Document:

Amendment no. Three to the Loan and Security Agreement

 EXHIBIT 10.35 
  
 EXECUTION COPY 
  
 AMENDMENT NUMBER THREE 
 TO

 LOAN AND SECURITY AGREEMENT 
  
 This AMENDMENT NUMBER THREE, dated as of August 11, 2005, (this “Amendment”) is an amendment to the Loan and Security Agreement, dated as of
April 18, 2003, by and between Shoe Pavilion Corporation, a Washington corporation (the “Borrower”) and Wells Fargo Retail Finance, LLC, as “Lender”, as amended by that Amendment Number One to Loan and Security Agreement dated as
of September 24, 2004 by and between the Borrower and the Lender and as amended by that Amendment Number Two to Loan and Security Agreement dated as of May 12, 2005 by and between the Borrower and the Lender (as amended from time to time, the
“Loan Agreement”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement. 
  
 The Borrower has requested that the Lender agree to certain modifications of the Loan Agreement as set forth herein. The Lender is prepared to agree to
the Borrower’s request on the terms and conditions contained herein. 
  
 In consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the undersigned hereby agrees as follows: 
  
 1. New Definitions. The following shall be added as new definitions to
Section 1.1 of the Loan Agreement: 
  
 “Margin Pricing
Grid” means the pricing grid set forth below: 
  
 Margin
Pricing Grid 
  

									
	 Level

	  	             EBITDA
 (Trailing 12 month period)

	  	Base
Margin

	 	 	LIBOR
Margin

	 
	 I
	  	EBITDA greater than $5 million	  	0.00	%	 	1.50	%
	 II
	  	EBITDA less than or equal to $5 million and greater than $2.5 million	  	0.00	%	 	1.75	%
	 III
	  	EBITDA less than or equal to $2.5 million	  	0.00	%	 	2.00	%

 2. Modified Definitions. 
  
 The definition of “Applicable Prepayment Premium” in Section 1.1 of the Loan Agreement shall be
deleted in its entirety and the following definition shall be substituted therefor: ‘“Applicable Prepayment Premium’ means, as of any date of determination, an amount equal to (a) during the period of time from and after the date of
the execution and delivery of this Agreement up to the date that is 547 days prior to the Maturity Date, 0.5% times the average amount of the Maximum Revolver Amount over the 360 day period preceding such date of determination (or such lesser
period of time that has elapsed between the date of the execution and delivery of this Agreement and such date of determination), and (b) from and after the date that is 547 days prior to the Maturity Date, zero. 
  
 The definition of “Base Rate Margin” in Section
1.1 of the Loan Agreement shall be deleted in its entirety and the following definition shall be substituted therefor: “‘Base Rate Margin’ means, as of any date of determination, the margin specified in the Margin Pricing Grid
based on the Borrower’s maintenance of the corresponding EBITDA specified in the Margin Pricing Grid, tested as of the last day of each fiscal quarter on a trailing 12 month basis. The Base Rate Margin shall be redetermined as of the third
Business Day following the Borrower’s delivery to the Lender of the Borrower’s 10-Q quarterly report filed with the SEC and the adjusted rate shall be effective on the first day of the following month.” 
  
 The definition of “Borrowing Base” in Section 1.1
of the Loan Agreement shall be deleted in its entirety and the following definition shall be substituted therefor: ‘“Borrowing Base’ means, as of any date of determination, the result of 
  
 (a) the lesser of 
  
 (i) 85% of the Net Retail Liquidation Value of Eligible Inventory, and

  
 (ii) 60% of the value (at Cost) of Eligible Inventory,

  
 plus 
  
 (b) the least of 
  
 (i) 85% of the Net Retail Liquidation Value of Eligible L/C
Inventory, 
  
 (ii) 60% of the value (at Cost) of
Eligible L/C Inventory, and 
  
 (iii) $3,000,000

  
 minus 
  
 (c) the sum of (i) the amount of any Inventory Reserves, (ii) the Bank
Product Reserve, and (iii) the aggregate amount of reserves, if any, established by Lender under Section 2.1(b).” 

 The definition of “Change in Control” in Section 1.1 of the Loan Agreement
shall be deleted in its entirety and the following definition shall be substituted therefor: ‘“Change in Control’ means that (a) the Permitted Holders cease to be the beneficial owners (as defined in Rule 13-3 under the
Exchange Act), directly or indirectly, of more than 40% of the Stock of Parent having the right to vote for the election of members of the Board of Directors and Dmitry Beinus ceases to be President, Chief Executive Officer and Chairman of the Board
of the Borrower, or (b) a majority of the members of the Board of Directors do not constitute Continuing Directors, or (c) Parent ceases to own and control 100% of the outstanding Stock of Borrower. 
  
 The definition of “LIBOR Rate Margin” in Section
1.1 of the Loan Agreement shall be deleted in its entirety and the following definition shall be substituted therefor: ‘“LIBOR Rate Margin’ means, as of any date of determination, the margin specified in the Margin Pricing Grid
based on the Borrower’s maintenance of the corresponding EBITDA specified in the Margin Pricing Grid, tested as of the last day of each fiscal quarter on a trailing 12 month basis. The LIBOR Rate Margin shall be redetermined as of the third
Business Day following the Borrower’s delivery to the Lender of the Borrower’s 10-Q quarterly report filed with the SEC and the adjusted rate shall be effective on the first day of the following month.” 
  
 The figure “$250,000” contained in the definition
of “Permitted Capitalized Lease Obligations” in Section 1.1 of the Loan Agreement shall be deleted and the figure “3,000,000” shall be substituted therefor. 
  
 3. Float Charge. Section 2.8 of the Loan Agreement is hereby amended to delete any reference to a “1 Business
Day clearance” or “float” charge. 
  
 4. Unused
Line Fee. Section 2.11(a) of the Loan Agreement shall be deleted in its entirety and the following shall be substituted therefor: “(a) Unused Line Fee. On the first day of each month during the term of this Agreement, an unused line
fee in an amount equal to 0.20% per annum times the result of (i) the Maximum Revolver Amount, less (ii) the sum of (A) the average Daily Balance of Advances that were outstanding during the immediately preceding month, plus (B)
the average Daily Balance of the Letter of Credit Usage during the immediately preceding month,” 
  
 5. Maturity Date. Section 3.4 of the Loan Agreement shall be deleted in its entirety and the following shall be substituted therefor:
“Term. This Agreement shall continue in full force and effect for a term ending July 31, 2009 (the ‘Maturity Date’). The foregoing notwithstanding, Lender shall have the right to terminate its obligation under this
Agreement immediately and without notice upon the occurrence and during the continuation of an Event of Default.” 
  
 6. Early Termination by Borrower. The last sentence of Section 3.6 of the Loan Agreement is deleted in its entirety and the following shall be
substituted therefor: “The foregoing 

 
to the contrary notwithstanding, in the event that Borrower repays the Obligations in full and terminates this Agreement pursuant to the first sentence of
this Section 3.6 and if such repayment occurs either (a) with the proceeds of a refinancing provided by Wells Fargo or (b) in connection with a sale of all or substantially all the assets of Borrower or the acquisition by a Person of more
than 50% of the Stock of Borrower having the right to vote for the election of members of the Board of Directors and such sale or acquisition is financed by Wells Fargo, then the Applicable Prepayment Premium shall be zero. 
  
 7. Disposal of Assets. The words “other than with respect to
store closings permitted under Section 7.19” contained in Section 7.4 of the Loan Agreement are hereby deleted. 
  
 8. Compensation. Section 7.15 of the Loan Agreement shall be deleted in its entirety and the following shall be substituted therefor:
“Reserved.” 
  
 9. Capital Expenditures. Section
7.18(b) of the Loan Agreement shall be deleted in its entirety and the following shall be substituted therefor: “(b) Capital Expenditures. Make Capital Expenditures in any fiscal year in excess of the amount set forth in the table for
the applicable period, exclusive of Capital Expenditures which are Capital Lease Obligations: 
  

				
	Fiscal Year 2005

	  	 Fiscal Year 2006 and thereafter

	$	3,000,000	  	To be established by Lender, in its Permitted Discretion, based on the Borrower’s annual Projections, as approved by the Lender

  
 10. Store Openings
and Closings. Section 7.19 of the Loan Agreement shall be deleted in its entirety. 
  
 11. Events of Default. Section 8.2(b) of the Loan Agreement is amended to delete the reference to Section “6.2” and substitute therefor the reference to Section “6.2(a)”. Section 8.2(c) of
the Loan Agreement shall be deleted in its entirety and the following shall be substituted therefor: “(c) fails or neglects to perform, keep, or observe any term, provision, covenant, or agreement contained in (i) Section 6.2 (other than
Section 6.2(a)) and such failure continue for a period of 15 days or occurs more than 3 times during any twelve month period or (ii) Section 6.3(a) of this Agreement and such failure continues for a period of 15 days; or”

  
 12. Fees. The Fee Letter shall be amended to delete any
reference to a “Service Fee”. 
  
 13. Waiver of
Default. The Lender hereby waives the following Events of Default, it being understood that the Lender does not waive any existing or future arising Events of Default not expressly identified below: 
  
 (a) Pursuant to Section 8.2(a) of the Loan Agreement as a
consequence of the Borrower’s incurrence of Permitted Capitalized Lease Obligations during June 2005 through effective date of this Amendment in excess of that amount permitted pursuant to Section 7.1(g) of the Loan Agreement; 

 (b) Pursuant to Section 8.2(a) of the Loan Agreement as a consequence of the Borrower
making Capital Expenditures in excess of the amounts permitted during June 2005 through effective date of this Amendment pursuant to Section 7.18 of the Loan Agreement. 
  
 (c) Pursuant to Section 8.2(b) of the Loan Agreement as a consequence of the Borrower’s failure to
furnish the Lender with Projections on or before January 31, 2005 in accordance with Section 6.3(c) of the Loan Agreement. 
  
 14. Acknowledgement of Obligations by Borrower. The Borrower confirms and agrees that (a) all representations and warranties contained in the Loan
Agreement and in the other Loan Documents are on the date hereof true and correct in all material respects, and (b) it is unconditionally liable for the punctual and full payment of all Obligations, including, without limitation, all reasonable
charges, fees, expenses and costs (including attorneys’ fees and expenses) under the Loan Documents, and that the Borrower has no defenses, counterclaims or setoffs with respect to full, complete and timely payment of all Obligations.

  
 15. Ratification of Financing. The Borrower confirms
that the Loan Agreement and the Loan Documents remain in full force and effect without amendment or modification of any kind, except for the amendments explicitly set forth herein. This Amendment shall be deemed to be one of the Loan Documents and,
together with the other Loan Documents, constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior dealings, correspondence, conversations or communications between the parties with respect
to the subject matter hereof. This Amendment shall be considered a Loan Document and, without in any way limiting the application of other provisions of the Loan Agreement, this Amendment shall governed by the provisions of Articles 13, 15 and 16 of
the Loan Agreement. No further amendment to the Loan Agreement shall be made except by a writing signed by all parties to the Loan Agreement. 
  
 16. Representations, Warranties and Covenants. The Borrower and Guarantor, jointly and severally, represents, warrants and covenants with and to
the Lender as follows, which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof, the truth and accuracy of, or compliance with each, together with the representations, warranties and
covenants in the other Loan Agreements, begin continuing condition of the making or providing any loans or Letters of Credit by the Lender to Borrower: 
  
 (a) This Amendment has been duly authorized, executed and delivered by all necessary action of the Borrower and Guarantor, and is in full
force and effect, and the agreements and obligations of the Borrower and Guarantor contained here constitute legal, valid and binding obligations of the Borrower enforceable against the Borrower and Guarantor in accordance with its terms.

  
 (b) After giving effect to this Amendment,
there is no Event of Default under the Loan Agreement or any of the Loan Documents. 

 17. Conditions Precedent. This Amendment shall become effective upon satisfaction of each of the
following conditions precedent or waiver of such conditions by the Lender: 
  
 (a) Receipt by Lender of this Amendment duly executed by the Borrower and Lender. 
  
 (b) Receipt by Lender of the Acknowledgment and Consent duly executed by Guarantor. 
  
 (c) All representations and warranties contained herein
shall be true and correct in all material respects. 
  
 (d) After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing. 
  
 18. Miscellaneous. Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose. This Amendment shall be governed by, and construed in accordance with, the laws of the State of California. 
  
 19. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original hereof and
submissible into evidence and all of which together shall be deemed to be a single instrument. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties
hereto. Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall have the same force and effect as delivery of an original executed counterpart of this Amendment. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by
their authorized officers as of the day and year first above written. 
  

			
	 WELLS FARGO RETAIL FINANCE, LLC
 (the “Lender”)

		
	 By:
	 	 /s/ Eileen P. Quinn

	 	 	 Name: Eileen P. Quinn

	 	 	 Title: Senior Vice President

  

			
	BORROWER:
	
	SHOE PAVILION CORPORATION
		
	 By:
	 	 /s/ John D. Hellmann

	 	 	 Name: John D. Hellmann

	 	 	 Title: Vice President

  
 Signature page to amendment no. 3 

 ACKNOWLEDGMENT AND CONSENT 
  
 The undersigned, as a party to one or more Loan Documents, as defined in the Loan and Security Agreement, dated as of April
18, 2003, as heretofore amended (the “Loan Agreement”), by and between Shoe Pavilion Corporation, a Washington corporation (the “Borrower”) and Wells Fargo Retail Finance, LLC, a Delaware limited liability company, as
lender (the “Lender”), hereby (i) acknowledges and consents to Amendment Number Three dated as of August 11, 2005, to Loan Agreement (the “Amendment”, all terms defined therein being used herein as defined therein), to which this
Acknowledgement and Consent is attached, together with all prior amendments to the Loan Agreement; (ii) acknowledges and consents to the incurrence by the Borrower of the Term Loans, as set forth in the Amendment; (iii) confirms and agrees that the
General Continuing Guaranty dated as of April 18, 2003 to which the undersigned is a party is, and shall continue to be, in full force and effect and is ratified and confirmed in all respects; (iv) confirms and agrees that the Loan Agreement
together with each other Loan Document to which the undersigned is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects; and (v) confirms and agrees that to the extent that any such Loan
Document purports to assign or pledge to the Lender, or to grant to the Lender a security interest in or lien on, any collateral as security for the obligations of the Borrower and Guarantor from time to time existing in respect of the Loan
Documents, such pledge, assignment and/or grant of a security interest or lien is hereby ratified and confirmed in all respects as security for all obligations of the Borrower and the undersigned, whether now existing or hereafter arising.

  
 Dated: August 11, 2005 
  

			
	SHOE PAVILION CORPORATION
		
	 By:
	 	 /s/ John D. Hellmann

	 	 	 Name: John D. Hellmann

	 	 	 Title: Vice President

  
 Signature Page to Acknowledgment
and Consent to Amendment Number ThreeForm of Grant Letter for Stock Options for Non-Employee Directors

 Exhibit 10.1 
  

			
	Name:	  	XXX
		
	PID:	  	XXX

  
 NOTICE OF GRANT OF
STOCK OPTIONS 
  
 The Management Development and Compensation Committee of the
Board of Directors (the “Committee”) of Parker-Hannifin Corporation (the “Company”) has granted to you, under the Company’s 2004 Non-Employee Directors’ Stock Incentive Plan (the “Plan”), stock options
(“Options”) with respect to the number of common shares of the Company (“Common Shares”) set forth below. Your Options under this grant have a grant price (“Grant Price”) that is 100% of the fair market value (the
“Fair Market Value”) of the Common Shares, which is taken as the reported closing price of the Common Shares on the New York Stock Exchange-Composite Transactions on the date of the grant. This grant will expire at the time indicated below
unless an earlier lapse date (“Lapse Date”) applies due to one of the status changes described in this notice. 
  

			
	Grant Date:	    	XX/XX/XX
		
	No. of Shares to Which Options Apply:	    	XXX
		
	Grant Price:	    	$XX.XX
		
	Expiration Date:	    	XX/XX/XX, at 4:00 PM

  
 Each Option granted hereunder entitles
you to purchase the Common Shares covered by the option at the Grant Price. 
  
 Vesting Period. While you are a Director of the Company, this grant shall vest as follows: 
  
 [Vesting Schedule] 
  
 provided, however, in the event of a Change in Control of the Company (as defined in attached Exhibit A), all of the Options granted hereunder shall immediately vest and become exercisable. 
  
 If your service as a Director of the Company is terminated at any time prior to a vesting
date as a result of retirement at or after age 65, permanent disability or death, any unvested Options shall continue to vest according to the schedule set forth above. 
  
 Following vesting, your Options are exercisable in accordance with the terms hereof only while you are a Director of the Company at any time
until the Expiration Date or Lapse Date as to all or any portion of the Common Shares subject to the vested Options. Vested Options may also be exercised upon termination of your directorship in accordance with the specific status change rules set
forth below. 

 Effect of Status Changes. If your service as a Director of the Company is terminated at any time prior to a
vesting date for any reason other than death, permanent disability or retirement at or after age 65, any unvested Options at such date of termination shall lapse immediately upon termination. 
  
 Vested Options may be exercised in whole or in part after termination of your directorship
before the Lapse Date shown in the right-hand column corresponding to the described status change: 
  

			
	Status Change	 	Lapse Date
	(A) Permanent Disability or Retirement. If the termination of your directorship is due to
permanent disability or to retirement at or after age 65.	 	Expiration Date.
	(B) Death. In the event of your death, if exercised by the executor or administrator of
your estate (or if your estate has already been probated, the beneficiary who has inherited the Options).	 	The earlier of: Two (2) years after the date of death or the Expiration
Date.
	(C) Termination. If the termination of your directorship is due to any other reason except
your permanent disability or retirement as specified in (A) above, or your death as specified in (B) above.	 	The earlier of: Three (3) months from the date of termination or the Expiration
Date.

  
 Exercise and Settlement
Procedures. To exercise any portion of this grant, you shall be required to complete and deliver a notice of exercise in the prescribed format to the Company for processing on the Exercise Date. The Exercise Date shall be deemed to be the
first business day on which the Company receives, prior to the established cut-off time, (i) the notice of exercise and (ii) the exercise price which may be paid in cash or with other Common Shares of the Company. If you tender Common Shares of the
Company to satisfy the exercise price, such shares will be valued at the Prior Day’s Close. 
  
 To settle the exercise of the Options, the Company will instruct its stock transfer agent to issue to you the net number of Common Shares you are entitled to receive. If a Reload Option (as more fully described below)
is issued as a result of an exercise the Options granted herein, the shares received as a result of the exercise (less any shares withheld or sold for payment of U.S. income withholding taxes) will be held in book entry for one year, until the
corresponding Reload Option has vested, after which the shares will immediately be available for issuance in certificated form or for transfer to a brokerage account of your choice. In the event the Reload Option is forfeited for any reason, the
shares held in book entry will immediately become available for issuance or transfer per your instructions. 
  
 Taxable Compensation. If you are a U.S. citizen, you do not realize income upon the grant of these Options. In certain foreign countries, however, you may be taxed upon grant. In any year in which you
exercise a part or all of such Options, the excess of the fair market value of the Common Shares on the Exercise Date over the Grant Price will be taxed as compensation at ordinary income rates. 
  

 Page 2 

 Tax Withholding. If you are a non-U.S. citizen who is subject by law to U.S. income tax withholding, such
withholding taxes must be paid to the Company at the time of exercise and may, at your option, be satisfied by surrendering to the Company a portion of the Common Shares received upon exercise of the stock option. 
  
 Reloadability. If you (or a permitted transferee as provided below) tender
Common Shares of the Company to satisfy the exercise price on an Option, you will receive one (1) restorative or “reload” option grant effective on the Exercise Date equivalent to the number of Common Shares surrendered to satisfy the
exercise price (the “Reload Option”). The Reload Option will have a Grant Price equal to the Fair Market Value of the Common Shares on the Exercise Date. Except as otherwise specified herein, no Reload Option may be exercised (a) prior to
the completion of one (1) year of continuous service as a Director following the Exercise Date; and (b) unless you have retained ownership of the Common Shares resulting from the Option exercise on the Exercise Date (less a sufficient number of
Common Shares to satisfy withholding tax obligations) for a period of one (1) year from the Exercise Date. No more than one (1) Reload Option grant shall be made hereunder. All other terms and conditions of the Reload Option will be identical to
those contained herein, including without limitation the expiration and termination of the Reload Option. 
  
 Transferability. Your Options are not transferable (other than by will or the laws of descent and distribution) except to (a) your spouse, children or grandchildren, (b) one or more trusts for the
benefit of such family members; or (c) partnerships in which such family members are the only partners; provided, however, that you do not receive any consideration for the transfer. Any transferred Options shall continue to be
subject to the same terms and conditions that were applicable immediately prior to its transfer (except that such transferred Options shall not be further transferable by the transferee inter vivos). 
  
 Detrimental Activity. If you engage in any Detrimental Activity (as hereinafter
defined), the Committee has the right to cancel this grant if unexercised or require repayment to the Company of any compensation received (in the form of cash or Common Shares) as a result of the exercise of any portion of this grant. Detrimental
Activity, as defined in the Plan, means activity that is determined in individual cases, by the Committee or its express delegate, to be detrimental to the interests of the Corporation or a Subsidiary, including without limitation (i) the rendering
of services to an organization, or engaging in a business, that is, in the judgment of the Committee or its express delegate, in competition with the Corporation; (ii) the disclosure to anyone outside of the Corporation, or the use for any purpose
other than the Corporation’s business, of confidential information or material related to the Corporation, whether acquired by the Grantee during or after service with the Corporation; (iii) fraud, embezzlement, theft-in-office or other illegal
activity; or (iv) a violation of the Corporation’s Code of Ethics. 
  
 All Terms Herein Subject to the Plan. The grant of your Options hereunder is at all times subject to all other terms, conditions and provisions of the Plan (and any rules or procedures adopted thereunder by the Committee) to
the extent not specifically addressed herein. All initially capitalized terms, to the extent not otherwise defined herein, shall have the meaning ascribed to such terms in the Plan. In the event of a conflict between the terms of the Plan and this
grant letter, the Plan shall prevail. 
  

 Page 3 

 Please confirm your receipt of this letter by signing and returning to me the enclosed copy of this letter. Failure to
sign and return a copy of this letter may jeopardize your ability to exercise the Options granted hereunder.  
  
 Sincerely yours, 
  
 Thomas A. Piraino, Jr. 
 Vice President, General Counsel and Secretary 
  

					
	RECEIPT ACKNOWLEDGED:	 	 
			
	  

	  	Date:	 	  

	XXX	  	 	 	 

  

 Page 4 

 EXHIBIT A 
  
 “Change in Control” means the occurrence of one of the following events: 
  
 (i) any “person” (as such term is defined in
Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Corporation representing 20% or more of the combined voting power of the Corporation’s then outstanding securities eligible to vote for the election of the Board (“Corporation Voting Securities”); provided, however, that the event
described in this paragraph shall not be deemed to be a Change in Control by virtue of any of the following situations: (A) an acquisition by the Corporation or any Subsidiary; (B) an acquisition by any employee benefit plan sponsored or maintained
by the Corporation or any Subsidiary; (C) an acquisition by any underwriter temporarily holding securities pursuant to an offering of such securities; (D) a Non-Control Transaction (as defined in paragraph (iii)); (E) as pertains to an individual
Grantee, any acquisition by the Grantee or any group of persons (within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange Act) including the Grantee (or any entity in which the Grantee or a group of persons including the Grantee,
directly or indirectly, holds a majority of the voting power of such entity’s outstanding voting interests); or (F) the acquisition of Corporation Voting Securities from the Corporation, if a majority of the Board approves a resolution
providing expressly that the acquisition pursuant to this clause (F) does not constitute a Change in Control under this paragraph (i); 
  
 (ii) individuals who, at the beginning of any period of twenty-four (24) consecutive months, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority thereof; provided, that (A) any person becoming a director subsequent to the beginning of such twenty-four (24) month period, whose election, or nomination for election, by the
Corporation’s shareholders was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board who are then on the Board (either by a specific vote or by approval of the proxy statement of the Corporation in which such
person is named as a nominee for director, without objection to such nomination) shall be, for purposes of this paragraph (ii), considered as though such person were a member of the Incumbent Board; provided, however, that no individual initially
elected or nominated as a director of the Corporation as a result of an actual or threatened election contest with respect to directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than
the Board shall be deemed to be a member of the Incumbent Board; 
  
 (iii) the consummation of a merger, consolidation, share exchange or similar form of corporate reorganization of the Corporation or any Subsidiary that requires the approval of the Corporation’s stockholders,
whether for such transaction or the issuance of securities in connection with the transaction or otherwise (a “Business Combination”), unless (A) immediately following such Business Combination: (1) more than 50% of the total voting power
of the corporation 

 
resulting from such Business Combination (the “Surviving Corporation”) or, if applicable, the ultimate parent corporation which directly or
indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Corporation Voting Securities that were outstanding immediately
prior to the Business Combination (or, if applicable, shares into which such Corporation Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion
as the voting power of such Corporation Voting Securities among the holders thereof immediately prior to the Business Combination, (2) no person (other than any employee benefit plan sponsored or maintained by the Surviving Corporation or the Parent
Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation), and (3) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), following the Business Combination, were members of the
Incumbent Board at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (a “Non-Control Transaction”) or (B) the Business Combination is effected by means of the
acquisition of Corporation Voting Securities from the Corporation, and a majority of the Board approves a resolution providing expressly that such Business Combination does not constitute a Change in Control under this paragraph (iii); or

  
 (iv) the stockholders of the Corporation
approve a plan of complete liquidation or dissolution of the Corporation or the sale or other disposition of all or substantially all of the assets of the Corporation and its Subsidiaries. 
  
 Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any person acquires beneficial ownership of more than 20% of the Corporation Voting Securities as a result of the acquisition of Corporation Voting Securities by the Corporation which, by reducing the number of Corporation
Voting Securities outstanding, increases the percentage of shares beneficially owned by such person; provided, that if a Change in Control would occur as a result of such an acquisition by the Corporation (if not for the operation of this sentence),
and after the Corporation’s acquisition such person becomes the beneficial owner of additional Corporation Voting Securities that increases the percentage of outstanding Corporation Voting Securities beneficially owned by such person, a Change
in Control shall then occur.

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