees  and all other Obligations payable hereunder and under the other Loan Documents shall be made to  the Bank at its office at 111 West Monroe Street, Chicago, Illinois (or at such other place as the  Bank may specify) no later than 2:00 p.m. (Chicago time) on the date any such payment is due and  payable.  Payments received by the Bank after 2:00 p.m. (Chicago time) shall be deemed received  as of the opening of business on the next Business Day.  All such payments shall be made in lawful  money of the United States of America, in immediately available funds at the place of payment,  without setoff or counterclaim and without reduction for, any and all present or future taxes, levies,  imposts, duties, fees, charges, deductions, withholdings, restrictions and conditions of any nature  imposed by any government or any political subdivision or taxing authority thereof (but excluding  any taxes imposed on or measured by the net income or gross receipts of the Bank).  Unless the  Company otherwise directs, except during the continuance of any Event of Default, principal  payments shall be first applied to the Base Rate Portion of the Note until payment in full thereof,  with any balance applied to the Fixed Rate Portions of the Note in the order in which their Interest  Periods expire. All payments on any Note (whether voluntary or required) shall be accompanied  by any amount due the Bank under Section 2.7 hereof, but no acceptance of such a payment  without requiring payment of amounts due under Section 2.7 shall preclude a later demand by the  Bank for any amount due it under Section 2.7 in respect of such payment.  Any amount paid or  prepaid on the Note may, subject to all of the terms and conditions hereof, be borrowed, repaid and  borrowed again.   Section 3.6. Notations.  All Loans made against the Note, the status of all amounts  evidenced by the Note as constituting part of the Base Rate Portion or a LIBORSOFR Portion or  an Offered Rate Portion, and in the case of any Fixed Rate Portion, the rates of interest and Interest  Periods applicable thereto shall be recorded by the Bank on its books and records or, at its option in  any instance, endorsed on a schedule to the Note and the unpaid principal balance and status, rates  and Interest Periods so recorded or endorsed by the Bank shall be evidence in any court or other  

 

-11- proceeding brought to enforce the Note of the principal amount remaining unpaid thereon, the  status of the Loans evidenced thereby and the interest rates and Interest Periods applicable thereto;  provided that the failure of the Bank to record any of the foregoing shall not limit or otherwise  affect the obligation of the Company to repay the principal amount of such Note together with  accrued interest thereon.  Prior to any negotiation of the Note, the Bank shall record on a schedule  thereto the status of all amounts evidenced thereby as constituting part of the Base Rate Portion or  a LIBORSOFR Portion or an Offered Rate Portion, and in the case of any Fixed Rate Portion, the  rates of interest and the Interest Periods applicable thereto. Section 3.7. Change in Capital Adequacy Requirements.  If the Bank shall determine that  the adoption after the date hereof of any applicable law, rule or regulation regarding capital  adequacy of banks generally, or any change in any existing law, rule or regulation, 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 the  Bank (or any of its branches) with any request or directive regarding capital adequacy of banks  generally (whether or not having the force of law) of any such authority, central bank or  comparable agency, has or would have the effect of reducing the rate of return on the Revolving  Credit or on the Bank’s capital as a consequence of its obligations hereunder with respect to the  Revolving Credit to a level below that which the Bank could have achieved but for such adoption,  change or compliance (taking into consideration the Bank’s policies with respect to liquidity and  capital adequacy) by an amount deemed by the Bank to be material, then from time to time, within  fifteen (15) days after demand by the Bank, the Company shall pay to the Bank such additional  amount or amounts reasonably determined by the Bank as will compensate the Bank for such  reduction. SECTION 4. DEFINITIONS; INTERPRETATION. Section 4.1. Definitions.  The following terms when used herein shall have the following  meanings: “Acquisition” means (i) the acquisition of all or any substantial part of the assets, property  or business of any other Person, or (ii) any acquisition of a majority of the common stock or other  equity securities of any Person. “Adjusted LIBOR” means a rate per annum determined by the Bank in accordance with the  following formula:Term SOFR” means, for purposes of any calculation, the per annum rate equal  to the sum of (i) Term SOFR for such calculation plus (ii) 0.10% (10 basis points) for one-month  Interest Periods, 0.15% (15 basis points) for three-month Interest Periods, and 0.25% (25 basis  points) for six-month Interest Periods; provided, further, that if Adjusted Term SOFR determined  as provided in the foregoing shall ever be less than the Floor, then Adjusted Term SOFR shall be  deemed to be the Floor. Adjusted LIBOR =                 LIBOR                   100%-Reserve Percentage “Reserve Percentage” means the maximum reserve percentage, expressed as a decimal, at which  

 

-12- reserves (including, without limitation, any emergency, marginal, special, and supplemental  reserves) are imposed by the Board of Governors of the Federal Reserve System (or any successor)  on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or any successor thereto),  subject to any amendments of such reserve requirement by such Board or its successor, taking into  account any transitional adjustments thereto.  For purposes of this definition, the relevant Portions  of the Loans shall be deemed to be “eurocurrency liabilities” as defined in Regulation D (or any  successor thereto) without benefit or credit for any prorations, exemptions or offsets under  Regulation D (or any successor thereto).  The Reserve Percentage shall be adjusted automatically  on and as of the effective date of any change in any such reserve percentage.  “LIBOR” means, for  each Interest Period, (a) the LIBOR Index Rate for such Interest Period, if such rate is available,  and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of  interest per annum (rounded upward, if necessary, to the nearest 1/100th of 1%) at which deposits  in U.S. Dollars in immediately available funds are offered to the Bank at 11:00 a.m. (London,  England time) 2 Business Days before the beginning of such Interest Period by 3 or more major  banks in the interbank eurodollar market selected by the Bank for a period equal to such Interest  Period and in an amount equal or comparable to the applicable LIBOR Portion scheduled to be  outstanding from the Bank during such Interest Period; provided that in no event shall “LIBOR”  be less than 0.00%.  “LIBOR Index Rate” means, for any Interest Period, the rate per annum  (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point)  for deposits in U.S. Dollars for a period equal to such Interest Period, as reported on the applicable  Bloomberg screen page (or such other commercially available source providing such quotations as  may be designated by the Bank from time to time) as of 11:00 a.m. (London, England time) on  such day (or, if such day is not a Business Day, on the immediately preceding Business Day).   Each determination of LIBOR made by the Bank shall be conclusive and binding absent manifest  error. “Affiliate” means any Person directly or indirectly controlling or controlled by, or under  direct or indirect common control with, another Person.  A Person shall be deemed to control  another Person for purposes of this definition if such Person possesses, directly or indirectly, the  power to direct, or cause the direction of, the management and policies of the other Person,  whether through the ownership of voting securities, common directors, trustees or officers, by  contract or otherwise. “Aggregate Cumulative Amount” means, as of any time, (a) with respect to Net Income,  the sum of the amounts (with one separate amount to be computed for each Defaulting  Insignificant Subsidiary and such amounts then added together to produce such sum) equal (for  each such Defaulting Insignificant Subsidiary) to the Net Income attributable to such Defaulting  Insignificant Subsidiary for the fiscal year of the Company immediately preceding the fiscal year  in which such Defaulting Insignificant Subsidiary first became a Defaulting Insignificant  Subsidiary and (b) with respect to Consolidated Total Assets, the sum of the amounts (with one  separate amount to be computed for each Defaulting Insignificant Subsidiary and such amounts  then added together to produce such sum) equal (for each such Defaulting Insignificant  Subsidiary) to the Consolidated Total Assets attributable to such Defaulting Insignificant  Subsidiary as of the close of the fiscal year of the Company immediately preceding the fiscal year  in which such Defaulting Insignificant Subsidiary first became a Defaulting Insignificant  Subsidiary. 

 

-13- “Agreement” means this Credit Agreement, as the same may be amended, modified or  restated from time to time in accordance with the terms hereof. “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction  applicable to the Company or any of its Subsidiaries from time to time concerning or relating to  bribery or corruption. “Anti-Money Laundering Laws” means any and all laws, statutes, regulations or obligatory  government orders, decrees, ordinances or rules applicable to the Company or its Subsidiaries  related to terrorism financing or money laundering, including any applicable provision of the  Patriot Act. “Applicable Margin” means, with respect to the Base Rate Portion, LIBORSOFR  Portions, the commitment fee payable under Section 3.1(a) hereof and the letter of credit fee  payable under Section 3.1(b) hereof shall mean the rate specified for such Obligation below,  subject to quarterly adjustment as hereinafter provided: WHEN  FOLLOW ING  STATUS  EXISTS  FOR ANY  MARGIN  DETERM INATION  DATE LEVEL DEBT TO EARNINGS RATIO APPLICABLE  MARGIN FOR  BASE RATE  PORTION IS: APPLICABL E MARGIN  FOR  LIBOR SOFR  PORTIONS  IS: APPLICABLE  MARGIN FOR  COMMITMENT  FEE IS: APPLICABLE  MARGIN FOR  LETTER OF  CREDIT FEE  IS: Level I  Status < 1.00:1.00 0.25% 1.25% 0.25% 1.25% Level II  Status ≥ 1.00:1.00 but < 2.00:1.00 0.50% 1.50% 0.25% 1.50% Level III  Status ≥ 2.00:1.00 0.75% 1.75% 0.25% 1.75% provided, however, that all of the foregoing is subject to the following: (i) the initial Applicable Margin in effect from the FifthSixth Amendment  Effective Date through the first Margin Determination Date following the FifthSixth  Amendment Effective Date shall be the Applicable Margin for Level III Status;   (ii) on or before the date that is five (5) Business Days after the latest date by  

 

-14- which the Company is required to deliver a Compliance Certificate to the Bank pursuant to  Section 7.5 hereof for each fiscal quarter of the Company (such date that is five (5)  Business Days after the latest date by which the Company is required to deliver a  Compliance Certificate to the Bank for the relevant fiscal quarter being herein referred to  as the “Margin Determination Date” for such fiscal quarter) (commencing with the first  fiscal quarter ending after the date hereof), the Bank shall determine whether Level I  Status, Level II Status or Level III Status exists as of the close of the applicable quarterly  accounting period, based upon the Compliance Certificate and financial statements  delivered to the Bank under Section 7.5 hereof for such accounting period, and shall  promptly notify the Company of such determination and of any change in the Applicable  Margin resulting therefrom.  Any such change in the Applicable Margin shall be effective  as of the related Margin Determination Date, with such new Applicable Margin to continue  in effect (subject to interim adjustment in the events and with the effects set forth in the  immediately following clause (iii)) until the next Margin Determination Date; (iii) if the Company has not delivered a Compliance Certificate by the date such  Compliance Certificate is required to be delivered under Section 7.5 hereof for a given  Margin Determination Date (a “Late Compliance Certificate”), the Applicable Margin  shall be the Applicable Margin for Level III Status unless and until a Compliance  Certificate is delivered for the next Margin Determination Date; provided, however, that if  the Company subsequently delivers the Late Compliance Certificate before such next  Margin Determination Date, the Applicable Margin shall be established by such Late  Compliance Certificate, shall take effect from the date of such late delivery and shall  remain effective until such next Margin Determination Date; and (iv) if and so long as any Event of Default has occurred and is continuing  hereunder, notwithstanding anything herein to the contrary, the Applicable Margin shall be  the Applicable Margin for Level III Status.  “Application” is defined in Section 1.4 hereof. “Authorized Representative” means those persons shown on the list of officers provided  by the Company pursuant to Section 6.2(a) hereof and so designated on such list, or on any update  of any such list provided by the Company to the Bank, or any further or different officer of the  Company so named and designated by any Authorized Representative of the Company in a written  notice to the Bank. “Available Foreign Currency” means any currency that is freely convertible to U.S.  Dollars and is readily available to, and approved by, the Bank.   “Bank” is defined in the introductory paragraph hereof. “Bank Products” means each and any of the following bank products and services  provided to the Company or any Guarantor by the Bank or any of its Affiliates:  (a) credit cards or  charge cards for commercial customers (including, without limitation, commercial credit cards  and purchasing cards), (b) stored value cards, and (c) depository, cash management, and treasury  

 

-15- management services (including, without limitation, controlled disbursement, automated  clearinghouse transactions, return items, overdrafts and interstate depository network services). “Bank Product Obligations” of the Company or any Guarantor means any and all of their  respective obligations, whether absolute or contingent and howsoever and whensoever created,  arising, evidenced or acquired (including all renewals, extensions and modifications thereof and  substitutions therefor) in connection with Bank Products. “Base Rate” means, for any day, the rate per annum equal to the greatest of:  (a) the rate of  interest announced or otherwise established by the Bank from time to time as its prime commercial  rate or its equivalent, for U.S. Dollar loans to borrowers located in the United States  as in effect on  such day, with any change in the Base Rate resulting from a change in said prime commercial rate  or its equivalent to be effective as of the date of the relevant change in said prime commercial rate  (it being acknowledged and agreed that such rate may not be the Bank’s best or lowest rate), (b) the  sum of (i) the rate determined by the Bank to be the average (rounded upward, if necessary, to the  next higher 1/100 of 1%) of the rates per annum quoted to the Bank at approximately 10:00 a.m.  (Chicago time) (or as soon thereafter as is practicable) on such day (or, if such day is not a  Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers  selected by the Bank for sale to the Bank at face value of Federal funds in the secondary market in  an amount equal or comparable to the principal amount for which such rate is being determined  (the “Federal Funds Rate”), plus (ii) 1/2 of 1%, and (c) the LIBOR Quoted Rate forsum of (i)  Term SOFR for a one-month tenor in effect on such day plus 1.00(ii) 1.10%.  As used herein,Any  change in the term “LIBOR QuotedBase Rate” means, for any day, the due to a change in the  Federal Funds Rate or Term SOFR, as applicable, shall be effective as of the effective date of the  change in such rate per annum equal to. If the quotient of (i) the rate per annum (rounded upwards,  if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S.  Dollars for a one-month interest period as reported on the applicable Bloomberg screen page (or  such other commercially available source providing such quotations as may be designated by the  Bank from time to time) as of 11:00 a.m. (London, England time) on such day (or, if such day is  not a Business Day, on the immediately preceding Business Day) divided byBase Rate is being  used as an alternative rate of interest pursuant to Section 2.5, then the Base Rate shall be the greater  of clauses (a) and (iib) oneabove and shall be determined without reference to clause (1c) minus  the Reserve Percentage;above, provided that in no eventif Base Rate as determined above shall the  “LIBOR Quoted Rate”ever be less than 0.0%the Floor, then Base Rate shall be deemed to be the  Floor.  “Base Rate Portion” is defined in Section 2.1(a) hereof. “Business Day” means any day other than a Saturday or Sunday on which the Bank is not  authorized or required to close in Chicago, Illinois and, when used with respect to LIBOR  Portions, a day on which the Bank is also dealing in United States Dollar deposits in London,  England and Nassau, Bahamas. “Capital Lease” means any lease of Property which in accordance with GAAP is required  to be capitalized on the balance sheet of the lessee.  At the option of the Company upon notice to  the Bank, notwithstanding any changes in GAAP, any lease of the Company or its Subsidiaries  

 

-16- that would be characterized as an operating lease under GAAP as in effect on the Fifth  Amendment Effective Date (whether such lease is entered into before or after the Fifth  Amendment Effective Date) shall not constitute a Capital Lease (and shall continue to be  characterized as an operating lease) under this Agreement as a result of such changes in GAAP. “Capitalized Lease Obligation” means the amount of the liability shown on the balance  sheet of any Person in respect of a Capital Lease as determined in accordance with GAAP. “Change of Control Event” means at any time: (i) any person or group of persons (within the meaning of Section 13 or 14 of  the Securities Exchange Act of 1934, as amended (the “Exchange Act”), but in any event  excluding the Jaffee Group and any other holders of the Class B Common Stock of the  Company as of the date of this Agreement) shall have acquired beneficial ownership  (within the meaning of Rule 13d-3 promulgated by the SEC under the Exchange Act) of  30% or more in voting power of the outstanding Voting Stock of the Company; or (ii) during any period of twenty-four consecutive months beginning after the  date of this Agreement, individuals who at the beginning of such period constitute the  Board of Directors of the Company (the “Board”) and any new director (other than a  director designated by a person who has entered into an agreement with the Company to  effect a transaction described in clause (i) of this Change of Control Event definition or a  transaction that would constitute an Event of Default under Section 7.12 hereof) whose  election or nomination for election was approved by a vote of at least two-thirds of the  directors then still in office who either were directors at the beginning of the period or  whose election or nomination for election was previously so approved cease for any reason  to constitute a majority of the Board. “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute  thereto. “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.),  as amended from time to time, and any successor statute. “Company” is defined in the introductory paragraph hereof. “Consolidated Capital Expenditures” means, for any period, capital expenditures (as  defined and classified in accordance with GAAP) during such period by the Company and its  Subsidiaries on a consolidated basis. “Consolidated Debt” means, at any time the same is to be determined, the sum (but  without duplication) of (a) all Indebtedness for Borrowed Money of the Company and its  Subsidiaries at such time, andplus (b) all Indebtedness for Borrowed Money of any other Person  which is directly or indirectly guaranteed by the Company or any of its Subsidiaries or which the  Company or any of its Subsidiaries has agreed (contingently or otherwise) to purchase or  otherwise acquire or in respect of which the Company or any of its Subsidiaries has otherwise  

 

-17- assured a creditor against loss; minus (c) unrestricted and unencumbered cash of the Company and  its Subsidiaries on deposit in accounts located in the United States on such date in an aggregate  amount not to exceed $15,000,000. “Consolidated EBITDA” means, with reference to any period, an amount equal to Net  Income for such period , 1. plus all amounts deducted (except in the case of clauses (l), (m) and (s) below) in  arriving at such Net Income amount in respect of (iwithout duplication) : a. Interest Expense for such period, plus (ii) ; b. federal, state and local income taxes paid, payable or accrued for such period,  plus (iii) ; c. all amounts properly charged for depreciation of fixed assets and amortization  of intangible assets during such period on the books of the Company and its  Subsidiaries.; “Consolidated EBITR” means, with reference to any period, Net Income for such period  plus (A) all amounts deducted in arriving at such Net Income amount in respect of (i) Interest  Expense for such period, plus (ii) federal, state and local income taxes for such period, plus (iii) the  lease and rental expense of the Company and its Subsidiaries for such period, minus (B) all  amounts included in arriving at such Net Income amount in respect of (i) interest income for such  period, plus (ii) gains on sales of fixed assets for such period. “Consolidated Fixed Charges” means, with reference to any period, Interest Expense for  such period, plus lease and rental expense of the Company and its Subsidiaries for such period,  minus interest income of the Company and its Subsidiaries for such period. “Consolidated Net Worth” means, at any time the same is to be determined, the total  shareholders’ equity (including capital stock, additional paid-in capital and retained earnings after  deducting treasury stock, but excluding minority interests in Subsidiaries) which would appear on  the balance sheet of the Company and its Subsidiaries determined on a consolidated basis in  accordance with GAAP.  d. a one-time non-cash goodwill impairment charge relating to the Retail and  Wholesale Reporting Segment in an amount equal to $5,644,000, taken during  the fiscal quarter ending April 30, 2022, and any subsequent period that  includes such fiscal quarter; e. unusual or non-recurring non-cash items; f. other non-cash charges, expenses or losses (other than write-downs or  write-offs of accounts receivables or inventory); g. all losses on sales of assets outside the ordinary course of business; h. restructuring and similar charges, non-compete costs, severance, relocation  

 

-18- costs, integration and facilities opening costs and other business optimization  expenses, synergies implementation costs, signing costs, retention or  completion bonuses, recruiting costs, transition costs, project start-up costs,  closing costs, costs related to implementation of accounting, operational and  reporting systems and technology initiatives (including associated with  modifying accounting procedures to comply with GAAP and sales and use  taxes), consulting and audit fees, system upgrades, costs related to  closure/consolidation of facilities or other transaction costs or other operational  changes or improvements; i. any earn-out payments paid in such period; j. currency translation losses and performance losses (in each case, net of gains)  relating to foreign currency transactions and currency fluctuations (including,  for the avoidance of doubt, any currency translation losses and foreign  exchange losses resulting from intercompany loans and other permitted  intercompany investments); k. reasonable and documented out-of-pocket costs, fees and expenses (including  legal, tax, structuring and other costs and expenses), or any amortization  thereof, associated with acquisitions (including non-consummated  acquisitions), other investments, dividends, dispositions, equity offering or any  amortization thereof, and issuances or amendments in respect of debt or equity  permitted under this Agreement, in each case whether or not consummated;  provided that all such out-of-pocket costs, fees and expenses (other than  consent, waiver or amendment fees paid to Bank and PGIM, Inc. and the other  purchasers under the Note Agreement and costs and expenses related to the  negotiation and documentation of consents, waivers or amendments to the Loan  Documents and Note Agreement, in each case in connection with such  acquisitions, investments, dividends, dispositions, or equity offerings or  issuances or amendments in respect of debt or equity) added pursuant to this  clause (1)(k) shall not exceed (for purposes of such calculation) (x) $1,000,000  per transaction for each such acquisition, investment, dividend, disposition, or  equity offering or issuance or amendment in respect of debt or equity that is not  consummated, (y) $1,000,000 solely with respect to the out-of-pocket costs,  fees and expenses related to the non-consummated Acquisition identified to the  Bank prior to the Sixth Amendment Effective Date as the “P-27 Acquisition”,  or (z) $1,500,000 per transaction for each such acquisition, investment,  dividend, disposition, or equity offering or issuance or amendment in respect of  debt or equity that is consummated; l. pro forma “run rate” cost savings, operating expense reductions and synergies  related to acquisitions, dispositions and other specified transactions, any  issuance, incurrence, assumption or permanent repayment of indebtedness  (including indebtedness issued, incurred or assumed as a result of, or to finance,  any relevant transaction and for which the financial effect is being calculated)  and all sales, transfers and other dispositions or discontinuance of any  

 

-19- Subsidiary, line of business or division, restructurings, cost savings initiatives  and other initiatives in each case previously undertaken (each, a “Specified  Transaction”), net of the amount of any actual savings, reductions and  synergies realized in such period, in each case, that are reasonably identifiable,  factually supportable and projected by the Company in good faith to be realized  within the first twelve (12) months after such Specified Transaction, pursuant  to a certificate of a responsible officer of the Company delivered to the Bank  certifying such amounts in good faith prior to being added to Consolidated  EBITDA; m. proceeds of business interruption insurance and charges, losses or expenses to  the extent indemnified, insured, reimbursed or reimbursable or otherwise  covered by an unaffiliated third party, in each case, to the extent received in  cash; n. one-time reasonable and documented out-of-pocket costs, fees and expenses  associated with the consummation of the transactions contemplated on the  Sixth Amendment Effective Date; provided that, the aggregate amount of such  costs, fees and expenses added pursuant to this clause (1)(n) shall not exceed  (for purposes of such calculation) $1,500,000 and such amounts are expended  up to six (6) months after the Sixth Amendment Effective Date; o. payments to employees, directors or officers of the Company (or any direct or  indirect parent thereof) or any of its Subsidiaries in connection with permitted  restricted payments to the extent such payments are not made in lieu of, or as a  substitution for, ordinary salary or ordinary payroll payments; p. minority interest expense, including expense or deduction attributable to  minority equity interests of third parties in any Subsidiary; q. reasonable and documented out-of-pocket charges, costs, or expenses in  connection with the rollover, acceleration or payout of equity interests held by  officers, directors, managers or employees; r. deferred purchase price payments of assets, securities, services or businesses  including earn-outs and contingent consideration obligations, payments in  respect of dissenting shares, and purchase price adjustments, made by such  Person during such period, in each case, in connection with any acquisition or  other investment permitted under the terms of this Agreement; s. adjustments reflected in any quality of earnings report prepared by a nationally  or regionally recognized accounting firm, in connection with any acquisition or  other investment permitted under the terms of this Agreement consummated  after the Sixth Amendment Effective Date;  t. non-recurring costs, expenses and losses incurred during such period  attributable to the termination or discontinuation of any business or operations;  and 

 

-20- u. reasonable and documented out-of-pocket expenses and fees (including  expenses and fees paid to Bank, PGIM, Inc. and the other purchasers under the  Note Agreement) incurred during such period and after the Sixth Amendment  Effective Date in connection with the consummation or administration of the  Loan Documents and the Note Agreement, including, but not limited to, any  amendment, consent or waiver. 2. minus, the following (without duplication): a. income, franchise and similar tax credits; b. unless accounted for in clause 1(b) above, non-cash charges previously added  back to Net Income in determining Consolidated EBITDA to the extent such  non-cash charges have become cash expenditures during such period;  c. unrealized gains resulting from mark-to-market accounting for hedging  activities;  and d. any other non-cash items increasing such Net Income (other than any such  non-cash items to the extent that it will result in the receipt of cash payments in  any future period). In any event, Consolidated EBITDA shall be calculated on a pro forma basis with respect  to any Specified Transaction, as if such Specified Transaction had occurred on the first day  of any applicable calculation period. The aggregate amount of add backs pursuant to clauses (1)(h) and (1)(l) above shall not,  before giving effect to such add backs, exceed an amount equal to 20% of Consolidated  EBITDA for the period of four consecutive fiscal quarters most recently ended prior to the  determination date. “Consolidated Total Assets” means, at any time the same is to be determined, the  aggregate of all assets of the Company and its Subsidiaries at such time as computed on a  consolidated basis in accordance with GAAP. “Controlled Group” means all members of a controlled group of corporations and all  trades and businesses (whether or not incorporated) under common control which, together with  the Company or any of its Subsidiaries, are treated as a single employer under Section 414 of the  Code. “Current Debt Maturities” means, with reference to any period, the aggregate amount of  payments required to made by the Company and its Subsidiaries during such period in respect of  principal on all Indebtedness for Borrowed Money (whether at maturity, as a result of mandatory  sinking fund redemption, mandatory prepayment, acceleration or otherwise), excluding any  principal payments required to be made by the Company and its Subsidiaries on the Note. “Debt to Earnings Ratio” means, as of any time, the ratio of (x) Consolidated Debt at such  

 

-21- time to (y) Consolidated EBITDA for the twelve then most recently completed calendar months.  “Default” means any event or condition the occurrence of which would, with the passage  of time or the giving of notice, or both, constitute an Event of Default. “Defaulting Insignificant Subsidiary” means an Insignificant Subsidiary which is the  subject of any Subsidiary Default on or at any time after the date hereof. “Designated Jurisdiction” means, at any time, any country, region or territory which is  itself the subject or target of any Sanctions.   “Domestic Subsidiary” means each Subsidiary other than a Foreign Subsidiary. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or  any successor statute thereto. “Event of Default” means any event or condition identified as such in Section 8.1 hereof. “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation  if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such  Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or  becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the  Commodity Futures Trading Commission (or the application or official interpretation of any  thereof) by virtue of such Guarantor’s failure for any reason not to constitute an “eligible contract  participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time  the guarantee of such Guarantor or the grant of such security interest becomes effective with  respect to such related Swap Obligation.  If a Swap Obligation arises under a master agreement  governing more than one swap, such exclusion shall apply only to the portion of such Swap  Obligation that is attributable to swaps for which such guarantee or security interest is or becomes  illegal.   “Fifth Amendment Effective Date” means January 31, 2019. “Fixed Charge Coverage Ratio” means, at any time the same is to be determined, the ratio  of (a) Consolidated EBITDA for the four (4) consecutive fiscal quarters of the Company then most  recently completed less Maintenance Capital Expenditures of the Company and its Subsidiaries  during such period to (b) Fixed Charges for the same four (4) consecutive fiscal quarters of the  Company then ended; provided that, for any period, the amount of Maintenance Capital  Expenditures subtracted from clause (a) above shall equal the lesser of (i) the amount of such  capital expenditures that are reasonably identifiable, factually supportable and disclosed in  reasonable detail within a certificate of a responsible officer of the Company delivered to Bank  and (ii) $16,500,000.  “Fixed Charges” means, with reference to any period for the Company and its  Subsidiaries on a consolidated basis, the sum of (a) all regularly scheduled payments of principal  paid in cash during such period with respect to Indebtedness for Borrowed Money of the Company  

 

-22- and its Subsidiaries (excluding mandatory prepayments), (b) regularly scheduled Interest Expense  paid in cash during such period, and (c) federal, state, and local income taxes (and franchise taxes  in lieu of income taxes) paid in cash by the Company and its Subsidiaries during such period. “Fixed Rate Portions” means and includes LIBORSOFR Portions and Offered Rates  Portions, unless the context in which such term is used shall otherwise require.  “Floor” means the rate per annum of interest equal to 0.00%. “Foreign Subsidiary” means (i) each Subsidiary of the Company which is organized under  the laws of a jurisdiction other than the United States of America or any State thereof and (ii) each  Subsidiary of the Company of which a majority of the revenues, earnings or total assets  (determined on a consolidated basis with that Subsidiary’s Subsidiaries) are located or derived  from operations outside the United States of America. “GAAP” means generally accepted accounting principles as in effect from time to time,  applied by the Company and its Subsidiaries on a basis consistent with the preparation of the  Company’s most recent financial statements furnished to the Bank pursuant to Section 5.5 hereof. “Guarantor” means each Domestic Subsidiary of the Company that is a signatory hereto  or that executes and delivers to the Bank a Guaranty along with the accompanying closing  documents required by Section 6.2 hereof. “Guaranty” means a letter to the Bank in the form of Exhibit C attached hereto executed  by a Subsidiary whereby it acknowledges it is party hereto as a Guarantor under Section 9 hereof. “Hedging Liability” means the liability of the Company or any Guarantor to the Bank in  respect of any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor,  forward, future or option agreement, or any other similar interest rate, currency or commodity  hedging arrangement, as the Company or such Guarantor, as the case may be, may from time to  time enter into with the Bank.   “Inactive Subsidiaries” means each Subsidiary of the Company which has no operations  and no assets other than the minimum amount of assets required under applicable state law to  maintain such Subsidiary’s corporate existence, but in no event more than $10,000 in assets. “Indebtedness for Borrowed Money” means for any Person (without duplication) (i) all  indebtedness created, assumed or incurred in any manner by such Person representing money  borrowed (including by the issuance of debt securities), (ii) all indebtedness for the deferred  purchase price of property or services, (iii) all indebtedness secured by any Lien upon Property of  such Person, whether or not such Person has assumed or become liable for the payment of such  indebtedness, (iv) all Capitalized Lease Obligations of such Person and (v) all obligations of such  Person on or with respect to letters of credit, bankers’ acceptances and other extensions of credit  whether or not representing obligations for borrowed money, in each case other than trade  accounts payable arising in the ordinary course of business. 

 

-23- “Insignificant Subsidiary” means any Subsidiary that is not a Significant Subsidiary. “Interest Expense” means, with reference to any period, the sum of all interest charges  (including imputed interest charges with respect to Capitalized Lease Obligations and all  amortization of debt discount and expense) of the Company and its Subsidiaries for such period  determined in accordance with GAAP. “Interest Period” means, with respect to (a) any LIBORSOFR Portion, the period  commencing on, as the case may be, the creation, continuation or conversion date with respect to  such LIBORSOFR Portion and ending one (1), two (2), three (3) or six (6) months thereafter as  selected by the Company in its notice as provided herein, and (b) any Offered Rate Portion, the  period commencing on, as the case may be, the creation, continuation or conversion date with  respect to such Offered Rate Portion and ending not less than seven (7) days to not more than thirty  (30) days thereafter as selected by the Company in its notice as provided herein; provided that all  of the foregoing provisions relating to Interest Periods are subject to the following: (i) if any Interest Period would otherwise end on a day which is not a Business  Day, that Interest Period shall be extended to the next succeeding Business Day, unless in  the case of an Interest Period for a LIBORSOFR Portion the result of such extension would  be to carry such Interest Period into another calendar month in which event such Interest  Period shall end on the immediately preceding Business Day; (ii) no Interest Period may extend beyond the final maturity date of the Note;  and (iii) the interest rate to be applicable to each Portion for each Interest Period  shall apply from and including the first day of such Interest Period to but excluding the last  day thereof. For purposes of determining an Interest Period, a month means a period starting on one day in a  calendar month and ending on a numerically corresponding day in the next calendar month,  provided, however, if an Interest Period begins on the last day of a month or if there is no  numerically corresponding day in the month in which an Interest Period is to end, then such  Interest Period shall end on the last Business Day of such month. “Jaffee Group” means the Jaffee Investment Partnership, L.P., and Richard M. Jaffee,  members of his immediate family and trusts for the benefit of any one or more of the foregoing. “Letter of Credit” is defined in Section 1.3(a) hereof. “Level I Status” means, for any Margin Determination Date, that as of the close of the most  recently completed calendar quarter with reference to which such Margin Determination Date was  set, the Debt to Earnings Ratio is less than 1.00 to 1.0. “Level II Status” means, for any Margin Determination Date, that as of the close of the  most recently completed calendar quarter with reference to which such Margin Determination  

 

-24- Date was set, the Debt to Earnings Ratio is greater than or equal to 1.00 to 1.0 but less than 2.00 to  1.0.   “Level III Status” means, for any Margin Determination Date, that as of the close of the  most recently completed calendar quarter with reference to which such Margin Determination  Date was set, the Debt to Earnings Ratio is greater than or equal to 2.00 to 1.0.  “LIBOR Portions” is defined in Section 2.1(a) hereof. “Lien” means any mortgage, lien, security interest, pledge, charge or encumbrance of any  kind in respect of any Property, including the interests of a vendor or lessor under any conditional  sale, Capital Lease or other title retention arrangement. “Loan” and “Loans” each is defined in Section 1.1 hereof. “Loan Documents” means this Agreement, the Note, the Applications, and the Guaranties,  and each other instrument or document to be delivered hereunder or thereunder or otherwise in  connection therewith. “Maintenance Capital Expenditures” means, for any period, the aggregate amount of  unfinanced Consolidated Capital Expenditures made during such period for the purpose of  maintaining, or extending the useful life of, any capital asset (which do not otherwise constitute  normal replacements and maintenance which are properly charged to current operations). “Margin Determination Date” is defined in the definition of Applicable Margin. “Material Plan” is defined in Section 8.1(g) hereof. “Net Income” means, with reference to any period, the net income (or net loss) of the  Company and its Subsidiaries for such period as computed on a consolidated basis in accordance  with GAAP, and, without limiting the foregoing, after deduction from gross income of all  expenses and reserves, including reserves for all taxes on or measured by income, but excluding  any extraordinary profits and also excluding any taxes on such profits. “Note” is defined in Section 1.1 hereof. “Note Agreement” is defined in Section 7.7(f) hereof.  “Obligations” means all obligations of the Company to pay principal and interest on the  Loans, all obligations of the Company to reimburse the Bank for drawings on Letters of Credit, all  fees and charges payable hereunder, all obligations of the Company or any Guarantor with respect  to any Bank Product Obligations, all obligations of the Company or any Guarantor with respect to  any Hedging Liability, and all other payment obligations of the Company arising under or in  relation to any Loan Document, in each case whether now existing or hereafter arising, due or to  become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired. 

 

-25- “OFAC” means the United States Department of Treasury Office of Foreign Assets  Control. “OFAC SDN List” means the list of the Specially Designated Nationals and Blocked  Persons maintained by OFAC.   “Offered Rate” means the rate per annum quoted to the Company by the Bank for the  applicable Interest Period, such Offered Rate being subject at all times to the provisions of Section  2.1(d) hereof.  “Offered Rate Portions” is defined in Section 2.1(a) hereof. “Patriot Act” means the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law  October 26, 2001)).  “PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to  any or all of its functions under ERISA. “Person” means an individual, partnership, corporation, limited liability company,  association, trust, unincorporated organization or any other entity or organization, including a  government or agency or political subdivision thereof. “Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject  to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a  member of the Controlled Group for employees of a member of the Controlled Group or (b) is  maintained pursuant to a collective bargaining agreement or any other arrangement under which  more than one employer makes contributions and to which a member of the Controlled Group is  then making or accruing an obligation to make contributions or has within the preceding five plan  years made contributions. “Portion” is defined in Section 2.1(a) hereof. “Present Letters of Credit” means those certain letters of credit issued by the Bank  described on Schedule 1.3 attached hereto and made a part hereof. “Property” means any interest in any kind of property or asset, whether real, personal or  mixed, or tangible or intangible. “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Guarantor  that has total assets exceeding $10,000,000 at the time the relevant guarantee or grant of the  relevant security interest becomes effective with respect to such Swap Obligation or such other  person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any  regulations promulgated thereunder and can cause another person to qualify as an “eligible  contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the  Commodity Exchange Act.  

 

-26- “Revaluation Date” means, with respect to any Letter of Credit denominated in an  Available Foreign Currency, (a) the date of issuance thereof, (b) the date of each amendment  thereto having the effect of increasing the amount thereof, (c) the last day of each calendar month,  and (d) each additional date as the Bank shall specify in a written notice to the Company.   “Revolving Credit” is defined in Section 1.1 hereof. “Revolving Credit Commitment” is defined in Section 1.1 hereof. “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list  of designated Persons maintained by OFAC (including the OFAC SDN List), the United States  Department of State, the United Nations Security Council, the European Union, any European  Union member state, Her Majesty’s Treasury of the United Kingdom, or any other relevant  sanctions authority, (b) any Person located, organized or resident in a Designated Jurisdiction or  (c) any Person controlled by any such Person or Persons described in clauses (a) or (b) above. “Sanctions” means all economic or financial sanctions, sectoral sanctions, secondary  sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the  United States government (including those administered by OFAC or the United States  Department of State) or (b) the United Nations Security Council, the European Union, any  European Union member state, Her Majesty’s Treasury of the United Kingdom, or any other  relevant sanctions authority. “SEC” means the Securities and Exchange Commission. “Significant Subsidiary” means at any time any Subsidiary that would at such time  constitute a “significant subsidiary” (as such term is defined in Regulation S-X of the SEC as in  effect on the date hereof) of the Company. “Sixth Amendment Effective Date” means August 30, 2022. “SOFR” means a rate equal to the secured overnight financing rate as administered by the  Federal Reserve Bank of New York) or a successor administrator of the secured overnight  financing rate).  “SOFR Portions” is defined in Section 2.1(a) hereof. “Subsidiary” means any corporation or other Person more than 50% of the outstanding  ordinary voting shares or other equity interests of which is at the time directly or indirectly owned  by the Company, by one or more of its Subsidiaries, or by the Company and one or more of its  Subsidiaries. “Subsidiary Defaults” is defined in Section 8.5 hereof. “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform  under any agreement, contract or transaction that constitutes a “swap” within the meaning of  

 

-27- Section 1a(47) of the Commodity Exchange Act. “Term SOFR” means the Term SOFR Reference Rate on the day (such day, the “Term  SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to (a)  in the case of SOFR Portions, the first day of such Interest Period, or (b) with respect to the Base  Rate Portion, such day of determination of the Base Rate, in each case as such rate is published by  the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on  any Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has  not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR  Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding  U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such  tenor was published by the Term SOFR Administrator so long as such first preceding U.S.  Government Securities Business Day is not more than three (3) U.S. Government Securities  Business Days prior to such Term SOFR Determination Day.  “Term SOFR Administrator” means CME Group Benchmark Administration Limited  (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Bank in its  reasonable discretion). “Term SOFR Reference Rate” means the per annum forward-looking term rate based on  SOFR. “Termination Date” means JanuaryAugust 3130, 20242027, or such earlier date on which  the Revolving Credit Commitment is terminated in whole pursuant to Section 3.4, 8.2 or 8.3  hereof. “Total Capitalization” means, at any time the same is to be determined, the sum of  Consolidated Debt plus Consolidated Net Worth. “Unfunded Vested Liabilities” means, for any Plan at any time, the amount (if any) by  which the present value of all vested nonforfeitable accrued benefits under such Plan exceeds the  fair market value of all Plan assets allocable to such benefits, all determined as of the then most  recent valuation date for such Plan, but only to the extent that such excess represents a potential  liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. “U.S. Dollar Equivalent” means (a) the amount of any Letter of Credit denominated in  U.S. Dollars, and (b) in relation to any Letter of Credit denominated in an Available Foreign  Currency, the amount of U.S. Dollars which would be realized by converting the relevant  Available Foreign Currency into U.S. Dollars in the spot market at the exchange rate quoted by the  Bank, at approximately 11:00 a.m. (London time) on any Revaluation Date, to major banks in the  interbank foreign exchange market for the purchase of U.S. Dollars for such Available Foreign  Currency. “U.S. Dollars” and “$” each means the lawful currency of the United States of America. “U.S. Government Securities Business Day” means any day except for (i) a Saturday, (ii) a  

 

-28- Sunday or (iii) a day on which the Securities Industry and Financial Markets Association  recommends that the fixed income departments of its members be closed for the entire day for  purposes of trading in United States government securities. “Voting Stock” of any Person means the capital stock of any class or classes or other equity  interests (however designated) having ordinary voting power for the election of directors or similar  governing body of such Person, other than stock or other equity interests having such power only  by reason of the happening of a contingency. “Welfare Plan” means a “welfare plan” as defined in Section 3(1) of ERISA. “Wholly-Owned Subsidiary” means a Subsidiary of which all of the issued and  outstanding shares of capital stock (other than directors’ qualifying shares as required by law) or  other equity interests are owned by the Company directly or indirectly through one or more  Wholly-Owned Subsidiaries within the meaning of this definition. Section 4.2. Interpretation.  The foregoing definitions are equally applicable to both the  singular and plural forms of the terms defined.  The words “hereof”, “herein”, and “hereunder”  and words of like import when used in this Agreement shall refer to this Agreement as a whole and  not to any particular provision of this Agreement.  All references to time of day herein are  references to Chicago, Illinois time unless otherwise specifically provided.  Where the character or  amount of any asset or liability or item of income or expense is required to be determined or any  consolidation or other accounting computation is required to be made for the purposes of this  Agreement, it shall be done in accordance with GAAP except where such principles are  inconsistent with the specific provisions of this Agreement. Section 4.3. Divisions.  For all purposes under the Loan Documents, in connection with  any division or plan of division under Delaware law (or any comparable event under a different  jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset,  right, obligation or liability of a different Person, then it shall be deemed to have been transferred  from the original Person to the subsequent Person, and (b) if any new Person comes into existence,  such new Person shall be deemed to have been organized on the first date of its existence by the  holders of its equity interests at such time. SECTION 5. REPRESENTATIONS AND WARRANTIES. The Company represents and warrants to the Bank as follows: Section 5.1. Organization and Qualification.  The Company is duly organized, validly  existing and in good standing as a corporation under the laws of the State of Delaware, has full and  adequate corporate power to own its Property and conduct its business as now conducted, and is  duly licensed or qualified and in good standing in each jurisdiction in which the nature of the  business conducted by it or the nature of the Property owned or leased by it requires such licensing  or qualifying, except where the failure to be so licensed or qualified would not have a material  adverse effect on the financial condition, Properties, business or operations of the Company and its  Subsidiaries, taken as a whole. 

 

-29- Section 5.2. Subsidiaries.  Each Subsidiary is duly organized, validly existing and in good  standing under the laws of the jurisdiction in which it is incorporated or organized, as the case may  be, has full and adequate power to own its Property and conduct its business as now conducted,  and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the  business conducted by it or the nature of the Property owned or leased by it requires such licensing  or qualifying, except where the failure to be so licensed or qualified would not have a material  adverse effect on the financial condition, Properties, business or operations of the Company and its  Subsidiaries, taken as a whole.  Schedule 5.2 hereto identifies each Subsidiary, the jurisdiction of  its incorporation or organization, as the case may be, the percentage of issued and outstanding  shares of each class of its capital stock or other equity interests owned by the Company and the  Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as  required by law), a description of each class of its authorized capital stock and other equity  interests and the number of shares of each class issued and outstanding and whether or not such  Subsidiary is a Significant Subsidiary or Inactive Subsidiary.  All of the outstanding shares of  capital stock and other equity interests of each Subsidiary are validly issued and outstanding and  fully paid and nonassessable and all such shares and other equity interests indicated on Schedule  5.2 as owned by the Company or a Subsidiary are owned, beneficially and of record, by the  Company or such Subsidiary free and clear of all Liens.  There are no outstanding commitments or  other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person  to acquire, any shares of any class of capital stock or other equity interests of any Subsidiary. Section 5.3. Corporate Authority and Validity of Obligations.  (a) The Company has full  right and authority to enter into this Agreement and the other Loan Documents, to make the  borrowings herein provided for, to issue its Note in evidence thereof, and to perform all of its  obligations hereunder and under the other Loan Documents.  The Loan Documents delivered by  the Company have been duly authorized, executed and delivered by the Company and constitute  valid and binding obligations of the Company enforceable in accordance with their terms except as  enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws  affecting creditors’ rights generally and general principles of equity (regardless of whether the  application of such principles is considered in a proceeding in equity or at law); and this  Agreement and the other Loan Documents do not, nor does the performance or observance by the  Company of any of the matters and things herein or therein provided for, contravene or constitute a  default under any provision of law or any judgment, injunction, order or decree binding upon the  Company or any provision of the charter, articles of incorporation or by-laws of the Company or  any covenant, indenture or agreement of or affecting the Company or any of its Properties, or  result in the creation or imposition of any Lien on any Property of the Company. (b) Subsidiaries.  Each Subsidiary executing a Loan Document has full right, power  and authority to enter into the Loan Documents executed and delivered by it and to perform all of  its obligations thereunder.  The Loan Documents delivered by each Subsidiary have been duly  authorized, executed and delivered by each Subsidiary and constitute valid and binding obligations  of the each Subsidiary enforceable in accordance with their terms except as enforceability may be  limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’  rights generally and general principles of equity (regardless of whether the application of such  principles is considered in a proceeding in equity or at law); and the other Loan Documents  delivered by each Subsidiary do not, nor does the performance or observance by each Subsidiary  

 

-30- of any of the matters and things therein provided for, contravene or constitute a default under any  provision of law or any judgment, injunction, order or decree binding upon each Subsidiary or any  provision of the organizational documents (e.g., charter, certificate or articles of incorporation and  by-laws, certificate or articles of association and operating agreement, partnership agreement, or  other similar organizational documents) of any or any covenant, indenture or agreement of or  affecting each Subsidiary or any of its Properties, or result in the creation or imposition of any Lien  on any Property of each Subsidiary. Section 5.4. Use of Proceeds; Margin Stock.  The Company shall use the proceeds of the  Loans solely for general corporate purposes and for such other legal and proper purposes as are  consistent with all applicable laws.  Neither the Company nor any Subsidiary is engaged in the  business of extending credit for the purpose of purchasing or carrying margin stock (within the  meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of  the proceeds of any Loan will be used to purchase or carry any such margin stock or to extend  credit to others for the purpose of purchasing or carrying any such margin stock. Section 5.5. Financial Reports.  The consolidated balance sheet of the Company and its  Subsidiaries as at July 31, 2005, and the related consolidated statements of income, retained  earnings and cash flows of the Company and its Subsidiaries for the fiscal year then ended, and  accompanying notes thereto, which financial statements are accompanied by the audit report of  PricewaterhouseCoopers LLP, independent public accountants, heretofore furnished to the Bank,  fairly present the consolidated financial condition of the Company and its Subsidiaries as at said  date and the consolidated results of their operations and cash flows for the period then ended in  conformity with generally accepted accounting principles applied on a consistent basis; subject, in  the case of an unaudited interim consolidated balance sheet, to year-end adjustments, and provided  that such unaudited interim consolidated balance sheet was prepared without footnotes. Section 5.6. No Material Adverse Change.  Since July 31, 2005, there has been no change  in the condition (financial or otherwise) or business prospects of the Company or any Subsidiary  except those occurring in the ordinary course of business, none of which individually or in the  aggregate have been materially adverse to the Company and its Subsidiaries, taken as a whole. Section 5.7. Full Disclosure.  The statements and information furnished to the Bank in  connection with the negotiation of this Agreement and the other Loan Documents and the  commitment by the Bank to provide all or part of the financing contemplated hereby do not contain  any untrue statements of a material fact or omit a material fact necessary to make the material  statements contained herein or therein not misleading, the Bank acknowledging that as to any  projections furnished to the Bank, the Company only represents that the same were prepared on the  basis of information and estimates the Company believed to be reasonable. Section 5.8. Good Title.  The Company and its Subsidiaries each have good and  defensible title to their assets as reflected on the most recent consolidated balance sheet of the  Company and its Subsidiaries furnished to the Bank (except for sales of assets by the Company  and its Subsidiaries in the ordinary course of business), subject to no Liens other than such thereof  as are permitted by Section 7.8 hereof. 

 

-31- Section 5.9. Litigation and Other Controversies.  There is no litigation or governmental  proceeding or labor controversy pending, nor to the knowledge of the Company threatened,  against the Company or any Subsidiary which if adversely determined would (a) impair the  validity or enforceability of, or impair the ability of the Company to perform its obligations under,  this Agreement or any other Loan Document or (b) result in any material adverse change in the  financial condition, Properties, business or operations of the Company and its Subsidiaries, taken  as a whole. Section 5.10. Taxes.  All tax returns required to be filed by the Company or any Subsidiary  in any jurisdiction have, in fact, been filed, except where the failure to file such tax returns would  not have a material adverse effect on the financial condition, Properties, business or operations of  the Company and its Subsidiaries, taken as a whole, and all taxes, assessments, fees and other  governmental charges upon the Company or any Subsidiary or upon any of their respective  Properties, income or franchises, which are shown to be due and payable in such returns, have  been paid.  The Company does not know of any proposed additional tax assessment against it or its  Subsidiaries for which adequate provision in accordance with GAAP has not been made on its  accounts.  Adequate provisions in accordance with GAAP for taxes on the books of the Company  and each Subsidiary have been made for all open years, and for its current fiscal period. Section 5.11. Approvals.  No authorization, consent, license, or exemption from, or filing  or registration with, any court or governmental department, agency or instrumentality, nor any  approval or consent of the stockholders of the Company or any other Person, is or will be  necessary to the valid execution, delivery or performance by the Company of this Agreement or  any other Loan Document. Section 5.12. Affiliate Transactions.  Neither the Company nor any Subsidiary is a party to  any contracts or agreements with any of its Affiliates (other than with Wholly-Owned  Subsidiaries) on terms and conditions which are less favorable to the Company or such Subsidiary  than would be usual and customary in similar contracts or agreements between Persons not  affiliated with each other. Section 5.13. Investment Company; .  Neither the Company nor any Subsidiary is an  “investment company” or a company “controlled” by an “investment company” within the  meaning of the Investment Company Act of 1940, as amended. Section 5.14. ERISA.  The Company and each other member of its Controlled Group has  fulfilled its obligations under the minimum funding standards of and is in compliance in all  material respects with ERISA and the Code to the extent applicable to it and has not incurred any  liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for  premiums under Section 4007 of ERISA.  Neither the Company nor any Subsidiary has any  contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than  liability for continuation coverage described in article 6 of Title I of ERISA. Section 5.15. Compliance with Laws.  The Company and its Subsidiaries each are in  compliance with the requirements of all federal, state and local laws, rules and regulations  applicable to or pertaining to their Properties or business operations (including, without limitation,  

 

-32- the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and  laws and regulations establishing quality criteria and standards for air, water, land and toxic or  hazardous wastes and substances), non-compliance with which could have a material adverse  effect on the financial condition, Properties, business or operations of the Company and its  Subsidiaries, taken as a whole.  Neither the Company nor any Subsidiary has received notice to the  effect that its operations are not in compliance with any of the requirements of applicable federal,  state or local environmental, health and safety statutes and regulations or are the subject of any  governmental investigation evaluating whether any remedial action is needed to respond to a  release of any toxic or hazardous waste or substance into the environment, which non-compliance  or remedial action could have a material adverse effect on the financial condition, Properties,  business or operations of the Company and its Subsidiaries, taken as a whole. Section 5.16. Other Agreements.  Neither the Company nor any Subsidiary is in default  under the terms of any covenant, indenture or agreement of or affecting the Company, any  Subsidiary or any of their Properties, which default if uncured would have a material adverse  effect on the financial condition, Properties, business or operations of the Company and its  Subsidiaries, taken as a whole. Section 5.17. No Default.  No Default or Event of Default has occurred and is continuing. Section 5.18. Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws  (a)  None of the Company, any of its Subsidiaries, or to the knowledge of the Company, any director or  officer of the Company or any of its Subsidiaries, is a Sanctioned Person or currently the subject or  target to any Sanctions. (b) The Company, its Subsidiaries and, to the knowledge of the Company, their  respective directors and officers, are in compliance with all applicable Anti-Corruption Laws,  Anti-Money Laundering Laws and Sanctions in all material respects. (c) The Company and its Subsidiaries have instituted and maintain in effect policies and  procedures reasonably designed to ensure compliance with all applicable Anti-Corruption Laws,  Anti-Money Laundering Laws and Sanctions. SECTION 6. CONDITIONS PRECEDENT. The obligation of the Bank to make any Loan or issue any Letter of Credit under this  Agreement is subject to the following conditions precedent: Section 6.1. All Advances.  As of the time of the making of each extension of credit  (including the initial extension of credit) hereunder: (a) each of the representations and warranties set forth in Section 5 hereof and  in the other Loan Documents shall be true and correct as of such time in all material  respects (or in all respects to the extent subject to or qualified by materiality or similar  concepts), except to the extent the same expressly relate to an earlier date; 

 

-33- (b) no Default or Event of Default shall have occurred and be continuing or  would occur as a result of making such Loan;  (c) after giving effect to such extension of credit, the aggregate principal  amount of all Loans and Letters of Credit outstanding under this Agreement shall not  exceed the Revolving Credit Commitment; (d) in the case of the issuance of any Letter of Credit, the Bank shall have  received a properly completed Application therefor together with the fees called for  hereby; and (e) such Loan shall not violate any order, judgment or decree of any court or  other authority or any provision of law or regulation applicable to the Bank (including,  without limitation, Regulation U of the Board of Governors of the Federal Reserve  System) as then in effect. The Company’s request for any Loan or Letter of Credit shall constitute its warranty as to the  foregoing effects. Section 6.2. Initial Advance.  At or prior to the making of the initial extension of credit  hereunder, the following conditions precedent shall also have been satisfied: (a) the Bank shall have received the following (each to be properly executed  and completed) and the same shall have been approved as to form and substance by the  Bank: (i) this Agreement duly executed and delivered by the Company and  each Domestic Subsidiary party hereto as a guarantor; (ii) the Note from the Company  (iii) copies (executed or certified, as may be appropriate) of all legal  documents or proceedings taken in connection with the execution and delivery of  this Agreement and the other Loan Documents to the extent the Bank or its counsel  may reasonably request; (iv) an incumbency certificate containing the name and title of each of  the Company’s Authorized Representatives; (v) evidence of insurance required by Section 7.4 hereof; and (b) the Bank shall have received such valuations and certifications as it may  require in order to satisfy itself as to the financial condition of the Company and its  Subsidiaries, and the lack of material contingent liabilities of the Company and its  Subsidiaries; 

 

-34- (c) legal matters incident to the execution and delivery of this Agreement and  the other Loan Documents and to the transactions contemplated hereby shall be  satisfactory to the Bank and its counsel; and the Bank shall have received the favorable  written opinion of counsel for the Company and each Guarantor in form and substance  satisfactory to the Bank and its counsel; (d) the Bank shall have received a good standing certificate for the Company  and each Guarantor (dated as of the date no earlier than December 1, 2005) from the office  of the secretary of state of the state of its incorporation; and (e) such other agreements, instruments, documents, certificates and opinions as  the Bank may reasonably request. SECTION 7. COVENANTS. The Company agrees that, so long as any credit is available to or in use by the Company  hereunder, except to the extent compliance in any case or cases is waived in writing by the Bank: Section 7.1. Maintenance of Business.  The Company shall, and shall cause each  Subsidiary to, preserve and maintain its existence.  The Company shall, and shall cause each  Subsidiary to, preserve and keep in force and effect all licenses, permits and franchises necessary  to the proper conduct of its business.  The foregoing to the contrary notwithstanding, this Section  7.1 shall not operate to prevent any merger or consolidation otherwise permitted by Sections 7.10  or 7.11 hereof or the dissolution of any Foreign Subsidiary that is not a Significant Subsidiary if  such action is, in the reasonable business judgment of the Company, desirable is the conduct of its  business. Section 7.2. Maintenance of Properties.  The Company shall maintain, preserve and keep  its property, plant and equipment in good repair, working order and condition (ordinary wear and  tear excepted) and shall from time to time make all needful and proper repairs, renewals,  replacements, additions and betterments thereto so that at all times the efficiency thereof shall be  fully preserved and maintained (ordinary wear and tear excepted), and shall cause each Subsidiary  to do so in respect of Property owned or used by it. Section 7.3. Taxes and Assessments.  The Company shall duly pay and discharge, and  shall cause each Subsidiary to duly pay and discharge, all taxes, rates, assessments, fees and  governmental charges upon or against it or its Properties, in each case before the same become  delinquent and before penalties accrue thereon, unless and to the extent that the same are being  contested in good faith and by appropriate proceedings which prevent enforcement of the matter  under contest and adequate reserves are provided therefor. Section 7.4. Insurance.  The Company shall insure and keep insured, and shall cause each  Subsidiary to insure and keep insured, with good and responsible insurance companies, all  insurable Property owned by it which is of a character usually insured by Persons similarly  situated and operating like Properties against loss or damage from such hazards and risks, and in  such amounts, as are insured by Persons similarly situated and operating like Properties; and the  

 

-35- Company shall insure, and shall cause each Subsidiary to insure, such other hazards and risks  (including employers’ and public liability risks) with good and responsible insurance companies  as and to the extent usually insured by Persons similarly situated and conducting similar  businesses.  The Company shall upon request furnish to the Bank a certificate setting forth in  summary form the nature and extent of the insurance maintained pursuant to this Section. Section 7.5. Financial Reports.  The Company shall, and shall cause each Subsidiary to,  maintain a standard system of accounting in accordance with GAAP and shall furnish to the Bank  and its duly authorized representatives such information respecting the business and financial  condition of the Company and its Subsidiaries as the Bank may reasonably request; and without  any request, shall furnish to the Bank: (a) as soon as available, and in any event within sixty (60) days after the last  day of each fiscal quarter of the Company (other than the last fiscal quarter of each fiscal  year), a copy of the consolidated balance sheet of the Company and its Subsidiaries as of  the last day of such fiscal quarter and the consolidated statements of income, retained  earnings and cash flows of the Company and its Subsidiaries for such fiscal quarter and the  fiscal year-to-date period then ended, each in reasonable detail showing in comparative  form the figures for the corresponding date and period in the previous fiscal year, prepared  by the Company in accordance with GAAP (subject to year-end adjustment and provided  that such balance sheet was prepared without footnotes) and certified to by the chief  financial officer of the Company; (b) as soon as available, and in any event within one hundred twenty (120) days  after the last day of each fiscal year of the Company, a copy of the consolidated balance  sheet of the Company and its Subsidiaries as of the last day of such fiscal year and the  consolidated statements of income, retained earnings and cash flows of the Company and  its Subsidiaries for the fiscal year then ended, and accompanying notes thereto, each in  reasonable detail showing in comparative form the figures for the previous fiscal year,  accompanied by an opinion thereon of Grant Thornton LLP or another firm of independent  public accountants of recognized standing, selected by the Company and satisfactory to the  Bank, to the effect that the consolidated financial statements have been prepared in  accordance with GAAP and present fairly in accordance with GAAP the consolidated  financial condition of the Company and its Subsidiaries as of the close of such fiscal year  and the results of their operations and cash flows for the fiscal year then ended and that an  examination of such accounts in connection with such financial statements has been made  in accordance with generally accepted auditing standards and, accordingly, such  examination included such tests of the accounting records and such other auditing  procedures as were considered necessary in the circumstances;  (c) promptly after the sending or filing thereof, copies of all proxy statements,  financial statements and reports which the Company sends to its shareholders, and copies  of all other regular, periodic and special reports and all registration statements which the  Company files with the Securities and Exchange Commission of the United States or any  successor thereto, or with any national securities exchange; 

 

-36- (d) promptly after knowledge thereof shall have come to the attention of any  responsible officer of the Company, written notice of (i) any threatened or pending  litigation or governmental proceeding or labor controversy against the Company or any  Subsidiary which, if adversely determined, would adversely effect the financial condition,  Properties, business or operations of the Company and its Subsidiaries, taken as a whole, or  (ii) the occurrence of any Default or Event of Default hereunder or (iii) any Change of  Control Event; and  (e) promptly, from time to time, (i) such other information regarding the  operations, business affairs and financial condition of the Company or any of its  Subsidiaries, or compliance with the terms of any Loan Document, as the Bank may  reasonably request or (ii) information and documentation reasonably requested by the  Bank for purposes of compliance with applicable “know your customer” requirements  under the Patriot Act or other applicable Anti-Corruption Laws.   Each of the financial statements furnished to the Bank pursuant to subsections (a) and (b) of this  Section shall be accompanied by a written certificate in the form attached hereto as Exhibit B  signed by the Company’s chief financial officer or such other officer of the Company acceptable to  the Bank to the effect that to the best of such officer’s knowledge and belief no Default or Event of  Default has occurred during the period covered by such statements or, if any such Default or Event  of Default has occurred during such period, setting forth a description of such Default or Event of  Default and specifying the action, if any, taken by the Company to remedy the same.  Such  certificate shall also set forth the calculations supporting such statements in respect of Section 7.17  of this Agreement. Notwithstanding the foregoing, the obligations in Section 7.5(a) and 7.5(b) may be satisfied with  respect to financial information of the Company and its Subsidiaries by furnishing Company’s  Form 10-K or 10-Q or other report, proxy statement or materials, as applicable, filed with the  Securities and Exchange Commission; provided that, to the extent such information is in lieu of  information required to be provided under Section 7.5(b), such materials are accompanied by an  opinion of Grant Thornton LLP or another firm of independent public accountants of recognized  standing, selected by the Company and satisfactory to the Bank, to the effect that the consolidated  financial statements have been prepared in accordance with GAAP and present fairly in  accordance with GAAP the consolidated financial condition of the Company and its Subsidiaries  as of the close of such fiscal year and the results of their operations and cash flows for the fiscal  year then ended and that an examination of such accounts in connection with such financial  statements has been made in accordance with generally accepted auditing standards and,  accordingly, such examination included such tests of the accounting records and such other  auditing procedures as were considered necessary in the circumstances. Section 7.6. Inspection.  The Company shall, and shall cause each Subsidiary to, permit  the Bank and its duly authorized representatives and agents, at the Bank’s expense, to visit and  inspect any of the Properties, corporate books and financial records of the Company and each  Subsidiary, to examine and make copies of the books of accounts and other financial records of the  Company and each Subsidiary, and to discuss the affairs, finances and accounts of the Company  and each Subsidiary with, and to be advised as to the same by, its officers and independent public  

 

-37- accountants (and by this provision the Company hereby authorizes such accountants to discuss  with the Bank the finances and affairs of the Company and of each Subsidiary) at such reasonable  times and reasonable intervals as the Bank may designate; provided, however, that in the absence  of any Default or Event of Default, there shall be no more than one such inspection per calendar  year. Section 7.7. Indebtedness for Borrowed Money.  The Company shall not, nor shall it  permit any Subsidiary to, issue, incur, assume, create or have outstanding any Indebtedness for  Borrowed Money; provided, however, that the foregoing shall not restrict nor operate to prevent: (a) the Obligations of the Company owing to the Bank and other indebtedness  and obligations of the Company or any Subsidiary from time to time owing to the Bank;  (b) purchase money indebtedness and Capitalized Lease Obligations secured  by Liens permitted by Section 7.8(d) hereof in an aggregate amount not to exceed  $350,000 at any one time outstanding;  (c) intercompany indebtedness from time to time owing to the Company by any  Domestic Subsidiary which is a Guarantor hereunder in the ordinary course of business;   (d) [Reserved]intercompany indebtedness from time to time owing by any  Foreign Subsidiary to the Company or any Domestic Subsidiary; (e) indebtedness from time to time owing by any Foreign Subsidiary to any  third-party financial institution in an aggregate amount not to exceed the U.S. Dollar  equivalent of $3,000,000 at any one time outstanding;  (f) unsecured indebtedness issued by the Company and its Subsidiaries with  respect to the 3.96% Senior Notes due August 1, 2020 issued under that certain  NoteAmended and Restated Note Purchase and Private Shelf Agreement dated as of  NovemberMay 1215, 20102020 (the “Note Agreement”), and any other unsecured  indebtedness issued by the Company and its Subsidiaries from time to time, provided that  the aggregate principal amount of all indebtedness permitted under this subsection shall  not to exceed $50,000,00075,000,000 at any one time outstanding and, in connection with  any such indebtedness issued after the date hereof, no Default or Event of Default shall  exist at the time of such issuance or shall arise as a consequence thereof; and  (g) unsecured Indebtedness for Borrowed Money not otherwise permitted by  this Section aggregating not more than $350,000 at any one time outstanding. Section 7.8. Liens.  The Company shall not, nor shall it permit any Subsidiary to, create,  incur or permit to exist any Lien of any kind on any Property owned by the Company or any  Subsidiary; provided, however, that this Section shall not apply to nor operate to prevent: (a) Liens arising by statute in connection with worker’s compensation,  unemployment insurance, old age benefits, social security obligations, taxes, assessments,  

 

-38- statutory obligations or other similar charges (other than Liens arising under ERISA), good  faith cash deposits in connection with tenders, contracts or leases to which the Company or  any Subsidiary is a party or other cash deposits required to be made in the ordinary course  of business, provided in each case that the obligation is not for borrowed money and that  the obligation secured is not overdue or, if overdue, is being contested in good faith by  appropriate proceedings which prevent enforcement of the matter under contest and  adequate reserves have been established therefor; (b) mechanics’, workmen’s, materialmen’s, landlords’, carriers’, or other  similar Liens arising in the ordinary course of business with respect to obligations which  are not due or which are being contested in good faith by appropriate proceedings which  prevent enforcement of the matter under contest; (c) the pledge of assets for the purpose of securing an appeal, stay or discharge  in the course of any legal proceeding, provided that the aggregate amount of liabilities of  the Company and its Subsidiaries secured by a pledge of assets permitted under this  subsection, including interest and penalties thereon, if any, shall not be in excess of  $5,000,000 at any one time outstanding; and (d) Liens on property of the Company or any of its Subsidiaries created solely  for the purpose of securing purchase money indebtedness and Capitalized Lease  Obligations, representing or incurred to finance, refinance or refund the purchase price of  Property, provided that no such Lien shall extend to or cover other Property of the  Company or such Subsidiary other than the respective Property so acquired, and the  principal amount of indebtedness secured by any such Lien shall at no time exceed the  original purchase price of such Property. Section 7.9. Acquisitions, Investments, Loans, Advances and Guaranties.  The Company  shall not, nor shall it permit any Subsidiary to, directly or indirectly, make, retain or have  outstanding any investments (whether through purchase of stock or obligations or otherwise) in, or  loans or advances (other than for travel advances and other similar cash advances made to  employees in the ordinary course of business) to, any other Person, or be or become liable as  endorser, guarantor, surety or otherwise for any debt, obligation or undertaking of any other  Person, or otherwise agree to provide funds for payment of the obligations of another, or supply  funds thereto or invest therein or otherwise assure a creditor of another against loss, or apply for or  become liable to the issuer of a letter of credit which supports an obligation of another, or  subordinate any claim or demand it may have to the claim or demand of any other Person;  provided, however, that the foregoing provisions shall not apply to nor operate to prevent: (a) investments in direct obligations of the United States of America or of any  agency or instrumentality thereof whose obligations constitute full faith and credit  obligations of the United States of America, provided that any such obligations shall  mature within one year of the date of issuance thereof; (b) investments in commercial paper rated at least P-1 by Moody’s Investors  Services, Inc. and at least A-1 by Standard & Poor’s Corporation maturing within 270 days  

 

-39- of the date of issuance thereof; (c) investments in certificates of deposit issued by any United States  commercial bank having capital and surplus of not less than $100,000,000 which have a  maturity of one year or less;  (d) endorsement of items for deposit or collection of commercial paper  received in the ordinary course of business;  (e) equity investments in Subsidiaries;  (f) the Letters of Credit, the Guaranties, and the obligations of any Guarantor  under Section 9 hereof, and any guarantee by the Company of the indebtedness of its  Foreign Subsidiaries permitted under Section 7.7(e) above; (g) guaranties issued by Subsidiaries in support of obligations of the Company  permitted under Section 7.7 above, provided that in the case of any Domestic Subsidiary it  is also a Guarantor hereunder; (h) Acquisitions of all or any substantial part of the assets or business of any  other Person or division thereof engaged in the same or any related business, or of a  majority of the voting stock of such a Person, provided that (i) no Default or Event of  Default exists or would exist after giving effect to such Acquisition, (ii) the board of  directors or other governing body of such Person whose Property, or voting stock or other  interests in which, are being so acquired has approved the terms of such Acquisition, (iii)  the Company shall have delivered to the Bank prior written notice of such Acquisition and,  if a new Subsidiary results from such Acquisition, an updated Schedule 5.2, (iv) the sum of  (1) the aggregate amount expended by the Company and its Subsidiaries as consideration  for such Acquisition (and in any event (x) including as such consideration, any  Indebtedness for Borrowed Money assumed or incurred as a result of such acquisition, and  (y) excluding as such consideration, any equity securities issued by the Company as  consideration for such Acquisition) and (2) the aggregate amount expended as  consideration (including Indebtedness for Borrowed Money and excluding equity  securities as aforesaid) for all other Acquisitions permitted under this Section 7.9(h) after  the Fifth Amendment Effective Date, on a cumulative basis does not exceed $45,000,000  in the aggregate, and (v) where the aggregate amount expended as consideration (including  Indebtedness for Borrowed Money and excluding equity securities as aforesaid) for such  Acquisition equals or exceeds $20,000,000, the Company shall have furnished to the Bank  at such time reasonable details as to such Acquisition (including sources and uses of  funds), historical financial information and pro forma financial forecasts of the Company  on a consolidated basis after giving effect to the Acquisition and covenant compliance  calculations reasonably satisfactory to the Bank (and, within 60 days after the date of any  such Acquisition where the aggregate amount expended as consideration (including  Indebtedness for Borrowed Money and excluding equity securities as aforesaid) for such  Acquisition equals or exceeds $20,000,000, the Company shall provide the Bank a  summary integration plan for the business being acquired); and  

 

-40- (i) investments, loans, advances and guaranties (excluding Acquisitions) not  otherwise permitted by this Section 7.9, provided that the aggregate amount of all such  investments, loans, advances and guaranties permitted by this subsection (i) does not then  exceed an amount equal to 15% of Tangible Net Worth as then determined and computed. In determining the amount of investments, acquisitions, loans, advances and guarantees permitted  under this Section, investments and acquisitions shall always be taken at the original cost thereof  (regardless of any subsequent appreciation or depreciation therein), loans and advances shall be  taken at the principal amount thereof then remaining unpaid, and guarantees shall be taken at the  amount of obligations guaranteed thereby. Section 7.10. Mergers, Consolidations and Sales.  The Company shall not, nor shall it  permit any Subsidiary to, be a party to any merger or consolidation, or sell, transfer, lease or  otherwise dispose of all or any substantial part of its Property (excluding any disposition of  Property as part of a sale and leaseback transaction) or in any event sell or discount (with or  without recourse) any of its notes or accounts receivable; provided, however, that this Section shall  not apply to nor prohibit: (a) the merger or consolidation of any Subsidiary with or into the Company or  any other Subsidiary (including any corporation which, after giving effect to such  transaction, will become a Subsidiary) so long as in any merger or consolidation involving  the Company, the Company shall be the surviving or continuing corporation and in any  merger or consolidation not involving the Company, a Subsidiary shall be the surviving or  continuing corporation; (b) the merger or consolidation of the Company with or into any other  corporation if the Company shall be the surviving or continuing corporation and at the time  of such consolidation or merger and after giving effect thereto no Default or Event of  Default shall have occurred and be continuing; and (c) the sale, lease or other disposition by any Subsidiary of all or any  substantial part of its assets to the Company or any other Subsidiary. The term “substantial” as used herein shall mean the sale, transfer, lease or other disposition of  20% of the total assets of the Company. Section 7.11. Maintenance of Subsidiaries.  The Company shall not assign, sell or transfer,  or permit any Subsidiary to issue, assign, sell or transfer, any shares of capital stock of a  Subsidiary; provided that the foregoing shall not operate to prevent the issuance, sale and transfer  to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying,  and to the extent legally necessary to qualify, such person as a director of such Subsidiary; further,  provided, however, that this Section 7.11 shall not operate to prevent any transaction otherwise  permitted by Section 7.10 hereof. Section 7.12. ERISA.  The Company shall, and shall cause each Subsidiary to, promptly  pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid  

 

-41- or unperformed might result in the imposition of a Lien against any of its Properties.  The  Company shall, and shall cause each Subsidiary to, promptly notify the Bank of (a) the occurrence  of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from  the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (c)  its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with  respect to any Plan which would result in the incurrence by the Company or any Subsidiary of any  material liability, fine or penalty, or any material increase in the contingent liability of the  Company or any Subsidiary with respect to any post-retirement Welfare Plan benefit. Section 7.13. Compliance with Laws.  The Company shall, and shall cause each Subsidiary  to, comply in all respects with the requirements of all federal, state and local laws, rules,  regulations, ordinances and orders applicable to or pertaining to their Properties or business  operations, non-compliance with which could have a material adverse effect on the financial  condition, Properties, business or operations of the Company and its Subsidiaries, taken as a  whole, or could result in a Lien upon any of their Property, which Lien is not otherwise permitted  by Section 7.8 hereof. Section 7.14. Burdensome Contracts With Affiliates.  The Company shall not, nor shall it  permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of  its Affiliates (other than with Wholly-Owned Subsidiaries) on terms and conditions which are less  favorable to the Company or such Subsidiary than would be usual and customary in similar  contracts, agreements or business arrangements between Persons not affiliated with each other. Section 7.15. Change in the Nature of Business.  The Company shall not, and shall not  permit any Subsidiary to, engage in any business or activity if, as a result, the general nature of the  business of the Company and its Subsidiaries, taken as a whole, would be changed in any material  respect from the general nature of the business engaged in by the Company and its Subsidiaries on  the date of this Agreement. Section 7.16. Formation of Subsidiaries.  In the event any Subsidiary is formed or acquired  after the date hereof, the Company shall within thirty (30) Business Days thereof (x) furnish an  update to Schedule 5.2 hereof to reflect such new Subsidiary and (y) cause, if such newly-formed  or acquired Subsidiary is a Domestic Subsidiary, such Domestic Subsidiary to execute a Guaranty  as the Bank may require, together with documentation (including a legal opinion) similar to that  described in Section 6.2(c) hereof relating to the authorization for, execution and delivery of, and  validity of such Subsidiary’s obligations as a Guarantor hereunder and under its Guaranty in form  and substance satisfactory to the Bank other instruments, documents, certificates and opinions as  are reasonably required by the Bank in connection therewith. Section 7.17. Financial Covenants.  (a) Consolidated  Debt to Earnings Ratio.  The Company will, as of the last day of each fiscal  quarter of the Company, maintain a ratio of Consolidated Debt to Total CapitalizationEarnings  Ratio of less than 0.55or equal to 1.02.75 to 1.00. (b) Fixed Charge Coverage Ratio.  The Company will, as of the last day of each fiscal  

 

-42- quarter of the Company, maintain a ratio of (a) Consolidated EBITR for the four fiscal quarters  then ended to (b) Consolidated Fixed Charges for the same period of four fiscal quarters then  endedFixed Charge Coverage Ratio of greater than 1.501.20 to 1.01.00. Section 7.18. Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and  Sanctions.  (a) The Company shall at all times comply in all material respects with the  requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions  applicable to the Company and shall cause each of its Subsidiaries to comply in all material  respects with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and  Sanctions applicable to such Persons. (b) The Company shall provide the Bank any information regarding the Company and  Subsidiaries necessary for the Bank to comply with all applicable Anti-Corruption Laws,  Anti-Money Laundering Laws and Sanctions. (c) The Company will maintain in effect and enforce policies and procedures reasonably  designed to ensure compliance by the Company, its Subsidiaries and the Company’s and its  Subsidiaries’ respective directors and officers with applicable Anti-Corruption Laws, Anti-Money  Laundering Laws and Sanctions. SECTION 8. EVENTS OF DEFAULT AND REMEDIES. Section 8.1. Events of Default.  Any one or more of the following shall constitute an  “Event of Default” hereunder: (a) default for a period of five days in the payment when due of all or any part  of the principal of or interest on any Note (whether at the stated maturity thereof or at any  other time provided for in this Agreement) or of any fee or other Obligation payable by the  Company hereunder; or (b) default in the observance or performance of any covenant set forth in  Sections 7.7, 7.8, 7.9, 7.10, or 7.11 hereof, or (c) default in the observance or performance of any covenant set forth in  Sections 7.5, 7.6, 7.16, 7.17 or 7.18 hereof which is not remedied within five days after the  earlier of (i) the date on which such failure shall first become known to any officer of the  Company or (ii) written notice thereof is given to the Company by the Bank; or (d) default in the observance or performance of any other provision hereof  which is not remedied within thirty (30) days after the earlier of (i) the date on which such  failure shall first become known to any officer of the Company or (ii) written notice thereof  is given to the Company by the Bank; or (e) any representation or warranty made by the Company herein or in any  statement or certificate furnished by it pursuant hereto, or in connection with any Loan  made hereunder, proves untrue in any material respect as of the date of the issuance or  

 

-43- making thereof; or (f) default shall occur under any evidence of Indebtedness for Borrowed  Money issued, assumed or guaranteed by the Company or (subject to Section 8.5 hereof)  any Subsidiary aggregating in excess of $1,500,000 or under any indenture, agreement or  other instrument under which the same may be issued, and such default shall continue  unwaived for a period of time sufficient to permit the acceleration of the maturity of any  such Indebtedness for Borrowed Money (whether or not such maturity is in fact  accelerated) or any such Indebtedness for Borrowed Money shall not be paid when due  (whether by lapse of time, acceleration or otherwise); or (g) any judgment or judgments, writ or writs, or warrant or warrants of  attachment, or any similar process or processes in an aggregate amount in excess of  $1,000,000 shall be entered or filed against the Company or (subject to Section 8.5 hereof)  any Subsidiary or against any of their Property and which remains unvacated, unbonded,  unstayed or unsatisfied for a period of thirty (30) days; or (h) the Company or any member of its Controlled Group shall fail to pay when  due an amount or amounts aggregating in excess $5,000,000 which it shall have become  liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to  terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of  $5,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the  Company or any other member of its Controlled Group, any plan administrator or any  combination of the foregoing; or the PBGC shall institute proceedings under Title IV of  ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or  a proceeding shall be instituted by a fiduciary of any Material Plan against the Company or  any member of its Controlled Group to enforce Section 515 or 4219(c)(5) of ERISA and  such proceeding shall not have been dismissed within thirty (30) days thereafter; or a  condition shall exist by reason of which the PBGC would be entitled to obtain a decree  adjudicating that any Material Plan must be terminated; or (i) dissolution or termination of the existence of (i) the Company or (ii) to the  extent not otherwise permitted by Section 7.9 hereof and in any event subject to Section 8.5  hereof, any Subsidiary; or (j) the Company or (subject to Section 8.5 hereof) any Subsidiary shall (i) have  entered involuntarily against it an order for relief under the United States Bankruptcy  Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as  they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek,  consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner,  liquidator or similar official for it or any substantial part of its Property, (v) institute any  proceeding seeking to have entered against it an order for relief under the United States  Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding  up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts  under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or  fail to file an answer or other pleading denying the material allegations of any such  

 

-44- proceeding filed against it, or (vi) fail to contest in good faith any appointment or  proceeding described in Section 8.1(k) hereof; or (k) a custodian, receiver, trustee, examiner, liquidator or similar official shall  be appointed for the Company or (subject to Section 8.5 hereof) any Subsidiary or any  substantial part of any of their Property, or a proceeding described in Section 8.1(j)(v) shall  be instituted against the Company or (subject to Section 8.5 hereof) any Subsidiary, and  such appointment continues undischarged or such proceeding continues undismissed or  unstayed for a period of sixty (60) days. Section 8.2. Non-Bankruptcy Defaults.   When any Event of Default described in  subsection (a) through (i), both inclusive, of Section 8.1 has occurred and is continuing, the Bank  may, by notice to the Company, take one or more of the following actions: (a) terminate the obligation of the Bank to extend any further credit hereunder  on the date (which may be the date thereof) stated in such notice; (b) declare the principal of and the accrued interest on the Note to be forthwith  due and payable and thereupon the Note, including both principal and interest and all fees,  charges and other Obligations payable hereunder, shall be and become immediately due  and payable without further demand, presentment, protest or notice of any kind; and (c) enforce any and all rights and remedies available to it under the Loan  Documents or applicable law. Section 8.3. Bankruptcy Defaults.  When any Event of Default described in subsection (j)  or (k) of Section 8.1 has occurred and is continuing, then the Note, including both principal and  interest, and all fees, charges and other Obligations payable hereunder, shall immediately become  due and payable without presentment, demand, protest or notice of any kind, and the obligation of  the Bank to extend further credit pursuant to any of the terms hereof shall immediately terminate.   In addition, the Bank may exercise any and all remedies available to it under the Loan Documents  or applicable law. Section 8.4. Collateral for Undrawn Letters of Credit.  When any Event of Default, other  than an Event of Default described in subsection (j) or (k) of Section 8.1, has occurred and is  continuing, the Company shall, upon demand of the Bank, and when any Event of Default  described in subsection (j) or (k) of Section 8.1 has occurred the Company shall, without notice or  demand from the Bank, immediately pay to the Bank the full amount of each Letter of Credit then  outstanding, the Company agreeing to immediately make such payment and acknowledging and  agreeing that the Bank would not have an adequate remedy at law for failure of the Company to  honor any such demand and that the Bank shall have the right to require the Company to  specifically perform such undertaking whether or not any draws have been made under any such  Letters of Credits. Section 8.5. Defaults of Insignificant Subsidiaries.  Notwithstanding anything in this  Agreement to the contrary, any event or occurrence of a type described in subsections (f), (g), (i),  

 

-45- (j) or (k) of Section 8.1 hereof which occurs with respect to any Insignificant Subsidiary  (collectively, “Subsidiary Defaults”) shall not constitute an Event of Default under Section 8.1  hereof unless and until either (x) the Aggregate Cumulative Amount of Net Income attributable to  Insignificant Subsidiaries which were the subject of Subsidiary Defaults on or at any time after the  date hereof exceeds 15% of Net Income for the most recently completed fiscal year of the  Company or (y) the Aggregate Cumulative Amount of Consolidated Total Assets attributable to  such Insignificant Subsidiaries exceeds 15% of Consolidated Total Assets as of the close of the  most recently completed fiscal year of the Company. SECTION 9. THE GUARANTEES. Section 9.1. The Guarantees.  To induce the Bank to provide the credits described herein  and in consideration of benefits expected to accrue to each Guarantor by reason of the  commitments and for other good and valuable consideration, receipt of which is hereby  acknowledged, each Guarantor hereby unconditionally and irrevocably guarantees jointly and  severally to the Bank, and each other holder of any Obligations, the due and punctual payment of  all present and future Obligations, including, but not limited to, the due and punctual payment of  principal of and interest on the Note, the due and punctual payment of all obligations owing under  the Applications, and the due and punctual payment of all other Obligations now or hereafter owed  by the Company under the Loan Documents as and when the same shall become due and payable,  whether at stated maturity, by acceleration or otherwise, according to the terms hereof and thereof;  provided, however, that, with respect to any Guarantor, Obligations consisting of Hedging  Liability guaranteed by such Guarantor shall exclude all Excluded Swap Obligations.  In case of  failure by the Company punctually to pay any indebtedness or other Obligations guaranteed  hereby, each Guarantor hereby unconditionally agrees jointly and severally to make such payment  or to cause such payment to be made punctually as and when the same shall become due and  payable, whether at stated maturity, by acceleration or otherwise, and as if such payment were  made by the Company.   Section 9.2. Guarantee Unconditional.  The obligations of each Guarantor as a guarantor  under this Section 9 shall be unconditional and absolute and, without limiting the generality of the  foregoing, shall not be released, discharged or otherwise affected by: (a) any extension, renewal, settlement, compromise, waiver or release in  respect of any obligation of the Company or of any other Guarantor under this Agreement  or any other Loan Document or by operation of law or otherwise; (b) any modification or amendment of or supplement to this Agreement or any  other Loan Document; (c) any change in the corporate existence, structure or ownership of, or any  insolvency, bankruptcy, reorganization or other similar proceeding affecting, the  Company, any other Guarantor, or any of their respective assets, or any resulting release or  discharge of any obligation of the Company or of any other Guarantor contained in any  Loan Document; 

 

-46- (d) the existence of any claim, set-off or other rights which the Guarantor may  have at any time against the Bank or any other Person, whether or not arising in connection  herewith; (e) any failure to assert, or any assertion of, any claim or demand or any  exercise of, or failure to exercise, any rights or remedies against the Company, any other  Guarantor or any other Person or Property; (f) any application of any sums by whomsoever paid or howsoever realized to  any obligation of the Company, regardless of what obligations of the Company remain  unpaid; (g) any invalidity or unenforceability relating to or against the Company or any  other Guarantor for any reason of this Agreement or of any other Loan Document or any  provision of applicable law or regulation purporting to prohibit the payment by the  Company or any other Guarantor of the principal of or interest on the Note or any other  amount payable by it under the Loan Documents; or (h) any other act or omission to act or delay of any kind by the Bank or any  other Person or any other circumstance whatsoever that might, but for the provisions of this  paragraph, constitute a legal or equitable discharge of the obligations of the Guarantor  under this Section 9. Section 9.3. Discharge Only Upon Payment in Full; Reinstatement in Certain  Circumstances.  Each Guarantor’s obligations under this Section 9 shall remain in full force and  effect until the commitments are terminated and the principal of and interest on the Note and all  other amounts payable by the Company under this Agreement and all other Loan Documents shall  have been paid in full.  If at any time any payment of the principal of or interest on any Note or any  other amount payable by the Company under the Loan Documents is rescinded or must be  otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the Company  or of a Guarantor, or otherwise, each Guarantor’s obligations under this Section 9 with respect to  such payment shall be reinstated at such time as though such payment had become due but had not  been made at such time. Section 9.4. Subrogation.  Each Guarantor agrees it will not exercise any rights which it  may acquire by way of subrogation by any payment made hereunder, or otherwise, until all the  Obligations under the Loan Documents shall have been paid in full subsequent to the termination  of the Revolving Credit Commitment and expiration of all Letters of Credit.  If any amount shall  be paid to a Guarantor on account of such subrogation rights at any time prior to the later of (x) the  payment in full of the Obligations under the Loan Documents and all other amounts payable by the  Company hereunder and the other Loan Documents and (y) the termination of the Revolving  Credit Commitment and expiration of all Letters of Credit, such amount shall be held in trust for  the benefit of the Bank (and their Affiliates) and shall forthwith be paid to the Bank (and their  Affiliates) or be credited and applied upon the Obligations under the Loan Documents, whether  matured or unmatured, in accordance with the terms of this Agreement. 

 

-47- Section 9.5. Waivers.  Each Guarantor irrevocably waives acceptance hereof,  presentment, demand, protest and any notice not provided for herein, as well as any requirement  that at any time any action be taken by the Bank or any other Person against the Company, another  Guarantor or any other Person. Section 9.6. Limit on Recovery.  Notwithstanding any other provision hereof, the right to  recovery of the holders of the Obligations against each Guarantor under this Section 9 shall not  exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations  hereunder void or voidable under applicable law, including without limitation fraudulent  conveyance law. Section 9.7. Stay of Acceleration.  If acceleration of the time for payment of any amount  payable by the Company under this Agreement or any other Loan Document is stayed upon the  insolvency, bankruptcy or reorganization of the Company, all such amounts otherwise subject to  acceleration under the terms of this Agreement or the other Loan Documents shall nonetheless be  payable jointly and severally by the Guarantors hereunder forthwith on demand by the Bank. Section 9.8. Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally,  absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as  may be needed from time to time by the Company and each other Guarantor to honor all of its  obligations under this Guaranty in respect of Swap Obligations (provided, however, that each  Qualified ECP Guarantor shall only be liable under this Section for the maximum amount of such  liability that can be hereby incurred without rendering its obligations under this Section, or  otherwise under this Guaranty, voidable under applicable law relating to fraudulent conveyance or  fraudulent transfer, and not for any greater amount).  The obligations of each Qualified ECP  Guarantor under this Section shall remain in full force and effect until discharged in accordance  with Section 9.3.  Each Qualified ECP Guarantor intends that this Section constitute, and this  Section shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of  the Company and each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the  Commodity Exchange Act.  SECTION 10. MISCELLANEOUS. Section 10.1. Holidays.  If any payment hereunder becomes due and payable on a day  which is not a Business Day, the due date of such payment shall be extended to the next succeeding  Business Day on which date such payment shall be due and payable.  In the case of any payment of  principal falling due on a day which is not a Business Day, interest on such principal amount shall  continue to accrue during such extension at the rate per annum then in effect, which accrued  amount shall be due and payable on the next scheduled date for the payment of interest. Section 10.2. No Waiver, Cumulative Remedies.  No delay or failure on the part of the Bank  or on the part of the holder of the Obligations in the exercise of any power or right shall operate as  a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any  power or right preclude any other or further exercise thereof or the exercise of any other power or  right.  The rights and remedies hereunder of the Bank and of the holder of the Obligations are  cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise  

 

-48- have. Section 10.3. Amendments, Etc.  No amendment, modification, termination or waiver of  any provision of this Agreement or of any other Loan Document, nor consent to any departure by  the Company therefrom, shall in any event be effective unless the same shall be in writing and  signed by the Bank and the Company.  No notice to or demand on the Company in any case shall  entitle the Company to any other or further notice or demand in similar or other circumstances. Section 10.4. Costs and Expenses. The Company agrees to pay on demand the costs and  expenses of the Bank incurred in connection with the negotiation, preparation, execution and  delivery of this Agreement and the other Loan Documents and the other instruments and  documents to be delivered thereunder, and in connection with the transactions contemplated  hereby or thereby, and in connection with any consents hereunder and any waivers or amendments  hereto or thereto, including the fees and expenses of counsel for the Bank, with respect to all of the  foregoing (whether or not the transactions contemplated hereby are consummated).  The Company  further agrees to pay to the Bank or any other holder of the Obligations all costs and expenses  (including court costs and attorneys’ fees), if any, incurred or paid by the Bank or any other holder  of the Obligations in connection with any Default or Event of Default or in connection with the  enforcement of this Agreement or any other Loan Document or any other instrument or document  delivered thereunder (including, without limitation, all such costs and expenses incurred in  connection with any proceeding under the United States Bankruptcy Code involving the Company  or any Guarantor).  The Company further agrees to indemnify the Bank, and any security trustee,  and their respective directors, officers and employees, against all losses, claims, damages,  penalties, judgments, liabilities and expenses (including, without limitation, all expenses of  litigation or preparation therefor, whether or not the indemnified person is a party thereto) which  any of them may pay or incur arising out of or relating to any Loan Document or any of the  transactions contemplated thereby or the direct or indirect application or proposed application of  the proceeds of any extension of credit made available hereunder, other than those which arise  from a material breach of this Agreement by the party claiming indemnification or the gross  negligence or willful misconduct of the party claiming indemnification.  The Company, upon  demand by the Bank at any time, shall reimburse the Bank for any legal or other expenses incurred  in connection with investigating or defending against any of the foregoing except if the same is  directly due to a material breach of this Agreement by the party to be indemnified or the gross  negligence or willful misconduct of the party to be indemnified.  The obligations of the Company  under this Section shall survive the termination of this Agreement. Section 10.5. Documentary Taxes.  The Company agrees to pay on demand any  documentary, stamp or similar taxes payable in respect of this Agreement or any other Loan  Document, including interest and penalties, in the event any such taxes are assessed, irrespective  of when such assessment is made and whether or not any credit is then in use or available  hereunder. Section 10.6. Survival of Representations.  All representations and warranties made herein  or in any of the other Loan Documents or in certificates given pursuant hereto or thereto shall  survive the execution and delivery of this Agreement and the other Loan Documents, and shall  continue in full force and effect with respect to the date as of which they were made as long as any  

 

-49- credit is in use or available hereunder. Section 10.7. Survival of Indemnities.  All indemnities and other provisions relative to  reimbursement to the Bank of amounts sufficient to protect the yield of the Bank with respect to  the Loans, including, but not limited to, Sections 2.6 and 2.7 hereof, shall survive the termination  of this Agreement and the payment of the Note. Section 10.8. Notices.  Except as otherwise specified herein, all notices hereunder shall be  in writing (including cable, telecopy or telexnotice by e-mail) and shall be given to the relevant  party at its address, telecopier number or telex number set forth below, or such other address,  telecopier number or telex number as such party may hereafter specify by notice to the other given  by courier, by United States certified or registered mail, by telecopye-mail or bysuch other  telecommunication devicemethods capable of creating a written record of such notice and its  receipt.  Notices hereunder shall be addressed: to the Company at: Oil-Dri Corporation of America 410 North Michigan Avenue, Suite 400 Chicago, Illinois  60611 Attention: Jeffrey Libert, Vice President of Finance Susan Kreh, Chief Financial Officer Telephone: (312) 706-3239706-3119 Telecopy: (312) 706-1239E-mail: Susan.kreh@oildri.com to the Bank at: BMO Harris Bank N.A. 111 West Monroe320 South Canal  Street Chicago, IL  6060360606 Attention: Sean LightnerMarissa  Kerley Telephone: (312) 461-4690597-0981 Telecopy: (312) 461-6190E-mail: __Marissa.Kerley@bmo.com Each such notice, request or other communication shall be effective (i) if given by  telecopiere-mail, when such telecopy is transmitted to the telecopier number specified in this  Section and a confirmation of such telecopy has beene-mail shall be deemed received byupon the  sender, (ii) if given by telex, when such telex is transmitted to the telex number specified in this  Section and the answer back is received by sender, (iii’s receipt of an acknowledgement from the  intended recipient (such as by the “return receipt requested” function, as available, return e-mail or  other written acknowledgement), (ii) if given by mail, five (5) days after such communication is  deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid  or (iviii) if given by any other means, when delivered at the addresses specified in this Section;  provided that any notice given pursuant to Section 1 or Section 2clause (ii) hereof shall be  effective only upon receipt. Section 10.9. Construction.  The parties hereto acknowledge and agree that this Agreement  and the other Loan Documents shall not be construed more favorably in favor of one than the other  based upon which party drafted the same, it being acknowledged that all parties hereto contributed  substantially to the negotiation of this Agreement and the other Loan Documents. Section 10.10. Headings.  Section headings used in this Agreement are for convenience of  

 

-50- reference only and are not a part of this Agreement for any other purpose. Section 10.11. Severability of Provisions.  Any provision of this Agreement which is  prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the  extent of such prohibition or unenforceability without invalidating the remaining provisions hereof  or affecting the validity or enforceability of such provision in any other jurisdiction. Section 10.12. Counterparts.  This Agreement may be executed in any number of  counterparts, and by different parties hereto on separate counterpart signature pages, and all such  counterparts taken together shall be deemed to constitute one and the same instrument. Section 10.13. Binding Nature, Governing Law, Etc.  This Agreement shall be binding upon  the Company and the Guarantors, and their successors and assigns, and shall inure to the benefit of  the Bank and the benefit of its successors and assigns, including any subsequent holder of the  Obligations.  The Company may not assign its rights hereunder without the written consent of the  Bank.  This Agreement constitutes the entire understanding of the parties with respect to the  subject matter hereof and any prior agreements, whether written or oral, with respect thereto are  superseded hereby.  THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL  BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF  ILLINOIS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. Section 10.14. Submission to Jurisdiction;  Waiver of Jury Trial.  The Company and the  Guarantors each hereby submits to the nonexclusive jurisdiction of the United States District Court  for the Northern District of Illinois and of any Illinois State court sitting in the City of Chicago for  purposes of all legal proceedings arising out of or relating to this Agreement, the other Loan  Documents or the transactions contemplated hereby or thereby.  The Company and the Guarantors  each irrevocably waives, to the fullest extent permitted by law, any objection which it may now or  hereafter have to the laying of the venue of any such proceeding brought in such a court and any  claim that any such proceeding brought in such a court has been brought in an inconvenient forum.   THE COMPANY, THE GUARANTORS, AND THE BANK HEREBY IRREVOCABLY WAIVE ANY AND ALL  RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN  DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY. Section 10.15. Patriot Act.  Bank hereby notifies the Company that pursuant to the  requirements of the Patriot Act, it is required to obtain, verify, and record information that  identifies the Company, which information includes the name and address of the Company and  other information that will allow the Bank to identify the Company in accordance with the Patriot  Act.  [SIGNATURE PAGE TO FOLLOW] 

 

Upon your acceptance hereof in the manner hereinafter set forth, this Agreement shall  constitute a contract between us for the uses and purposes hereinabove set forth. Dated as of this 27th day of January, 2006.  “COMPANY” OIL-DRI CORPORATION OF AMERICA By Name _______________________________ Title ________________________________ “GUARANTORS” OIL-DRI CORPORATION OF GEORGIA By Name _______________________________ Title ________________________________ OIL-DRI PRODUCTION COMPANY By Name _______________________________ Title ________________________________ OIL-DRI CORPORATION OF NEVADA By Name _______________________________ Title ________________________________ 

 

MOUNDS PRODUCTION COMPANY, LLC BY MOUNDS MANAGEMENT, INC., ITS  MANAGING MEMBER By Name _______________________________ Title ________________________________ MOUNDS MANAGEMENT, INC. By Name _______________________________ Title ________________________________ BLUE MOUNTAIN PRODUCTION COMPANY By Name _______________________________ Title ________________________________ TAFT PRODUCTION COMPANY By Name _______________________________ Title ________________________________ 

 

Accepted and agreed to at Chicago, Illinois, as of the day and year last above written. BMO HARRIS BANK N.A. By Name_______________________________ Title________________________________ 

 

EXHIBIT A OIL-DRI CORPORATION OF AMERICA REVOLVING NOTE Chicago, Illinois $45,000,000.00 January 31, 2019 On the Termination Date, for value received, the undersigned, Oil-Dri Corporation of  America, a Delaware corporation (the “Company”), hereby promises to pay to the order of BMO  Harris Bank N.A. (the “Bank”) at its main office at 111 West Monroe Street, Chicago, Illinois, the  principal sum of Forty-Five Million and no/100 Dollars ($45,000,000), or (ii) such lesser amount  as may at the time of the maturity hereof, whether by acceleration or otherwise, be the aggregate  unpaid principal amount of all Loans owing from the Company to the Bank under the Revolving  Credit provided for in the Credit Agreement hereinafter mentioned. This Note evidences Loans made or to be made to the Company by the Bank under the  Revolving Credit provided for under that certain Credit Agreement dated as of January 27, 2006,  among the Company, the Guarantors party thereto, and the Bank (said Credit Agreement, as the  same may be amended, modified or restated from time to time, being referred to herein as the  “Credit Agreement”); and the Company hereby promises to pay interest at the office described  above on such Loans evidenced hereby at the rates and at the times and in the manner specified  therefor in the Credit Agreement. This Note is issued by the Company under the terms and provisions of the Credit  Agreement, and this Note and the holder hereof are entitled to all of the benefits provided for  thereby or referred to therein, to which reference is hereby made for a statement thereof.  This Note  may be declared to be, or be and become, due prior to its expressed maturity and voluntary  prepayments may be made hereon, all in the events, on the terms and with the effects provided in  the Credit Agreement.  All capitalized terms used herein without definition shall have the same  meanings herein as such terms are defined in the Credit Agreement.   This Note issued on the date hereof is issued in replacement of and substitution for, but not  in novation of, the Revolving Note issued on December 4, 2014, in favor of the Bank (the  “Replaced Note”), and the Loans evidenced by the Replaced Note are continuing and are  evidenced by this Note. [SIGNATURE PAGE TO FOLLOW] 

 

The Company hereby promises to pay all costs and expenses (including reasonable  attorneys’ fees) suffered or incurred by the holder hereof in collecting this Note or enforcing any  rights in any collateral therefor.  The Company hereby waives presentment for payment and  demand. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE  INTERNAL LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF  LAWS. OIL-DRI CORPORATION OF AMERICA By ____________________________________ Name: Susan M. Kreh Title: Chief Financial Officer 

 

EXHIBIT B COMPLIANCE CERTIFICATE This Compliance Certificate is furnished to BMO Harris Bank N.A. (the “Bank”) pursuant  to that certain Credit Agreement dated as of January 27, 2006, by and among Oil-Dri Corporation  of America (the “Company”), the Guarantors party thereto, and the Bank (as amended, restated,  supplemented or otherwise modified, the “Credit Agreement”).  Unless otherwise defined herein,  the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit  Agreement. THE UNDERSIGNED HEREBY CERTIFIES THAT: 1. I am the duly elected _____________________________________ of the  Company; 2. I have reviewed the terms of the Credit Agreement and I have made, or have  caused to be made under my supervision, a detailed review of the transactions and  conditions of the Company and its Subsidiaries during the accounting period covered by  the attached financial statements; 3. The examinations described in paragraph 2 did not disclose, and I have no  knowledge of, the existence of any condition or the occurrence of any event which  constitutes a Default or Event of Default during or at the end of the accounting period  covered by the attached financial statements or as of the date of this Certificate, except as  set forth below; 4. The financial statements required by Section 7.5 of the Credit Agreement  and being furnished to you concurrently with this certificate are, to the best of my  knowledge, true, correct and complete as of the dates and for the periods covered thereby;  and 5. The Attachment hereto sets forth financial data and computations  evidencing the Company’s compliance with certain covenants of the Credit Agreement, all  of which data and computations are, to the best of my knowledge, true, complete and  correct and have been made in accordance with the relevant Sections of the Credit  Agreement. Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of  the condition or event, the period during which it has existed and the action which the Company  has taken, is taking, or proposes to take with respect to each such condition or event: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ 

 

-2- The foregoing certifications, together with the computations set forth in the Attachment  hereto and the financial statements delivered with this Certificate in support hereof, are made and  delivered this _________ day of __________________ 20___. ____________________________________ _____________________, ______________ (Type or Print Name) (Title) 

 

ATTACHMENT TO COMPLIANCE CERTIFICATE OIL-DRI CORPORATION OF AMERICA2 Compliance Calculations for Credit Agreement Dated as of January 27, 2006 Calculations as of _____________, 20___ A. CONSOLIDATED DEBT TO EARNINGS RATIO (SECTION 7.17(A))  1. Consolidated Debt as defined _____________ 2. Net WorthIncome _____________ 3. Ratio of Line A1 to A2 (“Consolidated The sum of items (a) - (u) below (without duplication):                                       _____________ a) Interest Expense; _____________ b) federal, state and local income taxes paid, payable  or accrued; _____________ c) all amounts properly charged for depreciation of  fixed assets and amortization of intangible assets  during such period; _____________ d) a one-time non-cash goodwill impairment charge  relating to the Retail and Wholesale Reporting  Segment in an amount equal to $5,644,000, taken  during the fiscal quarter ending April 30, 2022, and  any subsequent period that includes such fiscal  quarter; _____________ e) unusual or non-recurring non-cash items; _____________ f) other non-cash charges, expenses or losses (other  than write-downs or write-offs of accounts  receivables or inventory); _____________ g) all losses on sales of assets outside the ordinary  course of business; _____________ h) restructuring and similar charges, non-compete  costs, severance, relocation costs, integration and  facilities opening costs and other business  optimization expenses, synergies implementation  2 In the event this Attachment is inconsistent with the Credit Agreement, the Credit Agreement shall govern and  control. 

 

-2- costs, signing costs, retention or completion bonuses,  recruiting costs, transition costs, project start-up  costs, closing costs, costs related to implementation  of accounting, operational and reporting systems and  technology initiatives (including associated with  modifying accounting procedures to comply with  GAAP and sales and use taxes), consulting and audit  fees, system upgrades, costs related to  closure/consolidation of facilities or other transaction  costs or other operational changes or improvements;3 i) any earn-out payments paid in such period; _____________ j) currency translation losses and performance  losses (in each case, net of gains) relating to foreign  currency transactions and currency fluctuations  (including, for the avoidance of doubt, any currency  translation losses and foreign exchange losses  resulting from intercompany loans and other  permitted intercompany investments); _____________ k) reasonable and documented out-of-pocket costs,  fees and expenses (including legal, tax, structuring  and other costs and expenses), or any amortization  thereof, associated with acquisitions (including  non-consummated acquisitions), other investments,  dividends, dispositions, equity offering or any  amortization thereof, and issuances or amendments  in respect of debt or equity permitted under the Credit  Agreement, in each case whether or not  consummated; provided that all such out-of-pocket  costs, fees and expenses (other than consent, waiver  or amendment fees paid to Bank and PGIM, Inc. and  the other purchasers under the Note Agreement and  costs and expenses related to the negotiation and  documentation of consents, waivers or amendments  to the Loan Documents and Note Agreement, in each  case in connection with such acquisitions,  investments, dividends, dispositions, or equity  offerings or issuances or amendments in respect of  debt or equity) added pursuant to this clause (1)(k)  shall not exceed (for purposes of such calculation)  (x) $1,000,000 per transaction for each such  3 The aggregate amount of add backs pursuant to this clause (3)(h) and clause (3)(l) below shall not, before giving  effect to such add backs, exceed an amount equal to 20% of Consolidated EBITDA for the period of four  consecutive fiscal quarters most recently ended prior to the determination date. 

 

-3- acquisition, investment, dividend, disposition, or  equity offering or issuance or amendment in respect  of debt or equity that is not consummated, (y)  $1,000,000 solely with respect to the out-of-pocket  costs, fees and expenses related to the  non-consummated Acquisition identified to the Bank  prior to the Sixth Amendment Effective Date as the  “P-27 Acquisition”, or (z) $1,500,000 per transaction  for each such acquisition, investment, dividend,  disposition, or equity offering or issuance or  amendment in respect of debt or equity that is  consummated; _____________ l) pro forma “run rate” cost savings, operating  expense reductions and synergies related to  acquisitions, dispositions and other specified  transactions, any issuance, incurrence, assumption or  permanent repayment of indebtedness (including  indebtedness issued, incurred or assumed as a result  of, or to finance, any relevant transaction and for  which the financial effect is being calculated) and all  sales, transfers and other dispositions or  discontinuance of any Subsidiary, line of business or  division, restructurings, cost savings initiatives and  other initiatives in each case previously undertaken  (each, a “Specified Transaction”), net of the amount  of any actual savings, reductions and synergies  realized in such period, in each case, that are  reasonably identifiable, factually supportable and  projected by the Company in good faith to be realized  within the first twelve (12) months after such  Specified Transaction, pursuant to a certificate of a  responsible officer of the Company delivered to the  Bank certifying such amounts in good faith prior to  being added to Consolidated EBITDA;4 _____________ m) proceeds of business interruption insurance and  charges, losses or expenses to the extent indemnified,  insured, reimbursed or reimbursable or otherwise  covered by an unaffiliated third party, in each case, to  the extent received in cash; _____________ n) one-time reasonable and documented  out-of-pocket costs, fees and expenses associated  4 The aggregate amount of add backs pursuant to this clause (3)(l) and clause (3)(h) above shall not, before giving  effect to such add backs, exceed an amount equal to 20% of Consolidated EBITDA for the period of four  consecutive fiscal quarters most recently ended prior to the determination date. 

 

-4- with the consummation of the transactions  contemplated on the Sixth Amendment Effective  Date; provided that, the aggregate amount of such  costs, fees and expenses added pursuant to this clause  (1)(n) shall not exceed (for purposes of such  calculation) $1,500,000 and such amounts are  expended up to six (6) months after the Sixth  Amendment Effective Date; _____________ o) payments to employees, directors or officers of  the Company (or any direct or indirect parent  thereof) or any of its Subsidiaries in connection with  permitted restricted payments to the extent such  payments are not made in lieu of, or as a substitution  for, ordinary salary or ordinary payroll payments; _____________ p) minority interest expense, including expense or  deduction attributable to minority equity interests of  third parties in any Subsidiary; _____________ q) reasonable and documented out-of-pocket  charges, costs, or expenses in connection with the  rollover, acceleration or payout of equity interests  held by officers, directors, managers or employees; _____________ r) deferred purchase price payments of assets,  securities, services or businesses including earn-outs  and contingent consideration obligations, payments  in respect of dissenting shares, and purchase price  adjustments, made by such Person during such  period, in each case, in connection with any  acquisition or other investment permitted under the  terms of the Credit Agreement; _____________ s) adjustments reflected in any quality of earnings  report prepared by a nationally or regionally  recognized accounting firm, in connection with any  acquisition or other investment permitted under the  terms of the Credit Agreement consummated after  the Sixth Amendment Effective Date; _____________ t) non-recurring costs, expenses and losses incurred  during such period attributable to the termination or  discontinuation of any business or operations; and _____________ u) reasonable and documented out-of-pocket  expenses and fees (including expenses and fees paid  to Bank, PGIM, Inc. and the other purchasers under  the Note Agreement) incurred during such period and  after the Sixth Amendment Effective Date in  connection with the consummation or administration  of the Loan Documents, including, but not limited to,  

 

-5- any amendment, consent or waiver. _____________ 4. The sum of items (a) - (d) below (without duplication):                                     _____________ a) income, franchise and similar tax credits; _____________ b) unless accounted for in clause A3(b) above,  non-cash charges previously added back to Net  Income in determining Consolidated EBITDA to the  extent such non-cash charges have become cash  expenditures during such period; _____________ c) unrealized gains resulting from mark-to-market  accounting for hedging activities; and _____________ d) any other non-cash items increasing such Net  Income (other than any such non-cash items to the  extent that it will result in the receipt of cash  payments in any future period); _____________ 5. Sum of: (Line A2 + Line A3) - Line A4   (“Consolidated EBITDA”)5 _____________ 6. Ratio of Line A1 to A5 (“Debt to Earnings Ratio”) ______ to 1.0 4 7. As listed in Section 7.17(ba), for the date of this  Certificate, the Consolidated Debt Ratio shall be less  than or equal to        0.552.75 to 1.0  58. Company is in compliance? (Circle yes or no)           Yes/No  B. FIXED CHARGE COVERAGE RATIO (SECTION 7.17(B)) 1. Net IncomeLine A5 above (i.e., Consolidated  EBITDA) _____________ 2. (a) Interest Expense ____________ (b) Federal, state, and local  5 Consolidated EBITDA shall be calculated on a pro forma basis with respect to any Specified Transaction, as if  such Specified Transaction had occurred on the first day of any applicable calculation period. 

 

-6- taxes ____________ (c) Lease and rental expense ____________ 3. Sum of Lines 1, 2(a), (b) and (c) _____________ 4. Maintenance Capital Expenditures made during such  period6 _____________ 3. Line B1 minus Line B2 _____________ 4. The sum of items (a) - (c) below: _____________ a) all regularly scheduled payments of principal paid  in cash during such period with respect to  Indebtedness for Borrowed Money of the Company  and its Subsidiaries (excluding mandatory  prepayments); _____________ b) regularly scheduled Interest Income _____________Expense paid in cash for such period; and   5. Gains on sales of fixed assets _____________ 6. Sum of Lines 4 and 5 _____________ 7. Line 3 minus Line 6 (“Consolidated EBITR”) _____________ 8. Sum of Line 2(a) and 2(c) _____________ 9. Line 8 minus line 4 (“Consolidated Fixed Charges”) _____________ 10 c) federal, state, and local income taxes (and  franchise taxes in lieu of income taxes) paid in cash  by the Company and its Subsidiaries during such  period. _____________ 5. Ratio of Line 7B3 to Line 9B4 _____________ 11 6. As listed in Section 7.17(cb), for the date of this  Certificate, the Line 108 ratio shall not be greater  than 1.50:11.20:1.00 127. Company is in compliance? (Circle Yes or No)     Yes/No    6 The amount of Maintenance Capital Expenditures for this line 4 shall equal the lesser of (i) the amount of such  capital expenditures that are reasonably identifiable, factually supportable and disclosed in reasonable detail  within a certificate of a responsible officer of the Company delivered to Bank and (ii) $16,500,000. 

 

-7- 

 

EXHIBIT C GUARANTY AGREEMENT __________, 20___ BMO Harris Bank N.A. 111 West Monroe Street Chicago, Illinois  60603 Ladies and Gentlemen: Reference is made to the Credit Agreement, dated as of January 27, 2006 (as amended,  restated, supplemented or otherwise modified, the “Credit Agreement”) among Oil-Dri  Corporation of America (the “Company”), the Guarantors party thereto, and BMO Harris Bank  N.A (the “Bank”).  Capitalized terms used and not defined herein have the meanings assigned to  them in the Credit Agreement. The undersigned, [name of Subsidiary Guarantor], a [jurisdiction of incorporation or  organization] hereby elects to be a “Guarantor” for all purposes of the Credit Agreement,  effective from the date hereof.  The undersigned confirms that the representations and warranties  set forth in Section 5 of the Credit Agreement are true and correct as to the undersigned as of the  date hereof and the undersigned shall comply with each of the covenants set forth in Section 7 of  the Credit Agreement applicable to it. Without limiting the generality of the foregoing, the undersigned hereby agrees to perform  all the obligations of a Guarantor under, and to be bound as a Guarantor in all respects by the terms  of, the Credit Agreement, including without limitation Section 9 thereof, to the same extent and  with the same force and effect as if the undersigned were a signatory party thereto.   The undersigned acknowledges that this Agreement shall be effective upon its execution  and delivery by the undersigned to the Bank, and it shall not be necessary for the Bank, or any of  its Affiliates entitled to the benefits hereof, to execute this Agreement or any other acceptance  hereof.  This Agreement shall be construed in accordance with and governed by the internal laws  of the State of Illinois. Very truly yours, [NAME OF GUARANTOR] By Name _______________________________ Title ________________________________ 

 

SCHEDULE 1.3 PRESENT LETTERS OF CREDIT ISSUE DATE L/C NUMBER TYPE FACE AMOUNT BENEFICIARY August 6, 2008 HACH225229OS Special Purpose $  915,946.33 Georgia Environmental Protection August 21, 2013 HACH413658OS Special Purpose $   320,000.00 Liberty Mutual Insurance Company November 28, 2018 HACH577116OS Standby $   329,307.00 Bariven S.A. 

 

SCHEDULE 5.2 SUBSIDIARIES NAME JURISDICTION OF  ORGANIZATION PERCENTAGE OWNERSHIP TYPE Oil-Dri Corporation of Georgia Georgia 100% Significant Oil-Dri Production Company Mississippi 100% Insignificant Mounds Management, Inc. (formerly  known as Oil-Dri Transportation Co.) Delaware 100% Insignificant Oil-Dri (U.K.) Limited United Kingdom 100% Insignificant Amlan International Nevada 100% Insignificant ODC Acquisition Corp. Illinois 100% Insignificant; Inactive Oil-Dri SARL Switzerland 100% Insignificant Oil-Dri Canada ULC Vancouver, British  Columbia 100% (by Oil-Dri SARL) Insignificant Blue Mountain Production Company Mississippi 100% (by Oil-Dri Canada  ULC) Insignificant Mounds Production Company, LLC Illinois 75% (by Mounds  Management, Inc.)  and 25% (by Blue  Mountain Production  Company) Significant Insignificant Taft Production Company Delaware 100% Insignificant Amlan Trading (Shenzhen) Company,  Ltd. People’s Republic of China 100% Insignificant Agromex Importaciones, S.A. de C.V. Mexico 52%78.4% Insignificant PT Amlan Perdagangan Internasional Jakarta, Indonesia 100% 99% by Amlan  International 1% by ODC  Acquisition Corp. InsignificantDocument

EXECUTION VERSION
August 30, 2022
OIL-DRI CORPORATION OF AMERICA
410 North Michigan Avenue, Suite 400
Chicago, Illinois 60611
Attention:  Chief Financial Officer

Re:    Amendment No. 3 to Amended and Restated Note Purchase and Private Shelf Agreement
Ladies and Gentlemen:    
Reference is made to the Amended and Restated Note Purchase and Private Shelf Agreement (as amended by Amendment No. 1 to Amended and Restated Note Purchase and Private Shelf Agreement dated as of December 16, 2021 and the Amendment No. 2 to Amended and Restated Note Purchase and Private Shelf Agreement dated as of June 3, 2022, the “Note Agreement”), dated as of May 15, 2020 between Oil-Dri Corporation of America, a Delaware corporation (the “Company”), on the one hand, and PGIM, Inc. (“Prudential”), the Existing Holders, the Effective Date Purchasers named in the Purchaser Schedule attached thereto and each other Prudential Affiliate (as defined therein) which becomes a party thereto, on the other hand.  Capitalized terms used herein that are not otherwise defined herein shall have the meaning specified in the Note Agreement.  
The Company has requested that the Holders agree to certain amendments to the Note Agreement as set forth below.  Subject to the terms and conditions hereof, the Holders are willing to agree to such request.  Accordingly, and in accordance with the provisions of paragraph 11C of the Note Agreement, the parties hereto agree as follows:
SECTION 1.    Amendments to the Note Agreement.  From and after the Effective Date (as defined in Section 3 hereof), the Note Agreement is hereby amended as follows: 
1.1.    Each reference to “Net Leverage Ratio” in the Note Agreement shall be replaced to instead reference “Debt to Earnings Ratio”. 
1.2.    Paragraph 5B(a) of the Note Agreement shall be amended and restated in its entirety as follows:
(a)    Covenant Compliance -- the information (including detailed calculations (which calculations shall include, without limitation, a break-out of items which are being added back to Consolidated EBITDA pursuant to clause (h) of the definition thereof)) required in order to establish whether the Company was in compliance with the requirements of paragraph 6A through 6C hereof, inclusive, and of paragraph 6E hereof, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such paragraph, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of 

such paragraphs, and the calculation of the amount, ratio or percentage then in existence); and
1.3.    Paragraph 6A of the Note Agreement shall be amended and restated in its entirety as follows: 
6A.    Financial Covenants.  
6A(1).    Fixed Charges Coverage Ratio.  The Company will, as of the last day of each fiscal quarter of the Company, maintain a Fixed Charges Coverage Ratio of greater than 1.20 to 1.00.
6A(2).    Debt to Earnings Ratio.  The Company will, as of the last day of each fiscal quarter of the Company, maintain a Debt to Earnings Ratio of less than or equal to 2.75 to 1.00.
1.4.    The following definitions in paragraph 10B of the Note Agreement shall be amended and restated in their entirety as follows: 
“Consolidated EBITDA” shall mean, with reference to any period, an amount equal to Net Income for such period,
1.plus all amounts deducted (except in the case of clauses (l), (m) and (s) below) in arriving at such Net Income amount in respect of (without duplication):
a.Interest Expense for such period;
b.federal, state and local income taxes paid, payable or accrued for such period;
c.all amounts properly charged for depreciation of fixed assets and amortization of intangible assets during such period on the books of the Company and its Subsidiaries;
d.a one-time non-cash goodwill impairment charge relating to the Retail and Wholesale Reporting Segment in an amount equal to $5,644,000, taken during the fiscal quarter ending April 30, 2022, and any subsequent period that includes such fiscal quarter;
e.unusual or non-recurring non-cash items;
f.other non-cash charges, expenses or losses (other than write-downs or write-offs of accounts receivables or inventory);
g.all losses on sales of assets outside the ordinary course of business;
h.restructuring and similar charges, non-compete costs, severance, relocation costs, integration and facilities opening costs and other business optimization expenses, synergies implementation costs, signing costs, retention or completion bonuses, recruiting costs, transition costs, project start-up costs, closing costs, costs related to implementation of accounting, operational and reporting systems and 
2

technology initiatives (including associated with modifying accounting procedures to comply with GAAP and sales and use taxes), consulting and audit fees, system upgrades, costs related to closure/consolidation of facilities or other transaction costs or other operational changes or improvements;
i.any earn-out payments paid in such period;
j.currency translation losses and performance losses (in each case, net of gains) relating to foreign currency transactions and currency fluctuations (including, for the avoidance of doubt, any currency translation losses and foreign exchange losses resulting from intercompany loans and other permitted intercompany investments);
k.reasonable and documented out-of-pocket costs, fees and expenses (including legal, tax, structuring and other costs and expenses), or any amortization thereof, associated with acquisitions (including non-consummated acquisitions), other investments, dividends, dispositions, equity offering or any amortization thereof, and issuances or amendments in respect of debt or equity permitted under this Agreement, in each case whether or not consummated; provided that all such out-of-pocket costs, fees and expenses (other than consent, waiver or amendment fees paid to Prudential, the holders of the Notes and the lenders under the Credit Agreement and costs and expenses related to the negotiation and documentation of consents, waivers or amendments to the Transaction Documents and Credit Agreement, in each case in connection with such acquisitions, investments, dividends, dispositions, or equity offerings or issuances or amendments in respect of debt or equity) added pursuant to this clause (1)(k) shall not exceed (for purposes of such calculation) (x) $1,000,000 per transaction for each such acquisition, investment, dividend, disposition, or equity offering or issuance or amendment in respect of debt or equity that is not consummated, (y) $1,000,000 solely with respect to the out-of-pocket costs, fees and expenses related to the non-consummated Acquisition identified to Prudential and the Required Holder(s) prior to the Third Amendment Effective Date as the “P-27 Acquisition”, or (z) $1,500,000 per transaction for each such acquisition, investment, dividend, disposition, or equity offering or issuance or amendment in respect of debt or equity that is consummated;
l.pro forma “run rate” cost savings, operating expense reductions and synergies related to acquisitions, dispositions and other specified transactions, any issuance, incurrence, assumption or permanent repayment of indebtedness (including indebtedness issued, incurred or assumed as a result of, or to finance, any relevant transaction and for which the financial effect is being calculated) and all sales, transfers and other dispositions or discontinuance of any Subsidiary, line of business or division, restructurings, cost savings initiatives and other initiatives in each case previously undertaken (each, a “Specified Transaction”), net of the amount of any actual savings, reductions and synergies realized in such period, in each case, that are reasonably identifiable, factually supportable and projected by the Company in good faith to be realized within the first twelve (12) 
3

months after such Specified Transaction, pursuant to a certificate of a responsible officer of the Company delivered to the holders of the Notes certifying such amounts in good faith prior to being added to Consolidated EBITDA;
m.proceeds of business interruption insurance and charges, losses or expenses to the extent indemnified, insured, reimbursed or reimbursable or otherwise covered by an unaffiliated third party, in each case, to the extent received in cash;
n.one-time reasonable and documented out-of-pocket costs, fees and expenses associated with the consummation of the transactions contemplated on the Third Amendment Effective Date; provided that, the aggregate amount of such costs, fees and expenses added pursuant to this clause (1)(n) shall not exceed (for purposes of such calculation) $1,500,000 and such amounts are expended up to six (6) months after the Third Amendment Effective Date;
o.payments to employees, directors or officers of the Company (or any direct or indirect parent thereof) or any of its Subsidiaries in connection with permitted restricted payments to the extent such payments are not made in lieu of, or as a substitution for, ordinary salary or ordinary payroll payments;
p.minority interest expense, including expense or deduction attributable to minority equity interests of third parties in any Subsidiary;
q.reasonable and documented out-of-pocket charges, costs, or expenses in connection with the rollover, acceleration or payout of equity interests held by officers, directors, managers or employees;
r.deferred purchase price payments of assets, securities, services or businesses including earn-outs and contingent consideration obligations, payments in respect of dissenting shares, and purchase price adjustments, made by such Person during such period, in each case, in connection with any acquisition or other investment permitted under the terms of this Agreement;
s.adjustments reflected in any quality of earnings report prepared by a nationally or regionally recognized accounting firm, in connection with any acquisition or other investment permitted under the terms of this Agreement consummated after the Third Amendment Effective Date; 
t.non-recurring costs, expenses and losses incurred during such period attributable to the termination or discontinuation of any business or operations; and
u.reasonable and documented out-of-pocket expenses and fees (including expenses and fees paid to BMO Harris Bank, Prudential and the holders of the Notes) incurred during such period and after the Third Amendment Effective Date in connection with the consummation or administration of the Credit Agreement and the 
4

Transaction Documents, including, but not limited to, any amendment, consent or waiver.
2.minus, the following (without duplication):
v.income, franchise and similar tax credits;
w.unless accounted for in clause 1(b) above, non-cash charges previously added back to Net Income in determining Consolidated EBITDA to the extent such non-cash charges have become cash expenditures during such period; 
x.unrealized gains resulting from mark-to-market accounting for hedging activities; and
y.any other non-cash items increasing such Net Income (other than any such non-cash items to the extent that it will result in the receipt of cash payments in any future period). 
In any event, Consolidated EBITDA shall be calculated on a pro forma basis with respect to any Specified Transaction, as if such Specified Transaction had occurred on the first day of any applicable calculation period.
The aggregate amount of add backs pursuant to clauses 1(h) and 1(l) above shall not, prior to giving effect to such add backs, exceed an amount equal to 20% of Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended prior to the determination date.
“Fixed Charges” shall mean, with reference to any period for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all regularly scheduled payments of principal paid in cash during such period with respect to Indebtedness for Borrowed Money of the Company and its Subsidiaries (excluding mandatory prepayments), (b) regularly scheduled Interest Expense paid in cash during such period, and (c) federal, state, and local income taxes (and franchise taxes in lieu of income taxes) paid in cash by the Company and its Subsidiaries during such period.
“Fixed Charges Coverage Ratio” shall mean, at any time, the same is to be determined, the ratio of (a) Consolidated EBITDA for the four (4) consecutive fiscal quarters of the Company then most recently completed less Maintenance Capital Expenditures of the Company and its Subsidiaries during such period to (b) Fixed Charges for the same four (4) consecutive fiscal quarters of the Company then ended; provided that, for any period, the amount of Maintenance Capital Expenditures subtracted from clause (a) above shall equal the lesser of (i) the amount of such capital expenditures that are reasonably identifiable, factually supportable and disclosed in reasonable detail within a certificate of a responsible officer of the Company delivered to holders of the Notes and (ii) $16,500,000.
1.5.    Paragraph 10B of the Note Agreement is amended by inserting in the correct alphabetical order the following definitions: 
5

“Consolidated Capital Expenditures” shall mean, for any period, capital expenditures (as defined and classified in accordance with GAAP) during such period by the Company and its Subsidiaries on a consolidated basis.
“Debt to Earnings Ratio” shall mean, as of any time, the ratio of (x) Consolidated Net Debt at such time to (y) Consolidated EBITDA for the twelve then most recently completed calendar months.
“Maintenance Capital Expenditures” shall mean, for any period, the aggregate amount of unfinanced Consolidated Capital Expenditures made during such period for the purpose of maintaining, or extending the useful life of, any capital asset (which do not otherwise constitute normal replacements and maintenance which are properly charged to current operations).
“Third Amendment Effective Date” shall mean August 30, 2022. 
1.6.    Paragraph 10B of the Note Agreement is amended by deleting the following definitions in their entirety: 
    “Consolidated Income Available for Fixed Charges”
    “Consolidated Net Income”
    “Interest Charges”
    “Net Leverage Ratio”
1.7.    Paragraph 10C of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
10C.    Accounting and Legal Principles, Terms and Determinations, and Divisions.  All references in this Agreement to “generally accepted accounting principles” shall be deemed to refer to generally accepted accounting principles in effect in the United States at the time of application thereof. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all unaudited financial statements and certificates and reports as to financial matters required to be furnished hereunder shall be prepared, in accordance with generally accepted accounting principles, applied on a basis consistent with the most recent audited consolidated financial statements of the Company and its Subsidiaries delivered pursuant to clause (ii) of paragraph 5A or, if no such statements have been so delivered, the most recent audited financial statements referred to in clause (i) of paragraph 8B.  Any reference herein to any specific citation, section or form of law, statute, rule or regulation shall refer to such new, replacement or analogous citation, section or form should citation, section or form be modified, amended or replaced.  For purposes of determining compliance with this Agreement (including, without limitation, Article 5, Article 6 and the definitions of “Debt” and “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made as if such 
6

election had not been made.  Notwithstanding the foregoing, if the Company notifies Prudential and each holder of the Notes that, in the Company’s reasonable opinion, or if Prudential or the Required Holder(s) notify the Company that, in Prudential’s or the Required Holder(s)’ reasonable opinion that, a change has occurred with respect to generally accepted accounting principles after the date of this Agreement with respect to the characterization of operating leases which materially affects this Agreement, the Company and the Required Holder(s) will negotiate in good faith to amend the applicable provisions of this Agreement to preserve the original intent thereof in light of such changes to generally accepted accounting principles, it being understood that generally accepted accounting principles as in effect on the Effective Date shall continue to apply until the effectiveness of any such amendment.  For all purposes under the Transaction Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.
SECTION 2.  Representations and Warranties.  The Company and each Guarantor represents and warrants that (a) the execution and delivery of this letter by the Company or such Guarantor has been duly authorized by all necessary corporate or limited liability company action on behalf of such Person, this letter has been executed and delivered by a duly authorized officer of such Person, and this letter constitutes legal, valid and binding obligations of such Person, enforceable against such Person in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (b) each representation and warranty set forth in paragraph 8 of the Note Agreement and the other Transaction Documents to which it is a party is true and correct as of the date of execution and delivery of this letter by such Transaction Party with the same effect as if made on such date, after giving effect to this letter (except to the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct as of such earlier date), and (c) no Event of Default or Default exists or has occurred and is continuing on the date hereof, immediately after giving effect to this letter.
SECTION 3.  Conditions Precedent.  The amendments in Section 1 of this letter shall become effective as of the date (the “Effective Date”) that each of the following conditions has been satisfied:
3.1.    Documents.    Prudential and the holders of Notes shall have received all of the following, in form and substance satisfactory to Prudential or such holder:
    (i)    counterparts of this letter executed by the Company, each Guarantor, Prudential and the Required Holder(s); and
    (ii)    a copy of the corresponding amendment to the Credit Agreement, duly executed by the Company and BMO Harris Bank N.A., and the conditions precedent to the effectiveness of such amendment shall have been satisfied and such amendment shall be in full force and effect (it being understood that there is no notice required under paragraph 5L of the Note Agreement with respect to such amendment to the Credit Agreement).
7

3.2.    Fees and Expenses.  The Company shall have paid the reasonable and documented fees, charges and out-of-pocket disbursements of ArentFox Schiff LLP, special counsel to Prudential and the holders of Notes, incurred in connection with this letter agreement.
SECTION 4.    Reference to and Effect on Note Agreement; Ratification of Transaction Documents.  Upon the effectiveness of the amendments in Section 1 of this letter, each reference to the Note Agreement in any other Transaction Document shall mean and be a reference to the Note Agreement as modified by this letter.  Except as specifically set forth in Section 1, the Note Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  Except as expressly amended hereby, each of the Note Agreement and the other Transaction Documents are hereby ratified and confirmed in all respects and shall continue in full force and effect. Except as specifically stated in this letter, the execution, delivery and effectiveness of this letter shall not (a) amend the Note Agreement or any other Transaction Document, (b) operate as a waiver of any right, power or remedy of Prudential or any holder of Notes, or (c) constitute a waiver of, or consent to any departure from, any provision of the Note Agreement or any other Transaction Document at any time.  The execution, delivery and effectiveness of this letter shall not be construed as a course of dealing or other implication that Prudential or any holder of Notes has agreed to or is prepared to grant any consents or agree to any waiver to the Note Agreement in the future, whether or not under similar circumstances.
SECTION 5.    Expenses.  The Company hereby confirms its obligations under the Note Agreement, whether or not the transactions hereby contemplated are consummated, to pay, promptly after request by any holder of the Notes, all reasonable and documented out-of-pocket costs and expenses, including attorneys’ fees and expenses, incurred by any holder of the Notes in connection with this letter agreement or the transactions contemplated hereby, in enforcing any rights under this letter agreement, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter agreement or the transactions contemplated hereby to the extent provided in paragraph 11B of the Note Agreement.  The obligations of the Company under this Section 5 shall survive transfer by any holder of any Note and payment of any Note. 
SECTION 6.    Reaffirmation.  Each Guarantor hereby consents to the foregoing amendments to the Note Agreement, hereby ratifies and reaffirms all of their payment and performance obligations, contingent or otherwise, under the Guaranty Agreement to which it is a party after giving effect to such amendments.  Each Guarantor hereby acknowledges that, notwithstanding the foregoing amendments, that the Guaranty Agreement to which it is a party remains in full force and effect and is hereby ratified and confirmed.  Without limiting the generality of the foregoing, each Guarantor agrees and confirms that the Guaranty Agreement to which it is a party continues to guaranty the Guarantied Obligations (as defined in such Guaranty Agreement) arising under or in connection with the Note Agreement, as amended by this letter agreement.  The execution of this letter shall not operate as a novation, waiver of any right, power or remedy of any holder of any Note under any Guaranty Agreement.
SECTION 7.    Governing Law.  THIS LETTER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF ILLINOIS (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS LETTER TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).
SECTION 8.  Counterparts; Section Titles.  This letter may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so 
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executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this letter by facsimile or electronic transmission (including by “.pdf”) shall be effective as delivery of a manually executed counterpart of this letter. The section titles contained in this letter are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
(Signature Page Follows)

9

Very truly yours, 
PGIM, INC.

By:  __/s/ Eric Saxon_____________
Vice President

THE PRUDENTIAL INSURANCE   COMPANY OF AMERICA 
By: PGIM, Inc. (as Investment Manager)

By:  __/s/ Eric Saxon_____________
Vice President

PRU US PP CREDIT BM FUND

By:     PGIM Private Placement Investors,     L.P., as Investment Advisor

By:     PGIM Private Placement Investors,
    Inc., as General Partner

By:  __/s/ Eric Saxon_____________
Vice President

PRUDENTIAL TERM REINSURANCE COMPANY

By: PGIM, Inc., as investment manager

By:  __/s/ Eric Saxon_____________
         Vice President

[Signature Page to Amendment No. 3 to Amended and Restated Note Purchase 
and Private Shelf Agreement]

THE PRUDENTIAL LIFE INSURANCE COMPANY, LTD.

By: PGIM Japan Co., Ltd., as Investment Manager

By: PGIM, Inc., as Sub-Adviser

By:  __/s/ Eric Saxon_____________
         Vice President

ZURICH AMERICAN INSURANCE     COMPANY

By: PGIM Private Placement Investors, L.P. (as     Investment Advisor)

By: PGIM Private Placement Investors, Inc. (as its     General Partner)

By:  __/s/ Eric Saxon_____________
         Vice President

ZURICH AMERICAN LIFE INSURANCE COMPANY

By: PGIM Private Placement Investors, L.P. (as     Investment Advisor)

By: PGIM Private Placement Investors, Inc. (as its     General Partner)

By:  __/s/ Eric Saxon_____________
         Vice President

[Signature Page to Amendment No. 3 to Amended and Restated Note Purchase 
and Private Shelf Agreement]

The foregoing letter is 
hereby accepted as of the 
date first above written.

OIL-DRI CORPORATION OF AMERICA,
  a Delaware corporation

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Chief Financial Officer
OIL-DRI CORPORATION OF GEORGIA, 
  a Georgia corporation

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President
OIL-DRI PRODUCTION COMPANY, 
  a Mississippi corporation

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President
MOUNDS PRODUCTION COMPANY, LLC, 
  an Illinois limited liability company

By:     Mounds Management, Inc.,
    Its Manager

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President

[Signature Page to Amendment No. 3 to Amended and Restated Note Purchase 
and Private Shelf Agreement]

MOUNDS MANAGEMENT, INC., 
  a Delaware corporation 

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President
BLUE MOUNTAIN PRODUCTION COMPANY, 
  a Mississippi corporation

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President
TAFT PRODUCTION COMPANY, 
  a Delaware corporation 

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President
AMLAN INTERNATIONAL, 
  a Nevada corporation

By:    /s/ Susan M. Kreh    
Name:    Susan M. Kreh
Title:    Vice President

[Signature Page to Amendment No. 3 to Amended and Restated Note Purchase 
and Private Shelf Agreement]

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