Document:

Restructuring Support Agreement, dated March 13, 2012

 Exhibit 10.1 
 EXECUTION VERSION 
 RESTRUCTURING SUPPORT AGREEMENT 

This RESTRUCTURING SUPPORT AGREEMENT (as may be amended, supplemented or otherwise modified as provided herein, the
“RSA”), dated as of March 13, 2012, is by and between Penson Worldwide Inc. (the “Company”), a corporation duly organized and existing under the laws of the State of Delaware, Penson Financial Services, Inc.
(“PFSI”), and each of their respective subsidiaries and any successors thereto (collectively with the Company and PFSI, the “Company Parties”) and the holders set forth on the signature pages hereto of the
(i) 12.5% senior second lien secured notes due 2017 (the “Senior Secured Notes”) issued under the Indenture, dated as of May 6, 2010 (as amended, supplemented, or modified from time to time, the “Secured Notes
Indenture”), by and between the Company, as issuer, certain guarantors thereunder, and U.S. Bank National Association, as Indenture Trustee, in the aggregate principal amount of $200,000,000.00; (ii) 8.00% senior convertible notes due
2014 (the “Convertible Notes”) issued under the Indenture, dated as of June 3, 2009 (as amended, supplemented, or modified from time to time, the “Convertible Notes Indenture”), by and between the Company, as
issuer, and U.S. Bank National Association, as Indenture Trustee, in the aggregate principal amount of $60,000,000; and (iii) subordinated unsecured note due June 25, 2015 (as amended, supplemented, or modified from time to time, the
“Broadridge Seller Note”) payable by the Company to Broadridge Financial Solutions, Inc. (together with its subsidiaries and affiliates, “Broadridge”), in the original principal amount of $20,578,155 (collectively,
the “Initial Exchanging Holders” and each holder of the Senior Secured Notes, the Convertible Notes and Broadridge Seller Note generally referred to as a “Noteholder” and collectively, as the
“Noteholders”). The Initial Exchanging Holders, the Company Parties, and each other Noteholder that becomes a party hereto in accordance with the terms hereof (collectively with the Initial Exchanging Holders, the “Exchanging
Holders”) shall be referred to herein individually as a “Party” and, collectively, as the “Parties.” Capitalized terms not herein defined shall have the meanings set forth in the Restructuring Term Sheet
(as defined below). References herein to percentage of Exchanging Holders refer to the principal amount of the Notes held by such Exchanging Holders. 
 RECITALS 
 WHEREAS, prior to the date hereof, representatives
of the Company Parties and certain Exchanging Holders have discussed consummating a financial restructuring (the “Restructuring”) of the Company Parties’ consolidated indebtedness and other obligations on principal terms
consistent with those set forth in this RSA and the Restructuring Term Sheet, attached hereto as Exhibit A and expressly incorporated by reference herein and made a part of this RSA as if fully set forth herein (as it may be amended,
supplemented or otherwise modified as provided herein, the “Restructuring Term Sheet”); 
 WHEREAS, the
Restructuring contemplates an out-of-court exchange offer consisting of an issuance of (i) up to $100 million of New First Lien Notes (as defined below) and at least $100 million of Series A Senior Preferred Stock (as defined below) in

 
exchange for $200 million of the outstanding Senior Secured Notes, (ii) $5 million of New First Lien Notes (as defined below), $20 million of Series A Senior Preferred Stock (as defined
below), $35 million of Series B Preferred Stock (as defined below) and shares of common stock of the Company (“Common Stock”) representing 51.6% of the aggregate outstanding Common Stock in exchange for $60 million of the
outstanding Convertible Notes, (iii) shares of Common Stock representing 9.9% of the aggregate outstanding Common Stock in exchange for the Broadridge Seller Note, and (iv) such other transactions related to the Restructuring as set forth
in the Restructuring Term Sheet; 
 WHEREAS, the Parties have engaged in good faith negotiations with the objective of
reaching an agreement with respect to the Restructuring. Each Party has reviewed or has had the opportunity to review this RSA and the Restructuring Term Sheet with the assistance of professional legal advisors of its own choosing; 

WHEREAS, subject to the execution of the Definitive Documentation (as defined below), the following sets forth the agreement among
the Parties concerning their support, subject to the terms and conditions hereof and thereof and in the Restructuring Term Sheet, to implement the Restructuring. In the event the terms and conditions as set forth in the Restructuring Term Sheet and
this RSA are inconsistent, the terms and conditions contained in the Restructuring Term Sheet shall control. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Party,
intending to be legally bound hereby, agrees as follows: 
  

	1.	Definitions. The following terms shall have the following definitions: 

 “Affiliate” means, with respect to any Person, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this
definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean, with respect to any Person, the possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether through ownership of securities or partnership, limited liability company or other ownership interests, by contract or otherwise) of such Person. 

“Affiliated Transferee” means with respect to the Exchanging Holder, any entity that, as of the date an Exchanging Holder
becomes a Party to this RSA, is an Affiliate of such Exchanging Holder and, as of the date of any transfer of such Exchanging Holder’s notes to such Affiliate, continues to be an Affiliate of that Exchanging Holder. 

  
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 “Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C.
§§ 101–1532. 
 “Broadridge” has the meaning in the preamble hereof. 

“Broadridge Seller Note” has the meaning in the preamble hereof. 

“Business Day” means any day other than Saturday, Sunday and any day that is a legal holiday or a day on which the New
York Stock Exchange and banking institutions in New York, New York are authorized by law or other governmental action to close. 
 “Common Stock” has the meaning set forth in the recitals hereof. 

“Company” has the meaning set forth in the preamble hereof. 

“Company Parties” has the meaning set forth in the preamble hereof. 

“Confidentiality Agreement” means the separate confidentiality agreements between each Exchanging Holder, the Company
and/or PFSI. 
 “Consent Solicitation” means the proposed solicitation of consents from Noteholders in
connection with the Exchange Offer to amend certain covenants, events of default, and related provisions of the Secured Notes Indenture and/or Convertible Notes Indenture, as applicable, and as described in the Restructuring Term Sheet. 

“Controlled Affiliate” means, with respect to any Noteholder, any other person that is controlled by such Noteholder or
that serves as investment adviser for such Noteholder. 
 “Convertible Notes Indenture” has the meaning set
forth in the preamble herein. 
 “Critical Dates” has the meaning set forth in Section 5.8 hereof.

 “Definitive Documentation” means this RSA and such other documentation relating to the Restructuring, Consent
Solicitation, and Exchange Offer as is necessary to consummate the Restructuring, including the modifications to the Broadridge Master Services Agreement and schedules thereto provided for in Exhibit A to the Restructuring Term Sheet, (i) all
on the same economic terms set forth in the Restructuring Term Sheet and (ii) otherwise in all material respects consistent with the terms set forth in the Restructuring Term Sheet and reasonably acceptable to the Company Parties, the Requisite
Exchanging Holders and Broadridge. 
 “Effective Date” means the date on which the Exchange Offer is completed
and the transactions described herein are consummated. 

  
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 “Exchange Offer” means the proposed tender offer of (i) the Senior
Secured Notes in exchange for up to $100 million in aggregate principal amount of the New First Lien Notes and at least $100 million in Series A Senior Preferred Stock (with such amounts subject to adjustment), and (ii) Convertible Notes in
exchange for $5 million of the New First Lien Notes, $20 million of Series A Senior Preferred Stock, $35 million of Series B Preferred Stock and shares of Common Stock of the Company representing 51.6% of the Common Stock of the Company, as provided
for and on the terms set forth in the Restructuring Term Sheet and, as applicable, the Consent Solicitation. 

“Exchanging Holder” means a Noteholder that becomes a party to the RSA. 

“Exchanging Holders” has the meaning set forth in the preamble hereof. 

“Indenture Trustee” means the indenture trustee to the Senior Secured Notes or Convertible Notes, as applicable.

 “Initial Exchanging Holders” has the meaning set forth in the preamble hereof. 

“Launch Date” means the date on which the Company shall commence the Exchange Offer, which shall be at least twenty
(20) Business Days prior to the anticipated Effective Date. 
 “Material Adverse Change” means, when used
with respect to a person, except as publicly disclosed to the Exchanging Holders prior to the date hereof, any change, effect, event or occurrence that, individually or in the aggregate, has had or would reasonably be expected to have a material
adverse effect on (i) the business, financial condition, or operations of the Company and PFSI (or any respective successor thereto) and their consolidated subsidiaries, (ii) the assets, liabilities, properties, results of operations or
condition (financial or otherwise) of the Company and PFSI and their consolidated subsidiaries or (iii) the financial or other ability of the Company to perform its obligations hereunder, provided, however, that anything disclosed
in the Company’s Form 10-K for 2011 shall not be considered a MAC unless the Exchanging Holders so notify the Company within five (5) business days of the release thereof. 

“New First Lien Notes” means up to $105 million in aggregate principal amount of newly-issued senior secured notes issued
in connection with the Exchange Offer on terms set forth in the Restructuring Term Sheet. 
 “Noteholder(s)” has
the meaning set forth in the preamble hereof. 
 “Party” or “Parties” has the meaning set
forth in the preamble hereto. 
 “Person” means an individual, a partnership, a joint venture, a limited
liability company, a corporation, a trust, an unincorporated organization, a group or any legal entity or association. 

  
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 “PFSI” has the meaning set forth in the preamble hereto. 

“Requisite Exchanging Holders” means, collectively, (i) the Requisite Secured Exchanging Holders, and (ii) the
Requisite Convertible Exchanging Holders. 
 “Requisite Convertible Exchanging Holders” means holders of the
Convertible Notes who collectively hold not less than 50% of the principal amount of the Convertible Notes. 
 “Requisite
Secured Exchanging Holders” means holders of the Senior Secured Notes who collectively hold not less than 50% of the principal amount of the Senior Secured Notes. 
 “Restructuring Term Sheet” has the meaning set forth in the recitals hereto. 
 “Restructuring” has the meaning set forth in the recitals hereto. 

“Securities Act” means Securities Act of 1933, as amended. 

“Secured Notes Indenture” has the meaning set forth in the preamble herein. 

“Series A Senior Preferred Stock” means Series A senior preferred stock issued by the Company in connection with the
Restructuring on terms set forth in the Restructuring Term Sheet. 
 “Series B Preferred Stock” means Series B
preferred stock issued by the Company in connection with the Restructuring on terms set forth in the Restructuring Term Sheet. 

“Termination Date” has the meaning set forth in Section 5.8 hereof. 

“Termination Event” has the meaning set forth in Section 5 hereof. 

“Transfer” has the meaning set forth in Section 3(b). 
 2. Effectuating the Restructuring. As long as a Termination Event has not occurred, subject to (i) the terms and conditions of this RSA and (ii) the terms and conditions set forth in the
Restructuring Term Sheet, the Parties shall use their commercially reasonable efforts to: 
  

	 	(a)	effectuate and consummate the Restructuring on the terms described in this RSA and the Restructuring Term Sheet; 

 

	 	(b)	implement the Exchange Offer and the Consent Solicitation; 

  

	 	(c)	obtain all necessary approvals and consents for the Restructuring from all requisite governmental authorities and third parties; 

  
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	 	(d)	complete each of the other transactions as contemplated by the Restructuring Term Sheet; and 

 

	 	(e)	take no actions inconsistent with this RSA, the Restructuring Term Sheet, and any other Definitive Documentation or the expeditious consummation of the Restructuring.

 Without limiting any other provision hereof, as long as a Termination Event has not occurred, each Party hereby
agrees to negotiate and cooperate in good faith in respect of all matters concerning the implementation and consummation of the Restructuring. Furthermore, as long as a Termination Event has not occurred, each Party shall take such action (including
executing and delivering any Definitive Documentation and making and filing any required regulatory filings) as may be reasonably necessary to carry out the purposes and intent of this RSA. 
 3. Agreements of Exchanging Holders. Subject to (i) the terms and conditions of this RSA and (ii) the terms and conditions set forth in the Restructuring Term Sheet, as applicable,
each Exchanging Holder agrees that: 
  

	 	(a)	as long as a Termination Event (as defined herein) has not occurred or has occurred but has been duly waived in accordance with the terms hereof, so long as it is the
legal owner, beneficial owner and/or the investment advisor or manager of or with power and/or authority to bind any Noteholder, (x) it shall (and shall cause each of its Controlled Affiliates, subsidiaries, representatives, agents and
employees to) use its commercially reasonable efforts to support the Restructuring and (i) for Noteholders other than Broadridge, to validly tender and not withdraw such tender in the Exchange Offer of all Senior Secured Notes and/or
Convertible Notes, as applicable, as to which it is the legal owner, beneficial owner or otherwise has the power and/or authority to bind any Noteholder; (ii) for Noteholders other than Broadridge, to deliver consents with respect to all such
Senior Secured Notes and/or Convertible Notes, as applicable, in the Consent Solicitation if consistent with the terms set forth in the Restructuring Term Sheet; and (iii) take no actions inconsistent with the RSA, the Restructuring Term Sheet,
and any other related documents or the expeditious consummation of the Restructuring and (y) Broadridge shall cancel and discharge the Broadridge Seller Note; 

 

	 	(b)	 as long as a Termination Event (as defined herein) has not occurred or has occurred but has been duly waived in accordance with the terms hereof, it
shall not (and shall cause each of its Controlled Affiliates, subsidiaries, representatives, agents, and employees not to) sell, transfer or assign, or grant, issue or sell any option, right to acquire, voting participation or other interest in
(each, a “Transfer”) any Senior Secured Notes, Convertible Notes or the Broadridge Seller Note, as applicable, unless the following criteria are met: (i) the transferor Exchanging Holder notifies Paul, Weiss, Rifkind,
Wharton & Garrison LLP (“Paul, Weiss”) of 

  
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the Transfer and the principal amount of Senior Secured Notes or Convertible Notes, as applicable, to be transferred thereby; and (ii) the transferee party first agrees in writing to be
subject to the terms and conditions of the RSA as an “Exchanging Holder,” and executes a counterpart signature page to the RSA. Any Transfer that does not comply with the foregoing shall be deemed void ab initio. This RSA shall in no way
be construed to preclude the Exchanging Holders from acquiring additional Senior Secured Notes or Convertible Notes, as applicable, provided that any such additional Senior Secured Notes or Convertible Notes, as applicable, shall
automatically be deemed to be subject to the terms of the RSA. In addition, for so long as the RSA has not been terminated in accordance with its terms, an Exchanging Holder may offer, sell or otherwise transfer any or all of its Senior Secured
Notes and/or Convertible Notes to any Affiliated Transferee, who shall be automatically deemed bound by this RSA as an Exchanging Holder; provided, however, Paul, Weiss shall be provided prompt notice of any such offer, sale, or
transfer; provided further that if any Exchanging Holder sells or otherwise transfers all of its notes in accordance with this subsection (b) such that it is no longer a Noteholder, such Exchanging Holder shall no longer have any
obligations hereunder. 
  

	 	(c)	as long as a Termination Event (defined herein) has not occurred or has occurred but has been duly waived in accordance with the terms hereof, Broadridge shall not
transfer, pledge, convert or otherwise alter its legal and economic interest in the Broadridge Seller Note (except in accordance with the terms of this RSA and the Restructuring Term Sheet); 

 

	 	(d)	all Definitive Documentation shall be in form and substance acceptable to the Company Parties in their reasonable discretion; and 

 

	 	(e)	 as long as a Termination Event (as defined herein) has not occurred or has occurred but has been duly waived in accordance with the terms hereof,
(i) if an Exchanging Holder is a holder of the Senior Secured Notes, it shall not (a) direct the Indenture Trustee under the Secured Notes Indenture to pursue any right, remedy or claim (including, without limitation, the acceleration of
any obligation owing in respect of the Senior Secured Notes) for a default of payment obligations under the Secured Notes Indenture against the Company or the guarantors thereunder or its or their respective property or interest in property or
(b) initiate, or have initiated on its behalf, any litigation or proceeding of any kind with respect to a default of payment obligations under the Secured Notes Indenture and the Senior Secured Notes other than to enforce this RSA; (ii) if
an Exchanging Holder is a holder of the Convertible Notes, it shall not (a) direct the Indenture Trustee under the Convertible Notes Indenture to pursue any right, remedy or claim (including, without limitation, the acceleration of any
obligation owing in respect of the Convertible Notes) for a default of payment obligations under the 

  
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Convertible Notes Indenture against the Company or the guarantors thereunder or its or their respective property or interest in property or (b) initiate, or have initiated on its behalf, any
litigation or proceeding of any kind with respect to a default of payment obligations under the Convertible Notes Indenture and the Convertible Notes other than to enforce this RSA; and (iii) to the extent an Exchanging Holder is a holder of
the Broadridge Seller Note, it shall not (a) pursue any right, remedy or claim under the Broadridge Seller Note (including, without limitation, the acceleration of any obligation owing in respect of the Broadridge Seller Note) against the
Company or the guarantors thereunder or its or their respective property or interest in property or (b) initiate, or have initiated on its behalf, any litigation or proceeding of any kind with respect to the obligations under the Broadridge
Seller Note other than to enforce this RSA. 
  

	 	(f)	Notwithstanding anything else in this agreement, except with respect to any current or threatened potential default of payment obligations, no Exchanging Holder waives,
releases or otherwise compromises any rights, claims or causes of action it may have against any person or entity under or related to the Secured Notes Indenture, the Senior Secured Notes, the Convertible Notes Indenture, the Convertible Notes, or
otherwise. 

 4. Agreement of the Company. Subject to (i) the terms and conditions of this RSA and (ii) the terms
and conditions set forth in the Restructuring Term Sheet, as applicable, the Company Parties, until execution of Definitive Documentation: 
  

	 	(a)	agree to use commercially reasonable efforts to (i) support and complete the Restructuring and all other actions contemplated in connection therewith,
(ii) take any and all necessary and appropriate actions in furtherance of the Restructuring, (iii) obtain any and all required regulatory approvals and third-party approvals for the Restructuring, and (iv) not take any actions
inconsistent with this RSA, the Restructuring Term Sheet and any other related documents executed by the Company or the expeditious consummation of the Restructuring. 

 

	 	(b)	shall not, directly or indirectly, seek, solicit, negotiate, support or engage in any discussions relating to, or enter into any agreements relating to, any alternative
proposal other than the Restructuring, nor shall the Company Parties solicit or direct any person or entity, including, without limitation, any member of the Company’s board of directors or any holder of equity in the Company, to undertake any
of the foregoing. 

  

	 	(c)	agree that all Definitive Documentation shall be consistent with, and approved in accordance with, the Restructuring Term Sheet and in form and substance acceptable to
the Requisite Secured Exchanging Holders and/or the Requisite Convertible Exchanging Holders, as applicable, each in their reasonable discretion. 

  
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	 	(d)	agree to pay all reasonable and documented fees and expenses of (i) Fried, Frank, Harris, Shriver & Jacobson LLP and Alvarez & Marsal, advisors
to certain holders of Senior Secured Notes and (ii) Sidley Austin LLP and Macquarie Capital (USA) Inc., advisors to certain holders of Convertible Notes, in each case in accordance with the terms of their existing engagement or fee letters.

  

	 	(e)	shall not modify or amend any of the organizational documents of the Company except as required in connection with any existing obligations under equity-based employee
compensation plans; 

  

	 	(f)	shall not issue, or authorize the issuance of, any equity securities of the Company except securities issued in the ordinary course pursuant to existing equity-based
compensation plans; 

  

	 	(g)	shall not split, combine, redeem or reclassify, or purchase or otherwise acquire any equity securities of the Company, as applicable; 

 

	 	(h)	shall not declare or pay any non-cash dividend or make any non-cash distribution in respect of any equity securities; 

 

	 	(i)	shall not incur or suffer to exist any indebtedness except for working capital borrowings incurred by the Company in the ordinary course of business and consistent with
past practice; 

  

	 	(j)	shall not divest, sell, lease, transfer, assign, or otherwise dispose of, or encumber any assets of the Company, other than the sales of products or services in the
ordinary course of business and consistent with past practice or previously disclosed sales of foreign or related assets; 

  

	 	(k)	shall not amend, modify or terminate any material contract, other than in the ordinary course of business, except for any amendments, modifications or terminations to
achieve cost savings; 

  

	 	(l)	shall not make any material change in the rate of compensation, commission, bonus, or other direct or indirect remuneration payable, or agree to pay, conditionally or
otherwise, any bonus, incentive, retention, change in control payment or other compensation, retirement, welfare, fringe or severance benefit or vacation pay, to or in respect of any employee, officer or director of the Company, except in the
ordinary course of business and consistent with past practice and in connection with the replacement of the chief financial officer, provided that the terms of such replacement have been disclosed to the Requisite Exchanging Holders ;

  
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	 	(m)	shall not enter into or adopt any material employee benefit plan or employment or severance agreement, or amend any material employee benefit plan, except to the extent
required by Law or the terms of the applicable plan; 

  

	 	(n)	shall not authorize, agree, resolve or consent to any of the foregoing; 

  

	 	(o)	shall (A) obtain (i) the waiver of any shareholder vote requirement under NASDAQ Listing Rule 5365 in accordance with Paragraph (f) thereof and
(ii) a determination from NASDAQ, Inc. that NASDAQ Listing Rule 5640 and related Policy IM-5640 shall not be applicable to the issuance of the Series A Senior Preferred Stock as contemplated under this RSA and the Restructuring Term Sheet or
(B) delist from NASDAQ, Inc.; 

  

	 	(p)	shall notify the Requisite Exchanging Holders immediately in writing of any breach of its obligations under the RSA or the Restructuring Term Sheet; and

  

	 	(q)	agree that any Exchanging Holder that sells or otherwise transfers all of its notes in accordance with Section 3(b) hereof such that it is no longer a Noteholder
shall no longer have any obligations hereunder. 

  

	5.	Termination. 

 Subject to
Sections 5.8 and 5.10, this RSA may be terminated upon written notice of the occurrence of any of the following events by any Party electing to terminate to the other Parties (each a “Termination Event”): 

5.1 by the Requisite Secured Exchanging Holders, the Requisite Convertible Exchanging Holders or Broadridge: 

 

	 	(a)	if the Company Parties shall have breached any of their obligations under the RSA or the Restructuring Term Sheet as set forth herein in any material respect, which
breach remains uncured for a period of two (2) business days after the receipt of written notice of such breach from the Requisite Secured Exchanging Holders, the Requisite Convertible Exchanging Holders and/or Broadridge;

  

	 	(b)	if any conditions in the RSA or Restructuring Term Sheet are not satisfied when required to be satisfied, or become incapable of being satisfied, in the reasonable
discretion of the Requisite Secured Exchanging Holders, the Requisite Convertible Exchanging Holders, and/or Broadridge, as applicable, which conditions remain unsatisfied for a period of two (2) business days after the receipt of written
notice thereof from the Requisite Secured Exchanging Holders, the Requisite Convertible Exchanging Holders and/or Broadridge; 

  
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	 	(c)	if the Definitive Documentation does not materially conform in all respects to the Restructuring Term Sheet unless otherwise agreed by the Requisite Secured Exchanging
Holders, the Requisite Convertible Exchanging Holders, and Broadridge, as applicable; 

  

	 	(d)	if the Company fails to launch the Exchange Offer, on terms and conditions described herein and in the Restructuring Term Sheet, by May 14, 2012;

  

	 	(e)	if the Company fails to consummate the Exchange Offer, on terms and conditions described herein and in the Restructuring Term Sheet, by June 29, 2012;

  

	 	(f)	if the Indenture Trustee under the Secured Notes Indentures or Convertible Notes Indenture, as applicable, objects in any respect to or takes action that could
adversely affect the consummation of any of the transactions contemplated by the Restructuring and takes action that challenges the validity or effectiveness of the procedures used by the Company in the making of the Exchange Offer or the Consent
Solicitation; 

  

	 	(g)	if a Material Adverse Change occurs; 

  

	 	(h)	if PFSI or any other regulated entity controlled by PWI (indirectly or otherwise) should be required to send “notice” pursuant to any provision of Securities
Exchange Act Rule 17a-11 and in accordance with paragraph (g) thereof, pursuant to U.S. Commodity Futures Trading Commission Regulation 1.12 or any similar securities regulations to which PFSI or any other regulated entity controlled by PWI
(indirectly or otherwise) is subject; 

  

	 	(i)	if any court of competent jurisdiction or other competent governmental or regulatory authority shall have issued an order making illegal or otherwise restricting,
preventing, or prohibiting the Restructuring in a material way that cannot be reasonably remedied by the Parties. 

  

	 	5.2	by the Company Parties: 

  

	 	(a)	if an Exchanging Holder or Broadridge shall have breached any of its material obligations under the RSA or the Restructuring Term Sheet as set forth herein or therein
in any material respect, which breach remains uncured for a period of ten (10) business days after the receipt of written notice of such breach from the Company; provided that the Termination Event arising as a result of such breach
shall apply only to such Exchanging Holder and this RSA shall otherwise remain in full force and effect, so long as the Requisite Exchanging Holders and Broadridge have not breached the RSA, with respect to the Company Parties, Broadridge and all
other Exchanging Holders; 

  
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	 	(b)	if an Exchanging Holder or Broadridge has failed to comply with its obligations in Section 3(a) of this RSA; 

 

	 	(c)	if any court of competent jurisdiction or other competent governmental or regulatory authority shall have issued an order making illegal or otherwise restricting,
preventing, or prohibiting the Restructuring in a material way that cannot be reasonably remedied by the Parties; or 

  

	 	(d)	if the Board of Directors of the Company determine in good faith that, after consultation with its financial advisors and upon advice of its outside legal counsel,
continued performance under this RSA would be inconsistent with the exercise of fiduciary duties under applicable law; or 

 5.3 by the Requisite Secured Exchanging Holders or Broadridge, if the Requisite Convertible Exchanging Holders shall have breached any of their material obligations under the RSA or the Restructuring Term
Sheet as set forth herein or therein that would have a material adverse effect on the Requisite Secured Exchanging Holders or the consummation of the Restructuring, which breach remains uncured for a period of ten (10) Business Days after the
receipt of written notice of such breach from the Requisite Secured Exchanging Holders and/or Broadridge. 
 5.4 by the
Requisite Convertible Exchanging Holders or Broadridge, if the Requisite Secured Exchanging Holders shall have breached any of their material obligations under the RSA or the Restructuring Term Sheet as set forth herein or therein that would have a
material adverse effect on the Requisite Convertible Exchanging Holders or the consummation of the Restructuring, which breach remains uncured for a period of ten (10) Business Days after the receipt of written notice of such breach from the
Requisite Convertible Exchanging Holders and/or Broadridge. 
 5.5 by the Requisite Secured Exchanging Holders and/or Requisite
Convertible Exchanging Holders, if Broadridge shall have breached any of its material obligations under the RSA or the Restructuring Term Sheet as set forth herein or therein that would have a material adverse effect on the Requisite Secured
Exchanging Holders or the Requisite Convertible Exchanging Holders, as applicable, or the consummation of the Restructuring, which breach remains uncured for a period of ten (10) Business Days after the receipt of written notice of such breach
from the Requisite Secured Exchanging Holders and/or Requisite Convertible Exchanging Holders. 
 5.6 by the mutual consent of
the Requisite Exchanging Holders, Broadridge and the Company Parties for any reason. 
 5.7 by any Noteholder that is an
Exchanging Holder if the transactions contemplated by the Restructuring, including the structure of the Exchange Offer and the receipt of the resulting securities being offered in the Exchange Offer, could result in regulatory requirements or
filings (disclosure or otherwise) or cause other legal, regulatory or compliance requirements, restrictions, obligations or issues with respect to such Noteholder that are not acceptable or otherwise not satisfactory to such Noteholder

  
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in its sole and absolute discretion; provided that such Noteholder and the Parties have used commercially reasonable efforts to avoid any such applicable requirements, filings,
restrictions, obligations or other issues by proposing to the Parties modified series, classes or terms of the securities the Noteholder is to be offered in the Exchange Offer prior to asserting a Termination Event under this Section 5.7;
provided, further that such Noteholder is not under any obligation by reason of this RSA to make, seek or receive any filings, notifications, consents, determinations, authorizations, permits, approvals, licenses or the like with or
provide any documentation or information to any regulatory or self-regulatory bodies having jurisdiction over the Company Parties or the Noteholder; provided that such termination shall apply only to such Exchanging Holder and this RSA shall
otherwise remain in full force and effect with respect to the Company Parties, Broadridge and all other Exchanging Holders. 

5.8 The date on which this RSA is terminated in accordance with the foregoing Section 5.1, 5.2, 5.3, 5.4, 5.5, 5.6 or 5.7 and
Section 5.9 or 5.10 hereof shall be referred to as the “Termination Date”. Notwithstanding any provision in this RSA to the contrary, upon written consent of the Requisite Exchanging Holders, each of the dates set forth in
section 5.1 (d) and (e) (the “Critical Dates”) may be extended prior to or upon such date and such later dates agreed to in lieu thereof and shall be of the same force and effect as the dates provided herein. 

5.9 This RSA shall terminate automatically in the event any cases under the Bankruptcy Code or the Securities Investor Protection Act
(“SIPA”) are commenced by or against the Company or PFSI (or any other domestic affiliate thereof, as applicable) in any jurisdiction, and solely in the event of an involuntary filing against the Company or PFSI or a proceeding
under SIPA, such involuntary case or proceeding is not dismissed within fifteen (15) days of filing. 
 5.10 If a
Termination Event occurs, this RSA shall terminate automatically unless the Requisite Exchanging Holders and Broadridge provide the Company written notice within three (3) Business Days (such 3 Business Day period to start on the day such
Termination Event occurs, if such day is a Business Day, and on the first Business Day after the day such Termination Event occurs, if such day is not a Business Day) that such Termination Event has been waived, cured, modified or the time to
perform the requirements herein extended, provided that such action will not effect any Noteholder asserting a Termination Event under Section 5.7 hereof, and this RSA shall be terminated and such Termination Event may not be waived as
to such Noteholder, and such Noteholder shall have no remaining obligations hereunder. 
 5.11 In the event the Requisite
Secured Exchanging Holders, the Requisite Convertible Exchanging Holders, Broadridge or any other Party to this RSA assert that a Termination Event has occurred, any Party may seek expedited relief with a court of competent jurisdiction, challenging
such assertion, and no Party to this RSA shall be permitted to challenge such request for expedited relief. 

  
 13 

 6. Good Faith Cooperation; Further Assurances; Transaction Documents. As long as a Termination Event
has not occurred, the Exchanging Holders and the Company hereby covenant and agree to negotiate in good faith the Definitive Documentation, each of which shall (i) contain the same economic terms as, and other terms consistent in all material
respects with, the terms set forth in the Restructuring Term Sheet, (ii) except as otherwise provided for herein, be in form and substance acceptable in all respects to each Party in its reasonable discretion; and (iii) be consistent with
this RSA and the Restructuring Term Sheet in all respects. 
 7. Effectiveness. This RSA will be effective and binding upon the Company
and the undersigned Exchanging Holders as of the date on which: (i) the Company shall have executed and delivered counterpart signature pages of this RSA to counsel to the Exchanging Holders, (ii) the Requisite Secured Exchanging Holders
and the Requisite Convertible Exchanging Holders shall have executed and delivered counterpart signature pages of this RSA to counsel to the Company, and (iii) Broadridge shall have executed and delivered counterpart signature pages of this RSA
to counsel to the Company and to counsel to the Exchanging Holders. 
 8. Representations and Warranties. Each Party hereby represents
and warrants to the other Parties that the following statements are true and correct as of the date hereof: 
  

	 	(a)	it has all requisite corporate, partnership, limited liability company, or similar authority to enter into this RSA and carry out the transactions contemplated hereby
and perform its obligations contemplated hereunder; and the execution and delivery of this RSA and the performance of such Party’s obligations hereunder have been duly authorized by all necessary corporate, partnership, limited liability
company, or other similar action on its part; 

  

	 	(b)	the execution, delivery, and performance by such Party of this RSA does not and shall not (i) violate (A) any provision of law, rule, or regulation applicable
to it or any of its subsidiaries or (B) its charter or bylaws (or other similar governing documents) or those of any of its subsidiaries or (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both)
a default under any material contractual obligation to which it or any of its subsidiaries is a party; 

  

	 	(c)	except as otherwise provided herein or in the Restructuring Term Sheet and except for any filings required to be made with the Securities and Exchange Commission or
other securities regulatory authorities under applicable securities laws, the execution, delivery, and performance by such Party of this RSA does not and shall not require any registration or filing with, consent or approval of, notice to, or other
action to, with or by, any federal, state, or governmental authority or regulatory body; 

  

	 	(d)	this RSA is the legally valid and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of a court of competent jurisdiction; and

  
 14 

	 	(e)	If such Party is an Exchanging Holder, and subject to any limitations set forth in its signature page’s listing of owned securities (e.g., held in total return
swap), such Exchanging Holder, as of the date of this RSA: 

  

	 	(i)	is the beneficial owner of the principal amount of the Senior Secured Notes, Convertible Notes and/or Broadridge Seller Note, as applicable, set forth on the signature
page hereto, or is the nominee, investment manager, or advisor for one or more beneficial holders thereof, and has voting power or authority or discretion with respect to, the Senior Secured Notes, Convertible Notes and/or Broadridge Seller Note, as
applicable, including, without limitation, to vote, exchange, assign, and transfer such notes; 

  

	 	(ii)	holds its notes free and clear, other than pursuant to this RSA, of any claim, equity, option, proxy, voting restriction, right of first refusal, or other limitation on
disposition or encumbrances of any kind that could adversely affect in any way such Exchanging Holder’s performance of its obligations contained in this RSA at the time such obligations are required to be performed (except that a non-material
portion of Notes may be on loan); and 

  

	 	(iii)	(A) has such knowledge and experience in financial and business matters of this type that it is capable of evaluating the merits and risks of entering into this
Restructuring Support Agreement and of making an informed investment decision, and has conducted an independent review and analysis of the business and affairs of the Company that it considers sufficient and reasonable for purposes of entering into
this Agreement and (B) is an “accredited investor” (as defined by Rule 501 of the Securities Act of 1933, as amended). 

 9. Access. At all times prior to the Launch Date, the Exchanging Holders and their advisors shall have, upon reasonable advance notice and subject to the Confidentiality Agreement or, if such
Exchanging Holder is not a party to the Confidentiality Agreement, after entry into a confidentiality agreement in form and substance satisfactory to the Company, complete and timely access to the Company Parties’ books and records, as well as
the Company Parties’ management and professional advisors, for the purpose of completing due diligence and negotiating the Definitive Documentation. At all times following the Launch Date and prior to the Effective Date, each of Exchanging
Holders and their advisors shall have, upon reasonable advance notice and subject to the Confidentiality Agreement or, if such Exchanging Holder is not a party to the Confidentiality Agreement, after entry into a confidentiality agreement in form
and 

  
 15 

 
substance satisfactory to the Company Parties, complete and timely access to the Company Parties’ books and records, as well as the Company Parties’ management and professional
advisors, for the purpose of conducting reasonable due diligence and negotiating the Definitive Documentation. 
 10. Entire Agreement.
This RSA, including any exhibits, schedules and annexes hereto constitutes the entire agreement of the Company Parties and the Exchanging Holders with respect to the subject matter of this RSA, and supersedes all other prior negotiations, agreements
and understandings, whether written or oral, among the Parties with respect to the subject matter of this RSA, other than the Confidentiality Agreement which remains unaltered. 
 11. Reservation of Rights. Except as expressly provided in section 3(e) of this RSA, nothing herein is intended to, or does, in any manner waive, limit, impair or restrict the ability of each Party
to pursue, protect and preserve its rights, remedies, and interests, including, without limitation, its claims against other Parties or parties or their respective Affiliates. Nothing herein shall be deemed an admission of any kind. Nothing
contained herein effects a modification of the Parties’ or the Indenture Trustee’s rights under the Senior Secured Notes or Convertible Notes, as applicable, the Secured Notes Indenture, the Convertible Notes Indentures or Broadridge
Seller Note or other documents and agreements unless and until the Effective Date has occurred and only then as set forth in the Definitive Documentation. If the transactions contemplated herein are not consummated, or if this RSA terminates for any
reason prior to the Effective Date, the Parties fully reserve any and all of their rights. 
 12. No Waiver. This RSA and the
Restructuring Term Sheet are part of a proposed settlement of matters that could otherwise be the subject of litigation among the Parties hereto. If the transactions contemplated herein are not consummated, or following the occurrence of the
Termination Date, if applicable, nothing shall be construed herein as a waiver by any Party of any or all of such Party’s rights and the Parties expressly reserve any and all of their respective rights. Pursuant to Federal Rule of Evidence 408
and any other applicable rules of evidence, this RSA and all negotiations relating hereto shall not be admissible into evidence in any proceeding other than a proceeding to enforce its terms. 
 13. Counterparts. This RSA may be executed in one or more counterparts, each of which, when so executed, shall constitute the same instrument and the counterparts may be delivered personally or by
electronic mail in portable document format (.pdf). 
 14. Amendments. Except as otherwise provided herein or in the Restructuring Term
Sheet, this RSA, the Restructuring Term Sheet, the Exchange Offer and the Definitive Documentation may not be modified, amended or supplemented, or any provisions herein or therein waived without the prior written consent of the Requisite Secured
Exchanging Holders, the Requisite Convertible Exchanging Holders and Broadridge (and may be modified, amended or supplemented with such consent). 

  
 16 

 15. No Assignment. Subject to the terms and conditions of any valid Transfer hereunder, this RSA
shall not be assigned by any party hereto without the prior written consent of the Exchanging Holders. 
 16. Headings. The headings of
the sections, paragraphs and subsections of this RSA are inserted for convenience only and shall not affect the interpretation hereof. 
 17.
Relationship Among Parties. It is understood and agreed that any Exchanging Holder may trade in the notes or other debt or equity securities of the Company without the consent of the Company or any Exchanging Holder, subject to applicable
securities laws and Section 3(b) hereof. No Party shall have any responsibility for any such trading by any other entity by virtue of this RSA. No prior history, pattern or practice of sharing confidences among or between Parties shall
in any way affect or negate this understanding and agreement. For the avoidance of doubt, (i) the execution of this RSA by any Exchanging Holder shall not create, or be deemed to create, any fiduciary or other duties (actual or implied) to any
other Exchanging Holder, or other party other than as expressly set forth in this RSA and (ii) no Exchanging Holder shall be responsible for, or have any obligation with respect to, any duties or obligations of any other Exchanging Holder or
other party under the RSA. 
 18. Specific Performance. It is understood and agreed by the Parties that money damages would be an
insufficient remedy for any breach of this RSA by any Party and each non-breaching Party shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy of any such breach, including, without limitation, an order
of a court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder. 
 19. Survival.
Notwithstanding (i) any Transfer of the notes in accordance with Section 3(b) of this RSA or (ii) the termination of this RSA in accordance with its terms, only Sections 11, 12, 13, 15, 17, 22 and 23 and this Section 19 shall
survive such Transfer and/or termination and shall continue in full force and effect for the benefit of the Exchanging Holder in accordance with the terms hereof. 
 20. Governing Law. This RSA shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to such state’s choice of law provisions which would
require the application of the law of any other jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of New York and of the United States of
America in each case located in New York County for any action arising out of or relating to this RSA or the Restructuring Term Sheet and the transactions contemplated hereby and thereby (and agrees not to commence any action relating hereto or
thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to its address set forth in Section 21 shall be effective service of process for any action brought against it
in any such court. 

  
 17 

 21. Notices. All notices, requests and other communications hereunder must be in writing and will be
deemed to have been duly given only if delivered personally or by electronic mail format (.pdf) with first class mail confirmation to the Parties at the following addresses or email addresses: 

 

			
		 	 If to any of the Company Parties:
  

Penson Worldwide, Inc.
 Andrew Koslow,
Esq.
 1700 Pacific Avenue, Suite 1400

Dallas, TX 75201
  
 E-mail: akoslow@penson.com
  

with a copy to (which shall not constitute notice):
  

Andrew Rosenberg, Esq.
 Paul, Weiss, Rifkind,
Wharton & Garrison LLP
 1285 Avenue of the Americas
 New York, New York 10019
  

E-mail: arosenberg@paulweiss.com
  

If to the Requisite Secured Exchanging Holders:
  

To the addresses and email addresses set forth on the signature pages hereto.

 
 with a copy to (which shall not constitute notice):

 
 Brad Eric Scheler, Esq.
 Fried, Frank, Harris, Shriver & Jacobson LLP
 One New York Plaza

New York, New York 10004
  
 E-mail: Brad.Eric.Scheler@friedfrank.com
  
 If to the Requisite Convertible Exchanging Holders:
  
 To the addresses and email addresses set forth on the signature pages hereto.

 

  
 18 

			
		 	 with a copy to (which shall not constitute notice):
  

Bojan Guzina, Esq.
 Sidley Austin LLP

One South Dearborn
 Chicago, IL 60603

 
 Email: BGuzina@sidley.com

 
 If to Broadridge:

 
 To the addresses and email addresses set forth on the signature pages
hereto.
  
 with a copy to (which shall not constitute notice):

 
 Adam D. Amsterdam
 Broadridge Financial Solutions, Inc.
 1981 Marcus Avenue

Lake Success, NY 11042
 E-mail: Adam.
Amsterdam@broadridge.com
  
 Stephen D. Lerner

Squire Sanders (US) LLP
 221 E. Fourth Street,
Suite 2900
 Cincinnati, OH 45202-4095

E-mail: Stephen.Lerner@squiresanders.com

 or such other address or email address as such party may hereafter specify by like notice to the other parties hereto.
All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any
such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 

22. No Third-Party Beneficiaries. The terms and provisions of this RSA are intended solely for the benefit of the Parties and their respective
successors and permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any other Person. 

23. Public Disclosure. Except as otherwise required by any law, rule, order or regulation, the Company Parties shall not (a) use the name of
the Exchanging Holder or its manager, advisor, or Affiliates in any press release without the Exchanging Holder’s prior written consent or (b) disclose holdings of the Exchanging Holder to any Person; provided, however, that
the Company Parties shall be permitted to disclose at any time the aggregate principal amount of and aggregate percentage of notes held by the 

  
 19 

 
Exchanging Holders. The Exchanging Holders shall not use the name of the Company Parties in any press release without the Company’s prior written consent. Nothing contained herein shall be
deemed to waive, amend or modify the terms of any confidentiality or non-disclosure agreement between the Company and any Exchanging Holder. 

  
 20 

 IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized officers to execute
and deliver this RSA as of the date first above written. 
  

			
	PENSON WORLDWIDE, INC.
		
	By:	 	 
		 	 Name:

Title:

  

			
	PENSON FINANCIAL SERVICES, INC.
		
	By:	 	 
		 	 Name:

Title:

  

			
	SAI HOLDINGS, INC.
		
	By:	 	 
		 	 Name:

Title:

  

			
	PENSON HOLDINGS, INC.
		
	By:	 	 
		 	 Name:

Title:

 Signature Page to Restructuring Support Agreement 

  
 21 

 
					
	 EXCHANGING HOLDER:
  

[INSERT NAME OF EXCHANGING HOLDER ]

		
	 By:
	 	 
			
		 	 Name:
	 	 
			
		 	 Title:
	 	 
			
		 	 Address:
	 	 
	
	Amount of Senior Secured Notes and/or Convertible Notes Held by Exchanging Holder:
		
	 $
	 	 

 Signature Page to Restructuring Support Agreement 

  
 22 

 
					
	BROADRIDGE FINANCIAL SOLUTIONS, INC.
		
	By:	 	 
			
		 	Name:	 	 
			
		 	Title:	 	 
			
		 	Address:	 	 

  

					
	RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC.
		
	By:	 	 
			
		 	Name:	 	 
			
		 	Title:	 	 
			
		 	Address:	 	 
		 		 	

 Signature Page to Restructuring Support Agreement 

  
 23 

 EXHIBIT A 

Restructuring Term Sheet 

 PENSON WORLDWIDE, INC. 

FINANCIAL RESTRUCTURING 
 SUMMARY OF INITIAL PRINCIPAL TERMS 
 March 13, 2012 

This non-binding indicative term sheet (the “Term Sheet”) sets forth certain principal terms and conditions of a proposed restructuring
(the “Restructuring”) of the outstanding indebtedness and equity of Penson Worldwide, Inc. (“PWI”) and its subsidiaries and affiliates (collectively, the “Company”) pursuant to an out-of-court
exchange offer (the “Exchange Offer”). 
 This Term Sheet shall be governed by Rule 408 of the Federal Rules of Evidence and
any and all similar and applicable rules and statutory provisions governing the non-admissibility of settlement discussion. Nothing herein and nothing contemplated by or resulting from any of the transactions contemplated herein will prejudice or
act as waiver of any claims, causes of action or defenses the Company, the parties hereto or any third-party may have relating to the Company. The proposed terms and conditions set forth in this Term Sheet are intended merely as an outline of
certain material terms of a financial restructuring and are provided for discussion purposes only and do not constitute an offer, agreement or binding commitment by or on behalf of any party. This Term Sheet does not include descriptions of all of
the terms, conditions and other provisions that would be contained in definitive documentation relating to a financial restructuring and is not intended to limit the scope of discussion and negotiation of any matters not inconsistent with the
specific matters set forth herein. In addition, this Term Sheet is subject to tax and accounting review. This Term Sheet is not a binding obligation to consummate a financial restructuring. Any such obligation will be created only by definitive
agreements, the provisions of which will supersede this Term Sheet, and any obligation to support and pursue a transaction on the terms set forth in this Term Sheet, will be created only by a related support agreement pursuant to the terms of such
support agreement. 
 I. Treatment of Company’s Debt and Equity and Terms of Exchange Offer 

 

			
		
	Revolver:	  	The Company, the Majority Secured Noteholders (as defined below) and the Majority Convertible Noteholders (as defined below) will mutually agree on whether to repay in full any
remaining outstanding amounts due under the Second Amended and Restated Credit Agreement among PWI and Regions Bank (the “Credit Agreement”) and terminate the Credit Agreement. If the Credit Agreement’s terms prevent
consummation of the Restructuring on the terms set forth in this Term Sheet without lender consent, then the Credit Agreement will be terminated and the amounts outstanding will be repaid in full.

  
 1 

			
		
	Senior Secured
Notes:	  	 The 12.5% Senior Second Lien Secured Notes due 2017 issued by PWI (the “Secured Notes”) will be exchanged for a
combination of (i) new first lien senior secured notes in the aggregate principal amount of up to $100 million, with an interest rate of 12.5% payable in kind (the “New First Lien Notes”)1, and (ii) $100 million of newly issued
Series A senior preferred stock (the “Series A Senior Preferred Stock”).2
  
 The New First Lien Notes will mature on April 1, 2017, and will have typical first-lien covenants and provisions, including, without limitation, lien maintenance covenants, mandatory prepayments in
the event of asset sales and capital raises, and limitations on the incurrence of debt without the consent of the majority of the holders of the New First Lien Notes, unless the proceeds of such debt are used to pay down the New First Lien Notes,
and a change of control put.
  
 The Series A Senior Preferred Stock will have
voting rights as set forth in footnote 3 below,3 a 12.5% cumulative dividend accruing semi-annually (PIK), and a senior liquidation preference over all other equity securities of the Company due on the fifth anniversary of the closing of the
Exchange Offer (the “Fifth Anniversary”), payable prior to any distributions on the Series B Preferred Stock or the Common Stock (each defined below). The Series A Senior Preferred Stock will have specific governance rights, and be
non-convertible.
  
 All terms of the New First Lien Notes and the Series A
Senior Preferred Stock shall be reasonably acceptable to the Company and the holders of a majority in principal amount of the Secured Notes (the “Majority Secured Noteholders”).

  

	1 	 To the extent any holders of the Secured Notes fail to exchange their Secured Notes, the liens securing the New First Lien Notes will be senior to the
liens securing the outstanding Secured Notes. 

	2 	 At the election of the Majority Secured Noteholders and in their sole and absolute discretion, the split between the $100 million in New First Lien
Notes and $100 million of Series A Senior Preferred Stock may be adjusted; provided that the aggregate amount of the New First Lien Notes and Series A Senior Preferred Stock exchanged for the Secured Notes is $200 million and the aggregate amount of
the New First Lien Notes exchanged for the Secured Notes does not exceed $100 million. The structure of the Exchange Offer and the resulting Series A Senior Preferred Stock will be in compliance with the applicable legal and regulatory requirements
and any compliance procedures of each of the Majority Secured Noteholders and is subject to adjustments as determined by each Majority Secured Noteholder, in its sole and absolute discretion, as to the treatment and securities each Majority Secured
Noteholder is to receive in the Restructuring. For example, if it is determined by any of the Majority Secured Noteholders that entering into any transaction or agreement as part of the Restructuring would cause it to incur additional legal,
compliance or regulatory requirements, restrictions, obligations or other issues that are unacceptable to such holder in its sole and absolute discretion, such holder may choose to receive non-voting securities in whole or in part instead of voting
securities, such as “Non-Voting Series A Preferred Stock” that has otherwise similar terms and conditions to the voting securities it would otherwise receive in the Exchange Offer. For the avoidance of doubt, any such adjustments that are
inconsistent with the terms of the Term Sheet and that would otherwise have an adverse impact on the holders of the Convertible Notes must be reasonably acceptable to the Majority Convertible Noteholders. 

			
		
	Convertible
Notes:	  	 The 8% Convertible Notes due 2014 issued by PWI (the “Convertible Notes”) will be exchanged for (i) $5 million in
aggregate principal amount of the New First Lien Notes, (ii) $20 million of Series A Senior Preferred Stock and (iii) a combination of $35 million of newly issued Series B preferred stock, which Series B will be junior to the Series A Senior
Preferred Stock in all respects, and which will be non-voting other than Delaware law minimum requirements and other than as set forth herein (the “Series B Preferred Stock”), and newly issued shares of common stock representing
51.6% of the outstanding shares of common stock of PWI upon consummation of the Exchange Offer (the “Common Stock”). The holders of the Series B Preferred Stock will have the right to vote as a separate series on (i) the election of
the director(s) that such holders are entitled to elect pursuant to the “Governance” section below and (ii) any amendments to the terms of the Series B Preferred Stock, which shall require the vote of holders of a majority of the
outstanding Series B Preferred Stock solely to the extent Section 242(b) of the DGCL requires (which vote limitation terminates upon the full redemption of Series A Senior Preferred Stock). In addition, as to any matter that is not presented to the
holders of Series B Preferred on a series basis after the full redemption of the Series A Senior Preferred Stock, the holders of the Series B Preferred shall be entitled to vote together as a single class with the holders of Common Stock and shall
have 75% of the total vote.
  
 The Series B Preferred Stock will have a 12.5%
cumulative dividend accruing semi-annually (PIK), a perpetual junior liquidating preference to the Series A Senior Preferred Stock and be non-convertible. All other terms of the Series B Preferred Stock shall be reasonably acceptable to the Company
and holders of a majority in principal amount of the Convertible Notes (the “Majority Convertible Noteholders”); there shall be no financial covenants in the Series B Preferred Stock that are more restrictive than those contained in
the Series A Preferred Stock.

  

	3 	 Specifically, Series A Senior Preferred Stock will (i) vote on a majority basis as to its own Series A as to any matter as to which holders of
such series are entitled to vote separately as a series, and (ii) except (x) as set forth under the “Convertible Notes” section below and (y) where a separate vote of any other class or series is required by law, as to any
matter on which one or more such other class or series of stock are entitled to vote, vote together with the holders of any such class or series in a manner where a majority of the holders of Series A have 80% of the total vote.

			
		
	Broadridge
Note:	  	 The Broadridge Seller Note will be exchanged for newly issued shares representing 9.9% of the Common Stock and the Broadridge Seller
Note will be cancelled and discharged.
  
 Broadridge Financial Solutions,
Inc. (together with its subsidiaries and affiliates, “Broadridge”) will not receive any additional Common Stock in connection with the reverse stock split and the total amount of Common Stock Broadridge will receive in connection
with the Restructuring shall not exceed 9.9%.

		
	Existing
Equity:	  	After consummation of the Exchange Offer, the Company will seek to effect a reverse stock split as mutually agreed with the Majority Secured Noteholders and Majority Convertible
Noteholders.
		
	Subordinated
Debt at
PFSI:	  	SAI Holdings, Inc. and PWI subordinated debt at Penson Financial Services, Inc. (“PFSI”) may be subject to a standstill agreement (terms to be negotiated) as to
interest and debt payments or be converted into equity interests of PFSI, at the election of the Majority Secured Noteholders and the Company.
		
	Securities
Act:	  	The foregoing securities exchanges will be pursuant to Section 3(a)(9) of the Securities Act, to the extent possible, and otherwise, by a method that is reasonably acceptable to the
Company, the Majority of Secured Noteholders, and the Majority of Convertible Noteholders, such that the securities received in the Restructuring shall be freely tradeable.

 II. Other Terms of the Exchange Offer 

 

			
		
	Indenture
Amendments:	  	The indentures governing the Secured Notes and the Convertible Notes will be amended immediately prior to the Exchange Offer to the extent necessary to permit the transactions
contemplated in this Term Sheet. The terms of the amended indentures and the related consent solicitation shall be reasonably acceptable to the Company, the Majority Secured Noteholders and the Majority Convertible Noteholders.
		
	Shareholder
Vote:	  	None.

			
		
	Registration
Rights:	  	PWI will enter into a registration rights agreement for the Series A Senior Preferred Stock, the Series B Preferred Stock and the Common Stock, with each agreement on terms
reasonably acceptable to the Company, the Majority Secured Noteholders, the Majority Convertible Noteholders (solely with respect to the Series B Preferred Stock and Common Stock) and Broadridge (solely with respect to the Common
Stock).
		
	Chief
Turnaround
Officer:	  	Upon the commencement of the Exchange Offer, an interim management firm will be selected by the Company from two candidates identified by the Majority Secured Noteholders. Such firm
will be engaged by the Company as the Chief Turnaround Officer and will assist the Company in improving its operations on terms to be determined by the Majority Secured Noteholders.
		
	Governance:	  	Any current member of the Board of Directors of PWI will resign upon the request of the Majority Secured Noteholders and Majority Convertible Noteholders. Upon the consummation of
the Restructuring, the Board of Directors of PWI will consist of seven directors. Until the Series A Senior Preferred Stock has been redeemed in full, (i) holders of the Series A Senior Preferred Stock will be entitled to elect up to four directors,
(ii) holders of the Series B Preferred Stock will be entitled to elect one director, and (iii) holders of Common Stock will be entitled to elect two directors voting as set forth in clause (ii) of footnote 3, with one such generally elected director
being the Company’s Chief Executive Officer. After the Series A Preferred Stock has been redeemed in full, then, until the Series B Preferred Stock has been redeemed in full, holders of the Series B Preferred Stock will be entitled to elect up
to four directors and holders of Common Stock will be entitled to elect three directors.
		
	Other
Terms:	  	 In connection with its approval of the Restructuring and Exchange Offer, the Company’s Board of Directors will take necessary
actions to provide for approval under Section 203 of the DGCL.
 This Term Sheet sets forth certain but not all of the principal and other terms
of the Restructuring and Exchange Offer. The Restructuring and Exchange Offer will ultimately include certain other terms that are reasonably acceptable to the Company, the Majority Secured Noteholders, the Majority Convertible Noteholders and
Broadridge.
  
 Terms of a management incentive plan, if any, to be agreed
upon by the Chief Turnaround Officer and the newly appointed Board of Directors appointed after the closing of the Exchange Offer.

		
	Governing
Law:	  	New York.

 III. Assumptions and Conditions to Exchange Offer 

 

			
		
	Broadridge Financial
Solutions Inc.
Agreements:	  	The Master Services Agreement dated as of November 2, 2009 between the Company and Broadridge (the “MSA”) shall be modified, as set forth on Exhibit A
hereto.
		
	Delivery of Financial
Statements:	  	The Majority Secured Noteholders and the Majority Convertible Noteholders shall have received and be reasonably satisfied with the fiscal year end financial statements of the
Company for the fiscal year ended December 31, 2011, prepared in conformity with generally accepted auditing principles and audited and accompanied by a report and opinion of BDO Seidman LLP or other independent certified public accountant of
nationally recognized standing reasonably acceptable to the Majority Noteholders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like
qualification or exception or any qualification or exception as to the scope of such audit. The Majority Secured Noteholders and the Majority Convertible Noteholders shall also have received full and complete and updated monthly financial statements
through closing beginning with January 2012.
		
	Acceptance of
Exchange Offer:	  	At least 95% of the holders of the Secured Notes accept the terms of the Exchange Offer, subject to waiver by the Majority Secured Noteholders. At least 95% of the holders of
Convertible Notes accept the terms of the Exchange Offer. Holders who exchange into their respective exchange offers receive pro rata shares of the offered securities.
		
	Press Release:	  	All public statements by the Company (including press releases, Form 8-Ks or other statements) to be acceptable to the Majority Secured Noteholders, the Majority Convertible
Noteholders and Broadridge, subject to applicable law.
		
	Restructuring Support
Agreement	  	Notwithstanding anything to the contrary contained herein, this Term Sheet is subject to Section 4(c) of the Restructuring Support Agreement.

			
		
	Other Conditions
to Exchange
Offer:	  	 In addition to the foregoing, the Restructuring shall be subject to usual and customary and necessary conditions for a transaction of
this type, as well as other conditions reasonably satisfactory to the Majority Secured Noteholders, and, when applicable, the Majority Convertible Noteholders (to the extent such conditions would be inconsistent with the terms of the Term Sheet or
would otherwise have an adverse impact on the holders of the Convertible Notes) and Broadridge (to the extent such conditions would be inconsistent with the terms of the Term Sheet or would otherwise have an adverse impact on Broadridge), including,
without limitation,
  

•    All organizational documents of PWI shall be amended to be in form and substance
reasonably acceptable to the Majority Secured Noteholders and the Majority Convertible Noteholders, when applicable, and to effectuate a to-be-determined reverse stock split;

 
 •    The Exchange
Offer shall be structured to be tax efficient from a federal and state income tax perspective (to the Majority Secured Noteholders, the Majority Convertible Noteholders and to the Company, among other points) and shall be reasonably acceptable to
the Company, the Majority Secured Noteholders and Majority Convertible Noteholders;
  
 •    Except as otherwise provided herein, the terms, conditions and circumstances of any and all documents relating to the Exchange Offer, the Restructuring and the Company shall
be reasonably acceptable to the Majority Secured Noteholders, the Majority Convertible Noteholders and Broadridge in all respects and provided that if acceptable to the Majority Secured Noteholders, it will be deemed to be acceptable to the Majority
Convertible Noteholders unless it would be inconsistent with the terms of the Term Sheet or would otherwise have an adverse impact on the holders of Convertible Notes;
  

•    The Company shall have continued to engage in a good faith process with the
Majority Secured Noteholders, the Majority Convertible Noteholders and Broadridge, including the prompt payment of all fees and expenses of the legal and financial advisors to the Majority Secured Noteholders and the Majority Convertible
Noteholders, and all outstanding invoices of such advisors shall be paid in full prior to the close of the Exchange Offer;

			
		
		 	 •    All accounting treatment and other tax matters shall be resolved
to the satisfaction of the Company, the Majority Secured Noteholders and the Majority Convertible Noteholders only to the extent that any such treatment or resolution would be inconsistent with the terms of the Term Sheet or would otherwise have an
adverse impact on the holders of Convertible Notes;
  
 •    No material short-term lender counterparty shall have terminated its funding commitments to the Company;

 
 •    A Form 1017
that is reasonably acceptable to the Majority Secured Noteholders shall have been filed promptly and affirmatively processed and approved by FINRA; and
  

•    All requisite governmental or regulatory approvals for the Exchange Offer and the
Restructuring shall have been obtained and no governmental or regulatory authority shall have taken any action that could reasonably be expected to have a material adverse effect on the consummation of the Restructuring, including, without
limitation, the Financial Industry Regulatory Authority, Inc. and the Securities and Exchange Commission.

 EXHIBIT A 

Modifications to Broadridge Master Services Agreement 
 Broadridge and the Company shall enter into an amendment to the Master Services Agreement dated as of November 9, 2009 (“MSA”), in form and substance acceptable to the Company and
Broadridge and reasonably acceptable to the Majority Secured Noteholders and the Majority Convertible Noteholders, that provides for the following amendments: 
 1. Broadridge or its affiliates, as applicable, will continue to pay PWI or its affiliates, as applicable, the amounts provided in Section XIX of Schedule A to the MSA, in accordance with the terms of
that certain side letter agreement by and between the Company and Broadridge, dated as of March 13, 2012. 
 2. Inclusion of new services to
be provided by Broadridge to the Company under the MSA. Broadridge and the Company will identify functions currently performed by the Company that Broadridge can provide to the Company at material savings to the Company. Broadridge will provide
those services to the Company at its cost. Broadridge will absorb the training expense required to initiate such services. To avoid confusion, the amounts paid by the Company for such new services will not count towards fulfilling any existing
revenue commitments the Company has to Broadridge under the MSA, provided that such services are new services and not of the type described in paragraph 3 below that are to be provided by Broadridge under the existing terms of the MSA, as clarified
pursuant to paragraph 3. The Company can cancel these services at any time upon 30 days notice without any financial obligation. 
 3.
Clarification that certain types of services are available to the Company under the existing terms of the MSA and Schedules thereto. The Transferred Technology Services schedule to the MSA will be amended to make clear that certain additional
services discussed by the parties (“Additional Services”), including, without limitation, cost basis, systems administration, data base administration, trade upload support, QA, and Hosting, are available under the existing terms of
the MSA and Schedules thereto and will be provided by Broadridge to the Company without any increases in current monthly billing. A complete list of Additional Services shall be agreed upon between the parties.Amended and Restated Credit and Security Agreement

 Exhibit 10.7 

 
  
 $50,000,000 
 AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

 Between 
 SUN HYDRAULICS CORPORATION 
 as Borrower, 

and 

FIFTH THIRD BANK, 
 as Lender 
 Dated as of August 1, 2011 

 
  

 TABLE OF CONTENTS 

 

									
	 ARTICLE I DEFINITIONS
	  	 	1	  
		 	Section 1.1	  	Defined Terms.	  	 	1	  
		 	Section 1.2	  	Other Definitional Provisions; Time References.	  	 	24	  
		 	Section 1.3	  	Accounting Terms.	  	 	25	  
		
	 ARTICLE II THE LOANS; AMOUNT AND TERMS
	  	 	26	  
		 	Section 2.1	  	Revolving Facility.	  	 	26	  
		 	Section 2.2	  	Accordion Facility.	  	 	28	  
		 	Section 2.3	  	Construction Facility	  	 	31	  
		 	Section 2.4	  	Letters of Credit.	  	 	32	  
		 	Section 2.5	  	Prepayments.	  	 	34	  
		 	Section 2.6	  	Default Rate.	  	 	34	  
		 	Section 2.7	  	Conversion Options.	  	 	34	  
		 	Section 2.8	  	Computation of Interest and Fees.	  	 	35	  
		 	Section 2.9	  	Payments.	  	 	36	  
		 	Section 2.10	  	Inability to Determine Interest Rate.	  	 	37	  
		 	Section 2.11	  	Illegality.	  	 	37	  
		 	Section 2.12	  	Yield Protection.	  	 	37	  
		 	Section 2.13	  	Indemnity.	  	 	39	  
		 	Section 2.14	  	Taxes.	  	 	39	  
		 	Section 2.15	  	Letters of Credit Indemnification; Nature of Lender’s Duties.	  	 	40	  
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	 	41	  
		 	Section 3.1	  	Financial Condition.	  	 	41	  
		 	Section 3.2	  	No Change.	  	 	42	  
		 	Section 3.3	  	Corporate Existence; Compliance with Law; Patriot Act Information.	  	 	42	  
		 	Section 3.4	  	Corporate Power; Authorization; Enforceable Obligations.	  	 	42	  
		 	Section 3.5	  	Compliance with Laws; No Conflict; No Default.	  	 	43	  
		 	Section 3.6	  	No Material Litigation.	  	 	44	  
		 	Section 3.7	  	Investment Company Act; PUHCA; Etc.	  	 	44	  
		 	Section 3.8	  	Margin Regulations.	  	 	44	  
		 	Section 3.9	  	ERISA.	  	 	44	  
		 	Section 3.10	  	Environmental Matters.	  	 	45	  
		 	Section 3.11	  	Purpose of Facilities.	  	 	46	  
		 	Section 3.12	  	Subsidiaries.	  	 	46	  
		 	Section 3.13	  	Ownership; Insurance.	  	 	46	  
		 	Section 3.14	  	Indebtedness.	  	 	46	  
		 	Section 3.15	  	Taxes.	  	 	47	  
		 	Section 3.16	  	Intellectual Property.	  	 	47	  
		 	Section 3.17	  	Solvency.	  	 	47	  
		 	Section 3.18	  	Investments.	  	 	47	  
		 	Section 3.19	  	Location of Collateral.	  	 	48	  
		 	Section 3.20	  	No Burdensome Restrictions.	  	 	48	  
		 	Section 3.21	  	Labor Matters.	  	 	48	  
		 	Section 3.22	  	Accuracy and Completeness of Information.	  	 	48	  

  
 i 

									
		 	Section 3.23	  	Material Contracts.	  	 	48	  
		 	Section 3.24	  	Brokers’ Fees.	  	 	49	  
		 	Section 3.25	  	Anti-Terrorism Laws.	  	 	49	  
		 	Section 3.26	  	Compliance with OFAC Rules and Regulations.	  	 	49	  
		 	Section 3.27	  	Compliance with FCPA.	  	 	49	  
		
	 ARTICLE IV CONDITIONS PRECEDENT
	  	 	50	  
		 	Section 4.1	  	Conditions to Closing and Initial Extensions of Credit.	  	 	50	  
		 	Section 4.2	  	Conditions to the Accordion Facility.	  	 	52	  
		 	Section 4.3	  	Conditions to All Extensions of Credit.	  	 	53	  
		
	 ARTICLE V AFFIRMATIVE COVENANTS
	  	 	54	  
		 	Section 5.1	  	Financial Statements.	  	 	54	  
		 	Section 5.2	  	Certificates; Other Information.	  	 	55	  
		 	Section 5.3	  	Payment of Taxes and Other Obligations.	  	 	56	  
		 	Section 5.4	  	Conduct of Business and Maintenance of Existence.	  	 	56	  
		 	Section 5.5	  	Maintenance of Property; Insurance.	  	 	56	  
		 	Section 5.6	  	Inspection of Property; Books and Records; Discussions.	  	 	57	  
		 	Section 5.7	  	Notices.	  	 	57	  
		 	Section 5.8	  	Environmental Laws.	  	 	58	  
		 	Section 5.9	  	Financial Covenants.	  	 	59	  
		 	Section 5.10	  	Compliance with Law.	  	 	60	  
		 	Section 5.11	  	Pledged Assets.	  	 	60	  
		 	Section 5.12	  	Covenants Regarding Intellectual Property.	  	 	60	  
		 	Section 5.13	  	Deposit and Securities Accounts.	  	 	61	  
		 	Section 5.14	  	Further Assurances.	  	 	61	  
		
	 ARTICLE VI NEGATIVE COVENANTS
	  	 	62	  
		 	Section 6.1	  	Indebtedness.	  	 	62	  
		 	Section 6.2	  	Liens.	  	 	62	  
		 	Section 6.3	  	Guaranty Obligations.	  	 	62	  
		 	Section 6.4	  	Nature of Business.	  	 	63	  
		 	Section 6.5	  	Consolidation, Merger, Sale or Purchase of Assets, etc.	  	 	63	  
		 	Section 6.6	  	Advances, Investments and Loans.	  	 	64	  
		 	Section 6.7	  	Transactions with Affiliates.	  	 	64	  
		 	Section 6.8	  	Ownership of Subsidiaries; Restrictions.	  	 	64	  
		 	Section 6.9	  	Fiscal Year; Organizational Documents; Material Contracts.	  	 	64	  
		 	Section 6.10	  	Limitation on Restricted Actions.	  	 	65	  
		 	Section 6.11	  	Restricted Payments.	  	 	65	  
		 	Section 6.12	  	Sale Leasebacks.	  	 	65	  
		 	Section 6.13	  	No Further Negative Pledges.	  	 	66	  
		 	Section 6.14	  	Modifications of Subordinated Indebtedness.	  	 	66	  
		 	Section 6.15	  	Foreign Asset Purchases.	  	 	66	  
		 	Section 6.16	  	Transfer or Change of Location of Collateral.	  	 	66	  
		 	Section 6.17	  	Change of Borrower’s Name.	  	 	66	  

  
 ii 

									
	 ARTICLE VII EVENTS OF DEFAULT
	  	 	67	  
		 	Section 7.1	  	Events of Default.	  	 	67	  
		 	Section 7.2	  	Acceleration; Remedies.	  	 	69	  
		
	 ARTICLE VIII THE CONSTRUCTION FACILITY
	  	 	70	  
		 	Section 8.1	  	Construction Advances.	  	 	70	  
		 	Section 8.2	  	Stored Materials.	  	 	70	  
		 	Section 8.3	  	Requests for Advances.	  	 	71	  
		 	Section 8.4	  	Disbursement Amounts.	  	 	71	  
		 	Section 8.5	  	Conditions to Initial Construction Disbursement.	  	 	72	  
		 	Section 8.6	  	Subsequent Disbursements.	  	 	73	  
		 	Section 8.7	  	Final Construction Disbursement.	  	 	74	  
		 	Section 8.8	  	Additional Conditions to Disbursement.	  	 	74	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	75	  
		 	Section 9.1	  	Modification, Waiver, Consent.	  	 	75	  
		 	Section 9.2	  	Notices.	  	 	76	  
		 	Section 9.3	  	No Waiver; Cumulative Remedies.	  	 	77	  
		 	Section 9.4	  	Survival of Representations and Warranties.	  	 	77	  
		 	Section 9.5	  	Payment of Expenses and Taxes; Indemnity.	  	 	77	  
		 	Section 9.6	  	Successors and Assigns; Assignment.	  	 	78	  
		 	Section 9.7	  	Right of Set off.	  	 	79	  
		 	Section 9.8	  	Table of Contents and Section Headings.	  	 	79	  
		 	Section 9.9	  	Counterparts; Effectiveness.	  	 	80	  
		 	Section 9.10	  	Severability.	  	 	80	  
		 	Section 9.11	  	Integration.	  	 	80	  
		 	Section 9.12	  	Governing Law.	  	 	80	  
		 	Section 9.13	  	Consent to Jurisdiction and Service of Process.	  	 	80	  
		 	Section 9.14	  	Acknowledgments.	  	 	81	  
		 	Section 9.15	  	Waivers of Jury Trial; Waiver of Consequential Damages.	  	 	81	  
		 	Section 9.16	  	Patriot Act Notice.	  	 	81	  
		 	Section 9.17	  	Resolution of Drafting Ambiguities.	  	 	81	  
		 	Section 9.18	  	Continuing Agreement.	  	 	81	  
		 	Section 9.19	  	Press Releases and Related Matters.	  	 	82	  
		 	Section 9.20	  	No Advisory or Fiduciary Responsibility.	  	 	82	  
		 	Section 9.21	  	Responsible Officers.	  	 	83	  

  
 iii

 Schedules 
  

			
	Schedule 1.1-1	  	Account Designation Letter
	Schedule 1.1-4	  	Permitted Liens
	Schedule 1.1-6	  	Existing Letters of Credit
	Schedule 2.1(b)(i)	  	Form of Notice of Borrowing
	Schedule 2.7	  	Form of Notice of Conversion
	Schedule 3.3	  	Patriot Act Information
	Schedule 3.6	  	Litigation
	Schedule 3.10	  	Environmental Issues
	Schedule 3.12	  	Subsidiaries
	Schedule 3.16	  	Intellectual Property
	Schedule 3.19(a)	  	Location of Real Property
	Schedule 3.19(b)	  	Location of Collateral
	Schedule 3.19(c)	  	Chief Executive Offices/Principal Places of Business
	Schedule 3.21	  	Labor Matters
	Schedule 3.23	  	Material Contracts
	Schedule 4.1-1	  	Form of Secretary’s Certificate
	Schedule 4.1-2	  	Form of Solvency Certificate
	Schedule 4.2(b)	  	Form of Accordion Note
	Schedule 4.2(b)(2)	  	Form of Security Agreement
	Schedule 5.2(b)	  	Form of Compliance Certificate
	Schedule 5.5(b)	  	Insurance
	Schedule 6.1(b)	  	Indebtedness

  
 iv 

 THIS AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT, dated as of August 1,
2011, is made by SUN HYDRAULICS CORPORATION, a Florida corporation (“Borrower”), and FIFTH THIRD BANK, an Ohio banking corporation (“Lender”). 

W I T N E S S E T H: 

WHEREAS, Borrower has requested that Lender make loans and other financial accommodations to Borrower in an aggregate amount of up to
$50,000,000, as more particularly described herein; and 
 WHEREAS, Lender has agreed to make such loans and other financial
accommodations to Borrower on the terms and conditions contained herein. 
 NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein, the parties hereto hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 Section 1.1 Defined Terms. 
 As used in this Agreement, terms defined
in the preamble to this Agreement have the meanings therein indicated, and the following terms have the following meanings: 

“Accordion Advance(s)” means Advance(s) of a portion of the Accordion Facility. 

“Accordion Facility” means the revolving line of credit described in Section 2.2, below. 

“Accordion Commitment Fee” has the meaning set forth in Section 2.2(e). 

“Accordion Commitment Period” means the period from the Closing Date to, but not including, the Maturity Date.

 “Accordion Committed Amount” has the meaning set forth in Section 2.2(a). 

“Accordion Note” means the promissory note of Borrower in favor of Lender evidencing the Accordion Facility provided
pursuant to Section 2.2(d), as such promissory note may be amended, modified, extended, restated, replaced, or supplemented from time to time. 
 “Account Designation Letter” means the Notice of Account Designation Letter dated the Closing Date from Borrower to Lender substantially in the form attached hereto as Schedule
1.1-1. 
 “Activated” means, with respect to the Accordion Facility, all conditions precedent set forth in
Sections 4.1 and 4.2 have occurred or been satisfied. 

  
 1 

 “Advance” shall mean a Revolving Advance, and Accordion Advance, or
Construction Advance. 
 “Affiliate” means as to any Person, any other Person (excluding any Subsidiary) which,
directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a Person if such Person possesses, directly or
indirectly, power either (a) to vote 20% or more of the securities having ordinary voting power for the election of directors of such Person or (b) to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise. Notwithstanding the foregoing, Lender shall not be deemed an Affiliate of any of Borrower solely by reason of the relationship created by the Credit Documents. 

“Agreement” or “Credit Agreement” means this Agreement, as amended, modified, extended, restated,
replaced, or supplemented from time to time in accordance with its terms. 
 “Anti-Terrorism Order” means that
certain Executive Order 13224 signed into law on September 23, 2001. 
 “Applicable Interest Rate” means,
(i) with respect to LIBOR Rate Advances, the LIBOR Rate, plus the Applicable Percentage, and (ii) with respect to Base Rate Advances, the Base Rate, plus the Applicable Percentage. 

“Applicable Percentage” means, for any day: 
 (a) prior to the date that the Accordion Facility is Activated, for Revolving Advances and for Letter of Credit Fees, a rate per annum of 1.45%; 

(b) from and after the date that the Accordion Facility is Activated, for Revolving Advances, Accordion Advances and Letter of Credit
Fees, the rate per annum set forth below opposite the applicable Level then in effect, it being understood that the Applicable Percentage for (i) Base Rate Advances shall be the percentage set forth under the column “Base Rate
Margin”, (ii) LIBOR Rate Advances and the Letter of Credit Fee shall be the percentage set forth under the column “LIBOR Rate Margin/Letter of Credit Fee” and (iii) the Unused Fee on the unused portion of the Accordion
Facility shall be the percentage set forth under the column “Accordion Facility Unused Fee”: 
  

															
	 Level
	  	 Leverage Ratio
	  	Base Rate
Margin	 	 	LIBOR Rate
Margin/
Letter of Credit Fee	 	 	Accordion
Facility Unused
Fee	 
					
	I	  	£ 1.00x	  	 	-0.25	% 	 	 	1.45	% 	 	 	0.0	% 
					
	II	  	> 1.00 but £ 1.50x	  	 	-0.25	% 	 	 	1.65	% 	 	 	0.20	% 
					
	III	  	> 1.50 but £ 2.00	  	 	0.00	% 	 	 	1.75	% 	 	 	0.25	% 
					
	IV	  	>2.00 but £ 2.50x	  	 	0.00	% 	 	 	2.00	% 	 	 	0.30	% 
					
	V	  	>2.50x	  	 	0.00	% 	 	 	2.25	% 	 	 	0.35	% 

  
 2 

 (c) for Construction Advances, the rate per annum set forth below opposite the applicable
Level then in effect, it being understood that the Applicable Percentage shall be (i) the percentage set forth in the “LIBOR Rate Margin” column if the LIBOR Rate is applicable and (ii) the percentage set forth in the “Base
Rate Margin” column if the Base Rate is applicable: 
  

											
	 Level
	  	 Leverage Ratio
	  	Base Rate
Margin	 	 	LIBOR Rate
Margin	 
				
	I	  	£ 1.00x	  	 	-0.05	% 	 	 	1.65	% 
				
	II	  	> 1.00 but £ 1.50x	  	 	-0.05	% 	 	 	1.85	% 
				
	III	  	> 1.50 but £ 2.00	  	 	0.20	% 	 	 	1.95	% 
				
	IV	  	>2.00 but £ 2.50x	  	 	0.20	% 	 	 	2.20	% 
				
	V	  	>2.50x	  	 	0.20	% 	 	 	2.45	% 

 The Applicable Percentage shall, in each case, be determined and adjusted quarterly on the date five (5) Business
Days after the date on which Lender has received from Borrower the quarterly financial information and certifications required to be delivered to Lender and Lender in accordance with the provisions of Sections 5.1(a) and (b) and 5.2(b) (each an
“Interest Determination Date”). Such Applicable Percentage shall be effective from such Interest Determination Date until the next Interest Determination Date. If Borrower shall fail to provide the financial information and
certifications in accordance with the provisions of Sections 5.1(a) and (b) and 5.2(b), the Applicable Percentage shall, on the date five (5) Business Days after the date by which Borrower was so required to provide such financial
information and certifications to Lender and Lender, be based on Level V until such time as such information and certifications are provided. In the event that any financial statement or certification delivered pursuant to Sections 5.1 or 5.2 is
shown by written and credible evidence to be inaccurate (regardless of whether this Agreement or any of the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a
higher Applicable Percentage for any period (an “Applicable Period”) than the Applicable Percentage applied for such Applicable Period, Borrower shall immediately (a) deliver to Lender a corrected compliance certificate for
such Applicable Period, (b) determine the Applicable Percentage for such Applicable Period based upon the corrected compliance certificate, and (c) immediately pay to Lender for the benefit of Lender the accrued additional interest and
other fees owing as a result of such increased Applicable Percentage for such Applicable Period, which payment shall be promptly distributed by Lender to Lender entitled thereto. It is acknowledged and agreed that nothing contained herein shall
limit the rights of Lender and Lender under the Credit Documents, including their rights under Sections 2.8 and 7.1. 

“Appraisal” means an appraisal report with respect to the Project prepared by a real estate appraiser acceptable to
Lender setting forth the “as completed” fair market value of the Project. 
 “BR Default Rate” means,
as of any date of determination, the Base Rate plus the Applicable Percentage for Base Rate Loans in effect on such date plus 3%. 

  
 3 

 “Bank Product” means any of the following products, services or facilities
extended to Borrower or any Subsidiary by Lender: (a) Cash Management Services; and (b) products under any Hedging Agreement. 
 “Bank Product Debt” means the Indebtedness and other obligations of Borrower or its Subsidiaries relating to Bank Products. 

“Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded
or replaced from time to time. 
 “Bankruptcy Event” means any of the events described in Section 7.1(e).

 “Base Rate” means, for any day, the lending rate as announced by Lender, from time to time, as its Base Rate
which may change as often as daily. In the event that Lender does not, for any reason, announce a Base Rate or discontinues the use of the term “Base Rate” as a benchmark for interest rates on its loans, the Base Rate shall be equal to the
Prime Rate. 
 The terms “Base Rate” and “Prime Rate” are intended by the parties to be benchmarks only and
are not to be construed as indicating that such rates are the best or lowest rates offered by the entity quoting such rate to any of its customers regardless of their creditworthiness. 

“Base Rate Advances” means Advances that bear interest at an interest rate based on the Base Rate. 

“Borrower” has the meaning set forth in the first paragraph of this Agreement. 

“Borrower’s Architect” means the architect or engineer selected by Borrower to prepare the Plans and conduct
construction progress inspections for the Project. 
 “Borrower’s Obligations,” “Borrower
Obligations” and “Borrower Obligation” mean, collectively or individually, as applicable, without duplication, (i) all of the obligations, indebtedness and liabilities of Borrower to Lender, whenever arising, under this
Agreement, the Notes or any of the other Credit Documents including principal, interest, fees, reimbursements and indemnification obligations and other amounts (including, but not limited to, any interest accruing after the occurrence of a filing of
a petition of bankruptcy under the Bankruptcy Code with respect to Borrower, regardless of whether such interest is an allowed claim under the Bankruptcy Code) and (ii) all Bank Product Debt. 

“Borrowing Date” means, in respect of any Loan, the date such Loan is made. 

“Budget” means the budget setting forth the total of the Construction Costs and Non-Construction Costs, as estimated by
Borrower and Borrower’s Architect in order to enable Borrower to complete the Project in accordance with the Plans. 

“Business” means the meaning set forth in Section 3.10(a)(ii). 

“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in Tampa, Florida are
authorized or required by law to close; provided, 

  
 4 

 
however, that when used in connection with a rate determination, borrowing or payment in respect of a LIBOR Rate Loan, “Business Day” means any day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar market. 
 “Capital Lease” means
any lease of property, real or personal, the obligations with respect to which are required to be capitalized on a balance sheet of the lessee in accordance with GAAP. 
 “Capital Lease Obligations” means the capitalized lease obligations relating to a Capital Lease determined in accordance with GAAP. 

“Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or
business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership interests (whether general or limited), (iv) in the case of
a limited liability company, membership interests and (v) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, in all of the
foregoing other than nonvoting stock appreciation rights, nonvoting management incentive plan or other nonvoting participatory interests that are payable as part of the compensation plan of Borrower. 

“Cash Collateralize” means to pledge and deposit with or deliver to Lender, as collateral for LOC Obligations, cash or
deposit account balances or, other credit support, in each case pursuant to documentation in form and substance satisfactory Lender. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such
cash collateral and other credit support. 
 “Cash Equivalents” means (i) securities issued or directly
and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof) having maturities of not more than
twelve months from the date of acquisition (“Government Obligations”), (ii) U.S. dollar denominated time deposits, certificates of deposit, Eurodollar time deposits and Eurodollar certificates of deposit of with or issued by
Lender, in each case with maturities of not more than one year from the date of acquisition, (iii) bankers acceptances issued by Lender, (iv) commercial paper and variable or fixed rate notes issued by Lender or any variable rate notes
issued by, or guaranteed by any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within twelve months of the date of acquisition,
(v) repurchase agreements with Lender or a recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States of America, (vi) obligations of any
state of the United States or any political subdivision thereof for the payment of the principal and redemption price of and interest on which there shall have been irrevocably deposited Government Obligations maturing as to principal and interest
at times and in amounts sufficient to provide such payment, (vii) demand deposits with Lender and (viii) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses
(i) through (vii) of this definition. 

  
 5 

 “Cash Management Services” means any services provided from time to time to
Borrower or any Subsidiary of Borrower in connection with operating, collections, payroll, trust, or other depository or disbursement accounts, including automatic clearinghouse, controlled disbursement, depository, electronic funds transfer,
information reporting, lockbox, stop payment, overdraft and/or wire transfer services and all other treasury and cash management services. 
 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty,
(b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not
having the force of law) by any Governmental Authority; provided, that notwithstanding anything herein to the contrary, all requests, rules, guidelines or directives issued under or in connection with the Dodd-Frank Wall Street Reform and
Consumer Protection Act shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 

“Change of Control” means the occurrence, after the date of this Agreement, of (i) the acquisition by any Person or
group of Persons (within the meaning of Section 13(d) or Section 14(a) of the Securities Exchange Act of 1934, as amended) of beneficial ownership of (within the meaning of Rule 13d-3 promulgated by the SEC under said Act) fifty-one
percent (51%) or more of the voting Capital Stock of Borrower, or (ii) within any period of twelve (12) consecutive calendar months, individuals who were directors of Borrower on the first day of such period, together with any
directors whose election by such board of directors or whose nomination for election by the shareholders was approved by a vote of the majority of the directors then in office shall cease to constitute a majority of the board of directors of the
Borrower. 
 “Closing Date” means the date of this Agreement. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

“Collateral” means a collective reference to Domestic Business Assets of Borrower and its Domestic Subsidiaries, as the
same may be expressly set forth in the Security Agreement required to be delivered by Borrower to Lender in the event that the Accordion Facility is Activated. 
 “Commitment Letter” means the letter agreement dated May 2, 2011 addressed to Borrower from Lender and accepted by Borrower on May 13, 2011, as may be amended, modified,
extended, restated, replaced, or supplemented from time to time. 
 “Commitments” means, collectively, the
commitment of Lender to make Revolving Advances, Accordion Advances and Construction Advances. 
 “Commonly Controlled
Entity” means an entity, whether or not incorporated, which is under common control with Borrower within the meaning of Section 4001(b)(1) of ERISA or is part of a group which includes Borrower and which is treated as a single employer
under Section 414(b) or 414(c) of the Code or, solely for purposes of Section 412 of the Code to the extent required by such Section, Section 414(m) or 414(o) of the Code. 

  
 6 

 “Completion Date” means the date which is two (2) years after date of
the Initial Construction Disbursement. 
 “Completion of Improvements” means lien-free completion of the
Improvements in accordance with the Plans, as evidenced (i) by compliance on the part of Borrower or the Project, as the case may be, with all Legal Requirements relating to the occupancy and use of the Improvements, including all necessary
certificates of occupancy (or their equivalent), and (ii) by the documents, items and things described in Section 8.7. 
 “Compliance Certificate” has the meaning set forth in Section 5.2(b). 
 “Consolidated” or “consolidated” means, with reference to any term defined herein, such term as applied to the accounts of Borrower and its Subsidiaries, consolidated in
accordance with GAAP. 
 “Consolidated EBIT” means, for any period, for Borrower and its Subsidiaries on a
Consolidated basis, Consolidated Net Income for such period and the sum of the following to the extent deducted in the calculation of Consolidated Net Income: (i) total federal, state, local and foreign income taxes, and (ii) Consolidated
Interest Expense, all as determined in accordance with GAAP. 
 “Consolidated EBITDA” means, for any period,
for Borrower and its Subsidiaries on a Consolidated basis, Consolidated Net Income for such period and the sum of the following to the extent deducted in the calculation of Consolidated Net Income: (i) total federal, state, local and foreign
income taxes, (ii) Consolidated Interest Expense and (iii) depreciation and amortization, all as determined in accordance with GAAP. 
 “Consolidated Funded Debt” means, for any period, the Funded Debt of Borrower and its Subsidiaries on a Consolidated basis. 

“Consolidated Interest Expense” means, for any period, for Borrower and its Subsidiaries on a Consolidated basis, total
interest expense (including that attributable to Capital Lease Obligations) for such period with respect to all outstanding Indebtedness of Borrower and its Subsidiaries (including, without limitation, all commissions, discounts and other fees and
charges owed by such Persons with respect to letters of credit and bankers’ acceptance financing and net costs of such Persons under Hedge Agreements in respect of interest rates to the extent such net costs are allocable to such period in
accordance with GAAP) but excluding any fair market value adjustments related to Hedge Agreements. 
 “Consolidated Net
Income” means, for any period, for Borrower and its Subsidiaries on a Consolidated basis, the net income after taxes for such period, as determined in accordance with GAAP. 

“Consolidated Tangible Net Worth” means, for any period, for Borrower and its Subsidiaries on a Consolidated basis,
Consolidated Total Tangible Assets minus Consolidated Total Liabilities as determined in accordance with GAAP applied on a consistent basis. 

  
 7 

 “Consolidated Total Liabilities” means for any period, for Borrower and its
Subsidiaries on a Consolidated basis, total liabilities (including, without limitation, capitalized leases and all reserves for deferred taxes and other deferred sums appearing on the liabilities side of a balance sheet of Borrower and its
Subsidiaries, and all obligations as lessee under off-balance sheet synthetic leases) determined in accordance with GAAP applied on a consistent basis. 
 “Consolidated Total Tangible Assets” means, for any period, for Borrower and its Subsidiaries on a Consolidated basis, consolidated total assets, as determined in accordance with GAAP
applied on a consistent basis; provided that for purposes of this computation, the aggregate amount of any intangible assets of Borrower and its Subsidiaries, including, without limitation, goodwill, franchises, licenses, patents, trademarks,
trade names, copyrights, service marks and brand names, shall be subtracted from total assets. 
 “Construction
Advance(s)” means Advance(s) of a portion of the Construction Facility. 
 “Construction Contract”
means (collectively, if more than one) the A.I.A. “Standard Form of Agreement (guaranteed fixed price) between Owner and Contractor” providing for the construction of the Improvements (together with any amendments or replacements of such
contract(s) that Borrower may enter into). 
 “Construction Costs” means all hard costs (e.g., for labor,
materials and fixtures) incurred and to be incurred in the construction of the Improvements that are payable in whole or in part from proceeds of the Loan, as more particularly described in the Budget. 

“Construction Facility” means the loan for construction and/or remodeling of building improvements described in
Section 2.3, below. 
 “Construction Facility Commitment Fee” has the meaning set forth in
Section 2.3(c). 
 Construction Facility Conversion Date” means the date which is two (2) years after the
date of the Initial Construction Disbursement. 
 “Construction Facility Maturity Date” means the date which is
seven (7) years after the Closing Date. 
 “Construction Facility Amount” has the meaning set forth in
Section 2.3. 
 “Construction Note” means the promissory note of Borrower in favor of Lender evidencing
the Construction Facility provided pursuant to Section 2.3, as such promissory note may be amended, modified, extended, restated, replaced, or supplemented from time to time. 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any
agreement, instrument or undertaking to which such Person is a party or by which it or any of its property is bound. 

“Contractor” means the general contractor selected by Borrower to construct the Improvements. 

  
 8 

 “Copyright Licenses” means any agreement, whether written or oral,
providing for the grant by or to a Person of any right under any Copyright, including, without limitation, any thereof referred to in Schedule 3.16 to this Agreement. 
 “Copyrights” means all copyrights (other than copyrights of de minimus value) of Borrower and its Subsidiaries in all works, now existing or hereafter created or acquired, all
registrations and recordings thereof, and all applications in connection therewith, whether in the United States Copyright Office or in any similar office or agency of the United States, any state thereof or any other country or any political
subdivision thereof, or otherwise, including, without limitation, any thereof referred to in Schedule 3.16 and all renewals thereof. 
 “Covenant Not To Encumber” means the Covenant Not To Encumber dated as of the Closing Date given by Borrower to Lender for recording in the public records of Sarasota County, Florida and
Manatee County, Florida, in each case as amended, modified, extended, restated, replaced or supplemented from time to time. 

“Credit Documents” means this Agreement, each of the Notes, the Letters of Credit and any other LOC Documents, the
Security Documents, documents evidencing and/or related to Bank Products and all other agreements, documents, certificates and instruments delivered to Lender by Borrower in connection herewith or therewith. 

“Debtor Relief Laws” means the Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect. 

“Default” means any of the events specified in Section 7.1, whether or not any requirement for the giving of notice
or the lapse of time, or both, or any other condition, has been satisfied. 
 “Default Rate” shall mean
(a) when used with respect to Borrower’s Obligations, other than Letter of Credit Fees, an interest rate equal to (i) for Base Rate Advances, the BR Default Rate and (ii) for LIBOR Rate Advances, the LIBOR Default Rate,
(b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Percentage applicable to Letter of Credit Fees plus 3.00% per annum and (c) when used with respect to any other fee or amount due hereunder, a
rate equal to the BR Default Rate. 
 “Deposit Account Control Agreement” shall mean an agreement, among
Borrower, a depository institution, and Lender, which agreement is in a form acceptable to Lender and which provides Lender with “control” (as such term is used in Article 9 of the UCC) over the deposit account(s) described therein, as the
same may be amended, modified, extended, restated, replaced, or supplemented from time to time. 
 “Dollars”
and “$”means dollars in lawful currency of the United States. 
 “Domestic Business Assets”
means, with respect to any Person, all tangible and intangible assets, including, without limitation, cash, Cash Equivalents, securities, accounts receivable, inventory, supplies, equipment, Patents, Patent Licenses, Trademarks and Trademark

  
 9 

 
Licenses, but excluding real property and real property improvements, owned by such Person which are located within any state or commonwealth of the United States or the District of Columbia and
are used or are usable in connection with any business activity or operation of such Person. 
 “Domestic
Subsidiary” means any Subsidiary of Borrower that is organized and existing under the laws of the United States or any state or commonwealth thereof or under the laws of the District of Columbia. 

“Draw Request” means a request, on the AIA form of Application and Certificate for Payment (AIA Document G702), or on
such other form(s) as Lender may require, by Borrower for an Advance of a portion of the Construction Facility. 
 “EBIT
to Interest Expense Ratio” means, , during the four (4) consecutive fiscal quarter period ending on the last day of the applicable period, for Borrower and its Subsidiaries on a Consolidated basis, the ratio of (a) Consolidated
EBIT for such period to (b) Consolidated Interest Expense for such period. 
 “Effective Accordion Note
Amount” means the stated principal amount of the Accordion Note then in effect. 
 “Environmental
Issues” has the meaning set forth in Section 3.10(b). 
 “Environmental Laws” means any and all
applicable foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental Authority or other Requirement of Law (including common law) regulating, relating to or
imposing liability or standards of conduct concerning protection of human health or the environment, as now or may at any time be in effect during the term of this Agreement. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “ERISA Plan” means, at any particular time, any employee benefit plan which is covered by Title IV of ERISA and in respect of which Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
 “Eurodollar Reserve Percentage” means for any day, the percentage (rounded if necessary, to the nearest 1/100,000 of 1% (to five decimals points)) which is in effect for such day as
prescribed by the Federal Reserve Board (or any successor) for determining the maximum reserve requirement (including without limitation any basic, supplemental or emergency reserves) in respect of Eurocurrency liabilities, as defined in Regulation
D of such Board as in effect from time to time, or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. 
 “Event of Default” means any of the events specified in Section 7.1; provided, however, that any requirement for the giving of notice or the lapse of time, or both, or
any other condition, has been satisfied. 

  
 10 

 “Existing Letter of Credit” means each of the Letters of Credit described
by applicant, date of issuance, letter of credit number, amount, beneficiary and the date of expiry on Schedule 1.1-6 hereto, if any. 
 “Extension of Credit” means, the making of an Advance by Lender or the issuance of a Letter of Credit by Lender. 
 “Facilities” means, collectively, the Revolving Facility, the Accordion Facility, if Activated, and the Construction Facility. 

“Final Construction Disbursement” shall have the meaning set forth in Section 8.7. 

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. 

“Funded Debt” means, with respect to any Person, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) all obligations of such Person under conditional sale or other title
retention agreements relating to property purchased by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person
incurred, issued or assumed as the deferred purchase price of property or services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within six months of the incurrence thereof) which would appear as
liabilities on a balance sheet of such Person, (e) the principal portion of all Capital Lease Obligations of such Person, (f) all obligations of such Person under Hedging Agreements, excluding any portion thereof which would be accounted
for as interest expense under GAAP, (g) the maximum amount of all letters of credit issued or bankers’ acceptances facilities created for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed), (h) all preferred Capital Stock issued by such Person and which by the terms thereof could be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund payments, redemption or other acceleration,
(i) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product, (j) all indebtedness of others of the type described in clauses
(a) through (i) hereof secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, property owned or acquired by
such Person, whether or not the obligations secured thereby have been assumed, (k) all Guaranty Obligations of such Person with respect to Indebtedness of another Person of the type described in clauses (a) through (i) hereof, and
(l) all indebtedness of the type described in clauses (a) through (i) hereof of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer. 

“GAAP” means: (a) prior to the date that Borrower is required to adopt International Financial Reporting Standards
(“IFRS”), generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principal Board and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the

  
 11 

 
circumstances as of the date of determination, consistently applied; and (b) on and after the date that Borrower is required to adopt IFRS, IFRS as issued and set forth in the pronouncements
of the International Accounting Standards Board, including standards and interpretations approved by the International Accounting Standards Board and its predecessor the International Accounting Standards Committee, that are applicable to the
circumstances as of the date of determination, consistently applied. 
 “Government Acts” means the meaning set
forth in Section 2.15. 
 “Governmental Authority” means any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory, taxing or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the
European Central Bank). 
 “Guaranty Obligations” means, with respect to any Person, without duplication, any
obligations of such Person (other than endorsements in the ordinary course of business of negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any Indebtedness of any other Person in any manner, whether direct or
indirect, and including without limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any property constituting security therefor, (ii) to advance or provide funds or other support for the payment
or purchase of any such Indebtedness or to maintain working capital, solvency or other balance sheet condition of such other Person (including without limitation keep well agreements, maintenance agreements, comfort letters or similar agreements or
arrangements) for the benefit of any holder of Indebtedness of such other Person, (iii) to lease or purchase Property, securities or services primarily for the purpose of assuring the holder of such Indebtedness, or (iv) to otherwise
assure or hold harmless the holder of such Indebtedness against loss in respect thereof. The amount of any Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding
principal amount (or maximum principal amount, if larger) of the Indebtedness in respect of which such Guaranty Obligation is made. 
 “Hedging Agreements” means, with respect to any Person, any ISDA Master Agreement, Confirmation and Schedules between Borrower and Lender or any Affiliate of Lender executed on the
Closing Date or at any time prior to or after the Closing Date or any other agreement between Borrower and Lender or any Affiliate of Lender heretofore or hereafter entered into, which provides for an interest rate, currency, equity, credit or
commodity swap, cap, floor or collar, spot or foreign exchange transaction, cross-currency rate swap, currency option, any combination thereof, or option with respect to, any of the foregoing or any similar transactions, for the purpose of hedging
Borrower’s exposure to fluctuations in interest rates, exchange rates, currency, stock, portfolio or loan valuations or commodity prices (including any such or similar agreement or transaction entered into by Lender or any Affiliate of Lender
in connection with any other agreement or transaction between Borrower and Lender or any Affiliate of Lender.) 

“Holdback” means the retainage with respect to disbursements for Construction Costs, as provided in Subsection 8.4(a).

  
 12 

 “Improvements” means all buildings, parking and driveway areas, landscaping
and other improvements constructed or remodeled using the proceeds of the Construction Facility, all as more particularly described in the Plans. 
 “Increased Accordion Amount” has the meaning set forth in Section 2.2. 
 “Indebtedness” means, with respect to any Person, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person
(other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person issued or assumed as the deferred purchase price of property or
services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within six months of the incurrence thereof) which would appear as liabilities on a balance sheet of such Person, (e) all obligations
of such Person under take-or-pay or similar arrangements or under commodities agreements, (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (g) all Guaranty Obligations of such Person with respect to
Indebtedness of another Person, (h) the principal portion of all Capital Lease Obligations of such Person, (i) all obligations of such Person under Hedging Agreements, excluding any portion thereof which would be accounted for as interest
expense under GAAP, (j) the maximum amount of all letters of credit issued or bankers’ acceptances facilities created for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed),
(k) all preferred Capital Stock issued by such Person and which by the terms thereof could be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund payments, redemption or other acceleration, (l) the
principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product and (m) the Indebtedness of any partnership or unincorporated joint venture in which
such Person is a general partner or a joint venturer. 
 “Indemnified Taxes” means Taxes other than Net Income
Taxes. 
 “Indemnitee” shall have the meaning set forth in Section 9.5(b). 

“Initial Accordion Amount” has the meaning set forth in Section 2.2. 

“Initial Construction Disbursement” means the initial disbursement by Lender for payment of Construction Costs, to be
made upon the fulfillment of the conditions set forth in Section 8.5. 
 “Insolvency” means, with respect
to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA. 
 “Insolvent” means being in a condition of Insolvency. 

  
 13 

 “Inspecting Engineer” means any engineer, architect or consultant
designated by Lender from time to time to perform the duties of Inspecting Engineer as provided herein. 
 “Intellectual
Property” means all Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses of Borrower and its Subsidiaries, all goodwill associated therewith and all rights to sue for infringement thereof. 

“Interest Period” means, with respect to any LIBOR Rate Advance, 

(i) initially, the period commencing on, and including, the Borrowing Date or conversion date, as the case may be, with
respect to such LIBOR Rate Advance and ending on, and including, the last day of the month in which such Borrowing Date or conversion date occurred; and 
 (ii) thereafter, each one (1) month period commencing on, and including, the first day of the month immediately following the prior Interest Period applicable to such LIBOR Rate Advance and ending
on, and including, the last day of such month; 
 provided that the foregoing provisions are subject to the following:

 (A) with respect to any LIBOR Rate Advance, unless Borrower has given notice of its election to convert such
LIBOR Rate Advance to a Base Rate Advance as provided herein, Borrower shall be deemed to have elected to continue the affected LIBOR Rate Advance as a LIBOR Rate Advance; and 

(B) no Interest Period in respect of any Advance shall extend beyond the Maturity Date. 

“Interest Rate Determination Date” means the date of the initial Advance under a Facility and the first Business Day of
each calendar month thereafter. 
 “Land” means the real property on which the Improvements are to be
constructed, which real property is more particularly described in Exhibit “A” attached hereto. 
 “Legal
Requirements” means (i) any and all present and future judicial decisions, statutes, rulings, rules, regulations, permits, certificates or ordinances of any Governmental Authority in any way applicable to Borrower and/or the Project,
including, without limiting the generality of the foregoing, the ownership, use, construction, occupancy, possession, operation, maintenance, alteration, repair or reconstruction thereof; and (ii) any and all covenants, conditions or
restrictions contained in any deed, declaration or other instrument of any nature that relate in any way or are applicable to the Project or the ownership, use or occupancy thereof. 

“Lending Office” means, initially, the Lender’s office located at 201 E. Kennedy Boulevard, Suite 1800, Tampa,
Florida 33602, and thereafter, such other office of Lender as Lender may from time to time specify Borrower. 
 “Letter
of Credit Fee” means the meaning set forth in Section 2.4(b). 

  
 14 

 “Letters of Credit” means (a) any letter of credit issued by Lender
pursuant to the terms hereof, as such letter of credit may be amended, modified, restated, extended, renewed, increased, replaced or supplemented from time to time in accordance with the terms of this Agreement and (c) any Existing Letter of
Credit, in each case as such letter of credit may be amended, modified, extended, renewed or replaced from time to time in accordance with the terms of this Agreement. 
 “Leverage Ratio” means the ratio of (a) Consolidated Funded Debt on the last day of the applicable period to (b) Consolidated EBITDA for the four (4) consecutive fiscal
quarter period ending on the last day of the applicable period. 
 “LIBOR” means the rate per annum (rounded if
necessary, to the nearest 1/100,000 of 1% (to five decimals points)) effective on any Interest Rate Determination Date which is equal to the London interbank offered rate for deposits in Dollars for a one (1) month period, which rate appears on
that page of Bloomberg reporting service or such similar service, as determined by Lender, that displays British Bankers’ Association interest settlement rates for deposits in Dollars, as of 11:00 A.M. London time, two (2) Business Days
prior to the Interest Rate Determination Date. 
 “LIBOR Default Rate” means, as of any date of determination,
the LIBOR Rate plus the Applicable Percentage for LIBOR Rate Loans in effect on such date plus 3%. 
 “LIBOR
Rate” means a rate per annum (rounded, if necessary, to the nearest 1/100,000 of 1% (to five decimals points)) determined by Lender pursuant to the following formula: 

 

							
		 	LIBOR Rate =	 	                        LIBOR	  	
		 		 	1.00 - Eurodollar Reserve Percentage	  	

 “LIBOR Rate Advances” means Advances the rate of interest applicable to which is based
on the LIBOR Rate. 
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or
other title retention agreement and any Capital Lease having substantially the same economic effect as any of the foregoing). 

“LOC Documents” means, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any
documents delivered in connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing for
(i) the rights and obligations of the parties concerned or (ii) any collateral security for such obligations. 

“LOC Obligations” means, at any time, the sum of (i) the maximum amount which is, or at any time thereafter may
become, available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referred to in such Letters of Credit plus (ii) the aggregate amount of all drawings under Letters of Credit
honored by Lender but not theretofore reimbursed. 

  
 15 

 “Mandatory Borrowing” has the meaning set forth in Section 2.4(c).

 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, property,
condition (financial or otherwise) or prospects of Borrower and its Subsidiaries taken as a whole, (b) the ability of Borrower to perform its obligations, when such obligations are required to be performed, under this Agreement, any of the
Notes or any other Credit Document or (c) the validity or enforceability of this Agreement, any of the Notes or any of the other Credit Documents or the rights or remedies of Lender hereunder or thereunder or the perfection or priority of any
Lien in favor of Lender. 
 “Material Contract” means any contract or other agreement set forth on Schedule
3.23 and any other contract or agreement, whether written or oral, to which Borrower or any of its Subsidiaries is a party (i) as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be
expected to have a significant adverse impact (for these purposes, any contract requiring payments in any year exceeding 5% of Consolidated Tangible Net Worth) or (ii) any agreement identified in Item 601 of SEC Regulation S-K as a
“material contract” required to be filed with appropriate SEC filings in accordance with the periodic reporting requirements of the Securities Exchange Act of 1934. 
 “Materials” has the meaning set forth in Section 8.2. 

“Materials of Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under any Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

 “Maturity Date” means, for the Revolving Facility and, if Activated, the According Facility, August 1,
2016. 
 “Moody’s” means Moody’s Investors Service, Inc. 

“Multiemployer Plan” means a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 “Net Income Taxes” means, with respect to Lender, (a) any Taxes imposed on or measured by Lender’s
overall net income (however denominated), or any franchise Taxes imposed on Lender in lieu of net income Taxes by the jurisdiction (or any political subdivision thereof) under the laws of which Lender is organized or in which its principal office is
located or in which its Lending Office is located, and (b) any branch profits Taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which Borrower are located. 

“Non-Construction Costs” means all costs, other than Construction Costs, incurred and to be incurred in constructing and
operating the Project that are payable in whole or in part with proceeds of the Construction Facility, as more particularly described in the Budget. 
 “Notes” means a collective reference to the Revolving Note, the Accordion Note and the Construction Note. 

  
 16 

 “Notice of Borrowing” means the written notice of borrowing as referenced
and defined in Section 2.1(b)(i) or 2.2(b)(i), as appropriate. 
 “Notice of Commencement” means,
collectively (if more than one), the notice(s) of commencement with respect to the construction of the Improvements, which are to be executed by Borrower, and recorded by Borrower in the public records of the county in which the Land is located
prior to the commencement of construction of the Improvements to which the notice relates. A certified copy of the recorded Notice of Commencement shall be posted on the Land by Borrower, and a photocopy thereof provided to Lender, as soon as
possible after the recordation thereof. 
 “Notice of Conversion” means the written notice of extension or
conversion as referenced and defined in Section 2.7. 
 “OFAC” means the U.S. Department of the
Treasury’s Office of Foreign Assets Control. 
 “Other Taxes” means all present or future stamp, court or
documentary Taxes and any other excise, property, intangible, recording, filing or similar Taxes which arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a
security interest under, or otherwise with respect to, any Credit Document. 
 “Patent Licenses” means all
agreements, whether written or oral, providing for the grant by or to a Person of any right to manufacture, use or sell any invention covered by a Patent, including, without limitation, any thereof referred to in Schedule 3.16 to the
Agreement. 
 “Patents” means all letters patent of the United States or any other country, now existing or
hereafter arising, and all improvement patents, reissues, reexaminations, patents of additions, renewals and extensions thereof, including, without limitation, any thereof referred to in Schedule 3.16 to this Agreement, and (ii) all
applications for letters patent of the United States or any other country, now existing or hereafter arising, and all provisionals, divisions, continuations and continuations-in-part and substitutes thereof, including, without limitation, any
thereof referred to in Schedule 3.16 to this Agreement. 
 “Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)), as amended or modified from time to time.

 “Payment Date” means, with respect to each Facility, the first (1st) day of the month following the initially Advance of funds
under such Facility, the first (1st) day of each
month thereafter to and including the month in which the Maturity Date or the Construction Facility Maturity Date, as applicable, occurs and the Maturity Date or the Construction Facility Maturity Date, as applicable. 

“Payment Event of Default” shall mean an Event of Default specified in Section 7.1(a). 

  
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 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant
to Subtitle A of Title IV of ERISA. 
 “Permitted Acquisition” means an acquisition or a series of related
acquisitions by Borrower of the assets or all of the Capital Stock of a Person that is incorporated, formed or organized in the United States or any division, line of business or other business unit of a Person that is incorporated, formed or
organized in the United States (such Person or such division, line of business or other business unit of such Person referred to herein as the “Target”), so long as (a) no Default or Event of Default shall then exist or will
exist after giving effect thereto, (b) except with respect to a transaction solely involving the purchase of assets of a dealer of Borrower in the ordinary course of Borrower’s business, Borrower shall deliver a pro forma compliance
statement demonstrating to the reasonable satisfaction of Lender that Borrower will be in compliance on a Pro Forma Basis with all of the terms and provisions of the financial covenants set forth in Section 5.9 after giving effect to any such
acquisition, (c) if the Accordion Facility has been Activated, Lender shall have received (or shall receive in connection with the closing of such acquisition) a first priority perfected security interest in all domestic business property
acquired with respect to the Target, except for such property as to which Lender shall determine that the costs of obtaining such a security interest are excessive in relation to the value of the security to be afforded thereby and (d) the
total consideration (including, without limitation, cash, stock, assumed debt and earnout obligations, the “Total Consideration”) for all acquisitions made during any fiscal year of Borrower shall not exceed $10,000,000 in the
aggregate. 
 “Permitted Investments” means: 

(i) cash and Cash Equivalents; 
 (ii) receivables owing to Borrower or any of its Subsidiaries and advances to suppliers, in each case if created, acquired or made in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; 
 (iii) investments or loans (pursuant to Section 6.1(d)) made by
Borrower in or to a Subsidiary; 
 (iv) investments (including debt obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; 

(v) non-cash consideration received in connection with sales of property or assets permitted under Section 6.5(a);

 (vi) advances and loans to employees for the purchase price of Capital Stock of Borrower pursuant to an
employee stock option of Borrower; 
 (vii) Permitted Acquisitions; 

  
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 (viii) loans to any of Borrower’s dealers, suppliers or distributors
made in the ordinary course of business that shall not exceed any such individual dealer’s or distributor’s gross amount of accrued commissions due to such dealer or distributor at the time of origination, as calculated by Borrower, or any
future advance thereafter, unless secured by other assets of such dealer or distributor; 
 (ix) life insurance
premium advances to Affiliates and stockholders; 
 (x) cash surrender value of Borrower-owned life insurance
policies on Affiliates, shareholders, officers and employees of Borrower, whether maintained during or subsequent to an insured person’s termination, maintained in the ordinary course of business in accordance with Borrower’s historic
practice; and 
 (xi) Hedging Agreements and Bank Products to the extent permitted hereunder. 

As used herein, “investment” shall mean all investments, in cash or by delivery of property made, directly or indirectly
in or to any Person, whether by acquisition of shares of Capital Stock, property, assets, indebtedness or other obligations or securities or by loan advance, capital contribution or otherwise. 

“Permitted Liens” means: 
 (i) Liens created by or otherwise existing, under or in connection with this Agreement or the other Credit Documents in favor of Lender; 

(ii) purchase money Liens securing purchase money indebtedness (and refinancings thereof) to the extent permitted under
Section 6.1(c); 
 (iii) Liens for taxes, assessments, charges or other governmental levies not yet due, or
as to which the period of grace (not to exceed 60 days), if any, related thereto has not expired or which are being contested in good faith by appropriate proceedings, provided that (A) the aggregate amount of such contested Liens shall
not exceed $250,000 and (B) adequate reserves with respect thereto are maintained on the books of Borrower or its Subsidiaries, as the case may be, in conformity with GAAP (or, in the case of Subsidiaries with significant operations outside of
the United States of America, generally accepted accounting principles in effect from time to time in their respective jurisdictions of incorporation); 
 (iv) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s inchoate, unperfected or other like Liens arising in the ordinary course of business which are not overdue
for a period of more than 30 days or which are being contested in good faith by appropriate proceedings; provided that a reserve or other appropriate provision shall have been made therefor and the aggregate amount of such Liens is less than
$250,000; 
 (v) pledges or deposits in connection with workers’ compensation, unemployment insurance and
other social security legislation and deposits securing 

  
 19 

 
liability to insurance carriers under insurance or self-insurance arrangements, in each case made in the ordinary course of business and in accordance with historical past practices of Borrower
and its Subsidiaries; 
 (vi) deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business, in each case made in the ordinary course of business and in accordance
with historical past practices of Borrower and its Subsidiaries; 
 (vii) any extension, renewal or replacement
(or successive extensions, renewals or replacements), in whole or in part, of any Lien referred to in the foregoing clauses; provided that if such Liens relate to property or assets that are Collateral hereunder, then such extension, renewal
or replacement Lien shall be limited to all or a part of the property which secured the Lien so extended, renewed or replaced (plus improvements on such property); 

(viii) Liens existing on the Closing Date and set forth on Schedule 1.1-4; provided that (a) no such Lien
shall at any time be extended to cover property or assets other than the property or assets subject thereto on the Closing Date and (b) if such Liens relate to property or assets that are Collateral hereunder, then the principal amount of the
Indebtedness secured by such Liens shall not be increased, extended, renewed, refunded or refinanced; 
 (ix)
Liens arising in connection with Capital Leases; provided that if such Liens relate to property or assets that are or become Collateral hereunder, then only to the extent permitted under Section 6.1(c); 

(x) any interest or title of a lessor under any lease entered into by Borrower or any Subsidiary in the ordinary course of
its business and covering only the assets so leased; 
 (xi) easements, rights-of-way, zoning restrictions, minor
defects or irregularities in title and other similar encumbrances not interfering in any material respect with the value or use of the property to which such lien is attached. 
 “Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature. 
 “Plans” means the architectural, structural and mechanical
engineering plans, drawings and specifications for the completion of the Improvements, together with such supplements, amendments or modifications thereto. 
 “Pledge Agreements” means any Pledge Agreement executed by Borrower to secure Borrower’s Obligations, in each case as amended, modified, extended, restated, replaced, or supplemented
from time to time. 

  
 20 

 “Prime Rate” means, at any time, the rate of interest per annum the rate of
interest quoted as the “prime rate” as reported in the “Money Rates” section of the Wall Street Journal (or the arithmetic average of the rates so quoted, if more than one rate is quoted) or, in the event of discontinuance
of such publication or such section thereof, the Prime Rate shall mean the monthly average prime rate as reported and published in the Federal Reserve Bulletin published monthly by the Board of Governors of the Federal Reserve System under
the table styled “Prime Rate Charged by Banks on Short Term Business Loans.” In the event of the discontinuance of both such publications or such section or table thereof, the Prime Rate shall mean the prime rate as from time to time
announced or published by Citibank, N.A., at its principal office in New York, New York. The parties hereto acknowledge that the Prime Rate is an index or base rate and shall not necessarily be the lowest or best rate charged by any financial
institution. 
 “Pro Forma Basis” means, with respect to any transaction, that such transaction shall be deemed
to have occurred as of the first day of the four-quarter period (or twelve month period, as applicable) ending as of the most recent quarter end (or month end, as applicable) preceding the date of such transaction. 

“Project” means, collectively, the Land and the Improvements. 

“Properties” has the meaning set forth in Section 3.10(a). 

“Recovery Event” means theft, loss, physical destruction or damage, taking or similar event with respect to any property
or assets owned by Borrower or any of its Subsidiaries which results in the receipt by Borrower or any of its Subsidiaries of any cash insurance proceeds or condemnation award payable by reason thereof. 

“Reimbursement Obligation” means the obligation of Borrower to reimburse Lender pursuant to Section 2.4(c) for
amounts drawn under Letters of Credit. 
 “Related Parties” means, with respect to any Person, such
Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates. 
 “Reorganization” means, with respect to any Multiemployer Plan, the condition that such Plan is in reorganization within the meaning of such term as used in Section 4241 of ERISA.

 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than those
events as to which the thirty-day notice period is waived under PBGC Reg. §4043. 
 “Requirement of Law”
means, as to any Person, the Certificate of Incorporation and By-laws or other organizational or governing documents of such Person, and each law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
 “Responsible Officer” means, as to Borrower, any of the President, the Chief Executive Officer or the Chief Financial Officer. 

  
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 “Restricted Payment” means (a) any dividend or other distribution,
direct or indirect, on account of any shares of any class of Capital Stock of Borrower or any of its Subsidiaries, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of Capital Stock of Borrower or any of its Subsidiaries, now or hereafter outstanding, (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of Capital Stock of Borrower or any of its Subsidiaries, now or hereafter outstanding or (d) any payment or prepayment of principal of premium, if any, or interest on redemption purchase, retirement,
defeasance, sinking fund or similar payment with respect to any Subordinated Debt. 
 “Revolving Advance(s)”
means Advance(s) of portions of the Revolving Facility. 
 “Revolving Committed Amount” has the meaning set
forth in Section 2.1. 
 “Revolving Commitment Period” means the period from the Closing Date to, but not
including, the Maturity Date. 
 “Revolving Facility” means the revolving credit facility contemplated in
Section 2.1. 
 “Revolving Note” means the promissory note of Borrower in favor of Lender evidencing the
Revolving Facility provided pursuant to Section 2.1(d), as such promissory note may be amended, modified, extended, restated, replaced, or supplemented from time to time. 
 “S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill Companies, Inc. 
 “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by
a country or its government, or (d) a person or entity resident in or determined to be resident in a country, that is subject to a country sanctions program administered and enforced by OFAC. 

“Sanctioned Person” means a person named on the list of Specially Designated Nationals maintained by OFAC. 

“Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002. 

“SEC” means the Securities and Exchange Commission or any successor Governmental Authority. 

“Securities Account Control Agreement” shall mean an agreement, among Borrower, a securities intermediary, and Lender,
which agreement is in a form acceptable to Lender and which provides Lender with “control” (as such term is used in Articles 8 and 9 of the UCC) over the securities account(s) described therein, as the same may be as amended, modified,
extended, restated, replaced, or supplemented from time to time. 
 “Securities Act” means the Securities Act
of 1933, together with any amendment thereto or replacement thereof and any rules or regulations promulgated thereunder. 

  
 22 

 “Securities Exchange Act” means the Securities Exchange Act of 1934,
together with any amendment thereto or replacement thereof and any rules or regulations promulgated thereunder. 

“Securities Laws” means the Securities Act, the Securities Exchange Act, Sarbanes-Oxley and the applicable accounting
and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in effect on any applicable date hereunder.

 “Security Agreements” means any Security Agreement executed by Borrower to secure some or all of
Borrower’s Obligations, in each case as amended, modified, extended, restated, replaced, or supplemented from time to time in accordance with its terms. 
 “Security Documents” means any Security Agreement, Pledge Agreement, Deposit Account Control Agreement, Securities Account Control Agreement and any other documents executed and delivered
in connection with the granting, attachment and perfection of Lender’s security interests and liens arising thereunder, including, without limitation, UCC financing statements. 

“Single Employer Plan” means any Plan which is not a Multiemployer Plan. 

“Specified Sales” means (a) the sale, transfer, lease or other disposition of inventory and materials in the
ordinary course of business, (b) the sale, transfer or other disposition of cash or Cash Equivalents and (c) the sale, transfer or other disposition of assets consisting of or arising from any Hedging Agreement. 

“Subordinated Debt” means any Indebtedness incurred by Borrower which by its terms is specifically subordinated in right
of payment to the prior payment of Borrower’s Obligations. 
 “Subsidiary” means, as to any Person, a
corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of Borrower. 

“Target” has the meaning set forth in the definition of “Permitted Acquisitions.” 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Total Consideration” has the meaning set forth in the definition of “Permitted Acquisitions.” 

  
 23 

 “Trademark License” means any agreement, whether written or oral, providing
for the grant by or to a Person of any right to use any Trademark, including, without limitation, any thereof referred to in Schedule 3.16 to this Agreement. 
 “Trademarks” means all trademarks, trade names, corporate names, company names, business names, fictitious business names, service marks, elements of package or trade dress of goods or
services, logos and other source or business identifiers (other than such items that are of de minimus value), together with the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof,
including, without limitation, any thereof referred to in Schedule 3.16 to this Agreement, and (ii) all renewals thereof including, without limitation, any thereof referred to in Schedule 3.16. 

“Transactions” means the closing of this Agreement and the other Credit Documents and the other transactions
contemplated hereby and pursuant to the other Credit Documents (including, without limitation, the initial borrowings under the Credit Documents and the payment of fees and expenses in connection with all of the foregoing). 

“Type” means, as to any Advance, its nature as a Base Rate or a LIBOR Rate Advance, as the case may be. 

“UCC” means the Uniform Commercial Code from time to time in effect in any applicable jurisdiction. 

“United States” or “U.S.” means the United States of America. 

“Voting Stock” means, with respect to any Person, Capital Stock issued by such Person the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

 “Works” means all works which are subject to copyright protection pursuant to Title 17 of the United States
Code. 
 Section 1.2 Other Definitional Provisions; Time References. 

(a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the Notes or
other Credit Documents or any certificate or other document made or delivered pursuant hereto. 
 (b) The words
“hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise specified. 

  
 24 

 (c) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms. 
 (d) Unless otherwise expressly indicated, each time reference in any Credit Document
shall be to Tampa, Florida time. 
 (e) Whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. 
 (f) The words “include,” “includes” and “including” shall be deemed
to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” 
 (g) Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or
other document as from time to time amended, restated, supplemented, amended and restated or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any
Person shall be construed to include such Person’s successors and assigns, (iii) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from
time to time, (iv) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights and (v) all terms defined in this Agreement shall have the defined meanings when used in any other Credit Document or any certificate or other document made or delivered pursuant hereto. 

Section 1.3 Accounting Terms. 
 (a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the most recently
delivered audited Consolidated financial statements of Borrower and its Subsidiaries, except as otherwise specifically prescribed herein. 
 (b) Changes in GAAP. If at any time any change in GAAP, including the adoption of IFRS, would affect the computation of any financial ratio or requirement set forth in any Credit Document, and
either the Borrower or the Lender shall so request, Lender and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) Borrower shall provide to Lender financial statements and other documents required under this Agreement or
as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 

  
 25 

 (c) Financial Covenant Calculations. The parties hereto acknowledge and agree that,
for purposes of all calculations made in determining compliance for any applicable period or any applicable date with the financial covenants set forth in Section 5.9 and for purposes of determining the Applicable Percentage, (i) after
consummation of any Permitted Acquisition, (A) income statement items and other balance sheet items (whether positive or negative) attributable to the Target acquired in such transaction shall be included in such calculations to the extent
relating to such applicable period (including by adding any cost saving synergies associated with such Permitted Acquisition in a manner reasonably satisfactory to Lender), subject to adjustments mutually acceptable to Borrower and Lender and
(B) Indebtedness of a Target which is retired in connection with a Permitted Acquisition shall be excluded from such calculations and deemed to have been retired as of the first day of such applicable period and (ii) after any sale, lease
or transfer permitted by Section 6.5(a)(v), (A) income statement items, cash flow statement items and balance sheet items (whether positive or negative) attributable to the property or assets disposed of shall be excluded in such
calculations to the extent relating to such applicable period, subject to adjustments mutually acceptable to Borrower and Lender and (B) Indebtedness that is repaid with the proceeds of such transactions permitted by Section 6.5(a)(v)
shall be excluded from such calculations and deemed to have been repaid as of the first day of such applicable period. 

ARTICLE II 

THE LOANS; AMOUNT AND TERMS 
 Section 2.1 Revolving Facility. 
 (a) Revolving Commitment.
During the Revolving Commitment Period, subject to the terms and conditions hereof, Lender agrees to make Revolving Advances in Dollars to Borrower from time to time in a principal amount of up to FIFTEEN MILLION DOLLARS ($15,000,000) (the
“Revolving Committed Amount”) to finance working capital needs, the issuance of Letters of Credit and other general corporate purposes, including Permitted Acquisitions. Revolving Advances may consist of Base Rate Advances or LIBOR
Rate Advances, or a combination thereof, as Borrower may request. Subject to the limitation that the principal amount of the Revolving Facility, plus LOC Obligations of Letter of Credit issued under the Revolving Facility outstanding at any
one time not exceed the Revolving Committed Amount and the other provisions of this Agreement, Borrower may borrow, repay all or portions of the Revolving Advances and reborrow under the Revolving Facility until the Maturity Date, after which
Lender’s obligation to make Revolving Advances shall terminate. 
 (b) Revolving Facility Borrowings. 

(i) Notice of Borrowing. Borrower may request a Revolving Advance by delivering a written Notice of Borrowing (or
telephone notice promptly confirmed in writing by delivery of a written Notice of Borrowing, which confirmation may be by facsimile) to Lender not later than 11:00 a.m. on the date of the requested Advance. Each such Notice of Borrowing shall be
irrevocable and shall specify (A) that a Revolving Advance is requested, (B) the date of the requested borrowing (which shall be a Business Day), (C) the principal amount to be borrowed and (D) whether the borrowing shall be

  
 26 

 
comprised of a Base Rate Advance, a LIBOR Rate Advance or a combination thereof. A form of Notice of Borrowing (a “Notice of Borrowing”) is attached as Schedule 2.1(b)(i).
If Borrower shall fail to specify in any such Notice of Borrowing the Type of Revolving Advance requested, then such notice shall be deemed to be a request for a LIBOR Rate Advance hereunder. In the event that Borrower intends to request that a
LIBOR Rate Advance be made on the Closing Date, Borrower shall give Lender written notice of such intent not less than two (2) Business Days prior to the Closing Date. 

(ii) Minimum Amounts. Each Revolving Advance which is a Base Rate Advance shall be in a minimum aggregate amount of
$200,000 and in integral multiples of $200,000 in excess thereof (or the remaining amount of the Revolving Committed Amount, if less). Each Revolving Advance which is a LIBOR Rate Advance shall be in a minimum aggregate amount of $200,000 and in
integral multiples of $200,000 in excess thereof (or the remaining amount of the Revolving Committed Amount, if less). 
 (iii) Advances. If all conditions set forth in this Agreement are met, Lender will make each Revolving Advance requested by Borrower pursuant to this Agreement on the same Business Day that Lender
receives the applicable Notice of Borrowing if the Notice of Borrowing is received by Lender prior to 11:00 a.m. on such Business Day and on the next Business Day if the Notice of Borrowing is received by Lender after 11:00 a.m. Each Revolving
Advance shall be effected by crediting the principal amount thereof to a deposit account designated by Borrower maintained with Lender. 
 (iv) Payment in full at Maturity. The entire outstanding principal amount of all Revolving Advances, together with accrued but unpaid interest and all other sums owing with respect thereto, shall
be due and payable in full on the Maturity Date, unless accelerated sooner pursuant to Section 7.2. 
 (c) Interest.
Subject to the provisions of Section 2.8, interest on Revolving Advances shall accrue at the Applicable Interest Rate. Until such time as the Accordion Loan is Activated, the Applicable Interest Rate for Revolving Advances shall be the LIBOR
Rate, plus the Applicable Percentage specified in clause (a) of the Applicable Percentage definition. From and after the date upon which the Accordion Facility is Activated, the Applicable Interest Rate on Revolving Advances shall be as
follows: 
 (i) Base Rate Advances. The Applicable Interest Rate for each such Base Rate Advance shall be
a per annum rate equal to the sum of the Base Rate, plus the Applicable Percentage specified in clause (b) of the Applicable Percentage definition; and 

(ii) LIBOR Rate Advances. The Applicable Interest Rate for each such LIBOR Rate Advance shall be a per annum rate
equal to the sum of the LIBOR Rate, plus the Applicable Percentage specified in clause (b) of the Applicable Percentage definition. 

  
 27 

 Interest on Revolving Advances shall be payable in arrears on each Payment Date. Borrower
shall have the option to fix the Applicable Interest Rate on Revolving Advances pursuant to a Hedging Agreement. 
 (d)
Revolving Note/Security. The Revolving Facility shall be evidenced by this Agreement and the Revolving Note. The Revolving Facility is unsecured. 
 (e) Fees. There is no commitment, loan origination or unused fee payable by Borrower in connection with the Revolving Facility. New Letters of Credit issued under the Revolving Facility shall be
subject to the annual fee set forth in Section 2.4(b). 
 Section 2.2 Accordion Facility. 

Provided no Default of Event of Default has occurred and is continuing, Borrower may initiate the activation the Accordion Facility by
(i) giving not less than three (3) days prior written notice to Lender specifying the initial principal amount of the Accordion Facility elected by Borrower, which amount shall be an amount not less than $5,000,000 or an even multiple of
$5,000,000, not to exceed the Accordion Commitment Amount (the “Initial Accordion Amount”) and (ii) paying to Lender the applicable Accordion Commitment Fee, as set forth in Section 2.2(e)(i), below. Funding of the initial
Accordion Advance shall be subject to satisfaction of the conditions set forth in Section 4.2 of this Agreement. In the event that, at any time that the Accordion Note then in effect is in a principal amount which is less than the Accordion
Committed Amount, Borrower may elect to increase the then effective principal amount of the Accordion Facility by $5,000,000 or an even multiple of $5,000,000, but not to exceed the Accordion Committed Amount (the “Increased Accordion
Amount”), by (i) giving not less than three (3) days prior written notice to Lender setting forth the Increased Accordion Amount and (ii) delivery to Lender of a replacement Accordion Note in the principal amount of the
Increased Accordion Amount and such documents modifying the Security Documents as Lender reasonably may require. 
 (a)
Accordion Commitment. During the Accordion Commitment Period, subject to the terms and conditions hereof, Lender agrees to make Accordion Advances in Dollars to Borrower from time to time in a principal amount not to exceed the lesser of
(i) Effective Accordion Note Amount or (ii) up to TWENTY MILLION DOLLARS ($20,000,000) (the “Accordion Committed Amount”) to finance working capital needs, the issuance of Letters of Credit and other general
corporate purposes, including Acquisitions. Accordion Advances may consist of Base Rate Advances or LIBOR Rate Advances, or a combination thereof, as Borrower may request. Subject to the limitation that the principal amount of the Accordion
Facility, plus LOC Obligations of Letter of Credit issued under the Accordion Facility outstanding at any one time not exceed then applicable Effective Accordion Note Amount and the other provisions of this Agreement, Borrower may borrow,
repay all or portions of the Accordion Advances and reborrow under the Accordion Facility until the Maturity Date, after which Lender’s obligation to make Accordion Advances shall terminate. 

(b) Accordion Facility Borrowings. 

  
 28 

 (i) Notice of Borrowing. Borrower may request an Accordion Advance by
delivering a written Notice of Borrowing (or telephone notice promptly confirmed in writing by delivery of a written Notice of Borrowing, which confirmation may be by facsimile) to Lender not later than 11:00 a.m. on the date of the requested
Advance. Each such Notice of Borrowing shall be irrevocable and shall specify (A) that an Accordion Advance is requested, (B) the date of the requested borrowing (which shall be a Business Day), (C) the principal amount to be borrowed
and (D) whether the borrowing shall be comprised of a Base Rate Advance, a LIBOR Rate Advance or a combination thereof. If Borrower shall fail to specify in any such Notice of Borrowing the Type of Accordion Advance requested, then such notice
shall be deemed to be a request for a LIBOR Rate Advance hereunder. 
 (ii) Minimum Amounts. Each
Accordion Advance which is a Base Rate Advance shall be in a minimum aggregate amount of $200,000 and in integral multiples of $200,000 in excess thereof (or the remaining amount available under then effective Accordion Note, if less). Each
Accordion Advance which is a LIBOR Rate Advance shall be in a minimum aggregate amount of $200,000 and in integral multiples of $200,000 in excess thereof (or the remaining amount available under then effective Accordion Note, if less). 

(iii) Advances. If all conditions set forth in this Agreement are met, Lender will make each Accordion Advance
requested by Borrower pursuant to this Agreement on the same Business Day that Lender receives the applicable Notice of Borrowing, if the Notice of Borrowing is received by Lender prior to 11:00 a.m. on such Business Day, or on the next Business
Day, if the Notice of Borrowing is received by Lender after 11:00 a.m. Each Accordion Advance shall be effected by crediting the principal amount thereof to a deposit account designated by Borrower maintained with Lender. 

(iv) Payment in full at Maturity. The entire outstanding principal amount of all Accordion Advances, together with
accrued but unpaid interest and all other sums owing with respect thereto, shall be due and payable in full on the Maturity Date, unless accelerated sooner pursuant to Section 7.2. 

(c) Interest. Subject to the provisions of Section 2.8, interest shall accrue on Accordion Advances at the Applicable
Interest Rate as follows: 
 (i) Base Rate Advances. The Applicable Interest Rate for each such Base Rate
Advance shall be a per annum rate equal to the sum of the Base Rate, plus the Applicable Percentage specified in clause (b) of the Applicable Percentage definition; and 

(ii) LIBOR Rate Advances. The Applicable Interest Rate for each such LIBOR Rate Advance shall be a per annum rate
equal to the sum of the LIBOR Rate, plus the Applicable Percentage specified in clause (b) of the Applicable Percentage definition. 

  
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 Interest on Accordion Advances shall be payable in arrears on each Payment Date. Borrower
shall have the option to fix the Applicable Interest Rate on Accordion Advances pursuant to a Hedging Agreement. 
 (d)
Accordion Note/Security. The Accordion Facility shall be evidenced by this Agreement and the Accordion Note, as the same may be amended and restated from time to time. From the date that the Accordion Facility is Activated until the Accordion
Note is repaid in full, the obligations of Borrower to repay the principal and interest on the Accordion Facility shall be secured by a security interest in the Domestic Business Assets of Borrower and Borrower’s Domestic Subsidiaries.
Lender’s security interest in such Domestic Business Assets shall be created and/or perfected by such Security Documents as Lender may reasonably require. Further, from and after the date upon which the Accordion Facility is Activated and
continuing until the Accordion Note has been repaid in full, all of Borrower’s obligations under or with respect to all Bank Products and Hedging Agreements shall also be secured by the security interest and Security Documents securing the
Accordion Facility. 
 (e) Fees. 
 (i) Commitment Fees. At such time as Borrower shall give notice to Lender of Borrower’s election to activate the Accordion Facility, Borrower shall pay to Lender a nonrefundable commitment fee
equal to 0.20% multiplied by the Initial Accordion Amount. At any time that the then Effective Accordion Note Amount is increased at Borrower’s election, as provided in this Section 2.2, Borrower shall pay to Lender a nonrefundable
commitment fee equal to 0.20% multiplied by the amount of the increase. The commitment fees payable by Borrower pursuant to this subsection are collectively referred to as the “Accordion Commitment Fee”). The parties recognize and
agree that the Accordion Commitment Fee (i) was not and is not a charge for the use of money, but rather a purchase of the right to secure a loan of money on the part of Borrower, and (ii) was a material inducement for Lender to provide
the Accordion Facility and for having Lender ready, willing and able to fund the Accordion Facility in accordance with the terms of the Commitment Letter and this Agreement. Borrower’s payment of the Accordion Commitment Fee to Lender is and
shall be in addition to all other payments (including without limitation principal and interest) now or hereafter payable to Lender pursuant to the Accordion Note and this Agreement. 

(ii) Unused Fee. From the date that the Accordion Facility is Activated until the Maturity Date, Company shall pay
to Lender an unused fee equal to the percentage rate per annum set forth in the “Accordion Facility Unused Fee” column of the table appearing in clause (b) of the definition of Applicable Percentage multiplied by the daily balance of
the unused portion of the Effective Accordion Note Amount existing as of the date of calculation. The unused fee shall be payable quarterly in arrears on the third day of every third month (commencing on the third day of the third month following
the effective date of the Accordion Note) and on the Maturity Date and shall be computed on the basis of a year of 360 days and assessed for the actual number of days elapsed. 

  
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 Section 2.3 Construction Facility. 

Provided no Default or Event of Default has occurred and is continuing and subject to the terms and conditions set forth in this
Agreement, Lender agrees that Borrower may borrow, prior to the Construction Facility Conversion Date, up to FIFTEEN MILLION DOLLARS ($15,000,000) to finance the construction of Improvements on the Land in accordance with the Plans and such
other construction and/or remodeling work as may be approved by Lender. Borrower agrees to accept the Construction Facility and to use the proceeds thereof only as provided herein. The Construction Facility shall be evidenced by the Construction
Note. All Construction Advances shall be made upon and subject to the terms and conditions set forth in Article VIII of this Agreement. 
 (a) Interest. Subject to the provisions of Section 2.8, interest shall accrue on Construction Advances at the Applicable Interest Rate as follows: 

(i) Base Rate Advances. The Applicable Interest Rate for each such Base Rate Advance shall be a per annum rate
equal to the sum of the Base Rate plus the Applicable Percentage specified in clause (c) of the Applicable Percentage definition; and 
 (ii) LIBOR Rate Advances. The Applicable Interest Rate for each such LIBOR Rate Advance shall be a per annum rate equal to the sum of the LIBOR Rate plus the Applicable Percentage specified
in clause (c) of the Applicable Percentage definition. 
 Borrower shall have the option to fix the Applicable Interest Rate on
Construction Advances pursuant to a Hedging Agreement. 
 (b) Payments. Prior to the Construction Facility Conversion
Date, payments of interest only on Construction Advances shall be payable in arrears on each Payment Date. From and after the Construction Facility Conversion Date, payments of interest and principal (based upon the amortization of the outstanding
principal amount of the Construction Facility on the Construction Facility Conversion Date over a 15-year period) shall be payable on each subsequent Payment Date. The entire outstanding principal amount of Construction Facility, together with
accrued but unpaid interest and all other sums owing with respect thereto, shall be due and payable in full on the Construction Facility Maturity Date, unless accelerated sooner pursuant to Section 7.2. 

(c) Fees. 
 (i) Commitment Fee. On the Closing Date Borrower shall pay to Lender a nonrefundable commitment fee in the amount of $30,000.00 (the “Construction Facility Commitment Fee”). The
parties recognize and agree that the Construction Facility Commitment Fee (i) was not and is not a charge for the use of money, but rather a purchase of the right to secure a loan of money on the part of Borrower, and (ii) was a material
inducement for Lender to provide the Construction Facility and for having Lender ready, willing and able to fund the Construction Facility in accordance with the terms of the Commitment Letter and this Agreement. Borrower’s payment of the
Construction Facility Commitment Fee to Lender is and shall be in addition to all other payments (including without limitation principal and interest) now or hereafter payable to Lender pursuant to the Construction Note and this Agreement.

  
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 (ii) Unused Fee. There is no unused fee payable by Borrower to Lender
with respect to the Construction Facility. 
 Section 2.4 Letters of Credit. 

(a) Issuance. Subject to the terms and conditions hereof and of the LOC Documents, if any, and any other terms and conditions
which Lender may reasonably require, prior to the Maturity Date Lender shall issue Letters of Credit for the account of Borrower from time to time upon request by Borrower in a form reasonably acceptable to Lender; provided, however,
that (i) either (A) if the Accordion Facility has not been Activated, the sum of outstanding Revolving Advances plus outstanding LOC Obligations shall not at any time exceed the Revolving Committed Amount or (B) if the
Accordion Facility has been activated, the sum of outstanding Revolving Advances, plus outstanding Accordion Advances, plus outstanding LOC Obligations shall not at any time exceed the aggregate of the Revolving Committed Amount
plus the then applicable Effective Accordion Note Amount, (ii) all Letters of Credit shall be denominated in U.S. Dollars and (iii) Letters of Credit shall be issued for lawful corporate. No Letter of Credit shall have an original
expiry date more than one year from the date of issuance, unless otherwise agreed to by Lender; provided, however, so long as no Default or Event of Default has occurred and is continuing and subject to the other terms and conditions
to the issuance of Letters of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or periodically from time to time on the request of Borrower or by operation of the terms of the applicable Letter of Credit to a date not
more than one year from the date of extension; provided, further, that no Letter of Credit, as originally issued or as extended, shall have an expiry date extending beyond the date that is one (1) year after the Maturity Date.
Each Letter of Credit shall comply with the related LOC Documents. The issuance and expiry date of each Letter of Credit shall be a Business Day. Borrower’s Reimbursement Obligations in respect of each Existing Letter of Credit and new Letter
of Credit shall be governed by the terms of this Credit Agreement 
 (b) Letter of Credit Fees. Prior to the date upon
which the Accordion Facility is Activated, Borrower shall pay to Lender an annual fee for each new Letter of Credit issued under the Revolving Facility equal to 1.45% of the amount of such Letter of Credit. From and after the date that the Accordion
Facility is Activated, Borrower shall pay to Lender an annual fee for each new Letter of Credit issued under the Revolving Facility or the Accordion Facility in an amount equal to the applicable percentage shown in the “LIBOR Rate Margin/Letter
of Credit Fee” column of the table appearing in clause (b) of the definition of Applicable Percentage multiplied by the amount of such Letter of Credit. 
 (c) Reimbursement. In the event of any drawing under any Letter of Credit, Lender will promptly notify Borrower. Borrower shall reimburse Lender on the day of drawing under any Letter of Credit
(with the proceeds of a Revolving Advance obtained hereunder or otherwise) in same day funds as provided herein or in the LOC Documents. If Borrower shall fail to reimburse Lender as provided herein, the unreimbursed amount of such drawing shall
automatically bear interest at a per annum rate equal to the BR Default Rate for so long as such amount shall be unreimbursed. Unless Borrower shall immediately notify Lender of Borrower’s intent to otherwise reimburse Lender, Borrower shall be
deemed to have requested a Revolving Advance (a “Mandatory Borrowing”) in the amount of the Reimbursement Obligations, the proceeds of which will be used to satisfy the Reimbursement Obligations. Borrower’s

  
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Reimbursement Obligations hereunder shall be absolute and unconditional under all circumstances irrespective of any rights of set-off, counterclaim or defense to payment Borrower may claim or
have against Lender, the beneficiary of the Letter of Credit drawn upon or any other Person, including without limitation any defense based on any failure of Borrower to receive consideration or the legality, validity, regularity or unenforceability
of the Letter of Credit. 
 (d) Modification, Extension. The issuance of any supplement, modification, amendment,
renewal, or extension to any Letter of Credit shall, for purposes hereof, be treated in all respects the same as the issuance of a new Letter of Credit hereunder. 
 (e) ISP98 and UCP. Unless otherwise expressly agreed by Lender and Borrower, when a Letter of Credit is issued, (i) the rules of the “International Standby Practices 1998,” published
by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance) shall apply to each standby Letter of Credit, and (ii) the rules of The Uniform Customs and Practice
for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance, shall apply to each documentary Letter of Credit. 
 (f) Cash Collateralization. In the event that any Letter of Credit has an expiry date after the Maturity Date, on or prior to the Maturity Date Borrower shall deliver to Lender Cash Collateral in
an amount sufficient to cover all LOC Obligations for each such Letter of Credit. 
 (i) Grant of Security
Interest. All Cash Collateral (other than credit support not constituting funds subject to deposit) delivered pursuant to Section 2.4(f) shall be maintained in blocked, non-interest bearing deposit accounts with Lender. n the event that any
Letter of Credit has an expiry date after the Maturity Date, Borrower shall grant to (and subjects to the control of) Lender a first priority security interest in all such cash, deposit accounts and all balances therein, and all other property so
provided as collateral pursuant hereto, and in all proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be applied as hereinafter provided. If at any time Lender determines that Cash Collateral is subject
to any right or claim of any Person other than Lender as herein provided, or that the total amount of such Cash Collateral is less than the LOC Obligations secured thereby, Borrower will, promptly upon demand by Lender, pay or provide to Lender
additional Cash Collateral in an amount sufficient to eliminate such deficiency. 
 (ii) Application.
Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this Section in respect of Letters of Credit shall be held and applied to the satisfaction of the specific LOC Obligations for which the Cash
Collateral was so provided. 
 (iii) Release. Cash Collateral (or the appropriate portion thereof)
provided to reduce LOC Obligations shall be released to Borrower promptly following (i) the elimination of the applicable LOC Obligations giving rise thereto or (ii) Lender’s good faith determination that there exists excess Cash
Collateral. 

  
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 (g) Conflict with LOC Documents. In the event of any conflict between this Agreement
and any LOC Document (including any letter of credit application and any LOC Documents relating to the Existing Letters of Credit), this Agreement shall control. 
 Section 2.5 Prepayments. 
 (a) Optional Prepayments. Borrower
shall have the right to prepay Advances in whole or in part from time to time. Borrower shall give two (2) Business Day’s advanced irrevocable notice of Borrower’s intent to prepay to Lender. Each prepayment pursuant to this
Section 2.5(a) shall be applied to the outstanding Facilities as Borrower may elect; provided, however, each prepayment shall be applied first to Base Rate Advances and then to LIBOR Rate Advances in direct order of Interest
Period maturities. All prepayments under this Section 2.5(a) shall be without premium or penalty. Interest on the principal amount prepaid through the date of prepayment shall be payable on the next occurring Payment Date that would have
occurred had such Advances not been prepaid or, at the option of Borrower or the request of Lender, interest on the principal amount prepaid shall be payable on any date that a prepayment is made hereunder through the date of prepayment. 

(b) Bank Product Obligations Unaffected. Any prepayment made pursuant to this Section shall not affect Borrower’s obligation
to continue to make payments under any Bank Product, which shall remain in full force and effect notwithstanding such prepayment, subject to the terms of such Bank Product. 
 Section 2.6 Default Rate. 
 Upon the occurrence and during the
continuance of an Event of Default, the principal of and, to the extent permitted by law, interest on the Facilities and any other amounts owing hereunder or under the other Credit Documents shall automatically bear interest at a rate per annum
which is equal to the applicable Default Rate. Any default interest owing under this Section 2.6 shall be due and payable on the earlier to occur of (i) demand by Lender and (ii) the Maturity Date. 

Section 2.7 Conversion Options. 
 (a) Borrower may elect from time to time to convert all Base Rate Advances to LIBOR Rate Advances, in whole, but not in part, by giving Lender at least three (3) Business Days’ prior irrevocable
written notice of such election. A form of Notice of Conversion is attached as Schedule 2.7. If the date upon which the outstanding Base Rate Advances are to be converted to LIBOR Rate Advances is not a Business Day, then such conversion
shall be made on the next succeeding Business Day and during the period from such last day of an Interest Period to such succeeding Business Day such Advance shall bear interest as if it were an Base Rate Advance. The Base Rate Advances may not be
converted into LIBOR Rate Advances when any Default or Event of Default has occurred and is continuing. 
 (b) Borrower may
elect from time to time to convert all LIBOR Rate Advances to Base Rate Advances, in whole, but not in part, by giving Lender at least one (1) Business Day’s prior irrevocable written notice of such election. A form of Notice of Conversion
is attached as Schedule 2.7. If the date upon which the LIBOR Rate Advances are to be converted to Base 

  
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Rate Advances is not a Business Day, then such conversion shall be made on the next succeeding Business Day and during the period from such last day of an Interest Period to such succeeding
Business Day such Advance shall bear interest as if it were an Base Rate Advance. 
 Section 2.8 Computation of Interest
and Fees. 
 (a) All fees, interest and all other amounts payable hereunder shall be calculated on the basis of a 360 day
year for the actual days elapsed. Any change in the Applicable Interest Rate on Base Rate Advances resulting from a change in the Base Rate shall become effective as of the opening of business on the day on which such change in the Base Rate shall
become effective. Any change in the Applicable Interest Rate on LIBOR Rate Advances resulting from a change in the LIBOR Rate shall become effective on the first day of the next Interest Period. Lender shall as soon as practicable notify Borrower
and Lender of the effective date and the amount of each such change. 
 (b) Each determination of an Applicable Interest Rate by
Lender pursuant to any provision of this Agreement shall be conclusive and binding on Borrower in the absence of manifest error. Lender shall, at the request of Borrower, deliver to Borrower a statement showing the computations used by Lender in
determining any interest rate. 
 (c) It is the intent of Lender and Borrower to conform to and contract in strict compliance
with applicable usury law from time to time in effect. All agreements between Lender and Borrower are hereby limited by the provisions of this paragraph which shall override and control all such agreements, whether now existing or hereafter arising
and whether written or oral. In no way, nor in any event or contingency (including but not limited to prepayment or acceleration of the maturity of any Obligation), shall the interest taken, reserved, contracted for, charged, or received under this
Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount permissible under applicable law. If, from any possible construction of any of the Credit Documents or any other document, interest would otherwise be payable in excess
of the maximum nonusurious amount, any such construction shall be subject to the provisions of this paragraph and such interest shall be automatically reduced to the maximum nonusurious amount permitted under applicable law, without the necessity of
execution of any amendment or new document. If Lender shall ever receives anything of value which is characterized as interest on the Facilities under applicable law and which would, apart from this provision, be in excess of the maximum nonusurious
amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the Facilities and not to the payment of interest, or refunded to Borrower if and to
the extent such amount which would have been excessive exceeds such unpaid principal amount of the Facilities. The right to demand payment of the Facilities or any other Indebtedness evidenced by any of the Credit Documents does not include the
right to receive any interest which has not otherwise accrued on the date of such demand, and Lender do not intend to charge or receive any unearned interest in the event of such demand. All interest paid or agreed to be paid to Lender with respect
to the Facilities shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term (including any renewal or extension) of the Facilities so that the amount of interest on account of
such indebtedness does not exceed the maximum nonusurious amount permitted by applicable law. 

  
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 Section 2.9 Payments. 

(a) Each payment (other than prepayments) of principal or interest under this Agreement or any Note shall be applied, first, to any fees
then due and owing by Borrower, second, to interest then due and owing hereunder and under the Notes and, third, to principal then due and owing hereunder and under the Notes. Each optional prepayment of the Advances shall be applied in accordance
with Section 2.5(a). All payments (including prepayments) to be made by Borrower on account of principal, interest and fees shall be made without defense, set-off or counterclaim and shall be made to Lender for the account of Lender at
Lender’s office specified in Section 9.2 in Dollars and in immediately available funds not later than 12:00 Noon on the date when due. If any payment hereunder becomes due and payable on a day other than a Business Day, such payment shall
be extended to the next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. 

(b) Allocation of Payments After Event of Default. Notwithstanding any other provisions of this Agreement to the contrary, after
the occurrence and during the continuance of an Event of Default, all amounts collected or received by Lender on account of Borrower’s Obligations or any other amounts outstanding under any of the Credit Documents or in respect of the
Collateral shall be paid over or delivered as follows: 
 FIRST, to the payment of all reasonable out-of-pocket
costs and expenses (including without limitation reasonable attorneys’ fees) of Lender in connection with enforcing the rights of Lender under the Credit Documents and any protective advances made by Lender with respect to the Collateral under
or pursuant to the terms of the Security Documents; 
 SECOND, to payment of any fees owed to Lender; 

THIRD, to the payment of all of Borrower’s Obligations consisting of accrued fees and interest, and including with
respect to any Bank Product, any fees, premiums and scheduled periodic payments due under such Bank Product and any interest accrued thereon; 
 FOURTH, to the payment of the outstanding principal amount of Borrower’s Obligations and the payment or cash collateralization of the outstanding LOC Obligations, and including with respect to any
Bank Product, any breakage, termination or other payments due under such Hedging Agreement and any interest accrued thereon; and 
 FIFTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus. 
 In carrying out the foregoing, (i) amounts received shall be applied in the numerical order provided until exhausted prior to application to the next succeeding category and (ii) to the extent
that any amounts available for distribution pursuant to clause “FOURTH” above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by Lender in a cash collateral account and applied
(A) first, to reimburse Lender 

  
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from time to time for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types described in clause
“FIFTH” above in the manner provided in this Section 2.9(b). 
 Section 2.10 Inability to Determine
Interest Rate. 
 Notwithstanding any other provision of this Agreement, if Lender shall reasonably determine (which
determination shall be conclusive and binding absent manifest error) that, by reason of circumstances affecting the relevant market, reasonable and adequate means do not exist for ascertaining LIBOR for any Interest Period, Lender shall forthwith
give telephone notice of such determination, confirmed in writing, to Borrower at least two Business Days prior to the first day of such Interest Period. Unless Borrower shall have notified Lender upon receipt of such telephone notice that Borrower
wishes to rescind or modify its request regarding any new LIBOR Rate Advances, such Advances that were requested to be made as LIBOR Rate Advances shall be made as Base Rate Advances and Advances were requested to be converted into or continued as
LIBOR Rate Advances shall be converted into Base Rate Advances. Until any such notice has been withdrawn by Lender, no further Advances shall be made as, continued as, or converted into, LIBOR Rate Advances. 

Section 2.11 Illegality. 
 Notwithstanding any other provision of this Agreement, if any Change in Law or in the interpretation or application thereof by the relevant Governmental Authority to Lender shall make it unlawful for
Lender to make or maintain LIBOR Rate Advances as contemplated by this Agreement or to obtain in the interbank eurodollar market the funds with which to make such LIBOR Rate Advances, if Lender is match-funding such LIBOR Rate Advances,
(a) Lender shall promptly notify Borrower thereof, (b) the commitment of Lender hereunder to make LIBOR Rate Advances or continue LIBOR Rate Advances as such shall forthwith be suspended until Lender shall give notice that the condition or
situation which gave rise to the suspension shall no longer exist, and (c) Advances then outstanding as LIBOR Rate Advances, if any, shall be converted on the last day of the Interest Period or within such earlier period as required by law as
Base Rate Advances. Borrower hereby agree to promptly pay Lender, upon its demand, any additional amounts necessary to compensate such Lender for actual and direct costs (but not including anticipated profits) reasonably incurred by Lender in making
any repayment in accordance with this Section including, but not limited to, any interest or fees payable by Lender to the provider of funds obtained by Lender in order to make or maintain its LIBOR Rate Advances hereunder. A certificate as to any
additional amounts payable pursuant to this Section submitted by Lender to Borrower shall be conclusive in the absence of manifest error. Lender agrees to use reasonable efforts to avoid or to minimize any amounts which may otherwise be payable
pursuant to this Section; provided, however, that such efforts shall not cause the imposition on such Lender of any additional costs or legal or regulatory burdens deemed by such Lender in its sole discretion to be material.

 Section 2.12 Yield Protection. 
 (a) Increased Costs Generally. If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit extended or participated in by, Lender (except any reserve requirement reflected in the LIBOR Rate); 

  
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 (ii) subject Lender to any (or any increase in any) Taxes with respect to
any Credit Document or any Letter of Credit (except for the imposition of, or any change in the rate of, any Net Income Tax); or 
 (iii) impose on Lender or the London interbank market any other condition, cost or expense affecting this Agreement or LIBOR Rate Advances made by Lender or any Letter of Credit or participation therein;

 and the result of any of the foregoing shall be to increase the cost to Lender of making or maintaining LIBOR Rate Advances or
of maintaining its obligation to make any such Advances, or to increase the cost to Lender of issuing or maintaining any Letter of Credit (or of maintaining its obligation to issue any Letter of Credit), or to reduce the amount of any sum received
or receivable by Lender (whether of principal, interest or any other amount) then, provided that Lender has complied with Sections 2.12(e) and (f), upon request of Lender, Borrower will pay to Lender, such additional amount or amounts as will
compensate Lender for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If Lender shall
have reasonably determined that any Change in Law affecting Lender, regarding capital requirements has or would have the effect of reducing the rate of return on Lender’s capital or on the capital of Lender’s holding company, if any, as a
consequence of this Agreement, the Advances made or to be made by Lender as contemplated by this Agreement, or the Letters of Credit issued by Lender, to a level below that which Lender or such Lender’s holding company could have achieved but
for such Change in Law (taking into consideration Lender’s policies and the policies of Lender’s holding company with respect to capital adequacy) by an amount reasonably deemed by Lender to be material, then, provided that Lender has
complied with Sections 2.12(e) and (f), from time to time, within fifteen (15) days after demand by Lender, Borrower will pay to Lender such additional amount or amounts as will compensate Lender or Lender’s holding company for any such
reduction suffered. 
 (c) Certificates for Reimbursement. A certificate of Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to Borrower shall be conclusive absent manifest error. Borrower shall pay Lender the amount
shown as due on any such certificate within fifteen (15) days after receipt thereof. 
 (d) Delay in Requests.
Failure or delay on the part of Lender to demand compensation pursuant to this Section shall not constitute a waiver of Lender’s right to demand such compensation, provided that Borrower shall not be required to compensate Lender
pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that Lender notifies Borrower of the Change in Law giving rise to such increased costs or reductions, and of
Lender’s intention to claim compensation therefore (except 

  
 38 

 
that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive
effect thereof). 
 (e) Notice to Borrower. Lender shall promptly notify Borrower of any event which it has knowledge
after the date hereof which will entitle Lender to compensation and will use commercially reasonable efforts to avoid the need for, or reduce, such compensation for itself. 
 (f) Reasonable Efforts. Lender agrees to use reasonable efforts to avoid or to minimize any amounts which might otherwise be payable pursuant to this paragraph of this Section; provided,
however, that such efforts shall not cause the imposition on Lender of any additional costs or legal or regulatory burdens deemed by Lender to be material. 
 Section 2.13 Indemnity. 
 Borrower hereby agrees to indemnify Lender
and to hold Lender harmless from any funding loss or expense which Lender may sustain or incur as a consequence of (a) default by Borrower in payment of the principal amount of or interest on any Facility in accordance with the terms hereof,
(b) default by Borrower in accepting an Advance after Borrower has given a notice in accordance with the terms hereof, and/or (c) default by Borrower in making any prepayment after Borrower has given a notice in accordance with the terms
hereof. A certificate as to any additional amounts payable pursuant to this Section submitted by Lender to Borrower shall be conclusive in the absence of manifest error. The agreements in this Section shall survive termination of this Agreement and
payment of the Notes and all other amounts payable hereunder. 
 Section 2.14 Taxes. 

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of Borrower under any Credit Document shall be
made free and clear of and without reduction or withholding for any Taxes. 
 (b) Payment of Other Taxes by Borrower.
Without limiting the provisions of paragraph (a) above, Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of Lender timely reimburse it for the payment of, any Other Taxes.

 (c) Indemnification by Borrower. Borrower shall indemnify Lender, within thirty (30) days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by Lender and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to
Borrower by Lender shall be conclusive absent manifest error. In addition, Borrower shall indemnify Lender, within thirty (30) days after demand therefor, for any incremental Taxes that may become payable by Lender as a result of any failure of
Borrower to pay any Taxes when due to the appropriate Governmental Authority or to deliver to such Lender, pursuant to paragraph (d), documentation evidencing the payment of Taxes. 

  
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 (d) Evidence of Payments. As soon as practicable after any payment of Taxes by
Borrower to a Governmental Authority pursuant to this Section, Borrower shall deliver to Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to Lender. 
 (e) Treatment of Certain Refunds. If Lender
determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section, it shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity payments made
under this Section with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of Lender, and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that Borrower, upon the request of Lender, agrees to repay the amount paid over pursuant to this paragraph (e) (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to Lender in the event Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (e), in no event will Lender be required to pay any amount to Borrower
pursuant to this paragraph (e) the payment of which would place Lender in a less favorable net after-Tax position than Lender would have been in if the indemnification payments or additional amounts giving rise to such refund had never been
paid. This paragraph shall not be construed to require Lender to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to Borrower or any other Person. 

(f) Each party’s obligations in this Section 2.14 shall survive the termination of the Credit Documents and any obligations
payable thereunder. 
 Section 2.15 Letters of Credit Indemnification; Nature of Lender’s Duties. 

(a) In addition to its other obligations under Section 2.4, Borrower hereby agrees to protect, indemnify, pay and save Lender
harmless from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees) that Lender may incur or be subject to as a consequence, direct or indirect, of (i) the
issuance of any Letter of Credit or (ii) the failure of Lender to honor a drawing under a Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government
or governmental authority (all such acts or omissions, herein called “Government Acts”). 
 (b) As between
Borrower and Lender, Borrower shall assume all risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof. Lender shall not be responsible: (i) for the form, validity, sufficiency, accuracy, genuineness or legal
effect of any document submitted by any party in connection with the application for and issuance of any Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit or the rights or benefits 

  
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thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or ineffective for any reason; (iii) for failure of the beneficiary of a Letter of Credit to comply fully
with conditions required in order to draw upon a Letter of Credit; (iv) for errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(v) for errors in interpretation of technical terms; (vi) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under a Letter of Credit or of the proceeds thereof; and (vii) for
any consequences arising from causes beyond the control of Lender, including, without limitation, any Government Acts. None of the above shall affect, impair, or prevent the vesting of Lender’s rights or powers hereunder. 

(c) In furtherance and extension and not in limitation of the specific provisions hereinabove set forth, any action taken or omitted by
Lender, under or in connection with any Letter of Credit or the related certificates, if taken or omitted in good faith, shall not put Lender under any resulting liability to Borrower. It is the intention of the parties that this Agreement shall be
construed and applied to protect and indemnify Lender against any and all risks involved in the issuance of the Letters of Credit, all of which risks are hereby assumed by Borrower, including, without limitation, any and all risks of the acts or
omissions, whether rightful or wrongful, of any Government Authority. Lender shall not, in any way, be liable for any failure by Lender or anyone else to pay any drawing under any Letter of Credit as a result of any Government Acts or any other
cause beyond the control of Lender. 
 (d) Nothing in this Section 2.15 is intended to limit the Reimbursement Obligation
of Borrower contained in Section 2.4(c). The obligations of Borrower under this Section 2.15 shall survive the termination of this Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit shall in any way
affect or impair the rights of Lender to enforce any right, power or benefit under this Agreement. 
 (e) Notwithstanding
anything to the contrary contained in this Section 2.15, Borrower shall have no obligation to indemnify Lender in respect of any liability incurred by Lender arising out of the gross negligence or willful misconduct of Lender (including action
not taken by Lender), as determined by a court of competent jurisdiction. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 
 To induce Lender to enter into this Agreement and to make the Extensions of Credit herein provided for, Borrower hereby represents and warrants to Lender that: 

Section 3.1 Financial Condition. 
 The audited consolidated financial statements of Borrower and its Subsidiaries for the fiscal years ended December 31, 2008, 2009 and 2010, together with the related consolidated balance sheet,
statements of income and retained earning, equity and cash flows for the fiscal years ended on such dates, and Borrower’s Form 10-K and (ii) the unaudited consolidated financial statements of Borrower and its Subsidiaries for fiscal
quarter ended March 31, 2011 and Form 10-Q for such quarter: 
 (i) were prepared in accordance with GAAP
(to the extent applicable) consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, by an independent nationally recognized accounting firm (except with respect to the unaudited financial statements);

  
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 (ii) fairly present the financial condition of Borrower and its Subsidiaries
as of the date or dates thereof (subject, in the case of the unaudited financial statements, to normal year-end adjustments) and results of operations for the period covered thereby; and 

(iii) show all Indebtedness and other liabilities, direct or contingent, of Borrower and its Subsidiaries as of the date
thereof, including liabilities for taxes, commitments, and as to the audited consolidated financial statements, contingent obligations, all to the extent required by GAAP. 
 Section 3.2 No Change. 
 Since December 31, 2010 (and, after
delivery of annual audited financial statements in accordance with Section 5.1(a), from the date of the most recently delivered annual audited financial statements) there has been no development or event which, individually or in the aggregate,
has had or could reasonably be expected to have a Material Adverse Effect. 
 Section 3.3 Corporate Existence;
Compliance with Law; Patriot Act Information. 
 Borrower (a) is duly organized, validly existing and in good standing
under the laws of the State of Florida, (b) has the requisite power and authority and the legal right to own and operate all its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged,
(c) is duly qualified to conduct business and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification, except to the extent that the
failure to so qualify or be in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent that the failure to
comply therewith could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Set forth on Schedule 3.3 as of the Closing Date, is the following information for Borrower: the exact legal name and
any former legal names of Borrower in the four (4) months prior to the Closing Date, the state of incorporation or organization, the type of organization, the jurisdictions in which Borrower is qualified to do business, the chief executive
office, the principal place of business, the business phone number, the organization identification number and the federal tax identification number. 
 Section 3.4 Corporate Power; Authorization; Enforceable Obligations. 

Borrower has full power and authority and the legal right to execute, deliver and perform the Credit Documents to which it is party and
has taken all necessary limited liability company or corporate action to authorize the execution, delivery and performance by it of the Credit Documents to which it is party. No material consent or material authorization of, filing with,

  
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notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the borrowings hereunder or with the execution, delivery or performance
of any Credit Document by Borrower (other than those which have been obtained) or with the validity or enforceability of any Credit Document against Borrower (except such filings as are necessary in connection with the perfection of the Liens
created by such Credit Documents). Each Credit Document to which it is a party has been duly executed and delivered on behalf of Borrower. Each Credit Document to which it is a party constitutes a legal, valid and binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in equity or at law). 
 Section 3.5
Compliance with Laws; No Conflict; No Default. 
 (a) The execution, delivery and performance by Borrower of the Credit
Documents to which Borrower is a party, in accordance with their respective terms, the borrowings hereunder and the transactions contemplated hereby do not and will not, by the passage of time, the giving of notice or otherwise, (i) require any
Governmental Approval (other than such Governmental Approvals that have been obtained or made and not subject to suspension, revocation or termination) or violate any Requirement of Law relating to Borrower, (ii) conflict with, result in a
breach of or constitute a default under the articles of incorporation, bylaws, articles of organization, operating agreement or other organizational documents of Borrower or any material indenture, agreement or other instrument to which such Person
is a party or by which any of its properties may be bound or any Governmental Approval relating to such Person, or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter
acquired by such Person other than Liens arising under the Credit Documents that in the event of any noncompliance with the provisions of subparagraphs (i) and (ii) above reasonably could be expected, individually or in the aggregate, to
have a Material Adverse Effect. 
 (b) Borrower (i) (A) has all Governmental Approvals required by law for it to
conduct its business, each of which is in full force and effect, (B) each such Governmental Approval is final and not subject to review on appeal and (C) each such Governmental Approval is not the subject of any pending or, to the best of
its knowledge, threatened attack by direct or collateral proceeding, and (ii) is in compliance with each Governmental Approval applicable to it and in compliance with all other Requirements of Law relating to it or any of its respective
properties, in each case except to the extent the failure to obtain such Governmental Approval or failure to comply with such Governmental Approval or Requirement of Law could not reasonably be expected to have a Material Adverse Effect. 

(c) Borrower is not in default under or with respect to any of its Material Contracts or under or with respect to any of its other
material Contractual Obligations, or any judgment, order or decree to which it is a party, in any respect which could reasonably be expected to have a Material Adverse Effect. No Default or Event of Default has occurred and is continuing.

  
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 Section 3.6 No Material Litigation. 

Except as set forth on Schedule 3.6, no litigation, investigation, bankruptcy or insolvency, injunction, order or claim affecting
or relating to Borrower or any of its Subsidiaries, any such Person’s properties or revenues, or any Credit Document is pending or, to the best knowledge of Borrower, overtly threatened in writing by or against Borrower or any of its
Subsidiaries or against any of its or their respective properties or revenues that has not been settled, dismissed, vacated, discharged or terminated which, if adversely determined, could reasonably be expected to have a Material Adverse Effect, and
no judgments are outstanding which could reasonably be expected to have a Material Adverse Effect. Set forth on Schedule 3.6 hereto is a detailed description of all litigation pending against Borrower or any Subsidiary of Borrower as of
the Closing Date, which, if adversely determined, could reasonably be expected to have a Material Adverse Effect. 

Section 3.7 Investment Company Act; PUHCA; Etc. 
 Borrower is not an “investment company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. Borrower
is not subject to regulation under the Federal Power Act, the Interstate Commerce Act, the Public Utility Holding Company Act of 2005 or any federal or state statute or regulation limiting its ability to incur Borrower Obligations. 

Section 3.8 Margin Regulations. 
 No part of the proceeds of any Extension of Credit hereunder will be used directly or indirectly for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X
of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in effect. Borrower (a) is not engaged, principally or as one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” “margin stock” within the respective meanings of each of such terms under Regulation U and (b) does not own “margin stock” except as identified in the financial statements
referred to in Section 3.1 and the aggregate value of all “margin stock” owned by Borrower taken as a group does not exceed 25% of the value of its assets. 
 Section 3.9 ERISA. 
 Neither a Reportable Event nor an
“accumulated funding deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during the five-year period prior to the date on which this representation is made or deemed made with respect
to any ERISA Plan, and each ERISA Plan has complied in all material respects with the applicable provisions of ERISA and the Code, except to the extent that any such occurrence or failure to comply would not reasonably be expected to have a Material
Adverse Effect. No termination of a Single Employer Plan has occurred resulting in any liability that has remained underfunded, and no Lien in favor of the PBGC or an ERISA Plan has arisen, during such five-year period which could reasonably be
expected to have a Material Adverse Effect. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used to fund such ERISA Plans) did not, as of the last annual valuation date prior to the date on which
this 

  
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representation is made or deemed made, exceed the value of the assets of such ERISA Plan allocable to such accrued benefits by an amount which, as determined in accordance with GAAP, could
reasonably be expected to have a Material Adverse Effect. Neither Borrower, nor any of its Subsidiaries nor any Commonly Controlled Entity is currently subject to any liability for a complete or partial withdrawal from a Multiemployer Plan which
could reasonably be expected to have a Material Adverse Effect. 
 Section 3.10 Environmental Matters. 

(a) Except as could not be reasonably expected to result in a Material Adverse Effect: 

(i) The facilities and properties owned, leased or operated by Borrower or any of its Subsidiaries, including, without
limitation, the Land (collectively, the “Properties”) do not contain any Materials of Environmental Concern (i) in violation of, or (ii) present in any fashion that triggers investigation, reporting or remedial action
under, any Environmental Law, subject to the disclosure set forth in paragraph (b) below. 
 (ii) The
Properties and all operations of Borrower and its Subsidiaries at the Properties are in compliance, and have in the last five years been in compliance, in all material respects with all applicable Environmental Laws, and to Borrower’s
knowledge, there is no contamination at, under or about the Properties or violation of any Environmental Law with respect to the Properties or the business operated by Borrower or any of its Subsidiaries (the “Business”), subject to
the disclosure set forth in paragraph (b) below. 
 (iii) Neither Borrower nor any Subsidiary thereof has
received any written or actual notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Properties or the Business, nor
does Borrower or any Subsidiary thereof have knowledge or reason to believe that any such notice will be received or is being threatened, subject to the disclosure set forth in paragraph (b) below. 

(iv) Materials of Environmental Concern have not been transported or disposed of from the Properties by Borrower in
violation of, or in a manner or to a location which could give rise to liability under any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at, on or under any of the Properties by
Borrower or to Borrower’s knowledge, by any other Person in violation of, or in a manner that could give rise to liability under, any applicable Environmental Law. 

(v) No judicial proceeding or governmental or administrative action is pending or, to the knowledge of Borrower or any
Subsidiary thereof, threatened, under any Environmental Law to which Borrower or any Subsidiary is or will be named as a party with respect to the Properties or the Business, nor are there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Properties or the Business, subject to the disclosure set forth in paragraph (b) below.

  
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 (vi) Borrower has not caused, nor to Borrower’s knowledge, has any
other Person caused any release or threat of release of Materials of Environmental Concern at or from the Properties, or arising from or related to the operations of Borrower or any Subsidiary in connection with the Properties or otherwise in
connection with the Business, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws. 
 (b) For purposes of disclosure, Schedule 3.10 describes certain environmental violations at Properties as more specifically set forth in the reports referenced in Schedule 3.10 (the
“Environmental Issues”). None of the Environmental Issues could reasonably be expected to have a Material Adverse Effect. 
 Section 3.11 Purpose of Facilities. 
 The proceeds of each Facility
shall be used solely by Borrower for the purposes stated in the description of the applicable Facility set forth in Section 2.1, Section 2.2 and Section 2.3. 
 Section 3.12 Subsidiaries. 
 Set forth on Schedule 3.12 is a
complete and accurate list of all Subsidiaries of Borrower as of the date hereof. Information on the attached Schedule includes state of incorporation or organization; the number of authorized shares of each class of Capital Stock or other equity
interests; the number of outstanding shares of each class of Capital Stock or other equity interests, the owner thereof and the percentage of such ownership; and the number and effect, if exercised, of all outstanding options, warrants, rights of
conversion or purchase and similar rights. The outstanding Capital Stock and other equity interests of all such Subsidiaries is validly issued, fully paid and non-assessable and is owned free and clear of all Liens. 

Section 3.13 Ownership; Insurance. 
 Borrower is the owner of, and has good and marketable title to and adequate insurance coverage for, all of its respective assets which, together with assets leased or licensed by Borrower, represents all
assets individually or in the aggregate material to the conduct of the businesses of Borrower taken as a whole, and none of such assets is subject to any Lien other than Permitted Liens. Borrower enjoys peaceful and undisturbed possession under all
of its leases and all such leases are valid and subsisting and in full force and effect except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

Section 3.14 Indebtedness. 
 Except as otherwise permitted under Section 6.1, Borrower and its Subsidiaries have no Indebtedness. 

  
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 Section 3.15 Taxes. 

Borrower and its Subsidiaries have filed, or caused to be filed, all tax returns (federal, state, local and foreign) required to be filed
and paid (a) all amounts of taxes shown thereon to be due (including interest and penalties) and (b) all other taxes, fees, assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) owing by them, except for such taxes (i) which are not yet delinquent or (ii) that are being contested in good faith and by proper proceedings, and against which adequate reserves are being maintained in accordance with
GAAP. Borrower is not aware as of the Closing Date of any proposed tax assessments against it or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect. 

Section 3.16 Intellectual Property. 
 Borrower and its Subsidiaries owns, or has the legal right to use, all material Intellectual Property, material tradenames, material technology, know-how and processes necessary for each of them to
conduct its business as currently conducted. Set forth on Schedule 3.16 is a list of all material Intellectual Property owned by Borrower and its Subsidiaries or that Borrower or any of its Subsidiaries has the right to use. Except as
provided on Schedule 3.16, no claim has been asserted and is pending by any Person challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does Borrower or
any of its Subsidiaries know of any such claim, and, to the knowledge of Borrower and its Subsidiaries, the use of such Intellectual Property by Borrower or any of its Subsidiaries does not infringe on the rights of any Person, except for such
claims and infringements that in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Schedule 3.16 may be updated from time to time by Borrower to include new Intellectual Property by giving written notice
thereof to Lender. 
 Section 3.17 Solvency. 

Immediately before and after giving effect to the Transactions, (a) Borrower is solvent and is able to pay its debts and other
liabilities, contingent obligations and other commitments as they mature in the normal course of business, and (b) the fair saleable value of Borrower’s assets, measured on a going concern basis, exceeds all probable liabilities, including
those to be incurred pursuant to this Agreement. Immediately before and after giving effect to the Transactions, Borrower will not have unreasonably small capital in relation to the business in which it is or proposes to be engaged. After giving
effect to the Transactions, Borrower has not incurred, or believes that it will incur, debts beyond its ability to pay such debts as they become due. In executing the Credit Documents and consummating the Transactions, Borrower does not intend to
hinder, delay or defraud either present or future creditors or other Persons to which Borrower is or will become indebted. 

Section 3.18 Investments. 
 All Investments of Borrower and its Subsidiaries are Permitted Investments. 

  
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 Section 3.19 Location of Collateral. 

Set forth on Schedule 3.19(a) is a list of the Properties of Borrower and its Subsidiaries with street address, county and state
where located as of the Closing Date. Set forth on Schedule 3.19(a) is a list of the Properties of Borrower and its Subsidiaries with street address, county and state where located as of the Closing Date. Set forth on
Schedule 3.19(b) is a list of all locations where any tangible personal property of Borrower and its Subsidiaries is located, including county and state where located as of the Closing Date. Set forth on Schedule 3.19(c) is
the chief executive office and principal place of business of Borrower and its Subsidiaries as of the Closing Date. 

Section 3.20 No Burdensome Restrictions. 
 Neither Borrower nor any of its Subsidiaries is a party to any agreement or instrument or subject to any other obligation or any charter or corporate restriction or any provision of any applicable law,
rule or regulation which, individually or in the aggregate, could reasonably be expected to restrict their business in a manner that would have a Material Adverse Effect. 
 Section 3.21 Labor Matters. 
 Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, there are no collective bargaining agreements or Multiemployer Plans covering the employees of Borrower or any of its Subsidiaries as of the Closing Date, and neither Borrower nor any of its
Subsidiaries (i) has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years, other than as set forth in Schedule 3.21 hereto or (ii) has knowledge of any potential or pending
strike, walkout or work stoppage. 
 Section 3.22 Accuracy and Completeness of Information. 

All factual information heretofore, contemporaneously or hereafter furnished by or on behalf of Borrower or any of its Subsidiaries to
Lender for purposes of or in connection with this Agreement or any other Credit Document, or any transaction contemplated hereby or thereby, is or will be true and accurate in all material respects and not incomplete by omitting to state any
material fact necessary to make such information not misleading. There is no fact now known to Borrower or any of its Subsidiaries which has, or could reasonably be expected to have, a Material Adverse Effect. 

Section 3.23 Material Contracts. 
 Schedule 3.23 sets forth a complete and accurate list of all Material Contracts of Borrower and its Subsidiaries in effect as of the Closing Date. As of the Closing Date, other than as set forth in
Schedule 3.23, each such Material Contract is, and after giving effect to the transactions contemplated by the Credit Documents will be, in full force and effect in accordance with the terms thereof and neither Borrower nor a Subsidiary
thereof has violated in any material respect any such Material Contract. Borrower has delivered to Lender for its review a correct and complete copy of each written agreement listed in Schedule 3.23 (as amended to date). 

  
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 Section 3.24 Brokers’ Fees. 

Neither Borrower nor any of its Subsidiaries has any obligation to any Person in respect of any finder’s, broker’s, investment
banking or other similar fee in connection with any of the Transactions contemplated under the Credit Documents other than the closing and other fees payable pursuant to this Agreement. 

Section 3.25 Anti-Terrorism Laws. 
 Neither Borrower nor any of its Subsidiaries is an “enemy” or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the United States of
America (50 U.S.C. App. §§ 1 et seq.) (the “Trading with the Enemy Act”), as amended. Neither any Borrower nor any of its Subsidiaries is in violation of (a) the Trading with the Enemy Act, as amended,
(b) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto or (c) the Patriot Act. Borrower
(i) is not a blocked person described in Section 1 of the Anti-Terrorism Order or (ii) to the best of its knowledge, has not and does not engage in any dealings or transactions, or is otherwise associated, with any such blocked
person. 
 Section 3.26 Compliance with OFAC Rules and Regulations. 

(a) None of Borrower, its Subsidiaries or their respective Affiliates is in violation of and shall not violate any of the country or list
based economic and trade sanctions administered and enforced by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time. 

(b) None of Borrower, its Subsidiaries or their respective Affiliates (i) is a Sanctioned Person or a Sanctioned Entity,
(ii) has a more than 10% of its assets located in Sanctioned Entities, or (iii) derives more than 10% of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. No proceeds of any Loan will
be used nor have any been used to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Entity. 
 Section 3.27 Compliance with FCPA. 
 Borrower and its Subsidiaries is
in compliance with the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto. Neither Borrower nor its Subsidiaries has made a payment, offering, or promise to pay, or authorized the
payment of, money or anything of value (a) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office,
(b) to a foreign official, foreign political party or party official or any candidate for foreign political office, and (c) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to
Borrower or its Subsidiary or to any other Person, in violation of the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq. 

  
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 ARTICLE IV 
 CONDITIONS PRECEDENT 
 Section 4.1 Conditions to Closing and
Initial Extensions of Credit. 
 This Agreement shall become effective upon, and the obligation of Lender to make the
initial Extensions of Credit on the Closing Date is subject to, the satisfaction of the following conditions precedent: 
 (a)
Execution of Credit Documents. Lender shall have received (i) counterparts of this Agreement, (ii) the Revolving Note, (iii) the Construction Note, and (iv) the Covenant Not To Encumber, in each case conforming to the
requirements of this Agreement and executed by a duly authorized officer of each party thereto, and in each case in form and substance reasonably satisfactory to Lender. 
 (b) Authority Documents. Lender shall have received the following: 
 (i) Articles of Incorporation/Charter Documents. Copies of the articles of incorporation or other charter documents, as applicable, of Borrower certified (A) by an officer of Borrower
(pursuant to a secretary’s certificate in substantially the form of Schedule 4.1-1 attached hereto) as of the Closing Date to be true, correct, complete and in full force and effect as of such date and (B) to be true and complete as
of a recent date by the appropriate Governmental Authority of the state of its incorporation. 
 (ii)
Resolutions. Copies of resolutions of the board of directors of Borrower approving and adopting the Credit Documents, the Transactions contemplated therein and authorizing execution and delivery thereof, certified by a secretary or assistant
secretary of Borrower (pursuant to a secretary’s certificate in substantially the form of Schedule 4.1-1 attached hereto) as of the Closing Date to be true and correct and in force and effect as of such date. 

(iii) Bylaws/Operating Agreement. A copy of the bylaws or comparable operating agreement of Borrower certified by a
secretary or assistant secretary of Borrower (pursuant to a secretary’s certificate in substantially the form of Schedule 4.1-1 attached hereto) as of the Closing Date to be true and correct and in force and effect as of such date.

 (iv) Good Standing. A copy of certificates of good standing, existence or its equivalent with respect
to Borrower certified as of a recent date by the appropriate Governmental Authorities of the state of incorporation or organization and each other state in which the failure to so qualify and be in good standing could reasonably be expected to have
a Material Adverse Effect on the business or operations of Borrower and its Subsidiaries in such state. 
 (v)
Incumbency. An incumbency certificate of Borrower certified by a secretary or assistant secretary (pursuant to a secretary’s certificate in substantially the form of Schedule 4.1-1 attached hereto) to be true and correct as of the
Closing Date. 

  
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 (c) Legal Opinions of Counsel. Lender shall have received opinions of legal counsel
for Borrower, dated the Closing Date and addressed to Lender and Lender, which opinions shall be in form and substance acceptable to Lender. 
 (d) Personal Property Searches. Lender shall have received, in form and substance satisfactory to Lender: 
 (i) searches of UCC filings in the jurisdiction of the chief executive office of Borrower, the state of incorporation or organization of Borrower and each jurisdiction where any Collateral is located or
where a filing would need to be made in order to perfect Lender’s security interest in the Collateral, copies of the financing statements on file in such jurisdictions and evidence that no Liens exist other than Permitted Liens; 

(ii) searches of ownership of Intellectual Property in the appropriate governmental offices and such
patent/trademark/copyright filings as requested by Lender in order to perfect Lender’s security interest in the Intellectual Property; 
 (e) Liability, Casualty and Business Interruption Insurance. Lender shall have received copies of insurance policies or certificates and endorsements of insurance evidencing liability (including
product liability) and casualty insurance meeting the requirements set forth herein or in the Security Documents and business interruption insurance satisfactory to Lender. Lender shall be named as loss payee and/or additional insured with respect
to such insurance, and each provider of any such insurance shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Lender, that it will give Lender thirty (30) days prior written notice
before any such policy or policies shall be altered or cancelled. 
 (f) Solvency Certificate Compliance. Lender shall
have received an officer’s certificate prepared by the chief financial officer of Borrower as to the financial condition, solvency and related matters of Borrower, after giving effect to the initial borrowings under the Credit Documents, in
substantially the form of Schedule 4.1-2 hereto. 
 (g) Account Designation Letter. Lender shall have received the
executed Account Designation Letter in the form of Schedule 1.1-1 hereto. 
 (h) Notice of Borrowing. Lender
shall have received a Notice of Borrowing in the form of Schedule 2.1(b)(i) hereto with respect to the Advance, if any, to be made on the Closing Date. 
 (i) Consents. Lender shall have received evidence that all governmental, shareholder, board of director and third party consents and approvals necessary in connection with the financings and other
transactions contemplated hereby have been obtained. 
 (j) Due Diligence. Lender shall have (i) completed in form
and scope reasonably satisfactory thereto its business, legal, financial and environmental due diligence of Borrower and its Subsidiaries, and (ii) received such documentation and information from Borrower and its Subsidiaries as required by
Lender to comply with applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the requirements of OFAC and the Patriot Act. 

  
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 (k) Compliance with Laws. The financings and other Transactions contemplated hereby
shall be in compliance with all applicable laws and regulations (including all applicable securities and banking laws, rules and regulations). 
 (l) Bankruptcy. There shall be no bankruptcy or insolvency proceedings with respect to Borrower or any of its Subsidiaries. 
 (m) Material Adverse Effect. No event, condition or circumstance which has had or could reasonably be expected to have a Material Adverse Effect shall have occurred since December 31, 2010.

 (n) Revolver Availability. Immediately after giving effect to this Agreement and the initial Extensions of Credit
hereunder, the sum of the outstanding Revolving Advances plus outstanding LOC Obligations shall not exceed the Revolving Committed Amount. 
 (o) Financial Statements. Lender shall have received copies of the financial statements and other financial information referred to in Section 3.1 hereof, each in form and substance
satisfactory to it. 
 (p) Officer’s Certificates. Lender shall have received a certificate executed by a
Responsible Officer of Borrower as of the Closing Date stating that (i) no action, suit, investigation or proceeding is pending or, to the knowledge of Borrower, threatened in any court or before any arbitrator or governmental instrumentality
(A) with respect to Borrower or any of its Subsidiaries that reasonably could be expected to have a Material Adverse Effect on Borrower or any of its Subsidiaries, this Agreement or the other Credit Documents, that has not been settled,
dismissed, vacated, discharged or terminated prior to the Closing Date or (B) with respect to this Agreement or the other Credit Documents that has not been settled, dismissed, vacated, discharged or terminated prior to the Closing Date, and
(ii) immediately after giving effect to this Agreement (including the initial Extensions of Credit hereunder), the other Credit Documents and all the transactions contemplated therein to occur on such date, (A) no Default or Event of
Default exists, (B) all representations and warranties contained herein and in the other Credit Documents are true and correct in all material respects, and (C) Borrower is in compliance with each of the financial covenants set forth in
Section 5.9 on a Pro Forma Basis. 
 (q) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Agreement shall be reasonably satisfactory in form and substance to Lender and its counsel. 
 Section 4.2 Conditions to the Accordion Facility. 
 The obligation of
Lender to make the initial Advance under the Accordion Facility is subject to the satisfaction of the following conditions precedent on the date of making such initial Accordion Advance: 

(a) Receipt of Notice and Fee. Lender has received from Borrower the notice of Borrower’s election to activate the Accordion
Facility setting forth the Initial Accordion Amount, as provided in Section 2.2, and the applicable Accordion Commitment Fee has been paid to Lender. 

  
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 (b) Receipt of Additional Credit Documents. Lender shall have received (i) the
Accordion Note, substantially in the form attached hereto as Schedule 4.2(b), in the Initial Accordion Amount (ii) a Security Agreement, substantially in the form attached hereto as Schedule 4.2(b)(2), granting to Lender a first
security interest in all Collateral, and (iii) such other Security Documents as Lender may reasonably require based upon the nature of the Collateral, including, without limitation, UCC financing statements for each appropriate jurisdiction as
is necessary, in Lender’s sole discretion, to perfect Lender’s security interest in the Collateral, in each case conforming to the requirements of this Agreement and executed by a duly authorized officer of each party thereto, and in each
case in form and substance reasonably satisfactory to Lender. 
 (c) Current Authority Documents. Lender shall have
received the following: 
 (i) Good Standing. A copy of certificates of good standing, existence or its
equivalent with respect to Borrower certified as of a recent date by the appropriate Governmental Authorities of the state of incorporation or organization and each other state in which the failure to so qualify and be in good standing could
reasonably be expected to have a Material Adverse Effect on the business or operations of Borrower and its Subsidiaries in such state. 
 (ii) Incumbency. An incumbency certificate of Borrower in form and substance satisfactory to Lender, certified by a secretary or assistant secretary to be true and correct as of the Closing Date.

 (d) Updated Personal Property Searches. Lender shall have received, in form and substance satisfactory to Lender,
currently dated updates to the searches delivered to Lender pursuant to Section 4.1(d). 
 (e) Notice of Borrowing.
Lender shall have received a Notice of Borrowing in the form of Schedule 2.2(b)(i) hereto with respect to the Advance, if any, to be made on the Closing Date. 
 (f) Bankruptcy. There shall be no bankruptcy or insolvency proceedings with respect to Borrower or any of its Subsidiaries. 
 (g) Material Adverse Effect. No event, condition or circumstance which has had or could reasonably be expected to have a Material Adverse Effect shall have occurred since the Closing Date.

 (h) Default. No Default or Event of Default shall have occurred and be continuing on such date. 

Section 4.3 Conditions to All Extensions of Credit. 
 The obligation of Lender to make any Extension of Credit hereunder is subject to the satisfaction of the following conditions precedent on the date of making such Extension of Credit: 

(a) Representations and Warranties. The representations and warranties made by Borrower herein, in the other Credit Documents or
which are contained in any certificate furnished at any time under or in connection herewith shall be true and correct on and as of the date of such Extension of Credit as if made on and as of such date, except to the extent they expressly relate to
an earlier date. 

  
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 (b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to such Extension of Credit. 
 (c) Compliance with
Commitments. Immediately after giving effect to the making of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum of the aggregate principal amount of outstanding Revolving Advances plus LOC
Obligations issued under the Revolving Facility shall not exceed the Revolving Committed Amount and (ii) the sum of the aggregate principal amount of outstanding Accordion Advances plus LOC Obligations issued under the Accordion Facility
shall not exceed the Effective Accordion Note Amount. 
 (d) Additional Conditions to Revolving Advances. If a Revolving
Advance is requested, all conditions set forth in Section 2.1 shall have been satisfied. 
 (e) Additional Conditions to
Accordion Advances. If an Accordion Advance is requested, (i) all conditions set forth in Section 2.2 shall have been satisfied. 
 (f) Additional Conditions to Letters of Credit. If the issuance of a Letter of Credit is requested, (i) all conditions set forth in Section 2.4 shall have been satisfied. 

(g) Additional Conditions to Construction Advances. If a Construction Advance is requested, all conditions applicable to the
Construction Advance so requested, as set forth in Article VIII, shall have been satisfied. 
 Each request for an Extension of
Credit and each acceptance by Borrower, of any such Extension of Credit shall be deemed to constitute representations and warranties by Borrower as of the date of such Extension of Credit that the applicable conditions in paragraphs (a) through
(g) of this Section have been satisfied. 
 ARTICLE V 

AFFIRMATIVE COVENANTS 
 Borrower hereby covenants and agrees, on the Closing Date and thereafter for so long as this Agreement is in effect, until all of Lender’s obligations to make Advances have terminated, no Note
remains outstanding and unpaid and Borrower’s Obligations together with interest and all other amounts owing to Lender hereunder, are paid in full, Borrower shall, and shall cause each of their Subsidiaries (other than in the case of Sections
5.1, 5.2 or 5.7 hereof), to: 
 Section 5.1 Financial Statements. 

Furnish to Lender: 
 (a) Annual Financial Statements. As soon as available, but in any event within one hundred and twenty (120) days after the end of each fiscal year of Borrower, (i) a copy of the
consolidated and consolidating balance sheet of Borrower and its consolidated Subsidiaries as of the end of such fiscal year and the related consolidated and consolidating statements of income and retained earnings and of cash flows of Borrower and
its consolidated Subsidiaries for such year which, other than in the case of the consolidating statements, shall be audited by a firm of independent certified public accountants of nationally recognized standing reasonably acceptable to Lender,
setting forth in each case in comparative form the figures for the previous year, reported on without a “going concern” or like qualification or exception, or qualification indicating that the scope of the audit was inadequate to permit
such independent certified public accountants to certify such financial statements without such qualification and (ii) if the Accordion Facility has been Activated, an updated Schedule 3.19(b); 

  
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 (b) Quarterly Financial Statements. As soon as available and in any event within
forty-five (45) days after the end of each fiscal quarter of Borrower, (i) a copy of the consolidated and consolidating balance sheet of Borrower and its consolidated Subsidiaries as of the end of such period and related consolidated
statements of income and retained earnings and of cash flows for Borrower and its consolidated Subsidiaries for such quarterly period and for the portion of the fiscal year ending with such period, in each case setting forth in comparative form
consolidated figures for the corresponding period or periods of the preceding fiscal year (subject to normal recurring year-end audit adjustments); 
 all such financial statements to be complete and correct in all material respects (subject, in the case of interim statements, to normal recurring year-end audit adjustments) and to be prepared in
reasonable detail and, in the case of the annual and quarterly financial statements provided in accordance with subsections (a) and (b) above, in accordance with GAAP applied consistently throughout the periods reflected therein and
further accompanied by a description of, and an estimation of the effect on the financial statements on account of, a change, if any, accounting principles as provided in Section 1.3. 

Notwithstanding the foregoing, financial statements and reports required to be delivered pursuant to the foregoing provisions of this
Section may be delivered electronically and if so, shall be deemed to have been delivered on the date on which Lender receives such reports from Borrower through electronic mail; provided that, upon Lender’s request, Borrower shall provide
paper copies of any documents required hereby to Lender. 
 Section 5.2 Certificates; Other Information. 

Furnish to Lender: 
 (a) Within seven (7) Business Days after receipt thereof, copies of any reports or “management letter” or other similar document or documents submitted to Borrower by a certified public
accountant in connection with the examination of the financial statements of Borrower or any of its Subsidiaries; 
 (b) No
later than thirty (30) days after the end of each of Borrower’s first three fiscal quarters, and concurrently with the delivery of Borrower’s annual financial statement, a 

  
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certificate signed by the president and chief financial officer of Borrower, certifying (i) compliance with the applicable financial covenants set forth in Section 5.9, (ii) the
calculated Leverage Ratio, and (iii) that no Default or Event of Default has occurred and is continuing under any of the documents evidencing or securing the Facilities, or if a Default or Event of Default has occurred, the nature of such
Default or Event of Default and the actions being taken or proposed in connection with the remedy of such Default or Event of Default (a “Compliance Certificate”), which Compliance Certificate shall be in the form attached hereto as
Schedule 5.2(b), together with all supporting information, worksheets and calculations establishing compliance with the applicable financial covenants; 
 (c) Within seven (7) days after the filing thereof, Borrower’s Form 10-K and Form 10-Q and any reports or other documents filed by Borrower or any of its Subsidiaries with the SEC; 

(d) Concurrently with or prior to the delivery of the financial statements referred to in Sections 5.1(a) above, an updated copy of
Schedule 3.16 if the Accordion Facility has been Activated and Borrower has registered, applied for registration of, acquired or otherwise obtained ownership of any new Intellectual Property since the Closing Date or since such Schedule was
last updated, as applicable; and 
 (e) Promptly, such other information as may be reasonably requested from time to time by
Lender. 
 Section 5.3 Payment of Taxes and Other Obligations. 

Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its taxes (federal,
state, local and any other taxes) and other obligations and liabilities of whatever nature and any additional costs that are imposed as a result of any failure to so pay, discharge or otherwise satisfy such taxes, obligations and liabilities, except
when the amount or validity of any such taxes, obligations and liabilities is currently being contested in good faith by appropriate proceedings and reserves, if applicable, in conformity with GAAP with respect thereto have been provided on the
books of Borrower. 
 Section 5.4 Conduct of Business and Maintenance of Existence. 

Continue to engage in business of the same general type as conducted by it on the Closing Date; preserve, renew and keep in full force
and effect its existence and good standing and take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business and to maintain its goodwill; comply with all Contractual
Obligations and Requirements of Law applicable to it except to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 

Section 5.5 Maintenance of Property; Insurance. 
 (a) Keep all material property useful and necessary in its business in good working order and condition (ordinary wear and tear and obsolescence excepted). 

  
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 (b) Maintain with financially sound and reputable insurance companies (i) insurance in
such amounts and covering such risks as are usually carried by companies engaged in the same or a similar business and similarly situated, which insurance may provide for reasonable deductibility from coverage thereof, and shall include, without
limitation, fire, theft and extended coverage casualty insurance coverage insuring Borrower’s property, including, without limitation, any Collateral for the Accordion Facility, in an amount of not less than the full replacement value thereof,
(ii) general public liability insurance (including, without limitation, automobile and product liability) in an amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate, (iii) business interruption insurance and
(iv) during any period of construction of Improvements, cause the policy evidencing fire and extended coverage insurance for the Improvements to be in the so-called “Builder’s Risk 100% Completed Value Non-Reporting” form; and
furnish to Lender, upon written request, full information as to the insurance carried. Lender shall be named as loss payee or an additional insured, as applicable, with respect to such insurance policies (except that Lender need not be named the
loss payee under any property insurance until such time as the Accordion Facility has been Activated), and each provider of such insurance policies shall agree, by endorsement upon the policy or policies issued by it or by independent instruments
furnished to Lender, that it will give Lender thirty (30) days prior written notice before any such policy or policies shall be altered or canceled, and that no act or default of Borrower or any of its Subsidiaries or any other Person shall
affect the rights of Lender under such policy or policies. The present insurance coverage of Borrower is outlined as to carrier, policy number, expiration date, type and amount on Schedule 5.5(b). 

(c) In the case of the occurrence of any material business interruption or material casualty, damage to, loss or destruction of any
Collateral for the Accordion Facility or any material part thereof, or seizure of an such Collateral for any reason, including, without limitation, action by any foreign government, Borrower shall promptly give written notice thereof to Lender
generally describing the nature and extent of such damage or destruction. In case of any loss, damage to or destruction of such Collateral or any part thereof, Borrower, whether or not the insurance proceeds, if any, received on account of such
damage or destruction shall be sufficient for that purpose, at Borrower’s cost and expense, will promptly repair or replace such Collateral so lost, damaged or destroyed. 
 Section 5.6 Inspection of Property; Books and Records; Discussions. 

Keep proper books of records and accounts in which full, true and correct entries shall be made of all dealings and transactions in
relation to its businesses and activities, such entries to be in conformity with GAAP and all Requirements of Law; and permit, during regular business hours and upon reasonable notice by Lender, Lender to visit and inspect any of its properties and
examine and make abstracts from any of its books and records at any reasonable time and as often as may reasonably be desired, and to discuss the business, operations, properties and financial and other condition of Borrower and its Subsidiaries
with officers and employees of Borrower and with their independent certified public accountants. 
 Section 5.7
Notices. 
 Give notice in writing to Lender of: 

(a) promptly, but in any event within five (5) Business Days after Borrower knows or has reason to know thereof, the occurrence of
any Default or Event of Default; 

  
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 (b) promptly, the occurrence of any default or event of default under any Contractual
Obligation of Borrower or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect or involve a monetary claim in excess of $500,000; 
 (c) promptly, any litigation, or any investigation or proceeding known to Borrower (i) affecting Borrower or any of its Subsidiaries which, if adversely determined, could reasonably be expected to
have a Material Adverse Effect or involve a monetary claim in excess of $500,000, (ii) affecting or with respect to this Agreement or any other Credit Document or (iii) involving an environmental claim or potential liability under
Environmental Laws; 
 (d) as soon as possible and in any event within thirty (30) days after Borrower knows or has reason
to know thereof: (i) the occurrence or expected occurrence of any Reportable Event with respect to any ERISA Plan, a failure to make any required contribution to an ERISA Plan, the creation of any Lien in favor of the PBGC (other than a
Permitted Lien) or an ERISA Plan or any withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution of proceedings or the taking of any other action by the PBGC or Borrower or any
Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the terminating, Reorganization or Insolvency of, any Plan; 
 (e) any notice of any violation of any Requirement of Law received by Borrower or any of its Subsidiaries from any Governmental Authority including, without limitation, any notice of violation of
Environmental Laws which could reasonably be expected to have a Material Adverse Effect; 
 (f) any labor controversy that has
resulted in, or threatens to result in, a strike or other work action against Borrower or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect; 

(g) any attachment, judgment, lien, levy or order exceeding $500,000 that may be assessed against or threatened against Borrower other
than Permitted Liens; and 
 (h) promptly, any other development or event which could reasonably be expected to have a Material
Adverse Effect. 
 Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer setting
forth details of the occurrence referred to therein and stating what action Borrower proposes to take with respect thereto. In the case of any notice of a Default or Event of Default, Borrower shall specify that such notice is a Default or Event of
Default notice on the face thereof. 
 Section 5.8 Environmental Laws. 

(a) Comply in all material respects with, and take reasonable steps to ensure compliance in all material respects by all tenants and
subtenants, if any, with, all applicable Environmental Laws and obtain and comply in all material respects with and maintain, and take 

  
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reasonable steps to ensure that all tenants and subtenants obtain and comply in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits
required by applicable Environmental Laws; 
 (b) Conduct and complete all investigations, studies, sampling and testing, and
all remedial, removal and other actions required under Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws except to the extent that the
same are being contested in good faith by appropriate proceedings and the pendency of such proceedings could not reasonably be expected to have a Material Adverse Effect; and 
 (c) Defend, indemnify and hold harmless Lender, and its employees, agents, officers and directors, from and against any and all claims, demands, penalties, fines, liabilities, settlements, damages, costs
and expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of Borrower or
any of its Subsidiaries or the Properties, or any orders, requirements or demands of Governmental Authorities related thereto, including, without limitation, reasonable attorney’s and consultant’s fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that any of the foregoing arise out of the gross negligence or willful misconduct of the party seeking indemnification therefor as determined by a court of competent
jurisdiction in a final and non-appealable judgment. The agreements in this paragraph shall survive repayment of Borrower’s Obligations. 
 Section 5.9 Financial Covenants. 
 (a) Commencing on the day
immediately following the Closing Date and continuing until such time as the Accordion Facility is Activated, Borrower shall comply with the following financial covenants: 

(i) Consolidated Tangible Net Worth. Borrower shall maintain a Consolidated Tangible Net Worth of not less than
$92,000,000, which amount shall be increased annually by an amount equal to fifty percent (50%) of Consolidated Net Income for the prior year as shown on the annual financial statement delivered to Lender as provided in Section 5.1(a).
Compliance shall be tested on the last day of each calendar quarter on a trailing 4-quarter basis. 
 (ii)
Minimum Consolidated EBITDA. Borrower shall maintain Consolidated EBITDA of not less than $5,000,000. Upon the funding of the initial Advance under the Accordion Facility or the Construction Facility, whichever shall first occur, this
covenant shall terminate and be of no further force or effect. 
 (b) Commencing with end of the first calendar quarter after
the initial Advance under the Accordion Facility or the Construction Facility, whichever shall first occur, Borrower shall comply with the following financial covenants: 

(i) Consolidated Tangible Net Worth. Borrower shall continue to maintain not less than the Consolidated Tangible
Net Worth set forth in subsection (a)(i), above. 

  
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 (ii) Leverage Ratio. Borrower shall maintain a Leverage Ratio equal
to or less than 3.00 to 1.00. 
 (iii) Consolidated EBIT to Consolidated Interest Expense Ratio. Borrower
shall maintain a Consolidated EBIT to Consolidated Interest Expense ratio equal to not less than 2.50 to 1.00. 
 (c)
Compliance Testing. Compliance with each of the financial covenants set forth in this Section 5.9 shall be tested on the last day of each calendar quarter on a trailing 4-quarter basis. 

Section 5.10 Compliance with Law. 
 Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders, and all applicable restrictions imposed by all Governmental Authorities, applicable to it
and its property if noncompliance with any such law, rule, regulation, order or restriction could reasonably be expected to have a Material Adverse Effect. 
 Section 5.11 Pledged Assets. 
 In the event that the Accordion
Facility is Activated: 
 (a) Borrower will, and will cause each of its Subsidiaries to, cause 100% of the Capital Stock of each
of its direct or indirect Domestic Subsidiaries to be subject at all times to a first priority, perfected Lien in favor of Lender pursuant to the terms and conditions of the Security Documents or such other security documents as Lender shall
reasonably request. 
 (b) If, subsequent to the date the Accordion Facility is Activated, Borrower shall acquire any
securities, instruments, chattel paper or other personal property required for perfection to be delivered to Lender as Collateral hereunder or under any of the Security Documents, Borrower shall promptly (and in any event within five
(5) Business Days) after such acquisition notify Lender of same. Borrower shall, and shall cause each of its Subsidiaries to, take such action at its own expense as may be necessary or otherwise requested by Lender (including, without
limitation, any of the actions described in Section 4.2 hereof) to ensure that Lender has a first priority perfected Lien to secure Borrower’s Obligations in all Domestic Business Assets, subject only to Permitted Liens. 

Section 5.12 Covenants Regarding Intellectual Property. 

From and after the date upon which the Accordion Facility is Activated: 

(a) Borrower shall notify Lender promptly if it knows or has reason to know that any material application, letters patent or registration
relating to any material Patent, material Patent License, material Trademark or material Trademark License of Borrower or any of its Subsidiaries may become abandoned, or of any adverse determination or development (including, without limitation,
the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office or any court) regarding Borrower’s or any of its Subsidiary’s ownership of any material Patent or material
Trademark, its right to patent or register the same, or to enforce, keep and maintain the same, or its rights under any material Patent License or material Trademark License. 

  
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 (b) (i) Concurrently with the delivery of the quarterly and annual financial statements of
Borrower pursuant to Section 5.1(a) and (b) hereof, Borrower shall provide to Lender and its counsel a complete and correct list of all new Intellectual Property owned by or licensed to Borrower or any of its Subsidiaries with respect to
which Lender has not filed a notice of grant of security interest with the United States Patent and Trademark Office or the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, as
applicable. 
 (ii) Upon request of Lender, Borrower shall execute and deliver any and all agreements,
instruments, documents, and papers as Lender may reasonably request to evidence Lender’s security interest in the Intellectual Property and the general intangibles (including goodwill) related thereto or represented thereby. 

(c) Borrower and its Subsidiaries will take all reasonably necessary actions, including, without limitation, in any proceeding before the
United States Patent and Trademark Office or the United States Copyright Office, to maintain all material items of Intellectual Property of Borrower and its Subsidiaries, including, without limitation, payment of maintenance fees, filing of
applications for renewal, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings. 
 (d) In the event that Borrower becomes aware that any material Intellectual Property is infringed, misappropriated or diluted by a third party in any material respect, Borrower shall notify Lender
promptly after it learns thereof and shall, unless Borrower shall reasonably determine that such Intellectual Property is not material to the business of Borrower or Borrower and its Subsidiaries taken as a whole, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, or take such other actions as Borrower and Lender shall reasonably deem appropriate under the circumstances to protect such
Intellectual Property. 
 Section 5.13 Deposit and Securities Accounts. 

Borrower shall maintain each of its material operating deposit accounts with Lender. 

Section 5.14 Further Assurances. 
 Upon the reasonable request of Lender, after the Accordion Facility is Activated, promptly perform or cause to be performed any and all acts and execute or cause to be executed any and all documents which
are necessary or advisable to create or maintain in favor of Lender Liens on all Domestic Business Assets of Borrower that are duly perfected in accordance with all applicable Requirements of Law. 

  
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 ARTICLE VI 
 NEGATIVE COVENANTS 
 Borrower hereby covenants and agrees, on the Closing
Date and thereafter for so long as this Agreement is in effect, until all of Lender’s obligations to make Advances have terminated, no Note remains outstanding and unpaid and Borrower’s Obligations together with interest and all other
amounts owing to Lender hereunder, are paid in full, that: 
 Section 6.1 Indebtedness. 

Borrower will not, and will not permit any Domestic Subsidiary to, contract, create, incur, assume or permit to exist any Indebtedness,
except: 
 (a) Indebtedness arising or existing under this Agreement and the other Credit Documents; 

(b) Indebtedness existing as of the Closing Date as referenced in the financial statements referenced in Section 3.1 (and set out
more specifically in Schedule 6.1(b)) hereto and renewals, refinancings or extensions thereof in a principal amount not in excess of that outstanding as of the date of such renewal, refinancing or extension; 

(c) Indebtedness incurred after the Closing Date consisting of Capital Leases and/or purchase money Liens not exceeding $1,000,000.00, in
the aggregate; 
 (d) Unsecured intercompany Indebtedness among Borrower; provided that any such Indebtedness shall be
(i) fully subordinated to Borrower’s Obligations hereunder on terms reasonably satisfactory to Lender and (ii) evidenced by promissory notes which shall be pledged to Lender as Collateral for Borrower’s Obligations in the event
that the Accordion Facility is Activated; 
 (e) Indebtedness and obligations owing under Bank Products and other Hedging
Agreements not entered into for speculative purposes; 
 (f) Indebtedness in respect of Guaranty Obligations to the extent
permitted under Section 6.3. 
 Section 6.2 Liens. 

Borrower will not, and will not permit any Subsidiary to, contract, create, incur, assume or permit to exist any Lien with respect to any
Domestic Business Assets of Borrower or its Subsidiaries, whether now owned or hereafter acquired, except for Permitted Liens. 

Section 6.3 Guaranty Obligations. 
 Borrower will not enter into or otherwise become or be liable in respect of any Guaranty Obligations (excluding specifically therefrom endorsements in the ordinary course of business of negotiable
instruments for deposit or collection) other than (a) any Guaranty Obligations in favor 

  
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of Lender, (b) guaranties given by Borrower or any of its Subsidiaries in connection with obligations not constituting Indebtedness, including real property leases and other contracts
entered into in the ordinary course of business, and (c) guaranties by Borrower of Indebtedness of Borrower or its Subsidiaries permitted under Section 6.1. 
 Section 6.4 Nature of Business. 
 Borrower will not, and will not
permit any Subsidiary to, alter the character of its business in any material respect from that conducted as of the Closing Date. 
 Section 6.5 Consolidation, Merger, Sale or Purchase of Assets, etc. 

Borrower will not, and will not permit any Domestic Subsidiary to: 

(a) dissolve, liquidate or wind up its affairs, sell, transfer, lease to a third party or otherwise dispose of its property or assets or
agree to do so at a future time except the following shall be expressly permitted: 
 (i) Specified Sales;

 (ii) the disposition of property or assets as a result of a Recovery Event; 

(iii) the sale, lease, transfer or other disposition of machinery, parts and equipment no longer used or useful in the
conduct of the business of Borrower or any of its Subsidiaries; 
 (iv) the sale, lease or transfer of property
or assets between Borrower and its Subsidiaries, so long as any Liens of Lender with respect to such property or assets remain in full force and effect and fully perfected after giving effect to such transaction; and 

(v) any other sale, lease or transfer of property or assets not to exceed 5% of Consolidated Tangible Net Worth in the
aggregate in any fiscal year (measured as of the end of the preceding fiscal year); 
 provided, that in each case (other than with
respect to clause (iv) above) (A) at least 75% of the consideration received therefor by Borrower or any such Subsidiary shall be in the form of cash or Cash Equivalents, (B) after giving effect to the sale, lease, transfer or other
disposition of such property or assets and the repayment of Indebtedness (if any) with the proceeds thereof, Borrower shall be in compliance on a Pro Forma Basis with the financial covenants set forth in Section 5.9 hereof and shall be in
compliance with all other terms and conditions of this Agreement and (C) no Event of Default shall exist or shall result from such sale, lease, transfer or other disposition of property or assets; or 

(b) without Lender’s prior written consent, which consent shall not be unreasonably withheld or delayed by Lender,
(i) purchase, lease or otherwise acquire the property or assets of any Person, except (A) as part of a Permitted Acquisition or (B) purchases or other acquisitions of inventory, materials, property and equipment in the ordinary course
of business which are not 

  
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limited or prohibited by this Agreement, or (ii) enter into any transaction of merger or consolidation, except for (A) Permitted Investments and Permitted Acquisitions, and (B) the
merger or consolidation of a Subsidiary with and into Borrower; provided that Borrower will be the surviving corporation. 
 Section 6.6 Advances, Investments and Loans. 
 Borrower will not, and
will not permit any Domestic Subsidiary to, lend money or extend credit or make advances to any Person, or purchase or acquire any Capital Stock, obligations or securities of, or any other interest in, or make any capital contribution to, any
Person, except for Permitted Investments and Permitted Acquisitions. 
 Section 6.7 Transactions with Affiliates.

 Except as permitted in subsection (vi) of the definition of Permitted Investments, Borrower will not, and will not
permit any Subsidiary to, enter into any transaction or series of transactions, whether or not in the ordinary course of business, with any officer, director, shareholder or Affiliate other than on terms and conditions substantially as favorable as
would be obtainable in a comparable arm’s-length transaction with a Person other than an officer, director, shareholder or Affiliate. 
 Section 6.8 Ownership of Subsidiaries; Restrictions. 
 Borrower will
not, and will not permit any Subsidiary to, create, form or acquire any Subsidiaries, except for wholly-owned Subsidiaries. Borrower will not, and will not permit any Subsidiary to, sell, transfer, pledge or otherwise dispose of any Capital Stock or
other equity interests in any of its Subsidiaries, nor will it, or permit any Subsidiary to, issue, sell, transfer, pledge or otherwise dispose of any of its Capital Stock or other equity interests, except as required by the Credit Documents or
pursuant to a transaction permitted by Section 6.5(a)(iv). 
 Section 6.9 Fiscal Year; Organizational Documents;
Material Contracts. 
 Borrower will not, and will not permit any of its Subsidiaries to, change its fiscal year. Borrower
will not, and will not permit any of its Subsidiaries to, amend, modify or change their articles of incorporation (or corporate charter or other similar organizational document), operating agreement or bylaws (or other similar document) in any
material respect without the prior written consent of Lender. Borrower will not, and will not permit any of its Subsidiaries to, without the prior written consent of Lender, (a) (i) change its state of incorporation or organization,
without providing thirty (30) days prior written notice to Lender and without filing (or confirming that Lender has filed) such financing statements and amendments to any previously filed financing statements as Lender may reasonably require,
or (ii) change its registered legal name, without providing thirty (30) days prior written notice to Lender and without filing (or confirming that Lender has filed) such financing statements and amendments to any previously filed financing
statements as Lender may require, (b) amend, modify, cancel or terminate or fail to renew or extend or permit the amendment, modification, cancellation or termination of any of the Material Contracts (other than in the ordinary course of
business), except in the event that such amendments, modifications, cancellations or terminations could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect,

  
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(c) have more than one state of incorporation, organization or formation or (d) change its accounting method (except in accordance with GAAP) in any manner adverse to the interests of
Lender. 
 Section 6.10 Limitation on Restricted Actions. 

(a) Borrower will not, and will not permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or
become effective any encumbrance or restriction on the ability of any such Person to (i) pay dividends or make any other distributions to Borrower on its Capital Stock or with respect to any other interest or participation in, or measured by,
its profits, (ii) pay any Indebtedness or other obligation owed to Borrower, (iii) make loans or advances to Borrower, (iv) sell, lease or transfer any of its properties or assets to Borrower, or (v) act as a guarantor and pledge
its assets pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof, or amend or otherwise modify the Credit Documents, except (in respect of any of the matters referred to in clauses (i)-(iv) above)
for such encumbrances or restrictions existing under or by reason of (A) this Agreement and the other Credit Documents, (B) Legal Requirements, (C) any document or instrument governing Indebtedness incurred pursuant to
Section 6.1(c), provided that any such restriction contained therein relates only to the asset or assets leased or acquired in connection therewith or (D) any Permitted Lien or any document or instrument governing any Permitted
Lien, provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien. 
 (b) Borrower will not, and will not permit any Subsidiary to, directly or indirectly, enter into any Indebtedness or other agreement with financial covenants or other restrictions on Borrower or such
Subsidiary which are more restrictive, in the reasonable determination of Lender, than the financial covenants and other restrictions contained herein. 
 Section 6.11 Restricted Payments. 
 Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, declare, order, make or set apart any sum for or pay any Restricted Payment if, as a result of such action, Borrower would fail to comply, on a Pro Forma Basis, with any applicable financial covenant
set forth in Section 5.9. 
 Section 6.12 Sale Leasebacks. 

Borrower will not, and will not permit any Subsidiary to, directly or indirectly, become or remain liable as lessee or as guarantor or
other surety with respect to any lease, whether an operating lease or a Capital Lease, of any property (whether real, personal or mixed), whether now owned or hereafter acquired, (a) which Borrower or any of its Subsidiaries has sold or
transferred or is to sell or transfer to a Person which is not Borrower or a Subsidiary thereof or (b) which Borrower or any of its Subsidiaries intends to use for substantially the same purpose as any other property which has been sold or is
to be sold or transferred by Borrower or any of its Subsidiaries to another Person which is not Borrower or Subsidiary thereof in connection with such lease. 

  
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 Section 6.13 No Further Negative Pledges. 

Borrower will not, and will not permit any Subsidiary to, enter into, assume or become subject to any agreement prohibiting or otherwise
restricting the creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant of any security to secure obligations under such agreement if security is given for some other
obligation, except (a) pursuant to this Agreement and the other Credit Documents, (b) pursuant to any document or instrument governing Indebtedness incurred pursuant to Section 6.1(c), provided that any such restriction
contained therein relates only to the asset or assets leased or acquired in connection therewith, and (c) in connection with any Permitted Lien or any document or instrument governing any Permitted Lien, provided that any such
restriction contained therein relates only to the asset or assets subject to such Permitted Lien. 
 Section 6.14
Modifications of Subordinated Indebtedness. 
 Borrower will not, and will not permit any Subsidiary to, after the
issuance thereof, amend or modify (or permit the amendment or modification of) any of the terms of any Subordinated Debt of Borrower or Subsidiary if such amendment or modification would add or change any terms in a manner adverse to Lender, or
shorten the final maturity or average life to maturity or require any payment to be made sooner than originally scheduled or increase the interest rate applicable thereto or change any subordination provision thereof. 

Section 6.15 Foreign Asset Purchases. 
 Borrower will not, and will not permit any Subsidiary to, use any of the Advances in excess of $10,000,000 to purchase foreign assets or direct an Advance in excess of $10,000,000 to any one or more of
Borrower’s Foreign Subsidiaries. 
 Section 6.16 Transfer or Change of Location of Collateral. 

Borrower will not, after the date on which the Accordion Facility is Activated, transfer or permit the transfer to another location not
currently owned or leased by Borrower, any Collateral or the books and records related to any of the Collateral. After the date on which the Accordion Facility is Activated, Borrower shall provide, at any time and from time to time, written lists of
the location of the Collateral within thirty (30) days after Lender’s request therefor. 
 Section 6.17 Change
of Borrower’s Name. 
 Borrower will not change Borrower’s name without giving twenty (20) days prior written
notice to Lender. 

  
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 ARTICLE VII 
 EVENTS OF DEFAULT 
 Section 7.1 Events of Default. 

An Event of Default shall exist upon the occurrence of any of the following specified events (each an “Event of
Default”): 
 (a) Payment. (i) Borrower shall fail to pay any principal or interest on any Facility when
due (whether at maturity, by reason of acceleration or otherwise) in accordance with the terms hereof; or (ii) Borrower shall fail to reimburse Lender for any LOC Obligations when due (whether at maturity, by reason of acceleration or
otherwise) in accordance with the terms hereof; or (iii) Borrower shall fail to pay any or other Borrower Obligation or any fee or other amount payable hereunder when due (whether at maturity, by reason of acceleration or otherwise) in
accordance with the terms hereof; or 
 (b) Misrepresentation. Any representation or warranty made or deemed made herein,
in the Security Documents or in any of the other Credit Documents or which is contained in any certificate, document or financial or other statement furnished at any time under or in connection with this Agreement shall prove to have been incorrect,
false or misleading in any material respect on or as of the date made or deemed made; or 
 (c) Covenant Default.
(i) Borrower shall fail to perform, comply with or observe any term, covenant or agreement applicable to it contained in Sections 5.1, 5.2, 5.4, 5.7 or 5.9, 5.11 or Article VI hereof; or (ii) Borrower shall fail to comply with any other
covenant, contained in this Agreement or the other Credit Documents or any other agreement, document or instrument between Borrower and Lender or executed by Borrower in favor of Lender (other than as described in Sections 7.1(a) or 7.1(c)(i)
above), and in the event such breach or failure to comply is capable of cure, is not cured within the time prescribed therein, or to the extent not prescribed therein, within thirty (30) days of its occurrence; or 

(d) Indebtedness Cross-Default. Borrower or any of its Subsidiaries shall (i) default in any payment of principal of or
interest on any Indebtedness (other than the Indebtedness hereunder) in a principal amount outstanding of at least $500,000.00 in the aggregate for Borrower and its Subsidiaries beyond the period of grace (not to exceed 30 days), if any, provided in
the instrument or agreement under which such Indebtedness was created; or (ii) default in the observance or performance of any other agreement or condition relating to any Indebtedness (other than the Indebtedness hereunder) in a principal
amount outstanding of at least $500,000.00 in the aggregate for Borrower and its Subsidiaries or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of
which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or to be repurchased, prepaid, deferred or redeemed (automatically or otherwise); or (iii) default beyond the period of
grace (not to exceed 30 days) in the observance or performance of any material agreement or condition under any Hedging Agreement that is a Bank Product; or 

  
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 (e) Bankruptcy Default. (i) Borrower or any of its Subsidiaries shall commence
any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with
respect to it, or seeking to have it judged bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment
of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or Borrower or any of its Subsidiaries shall make a general assignment for the benefit of its creditors; or
(ii) there shall be commenced against Borrower or any of its Subsidiaries any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication
or appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be commenced against Borrower or any of its Subsidiaries any case, proceeding or other action seeking issuance
of a warrant of attachment, execution, distraint or similar process against all or any substantial part of their assets which results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded
pending appeal within sixty (60) days from the entry thereof; or (iv) Borrower or any of its Subsidiaries shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or (v) Borrower or any of its Subsidiaries shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or 

(f) Judgment Default. One or more judgments, orders, decrees or arbitration awards shall be entered against Borrower or any of its
Subsidiaries involving in the aggregate a liability (to the extent not covered by third-party insurance) of $500,000.00 or more and all such judgments, orders, decrees or arbitration awards shall not have been paid and satisfied, vacated,
discharged, stayed or bonded pending appeal within 30 days from the entry thereof or any injunction, temporary restraining order or similar decree shall be issued against Borrower or any of its Subsidiaries that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect; or 
 (g) ERISA Default. (i) Any Person shall
engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any ERISA Plan, (ii) any “accumulated funding deficiency” (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan (other than a Permitted Lien) shall arise on the assets of Borrower, any of its Subsidiaries or any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings
or appointment of a trustee is, in the reasonable opinion of the Required Lender, likely to result in the termination of such ERISA Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV
of ERISA, (v) Borrower, any of its Subsidiaries or any Commonly Controlled Entity shall, or in the reasonable opinion of Lender is likely to, incur any liability in connection with a withdrawal from, or the Insolvency or

  
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Reorganization of, any Multiemployer Plan or (vi) any other similar event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through
(vi) above, such event or condition, together with all other such events or conditions, if any, could have a Material Adverse Effect; or 
 (h) Change of Control. There shall occur a Change of Control; or 
 (i)
Invalidity of Credit Documents. Any Credit Document shall fail to be in full force and effect or, once the Accordion Facility has been Activated, shall fail to give Lender and/or Lender the security interests, liens, rights, powers and
privileges purported to be created thereby (except as such documents may be terminated or no longer in force and effect in accordance with the terms thereof, other than those indemnities and provisions which by their terms shall survive), or
Borrower or any Person acting by or on behalf of Borrower shall deny or disaffirm any of Borrower’s Obligations, or any Lien shall fail to be perfected on a material portion of the Collateral; or 

(j) Uninsured Loss. Any uninsured damage to or loss, theft or destruction of any assets of Borrower or any of its Subsidiaries
shall occur that is in excess of $5,000,000.00; or 
 (k) Subordinated Debt. The subordination provisions under any
Subordinated Debt shall cease to be in full force and effect or shall cease to give Lender the rights, powers and privileges purported to be created thereby; or 
 (l) Classification as Senior Debt. Borrower’s Obligations shall cease to be classified as “Senior Indebtedness,” “Designated Senior Indebtedness” or any similar designation
under any Subordinated Debt instrument. 
 If a Default shall have occurred under the Credit Documents, then such Default will
continue to exist until it either is cured (to the extent specifically permitted) in accordance with the Credit Documents or is otherwise expressly waived by Lender (in its sole and absolute discretion); and once an Event of Default occurs under the
Credit Documents, then such Event of Default will continue to exist until it is expressly waived by Lender. 
 Section 7.2
Acceleration; Remedies. 
 Upon the occurrence and during the continuation of an Event of Default, then, and in any such
event, (a) if such event is a Bankruptcy Event, automatically Lender’s obligation to make Advances shall immediately terminate and the Facilities (with accrued interest thereon), and all other Borrower Obligations under the Credit
Documents (including, without limitation, the maximum amount of all contingent liabilities under Letters of Credit) shall immediately become due and payable, and Borrower shall immediately pay to Lender cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit in an amount equal to the maximum amount which may be drawn under Letters of Credit then outstanding and (b) if such event is any other Event of Default, any or all of
the following actions may be taken: Lender may (i) by notice to Borrower declare all obligations of Lender to make Advances to be terminated forthwith, whereupon such obligations shall immediately terminate, (ii) by notice of default to
Borrower, declare the Facilities (with accrued interest thereon) and all other Borrower’s Obligations under the Credit Documents (including without 

  
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limitation the maximum amount of all contingent liabilities under Letters of Credit) to be due and payable forthwith and direct Borrower to pay to Lender cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit an amount equal to the maximum amount of which may be drawn under Letters of Credit then outstanding, whereupon the same shall immediately become due and payable,
(iii) if deemed reasonably necessary by Lender, hire, at the expense of Borrower, one or more consultants and Borrower agrees to cooperate with such consultants, (iv) exercise any rights or remedies of Lender or Lender under this Agreement
or any other Credit Document, including, without limitation, any rights or remedies with respect to any Collateral, and (v) exercise any rights or remedies available to Lender or Lender under applicable law. 

ARTICLE VIII 
 THE CONSTRUCTION FACILITY 
 Section 8.1 Construction Advances.

 Subject to the provisions of this Agreement, from time to time as work on the Project progresses, Lender shall make
Construction Advances to Borrower, in an aggregate principal amount not to exceed the Budget, in the amounts specified in Section 8.4, for the purpose of paying Construction Costs and Non-Construction Costs incurred in connection with the
Project. Borrower agrees that all Construction Advances will be made by such means as Lender may from time to time designate; provided, however, that Lender shall not be required to see to the proper application of any such Construction Advance and
shall not incur any liability for any failure of such proper application. Further, following an Event of Default and for so long as such Event of Default remains uncured (if cure thereof is accepted by Lender), Lender reserves the right to disburse
Construction Advances directly to contractors and subcontractors and no further direction or authorization from Borrower shall be necessary following an Event of Default to warrant disbursement directly to the contractors and subcontractors, and all
disbursements to the contractors and subcontractors shall satisfy pro tanto the obligations of Lender hereunder. As a condition precedent to the Initial Construction Disbursement, Borrower shall furnish to Lender a complete construction
schedule and a current trade cost breakdown, itemized as to trade items, trade descriptions. 
 Section 8.2 Stored
Materials. 
 Lender shall from time to time make, upon the request of Borrower, Construction Advances for major building
materials, furniture, fixtures and equipment (the “Materials”), which are to be incorporated into the Improvements but which, at the time of the Construction Advance, are stored on site or at the manufacturing or a warehouse storage
site and are not yet affixed to or incorporated into the Improvements, provided that: 
 (a) The Materials are securely stored
and protected from and bonded or insured against theft, vandalism and the elements to Lender’s reasonable satisfaction, and provided further that the aggregate amount advanced for materials stored at any time shall not exceed $1,000,000.00;

  
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 (b) All conditions for a Construction Advance under this Agreement are satisfied;

 (c) If not yet delivered to the Land, the Materials are fully manufactured and stored in a designated area which effectively
segregates the Materials from all other materials or equipment located at the manufacturing or warehouse storage site; 
 (d)
The storer shall have agreed with Lender that Lender and/or Inspecting Engineer may inspect the Materials at any time; 
 (e)
Lender has received, in respect of each requested Construction Advance, invoices for the full price of the Materials. 

Section 8.3 Requests for Advances. 

To receive Construction Advances, Borrower shall submit each Draw Request to Lender not more frequently than once
monthly on or before the tenth (10th) day of each
month. Upon receipt of the Draw Request and the documentation required hereby in connection therewith, Lender may cause an inspection to be made of the progress of construction. If Lender elects not to cause an inspection to be made or otherwise
determines as a result of any such inspection that construction is proceeding diligently and in accordance with the Plans approved in the manner required by this Agreement, and if all conditions to such Construction Advance as hereinafter provided
shall have been fulfilled, Lender will make the Construction Advance on or before the twentieth (20th) day of the same month, upon and subject to all of the terms and conditions of this Agreement, including, without limitation, the following: 

(a) In no event shall Lender be required to advance any Construction Facility proceeds for any work performed or materials delivered
after the Construction Facility Conversion Date. No Draw Request shall be funded prior to the date upon which Lender has received and approved such Draw Request and all documentation required hereby, and all disbursements will be made to Borrower in
a manner determined by Lender or, with Lender’s approval, as Borrower directs in writing. Borrower, in making payment to such party or parties as shall have supplied labor, material or service, shall accurately designate the items of account
and the contract for which payment is being made. All Construction Facility proceeds will be considered to have been advanced to and received by Borrower upon, and interest on the Construction Facility proceeds will be payable by Borrower from and
after, the advance of the Construction Facility proceeds as aforesaid; and 
 (b) All Construction Advances shall be used only
for the payment of line items as shown in the Budget (as the same may be adjusted from time to time with the prior written approval of Lender) and shall be evidenced by the Construction Note and this Agreement. 

Section 8.4 Disbursement Amounts. 
 Subject to the allocations contained in the Budget and the limitations on disbursements that are hereinafter set forth, each Construction Advance shall be made in an amount equal to the percentage of work
completed and incorporated into the Improvements, multiplied by the total allocation of Construction Facility proceeds available for such work pursuant to the Budget, plus the amount allocable to Materials which qualify for disbursement under
Section 8.2, less 

  
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amounts previously advanced for such work and/or Materials and less the applicable Holdback, up to a maximum of one hundred percent (100%) of all approved Construction Costs incurred by
Borrower (excluding the value of the Land) plus approved Non-Construction Costs incurred by Borrower. Notwithstanding the foregoing, the aggregate principal amount to be disbursed shall not exceed the amount that results in the lesser of
(i) a loan-to-cost ratio for the Project of not more than eighty percent (80%) based on the cost breakdown approved by Lender and/or Lender’s inspecting engineer, or (ii) a loan-to-value ratio for the Project of seventy-five
percent (75%) based on the “as completed” fair market value of the Project, as determined the Appraisal. Disbursement of Construction Advances shall be subject to the following additional provisions: 

(a) There shall be withheld from the amount of each Advance of Construction Costs a sum (the “Holdback”) equal to ten
percent (10%) of such Construction Costs. All Holdback amounts will be disbursed by Lender at the time of the Final Construction Disbursement; and 
 (b) Subject to the terms and conditions of this Agreement, Lender will make disbursements to pay actual costs approved by Lender and shown on the Budget of (i) labor performed on, and equipment and
Materials incorporated into, the Improvements, and (ii) developing the Project. At no time shall the undisbursed balance of the Construction Facility (taking into account all Construction Facility proceeds theretofore advanced by Lender and all
construction theretofore completed) be less than the sum of (y) the amount allocated by Lender to complete the construction of the Improvements and (z) the aggregate amount of Holdbacks to date. 

Section 8.5 Conditions to Initial Construction Disbursement. 

Notwithstanding anything to the contrary contained in this Agreement, Lender shall have no obligation to make the Initial Construction
Disbursement unless and until: 
 (a) The conditions set forth in Subsections 4.3(a), (b) and (c) are satisfied;

 (b) the Construction Contract and the Plans have been submitted to and approved by Lender and are in full force and effect;

 (c) Lender has received a list of all subcontracts and, to the extent required by Lender, Lender has also received and
approved the subcontracts with the subcontractors as to form, substance and the qualifications of the subcontractors thereunder; 
 (d) in Lender’s determination, there remain sufficient undisbursed and unallocated proceeds of the Construction Facility to fully fund the construction and equipping of the Project to completion in
accordance with the approved Plans; 
 (e) unless waived by Lender, until Lender has received each of the following documents,
items and things, all of which shall be satisfactory in form and substance to Lender: 
 (i) a detailed cost
breakdown for construction of the Improvements; 
 (ii) evidence that Completion of Improvements can be achieved
for a total cost that does not exceed the amount allocated thereto in the Budget (which evidence shall include, but will not necessarily be limited to, a satisfactory plan and cost review prepared by Inspecting Engineer); 

  
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 (iii) a building timetable verifying that Completion of Improvements can be
achieved by the Construction Facility Conversion Date; 
 (iv) approval by Inspecting Engineer of the final Plans
and cost breakdown for construction of the Improvements; 
 (v) evidence that all licenses, permits, consents,
approvals and authorizations for the construction of the Improvements, including without limitation the building permit(s), are in full force and effect and that no notices of violation or revocation with respect thereto have been received;

 (vi) evidence that (A) the Notice of Commencement has been duly executed and recorded and
(B) Borrower has caused to be posted on the Land a certified copy of the recorded Notice of Commencement; 

(vii) a certificate of insurance or other evidence that the builder’s risk insurance required by Section 5.5(b),
above, is in full force and effect with respect to the Improvements; 
 (viii) a current boundary survey of the
Land; and 
 (ix) a current Appraisal of the Project on an “as completed” basis. 

Section 8.6 Subsequent Disbursements. 
 Once the Initial Construction Disbursement has been made by Lender, Lender shall make further Construction Advances no more often than monthly (including the Final Construction Disbursement) upon receipt
of a Draw Request, subject to the continuing satisfaction of the conditions set forth in Section 8.5 and to the following additional conditions: 
 (a) Lender shall have received such lien waivers, releases and affidavits with respect to all prior disbursements and all prior work, from contractors, subcontractors, sub-subcontractors, materialmen and
other potential lienors (including without limitation Borrower’s Engineer), as may be reasonably required by Lender; 
 (b)
All licenses, permits, consents, approvals and authorizations for the construction and development of the Improvements, or so much thereof as to which construction has been commenced, shall be in full force and effect and no notices of violation or
revocation with respect to any thereof shall have been received; 
 (c) Lender shall have received such updates or
recertifications to the survey of the Land as Lender may reasonably require, including, without limitation, a foundation survey when the foundation of the Improvements has been completed; 

  
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 (d) Lender shall have received verification from the Inspecting Engineer, based upon a
visual inspection, that the percentage or stage of completion is as represented on the Draw Request, and that all construction to date is in accordance with the approved Plans; and 

(e) Lender shall have received such other instruments, documents and certificates as Lender may reasonably request. 

Section 8.7 Final Construction Disbursement. 
 Lender shall make the final Construction Advance for payment of Construction Costs, and shall release any Holdbacks that have not been theretofore released (collectively, the “Final Construction
Disbursement”), upon Lender’s receipt of the following documents, items and things, all of which shall be satisfactory in form and substance to Lender: 
 (a) Certificates of the Contractor and Inspecting Engineer (i) stating that the Improvements have been fully completed in accordance with the Plans approved by Lender and all applicable building,
fire, safety, environmental and similar codes, and (ii) containing such other details concerning the construction of the Improvements as Lender may reasonably request, together with verification of such statements and information by the
Inspecting Engineer; 
 (b) An affidavit from the Contractor, together with recordable lien waivers and releases of lien
satisfactory to Lender from all contractors, subcontractors, sub-subcontractors, materialmen and all other persons entitled to enforce a lien against the Project under the Florida Construction Lien Law with respect to work completed to the date of
the Final Construction Disbursement (which may be conditioned upon receipt of a specified portion of the proceeds of the Final Construction Disbursement), and such additional affidavits and assurances as may be reasonably required by Lender to
determine that the Project will be free and clear of mechanics’ liens; 
 (c) Evidence that all certificates or permits
required for the use and occupancy of the Improvements have been duly issued by the appropriate Governmental Authority, together with copies of all such certificates and permits; 

(d) An as-built survey locating all Improvements, certified for the benefit of Borrower and Lender, showing that no encroachments exist
over the boundaries of the Land or over any set-back or right-of-way lines; and 
 (e) As-built plans and specifications for the
Improvements, certified by Borrower’s Engineer. 
 Section 8.8 Additional Conditions to Disbursement.

 Anything contained herein, or in any other agreement between Borrower and Lender, to the contrary notwithstanding, Lender
shall not be obligated to make any Construction Advance hereunder that it otherwise would be obligated to make if, on the date such Construction Advance is to be made: 
 (a) Borrower shall be unwilling or unable to pay for that portion of Construction Costs and Non-Construction Costs then due and payable that will not be covered by such Construction Advance; 

  
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 (b) there is of record any mortgage, lien, charge or other encumbrance on the Project or the
Properties; 
 (c) Any portion of the Improvements theretofore constructed shall have been destroyed or materially damaged by
fire or other casualty and (i) Lender shall not have received insurance proceeds sufficient in the judgment of Lender to effect the satisfactory restoration of the Improvements and to permit the completion thereof on or before the Construction
Facility Conversion Date, or (ii) Borrower shall not have agreed to fund any deficit, as reasonably estimated by Lender and in a manner satisfactory to Lender, in order to effect the satisfactory restoration of the affected Improvements and to
permit the completion thereof on or before the Construction Facility Conversion Date; 
 (d) Lender shall reasonably determine
that (i) the undisbursed portion of the Construction Facility is insufficient to fully complete the Improvements in a lien-free condition and to pay or provide for all reasonably anticipated Non-Construction Costs and (ii) Borrower has
failed to provide Lender with satisfactory evidence of Borrower’s willingness and ability to provide the additional amount necessary to cover such shortfall; or 
 (e) Any of the conditions set forth in Subsection 4.3(a), Subsection 4.3(b) or Subsection 4.3(c) is not satisfied. 
 ARTICLE IX 
 MISCELLANEOUS 

Section 9.1 Modification, Waiver, Consent. 
 No purported modification or waiver of any provision of this Agreement, and no purported consent to any departure by Borrower from strict compliance with any of its obligations hereunder, shall be
effective in any event unless the same is in writing and signed by Lender, and then such modification, waiver or consent shall be effective only in the specific instance and for the specific purpose given. Any notice to or demand on Borrower in any
event not specifically required of Lender hereunder shall not entitle Borrower to any other or further notice or demand in the same, similar or other circumstances unless specifically required hereunder. Any Advance of proceeds of any of the
Facilities hereunder shall not constitute a waiver of any of the conditions of Lender’s obligations to make further Advances nor, in the event Borrower is unable to satisfy any such condition, shall any such waiver have the effect of precluding
Lender from thereafter declaring such inability to be an Event of Default as hereinabove provided. From and after the occurrence of any Event of Default, Lender may accept or reject any offer or undertaking by Borrower to cure same in the exercise
of Lender’s sole discretion. 

  
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 Section 9.2 Notices. 

(a) Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in
paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows: 

 

	 	(i)	If to Borrower: 

Sun Hydraulics Corporation 
 1500 West University Parkway 
 Sarasota, FL 34243 

Attention: Tricia Fulton, Chief Financial Officer 

Telephone: (941) 362-1232 
 Fax: (941) 362-1268 
 Email: triciaf@sunhydraulics.com

  

	 	(ii)	If to Lender: 

Fifth Third Bank (Tampa Bay) 
 201 East Kennedy Boulevard, Suite 1800 
 MD T201KA 

Tampa, FL 33602 
 Attention: Andrew D. Hahn, Vice President 
 Telephone:
(813) 306-2448 
 Fax: (813) 306-2529 

Email: Andrew.Hahn@53.com 
 Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications
to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b). 
 (b) Electronic
Communications. Notices and other communications to Lender hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Lender. Lender and Borrower
may, in their discretion, agree to accept notices and other communications hereunder by electronic communications pursuant to procedures approved by them, provided that approval of such procedures may be limited to particular notices or
communications. 
 Unless Lender otherwise prescribes, (i) notices and other communications sent to an e-mail address shall
be deemed received upon the sender’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), provided that if
such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the

  
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recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. 
 (c) Change of Address, Etc. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice to the other parties hereto. 

Section 9.3 No Waiver; Cumulative Remedies. 
 No failure to exercise and no delay in exercising, on the part of Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law. 
 Section 9.4 Survival of Representations and
Warranties. 
 All representations and warranties made hereunder and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the Notes and the making of the Extensions of Credit, provided that all such representations and warranties shall terminate on the date
upon which all obligations of Lender to make Advances hereunder have been terminated and all amounts owing hereunder and under any Notes have been paid in full. 
 Section 9.5 Payment of Expenses and Taxes; Indemnity. 
 (a) Costs
and Expenses. Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by Lender and its Affiliates (including the reasonable fees, charges and disbursements of counsel for Lender), in connection with the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the Transactions shall be consummated),
(ii) all reasonable out-of-pocket expenses incurred by Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by
Lender (including the fees, charges and disbursements of any counsel for Lender) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Credit Documents, including its rights under
this Section, or (B) in connection with the Advances made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Advances or Letters of
Credit. 
 (b) Indemnification by Borrower. Borrower shall indemnify Lender and each Related Party of Lender (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, penalties, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for
any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party arising out of, 

  
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in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the Transactions, (ii) any Advance or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal
by Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Materials of Environmental Concern on or from any property owned or operated by Borrower or any of its Subsidiaries, or any liability under Environmental Law related in any way to Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, brought by a third party, and regardless of whether any Indemnitee is a party thereto, provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are the result of the gross negligence or willful misconduct of such Indemnitee. This paragraph
(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from non-Tax claim. 
 (c) Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable law, Borrower shall not assert, and Borrower hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument
contemplated hereby, the Transactions, any Facility or Letter of Credit or the use of the proceeds thereof. To the fullest extent permitted by applicable law, Lender shall not assert, and Lender hereby waives, any claim against Borrower, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument
contemplated hereby, the Transactions, any Facility or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the Transactions. 

(d) Payments. All amounts due under this Section shall be payable promptly/not later than five (5) days after demand
therefor. 
 (e) Survival. The agreements contained in this Section shall survive the termination of the Commitments and
the repayment, satisfaction or discharge of Borrower’s Obligations. 
 Section 9.6 Successors and Assigns;
Assignment. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns permitted hereby. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, and participants of Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

  
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 (b) Assignments. Lender, in the exercise of its sole discretion, may (i) assign
this Agreement and the other Credit Documents, including all of its rights hereunder and thereunder, and cause the assignee or any subsequent assignee to make any Advances not made at the time of the assignment, or (ii) participate one or more
of the Facilities with one or more other lending institutions; and, in either such event, all the provisions of this Agreement shall continue to apply to the Facilities. Lender shall have the right to disclose to any prospective assignee of or
participant in one or more of the Facilities such information regarding any Borrower as Lender may deem necessary or expedient. Borrower shall have no right to assign this Agreement or the proceeds to be advanced hereunder without Lender’s
prior written consent. Notwithstanding the foregoing, in the event Borrower does make an assignment of this Agreement or its rights hereunder, Lender may, at Lender’s option, continue to make Advances hereunder to Borrower or Borrower’s
successors in interest, and all sums so advanced shall be deemed Advances made in pursuance and not in modification hereof and shall be evidenced by the Notes and secured by the Security Documents, if any. 

Section 9.7 Right of Set off. 
 (a) If an Event of Default shall have occurred and be continuing, Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable
law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by Lender or any such Affiliate to or for
the credit or the account of Borrower against any and all of the obligations of Borrower now or hereafter existing under this Agreement or any other Credit Document to Lender, irrespective of whether or not Lender shall have made any demand under
this Agreement or any other Credit Document and although such obligations of Borrower may be contingent or unmatured or are owed to a branch or office of Lender different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that Lender or its Affiliates may have. Lender agrees to notify Borrower promptly after any such
setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 (b) Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any lender acquiring a participation pursuant to the foregoing arrangements may
exercise against Borrower rights of setoff and counterclaim with respect to such participation as fully as if such lender were a direct creditor of Borrower in the amount of such participation. 

Section 9.8 Table of Contents and Section Headings. 
 The table of contents and the Section and subsection headings herein are intended for convenience only and shall be ignored in construing this Agreement. 

  
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 Section 9.9 Counterparts; Effectiveness. 

(a) This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. Except as provided in Section 4.1, this Agreement shall become effective when it shall have been executed by Borrower and Lender and Lender shall
have received copies hereof and thereof (telefaxed or otherwise), and thereafter this Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and permitted assigns. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy or email shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section 9.10 Severability. 
 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, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 9.11
Integration. 
 This Agreement and the other Credit Documents represent the agreement of Borrower and Lender with respect
to the subject matter hereof, and there are no promises, undertakings, representations or warranties by Lender or Borrower relative to the subject matter hereof not expressly set forth or referred to herein or therein. 

Section 9.12 Governing Law. 
 This Agreement and the Notes and the rights and obligations of the parties under this Agreement and the Notes shall be governed by, and construed and interpreted in accordance with, the law of the State
of Florida. 
 Section 9.13 Consent to Jurisdiction and Service of Process. 

All judicial proceedings brought against Borrower with respect to this Agreement, any Note or any of the other Credit Documents may be
brought in any state or federal court of competent jurisdiction in the State of Florida, and, by execution and delivery of this Agreement, Borrower accepts, for itself and in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any final judgment rendered thereby in connection with this Agreement from which no appeal has been taken or is available. Borrower irrevocably agrees that all
service of process in any such proceedings in any such court may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address set forth in Section 9.2
or at such other address of which Lender shall have been notified pursuant thereto, such service being hereby acknowledged by Borrower to be effective and binding service in every respect. Borrower and Lender irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on the grounds of forum non 

  
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conveniens which it may now or hereafter have to the bringing of any such action or proceeding in any such jurisdiction. Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of Lender to bring proceedings against Borrower in the court of any other jurisdiction. 
 Section 9.14 Acknowledgments. 
 Borrower hereby acknowledges that:

 (a) it has been advised by counsel in the negotiation, execution and delivery of each Credit Document; 

(b) Lender has no fiduciary relationship with or duty to Borrower arising out of or in connection with this Agreement and the
relationship between Lender, on one hand, and Borrower, on the other hand, in connection herewith is solely that of debtor and creditor; and 
 (c) no joint venture exists among Lender and Borrower. 
 Section 9.15
Waivers of Jury Trial; Waiver of Consequential Damages. 
 BORROWER AND LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 

Section 9.16 Patriot Act Notice. 
 Lender (for itself and not on behalf of any other party) hereby notifies Borrower that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that
identifies Borrower, which information includes the name and address of Borrower and other information that will allow such Lender to identify Borrower in accordance with the Patriot Act. 

Section 9.17 Resolution of Drafting Ambiguities. 
 Borrower acknowledges and agrees that it was represented by counsel in connection with the execution and delivery of this Agreement and the other Credit Documents to which it is a party, that it and its
counsel reviewed and participated in the preparation and negotiation hereof and thereof and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation hereof
or thereof. 
 Section 9.18 Continuing Agreement. 

This Credit Agreement shall be a continuing agreement and shall remain in full force and effect until all Borrower Obligations (other
than those obligations that expressly survive the termination of this Credit Agreement) have been paid in full and all obligations of Lender to make Advances and Letters of Credit have been terminated. Upon termination, Borrower shall

  
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have no further obligations (other than those obligations that expressly survive the termination of this Credit Agreement) under the Credit Documents and Lender shall, at the request and expense
of Borrower, deliver any Collateral in its possession to Borrower and release any and all Liens on the Collateral; provided that should any payment, in whole or in part, of Borrower’s Obligations be rescinded or otherwise required to be
restored or returned by Lender, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, then the Credit Documents shall automatically be reinstated and any and all Liens of Lender shall reattach to the Collateral and all
amounts required to be restored or returned and all costs and expenses incurred by Lender in connection therewith shall be deemed included as part of Borrower’s Obligations. 

Section 9.19 Press Releases and Related Matters. 
 Borrower consents to the publication by Lender of customary advertising material relating to the Transactions using the name, product photographs, logo or trademark of Borrower. 

Section 9.20 No Advisory or Fiduciary Responsibility. 

In connection with all aspects of each Transaction, Borrower acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (a) the credit facility provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Credit
Document) are an arm’s-length commercial transaction between Borrower and their Affiliates, on the one hand, and Lender, on the other hand, and Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and
conditions of the Transactions and the other Credit Documents (including any amendment, waiver or other modification hereof or thereof); (b) in connection with the process leading to such transaction, Lender is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person; (c) Lender has not assumed or will assume an advisory, agency or fiduciary
responsibility in favor of Borrower with respect to any of the Transactions or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Credit Document (irrespective of whether Lender
has advised or is currently advising Borrower or any of its Affiliates on other matters) and Lender has no obligation to Borrower or any of its Affiliates with respect to the Transactions except those obligations expressly set forth herein and in
the other Credit Documents; (d) Lender and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of Borrower and its Affiliates, and Lender has no obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (e) Lender has not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the Transactions (including any amendment, waiver
or other modification hereof or of any other Credit Document) and Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Borrower hereby waives and releases, to the fullest extent
permitted by law, any claims that it may have against Lender with respect to any breach or alleged breach of agency or fiduciary duty. 

  
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 Section 9.21 Responsible Officers. 

Lender is authorized to rely upon the continuing authority of the Responsible Officers with respect to all matters pertaining to the
Credit Documents including, but not limited to, the selection of interest rates, the submission of requests for Extensions of Credit and certificates with regard thereto. Such authorization may be changed only upon written notice to Lender and
evidence, reasonably satisfactory to Lender, of the authority of the Person giving such notice and such notice shall be effective not sooner than five (5) Business Days following receipt thereof by Lender (or such earlier time as agreed to by
Lender). 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by its proper
and duly authorized officers as of the day and year first above written. 
  

							
	BORROWER:	 		 	 SUN HYDRAULICS CORPORATION,
 a Florida corporation

				
		 		 	By:	 	 /s/ Tricia Fulton

		 		 	Name:	 	 Tricia Fulton

		 		 	Title:	 	 CFO

			
	LENDER:	 		 	 FIFTH THIRD BANK,
 a Florida banking corporation

				
		 		 	By:	 	 /s/ Andrew D. Hahn

		 		 	Name:	 	 Andrew D. Hahn

		 		 	Title:	 	 Vice President

  
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