Document:

exh_101.htm

EXHIBIT 10.1

 

STOCK PURCHASE AGREEMENT

 

by and between

 

SIMMONS FIRST NATIONAL CORPORATION

and

ROGERS BANCSHARES, INC.

Dated as of September 10, 2013

 

  

  

  

TABLE OF CONTENTS

 

Page

 

	
ARTICLE 1 INTERPRETATION

	
1

	
Section 1.01.

	
Definitions

	
1

	
Section 1.02.

	
Interpretation

	
11

	
Section 1.03.

	
Governing Law

	
12

	 	 	 
	
ARTICLE 2 PURCHASE OF SHARES AND OTHER ASSETS; EQUITY CONTRIBUTION

	
12

	
Section 2.01.

	
Purchase and Sale of the Shares and Other Purchased Assets

	
12

	
Section 2.02.

	
Consideration

	
12

	
Section 2.03.

	
Payments

	
13

	
Section 2.04.

	
Equity Contribution

	
13

	
Section 2.05.

	
Excluded Liabilities

	
13

	 	 	 
	
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

	
13

	
Section 3.01.

	
Corporate Status and Authority; Non-contravention

	
13

	
Section 3.02.

	
Capitalization of the Bank

	
15

	
Section 3.03.

	
Business Operations

	
16

	
Section 3.04.

	
Regulatory Reports

	
18

	
Section 3.05.

	
Deposits

	
18

	
Section 3.06.

	
Financial Matters

	
19

	
Section 3.07.

	
Tax Matters

	
21

	
Section 3.08.

	
Litigation and Claims

	
22

	
Section 3.09.

	
Employees

	
22

	
Section 3.10.

	
Employee Benefit Plans; Labor

	
23

	
Section 3.11.

	
Properties and Leases

	
25

	
Section 3.12.

	
Absence of Certain Changes

	
26

	
Section 3.13.

	
Commitments and Contracts

	
26

	
Section 3.14.

	
Risk Management Instruments

	
28

	
Section 3.15.

	
Environmental Matters

	
29

	
Section 3.16.

	
Insurance

	
29

	
Section 3.17.

	
Intellectual Property

	
30

	
Section 3.18.

	
Related Party Transactions

	
31

	
Section 3.19.

	
Community Reinvestment Act and Consumer Compliance

	
31

	
Section 3.20.

	
Anti-money Laundering

	
32

	
Section 3.21.

	
Customer Information Security

	
33

	
Section 3.22.

	
Loan Portfolio

	
33

	
Section 3.23.

	
Brokers or Finders

	
34

	
Section 3.24.

	
Investment Securities

	
35

	
Section 3.25.

	
No Other Representations and Warranties

	
35

	 	 	 
	
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

	
35

	
Section 4.01.

	
Corporate Status and Authority; Non-contravention

	
35

	
Section 4.02.

	
Governmental Authorizations

	
36

	
Section 4.03.

	
Investment Intent

	
36

	
Section 4.04.

	
Proof of Financial Ability To Perform; Sufficient Funds

	
36

	
Section 4.05.

	
No Other Representations and Warranties

	
36

 

  

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ARTICLE 5 PRE-CLOSING MATTERS AND OTHER COVENANTS

	
36

	
Section 5.01.

	
Operations Until Closing

	
36

	
Section 5.02.

	
Confidentiality

	
42

	
Section 5.03.

	
Return of Information

	
43

	
Section 5.04.

	
Consents and Approvals

	
43

	
Section 5.05.

	
Certain Company Contracts

	
45

	
Section 5.06.

	
Indemnification; D&O Insurance

	
45

	
Section 5.07.

	
Notices of Certain Events

	
46

	
Section 5.08.

	
Waiver of Fee

	
47

	
Section 5.09.

	
Debtor-in-Possession

	
47

	
Section 5.10.

	
Investment Portfolio

	
47

	
Section 5.11.

	
[Reserved]

	
47

	
Section 5.12.

	
Sale Order

	
47

	
Section 5.13.

	
Non-Solicitation of Competing Bids

	
49

	
Section 5.14.

	
Public Announcements

	
49

	
Section 5.15.

	
Tax Refunds and Other Proceeds

	
49

	
Section 5.16.

	
Tax Election

	
50

	
Section 5.17.

	
Preparation and Filing of Tax Returns; Taxes

	
50

	
Section 5.18.

	
Tax Cooperation

	
51

	
Section 5.19.

	
Tax Proceedings

	
51

	
Section 5.20.

	
Transfer Taxes

	
51

	
Section 5.21.

	
Bankruptcy Filings

	
52

	
Section 5.22.

	
Transfer of Business-Related Assets and Contracts

	
52

	
Section 5.23.

	
Plan

	
53

	
Section 5.24.

	
Appeal

	
53

	
Section 5.25.

	
Redemption of Shares; Charter Documents; Director Shares

	
53

	
Section 5.26.

	
Payment of the Broker’s Fees

	
53

	
Section 5.27.

	
Severance Policy

	
54

	 	 	 
	
ARTICLE 6 CONDITIONS OF CLOSING

	
54

	
Section 6.01.

	
Conditions to Purchaser’s Obligations

	
54

	
Section 6.02.

	
Conditions to the Company’s Obligations

	
55

	
Section 6.03.

	
Mutual Condition

	
56

	
Section 6.04.

	
Termination

	
56

	 	 	 
	
ARTICLE 7 CLOSING TRANSACTIONS

	
58

	
Section 7.01.

	
Time and Place

	
58

	
Section 7.02.

	
Company’s Closing Deliverables

	
58

	
Section 7.03.

	
Purchaser’s Closing Deliverables

	
59

	
Section 7.04.

	
Concurrent Delivery

	
59

	
Section 7.05.

	
Transfer of Shares and Other Purchased Assets

	
59

	 	 	 
	
ARTICLE 8 SURVIVAL OF REPRESENTATIONS AND COVENANTS

	
60

	
Section 8.01.

	
Survival

	
60

	 	 	 
	
ARTICLE 9 MISCELLANEOUS

	
60

	
Section 9.01.

	
Legal and Other Fees and Expenses

	
60

	
Section 9.02.

	
Notices

	
60

	
Section 9.03.

	
Further Assurances

	
61

 

  

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Section 9.04.

	

Time of the Essence

	 
	
Section 9.05.

	
Entire Agreement

	
62

	
Section 9.06.

	
Assignment

	
62

	
Section 9.07.

	
Invalidity

	
62

	
Section 9.08.

	
Waiver and Amendment

	
62

	
Section 9.09.

	
Third-Party Beneficiaries

	
62

	
Section 9.10.

	
Captions

	
62

	
Section 9.11.

	
Counterparts

	
63

	
Section 9.12.

	
Specific Performance

	
63

	
Section 9.13.

	
Jurisdiction

	
63

	
Section 9.14.

	
Waiver of Jury Trial

	
63

 

SCHEDULES AND EXHIBITS

 

	
Schedule 1.01

	
Certain Affiliates of Purchaser

 

	
Schedule 2.01

	
Certain Other Purchased Assets

 

	
Schedule 4.02

	
Purchaser Required Approvals

 

	
Schedule 5.05

	
Assumed Bank Related Contracts

 

	
Exhibit A

	
Bidding Procedures

 

	
Exhibit B

	
Bidding Procedures Order

 

	
Exhibit C

	
Sale Motion

 

  

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STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of September 10, 2013, by and between SIMMONS FIRST NATIONAL CORPORATION, an Arkansas corporation (the “Purchaser”), and ROGERS BANCSHARES, INC., an Arkansas corporation (the “Company”).

 

RECITALS

 

	
A.

	
The Company is the record and beneficial owner of 638,800 shares of the 640,000 aggregate issued and outstanding shares of capital stock of Metropolitan National Bank, a national banking association (the “Bank”), and the directors of the Bank are the record and beneficial owners of the remaining 1,200 shares of the capital stock of the Bank.

 

	
B.

	
The Company wishes to sell, and the Purchaser wishes to purchase, all of the Company’s shares of capital stock of the Bank on the Closing Date (as hereinafter defined) (the “Shares”) and certain other assets of the Company, all free and clear of all Encumbrances (as hereinafter defined) and on the terms and conditions set forth in this Agreement.

 

	
C.

	
Immediately following the Purchaser’s acquisition of all of the capital stock of the Bank, the Purchaser shall make the Equity Contribution (as hereinafter defined) to the Bank, on the terms and conditions set forth in this Agreement.

 

	
D.

	
The Company filed a voluntary bankruptcy petition (the “Bankruptcy Case”) under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq. (the “Bankruptcy Code”), in the United States Bankruptcy Court for the Eastern District of Arkansas, Little Rock Division (the “Bankruptcy Court”), on July 5, 2013.

 

	
E.

	
The parties intend for the sale and purchase of the Shares and the Other Purchased Assets (as hereinafter defined), including the assumption and assignment of the Assumed Bank Related Contracts (as hereinafter defined), if any (the “Sale”), to be effectuated pursuant to an order of the Bankruptcy Court under Sections 105, 363 and 365 of the Bankruptcy Code approving such transactions (the “Sale Order”).

 

In consideration of the covenants, agreements, representations and warranties set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, covenant and agree as follows:

 

ARTICLE 1

Interpretation

 

Section 1.01. Definitions.  In this Agreement, unless the context otherwise requires or unless otherwise specifically provided herein:

 

“Affected Jurisdiction” is defined in Section 3.20(b).

 

  

  

  

“Affiliate” means, with respect to any Person, any other Person controlling, controlled by or under common control with, such Person, with “control” for such purpose meaning the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or voting interests, by contract or otherwise.

 

“Agreement” is defined in the introductory paragraph.

 

“Allowed Bidder Outside Date” is defined in Exhibit A.

 

“Assumed Bank Related Contracts” is defined in Section 5.05.

 

“Assumed Contract Liabilities” is defined in Section 5.05.

 

“Auction” is defined in Exhibit A.

 

“Audited Financial Statements” means the consolidated audited financial statements of the Bank and its Subsidiaries, consisting of consolidated audited statements of financial condition as of December 31, 2012, 2011, and 2010, consolidated audited statements of operations for the years ended December 31, 2012, 2011, and 2010, consolidated audited statements of comprehensive income for the years ended December 31, 2012, 2011 and 2010, consolidated audited statements of stockholders’ equity for the years ended December 31, 2012, 2011 and 2010, and consolidated audited statements of cash flows for the years ended December 31, 2012, 2011 and 2010, true and complete copies of which have previously been provided to the Purchaser prior to the date hereof.

 

“Bank” is defined in the recitals.

 

“Bank D&O Policy” is defined in Section 5.06(b).

 

“Bank Director Stock Purchase Agreement” means that certain Amended and Restated Stock Purchase and Transfer Agreement dated as of March 17, 2010 by and among the Bank and certain directors of the Bank.

 

“Bank Related Contracts” is defined in Section 2.01.

 

“Bank Significant Agreement” is defined in Section 3.13(a).

 

“Bank Tax Refund” means any refund of Tax received from any Governmental Authority attributable to the Bank and its Subsidiaries.  For purposes of clarification, no intercompany tax liability pursuant to the Tax Sharing Agreement will be deemed to be included in the Bank Tax Refund.

 

“Bank Transaction Expenses” is defined in Section 9.01.

 

“Bankruptcy Case” is defined in the recitals.

 

“Bankruptcy Code” is defined in the recitals.

 

  

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“Bankruptcy Court” is defined in the recitals.

 

“Bankruptcy Rules” means the Federal Rules of Bankruptcy Procedure, as in effect from time to time.

 

“Benefit Arrangement” means any “employee benefit plan” as defined in Section 3(3) of ERISA (whether or not subject to ERISA) and any other plan, program, agreement, arrangement, obligation or practice, including any pension, profit sharing, severance, welfare, fringe benefit, employee loan, retirement, medical, welfare, employment or consulting, severance, stay or retention bonuses or compensation, executive or incentive compensation, sick leave, vacation pay, disability, workers’ compensation, retirement, deferred compensation, bonus, stock option or purchase or other stock-based, tuition reimbursement or scholarship, employee discount, meals, travel, or vehicle allowances, plan, program, agreement, arrangement, obligation or practice, any plans subject to Section 125 of the Code, as amended, and any plans or arrangements providing benefits or payments in the event of a change of control, change in ownership or effective control or sale of assets (i) established, sponsored, maintained, or contributed to, or required to be contributed to, by the Bank or any ERISA Affiliate, on behalf of any current or former director, employee, agent, independent contractor, or service provider of the Bank or its Subsidiaries, or their beneficiaries, or (ii) pursuant to which the Bank or any ERISA Affiliate has any obligation (whether contingent or otherwise) with respect to any such persons.

 

“BHCA” means the Bank Holding Company Act of 1956, as amended.

 

“Bidding Procedures” means the procedures set forth in Bidding Procedures Order.

 

“Bidding Procedures Order” means the  order of the Bankruptcy Court, dated July 31, 2013, entitled "Order Approving (A) Bidding Procedures, (B) Bidding Protections and (C) the form and manner of Notice of sale of Certain Assets and Granting Related Relief", a copy of which is attached hereto as Exhibit B.

 

“Books and Records” means all files, ledgers and correspondence, all manuals, reports, notes, memoranda, invoices, receipts, accounts, accounting records and books, financial statements and financial working papers and all other records and documents of any nature or kind whatsoever, including those recorded, stored, maintained, operated, held or otherwise wholly or partly dependent on discs, tapes and other means of storage, including any electronic, magnetic, mechanical, photographic or optical process, whether computerized or not, and all software, passwords and other information and means of or for access thereto, belonging to the Bank or its Subsidiaries or relating to the Business.

 

“Broker” means Keefe, Bruyette & Woods, Inc.

 

“Broker’s Fees” means the fees and expenses payable by the Company and/or the Bank to the Broker (including any obligations of the Company or the Bank to indemnify the Broker) in connection with this Agreement or any of the transactions contemplated hereby, including the Sale, in an aggregate amount equal to the amount set forth in Section 3.23 of the Disclosure Schedule.

 

  

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“Burdensome Condition” means any restraint, limitation, term, requirement, provision or condition imposed by any Governmental Authority that could (i) reasonably be expected to be materially burdensome on, or impair in any material respect the anticipated benefits of the Contemplated Transactions to, the Purchaser or any of its Affiliates; (ii) require any Person other than the Purchaser and the Persons listed on Schedule 1.01 to be deemed a bank holding company under the BHCA; (iii) require a material modification of, or impose any material limitation or restriction on, the activities, governance, legal structure, compensation, or fee arrangements of the Purchaser or any of its Affiliates; (iv) require a contribution of capital in an amount in excess of the Equity Contribution or require any Person other than the Purchaser to guaranty, support or maintain the capital of the Bank at or after the Closing; or (v) cause any Person other than the Purchaser and the Persons listed on Schedule 1.01 to be deemed to control the Bank.

 

“Business” means the business currently and previously carried on by the Bank and its Subsidiaries.

 

“Business Day” means any day other than a Saturday, Sunday or any federal holiday in the United States.

 

“Call Reports” means the Bank’s Consolidated Reports of Condition and Income (FFIEC Form 041) or any successor form of the Federal Financial Institutions Examination Council.

 

“Canadian Sanctions” is defined in Section 3.20(b).

 

“Charter Documents” means articles or certificate of incorporation or association, bylaws and any other comparable constituent document of a corporate entity.

 

“Closing” means the completion of the sale and purchase of the Shares and the Other Purchased Assets, including the assumption and assignment of the Assumed Bank Related Contracts (if any), in accordance with Article 7.

 

“Closing Date” means the fifth Business Day following the satisfaction or waiver, as applicable, of the conditions set forth in Article 6 (other than those conditions that by their nature are to be satisfied at the Closing, but subject to fulfillment or waiver of those conditions), but not later than the Allowed Bidder Outside Date.

 

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

“Common Stock” is defined in Section 3.02(a).

 

“Company” is defined in the introductory paragraph.

 

“Company’s Reports” is defined in Section 3.04(a).

 

“Company Tax Returns” is defined in Section 5.17.

 

  

-4-

  

“Consent” means any approval, consent, ratification, waiver or other authorization.

 

“Contemplated Transactions” means all of the transactions between the Company, the Bank, and the Purchaser contemplated by this Agreement, including all transfers and assignments of Other Purchased Assets between the Company and the Bank contemplated by this Agreement, the execution, delivery and performance of all documents, instruments and agreements contemplated hereby and the merger of the Bank with and into Simmons First National Bank ("SFNB"), a wholly owned bank subsidiary of the Purchaser.

 

“Contracts” means all contracts, agreements, instruments, leases, indentures and commitments, whether written or oral, including non-competition, non-solicitation and confidentiality agreements.

 

“CRA” is defined in Section 3.19.

 

“Criticized Assets” is defined in Section 3.22(a).

 

“Cure Costs” means, with respect to any contract or agreement to which the Company is party, the amount required to be paid with respect to such contract or agreement to cure all monetary defaults under such contract or agreement to the extent required by Section 365(b) of the Bankruptcy Code and otherwise satisfy all requirements imposed by Section 365 of the Bankruptcy Code.

 

“Designated Person” is defined in Section 3.20(b).

 

“Disclosing Party” is defined in Section 5.02.

 

“Disclosure Schedule” means the disclosure schedule delivered by the Company to the Purchaser concurrently with the execution and delivery of this Agreement.

 

“Encumber” means to create or permit to exist an Encumbrance.

 

“Encumbrance” means, with respect to any asset, whether or not registered or registrable or recorded or recordable, and regardless of how created or arising:  a lien, encumbrance, adverse claim, charge, execution, security interest or pledge against such asset, or a subordination to any right or claim of others in respect thereof; a claim or interest against such asset or the owner thereof; an option or other right to acquire any interest in such asset; an interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset; or any other encumbrance of whatsoever nature or kind against such asset, other than, with respect to the Shares, transfer restrictions imposed by federal or state securities laws.

 

“Environmental Claim” means any claim, action, cause of action, suit, proceeding, investigation, order, demand or notice by any Person alleging actual or potential non-compliance or Liability (including for investigatory costs, cleanup costs, governmental response costs, natural resources damages, property damages, personal injuries, attorneys’ fees or penalties) arising out of, based on, resulting from or relating to (i) the presence, or release into the 

 

  

-5-

  

environment, of, or exposure to, any Materials of Environmental Concern, or (ii) circumstances forming the basis of any violation, or alleged violation, of any Environmental Law.

 

“Environmental Laws” means all Legal Requirements and Governmental Authorizations and Permits relating to pollution or protection of human health or the environment (including air, surface water, ground water, land surface or subsurface strata, and natural resources) including Legal Requirements relating to (i) emissions, discharges, releases or threatened releases of, or exposure to, Materials of Environmental Concern, (ii) the manufacture, processing, distribution, use, treatment, generation, storage, containment (whether above ground or underground), disposal, transport or handling of Materials of Environmental Concern, (iii) recordkeeping, notification, disclosure and reporting requirements regarding Materials of Environmental Concern, (iv) endangered or threatened species of fish, wildlife and plant and the management or use of natural resources, (v) the preservation of the environment or mitigation of adverse effects on or to human health or the environment, or (vi) emissions or control of greenhouse gases.

 

“Equity Contribution” means the cash equity investment, to be made immediately following the Purchaser’s acquisition of all of the capital stock of the Bank, by the Purchaser to the Bank in an amount necessary (after giving effect to the Sale) to satisfy the capital requirements set forth in the Consent Order between the Bank and OCC dated as of March 21, 2012, as modified by any order from any Governmental Authority approving the Contemplated Transactions.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

 

“ERISA Affiliate” with respect to an entity means any other entity that, together with such first entity, would be treated as a single employer under Section 414 of the Code.

 

“Excluded Liabilities” is defined in Section 2.04.

 

“FDIC” means the Federal Deposit Insurance Corporation, or any successor thereto.

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any successor thereto.

 

“final, non-appealable” (including, with correlative meaning, the term “final and non-appealable”) means, with respect to any Order or other action of a Governmental Authority, an Order or other action (a) as to which no appeal, notice of appeal, motion to amend or make additional findings of fact, motion to alter or amend judgment, motion for rehearing or motion for new trial has been timely filed or, if any of the foregoing has been timely filed, it has been disposed of in a manner that upholds and affirms the subject Order in all material respects without the possibility for further appeal or rehearing thereon; and (b) as to which the time for instituting or filing an appeal, motion for rehearing or motion for new trial shall have expired, excluding any additional time periods that may begin as a result of Federal Rule 60(b).

 

“GAAP” means generally accepted accounting principles as in effect in the United States.

 

  

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“Governmental Authority” means any federal, state, municipal, county or regional government or governmental or regulatory authority, domestic or foreign, and includes any department, court, commission, bureau, board, administrative agency or regulatory body of any of the foregoing or any non-governmental regulatory body that provides standards for certification.

 

“Governmental Authorization” means any Consent, approval, license, registration, permit or waiver issued, granted, given or otherwise made available by or under the authority of any Governmental Authority or pursuant to any Legal Requirement.

 

“Indemnified Parties” is defined in Section 5.06(a).

 

“Interim Financial Statements” means the consolidated unaudited financial statements of the Bank and its Subsidiaries, consisting of consolidated statements of financial condition as of March 31, 2013 and March 31, 2012, and consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of stockholders’ equity, and consolidated statements of cash flows, each for the three months ended March 31, 2013 and March 31, 2012, true and complete copies of which have previously been provided to the Purchaser prior to the date hereof.

 

“Knowledge” of the Company, or words of similar import, including the Company being aware of a fact or circumstance, means the actual knowledge, after reasonable inquiry, of Lunsford Bridges, Susie Smith, Tom Wray, Debbie Knight, James Stobaugh, John Brower, Cheryl Germaine and Jeff Stevenson.

 

“Leased Properties” is defined in Section 3.11.

 

“Legal Requirement” means, with respect to any Person, any (i) federal, state, local, municipal, foreign, international, multinational or other constitution, law, ordinance, principle of common law, code, rule, regulation, statute, treaty, or administrative pronouncement having the force of law, (ii) Order, or (iii) other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority, in each case, that is binding upon or applicable to such Person, as amended, unless expressly specified otherwise.

 

“Liability” means, with respect to any Person, any liability or obligation of such Person of any kind, character or description, whether known or unknown, absolute or contingent, whether or not accrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise.

 

“Loans” is defined in Section 3.22(a).

 

“March 31 Balance Sheet” means the balance sheet dated March 31, 2013 included in the Interim Financial Statements.

 

“Material Adverse Effect” means (a) any fact, effect, event, change, occurrence or circumstance that, by itself or together with other facts, effects, events, changes, occurrences or circumstances, has had or could reasonably be expected to have, individually or in the aggregate, 

 

  

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a material and adverse effect on (1) the business, regulatory status, any Regulatory Agreement, assets, liabilities (including deposit liabilities), profits, prospects, condition (financial or otherwise) or results of operations of the Bank and its Subsidiaries, taken as a whole, or the Business, taken as a whole, or (2) the ability of the Company or the Bank to timely consummate the transactions contemplated by this Agreement and fulfill its respective obligations hereunder; or (b) any other act or omission that could reasonably be expected to materially impair the ability to operate the Business in the Ordinary Course, including after the Closing; provided, however, that none of the following shall be taken into account in determining whether there has been a “Material Adverse Effect” under (a)(1) or (b):  (i) generally applicable changes after the date hereof in GAAP or applicable regulatory accounting requirements, (ii) changes after the date hereof in laws, rules or regulations of general applicability to companies or banks in the U.S. banking industry, (iii) changes after the date hereof in global, national or regional political conditions or general economic or market conditions (including changes in prevailing interest rates, credit availability and liquidity, currency exchange rates, and price levels or trading volumes in the United States or foreign securities markets) affecting the U.S. banking industry generally and not specifically relating to the Bank or its Subsidiaries, (iv) any outbreak or escalation of hostilities, or declared or undeclared acts of war or terrorism, (v) any changes (in composition, value or otherwise) in the Bank’s investment portfolio that have been made upon consultation with the Purchaser pursuant to Section 5.10 hereof, (vi) with respect to the Bank, any pre-Closing restrictions or conditions imposed on the Bank as of the date of this Agreement pursuant to the Regulatory Agreements to which the Bank is a party as of the date of this Agreement and that have been provided to the Purchaser in writing prior to the date hereof; except, with respect to clauses (i), (ii), (iii) and (iv), to the extent that the effects of such change are disproportionately adverse to the business, regulatory status, any Regulatory Agreement, assets, liabilities (including deposit liabilities), profits, prospects, condition (financial or otherwise) or results of operations of the Bank and its Subsidiaries, taken as a whole, or the Business, taken as a whole, as compared to other banks organized in the United States or any of its States, and (vii) any loss of employees of the Bank or any of its Subsidiaries, or any change to the business, assets, liabilities (including deposit liabilities), profits, prospects, condition (financial or otherwise) or results of operations of the Bank or any of its Subsidiaries directly or indirectly resulting from such loss of employees.

 

“Material Governmental Authorization” is defined in Section 3.03(b)(ii).

 

“Material Permit” is defined in Section 3.03(a).

 

“Materials of Environmental Concern” means chemicals, pollutants, contaminants, toxic or hazardous substances, materials or wastes, petroleum and petroleum products, greenhouse gases, asbestos or asbestos-containing materials or products, polychlorinated biphenyls, lead or lead-based paints or materials, radon, fungus, mold, mycotoxins or other substances having an adverse effect on human health or the environment, but specifically excluding any such substances to the extent used in de minimis quantities and to the extent strictly for household or general office purposes.

 

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

  

-8-

  

“Notice of Sale” means a notice of the sale of the Shares and the Other Purchased Assets and the Sale Hearing.

 

“OCC” means the Office of the Comptroller of the Currency.

 

“OFAC” is defined in Section 3.20(a).

 

“Order” means any order, judgment, decree, decision, ruling, writ, assessment, charge, stipulation, injunction or other determination of any Governmental Authority, or any arbitration award entered into by an arbitrator, in each case having competent jurisdiction to render such.

 

“Ordinary Course of Business” or “in the Ordinary Course” means the conduct of the Business in the same manner in all material respects as the Business was operated on the date of this Agreement, including operations consistent with past practices and in conformance with the Bank’s practices and procedures as of such date.

 

“Other Purchased Assets” is defined in Section 2.01.

 

“Owned Properties” is defined in Section 3.11.

 

“PBGC” is defined in Section 3.10(a).

 

“Permits” means all permits, licenses, registrations, consents, authorizations, approvals, privileges, waivers, exemptions, orders, certificates, rulings, agreements and other concessions from, of or with Governmental Authorities or other regulatory bodies.

 

“Permitted Liens” means (i) liens for current taxes and assessments not yet delinquent or as to which the Bank is diligently contesting in good faith and by appropriate proceeding either the amount thereof or the liability therefor or both and for the payment of which adequate reserves in accordance with GAAP and regulatory accounting principles have been established on the March 31 Balance Sheet; (ii) liens of landlords, carriers, mechanics, materialmen and repairmen incurred in the Ordinary Course of Business consistent with past practice for sums not yet past due, or that are being contested in good faith by appropriate proceedings and for the payment of which adequate reserves in accordance with GAAP and regulatory accounting principles have been established on the March 31 Balance Sheet, or that have been bonded over by a financially sound surety; (iii) zoning restrictions, easements, licenses and other restrictions on the use of real property or any interest therein, or minor irregularities in title thereto, that do not materially impair the use of such property or the merchantability or the value of such property or interest therein; and (iv) liens on assets given to secure advances by a Federal Home Loan Bank or the Federal Reserve discount window, in each case in the Ordinary Course of Business; provided that except in the case of Permitted Liens under clause (iv) above, an Encumbrance in respect of a monetary obligation will not be considered a Permitted Lien if the monetary obligation could reasonably be expected to be greater than $100,000 or the aggregate monetary obligations in respect of all Encumbrances that would otherwise be Permitted Liens could reasonably be expected to exceed $1,000,000.

 

  

-9-

  

“Person” means an individual, legal personal representative, corporation, limited liability company, partnership, firm, trust, trustee, syndicate, joint venture, unincorporated organization or Governmental Authority.

 

“Pre-Closing Tax Period” is defined in Section 5.17.

 

“Premium Cap” is defined in Section 5.06(b).

 

“Proceedings” means any actions, claims, demands, lawsuits, assessments, arbitrations, judgments, awards, decrees, orders, injunctions, prosecutions and investigations, or other proceedings.

 

“Properties” is defined in Section 3.11.

 

“Proprietary Rights” is defined in Section 3.17.

 

“Purchase Price” is defined in Section 2.02.

 

“Purchaser” is defined in the introductory paragraph.

 

“Purchaser Required Approvals” is defined in Section 4.02.

 

“Qualified Plan” is defined in Section 3.10(b).

 

“Real Estate” is defined in Section 3.11.

 

“Recipient Party” is defined in Section 5.02.

 

“Regulatory Agreement” is defined in Section 3.03(b)(vii).

 

“Sale” is defined in the recitals.

 

“Sale Hearing” is defined in Exhibit C.

 

“Sale Motion” means the motion filed by the Company on July 5, 2013 for entry of (i) an order (a) approving bidding procedures, (b) scheduling bidding deadline, auction date, and sale hearing date, and (c) approving the form and notice thereof; and (ii) an order after the sale hearing (a) authorizing the debtor to sell certain assets free and clear, (b) waiving the 14-day stay, and (c) granting related relief.

 

“Sale Order” is defined in the recitals.

 

“SEC” means the U.S. Securities and Exchange Commission, or any successor thereto.

 

“Shares” is defined in the recitals.

 

“Subsidiary” shall have the meaning given such term in Section 2(d) of the BHCA.

 

“Successful Bidder” is defined in Exhibit A.

 

  

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“Tax” or “Taxes” means (i) all federal, state, local and foreign taxes, charges, fees, imposts, levies or other like assessments, including all income, gross receipts, alternative or add-on minimum, capital, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, severance, stamp, occupation, recapture, real and personal property and estimated taxes, customs duties, fees, assessments and charges of any kind whatsoever, together with any interest, penalties, additions to tax or additional amounts imposed by any taxing authority, and (ii) any liability for the payment of any amounts of the type described in clause (i) of another Person as a result of being a member of an affiliated, consolidated, combined or unitary group for any period (including any arrangement for group or consortium tax relief or similar arrangement).

 

“Tax Matter” is defined in Section 5.19.

 

“Tax Refund” means any Tax refunds from any Governmental Authority, including any Bank Tax Refund.

 

“Tax Returns” means all returns, statements, reports, documents, declarations, forms, designations, claims for refund, and other information and filings (including elections, disclosures, schedules and estimates), and any attachments, addenda or amendments thereto (whether or not a payment is required to be made with respect to any such return or other document) relating to Taxes.

 

“Tax Sharing Agreement” is defined in Section 3.07(e).

 

“Transfer Tax Returns” is defined in Section 5.20.

 

“Transfer Taxes” is defined in Section 5.20.

 

"Transition Team" means committee of officers of Purchaser and/or SFNB which have been designated by the Purchaser to review and coordinate the operations of the Bank in accordance with the terms of this Agreement prior to the Closing Date.

 

“Treasury” is defined in Section 3.20(a).

 

“USA PATRIOT Act” is defined in Section 3.20(a).

 

“willful and material breach” is defined in Section 6.04(c).

 

Section 1.02. Interpretation.  For the purposes of this Agreement: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the terms Article, Section, paragraph, Exhibit and Schedule are references to the Articles, Sections, paragraphs, Exhibits and Schedules to this Agreement unless otherwise specified; (c) the terms “hereof,” “herein,” “hereby,” “hereto,” and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto; (d) references to “$” shall mean United States dollars and except where otherwise provided, all monetary amounts in this Agreement are stated and shall be paid in United States dollars; (e) the word “including” and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (f) the word 

 

  

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“or” shall not be exclusive; (g) references to “written” or “in writing” include in electronic form; (h) provisions shall apply, when appropriate, to successive events and transactions; (i) the Company and the Purchaser have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or burdening any party by virtue of the authorship of any of the provisions in this Agreement; (j) a reference to any Person includes such Person’s successors and permitted assigns; (k) any reference to “days” shall mean calendar days unless Business Days are expressly specified; and (l) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded and if the last day of such period is not a Business Day, the period shall end at the close of business on the next succeeding Business Day.

 

Section 1.03. Governing Law.  This Agreement and the agreements contemplated hereby shall be construed and interpreted, and the rights of the parties shall be determined, in accordance with the Bankruptcy Code and the substantive laws of the State of Arkansas, in each case without regard to the conflict of laws principles thereof or of any other jurisdiction.

 

Section 1.04 Irrevocability of Bid.  Pursuant to the terms of the Bidding Procedures Order, this Competing Agreement shall be irrevocable until entry of the Sale Order (irrespective of whether the Purchaser submits a qualifying Initial Overbid or attends the Auction).

ARTICLE 2

Purchase of Shares and Other Assets; Equity Contribution

 

Section 2.01. Purchase and Sale of the Shares and Other Purchased Assets.  Subject to the terms and conditions set forth in this Agreement, and subject to the entry of a Sale Order, (a) the Company agrees to sell, assign and transfer to the Purchaser, free and clear of all Encumbrances, and the Purchaser agrees to purchase from the Company, on the Closing Date, effective as of and from the Closing, all of the Shares and (b) the Company agrees to (or to cause its applicable Affiliates to) sell, assign and transfer to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, free and clear of all Encumbrances, (i) all right, title and interest of the Company to any Bank Tax Refund (and any proceeds of any Bank Tax Refund received or to be received after March 31, 2013), (ii) all of the Contracts of the Company and its Subsidiaries (other than the Bank and its Subsidiaries) that relate to the Business (collectively, the “Bank Related Contracts”) that the Purchaser has identified in accordance with Section 5.05 as Assumed Bank Related Contracts, (iii) all right, title and interest of the Company to any proceeds received or to be received after March 31, 2013 related to any Assumed Bank Related Contract, including any such proceeds from any insurance claims to the extent (but, in the case of insurance claims, only to the extent) related to the Bank or its Subsidiaries or the Business, and (iv) all right, title and interest of the Company to the assets set forth on Schedule 2.01 (the assets identified in clauses (i), (ii), (iii) and (iv) collectively, the “Other Purchased Assets”).

 

Section 2.02. Consideration. The amount payable to the Company for the Shares and the Other Purchased Assets will be Fifty-three Million Six Hundred Thousand Dollars 

 

  

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($53,600,000) (the “Purchase Price”), which shall, subject to the terms and conditions hereof, be payable, as set forth in Section 2.03 below, at the Closing (subject to Section 5.26 (Payment of Broker’s Fees)).  Concurrently with the Closing, the Bank or, if designated by the Purchaser, a Subsidiary of the Bank shall assume the Assumed Contract Liabilities.

 

Section 2.03. Payments.  On the Closing Date, the Purchaser shall (a) pay or cause to be paid the Broker’s Fees pursuant to Section 5.26 and (b) pay the Purchase Price (less the Broker’s Fees) to the Company by wire transfer to an account designated by the Company in writing at least two (2) Business Days prior to the Closing Date.

 

Section 2.04. Equity Contribution.  Immediately following the Purchaser’s acquisition of all of the capital stock of the Bank, the Purchaser shall make the Equity Contribution to the Bank.

 

Section 2.05. Excluded Liabilities.  Notwithstanding anything in this Agreement to the contrary, except as expressly provided in Section 5.06 hereof, neither the Purchaser, the Bank, nor any Affiliate of either of the foregoing shall assume, and shall not be deemed to have assumed or be bound by, any duties, responsibilities, obligations or liabilities of the Company or any of its Affiliates (other than, in the case of the Bank and its Subsidiaries, the duties, responsibilities, obligations or liabilities of the Bank and its Subsidiaries, respectively) of any kind or nature, known, unknown, contingent or otherwise, whether direct or indirect, matured or unmatured, other than, in the case of the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, the Assumed Contract Liabilities (collectively, the “Excluded Liabilities”).

 

ARTICLE 3

Representations and Warranties of the Company

 

Except as set forth in a corresponding section or subsection, as applicable, of the Disclosure Schedule, the Company hereby makes the following representations and warranties to the Purchaser as of the date hereof and as of the Closing Date; provided, that those representations and warranties which address matters only as of a particular earlier date shall have been true and correct only as of such date.

 

Section 3.01. Corporate Status and Authority; Non-contravention.

 

(a) Status of the Company.  The Company is duly organized, validly existing and in good standing under the laws of the State of Arkansas and otherwise has the corporate power and authority to own or lease all of its properties and assets and to conduct its business in the manner in which its business is now being conducted.  The Company is duly registered as a bank holding company under the BHCA.  The Company is duly qualified to do business and is in good standing in each jurisdiction in which its ownership of properties or conduct of business requires such qualification except where the failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(b) Status of Bank.  The Bank is a direct Subsidiary of the Company, is duly organized, validly existing and in good standing under the laws of the United States, is authorized under the laws of the United States to engage in the Business and otherwise has the corporate power and authority to own or lease all of its properties and assets and to conduct the 

 

  

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Business in the manner in which the Business is now being conducted.  The Bank is duly qualified to do business and is in good standing in each jurisdiction in which its ownership of properties or conduct of business requires such qualification except where the failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  The Bank is a national banking association which is duly licensed by the OCC to engage in commercial banking.  The FDIC has not been appointed receiver of the Bank.  Complete and correct copies of the Charter Documents of the Bank, as currently in effect, have prior to the date hereof been delivered to the Purchaser.

 

(c) Status of the Bank’s Subsidiaries.  Each of the Bank’s Subsidiaries is directly or indirectly wholly owned by the Bank, is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, is authorized under the laws of such jurisdiction to engage in the Business that such Subsidiary conducts and otherwise has the corporate power and authority to own or lease all of its properties and assets and to conduct the Business that the Subsidiary conducts in the manner in which the Business that the Subsidiary conducts is now being conducted.  Each of the Bank’s Subsidiaries is duly qualified to do business and is in good standing in each jurisdiction in which its ownership of properties or conduct of business requires such qualification except where the failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(d) Due Authorization.  Except as set forth in Section 3.01(d) of the Disclosure Schedule, (i) the Company has full legal right, corporate power and authority to enter into this Agreement and, subject to the Sale Order, to carry out its obligations hereunder and thereunder, including the consummation of the Sale and the Contemplated Transactions; and (ii) the execution and delivery of this Agreement and, subject to the Sale Order, the completion and performance of the Contemplated Transactions have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement and all documents, instruments and agreements required to be executed and delivered by the Company pursuant to this Agreement have been duly executed and delivered by the Company and, subject to the Sale Order (and assuming due authorization, execution and delivery by the Purchaser), constitute a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their respective terms.  No other corporate proceedings, including any stockholder approvals, are necessary for the execution and delivery by the Company of this Agreement, the performance by it of its obligations hereunder or the consummation by it of the Contemplated Transactions.

 

(e) Non-contravention.  Except as set forth in Section 3.01(e) of the Disclosure Schedule, none of the execution and delivery of this Agreement, the completion and performance of the Contemplated Transactions (subject to the Sale Order), or compliance by the Company with any of the provisions hereof, will (i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or result in the loss of any benefit or creation of any right on the part of any third party under, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of any Encumbrance upon any of the material properties or assets of the Company, the Bank or any other Subsidiary of the Company, under any of the terms, conditions or provisions of (A) the 

 

  

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Charter Documents of the Company, the Bank or any other Subsidiary of the Company or the Bank, or (B) any material note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company, the Bank or any other Subsidiary of the Company or the Bank is a party or by which it may be bound, or to which the Company, the Bank or any other Subsidiary of the Company or the Bank or any of the properties or assets of the Company, the Bank or any other Subsidiary of the Company or the Bank may be subject, or (ii) assuming the Purchaser Required Approvals are duly obtained, violate in any respect any Legal Requirement or any Order applicable to the Company, the Bank or any other Subsidiary of the Company or the Bank or any of their respective properties or assets.

 

(f) At the Closing, the Company will transfer and deliver good and marketable title to the Shares to the Purchaser and to the Other Purchased Assets to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, in each case, free and clear of any Encumbrances.

 

Section 3.02. Capitalization of the Bank.

 

(a) Ownership.  The authorized capital stock of the Bank consists of 800,000 shares of common stock, $0.01 par value per share (the “Common Stock”), of which 640,000 shares of Common Stock are outstanding.  No other shares of capital stock of the Bank are issued or outstanding.  638,800 of the outstanding shares of Common Stock are directly and beneficially owned and held by the Company and all of the outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and non-assessable (except as provided in 12 U.S.C. § 55) with no personal liability attaching to the ownership thereof, have been issued in full compliance with all federal and state securities laws and other Legal Requirements, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and are free and clear of all Encumbrances.  As of the Closing Date, all of the outstanding shares of Common Stock will be directly and beneficially owned and held by the Company.  Section 3.02 of the Disclosure Schedule contains a list of each Person that owns, beneficially or of record, any shares of Common Stock and the number of shares of Common Stock held by each such Person.

 

(b) Outstanding Stock Rights.  Except as set forth in Section 3.02(b) of the Disclosure Schedule, there are no (i) outstanding preemptive rights, subscriptions, options, calls, units, warrants or other rights of any kind or nature to acquire or which relate to any securities of the Bank or its Subsidiaries; (ii) outstanding securities, instruments or obligations that are or may become convertible into or exchangeable or exercisable for any securities of the Bank or its Subsidiaries; (iii) Contracts under which the Company or any of its Subsidiaries or the Bank or any of its Subsidiaries are or may become obligated to sell, issue or otherwise dispose of or redeem, purchase or otherwise acquire any securities of the Bank or its Subsidiaries; (iv) shareholder agreements, voting trusts or other agreements, arrangements or understandings to which the Company or any of its Subsidiaries or the Bank or any of its Subsidiaries is a party or of which the Company is aware, that may affect the exercise of voting or any other rights with respect to the capital stock of the Bank or its Subsidiaries; or (v) outstanding bonds, debentures, notes or other indebtedness having the right to vote on any matters on which the shareholders of the Bank or its Subsidiaries may vote.

 

  

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(c) Bank’s Subsidiaries.  Other than the entities listed on Section 3.02(c) of the Disclosure Schedule, the Bank does not have any Subsidiaries nor own any equity interests in any other Person.  The number of authorized and outstanding shares of capital stock (or other equity interests, as applicable) of each of the Bank’s Subsidiaries is set forth on Section 3.02(c) of the Disclosure Schedule.  No other shares of capital stock of any of the Bank’s Subsidiaries are issued or outstanding.  All of the outstanding shares of the Bank’s Subsidiaries are directly or indirectly beneficially owned and held by the Bank and have been duly authorized and validly issued, are fully paid and non-assessable with no personal liability attaching to the ownership thereof, have been issued in full compliance with all federal and state securities laws and other Legal Requirements, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and are free and clear of all Encumbrances.

 

(d) Ownership of Assets.  Neither the Company nor any of its Subsidiaries (other than the Bank and its Subsidiaries) (i) owns or has any right to use any asset or property (whether real, personal, tangible, intangible or otherwise) used in or held for use in, or related to, the Business or (ii) other than the Bank Related Contracts, is a party to any Contract relating to the Business.  No Subsidiary of the Company (other than the Bank or its Subsidiaries) has or owns any interest in any Tax Refund (or any proceeds of any Tax Refund received or to be received after March 31, 2013) or any proceeds received or to be received after March 31, 2013 related to any Assumed Bank Related Contract (including any proceeds from any insurance claim to the extent related to the Bank or its Subsidiaries or the Business).

 

Section 3.03. Business Operations.

 

(a) Permits.  The Bank and its Subsidiaries hold, and have at all times since January 1, 2008, held, all Permits material to the Business (including all Permits required from the FDIC and the OCC in connection with the Business) (each, a “Material Permit”).  Except as set forth in Section 3.03(a) of the Disclosure Schedule, all of the Material Permits are validly issued, are in full force and effect and are being and have been complied with by the Bank and its Subsidiaries in all material respects.  Except as set forth in Section 3.03(a) of the Disclosure Schedule, no notice of breach or default in respect of any Material Permit has been received by the Bank or its Subsidiaries and there are no proceedings in progress, pending or threatened which would reasonably be expected to result in the cancellation, revocation, suspension or adverse alteration of any of them, and the Company is not aware of any existing matters or state of facts which would reasonably be expected to give rise to any such notice or proceeding.

 

(b) Governmental Authorizations.

 

(i) Each Governmental Authorization that is held by the Bank or its Subsidiaries or that otherwise relates to the Business is valid and in full force and effect.

 

(ii) Except as set forth in Section 3.03(b) of the Disclosure Schedule, the Bank and its Subsidiaries are, and have at all times since January 1, 2008, been, in compliance with all of the terms and requirements of each Governmental Authorization applicable to them that is material to the Business (a “Material Governmental Authorization”).

 

  

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(iii) Except as set forth in Section 3.03(b) of the Disclosure Schedule, no event has occurred or circumstance exists that would or would reasonably be expected to (with or without notice or lapse of time or both) (A) constitute or result directly or indirectly in a material violation of or a failure to comply with any term or requirement of any Material Governmental Authorization, or (B) result directly or indirectly in the revocation, withdrawal, suspension, cancellation or termination of, or any modification to, or would otherwise impair in any way, any Material Governmental Authorization.

 

(iv) Except as set forth in Section 3.03(b) of the Disclosure Schedule, neither the Company nor the Bank (nor any of its Subsidiaries) has received any notice or other communication from any Governmental Authority regarding (A) any actual, alleged, possible or potential violation of or failure to comply with any term or requirement of any Material Governmental Authorization or (B) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination of or modification to any Material Governmental Authorization.

 

(v) All applications required to have been filed for the renewal of the Material Governmental Authorizations have been duly filed on a timely basis with the appropriate Governmental Authorities, and all other filings required to have been made with respect to such Governmental Authorizations have been duly made on a timely basis with the appropriate Governmental Authority, except as has not been and would not reasonably be expected to be material.

 

(vi) There is no authorization, license, approval, consent, order or any other action of, or any registration, declaration, filing or notice with or to any Governmental Authority or court that is required for the execution or delivery by the Company of this Agreement or the validity or enforceability of this Agreement against the Company or, subject to the Sale Order and the receipt of the Purchaser Required Approvals, the completion or performance by the Company of any of the Contemplated Transactions.

 

(vii) Except as set forth in Section 3.03(b)(vii) of the Disclosure Schedule, neither the Bank nor any of its Subsidiaries is subject to any cease-and-desist or other similar order or enforcement action (formal or informal) issued by, nor is any of them a party to any written agreement, consent agreement or memorandum of understanding with, or a party to any commitment letter, troubled condition letter, supervisory letter or similar undertaking to, or subject to any capital directive by, or adopted any board resolutions at the request of, any Governmental Authority (each item in this sentence, whether or not set forth in the Disclosure Schedule, and including any amendment, supplement or modification thereto, a “Regulatory Agreement”), nor has the Bank or any of its Subsidiaries been notified since January 1, 2008, by any Governmental Authority that it is considering issuing, initiating, ordering, or requesting any such Regulatory Agreement, or amending any such Regulatory Agreement.

 

(c) Compliance with Law.  Except as set forth in Section 3.03(c) of the Disclosure Schedule, neither the Company nor any of its Subsidiaries is in material violation of, or has materially violated, and to the Knowledge of the Company neither the Company nor any 

 

  

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of its Subsidiaries is under investigation with respect to or has been threatened to be charged with or given notice of any material violation of, any Legal Requirement.

 

(d) Fiduciary Activities.  The Bank and each of its Subsidiaries has properly administered all accounts for which it acts as a fiduciary, including accounts for which it serves as a trustee, agent, custodian, personal representative, guardian, conservator or investment advisor, in accordance with the terms of the governing documents and applicable law in all material respects.  Except as would not reasonably be expected to be material to the Bank and its Subsidiaries, taken as a whole, none of the Bank, any of its Subsidiaries, or any director, officer or employee of the Bank or of any of its Subsidiaries, has committed any breach of trust or fiduciary duty with respect to any such fiduciary account, and the accountings for each such fiduciary account are true and correct and accurately reflect the assets of such fiduciary account.

 

Section 3.04. Regulatory Reports.

 

(a) Company’s Reports.  The Company has filed or furnished, as applicable, on a timely basis, all forms, filings, registrations, submissions, statements, certifications, reports and documents required to be filed or furnished by it with any Governmental Authority, including any and all federal and state banking authorities, since January 1, 2008 (including any amendments thereto, the “Company’s Reports”).  Each of the Company’s Reports, at the time of its filing or being furnished, complied as to form in all material respects with all Legal Requirements applicable to the Company’s Reports.  As of their respective dates (or, if amended prior to the date hereof, as of the date of such amendment), the Company’s Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading.

 

(b) Bank’s Reports.  The Bank and its Subsidiaries have duly filed with the FDIC, the OCC and any other applicable Governmental Authorities, as the case may be, in correct form in all material respects the reports, returns and filing information data required to be filed under any applicable Legal Requirement, including any and all federal and state banking authorities, and such reports were complete and accurate in all material respects and in compliance in all material respects with the requirements of any applicable Legal Requirement.  As of their respective dates (or, if amended prior to the date hereof, as of the date of such amendment), such reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading.

 

Section 3.05. Deposits.  All of the deposits held by the Bank (including the records and documentation pertaining to such deposits) have been established and are held in compliance in all material respects with (i) all applicable policies, practices and procedures of the Bank, and (ii) all applicable Legal Requirements, including anti-money laundering, anti-terrorism, or embargoed persons requirements.  All of the deposit accounts of the Bank are insured to the maximum limit set by the FDIC and any premiums and assessments required to be paid in connection therewith have been fully paid when due, and no Proceedings for the termination or revocation of such insurance are pending, or, to the Knowledge of the Company, threatened.

 

  

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Section 3.06. Financial Matters.

 

(a) Bank’s Financial Statements.  The Company has prior to the date hereof provided to the Purchaser the Audited Financial Statements and the Interim Financial Statements.  The Audited Financial Statements and the Interim Financial Statements (i) have been prepared from, and are in accordance with, the books and records of the Bank and its Subsidiaries and are true, accurate and complete in all material respects, (ii) have been prepared in accordance with GAAP and regulatory accounting principles consistently applied, except as may be otherwise indicated in the notes thereto and except for the omission of footnotes from the Interim Financial Statements, and (iii) fairly present the consolidated financial position of the Bank and its Subsidiaries as of the respective dates set forth therein and their consolidated results of operations, cash flows and changes in shareholders’ equity, for the respective periods set forth therein, subject, in the case of the Interim Financial Statements, to normal year-end adjustments (none of which will be material).  The consolidated financial statements of the Bank and its Subsidiaries to be prepared after the date of this Agreement and prior to the Closing (A) will be prepared from, and in accordance with, the books and records of the Bank and its Subsidiaries and will be true, accurate and complete in all material respects, (B) will have been prepared in accordance with GAAP and regulatory accounting principles consistently applied, except as may be otherwise indicated in the notes thereto and except for the omission of footnotes, and (C) will fairly present in all material respects the consolidated financial position of the Bank and its Subsidiaries as of the respective dates set forth therein and their consolidated results of operations, cash flows and changes in shareholders’ equity for the respective periods set forth therein, subject, in the case of the interim period financial statements, to normal year-end adjustments (none of which will be material).

 

(b) Call Reports.  The Company has prior to the date hereof provided to the Purchaser true and complete copies of the Call Reports of the Bank for the periods ending December 31, 2012, 2011 and 2010 and March 31, 2013.  The financial statements contained in such Call Reports (i) have been prepared from, and are in accordance with, the books and records of the Bank and its Subsidiaries and are true, accurate and complete in all material respects, (ii) have been prepared in accordance with GAAP and regulatory accounting principles consistently applied, except as may be otherwise indicated in the notes thereto and except for the omission of footnotes, and (iii) fairly present in all material respects the consolidated financial position of the Bank and its Subsidiaries as of the respective dates set forth therein and their consolidated results of operations, cash flows and changes in shareholders’ equity for the respective periods set forth therein, subject, in the case of the interim period financial statements, to normal year-end adjustments (none of which will be material).  The financial statements contained in the Call Reports of the Bank to be prepared after the date of this Agreement and prior to the Closing (A) will be prepared from, and in accordance with, the books and records of the Bank and its Subsidiaries and will be true, accurate and complete in all material respects, (B) will have been prepared in accordance with GAAP and regulatory accounting principles consistently applied, except as may be otherwise indicated in the notes thereto and except for the omission of footnotes, and (C) will fairly present in all material respects the consolidated financial position of the Bank and its Subsidiaries as of the respective dates set forth therein and their consolidated results of operations, cash flows and changes in shareholders’ equity for the respective periods set forth therein, subject, in the case of the interim period financial statements, to normal year-end adjustments (none of which will be material).

 

  

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(c) Systems and Processes.  Except as set forth in Section 3.06(c) of the Disclosure Schedule, the Bank and its Subsidiaries have in place sufficient systems and processes that are customary for a bank of the size and risk profile of the Bank and that (x) provide reasonable assurances regarding the reliability of the Bank’s and its Subsidiaries’ financial statements and (y) in a timely manner accumulate and communicate to the Bank’s and its Subsidiaries’ principal executive officer and principal financial officer the type of information that would be required to be disclosed in the Bank’s and its Subsidiaries’ financial statements.  Neither the Bank or its Subsidiaries nor, to the Company’s Knowledge, any employee, auditor, accountant or representative of the Bank or its Subsidiaries has received or otherwise had or obtained Knowledge of any complaint, allegation, assertion or claim, whether written or oral, regarding the adequacy of such systems and processes or the accuracy or integrity of the Bank’s or its Subsidiaries’ financial statements or accounting practices.  There has been no instance of fraud by the Bank or its Subsidiaries, whether or not material, that occurred during any period since January 1, 2008.

 

(d) Auditor Independence.  Since January 1, 2008, the Company’s and the Bank’s external auditor was independent of the Company and the Bank and their management.  The Company’s and the Bank’s external auditor has not resigned or been dismissed as a result of or in connection with any disagreements with the Company on a matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

 

(e) Books and Records and Internal Controls.

 

(i) The Books and Records have been and are being maintained in the Ordinary Course of Business in accordance and compliance with all applicable accounting requirements and Legal Requirements and are complete in all material respects to reflect action and activities by the Bank and its Subsidiaries.  Neither the Company nor the Bank nor any of their Subsidiaries have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K of the Securities Act of 1933, as amended.

 

(ii) The records, systems, controls, data and information of the Bank and its Subsidiaries are recorded, stored, maintained and operated under means (including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and control of the Bank and its Subsidiaries or any of their accountants (including all means of access thereto and therefrom) in all material respects.  The Bank and its Subsidiaries have established and maintain a system of internal accounting controls designed to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific authorizations and (B) transactions are recorded in conformity with GAAP consistently applied and all Legal Requirements.  Since January 1, 2008, neither the Bank nor its Subsidiaries nor, to the Company’s Knowledge, any director, senior executive officer, auditor, or independent accountant, has received notice or otherwise obtained knowledge of any material weakness regarding the accounting or auditing practices, procedures or methods of the Bank or its Subsidiaries or their respective internal accounting controls.

 

  

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(f) Liabilities.  Neither the Bank nor its Subsidiaries has any Liability, and there is no existing fact, condition, situation or set of circumstances that could reasonably be expected to result in such a Liability, except:  Liabilities to the extent reflected in or provided for on the March 31 Balance Sheet; or Liabilities incurred in the Ordinary Course of Business since March 31, 2013 that are not, individually or in the aggregate, material to the Bank.

 

Section 3.07. Tax Matters.

 

(a) Each of the Bank and its Subsidiaries (or the Company on behalf of the Bank or its Subsidiaries) has filed all federal income Tax Returns and all other material Tax Returns required to be filed by it.  All such Tax Returns were true, correct and complete in all material respects and accurately reflected in all material respects the taxable income (or other measure of Tax) of the Bank and its Subsidiaries.

 

(b) Each of the Company, the Bank and its Subsidiaries (or the Company on behalf of the Bank or its Subsidiaries) has paid all material Taxes required to be paid by the Bank, its Subsidiaries or the consolidated, combined, affiliated, unitary or other Tax group including the Company, the Bank and its Subsidiaries whether or not shown on any material Tax Return.  The Bank and its Subsidiaries have established reserves in accordance with GAAP that are adequate for the payment of all Taxes not yet due and payable with respect to the assets and operations of the Bank and its Subsidiaries.

 

(c) Each of the Bank and its Subsidiaries (or the Company on behalf of the Bank or its Subsidiaries) has withheld and paid to the appropriate taxing authority all material Taxes required to be withheld and paid, including in connection with any amounts owing to any employee, independent contractor, creditor, stockholder or other third party and all Forms W-2 and 1099 and any other forms required with respect thereto have been properly completed and timely filed in all material respects.

 

(d) None of the Company, the Bank or its Subsidiaries has received from any taxing authority written notice of, and, to the Knowledge of the Company, there is not threatened, any audit, claim, action, suit, request for information, ruling, determination, investigation or administrative or judicial Proceeding that is pending or being conducted with respect to material Taxes of the Bank or its Subsidiaries.  None of the Company, the Bank or its Subsidiaries has received from any taxing authority (including in jurisdictions in which the Bank or its Subsidiaries has not filed Tax Returns) written notice of, and, to the Knowledge of the Company, there is not threatened, any proposed assessment, adjustment or deficiency for any amount of material Taxes proposed, asserted, or assessed against the Bank or its Subsidiaries.

 

(e) Neither the Bank nor its Subsidiaries is a party to or bound by any Tax sharing, allocation or indemnification agreement or similar agreement or arrangement other than the Tax Allocation Agreement, dated as of January 1, 2006, by and between the Company and the Bank (the “Tax Sharing Agreement”).

 

(f) Neither the Bank nor its Subsidiaries has, in the past seven (7) years or, to the Knowledge of the Company, prior years, constituted either a “distributing corporation” or a 

 

  

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“controlled corporation” in a distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code.

 

(g) Assuming the Bank is acquired by the Purchaser and the Bank is not merged or consolidated with another entity, neither the Bank nor its Subsidiaries will be required, for income Tax purposes for any taxable period ending after the Closing Date, to include in its taxable income any item of income or gain or to exclude from its taxable income any item of deduction or loss as a result of any (i) change in method of accounting under Section 481(c) of the Code (or any corresponding or similar provision of state, local or foreign law) for a taxable period ending on or prior to the Closing Date, (ii) closing agreement under Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign law) executed on or prior to the Closing Date, (iii) installment sale or open transaction disposition occurring on or prior to the Closing Date, or (iv) prepaid amount received on or prior to the Closing Date.

 

(h) There are no Encumbrances for Taxes on any of the assets of the Bank or its Subsidiaries except for Permitted Liens.

 

(i) No written claim has been received in the last six (6) years by the Company, the Bank or its Subsidiaries from a taxing authority in a jurisdiction where the Bank or its Subsidiaries does not file Tax Returns that the Bank or its Subsidiaries is or may be subject to taxation by that jurisdiction or should have been included in a combined, consolidated, affiliated, unitary or other group Tax Return of that jurisdiction.

 

(j) Neither the Bank nor its Subsidiaries has engaged in any “reportable transactions” within the meaning of Treasury Regulations Section 1.6011-4(b).

 

Section 3.08. Litigation and Claims.  Except as set forth in Section 3.08 of the Disclosure Schedule, there are no current, pending or, to the Knowledge of the Company, threatened Proceedings against or relating to the Bank or its Subsidiaries or the Business or any of the Contemplated Transactions, or that could otherwise materially interfere with or delay any of the Contemplated Transactions.  Except as set forth in Section 3.08 of the Disclosure Schedule, there is no material Order or regulatory restriction imposed upon or relating to the Bank or its Subsidiaries or the Business or any of the Contemplated Transactions, or that could otherwise materially interfere with or delay any of the Contemplated Transactions.

 

Section 3.09. Employees.  Section 3.09 of the Disclosure Schedule sets forth, for (i) each officer and (ii) each other key employee whose annual base compensation equals or exceeds $100,000 of the Bank or its Subsidiaries, such employee’s name, title, hire date, location, whether full- or part-time, whether active or on leave (and, if on leave, the nature of the leave and the expected return date), annual salary or wage rate, most recent annual bonus received and current annual bonus opportunity.  Five (5) days prior to the Closing Date, the Company will provide the Purchaser with a revised version of Section 3.09 of the Disclosure Schedule, updated as of such date.  To the Knowledge of the Company, no (i) officer or (ii) other key employee whose compensation equals or exceeds $100,000 of the Bank or its Subsidiaries has indicated to the Company, the Bank or any of their Subsidiaries that he or she intends to resign or retire as a result of the transactions contemplated by this Agreement or otherwise within one year after the Closing Date.

 

  

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Section 3.10. Employee Benefit Plans; Labor.

 

(a) Section 3.10(a) of the Disclosure Schedule sets forth a complete and correct list of each Benefit Arrangement.  The Company has prior to the date hereof provided to the Purchaser correct and complete copies of (i) each Benefit Arrangement, including all amendments thereto (or, in the case of any such Benefit Arrangement that is unwritten, descriptions thereof), (ii) the most recent annual reports on Form 5500 and accompanying schedules, if any, filed with the Internal Revenue Service with respect to each Benefit Arrangement, (iii) the most recent summary plan description for each Benefit Arrangement for which such summary plan description is required, (iv) each trust agreement and insurance or group annuity contract relating to any Benefit Arrangement, (v) for the past two years, (A) audited financial statements and (B) actuarial valuation reports for each applicable Benefit Arrangement and (vi) all correspondence with the Department of Labor, the Internal Revenue Service and the Pension Benefit Guaranty Corporation (the “PBGC”).

 

(b) Each Benefit Arrangement that is intended to be tax qualified under Section 401(a) of the Code (each, a “Qualified Plan”) and each trust established in connection with any Qualified Plan which is intended to be tax exempt under Section 501(a) of the Code (i) is tax qualified or tax exempt, as applicable, and the Bank has received a determination letter or an opinion letter from the Internal Revenue Service upon which it may rely regarding each such Qualified Plan’s qualified status under the Code, and (ii) to the Company’s Knowledge, no event has occurred since the date of the most recent determination letter or application relating to any such Qualified Plan that would adversely affect the qualification of such Qualified Plan.  The Company has prior to the date hereof provided to the Purchaser a correct and complete copy of the most recent determination letter or opinion letter received with respect to each Qualified Plan, as well as a correct and complete copy of each pending application for a determination letter, if any.

 

(c) Each Benefit Arrangement has been administered in all material respects in accordance with its terms and in compliance with the applicable provisions of ERISA, the Code, all other Legal Requirements and the terms of all applicable collective bargaining agreements (if any).  No events have occurred with respect to any Benefit Arrangement that could result in payment or assessment by or against the Bank or its Subsidiaries of any excise taxes under Sections 4972, 4975, 4976, 4977, 4979, 4980B, 4980D, 4980E or 5000 of the Code.  In addition, with respect to any Benefit Arrangement, no administrative investigation, audit or other Proceedings by the Department of Labor, the PBGC, the Internal Revenue Service or any other Governmental Authority is pending, threatened or in progress.  None of the Company, the Bank or any of the Bank’s Subsidiaries has taken any action to take corrective action or make a filing under any voluntary correction program of the Internal Revenue Service, Department of Labor or any other Governmental Authority with respect to any Benefit Arrangement, and none of the Company, the Bank or any of the Bank’s Subsidiaries has any Knowledge of any plan defect that would qualify for correction under any such program.

 

(d) Except as set forth in Section 3.10(d) of the Disclosure Schedule, with respect to each Benefit Arrangement that is subject to Title IV or Section 302 of ERISA or Section 412 or 4971 of the Code: (i) the applicable minimum funding standards of Sections 412 and 430 of the Code and Sections 302 and 303 of ERISA, whether or not waived, are satisfied 

 

  

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and the Benefit Arrangement is not currently, and is not reasonably expected to be, in “at risk status” within the meaning of Section 430(i) of the Code or Section 303(i) of ERISA; (ii) the fair market value of the assets of such Benefit Arrangements equals or exceeds the actuarial present value of all accrued benefits under such Benefit Arrangements (whether or not vested) on a termination basis; (iii) no reportable event within the meaning of Section 4043(c) of ERISA for which the 30-day notice requirement has not been waived has occurred, and the consummation of the transactions contemplated by this Agreement will not result in the occurrence of any such reportable event; (iv) all premiums to the PBGC have been timely paid in full; (v) no liability (other than for premiums to the PBGC) under Title IV of ERISA has been or is expected to be incurred by the Company, the Bank or any of the Bank’s Subsidiaries; (vi) the PBGC has not instituted proceedings to terminate any such Benefit Arrangement and, to the Company’s Knowledge, no condition exists that presents a risk that such proceedings will be instituted or which would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such Benefit Arrangement and (vii) no written or oral communication has been received from the PBGC concerning the funded status of any such plan or any transfer of assets and liabilities from any such Benefit Arrangement.  In addition, no administrative investigation, audit or other administrative Proceeding by the Department of Labor, the PBGC, the Internal Revenue Service or other Governmental Authority is pending, threatened or in progress with respect to any Benefit Arrangement.

 

(e) Except as set forth in Section 3.10(e) of the Disclosure Schedule, neither the Bank nor any of its ERISA Affiliates contributes to, or has within the preceding six (6) years, contributed to, any Multiemployer Plan or a plan that has two (2) or more contributing sponsors at least two (2) of whom are not under common control, within the meaning of Section 4063 of ERISA.  Neither the Bank nor any of its ERISA Affiliates has, within the preceding six (6) years, withdrawn in a complete or partial withdrawal from any Multiemployer Plan or incurred any liability under Section 4204 of ERISA that has not been satisfied in full.

 

(f) The Bank and its Subsidiaries have no obligation to provide medical, dental or life insurance benefits (whether or not insured) to any employees or former employees of the Bank or its Subsidiaries after retirement or other termination of service (other than (i) coverage mandated by Legal Requirements and (ii) benefits, the full direct cost of which is borne by the employee or former employee (or beneficiary thereof)).

 

(g) There are no collective bargaining agreements binding on the Bank or its Subsidiaries; none of the employees of the Bank or its Subsidiaries is represented by a labor union, and to the Knowledge of the Company, there is no, and since January 1, 2008, has been no, (i) organizational effort made or threatened by or on behalf of any labor organization or trade union to organize any employees of the Bank or its Subsidiaries, or (ii) demand for recognition of any employees of the Bank or its Subsidiaries made by or on behalf of any labor organization or trade unions.

 

(h) There is no, and since January 1, 2008, there has not been, any strike, work stoppage, work slowdown, or lockout pending, or, to the Knowledge of the Company, contemplated or threatened against or involving the Bank or its Subsidiaries.

 

  

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(i) The Company is in compliance, in all material respects, with all applicable Legal Requirements respecting employment and employment practices, including those relating to labor management relations, wages, hours, overtime, employee classification, discrimination, sexual harassment, civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and security, workers compensation, continuation coverage under group health plans, wage payment and the payment and withholding of Taxes.

 

(j) There are no Proceedings pending or, to the Knowledge of the Company, threatened against or affecting the Bank or its Subsidiaries, relating to the alleged material violation of any applicable Legal Requirement pertaining to labor relations or employment matters.

 

(k) Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby, either alone or together with a termination of service, will (i) result in any payment (including severance, golden parachute, forgiveness of indebtedness or otherwise) becoming due under any Benefit Arrangement, whether or not such payment is contingent, (ii) increase any payments or benefits otherwise payable under any Benefit Arrangement, (iii) result in the acceleration of the time of payment, vesting or funding of any benefits, whether or not contingent; or (iv) result in any limitation on the right of the Company, the Bank or any of Bank’s Subsidiaries to amend, merge, terminate or receive a reversion of assets from any Benefit Arrangement or related trust.  There is no agreement, contract or arrangement to which the Company, the Bank or any of the Bank’s Subsidiaries is a party that could, individually or collectively, result in the payment of any amount that would not be deductible by reason of Section 280G of the Code, as determined without regard to Section 280G(b)(4) of the Code.  No Benefit Arrangement provides for the gross-up or reimbursement of Taxes under Section 4999 or 409A of the Code, or otherwise.  Section 3.10(k) of the Disclosure Schedule sets forth (i) the amount of each payment or benefit that could become payable to each employee under a Benefit Arrangement as a result of the transactions contemplated by this Agreement or a termination of employment or service, including as a result of accelerated vesting and (ii) the amount of the “excess parachute payments” within the meaning of Section 280G of the Code that could become payable to each such employee.

 

(l) There has been no amendment to, written interpretation of or announcement (whether or not written) by the Company, the Bank or the Bank’s Subsidiaries relating to, or change in employee participation or coverage under, any Benefit Arrangement that would increase materially the expense of maintaining such plan above the level of expense incurred in respect thereof for the most recent fiscal year ended prior to the date hereof.

 

Section 3.11. Properties and Leases.  The Bank or one of its Subsidiaries (a) has good, valid and marketable title to all the properties and assets reflected in the March 31 Balance Sheet or acquired after the date thereof (except properties sold or otherwise disposed of since the date thereof in the Ordinary Course) (the “Owned Properties”), free and clear from any Encumbrances other than Encumbrances that, (A) (i) would not, and would not reasonably be expected to, individually or in the aggregate, affect the value thereof or interfere with the use made or to be made thereof by the Bank or its Subsidiaries in any material respect or otherwise be material, (ii) do not secure indebtedness for borrowed money and (iii) arose only in the Ordinary Course and (B) in the case of Owned Properties consisting of Real Estate, Permitted Liens, (b) is the lessee of all leasehold estates reflected in the March 31 Balance Sheet or acquired after the date thereof (except for leases that have expired by their terms since the date thereof) (the “Leased Properties” and, collectively with the Owned Properties, the “Properties”; and any Property consisting of real estate or buildings or improvements thereon (“Real Estate”)), free and clear from Encumbrances other than Encumbrances that, (A) (i) would not, and would not reasonably be expected to, individually or in the aggregate, affect the value thereof or interfere with the use made or to be made thereof by the Bank or its Subsidiaries in any material respect or otherwise be material, (ii) do not secure indebtedness for borrowed money and (iii) arose only in the 

 

  

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Ordinary Course and (B) in the case of Leased Properties consisting of Real Estate, Permitted Liens, and is in possession of the properties purported to be leased thereunder, and each such lease is valid without default thereunder by the lessee or, to the Knowledge of the Company, the lessor, and (c) owns or leases all properties and assets as are used by the Bank or its Subsidiaries in the Business or otherwise necessary to their respective operations as now conducted.  The Real Estate is in material compliance with all applicable zoning laws and building codes, and the buildings and improvements located on the Real Estate are in good operating condition and in a state of good working order, ordinary wear and tear excepted.  There are no pending or, to the Knowledge of the Company, threatened condemnation proceedings against any of the Real Estate.  The Bank and its Subsidiaries are in compliance with all applicable health and safety related requirements for the Real Estate, including those under the Americans with Disabilities Act of 1990 and the Occupational Safety and Health Act of 1970.

 

Section 3.12. Absence of Certain Changes.  Except as set forth in Section 3.12 of the Disclosure Schedule, since December 31, 2012, (a) there has not been, and no fact, effect, event, change, occurrence or circumstance has occurred that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and (b) no material default (or event which, with notice or lapse of time, or both, would constitute a material default) exists on the part of the Bank or its Subsidiaries or, to the Knowledge of the Company, on the part of any other party, in the due performance and observance of any term, covenant or condition of any Contract to which the Bank or its Subsidiaries is a party or subject or which otherwise relates to the Business and which is, individually or in the aggregate, material to the financial condition of the Bank and its Subsidiaries.

 

Section 3.13. Commitments and Contracts.

 

(a) Except as set forth in Section 3.13 of the Disclosure Schedule in sections corresponding to the following subsections, there are no Contracts to which the Bank or its Subsidiaries is a party or subject or which otherwise relate to the Business (whether written or oral, express or implied, whether or not the Bank or the Company is party thereto) of the type described below (each Contract disclosed or required to be disclosed, including the Bank Related Contracts, a “Bank Significant Agreement”):

 

(i) any Contract which is or would constitute a “material contract” within the meaning of Item 601(b)(10) of Regulation S-K to be performed in whole or in part after the date of this Agreement;

 

  

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(ii) any Contract with respect to the employment or service of any current directors, officers, employees or consultants of the Bank or its Subsidiaries or of any former director or officer of the Bank or its Subsidiaries whose service as such terminated after December 31, 2010, other than the Bank’s standard form at-will offer letter;

 

(iii) any Contract by the Bank or its Subsidiaries with the Company or any of its Affiliates (other than the Bank or its Subsidiaries);

 

(iv) any Contract by the Bank or its Subsidiaries with any director or officer of the Company or its Affiliates;

 

(v) any Contract which limits or purports to limit the freedom of the Bank or its Subsidiaries (or after Closing would so limit or purport to so limit the Purchaser or any of its Affiliates) to compete in any line of business or with any Person or in any area, or to solicit the business of any Person or category of Persons;

 

(vi) any Contract with a Governmental Authority;

 

(vii) any Contract which (A) grants any person a right of first refusal, right of first offer or similar right with respect to any material properties, assets or businesses of the Bank or its Subsidiaries; (B) limits or purports to limit the ability of the Bank or its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any assets or business the Bank or its Subsidiaries owns, or (C) contains a “most favored nation” clause or similar term providing preferential pricing to a party (other than the Bank or its Subsidiaries) that is material to the Bank or its Subsidiaries or grants to any Person (other than the Bank or its Subsidiaries) any exclusivity rights;

 

(viii) any partnership, joint venture, limited liability company, operating, shareholder, investors rights or other similar agreement or arrangement;

 

(ix) any lease or sublease (A) of personal property providing for aggregate rentals of $10,000 or more or (B) of Real Estate;

 

(x) any indenture, deed of trust, loan agreement or other financing agreement or instrument to which the Bank or any of its Subsidiaries is an obligor or guarantor;

 

(xi) any Contract relating to the acquisition or disposition of any material business or material assets or liabilities (whether by merger, sale of stock or assets or otherwise), which acquisition or disposition is not yet complete or where such contract contains continuing material obligations, including continuing material indemnity obligations, of the Bank or its Subsidiaries;

 

(xii) any agreement or series of related agreements for the purchase, sale, receipt, lease, license or use of materials, supplies, goods, services, Proprietary Rights, equipment or other assets providing for aggregate payments by or to the Bank and its Subsidiaries of $100,000 or more annually or $200,000 or more in aggregate;

 

  

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(xiii) any participation, loan purchase or similar agreement pursuant to which the Bank or its Subsidiaries has (A) acquired an interest in the indebtedness of any third party or (B) sold an interest in the indebtedness of any third party;

 

(xiv) any agreement (including any keepwell agreement, other than the Company’s source of strength obligations pursuant to the Federal Reserve Board’s Regulation Y) under which (A) any Person has directly or indirectly guaranteed any liabilities or obligations of the Bank or its Subsidiaries or (B) the Bank or its Subsidiaries has, directly or indirectly, guaranteed any liabilities or obligations of any other Person (other than letters of credit entered into in the Ordinary Course, including for the avoidance of doubt with customary terms); and

 

(xv) any Bank Related Contract.

 

(b) Prior to the date hereof, the Company has provided (by hard copy or electronic data room access) to Purchaser or its representatives true, correct and complete copies, including all amendments, purchase orders and statements of work (as applicable), of each of the Bank Significant Agreements.  (i) Each of the Bank Significant Agreements has been duly and validly authorized, executed and delivered by the Bank or its Subsidiaries and is binding on the Bank or its Subsidiaries, as applicable, and, to the Company’s Knowledge, each other party thereto, and in full force and effect; (ii) the Bank and its Subsidiaries are in all material respects in compliance with and have in all material respects performed all obligations required to be performed by any of them under each Bank Significant Agreement; (iii) the Bank and its Subsidiaries have not received any notice to terminate, in whole or part, or notice of any material violation or default (or any condition which with the passage of time or the giving of notice or both would cause such a violation or default) by any party under any Bank Significant Agreement; and (iv) no other party to any Bank Significant Agreement is, to the Knowledge of the Company, in default or violation in any respect thereunder.

 

Section 3.14. Risk Management Instruments.  All derivative instruments of the Bank and its Subsidiaries, including swaps, caps, floors and option agreements, whether entered into for the Bank’s or its Subsidiaries’ own account or for the account of a customer of the Bank, were entered into (a) only in the Ordinary Course of Business and consistent with past practice, (b) in accordance with all applicable Legal Requirements and regulatory policies and in accordance with prudent practices, and (c) with counterparties believed to be financially responsible at the time; and each of them constitutes the valid and legally binding obligation of the Bank or one of its Subsidiaries and is enforceable against the Bank or one of its Subsidiaries, as applicable, and, to the Knowledge of the Company, the other parties thereto (except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general applicability relating to or affecting creditors’ rights or by general equity principles) in accordance with its terms.  Neither the Bank nor its Subsidiaries, nor any other party thereto, is in breach of any of its material obligations under any such agreement or arrangement.

 

  

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Section 3.15. Environmental Matters.

 

(a) The Bank and its Subsidiaries are and have since January 1, 2008, been in compliance in all material respects with all Environmental Laws.  None of the Bank, the Bank’s Subsidiaries nor the Company has received any communication from any Person that alleges that the Bank or any of its Subsidiaries is not in compliance with or is subject to any Liability under any Environmental Laws and, to the Knowledge of the Company, there are no circumstances that would reasonably be expected to prevent or interfere with such compliance or give rise to such Liability in the future.

 

(b) There is no Environmental Claim pending or, to the Knowledge of the Company, threatened, nor are there any circumstances that would reasonably be expected to form the basis for any Environmental Claim, against the Bank or its Subsidiaries or against any person or entity whose liability for any Environmental Claim the Bank or any of its Subsidiaries has indemnified, retained or assumed by contract or by operation of law.

 

(c) The Company has provided to Purchaser all assessments, reports, data, results of investigations or audits, and other information that is in the possession or control of or reasonably available to the Company or the Bank or its Subsidiaries regarding any Materials of Environmental Concern, Environmental Law, Environmental Claim or other environmental matters pertaining to, or the environmental condition of, any properties currently or previously owned, leased or operated by the Bank or its Subsidiaries, including but not limited to corporate offices or branch locations or properties acquired through foreclosure, granting of a deed in lieu of foreclosure or similar transfer of title or possession, or the compliance (or noncompliance) by or Liability of the Bank or its Subsidiaries under any Environmental Laws.

 

(d) Except as would not reasonably be expected to give rise to any Liability of the Bank or its Subsidiaries, no Materials of Environmental Concern have been discharged, disposed of, spilled, leaked or otherwise released at, on, to, from or under any property now or previously owned, leased or operated by the Bank or its Subsidiaries or any of their respective predecessors (including, to the Knowledge of the Company, any such properties acquired through foreclosure, granting of a deed in lieu of foreclosure or similar transfer of title or possession).

 

(e) Neither the Bank nor any of its Subsidiaries is required by any Environmental Law or by virtue of the transactions set forth herein and contemplated hereby, or as a condition to the effectiveness of any transactions contemplated hereby, (i) to perform a site assessment for Materials of Environmental Concern, (ii) to remove or remediate Materials of Environmental Concern, (iii) to give notice to, make any filings with or receive approval from any Governmental Authority regarding environmental matters, other than a supervising bankruptcy court with jurisdiction over the pending transaction, or (iv) to record or deliver to any Person any disclosure document or statement pertaining to environmental matters.

 

Section 3.16. Insurance.  The Bank and its Subsidiaries maintain insurance underwritten by insurers of recognized financial responsibility, of the types and in the amounts that the Bank and its Subsidiaries reasonably believe are adequate for its business, prudent and consistent with industry practice, including, but not limited to, insurance covering all real and personal property 

 

  

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owned by or leased by the Bank or its Subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, with such deductibles as are customary for companies in the same or similar business.  The Company has furnished to the Purchaser prior to the date hereof true and complete copies of all insurance policies and fidelity bonds relating to the assets, business, operations, employees, officers or directors of the Bank and its Subsidiaries, whether or not the Bank or its Subsidiaries are party to such insurance policies or fidelity bonds.  There is no claim by the Bank or its Subsidiaries pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds or in respect of which such underwriters have reserved their rights.  All premiums payable under all such policies and bonds have been timely paid and the Company, the Bank and its Subsidiaries have otherwise in all material respects complied fully with the terms and conditions of all such policies and bonds.  Such policies of insurance and bonds (or other policies and bonds providing substantially similar insurance coverage) have been in effect since at least January 1, 2006, and remain in full force and effect.  The Company has no Knowledge of any threatened termination of, premium increase with respect to, or material alteration of coverage under, any of such policies or bonds.  The Bank and its Subsidiaries shall after the Closing continue to have coverage under such policies and bonds with respect to events occurring prior to the Closing, and such coverage will not be affected by any claims by the Company or any of its Subsidiaries other than the Bank and its Subsidiaries.

 

Section 3.17. Intellectual Property.  The Bank and its Subsidiaries own, are licensed to use or otherwise possess legally enforceable rights to use all patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets, applications and other unpatented or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names, domain names, the goodwill associated with the foregoing and registrations of, and applications to register, the foregoing, and extensions, modifications or renewals of such registrations or applications, and all other intellectual property rights (collectively, “Proprietary Rights”) that are material to the Business and used in or necessary for the conduct of the Business as currently conducted.  The Bank and its Subsidiaries have the right to use all material Proprietary Rights owned or licensed by the Bank or used in the conduct of the Business as currently conducted without infringing, misappropriating or otherwise violating the Proprietary Rights of any third party, and neither the Bank, its Subsidiaries nor the conduct of the Business has infringed, misappropriated or otherwise violated any such Proprietary Rights in any material respect.  To the Company’s Knowledge, no Person is infringing, misappropriating or otherwise violating any of the Proprietary Rights of the Bank or its Subsidiaries, except where such infringement, misappropriation or other violation, or the lack of a right to use such Proprietary Rights, would not have any Material Adverse Effect on the Bank or its Subsidiaries.  No charges, claims, allegations, or litigation have been asserted or, to the Company’s Knowledge, threatened against the Bank or its Subsidiaries (i) contesting the right of the Bank or its Subsidiaries to use, or the validity of, any of the Proprietary Rights used in the conduct of the Business as currently conducted, (ii) challenging or questioning the validity or effectiveness of any license or agreement pertaining thereto or asserting the misuse thereof, or (iii) claiming that the Bank, its Subsidiaries or the conduct of the Business infringes, misappropriates or otherwise violates any Proprietary Rights of any Person, and, to the 

 

  

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Company’s Knowledge, no valid basis exists for the assertion of any such charge, claim, allegation or litigation.  All licenses and other agreements to which the Bank or its Subsidiaries is a party relating to Proprietary Rights are in full force and effect and constitute valid, binding and enforceable obligations of the Bank and, to the Company’s Knowledge, each other party thereto, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles, as the case may be, and there have not been and there currently are not any defaults (or any event which, with notice or lapse of time or both, would constitute a default) by the Bank or, to the Company’s Knowledge, any other party thereto under any license or other agreement affecting Proprietary Rights used in the conduct of the Business as currently conducted, except for defaults, if any, which would not have any material impact on the Bank or its Subsidiaries.  The validity, continuation and effectiveness of all licenses and other agreements relating to the Proprietary Rights used in the conduct of Business as currently conducted and the current terms thereof will not be affected by the transactions contemplated by this Agreement.

 

Section 3.18. Related Party Transactions.

 

(a) Except as set forth in Section 3.18(a) of the Disclosure Schedule or as part of the normal and customary terms of an individual’s employment or service as a director, neither the Bank nor its Subsidiaries is now or has since January 1, 2008, been involved, directly or indirectly, in any business arrangement or other relationship (as debtor, creditor, guarantor or otherwise), Contract for goods or services, lease or other transaction or agreement with (x) the Company or any of its Affiliates (other than the Bank or its Subsidiaries), any director or officer of the Company or any of its Affiliates (including the Bank and its Subsidiaries), any stockholder owning 5% or more of the outstanding Common Stock of the Company or, to the Knowledge of the Company, any Affiliate or “associate” or member of the “immediate family” (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Securities Exchange Act of 1934) of any such director, officer or stockholder, or (y) to the Knowledge of the Company, and other than credit and consumer banking transactions in the Ordinary Course of Business, any employee of the Company or any of its Affiliates (including the Bank and its Subsidiaries) who is not an officer, or any Affiliate, or “associate” or member of the “immediate family” of any such employee.

 

(b) The Bank is in compliance with Sections 23A and 23B of the Federal Reserve Act and its implementing regulations, and all extensions of credit by the Bank to any “executive officer,” “director,” “principal shareholder” or “related interest” of any of the foregoing (as such terms are defined in the Federal Reserve Board’s Regulation O) of the Bank or the Company have been made in compliance with the Federal Reserve Board’s Regulation O and the Company has not been advised that, and has no reason to believe that, any facts or circumstances exist that would cause the Bank, or any extensions of credit by the Bank, not to be so compliant.

 

Section 3.19. Community Reinvestment Act and Consumer Compliance.  The Company has no Knowledge of, has not been advised of, and has no reason to believe that any facts or circumstances exist that would cause the Bank or its Subsidiaries: (1) to be deemed not to be in satisfactory compliance in any material respect with the Community Reinvestment Act (“CRA”) or to be assigned a rating for CRA purposes by federal or state bank regulators of lower than “satisfactory” or (2) to be deemed not to be in satisfactory compliance in any material respect with the federal fair lending laws and regulations or other applicable federal or state consumer 

 

  

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protection laws and regulations applicable to any of the activities of the Bank and its Subsidiaries.

 

Section 3.20. Anti-money Laundering.

 

(a) Neither the Bank nor any of its Subsidiaries has, since January 1, 2008, violated in any material respect, and the Company has no Knowledge of, has not been advised of, and has no reason to believe that: (1) any facts or circumstances exist that would cause the Bank or its Subsidiaries to be operating in violation in any material respect of (a) the Bank Secrecy Act or the USA PATRIOT Act of 2001 (the “USA PATRIOT Act”), or the regulations implementing those statutes, or regulatory guidance with respect thereto, that the U.S. Department of the Treasury (“Treasury”) or the OCC has issued, (b) any regulation or order or regulatory guidance with respect to economic and trade sanctions issued by Treasury’s Office of Foreign Assets Control (“OFAC”), or (c) any other applicable anti-money laundering or economic or trade sanction statute, rule, regulation, order or regulatory guidance; or (2) the Bank or its Subsidiaries is under investigation with respect to or has been threatened to be charged with or given notice of, or is or may be subject to a Regulatory Agreement relating to, any violation of or noncompliance with any of the foregoing.  The Company has no Knowledge of, has not been advised of, and has no reason to believe that any facts or circumstances exist that would cause there to be any material deficiencies in its compliance risk management program with respect to the Bank Secrecy Act or the USA PATRIOT Act or any rules, regulations or regulatory guidance issued thereunder or any regulations or orders with respect to the trade or economic sanctions issued by OFAC.  The Bank’s Board of Directors has adopted and implemented a compliance program that complies in all material respects with all the requirements of the Bank Secrecy Act, the USA PATRIOT Act, and any other applicable anti-money laundering or economic or trade sanction statutes, rules, regulations, orders or regulatory guidance issued by Treasury, OFAC or the OCC.

 

(b) Neither the Company nor the Bank has material operations in an Affected Jurisdiction.  No director or 10% or greater shareholder of the Company or the Bank is a Person that is included in the listing of designated persons and entities maintained by the Office of the Superintendent of Financial Institutions Canada (a “Designated Person”).  To the Company’s Knowledge, the Contemplated Transactions do not involve the payment or receipt of any amount by or on behalf of the Purchaser to or from a Designated Person or a Person that is controlled by a Designated Person.  The Contemplated Transactions will not violate in any material respect any Canadian laws relating to economic sanctions and anti-terrorism, including the Criminal Code (Canada), the Freezing Assets of Corrupt Foreign Officials Act (Canada), the Special Economic Measures Act (Canada) and the United Nations Act (Canada), and the regulations, orders and guidelines issued under such statutes, including any statute, regulation, order, rule or guideline that amends, supplements or supersedes any of them, including those currently that relate to Burma, Belarus, Côte d’Ivoire, Democratic People’s Republic of Korea, Democratic Republic of the Congo, Egypt, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, Sierra Leone, Somalia, Sudan, Syria, Tunisia and Zimbabwe (each an “Affected Jurisdiction”) and Al Qaida and the Taliban (collectively, “Canadian Sanctions”), and each of the Company and the Bank agrees to provide the Purchaser with any and all additional information reasonably requested by the Purchaser to confirm whether or not the Contemplated Transactions will violate any Canadian Sanctions.

 

  

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Section 3.21. Customer Information Security.  Since January 1, 2008, to the Company’s Knowledge, there has been no unauthorized disclosure of, or access to any non-public personal information of a customer of the Bank or its Subsidiaries that could result in substantial harm or inconvenience to such customer.  The Bank and its Subsidiaries are and have been since January 1, 2008, in material compliance with, and the Company has no Knowledge of, has not been advised of, and has no reason to believe that any facts or circumstances exist that would cause the Bank or its Subsidiaries to be deemed not to be in satisfactory compliance in any material respect with, the applicable privacy of customer information requirements contained in any federal and state privacy laws and regulations, including in Title V of the Gramm-Leach-Bliley Act of 1999 and regulations promulgated thereunder, as well as the provisions of any information security program adopted by the Bank pursuant to 12 C.F.R. Part 364.

 

Section 3.22. Loan Portfolio.

 

(a) Section 3.22(a)(1) of the Disclosure Schedule sets forth (i) the aggregate outstanding principal amount, as of May 31, 2013 of all loan agreements, notes or borrowing arrangements (including leases, credit enhancements and participations) payable to the Bank or its Subsidiaries (collectively, the “Loans”), other than “non-accrual” Loans, and (ii) separately, the aggregate outstanding principal amount, as of the date hereof, of all “non-accrual” Loans.  Except as listed on Section 3.22(a)(2) of the Disclosure Schedule, as of the date hereof, neither the Bank nor its Subsidiaries had any outstanding Loan or asset classified as “Other Real Estate Owned” or that was designated internally by the Bank or its Subsidiaries (or, to the Company’s Knowledge, by a Governmental Authority in an examination report or directive) as “special mention,” “substandard,” “doubtful,” “loss” or words of similar import (any of the foregoing Loans or assets, “Criticized Assets”).  Section 3.22(a)(3) of the Disclosure Schedule sets forth (x) a summary of Criticized Assets as of the date hereof, by category of Loan (e.g., commercial and consumer), together with the aggregate principal amount of such Loans by category and (y) each asset of the Bank or its Subsidiaries that, as of the date hereof, is so classified.  The Bank or its Subsidiaries, as applicable, has good, valid and marketable title to all properties and assets reflected in Section 3.22(a)(2) of the Disclosure Schedule that are classified as “Other Real Estate Owned,” free and clear from Encumbrances and any material obligations that would affect the value or transferability thereof.  The information (including electronic information and information contained on tapes and computer disks and the information set forth on Section 3.22(a) of the Disclosure Schedule referenced in this Section 3.22) with respect to the Loans and Criticized Assets made available to the Purchaser by the Company is, as of the respective dates indicated therein, true and complete in all material respects.

 

(b) Each Loan (i) is evidenced by notes, agreements or other evidences of indebtedness which are true, genuine and what they purport to be, (ii) to the extent purported to be secured, has been secured by valid liens and security interests which have been perfected and (iii) is the legal, valid and binding obligation of the obligor named therein, enforceable in accordance with its terms (except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity).  Neither the Bank nor its Subsidiaries administers or services, or has in the past administered or serviced, any loan, note or borrowing not originated and owned by the Bank.  No Loans have been originated by the Bank’s Subsidiaries.  All Loans originated by the Bank were made and are administered or serviced, as applicable, in accordance with customary 

 

  

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lending standards of the Bank.  All such Loans (and any related guarantees) and payments due thereunder are, and on the Closing Date will be, free and clear of any Encumbrance, and each of the Bank and its Subsidiaries has complied in all material respects, and on the Closing Date will have complied in all material respects, with all applicable loan policies and procedures of the Bank and applicable laws and regulations relating to such Loans, including any applicable laws and regulations with respect to documentation in connection with the origination, processing, underwriting (including credit approval), purchase and servicing of mortgage Loans, real estate settlement procedures, consumer protection, truth in lending, fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages, and the terms and provisions of any mortgage or other collateral documents and other loan documents with respect to such Loans.

 

(c) Except as set forth in Section 3.22(c)(i) of the Disclosure Schedule, neither the Bank nor its Subsidiaries has purchased or sold any Loans or advances or any participations therein that are currently outstanding.  Except as set forth in Section 3.22(c)(ii) of the Disclosure Schedule, neither the Bank nor its Subsidiaries has, at any time since January 1, 2006, sold any assets of the Bank or its Subsidiaries with recourse of any kind to the Bank or its Subsidiaries, as applicable, or entered into any agreement providing for the sale or servicing of any Loan or other asset which constitutes a “recourse arrangement” under applicable regulation or policy promulgated by a Governmental Authority except, in each case, where neither the Bank nor its Subsidiaries has any ongoing liability or exposure.  Except as set forth in Section 3.22(c)(iii) of the Disclosure Schedule, neither the Bank nor its Subsidiaries has received a request to repurchase any Loan or advance or participation therein, or any other asset, sold to a third party, nor has the Bank or its Subsidiaries been advised by any third-party purchaser of any Loan or advance or participation therein, or any other asset, that such purchaser intends to request that the Bank or its Subsidiaries repurchase such Loan or advance or participation therein, or other asset, and there is no basis for any of the foregoing.

 

(d) The Bank is not now, nor has it since January 1, 2008 been, subject to any fine, suspension, settlement or other agreement or other administrative agreement or sanction by, or any reduction in any loan purchase commitment from, the Department of Housing and Urban Development, the Government National Mortgage Association, the Department of Veterans Affairs, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation or any federal or state agency relating to the origination, sale or servicing of mortgage or consumer Loans.

 

(e) There is no pending or, to the Knowledge of the Company, threatened litigation with respect to any Loan which could adversely affect the rights of the Bank to enforce such Loan or the Bank’s rights with respect to any related property.

 

(f) Notwithstanding anything to the contrary in this Agreement, the Company makes no representation or warranty as to the sufficiency of collateral securing or the collectibility of the Loans.

 

Section 3.23. Brokers or Finders.  Except for the Broker’s Fees set forth in Section 3.23 of the Disclosure Schedule, neither the Bank nor any of its Subsidiaries, nor any of their representatives, has incurred or will incur any Liability for brokerage or finders’ fees or agents’ 

 

  

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commissions or other similar payments (or any expenses in connection therewith) in connection with the Contemplated Transactions, and any such fees, commissions or other payments due in connection with the transactions contemplated hereby are solely Liabilities of the Company (not including the Bank or its Subsidiaries).

 

Section 3.24. Investment Securities.  The Bank and its Subsidiaries have good title to all securities and commodities owned by them (except those sold under repurchase agreements), free and clear of any Encumbrances, except to the extent that such securities or commodities are pledged in the Ordinary Course to secure obligations of the Bank or its Subsidiaries.  Such securities and commodities are valued on the books of the Bank in accordance with GAAP in all material respects.

 

Section 3.25. No Other Representations and Warranties.  Except for the specific representations and warranties contained in this Agreement, neither the Company nor any of its agents, Affiliates or representatives, nor any other Person, makes or shall be deemed to make any representation or warranty to the Purchaser, express or implied, at law or in equity.  The Purchaser specifically disclaims that it is relying upon or has relied upon any such other representations or warranties.

 

ARTICLE 4

Representations and Warranties of the Purchaser

 

The Purchaser hereby makes the following representations and warranties to the Company as of the date hereof and as of the Closing Date; provided, that those representations and warranties which address matters only as of a particular earlier date shall have been true and correct only as of such date.

 

Section 4.01. Corporate Status and Authority; Non-contravention.

 

(a) Status of the Purchaser.  The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of Arkansas, is registered with the Board of Governors of the Federal Reserve System as a financial holding company, and has the power to own its property and conduct its business in the manner in which such business is now being conducted and has full power and capacity to enter into this Agreement, carry out the Contemplated Transactions to which it is a party, and duly observe and perform all of its obligations contained in this Agreement.

 

(b) Due Authorization.  The execution and delivery of this Agreement and the completion and performance of the transactions and obligations contemplated by or contained in this Agreement have been duly authorized by all necessary organizational or corporate action on the part of the Purchaser, as applicable, and this Agreement has been duly executed and delivered by the Purchaser and (assuming due authorization, execution and delivery by the Company) constitutes a legal, valid and binding obligation of the Purchaser and, subject to the approval of the Bankruptcy Court, is enforceable in accordance with its terms.

 

(c) Non-contravention.  Neither the execution and delivery of this Agreement nor the completion and performance of the Contemplated Transactions will (i) contravene any of the provisions of the Charter Documents of the Purchaser, or (ii) result in a material breach of or 

 

  

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material default under, or contravene, any material indenture, contract, agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound.

 

Section 4.02. Governmental Authorizations.  Subject to entry of the Sale Order, and except for the filing of applications and notices with, and the receipt of consents, authorizations, approvals, exemptions or non-objections from, as applicable, the Governmental Authorities set forth on Schedule 4.02 (the “Purchaser Required Approvals”), no consents or approvals of or filings or registrations with any Governmental Authority are necessary on the part of the Purchaser or its Affiliates in connection with the execution and delivery by the Purchaser of this Agreement and the consummation by the Purchaser of the Contemplated Transactions.  As of the date of this Agreement, the Purchaser knows of no reason relating specifically to the Purchaser why any of the Purchaser Required Approvals will not be obtained.

 

Section 4.03. Investment Intent.  The Purchaser is acquiring the Shares for its own account and not with the view toward distribution within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended, other than in compliance with all applicable Legal Requirements, including United States federal securities laws.

 

Section 4.04. Proof of Financial Ability To Perform; Sufficient Funds.  The Purchaser has provided to the Company true and correct copies of Purchaser's SEC Form 10-K containing its audited financial statements for the year ended December 31, 2012, the Purchaser's SEC Form 10-Q for the period ended June 30, 2013 containing the Purchaser's unaudited financial statements or the period ended June 30, 2013 and the Consolidated Reports of Condition and Income (Call Report) of SFNB for the period ended June 30, 2013.  As of the Closing Date, the Purchaser shall have sufficient funds to pay the Purchase Price and effect the Equity Contribution.

Section 4.05. No Other Representations and Warranties.  Except for the specific representations and warranties contained in this Agreement, neither the Purchaser nor any of its agents, Affiliates or representatives, nor any other Person, makes or shall be deemed to make any representation or warranty to the Company, express or implied, at law or in equity.  The Company specifically disclaims that it is relying upon or has relied upon any such other representations or warranties.

 

ARTICLE 5

Pre-closing Matters and Other Covenants

 

Section 5.01. Operations Until Closing.  Except as expressly otherwise provided in this Agreement or as may be otherwise expressly required by any Governmental Authority having jurisdiction over the Bank or the Company, including the Bankruptcy Court, except with the prior written consent of the Purchaser through the Transition Team, from the date of this Agreement to the Closing:

 

(a) Conduct of Business.  The Company shall cause the Bank and its Subsidiaries to:  (i) carry on and conduct the Business in all material respects in the Ordinary Course consistent with past practice; (ii) use commercially reasonable efforts to maintain and preserve intact its business organization and advantageous business relationships, including with 

 

  

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customers, suppliers and employees, and retain the services of its key officers and employees; (iii) take no action that is intended to or would reasonably be expected to adversely affect or materially delay the ability of the Company, the Bank or the Purchaser to obtain any necessary approvals of any Governmental Authority required for the Contemplated Transactions or to perform its covenants and agreements under this Agreement or to consummate the Contemplated Transactions; and (iv) maintain its Books and Records in the usual, regular and ordinary manner.

 

(b) Bank Forbearances.  The Company shall not, to the extent relating to or impacting the Bank or its Subsidiaries, and shall cause the Bank and its Subsidiaries not to, and, in the case of clause (iv) below, shall cause the directors of the Bank not to, in each case except with the prior written consent of the Purchaser:

 

(i) enter into any new line of business or materially change its lending, investment, underwriting, risk and asset liability management, and other banking and operating policies, except as required by any applicable Legal Requirement or policies imposed by any Governmental Authority, or fail to operate in accordance with such policies;

 

(ii) make any capital expenditures in excess of $50,000 individually or $100,000 in the aggregate, other than as required pursuant to Contracts already entered into and disclosed in Section 5.01(b) of the Disclosure Schedule;

 

(iii) terminate, enter into, amend, modify, waive any material provision of or renew any Bank Significant Agreement or Permit (other than renewals in the Ordinary Course) other than the Tax Sharing Agreement, which shall be terminated prior to the Closing in accordance with Section 5.15;

 

(iv) adjust, split, combine or reclassify the Bank’s or its Subsidiaries’ stock, sell, transfer, mortgage, Encumber or otherwise dispose of any shares of the Bank’s stock beneficially owned by the Company, or permit any third party to sell, transfer, mortgage, Encumber or otherwise dispose of any shares of the Bank’s stock beneficially owned by such third party, or issue, sell or otherwise permit to become outstanding, or dispose of or Encumber or pledge or authorize or propose the creation of, any additional shares of the Bank’s or its Subsidiaries’ stock or any securities convertible into or exchangeable for such stock or any options or other rights, grants or awards with respect to the Bank’s or its Subsidiaries’ stock;

 

(v) make, declare, pay or set aside for payment any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of any shares of its capital stock or redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any shares of its capital stock;

 

(vi) sell, transfer, mortgage, Encumber or otherwise dispose of or discontinue any of its assets, deposits, businesses or properties, except for sales, transfers, mortgages, Encumbrances or other dispositions or discontinuances in the Ordinary Course of Business consistent with past practice and in a transaction that individually or taken together with all other such transactions is not material to the Bank or its 

 

  

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Subsidiaries (and in any event not to exceed $500,000 individually or $3,000,000 in the aggregate);

 

(vii) incur any indebtedness for borrowed money or issue any debt securities or assume, guarantee or endorse, or otherwise become responsible for the obligations of, any other Person; provided that the Bank may continue to borrow money from the Federal Home Loan Bank System, the Federal Reserve or any other Governmental Authority in a manner (including amounts) consistent with past practice;

 

(viii) except as set forth in Section 5.01(b)(viii) of the Disclosure Schedule, make, renew, amend or modify any extension of credit or participation therein, individually or in the aggregate with other extensions of credit or participations therein to the same relationship, in excess of $1,000,000 (however, in the case of criticized assets, such amount shall not exceed $500,000); provided, however, that the Bank may make an extension of credit in the Ordinary Course of Business in connection with the sale of an asset classified as “Other Real Estate Owned” if said extension of credit is not in excess of $250,000.  With respect to this clause (viii), the Purchaser agrees that it will through the Transition Team either give or deny any requested consent no later than three (3) Business Days after the Transition Team has received a written request therefor (which request shall be provided in accordance with Section 9.02 or other written instructions provided by Purchaser), together with all material information relating thereto, provided, that if the Transition Team does not object to the terms within three (3) Business Days after it has received information and a written request therefor, the Purchaser’s consent shall be deemed to have been given;

 

(ix) except as set forth in Section 5.01(b)(ix) of the Disclosure Schedule, (1) sell any asset classified as “Other Real Estate Owned” with a value greater than $250,000 as of March 31, 2013, if such action would result in a loss (relative to the value of the relevant asset as of March 31, 2013 as set forth in the March 31 Balance Sheet) greater than the lesser of 15% of such value of such asset as of March 31, 2013 or $500,000, or (2) sell any asset classified as “Other Real Estate Owned” with a value equal to or less than $250,000 as of March 31, 2013, if such action would result in a loss (relative to the value of the relevant asset as of March 31, 2013 as set forth in the March 31 Balance Sheet) greater than 25% of such value of such asset as of March 31, 2013.  However, the Company shall not be required to request or receive consent from the Purchaser to consummate any such sale of any asset classified as “Other Real Estate Owned” with a value equal to or less than $250,000 as of March 31, 2013 wherein the sale would result in a loss (relative to the value of the relevant asset as of March 31, 2013 as set forth in the March 31 Balance Sheet) not greater than 25% of such value of such asset as of March 31, 2013.  With respect to this clause (viii), the Purchaser agrees that it will through the Transition Team either give or deny any requested consent no later than five (5) Business Days after the Transition Team has received a written request therefor (which request shall be provided in accordance with Section 9.02 or other written instructions provided by Purchaser), together with all material information relating thereto, provided, that if the Transition Team does not object to the terms within five (5) Business Days after it has received information and a written request therefor, the Purchaser’s consent shall be deemed to have been given;

 

  

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(x) pay an effective yield on any existing or new deposit that exceeds the effective yield that is 50 basis points more than (x) for an existing deposit, the effective yield paid by the Bank on such existing deposit as of the date hereof or (y) for a new deposit, the effective yield paid by the Bank on deposits of comparable size and maturity as of the date hereof;

 

(xi) enter into, renew or amend any interest rate swaps, caps, floors and option agreements and other interest rate risk management arrangements, whether entered into for the account of it or for the account of a customer of it, except in the Ordinary Course of Business and consistent with past practice;

 

(xii) acquire (other than by way of foreclosure, deed in lieu of foreclosure, acquisitions of control in a fiduciary or similar capacity, or in satisfaction of debts previously contracted in good faith, in each case in the Ordinary Course of Business and consistent with past practice) all or any portion of the assets, business, deposits or properties of any other Person (including any Loans or advances or any participations therein);

 

(xiii) merge or consolidate with or into any legal entity, dissolve, liquidate, or otherwise terminate its existence;

 

(xiv) file any application to establish, or to relocate or terminate the operations of, any branch or banking office;

 

(xv) amend its Charter Documents or similar organizational documents or otherwise add to, amend or modify in any respect the duties or obligations of indemnification by the Bank or its Subsidiaries with respect to any of their respective directors, officers, employees, agents or other Persons;

 

(xvi) implement or adopt any change in its accounting principles, practices or methods, other than as required by GAAP or the applicable accounting requirements of a Governmental Authority or as requested by the Purchaser;

 

(xvii) make, change or revoke any Tax election that would have an adverse effect on the Purchaser, the Bank or its Subsidiaries, file any material amended Tax Return, enter into any closing agreement, settle any material Tax audit, claim or assessment, surrender or reduce any right to claim a refund of Taxes, agree to extend any statute of limitations relating to Taxes, fail to duly and timely file with appropriate taxing authorities all Tax Returns required to be filed by or with respect to the Bank or its Subsidiaries, fail to remit any material Taxes due, whether or not shown on any Tax Return, or implement or adopt any change in (or fail to follow) its Tax accounting principles, practices or methods;

 

(xviii) settle any action, suit, claim, allegation or proceeding against or affecting the Bank or its Subsidiaries except for any settlement of (A) any action, suit, claim, allegation or proceeding arising out of or in connection with this Agreement or the Contemplated Transactions but only if such settlement would not (1) require any payments by or adversely affect the Bank or its Subsidiaries or the Business or the 

 

  

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Purchaser or its Affiliates, or (2) interfere with or delay any of the Contemplated Transactions; or (B) any other action, suit, claim or proceeding that is settled in a manner consistent with past practice in an amount or for consideration not in excess of $100,000 individually or $350,000 in the aggregate and that would not (1) impose any restriction on or adversely affect the Bank, its Subsidiaries, the Business or, after the Closing, the Purchaser or any of its Affiliates or (2) create precedent for claims that are reasonably likely to be adverse to the Bank, its Subsidiaries, the Business or, after the Closing, the Purchaser or its Affiliates;

 

(xix) initiate any action, suit, proceeding or claim, except actions, suits, proceedings or claims brought in the Ordinary Course that do not claim or involve in excess of $750,000;

 

(xx) (A) Except for the termination of the Bank Director Stock Purchase Agreement, terminate, enter into, amend, modify (including by way of interpretation) or renew any employment, consulting, severance, change in control or similar contract, agreement or arrangement with any director, officer, employee or consultant, or grant any salary or wage increase or increase any employee benefit, including incentive or bonus payments (or, with respect to any of the preceding, communicate any intention to take such action), except for increases in annual base salary or wages in the Ordinary Course of Business and consistent with past practice for employees who are not executive officers and whose annual total compensation does not exceed $100,000 (which increase shall not exceed 5% for any individual employee on an annualized basis); (B) make new grants or awards or pay any bonus incentive or similar payment under any Benefit Arrangement; (C) accelerate the vesting of or lapsing of restrictions with respect to any stock-based compensation or other long-term incentive compensation under any Benefit Arrangement or (D) cause the funding of any rabbi trust or similar arrangement or take any action to fund or in any other way secure the payment of compensation or benefits under any Benefit Arrangement;

 

(xxi) make any payment, reimbursement, refund or other fund transfer to any Affiliate of the Company, other than the payment of salaries to officers and employees in the Ordinary Course;

 

(xxii) establish, adopt, enter into or amend any collective bargaining agreement;

 

(xxiii) (A) hire any employees other than to fill vacancies arising due to terminations of employment of employees with an annual total compensation of less than $100,000 or (B) terminate the employment of any employees with an annual total compensation of $100,000 or more other than for cause (as such term is used by the Company or the Bank in the Ordinary Course of Business consistent with past practice);

 

(xxiv) (A) grant, extend, amend (except as required in the diligent prosecution of the Proprietary Rights owned (beneficially, and of record where applicable) by or developed for the Bank or its Subsidiaries), waive, or modify any material rights in or to, sell, assign, lease, transfer, license, let lapse, abandon, cancel, or 

 

  

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otherwise dispose of, or extend or exercise any option to sell, assign, lease, transfer, license, or otherwise dispose of, any Proprietary Rights, or (B) fail to exercise a right of renewal or extension under any material agreement under which the Bank or its Subsidiaries is licensed or otherwise permitted by a third party to use any Proprietary Rights (other than “shrink wrap” or “click through” licenses), unless the Bank and/or its Subsidiaries, as applicable, obtains a substantially similar license or right to use such Proprietary Rights on terms as favorable as the terms under the existing agreement;

 

(xxv) participate in any program sponsored or administered by any Governmental Authority, which program is not part of the usual and customary banking business of the Bank;

 

(xxvi) engage in (or modify in a manner adverse to the Bank or its Subsidiaries) any transactions with any Person known to be a shareholder of the Company or any director or officer of the Company or the Bank (or any Affiliate, associate, or immediate family member of any such Person), other than deposit relationships in the Ordinary Course of Business consistent with past practice and extensions of credit which are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons unaffiliated with the Company or the Bank and do not involve more than the normal risk of collectability or present other unfavorable features and in compliance with the Federal Reserve Board’s Regulation O, as applicable;

 

(xxvii) notwithstanding any other provision hereof, knowingly take, or knowingly omit to take, any action that would reasonably be expected to result in any of the conditions set forth in Section 6.01 or Section 6.03 not being satisfied, or any action in contravention of any Regulatory Agreement or that would otherwise reasonably be expected to result in any of the representations and warranties of the Company in this Agreement becoming untrue at any time or a violation of this Agreement or prevent the Company from performing its obligations under this Agreement or consummating the Closing; or

 

(xxviii)  enter into any contract with respect to, or otherwise agree or commit to do, or adopt resolutions of its board of directors or similar governing body in support of, any of the foregoing.

 

(c) Access.  From time to time as the Purchaser reasonably requests, the Company shall, and shall cause the Bank and its Subsidiaries to, afford to the Purchaser, the Transition Team and the Purchaser's directors, officers, employees and agents and authorized representatives (including counsel and independent public accountants) reasonable access to (i) the properties and personnel of the Company and its Subsidiaries (including the Bank), (ii) the facilities, properties, Books and Records and other documents relating to the assets, stock ownership, properties, operations, obligations and liabilities of the Company and its Subsidiaries (including the Bank), including all books of account (including the general ledger), tax records, minute books of meetings of boards of directors (and any committees thereof) and stockholders, organizational documents, bylaws, material contracts and agreements, filings with any regulatory authority (except for any confidential portions thereof), accountants’ work papers, litigation files, 

 

  

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loan files, plans affecting employees and any other business activities or prospects; and (iii) all other information concerning the Business, its properties or personnel as the Purchaser may reasonably request, provided, that such access shall not unduly interfere with normal operations of the Business as currently conducted, or violate any Legal Requirement; and provided, further, that the Company reserves the right to exclude any records or other documentation which, upon the advice of legal counsel, would jeopardize the attorney-client privilege of the Company (after giving due consideration to the existence of any common interest, joint defense or similar agreement between the parties).  The Company shall instruct the employees, counsel and financial advisors of the Company and the Bank to cooperate with the Purchaser and the Transition Team in connection with the foregoing.  Without in any way limiting anything else contained in this Agreement, the Company and the Bank shall make their respective directors, officers, employees and agents and authorized representatives (including counsel and independent public accountants) available to confer with the Purchaser and its representatives; provided, that such access shall not unduly interfere with normal operations of the Business as currently conducted or violate any Legal Requirement.  No access or investigation by the Purchaser or other information received by the Purchaser shall operate as a waiver or otherwise modify or affect any representation, warranty, covenant or agreement given or made by the Company in this Agreement, nor shall any such information be deemed to change, supplement or amend the Disclosure Schedule or any condition set forth in Section 6.01 or Section 6.03 or otherwise affect the remedies available to the Purchaser hereunder.

 

Section 5.02. Confidentiality.  Each party hereto (such party when disclosing information being the “Disclosing Party”, and such party when receiving information being the “Recipient Party”) acknowledges that any information, materials and documentation of the other party it receives or observes pursuant to or as contemplated by the Contemplated Transactions, either before or after execution of this Agreement, is confidential; provided, however, that the foregoing shall not include information which (a) is or becomes available to the public other than as a result of a disclosure by the Recipient Party, (b) was known to the Recipient Party or in its possession prior to its disclosure to the Recipient Party, (c) becomes available to the Recipient Party from a source other than the Disclosing Party; provided that such information is not known by the Recipient Party to have been provided in breach of a confidentiality agreement with the Disclosing Party or in breach of a contractual, legal or fiduciary obligation to the Disclosing Party, or (d) is or was developed independently by the Recipient Party without reference to confidential information provided by the Disclosing Party.  Each party shall use, and shall cause its employees, representatives and agents to use, reasonable efforts to protect and maintain the confidentiality of such information, materials and documentation of the other party; provided, that the foregoing will not prevent the Recipient Party from disclosing or making available such information (i) to its and its Affiliates’ respective directors, officers, employees, members, partners, shareholders, agents, representatives or advisors (including attorneys, accountants, insurers, rating agencies, consultants, bankers and financial advisors), any such information, materials and documentation on a confidential basis for the purpose of carrying out the Contemplated Transactions, (ii) to the extent required by a Legal Requirement or (iii) in connection with obtaining the Purchaser Required Approvals or discussions with supervising Governmental Authorities; and provided, further, that (x) the obligations of the Purchaser under this Section 5.02 shall terminate at Closing with respect to matters relating to the Bank, its Subsidiaries or the Business and (y) from and after Closing, the Company will treat all information, materials and documentation of or relating to the Bank, its 

 

  

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Subsidiaries or the Business as confidential in accordance herewith and notwithstanding clause (b), (c) or (d) of the proviso to the first sentence of this Section 5.02.

 

Section 5.03. Return of Information.  If the Closing is not completed and this Agreement is terminated, each party shall, upon the written request of the other party, at its election return to the other party or destroy (such destruction to be confirmed in writing to the other party upon further written request) all materials, documentation, data, records and other papers and copies thereof (whether on paper or in electronic, magnetic, photographic, mechanical or optical storage) relating to the Purchaser or its Affiliates or to the Company, the Bank, the Shares or the Business which is confidential and which is in the possession of such party and maintain the confidentiality of all information obtained from the other party, and not use any such information for any purpose whatsoever; provided that a party may maintain such information to the extent that such information would be commercially impracticable to return or destroy or as required by applicable Legal Requirements or such party’s bona fide document retention policies (including any practice or requirement to retain e-mail on an automated e-mail archival system) or relating to the safeguarding or backup storage of electronic data or in connection with a dispute with the other party.

 

Section 5.04. Consents and Approvals.

 

(a) Purchaser Required Approvals.  The Purchaser and the Company agree to use commercially reasonable efforts to obtain all Purchaser Required Approvals, and to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under any applicable Legal Requirement to consummate the Contemplated Transactions.  For the avoidance of doubt, none of the obligations in this Section 5.04 shall require the Purchaser or any of its Affiliates to take any action that could reasonably be expected to result in the imposition of a Burdensome Condition.

 

(b) Preparation of Applications.  As promptly as practicable following the date of this Agreement, the Purchaser, with the cooperation of the Company, shall cause to be published all required notices and prepare all necessary documentation and effect all necessary filings in connection with obtaining the Purchaser Required Approvals and deliver a conformed copy of the non-confidential portions of all such documents, correspondence and applications to the Company.  The Purchaser and the Company will cooperate with each other and will each furnish the other and the other’s counsel with all information reasonably requested concerning themselves, their Subsidiaries, directors, officers and stockholders and such other matters as may be reasonably necessary or advisable in connection with any application, petition or any other statement or application made by or on behalf of the Purchaser, the Company or their respective Subsidiaries to any Governmental Authority in connection with the Contemplated Transactions.  The Purchaser and the Company shall have the right to review and discuss in advance all characterizations of the information relating to them and any of their respective Subsidiaries which appear in any filing made, or written materials submitted, in connection with the transactions contemplated by this Agreement with any Governmental Authority.  Notwithstanding anything in this Agreement (including in this Section 5.04) to the contrary, the Purchaser shall not be required to furnish the Company with any (i) personal, biographical or financial information of any of the directors, officers, employees, managers, principals or partners of the Purchaser or any of its Affiliates or (ii) proprietary and non-public information 

 

  

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related to the organizational terms of, or investors in, the Purchaser, or any of its Affiliates, or any other confidential information regarding the Purchaser, its Affiliates, or its or their investors, directors, officers, employees, managers, principals or partners (including any such information contained in documentation and filings made in connection with obtaining the Purchaser Required Approvals).  In addition, nothing herein shall require the Purchaser or any of its Affiliates to take any action that could reasonably be expected to result in the imposition of a Burdensome Condition.

 

(c) Submission of Applications for Purchaser Required Approvals.  The Purchaser and the Company shall use their commercially reasonable efforts to:

 

(i) cooperate in all respects with each other in connection with any filing or submission and in connection with any investigation or other inquiry relating to the Purchaser Required Approvals, including but not limited to the Purchaser, the Company and their respective Subsidiaries cooperating and using commercially reasonable efforts to make, on a timely basis, all registrations, filings and applications with, give all notices to, and obtain any approvals, orders, qualifications and waivers from, a Governmental Authority necessary for the consummation of the transactions contemplated hereby; provided, however, that neither the Purchaser or any of its Affiliates shall be required to (and without the Purchaser’s written consent, neither the Company nor any of its Affiliates shall be permitted to, nor shall they permit any of their employees to) commence or be a plaintiff in any litigation in connection with any such registration, filing, application, notice, approval, order, qualification or waiver or take any action that could reasonably be expected to result in the imposition of a Burdensome Condition;

 

(ii) Purchaser, at its own expense, will promptly, but in no event later than fifteen (15) days after the date of this Agreement, file or cause to be filed applications for all Purchaser Required Approvals in connection with this Agreement and the Contemplated Transactions.

 

(iii) subject to any Legal Requirement, permit each other to review and discuss in advance, and consider in good faith the views of the other in connection with, any proposed written communication (or other correspondence or memoranda) between any such party and any Governmental Authority relating to the other party and to the Contemplated Transactions; and

 

(iv) subject to any Legal Requirement, promptly inform each other of and supply to each other any written communication (or other correspondence or memoranda) submitted to (except to the extent such submission is confidential), or received by them from, any Governmental Authority, in each case regarding any of the Contemplated Transactions except to the extent that such communication relates to the information described in the penultimate sentence of Section 5.04(b).

 

(d) Without the prior written consent of the Purchaser, the Company shall not take, or permit any of its Affiliates or any of its or their employees to take, any action that could reasonably be expected to result in a Burdensome Condition.

 

  

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(e) The parties agree to cooperate in good faith in connection with providing any notice to, and obtaining any consent or approval from, any third Person (other than a Governmental Authority, it being understood that the parties’ agreements with respect to such matters as they relate to Governmental Authorities are set forth elsewhere in this Agreement) that is necessary or desirable in connection with the Contemplated Transactions.  Without the Purchaser’s consent, the Company shall not and shall not permit any of its Affiliates or any of its or their employees to make any payment to any such third Person (other than customary filing and application fees paid for by the Company), make or amend any commitment to any such third Person, or agree to do any of the foregoing, in each case, in order to obtain any consent or approval from any such third Person.

 

Section 5.05. Certain Company Contracts.  The Company shall, at the Closing, pursuant to Section 365 of the Bankruptcy Code, assume (and take all necessary actions, including the payment of Cure Costs, to effect assumption) and assign to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, those Bank Related Contracts set forth on Schedule 5.05 or identified by the Purchaser by written notice given to the Company no later than three (3) Business Days prior to the Closing (such Contracts, the “Assumed Bank Related Contracts”).  To the extent that any Assumed Bank Related Contract may not be assigned to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, by the Company absent the waiver or consent of, or notice to, one or more Persons, the Company and the Purchaser shall use their commercially reasonable efforts to obtain all such waivers or consents and to make all such notices prior to the Closing and shall cooperate in all respects with respect thereto.  Notwithstanding anything in this Agreement to the contrary, the only liabilities or obligations that will be assigned to or assumed by the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, with respect to the Assumed Bank Related Contracts will be those liabilities and obligations that first arise after the Closing (the “Assumed Contract Liabilities”) and not any liabilities or obligations for breaches or defaults occurring on or before the Closing (including Cure Costs).

 

Section 5.06. Indemnification; D&O Insurance.

 

(a) From and after the Closing, the Purchaser shall indemnify and hold harmless each present and former officer and director of the Company, Bank or their respective Affiliates (the “Indemnified Parties”) with respect to all costs, expenses, claims, judgments, fines, losses, damages or liabilities to the extent arising out of (i) the fact that such Indemnified Party was an officer or director of the Company, Bank or their respective Affiliates or (ii) acts or omissions prior to the Closing in such Person’s capacity as an officer or director of the Company, Bank or their respective Affiliates to the same extent as such Indemnified Parties are entitled to be indemnified pursuant to the Charter Documents of the Company, Bank or their respective Affiliates in effect as of the date hereof or arising by operation of any Legal Requirement in effect as of the date hereof.  Such indemnification obligations shall continue in full force and effect for so long as they would have (but for the Contemplated Transactions) otherwise survived and continued in full force and effect.  For a period of six (6) years from the Closing Date, the Purchaser shall not, and shall not permit or cause its Affiliates or any other Person to, amend, repeal or otherwise modify any exculpation and indemnification provisions of the Charter Documents of the Bank in effect as of the date hereof for the benefit of the 

 

  

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Indemnified Parties in any manner that would adversely affect the rights thereunder of any of the Indemnified Parties relating to acts or omissions prior to the Closing.

 

(b) For a period of six (6) years after the Closing, the Purchaser shall cause the Indemnified Parties covered by the directors’ and officers’ liability insurance policy maintained by the Bank or its Affiliates and in effect immediately prior to the Closing (the “Bank D&O Policy”) to continue to be covered by the Bank D&O Policy (provided, that the Purchaser may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous to the insured) with respect to claims arising from facts or events which occurred at or prior to the Closing; provided, however, that the Purchaser shall not be required to expend on an annual basis more than 200% of the current annual premium paid as of the date hereof by the Bank for such insurance (the “Premium Cap”), and if such premiums for such insurance would at any time exceed the Premium Cap, the Purchaser shall cause to be maintained policies of insurance which, in the Purchaser’s good faith determination, provide the maximum coverage available at an annual premium equal to the Premium Cap.  In lieu of the foregoing, in consultation with, and only upon the written consent of, the Purchaser, the Bank may obtain at or prior to the Closing a six-year “tail” policy under the Bank D&O Policy providing equivalent coverage to that described in the preceding sentence if and to the extent that the same may be obtained for an aggregate one-time premium payment that does not exceed 300% of the current annual premium paid as of the date hereof for the Bank D&O Policy.

 

Section 5.07. Notices of Certain Events.  The Company shall promptly notify the Purchaser in writing of:

 

(a) any notice or other material communication from any Person in connection with the Contemplated Transactions;

 

(b) any actions, suits, claims, investigations or proceedings commenced or, to its Knowledge, threatened against, relating to or involving or otherwise affecting the Contemplated Transactions, the Company or the Bank or its Subsidiaries that, if pending on the date hereof, would have been required to have been disclosed pursuant to Section 3.08 if determined adversely or that could reasonably be expected to adversely affect or delay the Company’s ability to consummate any of the Contemplated Transactions;

 

(c) any circumstance, event or action the existence, occurrence or taking of which could reasonably be expected to result in any representation or warranty made by the Company in this Agreement not being true and correct at any time from the date hereof through the Closing Date or that could reasonably be expected to cause any condition set forth in Section 6.01 or Section 6.03 not to be satisfied; and

 

(d) any failure of the Company to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it under this Agreement.

 

No information received by the Purchaser pursuant to this Section 5.07 or otherwise shall operate as a waiver or otherwise modify or affect any representation, warranty, covenant or agreement given or made by the Company in this Agreement, nor shall any such information be deemed to 

 

  

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change, supplement or amend the Disclosure Schedule or any condition set forth in Section 6.01 or Section 6.03, or otherwise affect the remedies available to the Purchaser hereunder.

 

Section 5.08. Waiver of Fee.  The Purchaser waives and disclaims any right to receive any fee analogous to the Stalking-Horse Bidder Fee, any transaction or break-up fee, expense reimbursement or similar fee or payment or to compensation under Bankruptcy Code Section 503(b) for making a substantial contribution.

 

Section 5.09. Debtor-in-Possession.  During the pendency of the Bankruptcy Case, the Company shall continue to operate its business as debtor-in-possession pursuant to the Bankruptcy Code.

 

Section 5.10. Investment Portfolio.  The Company shall cause the Bank not to sell or purchase any securities in the investment portfolio, with a value in excess of $250,000 individually or, $1,500,000 in the aggregate, without the prior written consent of the Purchaser through the Transition Team.  Further, the Company shall cause the Bank to consult with the Purchaser through the Transition Team in the management of the investment portfolio for the purpose reducing the interest rate risk and duration of portfolio.  All of the foregoing actions with respect to the investment portfolio, including the buying or selling of securities therein, shall be undertaken only with the approval of any Governmental Authority with jurisdiction over the Bank, if such approval is required.  Notwithstanding the foregoing, nothing herein shall be deemed to give the Purchaser any managerial authority over the Bank’s investment portfolio and such managerial authority shall remain in the sole and absolute discretion of the Bank.

 

Section 5.11. [Reserved]

 

Section 5.12. Sale Order.  The Sale Order shall be in form and substance acceptable to Purchaser and shall include the following findings of fact, conclusions of law and ordering provisions:

 

(a) find that the Notice of Sale, and the parties who were served with copies of such Notice of Sale, were in compliance with Sections 102 and 363 of the Bankruptcy Code and Bankruptcy Rules 2002, 6004, and 9014 and any other applicable provision of the Bankruptcy Code, the Bankruptcy Rules, or any local bankruptcy rule governing the sale of assets free and clear of Encumbrances and other interests;

 

(b) find that all requirements imposed by Section 363(f) of the Bankruptcy Code for the sale of the Shares and the Other Purchased Assets free and clear of Encumbrances and other applicable interests have been satisfied;

 

(c) find that the Purchaser is a purchaser of the Shares and the Other Purchased Assets in “good faith” pursuant to Section 363(m) of the Bankruptcy Code, and the Sale is entitled to the protections of Section 363(m);

 

(d) find that the Purchaser and the Company did not engage in any conduct which would allow this Agreement to be set aside pursuant to Section 363(n) of the Bankruptcy Code;

 

  

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(e) find that pursuant to Section 105 of the Bankruptcy Code, any creditors of the Company or its Subsidiaries are enjoined from taking any actions against the Purchaser, SFNB or the Bank in respect of the Shares or the Other Purchased Assets;

 

(f) find that the consideration provided by the Purchaser pursuant to this Agreement constitutes reasonably equivalent value and fair consideration for the Shares and the Other Purchased Assets;

 

(g) approve this Agreement and the consummation of the Sale upon the terms and subject to the conditions of this Agreement;

 

(h) order that, as of the Closing Date, the transactions contemplated by this Agreement effect a legal, valid, enforceable and effective sale and transfer of the Shares and the Other Purchased Assets to the Purchaser and/or, as applicable, its designees and shall vest the Purchaser and/or, as applicable, its designees with title to such assets free and clear of all Encumbrances (except for Assumed Contract Liabilities);

 

(i) (A) authorize the Company to assume and assign to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, each of the Assumed Bank Related Contracts, and (B) find that, subject to the terms of the Sale Order, as of the Closing Date, the Assumed Bank Related Contracts will have been duly assigned to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, in accordance with Section 365 of the Bankruptcy Code;

 

(j) find that neither the Purchaser nor the Bank nor any of their Affiliates is assuming any of the Excluded Liabilities;

 

(k) order that the Assumed Bank Related Contracts will be transferred to, and remain in full force and effect for the benefit of, the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, notwithstanding any provision in any such contract or any requirement of applicable law (including those described in Sections 365(b)(2) and 365(f) of the Bankruptcy Code) that prohibits, conditions, restricts or limits in any way such assignment or transfer;

 

(l) find that the Bank and each applicable Subsidiary of the Bank (if any) has satisfied all requirements under Sections 365(b)(1) and 365(f)(2) of the Bankruptcy Code to provide adequate assurance of future performance of the Assumed Bank Related Contracts;

 

(m) approve any other agreement to the extent provided by this Agreement;

 

(n) except as expressly set forth in the Sale Order, enjoin and forever bar the non-debtor party or parties to each Assumed Bank Related Contract from asserting against the Purchaser or any Affiliate or designee of the Purchaser:  (i) any default, action, Liability or other cause of action existing as of the date of the Sale Hearing, whether asserted or not, and (ii) any objection to the assumption and assignment of such non-debtor party’s Assumed Bank Related Contract (except to the extent any such objection was sustained by the Order of the Bankruptcy Court);

 

(o) find that, to the extent permitted by applicable law, none of the Purchaser nor any Affiliate of the Purchaser nor any designee of the Purchaser is a successor to the 

 

  

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Company or the bankruptcy estate by reason of any theory of law or equity, and none of the Purchaser nor any Affiliate of the Purchaser nor any designee of the Purchaser shall assume or in any way be responsible for any Liability of the Company and/or the bankruptcy estate, except as otherwise expressly provided in this Agreement;

 

(p) provide that the Company is authorized and directed to consummate the transactions contemplated by this Agreement and to comply in all respects with the terms of this Agreement;

 

(q) be made expressly binding (based upon language satisfactory to the Purchaser) upon any trustee or other estate representative in the event of conversion of the Bankruptcy Case to Chapter 7 of the Bankruptcy Code, or upon appointment of a Chapter 11 trustee in the Bankruptcy Case;

 

(r) enjoin assertion of any Excluded Liabilities against the Purchaser, the Bank or any of their Affiliates or any assignees, designees, transferees or successors thereof or against any of the Shares or Other Purchased Assets; and

 

(s) order that, notwithstanding the provisions of Federal Rules of Bankruptcy Procedures 6004(h) and 6006(d), the Sale Order is not stayed and is effective immediately upon entry.

 

Section 5.13. Non-Solicitation of Competing Bids.  [Reserved]

 

Section 5.14. Public Announcements.  Other than mutually agreed upon press releases and other materials to be issued upon the announcement of this Agreement or thereafter, with respect to which the parties shall cooperate in good faith to jointly prepare or communicate consistent with the joint communication policy of the parties, from and after the date hereof, neither party shall make any public announcement or public comment regarding this Agreement or the Contemplated Transactions without the prior written consent of the other party (which consent shall not be unreasonably withheld, delayed or conditioned), unless and only to the extent that (a) the furnishing or use of information is required in making any filing or obtaining any Governmental Authorization required for the consummation of the Contemplated Transactions or (b) the furnishing or use of such information is required by Legal Requirements.  Notwithstanding anything to the contrary in this Agreement (including this Section 5.14), nothing herein shall prohibit the Company or its Affiliates from complying with the requirements of the Bidding Procedures Order approved by the Bankruptcy Court.

 

Section 5.15. Tax Refunds and Other Proceeds.  Notwithstanding anything to the contrary in the Tax Sharing Agreement or any Assumed Bank Related Contract, any Bank Tax Refund received by the Company, before or after the Closing, shall be allocated entirely to the Bank.  The Company shall hold in trust for the benefit of the Bank the amount of any Bank Tax Refund allocated to the Bank pursuant to this Section 5.15 before or after the Closing, and the Company shall remit such amounts to the Bank within seven (7) Business Days of receipt thereof.  The Company agrees that all Bank Tax Refunds are Other Purchased Assets sold to the Bank free and clear of all Encumbrances, pursuant to the terms and conditions of this Agreement.  Anything in any other agreement to the contrary notwithstanding, all liabilities and 

 

  

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obligations between the Company or any of its Subsidiaries (other than the Bank) on the one hand and the Bank or any of its Subsidiaries on the other hand, under any Tax allocation or Tax sharing agreement (including the Tax Sharing Agreement) in effect prior to the Closing Date (other than this Agreement) shall cease and terminate as of the Closing Date as to all past, present and future taxable periods.  Prior to the Closing, the Company and the Bank shall terminate the Tax Sharing Agreement; provided, that such termination shall be without any liability whatsoever to the Bank or any of its Subsidiaries or the Purchaser.

 

Section 5.16. Tax Election.

 

	
(a)  

	
On its consolidated federal income Tax Return for the taxable year in which the Closing Date occurs, the Company shall elect under Treasury Regulations Section 1.1502-36(d) to reduce its Tax basis in the Shares to the extent necessary to prevent any reduction of the Bank's attributes.  All Tax Returns filed by the Company, the Bank and its Subsidiaries shall be consistent with this provision.  In addition, the Company shall take any other action reasonably requested by the Purchaser to preserve the Bank's attributes.

	
(b)  

	
The Purchaser and the Company shall cooperate in determining whether to make the election provided in Treasury Regulations Sections 1.108-4 and 1.1502-28(b)(2)(i) with respect to the Tax year that includes the date of Closing.  At least thirty (30) days prior to filing IRS form 982, the Company will provide the Purchaser with a preliminary calculation of how the Company would apply the provisions of Section 108 to any excluded cancellation of debt income for Purchaser’s review, which shall be timely completed.

Section 5.17. Preparation and Filing of Tax Returns; Taxes.  The Company shall include the income of the Bank and its Subsidiaries on the Company’s consolidated, unitary, affiliated or other combined federal and state income Tax Returns for all periods through the end of the Closing Date (such period, the “Pre-Closing Tax Period” and such Tax Returns, the “Company Tax Returns”) and pay any federal and state income Taxes attributable to such income, subject to an obligation of the Bank to reimburse the Company for any such income Taxes actually paid in cash by the Company.  The Bank shall furnish Tax information to the Company for inclusion in such Tax Returns in accordance with the Bank’s past custom and practice.  The income of the Bank and its Subsidiaries (i) shall be apportioned to (x) the period up to and including the Closing Date and (y) the period after the Closing Date and (ii) shall be determined on a closing of the books method of the Bank and its Subsidiaries at the end of the day on the Closing Date.  The Company shall timely prepare and file (or cause to be prepared and filed) the Company Tax Returns, and shall prepare all Company Tax Returns in a manner consistent with prior practice in respect of the Bank and its Subsidiaries unless otherwise required by applicable law or unless the Purchaser consents to such different treatment, such consent not to be unreasonably withheld or delayed.  The Company shall provide (or cause to be provided) to the Purchaser a copy of any Company Tax Return at least twenty (20) Business Days prior to the due date for filing such return, and the Purchaser shall have ten (10) Business Days in which to review and comment on such return prior to the filing thereof, provided, however, the Company shall in its reasonable discretion determine whether to accept such comments.  The Purchaser and the Company agree to report all transactions not in the Ordinary 

 

  

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Course of Business occurring on the Closing Date after the Closing on the Purchaser’s federal and state income Tax Returns to the extent permitted by Treasury Regulations Section 1.1502-76(b)(1)(ii)(B).

 

Section 5.18. Tax Cooperation.  In connection with the preparation of Tax Returns, audit examinations, and any administrative or judicial proceedings relating to the Tax liabilities imposed on or attributable to the Bank or its Subsidiaries, the Purchaser, on the one hand, and the Company, on the other hand, shall reasonably cooperate fully with each other, including the furnishing or making available during normal business hours of records, personnel (as reasonably required), books of account, powers of attorney or other materials necessary or helpful for the preparation of such Tax Returns, the conduct of audit examinations or the defense of claims by taxing authorities as to the imposition of Taxes.  The Company shall provide to the Purchaser copies of all information, returns, books, records and documents relating to any Tax matters of or attributable to the Bank or its Subsidiaries. At the Purchaser's reasonable discretion, the Company and its representatives shall cooperate with the Purchaser in requesting that the IRS approve the designation of the Purchaser as substitute agent (within the meaning of Revenue Procedure 2002-43 and Treasury Regulations Section 1.1502-77) for the federal consolidated Tax Return filings of the Company that include the Bank or the Bank Subsidiaries.

 

Section 5.19. Tax Proceedings.  The Company shall promptly notify the Purchaser upon receipt by the Company of any notice of any inquiries, assessments, audits, proceedings or similar events received from any taxing authority with respect to any Taxes, Tax attributes (including net operating losses) or Bank Tax Refunds, including such items included in any consolidated, affiliated, unitary or other combined Tax Return, whether attributable to the Pre-Closing Tax Period or any period or portion of a period after the Closing Date (any such inquiry, assessment, audit, proceeding or similar event, including any such matter relating to any Bank Tax Refund, a “Tax Matter”).  Prior to the Closing, the Company shall have the right to control the process, disposition and decision of whether to settle any Tax Matter; provided, however, that the Company shall consult with the Purchaser relating to all of the foregoing.  In addition, the Company shall not enter into any settlement of or otherwise compromise any inquiry, assessment, audit, proceeding or similar event to the extent that such settlement or compromise could adversely affect the Tax liability (including a reduction of a Tax Refund, net operating loss or other tax attribute) of the Bank, its Subsidiaries or the Purchaser with respect to a Tax period or portion thereof occurring after the Closing Date, without the consent of the Purchaser, such consent not to be unreasonably withheld or delayed.  Following the Closing, the Purchaser shall have the right to control the process, disposition and decision of whether to settle any Tax Matter in its sole discretion, provided, however, the Purchaser shall obtain the consent from the Company, which shall not be unreasonably withheld or delayed to settle any Tax Matter that would result in current or future Taxes for which the Company would be liable for under this Agreement.  The Company will promptly disclose to the Purchaser all information it receives after the date hereof or that was in its possession prior to the date hereof but not previously disclosed to the Purchaser, in each case that is or may be material and relates to any Bank Tax Refund.

 

Section 5.20. Transfer Taxes.  Notwithstanding any other provision of this Agreement, the Purchaser, on the one hand, and the Company, on the other hand, shall each be responsible for 50% of any transfer, sales, use, stamp, conveyance, value added, recording, registration, 

 

  

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documentary, filing and other similar non-income Taxes and administrative fees (including notary fees) (“Transfer Taxes”) arising in connection with the consummation of the Contemplated Transactions, whether levied on the Company, the Purchaser or its Affiliates.  The Purchaser shall timely prepare (or cause to be prepared) any Tax Returns with respect to Transfer Taxes arising in connection with the consummation of the Contemplated Transactions (the “Transfer Tax Returns”).  The Purchaser shall provide (or cause to be provided) to the Company a copy of any Transfer Tax Return at least twenty (20) days prior to the due date for filing such return, and the Company shall have ten (10) days in which to review and comment on such return prior to the filing thereof.  The Purchaser shall take any such Company comments into consideration in good faith; provided, however, that the Purchaser shall have final determination as to the contents of any Transfer Tax Return unless the Company believes and informs the Purchaser that, upon advice of its advisors, a position taken by the Purchaser is not permitted under applicable law; and provided, further, that if the Company so believes any position reflected on a Transfer Tax Return is not permitted under applicable law, the parties shall engage an independent third party accounting firm to determine whether such position is permitted under applicable law and the determination of such accounting firm shall control the treatment of the disputed position(s) on such Transfer Tax Return.  The expense of such accounting firm shall be borne 50% by the Company and 50% by the Purchaser.  The Company shall timely file all Transfer Tax Returns and the parties shall pay the amount shown as due on any such return on the due date of such return in the proportions set forth above.  Upon the request of the other party, each of the Company and the Purchaser agrees to pay the other 50% of any additional Transfer Taxes, along with related penalties and interest, if any, if and to the extent any such party is then liable for such Transfer Taxes pursuant to an audit or other proceeding by a taxing authority in respect of any Transfer Taxes that the other party has not previously paid over to the applicable party or taxing authority.  The Company and the Purchaser shall cooperate to minimize Transfer Taxes.  If a certificate or document of exemption is required to reduce or eliminate the Transfer Taxes, the Purchaser will promptly furnish such certificate or document to the Company or the Purchaser will cooperate with the Company to allow the Company to obtain such reduction or exemption from Transfer Taxes.

 

Section 5.21. Bankruptcy Filings.

 

(a) From and after the date of this Agreement, the Company shall use commercially reasonable efforts to provide the Purchaser with a copy of any papers or pleadings to be filed in the Bankruptcy Case that relate in any way to this Agreement, the Sale, the Bidding Procedures, the Contemplated Transaction or the Purchaser at least two (2) Business Days prior to such filings.

 

(b) The Company shall provide the Purchaser with prompt notice of any papers or pleadings filed by a party other than the Purchaser in the Bankruptcy Case that relate in any way to this Agreement, the Sale, the Bidding Procedures or the Purchaser.

 

Section 5.22. Transfer of Business-Related Assets and Contracts.  If at any time, whether before or after the Closing, the Company or any of its officers or employees discovers or is otherwise aware of the fact that the Company or one of its Subsidiaries (other than the Bank or its Subsidiaries) (i) owns any asset (whether real, personal, tangible, intangible or otherwise) that is used or held for use in connection with, or that relates to, the Business or (ii) is a party to any 

 

  

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Contract relating to the Business, the Company will promptly give notice of that fact to the Purchaser and, if the Purchaser so requests, the Company will promptly cause such asset to be transferred to the Bank free and clear of all Encumbrances, or the rights and obligations (but not any obligations relating to a pre-transfer breach or default) under such Contract to be assigned to the Bank free and clear of all Encumbrances, as the case may be, for no additional consideration beyond that currently provided for herein.

 

Section 5.23. Plan.  The Company covenants and agrees that if the Sale Order is entered, the terms of any plan of reorganization or liquidation submitted, supported or sponsored by the Company for confirmation shall not conflict with, supersede, abrogate, nullify, modify or restrict the terms of this Agreement and the rights of the Purchaser hereunder, or in any way prevent or interfere with the consummation or performance of the transactions contemplated by this Agreement, including any transaction that is approved pursuant to the Sale Order.

 

Section 5.24. Appeal.  If the Sale Order or the Bidding Procedures Order is appealed by any Person, or petition for certiorari or motion for rehearing or reconsideration is filed with respect thereto, the Company agrees to take all action as may be commercially reasonably necessary to defend against such appeal, petition or motion and to obtain an expedited resolution of such appeal, petition or motion.

 

Section 5.25. Redemption of Shares; Charter Documents; Director Shares.

 

(a) Effective immediately prior to the Closing, (i) the Company shall contribute to the Bank all of its right, title and interest in the promissory notes in favor of the Company executed by the directors of the Bank in accordance with the Bank Director Stock Purchase Agreement, (ii) the Company shall cause the Bank to redeem all of the outstanding Shares of which the Company is not the record or beneficial owner as of the date hereof pursuant to the terms of the Bank Director Stock Purchase Agreement, (iii) in exchange for such redemption, the Bank shall cancel each promissory note described in clause (i) of this Section 5.25 and (iv) the Bank, the Company and the directors of the Bank shall cause the Bank Director Stock Purchase Agreement to be terminated, in each case on terms and conditions satisfactory to Purchaser.

 

(b) The Company shall take, and shall cause the Bank and the directors of the Bank to take, any and all actions requested by the Purchaser to ensure that, as of immediately following the Closing, the directors of the Bank hold the minimum amount of equity interests in the Bank required to satisfy applicable regulatory requirements.

 

(c) The Company and the Bank shall cause the Charter Documents of the Bank to be amended, effective as of the Closing, in any manner requested by the Purchaser, including to make changes to the Charter Documents to facilitate the Equity Contribution and its appropriate economic effect.

 

Section 5.26. Payment of the Broker’s Fees.  At the Closing, the Purchaser shall pay or shall cause the Bank to pay (as determined by the Purchaser in its sole discretion and as partial payment of the Purchase Price) to the Broker the Broker’s Fees in full satisfaction of all obligations of the Bank and the Purchaser in connection with any engagement letters or other 

 

  

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agreements of the Company, the Bank or any other Subsidiary with the Broker, and the Company will cause the Broker to deliver to the Bank and the Purchaser a pay-off letter in respect thereof in form and substance reasonably satisfactory to the Purchaser.

 

Section 5.27. Severance Policy.  Immediately following the Closing, the Purchaser shall cause the Bank (or any successor to the Bank) to adopt and implement a severance policy for employees of the Bank whose employment is terminated following the Closing, on substantially the terms set forth in Section 5.27 of the Disclosure Schedule.

 

ARTICLE 6

Conditions of Closing

 

Section 6.01. Conditions to Purchaser’s Obligations.  The obligation of the Purchaser to complete the Contemplated Transactions is subject to the fulfillment or (to the extent permitted by law) waiver on or prior to the Closing Date of the following conditions:

 

(a) Representations and Warranties.  (i) The representations and warranties of the Company contained in Section 3.01, Section 3.02, clause (a) of the second sentence of Section 3.12, Section 3.18(a) and Section 3.23 shall be true and correct in all respects both as of the date of this Agreement and as of the Closing Date with the same effect as though such representations and warranties had been made as of the Closing Date (except to the extent expressly made as of a particular earlier date, in which case as of such earlier date) and (ii) each of the representations and warranties of the Company contained in this Agreement (other than those representations and warranties specified in subclause (i) above) shall be true and correct in all respects (without regard to materiality or Material Adverse Effect qualifications contained therein) both as of the date of this Agreement and as of the Closing Date with the same effect as though such representations and warranties had been made as of the Closing Date (except to the extent expressly made as of a particular earlier date, in which case as of such earlier date), except where the failure of such representations and warranties in this subclause (ii) to be so true and correct (without regard to materiality or Material Adverse Effect qualifications contained therein) has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(b) Covenants.  The covenants and obligations of the Company to be performed or observed on or before the Closing Date pursuant to this Agreement shall have been duly performed or observed in all material respects;

 

(c) [Reserved]

 

(d) [Reserved]

 

(e) Sale Order.  The Bankruptcy Court shall have entered the Sale Order, in form and substance acceptable to the Purchaser and such order (i) shall have become final and non-appealable, (ii) shall not have been stayed as of the Closing Date, stayed pending appeal, reversed or vacated, and (iii) shall not have been amended, supplemented or otherwise modified in any manner adverse to the Purchaser;

 

  

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(f) Officer’s Certificate.  The Company shall have delivered to the Purchaser a certificate signed by its chief executive and chief financial officers certifying to the effect that the conditions set forth in Section 6.01(a) and (b) have been satisfied;

 

(g) Purchaser Required Approvals.  The Purchaser shall have obtained all of the Purchaser Required Approvals in form and substance reasonably acceptable to the Purchaser and without the imposition of any Burdensome Condition, each such Purchaser Required Approval shall remain in full force and effect and no such Purchaser Required Approval shall have been amended, modified, reversed or vacated and all applicable waiting periods with respect to any of the Purchaser Required Approvals shall have expired;

 

(h) The consents set forth in Section 6.01(h) of the Disclosure Schedule shall have been obtained in form and substance acceptable to the Purchaser and shall be in effect;

 

(i) The Purchaser shall have received endorsements on terms satisfactory to the Purchaser with respect to any insurance policies included in the Other Purchased Assets that, among other things, confirm the assignment of such policies, and provide that the Bank and its Subsidiaries will have the right to give notice with respect to, control and receive the proceeds of, any claims under such policies relating to the Bank or its Subsidiaries; and

 

(j) Release.  The Purchaser shall have received from the Company an instrument dated as of the Closing Date releasing the Purchaser and the Bank from any and all claims of the Company in form and substance mutually agreeable to the Company, the Bank and the Purchaser.

 

The foregoing conditions are for the benefit of the Purchaser only and accordingly the Purchaser will be entitled to waive compliance with any such conditions if it sees fit to do so, without prejudice to its rights and remedies at law and in equity and also without prejudice to any of its rights of termination or otherwise in the event of the failure to fulfill any other conditions in whole or in part.

 

Section 6.02. Conditions to the Company’s Obligations.  The obligation of the Company to complete the Contemplated Transactions is subject to the fulfillment or (to the extent permitted by law) waiver on or prior to the Closing Date of each of the following conditions:

 

(a) Representations and Warranties.  The representations and warranties of the Purchaser contained in this Agreement shall be true and correct in all material respects on and as of the Closing Date with the same effect as though such representations and warranties had been made as of the Closing Date (except to the extent expressly made as of a particular earlier date, in which case as of such earlier date);

 

(b) Covenants.  The covenants and obligations of the Purchaser to be performed or observed on or before the Closing pursuant to this Agreement shall have been duly performed or observed in all material respects;

 

(c) Sale Order.  The Bankruptcy Court shall have entered the Sale Order and such order shall not have been stayed as of the Closing Date, stayed pending appeal, reversed or vacated;

 

  

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(d) Officer’s Certificate.  The Purchaser shall have delivered to the Company a certificate signed by an appropriate officer certifying to the effect that the conditions set forth in Sections 6.02(a) and (b) have been satisfied; and

 

(e) Release.  The Company shall have received from the Bank an instrument dated as of the Closing Date releasing the Company from any and all claims of the Bank in form and substance mutually agreeable to the Company, the Bank and the Purchaser.

 

The foregoing conditions are for the benefit of the Company only and accordingly the Company will be entitled to waive compliance with any such conditions if it sees fit to do so, without prejudice to its rights and remedies at law and in equity and also without prejudice to any of its rights of termination or otherwise in the event of the failure to fulfill any other conditions in whole or in part.

 

Section 6.03. Mutual Condition.  The obligations of the Company and the Purchaser to complete the Contemplated Transactions are subject to the fulfillment or (to the extent permitted by law) waiver by both parties of the condition that no injunction or restraining order or other decision, ruling or order of a court, board, Governmental Authority or administrative tribunal of competent jurisdiction, and no applicable Legal Requirement, shall be in effect which prohibits, restrains, limits or imposes any condition on the transactions contemplated by this Agreement and no action or proceeding shall have been instituted or remain pending or have been threatened (without such threat having been withdrawn) before any such court, board, Governmental Authority or administrative tribunal seeking to restrain, prohibit, limit or impose any condition on the transactions contemplated by this Agreement.

 

Section 6.04. Termination.

 

(a) This Agreement may be terminated by the Company in the event that the Closing has not occurred on or before the Allowed Bidder Outside Date.

 

(b) This Agreement may also be terminated prior to the Closing:

 

(i) at any time by the mutual written agreement of the Company and the Purchaser;

 

(ii) by the Purchaser if there shall have been a breach of any of the covenants or agreements or any of the representations or warranties set forth in this Agreement on the part of the Company which breach, either individually or in the aggregate with other breaches by the Company, would result in, if occurring or continuing on the Closing Date, the failure of the conditions set forth in Section 6.01(a) or (b), as the case may be, and which is not cured within twenty (20) days following written notice to the Company thereof (and in any event prior to the Allowed Bidder Outside Date) or which by its nature or timing cannot be cured within such time period (provided, that the Purchaser is not then in material breach of any of the covenants, agreements, representations or warranties set forth in this Agreement on the part of the Purchaser);

 

  

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(iii) by the Company if there shall have been a breach of any of the covenants or agreements or any of the representations or warranties set forth in this Agreement on the part of the Purchaser which breach, either individually or in the aggregate with other breaches by the Purchaser, would result in, if occurring or continuing on the Closing Date, the failure of the conditions set forth in Section 6.02(a) or (b), as the case may be, and which is not cured within twenty (20) days following written notice to the Purchaser thereof (and in any event prior to the Allowed Bidder Outside Date) or which by its nature or timing cannot be cured within such time period (provided, that the Company is not then in material breach of any of the covenants, agreements, representations or warranties set forth in this Agreement on the part of the Company);

 

(iv) [Reserved]

 

(v) by either the Company or the Purchaser, if the Auction has occurred and the Purchaser is not the Successful Bidder and the Sale Order has been entered with respect to the Successful Bidder;

 

(vi) by either the Company or the Purchaser, with ten (10) days’ prior written notice or such shorter period as is required by a court or Governmental Authority, or any applicable Legal Requirement, if any court or Governmental Authority shall finally determine that the subject of this Agreement violates any applicable Legal Requirement and the terms of this Agreement cannot be amended to meet all legal requirements to the satisfaction of such court or Governmental Authority;

 

(vii) by either the Company or the Purchaser, if the Purchaser or any of its Affiliates receives written notice from or is otherwise advised by a Governmental Authority that it will not grant (or intends to rescind or revoke if previously approved) any of the Purchaser Required Approvals or receives written notice from or is otherwise advised by such Governmental Authority that it will not grant any such Purchaser Required Approval on the terms contemplated by this Agreement without imposing a Burdensome Condition;

 

(viii) by the Purchaser, if the Bankruptcy Case is converted to a liquidation proceeding under Chapter 7 of the Bankruptcy Code;

 

(ix) [Reserved]

 

(x) [Reserved]

 

(xi) by the Purchaser, if the Sale Order approving the Sale to the Purchaser has been entered but is stayed or stayed pending appeal or has been reversed or vacated as of such date, or if such Sale Order has been entered but has been amended, supplemented or otherwise modified without the prior written consent of the Purchaser on or before such date; or

 

(xii) by the Purchaser, if the Bankruptcy Court enters any Order materially inconsistent with the Bidding Procedures Order, the Sale Order or the Sale.

 

  

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(c) In the event that this Agreement is terminated, each of the parties and their respective officers, directors, employees, managers, partners, shareholders, members and principals shall be released from all obligations and liabilities under this Agreement.  Notwithstanding the foregoing, no party shall be released from its obligations or any liability for a willful and material breach of this Agreement (nor may either party terminate this Agreement if it has committed such a breach).  For purposes of this Agreement, a “willful and material breach” shall mean a material breach that is a consequence of an act undertaken by the breaching party with the prior intention or knowledge that the taking of such act is prohibited or not permitted by this Agreement.

 

ARTICLE 7

Closing Transactions

 

Section 7.01. Time and Place.  The Closing shall take place in the offices of the Bank, 425 W. Capitol Avenue, Little Rock, Arkansas 72201 at 10:00 a.m. Central Time on the Closing Date, or at such other time and date, or both, as the Company and the Purchaser or their respective counsel may agree upon in writing.

 

Section 7.02. Company’s Closing Deliverables.  At the Closing, the Company shall deliver the following to the Purchaser:

 

(a) stock certificates evidencing the Shares duly endorsed in blank, or accompanied by stock powers duly executed in blank and with all required stock transfer Tax stamps affixed;

 

(b) all conveyances, transfers, assignments, instruments and other documents which are necessary to assign, sell and transfer the Shares to the Purchaser and the Other Purchased Assets (including the assignment of the Assumed Bank Related Contracts, if any) to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, in either case as contemplated by this Agreement in such form and content as the Purchaser may require, acting reasonably;

 

(c) certified copies of a resolution of the directors of the Company approving the completion of the Contemplated Transactions including the sale of the Shares and the Other Purchased Assets (including the assignment of the Assumed Bank Related Contracts) and the execution and delivery of this Agreement and all documents, instruments and agreements required to be executed and delivered by the Company pursuant to this Agreement in such form and content as the Purchaser may require, acting reasonably;

 

(d) a certified copy of the Sale Order;

 

(e) a letter agreement, in form and substance reasonably satisfactory to the Purchaser, pursuant to which the Company, on its own behalf and on behalf of its Affiliates, irrevocably and unconditionally waives, releases and discharges any and all claims, counterclaims, demands, debts, costs, expenses (including reasonable legal fees and expenses), Liabilities, damages, obligations and causes of action of any kind or nature whatsoever, in each case whether absolute or contingent, liquidated or unliquidated, known or unknown, and whether arising under any agreement or understanding or otherwise in law or in equity, against the 

 

  

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Purchaser, the Bank and their respective Affiliates (and their successors and its and their respective officers, directors, employees, managers, partners, shareholders, members, and principals), other than Liabilities under this Agreement, and, in the case of the Bank or, if designated by the Purchaser, a Subsidiary of the Bank, the Assumed Contract Liabilities;

 

(f) an affidavit from the Company that it is not a “foreign person” or subject to withholding requirements under the Foreign Investment in Real Property Tax Act of 1980, as amended;

 

(g) pay-off letters in form and substance reasonably satisfactory to the Purchaser from each Person that has provided goods or services that might result in an obligation to pay any Bank Transaction Expenses; and

 

(h) a pay-off letter in form and substance reasonably satisfactory to the Purchaser from the Broker in respect of payment of the Broker’s Fees.

 

Section 7.03. Purchaser’s Closing Deliverables.  At the Closing, the Purchaser shall deliver the following to the Company (or, in the case of the Purchase Price, as set forth in Section 2.03):

 

(a) the Purchase Price as set forth in 2.03; and

 

(b) a letter agreement, in form and substance reasonably satisfactory to the Company, pursuant to which the Bank, on its own behalf and on behalf of its Affiliates, irrevocably and unconditionally waives, releases and discharges any and all claims, counterclaims, demands, debts, costs, expenses (including reasonable legal fees and expenses), Liabilities, damages, obligations and causes of action of any kind or nature whatsoever, in each case whether absolute or contingent, liquidated or unliquidated, known or unknown, and whether arising under any agreement or understanding or otherwise in law or in equity, against the Company and its Affiliates other than the Bank and its Subsidiaries (and their successors and its and their respective officers, directors, employees, managers, partners, shareholders, members, and principals), other than Liabilities under this Agreement.

 

Section 7.04. Concurrent Delivery.  It shall be a condition of the Closing that all matters of payment and the execution and delivery of documents, in each case, at Closing by any party to the other pursuant to the terms of this Agreement shall be concurrent requirements and that nothing will be complete at the Closing until everything required as a condition precedent to the Closing has been paid, executed and delivered, as the case may be.

 

Section 7.05. Transfer of Shares and Other Purchased Assets.  Subject to the terms and conditions set forth in this Agreement, and subject to the entry of a Sale Order, the Sale of the Shares to the Purchaser and the sale of the Other Purchased Assets (including the assignment of the Assumed Bank Related Contracts, if any) to the Bank or other designee of the Purchaser shall be deemed to take effect on the Closing Date.

 

  

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ARTICLE 8

Survival of Representations and Covenants

 

Section 8.01. Survival.  Subject to Section 6.04(c), (a) if this Agreement is terminated or the Sale is consummated in accordance with the terms of this Agreement, the provisions of Section 1.01, 2.03, Section 5.02, Section 5.03, Section 5.08, and Section 9.01, and, to the extent related to the foregoing, this Section 8.01, shall survive such termination or the Closing and remain in full force and effect, and (b) if the Sale is consummated in accordance with the terms of this Agreement, the provisions of Section 5.06 shall survive the Closing and remain in full force and effect.  All other representations, warranties, agreements and covenants shall be deemed to be conditions of the Agreement and shall not survive termination or the Closing.

 

ARTICLE 9

Miscellaneous

 

Section 9.01. Legal and Other Fees and Expenses.  Unless otherwise specifically provided herein, the Purchaser and the Company will pay their respective legal, accounting and other professional fees and expenses incurred by each of them in connection with the negotiation and settlement of this Agreement, the completion of the Contemplated Transactions and other matters pertaining hereto (the “Bank Transaction Expenses”), and the Company shall be deemed to have incurred (and therefore be responsible for payment of) all like costs and expenses of the Bank or its Subsidiaries.

 

Section 9.02. Notices.  Any notice, request, demand or other communication required or permitted to be given under this Agreement shall be in writing and delivered by hand, facsimile transmission or prepaid registered mail (return receipt requested) to the party to which it is to be given as follows:

 

To the Purchaser:

 

	
  

	
Simmons First National Corporation

	
  

	
501 Main Street

	
  

	
P. O. Box 7009

	
  

	
Pine Bluff, Arkansas 71611

	
  

	
Attention:  George A. Makris

	
  

	
Facsimile No.: (870) 850-2685

 

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

 

	
  

	
Quattlebaum, Grooms Tull & Burrow PLLC

	
  

	
111 Center Street, Suite 1900

	
  

	
Little Rock, Arkansas 72201

	
  

	
Attention:  Patrick A, Burrow

	
  

	
Facsimile No.:  (501) 379-3815

 

  

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To the Company:

 

	
  

	
Rogers Bancshares, Inc.

	
  

	
425 W Capitol Avenue

	
  

	
Little Rock, Arkansas 72201

	
  

	
Attention:  Doyle W. Rogers, Jr., Vice President

	
  

	
Facsimile No.:  (501) 377-7434

 

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

 

	
  

	
Fenimore, Kay, Harrison & Ford, LLP

	
  

	
812 San Antonio Street, Suite 600

	
  

	
Austin, Texas 78701

	
  

	
Attention:  Chet A. Fenimore

	
  

	
Facsimile No.:  (512) 583-5940

 

Bracewell & Giuliani LLP

1445 Ross Avenue, Suite 3800

Dallas, Texas 75202-2711

Attention:  Samuel M. Stricklin

Attention:  Sanford M. Brown

Facsimile No.:  (214) 758-8395

 

Williams & Anderson PLC

111 Center Street, Twenty-second Floor

Little Rock, Arkansas 72201

Attention:  W. Jackson Williams

Facsimile No.:  (501) 372-6453

 

or to such other address or fax number as a party may specify by notice given in accordance with this Section 9.02.  Any such notice, request, demand or other communication given as aforesaid will be deemed to have been given, in the case of delivery by hand or registered mail, when delivered, or, in the case of delivery by facsimile transmission, when a legible facsimile is received by the recipient, in each case, if delivered or received before 5:00 p.m. local time on a Business Day, or on the next Business Day if delivered or received on a day which is not a Business Day or after 5:00 p.m. local time on a Business Day.

 

Section 9.03. Further Assurances.  Each of the parties shall execute and deliver such further documents, instruments and agreements and do such further acts and things as may be reasonably required from time to time, either before, on or after the Closing Date, to carry out the full intent and meaning of this Agreement, give effect to the transactions contemplated by this Agreement and assure to the Purchaser good and valid title to the Shares, free and clear of all Encumbrances, and assure to the Bank or, if designated by the Purchaser, a Subsidiary of the Bank good and valid title to the Other Purchased Assets (including the assignment of the Assumed Bank Related Contracts, if any), free and clear of all Encumbrances.  The Company shall seek to enforce its rights under any third party nondisclosure or confidentiality agreements, including, prior to the entry of the Bidding Procedures Order, any standstill provisions thereof.

 

  

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Section 9.04. Time of the Essence.  Time shall be of the essence of this Agreement.

 

Section 9.05. Entire Agreement.  This Agreement (and all related documents referred to herein, including the schedules and exhibits hereto) constitutes the entire agreement between the Company and the Purchaser pertaining to the Contemplated Transactions and supersedes all prior agreements, undertakings, negotiations and discussions, whether oral or written, of the Company and the Purchaser and there are no warranties, representations, covenants, obligations or agreements between the Company (or any Affiliate thereof) and the Purchaser (or any Affiliate thereof) except as set forth in this Agreement (or any such related document).

 

Section 9.06. Assignment.  Neither party to this Agreement may assign any of its respective benefits, obligations or liabilities under or in respect of this Agreement without the prior written consent of the other party, which may be withheld in its absolute discretion; provided, however, that the Purchaser may, without the consent of the Company, assign its rights, benefits and obligations under or in respect of this Agreement, in whole or in part, to one or more of its Affiliates if and to the extent permitted by the Bankruptcy Court, but no such assignment will relieve Purchaser of its obligations under this Agreement; and provided, further, that no such assignment shall be permitted under this Section 9.06 if (i) such assignment would be reasonably likely to materially impede or delay the receipt of any Purchaser Required Approval, or the consummation of the transactions contemplated by this Agreement, and (ii) the proposed assignee cannot make the same representations to the Company as the Purchaser under Article 4 of this Agreement.  Any attempted assignment without the necessary consent shall be void.

 

Section 9.07. Invalidity.  Each of the provisions contained in this Agreement is distinct and severable and a determination of illegality, invalidity or unenforceability of any such provision or part hereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof, unless as a result of such determination this Agreement would fail in its essential purposes.

 

Section 9.08. Waiver and Amendment.  Except as expressly provided in this Agreement, no amendment or waiver of it will be binding unless made in writing by the party to be bound by such amendment or waiver.  No waiver of any provision, or any portion of any provision, of this Agreement will constitute a waiver of any other part of the provision or any other provision of this Agreement, nor a continuing waiver unless otherwise expressly provided.

 

Section 9.09. Third-Party Beneficiaries.  This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein express or implied shall give or be construed to give to any Person, other than the parties hereto and such permitted assigns, any legal or equitable rights hereunder; provided, however, that the current directors and officers of the Company and the Bank included in the term “Indemnified Parties” shall be deemed to be third-party beneficiaries of the provisions of Section 5.06.

 

Section 9.10. Captions.  The captions in this Agreement are inserted for convenience of reference only and shall not be considered a part of or affect the construction or interpretation of any provision of this Agreement.

 

  

-62-

  

Section 9.11. Counterparts.  This Agreement may be signed in counterparts and each such counterpart will constitute an original document and such counterparts, taken together, will constitute one and the same instrument.  Electronically transmitted or facsimile copies shall be deemed to be originals.

 

Section 9.12. Specific Performance.  The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled (without the requirement to post bond) to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section 9.13. Jurisdiction.  The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States Bankruptcy Court for the Eastern District of Arkansas, Little Rock Division, so long as such court shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Arkansas, and each of the parties hereby irrevocably consents to the jurisdiction of such court (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in such court or that any such suit, action or proceeding brought in such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of such court.

 

Section 9.14. Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

  

-63-

  

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

 

	 	

ROGERS BANCSHARES, INC.

	 	 	 
	 	 	 
	 	By:	/s/ Susan F. Smith
	 	 	

Susan F. Smith

Secretary

 

 

 

 

 

 

 

  

[Signature Page to Stock Purchase Agreement]

  

 

	 	

SIMMONS FIRST NATIONAL CORPORATION

	 	 	 
	 	 	 
	 	By:	 /s/ George A. Makris
	 	 	

George A. Makris, CEO-Elect

 

 

 

 

 

 

 

 

 

  

[Signature Page to Stock Purchase Agreement]

  

Section 5.27 of Disclosure Schedule

Simmons Severance Policy for Metropolitan National Bank Acquisition

Eligible associates who are not offered a comparable position by Simmons First National Bank will receive severance pay based on the chart below:

 

	 	
1 full year of service – 19 years

	
1 week per full year of service

	 	
20 full years of service

	
21 weeks

	 	
21 full years of service

	
23 weeks

	 	
22 full years of service

	
25 weeks

	 	
23 full years of service

	
27 weeks

	 	
24 full years of service

	
29 weeks

	 	
25 full years of service

	
31 weeks

	 	
26 full years of service

	
33 weeks

	 	
27 full years of service

	
35 weeks

	 	
28 or more full years of service

	
36 weeks

All severance payments will be made in regular intervals in accordance with the bank’s standard payroll practices and procedures.  Payments will be made through OnCall Staffing, the bank’s payroll contractor.  No payments will be eligible for non-required deductions.  At the associate’s election, medical insurance may be continued through the end of the severance period.  The associate’s portion of the medical premium, which is 30% for individual coverage and 40% for family coverage, will be deducted from the associate’s payroll.  Simmons First will pay the balance of those premiums.

At closing, all Metropolitan National Bank employees will be temporarily employed by OnCall Staffing for the benefit of Simmons First National Bank.  Starting January 1, 2014, Simmons First National Bank will offer regular employment to selected former employees of Metropolitan National Bank.  Any such former employee of Metropolitan National Bank who has not been offered a comparable position of regular employment with Simmons First National Bank within 120 days after the closing shall be entitled to severance offer under this policy.  No employee who resigns or is terminated for cause shall be eligible for severance payments under this policy.  Additionally, the associate must perform his/her current position to the best of his/her abilities through the date he/she is released from employment.  Further, the associate must sign and not revoke a general release.

Comparable position is defined as a position within any Simmons First National Bank branch or subsidiary which has a base pay of 85% of the associate’s base pay at time of acquisition and which is within 45 miles of the associate’s work location at the time of acquisition.EX-10.1

 Exhibit 10.1 

DEAL CUSIP NUMBER: 21664UAF3 
  

 
  

TERM LOAN AGREEMENT 

dated as of 

September 12, 2013 

among 
 THE COOPER
COMPANIES, INC., 
 as the Borrower, 

THE LENDERS NAMED HEREIN, 

as Lenders, 

KEYBANK NATIONAL ASSOCIATION, 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

DNB BANK ASA, NEW YORK BRANCH, 

as Co-Lead Arrangers, 

KEYBANK NATIONAL ASSOCIATION, 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

DNB BANK ASA, NEW YORK BRANCH, 

as Co-Bookrunners, 

BANK OF AMERICA, N.A., 

DNB BANK ASA, NEW YORK BRANCH, 

as Co-Syndication Agents, 

UNION BANK, N.A., 
 HSBC
BANK USA, N.A., 
 as Co-Documentation Agents, 

and 
 KEYBANK NATIONAL
ASSOCIATION, 
 as the Administrative Agent 

$300,000,000 Term Loan Facility 
  

 
  

							
	 ARTICLE I.
	  	DEFINITIONS AND TERMS	  	 	1	  
			
	 Section 1.01
	  	        Certain Defined Terms	  	 	1	  
	 Section 1.02
	  	        Computation of Time Periods	  	 	24	  
	 Section 1.03
	  	        Accounting Terms	  	 	24	  
	 Section 1.04
	  	        Terms Generally	  	 	24	  
	 Section 1.05
	  	        Currency Equivalents	  	 	24	  
			
	 ARTICLE II.
	  	THE TERMS OF THE CREDIT FACILITY	  	 	25	  
			
	 Section 2.01
	  	        Establishment of the Credit Facility	  	 	25	  
	 Section 2.02
	  	        Loans	  	 	25	  
	 Section 2.03
	  	        Notice of Borrowing	  	 	25	  
	 Section 2.04
	  	        Funding Obligations; Disbursement of Funds	  	 	26	  
	 Section 2.05
	  	        Evidence of Obligations	  	 	27	  
	 Section 2.06
	  	        Interest; Default Rate	  	 	27	  
	 Section 2.07
	  	        Conversion and Continuation of Loans	  	 	28	  
	 Section 2.08
	  	        Fees	  	 	28	  
	 Section 2.09
	  	        Termination of Commitments	  	 	29	  
	 Section 2.10
	  	        Payments and Prepayments of Loans	  	 	29	  
	 Section 2.11
	  	        Method and Place of Payment	  	 	32	  
	 Section 2.12
	  	        Defaulting Lenders	  	 	32	  
			
	 ARTICLE III.
	  	INCREASED COSTS, ILLEGALITY AND TAXES	  	 	33	  
			
	 Section 3.01
	  	        Increased Costs, Illegality, etc.	  	 	33	  
	 Section 3.02
	  	        Breakage Compensation	  	 	35	  
	 Section 3.03
	  	        Net Payments	  	 	36	  
	 Section 3.04
	  	        Change of Lending Office; Replacement of Lenders	  	 	38	  
			
	 ARTICLE IV.
	  	CONDITIONS PRECEDENT	  	 	39	  
			
	 Section 4.01
	  	        Conditions Precedent at Closing Date	  	 	39	  
	 Section 4.02
	  	        Conditions Precedent to Credit Events after Closing Date	  	 	40	  
			
	 ARTICLE V.
	  	REPRESENTATIONS AND WARRANTIES	  	 	41	  
			
	 Section 5.01
	  	        Corporate Status	  	 	41	  
	 Section 5.02
	  	        Corporate Power and Authority	  	 	41	  
	 Section 5.03
	  	        No Violation	  	 	41	  
	 Section 5.04
	  	        Governmental Approvals	  	 	42	  
	 Section 5.05
	  	        Litigation	  	 	42	  
	 Section 5.06
	  	        Use of Proceeds; Margin Regulations	  	 	42	  
	 Section 5.07
	  	        Financial Statements	  	 	42	  
	 Section 5.08
	  	        Solvency	  	 	43	  
	 Section 5.09
	  	        No Material Adverse Change	  	 	43	  
	 Section 5.10
	  	        Tax Returns and Payments	  	 	43	  
	 Section 5.11
	  	        Title to Properties, etc.	  	 	43	  
	 Section 5.12
	  	        Lawful Operations, etc.	  	 	44	  
	 Section 5.13
	  	        Environmental Matters	  	 	44	  
	 Section 5.14
	  	        Compliance with ERISA	  	 	44	  
	 Section 5.15
	  	        Intellectual Property, etc.	  	 	45	  
	 Section 5.16
	  	        Investment Company Act, etc.	  	 	45	  
	 Section 5.17
	  	        Insurance	  	 	45	  
	 Section 5.18
	  	        True and Complete Disclosure	  	 	45	  

  
 i 

							
	 Section 5.19
	  	        Defaults	  	 	45	  
	 Section 5.20
	  	        Anti-Terrorism Law Compliance	  	 	45	  
			
	ARTICLE VI.	  	AFFIRMATIVE COVENANTS	  	 	45	  
			
	 Section 6.01
	  	        Reporting Requirements	  	 	46	  
	 Section 6.02
	  	        Books, Records and Inspections	  	 	48	  
	 Section 6.03
	  	        Insurance	  	 	49	  
	 Section 6.04
	  	        Payment of Taxes and Claims	  	 	49	  
	 Section 6.05
	  	        Corporate Franchises	  	 	49	  
	 Section 6.06
	  	        Good Repair	  	 	49	  
	 Section 6.07
	  	        Compliance with Statutes, etc.	  	 	50	  
	 Section 6.08
	  	        Compliance with Environmental Laws	  	 	50	  
	 Section 6.09
	  	        Certain Domestic Subsidiaries to Join in Subsidiary Guaranty	  	 	50	  
	 Section 6.10
	  	        Senior Indebtedness	  	 	51	  
			
	ARTICLE VII.	  	NEGATIVE COVENANTS	  	 	51	  
			
	 Section 7.01
	  	        Changes in Business	  	 	51	  
	 Section 7.02
	  	        Consolidation, Merger, Acquisitions, Asset Sales, etc.	  	 	51	  
	 Section 7.03
	  	        Liens	  	 	52	  
	 Section 7.04
	  	        Indebtedness	  	 	53	  
	 Section 7.05
	  	        Investments and Guaranty Obligations	  	 	54	  
	 Section 7.06
	  	        Restricted Payments	  	 	55	  
	 Section 7.07
	  	        Financial Covenants	  	 	56	  
	 Section 7.08
	  	        Limitation on Certain Restrictive Agreements	  	 	56	  
	 Section 7.09
	  	        Transactions with Affiliates	  	 	57	  
	 Section 7.10
	  	        Plan Terminations, Minimum Funding, etc.	  	 	57	  
	 Section 7.11
	  	        Anti-Terrorism Laws	  	 	57	  
	 Section 7.12
	  	        Modifications to Certain Agreements	  	 	58	  
			
	ARTICLE VIII.	  	EVENTS OF DEFAULT	  	 	58	  
			
	 Section 8.01
	  	        Events of Default	  	 	58	  
	 Section 8.02
	  	        Remedies	  	 	59	  
	 Section 8.03
	  	        Application of Certain Payments and Proceeds	  	 	60	  
			
	ARTICLE IX.	  	THE ADMINISTRATIVE AGENT AND OTHER AGENTS	  	 	60	  
	 Section 9.01
	  	        Appointment	  	 	60	  
	 Section 9.02
	  	        Delegation of Duties	  	 	61	  
	 Section 9.03
	  	        Exculpatory Provisions	  	 	61	  
	 Section 9.04
	  	        Reliance by Administrative Agent	  	 	61	  
	 Section 9.05
	  	        Notice of Default	  	 	62	  
	 Section 9.06
	  	        Non-Reliance	  	 	62	  
	 Section 9.07
	  	        No Reliance on Administrative Agent’s Customer Identification Program	  	 	62	  
	 Section 9.08
	  	        USA Patriot Act	  	 	63	  
	 Section 9.09
	  	        Indemnification	  	 	63	  
	 Section 9.10
	  	        The Administrative Agent in its Individual Capacity	  	 	63	  
	 Section 9.11
	  	        Successor Administrative Agent	  	 	63	  
	 Section 9.12
	  	        Other Agents	  	 	64	  
			
	ARTICLE X.	  	RESERVED	  	 	64	  
			
	ARTICLE XI.	  	MISCELLANEOUS	  	 	64	  

  
 ii 

							
	 Section 11.01
	  	        Payment of Expenses, etc.	  	 	64	  
	 Section 11.02
	  	        Indemnification	  	 	65	  
	 Section 11.03
	  	        Right of Setoff	  	 	65	  
	 Section 11.04
	  	        Equalization	  	 	65	  
	 Section 11.05
	  	        Notices	  	 	66	  
	 Section 11.06
	  	        Successors and Assigns	  	 	67	  
	 Section 11.07
	  	        No Waiver; Remedies Cumulative	  	 	70	  
	 Section 11.08
	  	        Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial	  	 	70	  
	 Section 11.09
	  	        Counterparts	  	 	71	  
	 Section 11.10
	  	        Integration	  	 	71	  
	 Section 11.11
	  	        Headings Descriptive	  	 	71	  
	 Section 11.12
	  	        Amendment or Waiver	  	 	71	  
	 Section 11.13
	  	        Survival of Indemnities	  	 	73	  
	 Section 11.14
	  	        Domicile of Loans	  	 	73	  
	 Section 11.15
	  	        Confidentiality	  	 	73	  
	 Section 11.16
	  	        General Limitation of Liability	  	 	74	  
	 Section 11.17
	  	        Lenders and Agent Not Fiduciary to Borrowers, etc.	  	 	74	  
	 Section 11.18
	  	        Survival of Representations and Warranties	  	 	74	  
	 Section 11.19
	  	        Severability	  	 	74	  
	 Section 11.20
	  	        Independence of Covenants	  	 	74	  
	 Section 11.21
	  	        Interest Rate Limitation	  	 	74	  
	 Section 11.22
	  	        USA Patriot Act	  	 	75	  

  
 iii 

 EXHIBITS 
  

			
	Exhibit A	  	Note
	Exhibit B-1	  	Notice of Borrowing
	Exhibit B-2	  	Notice of Continuation or Conversion
	Exhibit C	  	Subsidiary Guaranty of Payment
	Exhibit D	  	Compliance Certificate
	Exhibit E	  	Closing Certificate
	Exhibit F	  	Solvency Certificate
	Exhibit G	  	Form of Assignment Agreement

 SCHEDULES 
  

			
	Schedule 1	  	Lenders and Commitments
	Schedule 2	  	Subsidiary Guarantors as of the Closing Date
	Schedule 5.01	  	Corporate Information
	Schedule 5.05	  	Litigation
	Schedule 7.03	  	Liens Existing as of the Closing Date
	Schedule 7.04	  	Indebtedness
	Schedule 7.05	  	Investments

  
 iv 

 TERM LOAN AGREEMENT 

THIS TERM LOAN AGREEMENT is entered into as of September 12, 2013, among THE COOPER COMPANIES, INC., a Delaware corporation (the
“Borrower”); the lenders from time to time party hereto (each a “Lender” and collectively, the “Lenders”); KEYBANK NATIONAL ASSOCIATION (“KeyBank”), MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED (“MLPFS”) and DNB BANK ASA, NEW YORK BRANCH (“DNB”, and together with KeyBank and MLPFS, collectively, in such capacity, the “Co-Lead Arrangers” and,
individually, each a “Co-Lead Arranger”), each as a lead arranger; KeyBank, MLPFS and DNB, each as a co-bookrunner (in such capacity, a “Co-Bookrunner”); BANK OF AMERICA, N.A. (“Bank of America”)
and DNB, each as a co-syndication agent (in such capacity, a “Co-Syndication Agent”); UNION BANK, N.A. and HSBC BANK USA, N.A., each as a co-documentation agent (in such capacity, a “Co-Documentation Agent”); and
KeyBank, as administrative agent (in such capacity, the “Administrative Agent”). 
 RECITALS: 

(1) The Borrower has requested that the Lenders extend credit to the Borrower to (i) refinance certain indebtedness of the Borrower and
its Subsidiaries and (ii) provide working capital and funds for general corporate purposes of the Borrower and its Subsidiaries. 
 (2)
Subject to and upon the terms and conditions set forth herein, the Lenders are willing to extend credit and make available to the Borrower the credit facility provided for herein for the foregoing purposes. 

AGREEMENT: 
 In consideration of
the premises and the mutual covenants contained herein, the parties hereto agree as follows: 
 ARTICLE I. 

DEFINITIONS AND TERMS 

Section 1.01 Certain Defined Terms. As used herein, the following terms shall have the meanings herein specified unless the context
otherwise requires: 
 “Acquisition” means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (i) the acquisition of all or substantially all of the assets of any Person, or any business line or unit or division of any Person, or (ii) the acquisition or ownership of in excess of 50% of the
Equity Interest of any Person, in each case whether by purchase, merger, consolidation, amalgamation or any other combination with such Person. 

“Adjusted Eurodollar Rate” means with respect to each Interest Period for a Eurodollar Loan, (i) the rate per annum
equal to the offered rate appearing on the applicable electronic page of Reuters (or on the appropriate page of any successor to or substitute for such service, or, if such rate is not available, on the appropriate page of any generally recognized
financial information service, as selected by the Administrative Agent from time to time) that displays an average British Bankers Association Interest Settlement Rate (such page currently being LIBOR1 page) at approximately 11:00 A.M. (London time)
two Business Days prior to the commencement of such Interest Period, for deposits in Dollars with a maturity comparable to such Interest Period, divided by (ii) a percentage equal to 100% minus the then stated maximum rate of all reserve
requirements (including, without limitation, any marginal, emergency, 

 
supplemental, special or other reserves and without benefit of credits for proration, exceptions or offsets that may be available from time to time) applicable to any member bank of the Federal
Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D); provided, however, that in the event that the rate referred to in clause (i) above is
not available at any such time for any reason, then the rate referred to in clause (i) shall instead be the interest rate per annum, as determined by the Administrative Agent, to be the average of the rates per annum at which deposits in
Dollars in an amount equal to the amount of such Eurodollar Loan are offered to major banks in the London interbank market at approximately 11:00 A.M. (London time), two Business Days prior to the commencement of such Interest Period, for contracts
that would be entered into at the commencement of such Interest Period for the same duration as such Interest Period. 

“Administrative Agent” has the meaning provided in the first paragraph of this Agreement and includes any successor to the
Administrative Agent appointed pursuant to Section 9.11. 
 “Administrative Agent Fee Letter” means the Fee Letter
dated as of August 29, 2013, between the Borrower and the Administrative Agent. 
 “Affiliate” means, with respect to
any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with such Person, or, in the case of any Lender that is an investment fund, the investment advisor thereof and any investment
fund having the same investment advisor. A Person shall be deemed to control a second Person if such first Person possesses, directly or indirectly, the power (i) to vote 10% or more of the securities having ordinary voting power for the
election of directors or managers of such second Person or (ii) to direct or cause the direction of the management and policies of such second Person, whether through the ownership of voting securities, by contract or otherwise. Notwithstanding
the foregoing, neither the Administrative Agent nor any Lender shall in any event be considered an Affiliate of the Borrower or any of its Subsidiaries. 

“Agent” means a Co-Bookrunner, the Documentation Agent, a Co-Lead Arranger or a Co-Syndication Agent, in each case, in its
capacity as such. 
 “Agreement” means this Credit Agreement, including any exhibits or schedules hereto, as the same may
from time to time be amended, restated, amended and restated, supplemented or otherwise modified. 
 “Anti-Terrorism Law”
means the USA Patriot Act or any other law pertaining to the prevention of future acts of terrorism, in each case as such law may be amended from time to time. 

“Applicable Lending Office” means, with respect to each Lender, the office designated by such Lender to the Administrative
Agent as such Lender’s lending office for purposes of this Agreement. A lender may have a different Applicable Lending Office for Base Rate Loans and Eurodollar Loans. 

“Applicable Margin” means: 

(i) On the Closing Date and thereafter, the Administrative Agent shall determine the Applicable Margin in accordance with the following
matrix, based on the Total Leverage Ratio: 

  
 2 

							
	 Level
	  	 Total Leverage Ratio
	  	Loans that are
Base Rate Loans	  	Loans that are
Eurodollar Loans
	 I
	  	Less than 1.00 to 1.00	  	00.00 bps	  	75.00 bps
	 II
	  	Greater than or equal to 1.00 to 1.00, but less than 1.50 to 1.00	  	00.00 bps	  	87.50 bps
	 III
	  	Greater than or equal to 1.50 to 1.00, but less than 2.00 to 1.00	  	00.00 bps	  	100.00 bps
	 IV
	  	Greater than or equal to 2.00 to 1.00, but less than 2.50 to 1.00	  	12.50 bps	  	112.50 bps
	 V
	  	Greater than or equal to 2.50 to 1.00, but less than 3.00 to 1.00	  	37.50 bps	  	137.50 bps
	 VI
	  	Greater than or equal to 3.00 to 1.00	  	50.00 bps	  	150.00 bps

 (ii) Changes in the Applicable Margin based upon changes in the Total Leverage Ratio shall become effective on
the Business Day following the receipt by the Administrative Agent pursuant to Section 6.01(a) or Section 6.01(b) of the financial statements of the Borrower for the Testing Period most recently ended, accompanied by a Compliance
Certificate in accordance with Section 6.01(c), demonstrating the computation of the Total Leverage Ratio. Notwithstanding the foregoing provisions, during any period when the Borrower has failed to timely deliver its consolidated financial
statements referred to in Section 6.01(a) or Section 6.01(b), accompanied by a Compliance Certificate in accordance with Section 6.01(c) (and only until the delivery thereof), the Applicable Margin shall be the highest number of basis
points indicated therefor in the above matrix, regardless of the Total Leverage Ratio at such time. The above matrix does not modify or waive, in any respect, the rights of the Administrative Agent and the Lenders to charge any default rate of
interest or any of the other rights and remedies of the Administrative Agent and the Lenders hereunder. 
 Notwithstanding the foregoing or
anything else in this Agreement to the contrary, to the extent that any of the information contained in the financial statements required to be delivered hereunder shall be incorrect in any manner and as a result thereof (or for any other reason),
the Total Leverage Ratio was determined incorrectly for any period, then the Administrative Agent shall recalculate the Total Leverage Ratio based upon the correct information and shall recalculate the Applicable Margin for the relevant periods and
the Borrower shall be required to pay on demand by the Administrative Agent any amounts the Borrower should have paid had the Applicable Margin been calculated correctly for such periods (or, to the extent that the Borrower has paid any amounts in
excess of the amounts the Borrower should have paid, then the Lenders shall credit such over-payment to the Indebtedness owing by the Borrower to each such Lender). 

“Approved Bank” has the meaning provided in subpart (ii) of the definition of “Cash Equivalents.” 

“Approved Fund” means a fund that is engaged in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit and that is administered, advised or managed by a Lender, an Affiliate of a Lender, or an entity or an Affiliate of an entity that advises, administers or manages a Lender. 

“Asset Sale” means the sale, lease, transfer or other disposition (including by means of Sale and Lease-Back Transactions,
and by means of mergers, consolidations, amalgamations and liquidations of a corporation, partnership or limited liability company of the interests therein of the Borrower or any Subsidiary) by the Borrower or any Subsidiary to any Person of any of
the Borrower’s or such 

  
 3 

 
Subsidiary’s respective assets, provided that the term Asset Sale specifically excludes (i) any sales, transfers or other dispositions of inventory, or obsolete, worn-out or
excess furniture, fixtures, equipment or other property, real or personal, tangible or intangible, in each case in the ordinary course of business, and (ii) the actual or constructive total loss of any property or the use thereof resulting from
any Event of Loss. 
 “Assignment Agreement” means an Assignment Agreement substantially in the form of
Exhibit G hereto. 
 “Authorized Officer” means (i) with respect to the Borrower, any of the following
officers: the Chairman, the President, the Chief Executive Officer, the Chief Financial Officer, the Chief Administrative Officer, the Treasurer, the Assistant Treasurer or the Controller, and (ii) with respect to any Subsidiary of the
Borrower, the President, the Chief Financial Officer, the Chief Administrative Officer or the Treasurer of such Subsidiary or such other Person as is authorized in writing to act on behalf of such Subsidiary and is acceptable to the Administrative
Agent. Unless otherwise qualified, all references herein to an Authorized Officer shall refer to an Authorized Officer of the Borrower. 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or
any successor thereto, as hereafter amended. 
 “Base Rate” means, for any day, a fluctuating interest rate per annum as
shall be in effect from time to time which rate per annum shall at all times be equal to the greatest of (i) the rate of interest established by the Administrative Agent, from time to time, as its “prime rate,” whether or not publicly
announced, which interest rate may or may not be the lowest rate charged by it for commercial loans or other extensions of credit, (ii) the Federal Funds Effective Rate in effect from time to time, determined one Business Day in arrears,
plus 1/2 of 1% per annum and (iii) the Adjusted Eurodollar Rate for a one month Interest Period on such day plus 1.00%. 

“Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate in effect from time to time. 

“Board” means the Board of Governors of the Federal Reserve System of the United States. 

“Board of Directors” means, with respect to any Person, (i) in the case of any corporation, the board of directors of
such Person, (ii) in the case of any limited liability company, the board of managers or board of directors, as applicable, of such Person, or if such limited liability company does not have a board of managers or board of directors, the
functional equivalent of the foregoing, (iii) in the case of any partnership, the board of directors or board of managers, as applicable, of the general partner of such Person and (iv) in any other case, the functional equivalent of the
foregoing. 
 “Borrower” has the meaning specified in the first paragraph of this Agreement. 

“Borrowing” means the incurrence of Loans consisting of one Type of Loan by the Borrower from all of the Lenders on a pro
rata basis on a given date (or resulting from Conversions or Continuations on a given date), having in the case of Eurodollar Loans the same Interest Period. 

“Business Day” means (i) any day other than Saturday, Sunday or any other day on which commercial banks in San
Francisco, California or New York, New York are authorized or required by law to close and (ii) with respect to any matters relating to Eurodollar Loans, any day on which dealings in Dollars are carried on in the London interbank market. 

  
 4 

 “Capital Distribution” means (i) a Share Repurchase or (ii) a payment
made, liability incurred or other consideration given as a dividend, return of capital or other distribution in respect of any of the Borrower’s or any of its Subsidiary’s Equity Interests. 

“Capital Lease” as applied to any Person means any lease of any property (whether real, personal or mixed) by that Person as
lessee that, in conformity with GAAP, should be accounted for as a capital lease on the balance sheet of that Person. 

“Capitalized Lease Obligations” means all obligations under Capital Leases of the Borrower or any of its Subsidiaries,
without duplication, in each case taken at the amount thereof accounted for as liabilities identified as “capital lease obligations” (or any similar words) on a consolidated balance sheet of the Borrower and its Subsidiaries prepared in
accordance with GAAP. 
 “Cash Equivalents” means any of the following: 

(i) securities issued or directly and fully guaranteed or insured, as to interest and principal, 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), and securities that are the direct obligations of any member state of the European Union
or any other sovereign nation, which at the time of acquisition thereof, was not targeted for sanctions by the Office of Foreign Assets Control of the United States Department of the Treasury so long as the full faith of and credit of such nation is
pledged in support thereof, in each case having maturities of not more than one year from the date of acquisition; 
 (ii)
Dollar denominated time deposits, eurodollar time deposits, certificates of deposit and bankers’ acceptances of (x) any Lender, (y) any domestic or foreign commercial bank (or U.S. branch thereof) having capital and surplus in excess
of $250,000,000 or (z) any bank (or the parent company of such bank) whose short-term commercial paper rating from S&P is at least A-1, A-2 or the equivalent thereof or from Moody’s is at least P-1, P-2 or the equivalent thereof or an
equivalent rating from a comparable foreign rating agency (any such bank, an “Approved Bank”); 
 (iii)
commercial paper issued by any Lender or Approved Bank or by the parent company of any Lender or Approved Bank and commercial paper issued by, or guaranteed by, any industrial or financial company with a short-term commercial paper rating of at
least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s or an equivalent rating from a comparable foreign rating agency, or guaranteed by any industrial company with a long-term unsecured debt rating
of at least A or A2, or the equivalent of each thereof, from S&P or Moody’s or an equivalent rating from a comparable foreign rating agency; 

(iv) fully collateralized repurchase agreements entered into with any Lender or Approved Bank having a term of not more than 90
days and covering securities described in clause (i) above; 
 (v) investments in money market funds substantially all
the assets of which are comprised of securities of the types described in clauses (i) through (iv) above or money market funds that (a) comply with the criteria set forth in Securities and Exchange Conversion Rule 2a-7 under the
Investment Company Act of 1940, (b) are rated “AAA” by S&P and “Aaa” by Moody’s and (b) have portfolio assets of at least $2,000,000,000; 

  
 5 

 (vi) investments in money market funds access to which is provided as part of
“sweep” accounts maintained with a Lender or an Approved Bank; 
 (vii) investments in industrial development
revenue bonds that (A) “re-set” interest rates not less frequently than quarterly, (B) are entitled to the benefit of a remarketing arrangement with an established broker dealer, and (C) are supported by a direct pay letter
of credit covering principal and accrued interest that is issued by an Approved Bank; 
 (viii) investments in pooled funds
or investment accounts consisting of investments of the nature described in the foregoing clause (vii); 
 (ix) securities
with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States of America, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least “A” by S&P or “A” by
Moody’s; 
 (x) securities with maturities of one year or less from the date of acquisition backed by standby letters of
credit issued by any Lender or any Approved Bank or that are fully cash collateralized, prefunded or fully insured; and 

(xi) in the case of Subsidiaries doing business outside of the United States of America, substantially similar investments to
those set forth in clauses (i) through (x) above denominated in foreign currencies. 
 “CERCLA” means the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as the same may be amended from time to time, 42 U.S.C. § 9601 et seq. 

“Change of Control” means (i) the acquisition of ownership or voting control, directly or indirectly, beneficially or of
record, on or after the Closing Date, by any Person or group (within the meaning of Rule 13d-3 of the SEC under the 1934 Act, as then in effect), of shares representing more than 25% of the aggregate ordinary Voting Power represented by the issued
and outstanding capital stock of the Borrower; or (ii) the occupation of a majority of the seats (other than vacant seats) on the Board of Directors of the Borrower by Persons who were neither (A) nominated by the Board of Directors of the
Borrower nor (B) appointed by directors so nominated. 
 “Charges” has the meaning provided in Section 11.21.

 “CIP Regulations” has the meaning provided in Section 9.07. 

“Claims” has the meaning set forth in the definition of “Environmental Claims.” 

“Closing Date” means September 12, 2013. 

“Co-Bookrunner” has the meaning provided in the first paragraph of this Agreement. 

“Co-Documentation Agent” has the meaning provided in the first paragraph of this Agreement. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and the rulings
issued thereunder. Section references to the Code are to the Code 

  
 6 

 
as in effect at the Closing Date and any subsequent provisions of the Code, amendatory thereof, supplemental thereto or substituted therefor. 

“Co-Lead Arranger” has the meaning provided in the first paragraph of this Agreement. 

“Commitment” means, with respect to each Lender, the amount set forth opposite such Lender’s name in Schedule 1 hereto
as its “Commitment” or in the case of any Lender that becomes a party hereto pursuant to an Assignment Agreement, the amount set forth in such Assignment Agreement, as such commitment may be reduced from time to time as a result of
assignments to or from such Lender pursuant to Section 11.06. For the avoidance of doubt, the Commitment of each Lender shall be reduced to zero on the Funding Date after the Borrowings on such date have been made. 

“Commodities Hedge Agreement” means a commodities contract purchased by the Borrower or any of its Subsidiaries in the
ordinary course of business, and not for speculative purposes, with respect to raw materials necessary to the manufacturing or production of goods in connection with the business of the Borrower and its Subsidiaries. 

“Compliance Certificate” has the meaning provided in Section 6.01(c). 

“Confidential Information” has the meaning provided in Section 11.15(b). 

“Consideration” means, in connection with an Acquisition, the aggregate consideration paid, including borrowed funds, cash,
the issuance of securities or notes, the assumption or incurring of liabilities (direct or contingent), the payment of consulting fees (excluding any fees payable to any investment banker in connection with such Acquisition) or fees for a covenant
not to compete and any other consideration paid for the purchase. 
 “Consolidated Depreciation and Amortization Expense”
means, for any period, all depreciation and amortization expenses of the Borrower and its Subsidiaries, all as determined for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP. 

“Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus the aggregate amounts
deducted in determining such Consolidated Net Income in respect of (i) Consolidated Interest Expense, (ii) Consolidated Income Tax Expense, (iii) Consolidated Depreciation and Amortization Expense, (iv) non-recurring cash charges
and non-cash charges, in each case associated with Permitted Acquisitions and any related restructurings and Investments permitted under Section 7.05, in an aggregate amount, for all such cash charges, not to exceed (a) $100,000,000 in any
twelve-month period and (b) $250,000,000 in the aggregate since the Closing Date, (v) restricted stock expense and stock option expense (but only to the extent deducted from the determination of Consolidated Net Income for such period),
(vi) fees, costs and expenses incurred and paid by the Borrower or any of the Borrower’s Subsidiaries in connection with any settlement for any action, suit or proceeding in any court or before any arbitrator or Governmental Authority in
an amount not to exceed (a) $30,000,000 in any twelve-month period and (b) $100,000,000 in the aggregate since the Closing Date, (vii) restructuring charges and reserves (whether or not classified as such under GAAP), including any
fees, expenses or losses related to the reconstruction, recommissioning or reconfiguration of fixed assets for alternate uses or the disposal, abandonment, transfer, closing or discontinuing of operations, provided that the aggregate amount
of all such charges made in cash does not exceed $30,000,000 in the aggregate, (viii) any non-cash impairment charge or asset write-off or write-down related to intangible assets, goodwill, long-lived assets, and investments in debt and equity
securities pursuant to GAAP, (ix) all non-cash losses from investments recorded using the equity method, (x) non-cash stock-based awards compensation expense, (xi) non-cash mark to market and other non-cash charges or non-cash
expenses related to Hedge 

  
 7 

 
Agreement obligations, and (xii) fees, costs, premiums and expenses incurred and paid by the Borrower or any of the Borrower’s Subsidiaries during any period in connection with the
issuance, prepayment, or redemption of the Senior Notes and any other senior Indebtedness or Subordinated Indebtedness permitted to be incurred under the definition of “Permitted Indebtedness”, all as determined for the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP. 
 “Consolidated Funded Indebtedness” means, for the Borrower
and its Subsidiaries on a consolidated basis and as determined in accordance with GAAP, without duplication, the sum of (i) all Indebtedness for borrowed money, (ii) all obligations evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (iii) obligations created under any conditional sale or other title retention agreements for the payment of any part of the purchase price thereunder, (iv) Capitalized
Lease Obligations, Synthetic Leases obligations and all asset securitization obligations, (v) outstanding reimbursement obligations with respect to standby letters of credit, (vi) Guaranty Obligations of any of the Indebtedness described
in subparts (i) through (v) hereof, and (vii) all of the obligations described in subparts (i) through (vi) hereof of a Person other than the Borrower or any of its Subsidiaries that are secured by a Lien upon property of
the Borrower or any of its Subsidiaries. 
 “Consolidated Income Tax Expense” means, for any period, all provisions for
taxes based on Consolidated Net Income (including, without limitation, any additions to such taxes, and any penalties and interest with respect thereto), all as determined for the Borrower and its Subsidiaries on a consolidated basis in accordance
with GAAP. 
 “Consolidated Interest Expense” means, for any period, total interest expense (including, without limitation,
that which is capitalized and that which is attributable to Capital Leases or Synthetic Leases) of the Borrower and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries. 

“Consolidated Net Income” means for any period, the net income (or loss) of the Borrower and its Subsidiaries on a
consolidated basis for such period taken as a single accounting period determined in conformity with GAAP, but excluding (a) extraordinary gains and losses, (b) earnings, gains and losses resulting from any write-up or write-down of assets
other than in the ordinary course of business, and (c) the cumulative effect of a change in accounting principles. 

“Consolidated Net Worth” means, at any time, all amounts that, in conformity with GAAP, would be included under the caption
“total stockholders’ equity” (or any like caption) on a consolidated balance sheet of the Borrower at such time. 

“Consolidated Proforma EBITDA” means, for any period, Consolidated EBITDA for such period plus (i) the
Consolidated EBITDA for any Person or business line or unit that has been acquired by the Borrower or any of its Subsidiaries for any portion of such Testing Period prior to the date of acquisition, so long as such Consolidated EBITDA is set forth
in appropriate financial statements of such Person or other financial statements of such Person reasonably acceptable to the Administrative Agent minus (ii) the EBITDA from any Asset Sale permitted under Section 7.02 and made during
such period, with such pro forma adjustments to be (A) made as if such Asset Sale or acquisition, as applicable, occurred on the first day of such period and (B) supported by such financial information as is reasonably satisfactory
to the Administrative Agent. 
 “Consolidated Total Assets” means, at any time, all amounts that, in conformity with GAAP,
would be included under the caption “total assets” (or any like caption) on a consolidated balance sheet of the Borrower at such time. 

  
 8 

 “Continue,” “Continuation” and “Continued”
each refers to a continuation of a Eurodollar Loan for an additional Interest Period as provided in Section 2.07. 

“continuing” means, with respect to any Default or Event of Default, that such Default or Event of Default has not been cured
or waived. 
 “Convert,” “Conversion” and “Converted” each refers to a conversion of
Loans of one Type into Loans of another Type. 
 “CooperVision International” means CooperVision International Holding
Company, LP, an entity organized under the laws of England. 
 “Co-Syndication Agent” has the meaning provided in the first
paragraph of this Agreement. 
 “Credit Event” means the making of the Borrowings on the Funding Date or any Conversion or
Continuation thereafter. 
 “Credit Facility” means the credit facility established under this Agreement pursuant to which
each Lender shall make a Loan to the Borrower on the Funding Date in a principal amount equal to the Commitment of such Lender. 

“Credit Party” means the Borrower or any Subsidiary Guarantor. 

“Default” means any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

 “Default Rate” means, for any day, with respect to any Loan or any other amount, a rate per annum equal to 2% per
annum above the interest rate that is or would be applicable from time to time to Loans pursuant to Section 2.06(a)(i). 

“Defaulting Lender” means, subject to Section 2.12(b), any Lender that (a) has failed to (i) fund all or any
portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days
of the date when due; provided that a Lender shall not be a Defaulting Lender under this subpart (ii) solely by virtue of a good faith dispute as to the amount of costs and expenses to be reimbursed by the Lenders under Section 9.09
hereof, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect with respect to its funding obligations under
this Agreement or under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and
the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the
Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under the Bankruptcy Code, (ii) becomes or is insolvent, or (iii) had appointed for
it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any
other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender under this clause (d) solely by virtue of the ownership or acquisition of any equity interest in that Lender
or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with 

  
 9 

 
immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority
or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall
be conclusive and binding absent manifest error. 
 “Designated Foreign Currency” means Euros, Canadian dollars, Pounds
Sterling, Japanese Yen or any other currency (other than Dollars) approved in writing by the Lenders and that is freely traded and exchangeable into Dollars. 

“Designated Hedge Agreement” means any Hedge Agreement (other than a Commodities Hedge Agreement) to which the Borrower or
any of its Subsidiaries is a party and as to which a Lender or any of its Affiliates is a counterparty. 
 “Designated Hedge
Creditor” means each Lender or Affiliate of a Lender that participates as a counterparty to the Borrower or any Subsidiary of the Borrower pursuant to any Designated Hedge Agreement with such Lender or Affiliate of such Lender. 

“Dollars” and the sign “$” each means lawful money of the United States. 

“Dollar Equivalent” means, with respect to any amount not denominated in Dollars, the Dollar equivalent of such amount,
determined by the Administrative Agent on the basis of its spot rate at approximately 11:00 A.M. London time on the date for which the Dollar equivalent amount of such amount is being determined. 

“Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of America, any State thereof, or
the District of Columbia, excluding any such Subsidiary substantially all of whose assets consist of equity interest (or equity and debt interest) in another Subsidiary (or Subsidiaries) that is a “controlled foreign corporation” as
defined in the Code. 
 “Eligible Assignee” means, with respect to any assignment to be made pursuant to
Section 11.06 hereunder, (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved Fund, and (iv) any other Person (other than a natural Person) approved by (A) the Administrative Agent and (B) unless an Event
of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided, however, that notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 “Environmental Claims” means any and all
regulatory or judicial actions, suits, demand letters, claims, liens, notices of non-compliance or violation or proceedings pursuant to or under any Environmental Law or any permit issued under any such law (hereafter “Claims”),
including, without limitation, (i) any and all Claims by any Governmental Authority for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law, and (ii) any and all Claims
by any third party (A) seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from the storage, treatment or Release (as defined in CERCLA) of any Hazardous Materials or (B) arising from
alleged injury or threat of injury to the environment. 
 “Environmental Law” means any applicable Federal, state, foreign
or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy and rule of common law now or hereafter in effect and in each case as amended, and any judicial or global order,
consent, decree or judgment issued to or rendered against the Borrower or any of its 

  
 10 

 
Subsidiaries relating to the protection of the environment, employee health and safety or Hazardous Materials, including, without limitation, CERCLA; the Resource Conservation and Recovery Act,
as the same may be amended from time to time, 42 U.S.C. § 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe Drinking Water Act,
42 U.S.C. § 300f et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et seq.; the Hazardous Material
Transportation Act, 49 U.S.C. § 5101 et seq. and the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq. (to the extent it regulates occupational exposure to Hazardous Materials); and any applicable state and local or
foreign counterparts or equivalents, in each case as amended from time to time. 
 “Equity Interest” means, with respect to
any Person, any and all shares, interests, participations or other equivalents, including membership interests (however designated, whether voting or non-voting), of equity of such Person, including, if such Person is a partnership, partnership
interests (whether general or limited) or 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, such partnership, but in no event will Equity Interest
include any debt securities convertible or exchangeable into equity unless and until actually converted or exchanged. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder. Section references to ERISA are to ERISA, as in effect at the Closing Date and any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor. 

“ERISA Affiliate” means each Person (as defined in Section 3(9) of ERISA), which together with the Borrower or a
Subsidiary of the Borrower, would be deemed to be a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(a)(14) or 4001(b)(1) of ERISA. 

“Eurodollar Loan” means each Loan bearing interest at a rate based upon the Adjusted Eurodollar Rate. 

“Event of Default” has the meaning provided in Section 8.01. 

“Event of Loss” means, with respect to any property, (i) the actual or constructive total loss of such property or the
use thereof, resulting from destruction, damage beyond repair, or the rendition of such property permanently unfit for normal use from any casualty or similar occurrence whatsoever, (ii) the destruction or damage of a portion of such property
from any casualty or similar occurrence whatsoever under circumstances in which such damage cannot reasonably be expected to be repaired, or such property cannot reasonably be expected to be restored to its condition immediately prior to such
destruction or damage, within 90 days after the occurrence of such destruction or damage, (iii) the condemnation, confiscation or seizure of, or requisition of title to or use of, any property, or (iv) in the case of any property located
upon a leasehold, the termination or expiration of such leasehold. 
 “Existing Credit Agreement” means that certain Credit
Agreement, dated as of January 12, 2011, as amended by the Amendment No. 1 to Credit Agreement, dated as of May 31, 2012, as further amended by the Amendment No. 2 to Credit Agreement, dated as of the date hereof, and as the same
may be further amended, restated, supplemented or modified from time to time, among the Borrower, CooperVision International, the lenders from time to time party thereto, and KeyBank National Association, as administrative agent. 

“Facility Percentage” means, at any time for any Lender, the percentage obtained by dividing such Lender’s Commitment by
the Total Commitment, provided, however, that if the Total Commitment 

  
 11 

 
has been terminated, the Facility Percentage for each Lender shall be determined by dividing such Lender’s Commitment immediately prior to such termination by the Total Commitment
immediately prior to such termination. The Facility Percentage of each Lender as of the Closing Date is set forth on Schedule 1 hereto. 

“FATCA” means Sections 1471 through 1474 of the Code and any present or future regulations issued thereunder or other
official interpretations thereof. 
 “Federal Funds Effective Rate” means, for any period, a fluctuating interest rate
equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of recognized standing selected by the Administrative Agent. 

“Fees” means all amounts payable pursuant to, or referred to in, Section 2.08. 

“Financial Projections” has the meaning provided in Section 5.07(b). 

“Financial Statements” means, collectively, the audited consolidated balance sheets of the Borrower and its consolidated
Subsidiaries for the fiscal year ended October 31, 2012 and the related audited consolidated statements of income, shareholders’ equity, and cash flows of the Borrower and its consolidated Subsidiaries for the fiscal year of the Borrower
then ended, accompanied by the report thereon of KPMG LLP. 
 “Foreign Subsidiary” means any Subsidiary that is not a
Domestic Subsidiary. 
 “Foreign Subsidiary Basket Amount” means $600,000,000. 

“Funding Date” means the date specified in the Notice of Borrowing delivered on the Closing Date, provided that such
date shall be no later than September 16, 2013 or, at the request of the Borrower, such later date occurring on or before September 30, 2013 as determined by the Administrative Agent in its sole discretion. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time. 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, global tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or global powers or functions of or pertaining to government. 

“Guaranty Obligations” means as to any Person (without duplication) any obligation of such Person guaranteeing any
Indebtedness (“primary Indebtedness”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not
contingent, (i) to purchase any such primary Indebtedness or any property constituting direct or indirect security therefor, (ii) to advance or supply funds for the purchase or payment of any such primary Indebtedness or to maintain
working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such
primary 

  
 12 

 
Indebtedness of the ability of the primary obligor to make payment of such primary Indebtedness, or (iv) otherwise to assure or hold harmless the owner of such primary Indebtedness against
loss in respect thereof, provided, however, that the definition of Guaranty Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guaranty Obligation
shall be deemed to be an amount equal to the stated or determinable amount of the primary Indebtedness in respect of which such Guaranty Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder). 
 “Hazardous Materials” means (i) any petrochemical
or petroleum products, radioactive materials, asbestos in any form that is or would reasonably be expected to become friable, urea formaldehyde foam insulation, transformers or other equipment that contain dielectric fluid containing levels of
polychlorinated biphenyls, and radon gas; and (ii) any chemicals, materials or substances defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“restricted hazardous materials,” “extremely hazardous wastes,” “restrictive hazardous wastes,” “toxic substances,” “toxic pollutants,” “contaminants” or “pollutants,” or words of
similar meaning and regulatory effect, under any applicable Environmental Law. 
 “Hedge Agreement” means (i) any
interest rate swap agreement, any interest rate cap agreement, any interest rate collar agreement or other similar interest rate management agreement or arrangement, (ii) any currency swap or option agreement, foreign exchange contract, forward
currency purchase agreement or similar currency management agreement or arrangement or (iii) any Commodities Hedge Agreement. 

“Indebtedness” of any Person means without duplication (i) all indebtedness of such Person for borrowed money;
(ii) all bonds, notes, debentures and similar debt securities of such Person; (iii) the deferred purchase price of capital assets or services that in accordance with GAAP would be shown on the liability side of the balance sheet of such
Person; (iv) the face amount of all letters of credit issued for the account of such Person and, without duplication, all drafts drawn thereunder; (v) all obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances; (vi) all indebtedness of a second Person secured by any Lien on any property owned by such first Person, whether or not such indebtedness has been assumed; (vii) all Capitalized Lease Obligations of such Person;
(viii) the present value, determined on the basis of the implicit interest rate, of all basic rental obligations under all Synthetic Leases of such Person; (ix) all obligations of such Person with respect to asset securitization financing;
(x) all net obligations of such Person under Hedge Agreements; and (xi) all Guaranty Obligations of such Person; provided, however, that (y) neither trade payables, deferred revenue, taxes nor other similar accrued
expenses, in each case arising in the ordinary course of business, shall constitute Indebtedness; and (z) the Indebtedness of any Person shall in any event include (without duplication) the Indebtedness of any other entity (including any
general partnership in which such Person is a general partner) to the extent such Person is liable thereon as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness provide expressly that such Person is not liable thereon. 
 “Indemnitees” has the meaning provided in
Section 11.02. 
 “Insolvency Event” means, with respect to any Person, (i) the commencement of a voluntary case
by such Person under the Bankruptcy Code or the seeking of relief by such Person under any bankruptcy or insolvency or analogous law in any jurisdiction outside of the United States; (ii) the commencement of an involuntary case against such
Person under the Bankruptcy Code and the petition is not controverted within 10 days, or is not dismissed within 60 days, after commencement of the case; (iii) a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge
of, all or substantially all of the 

  
 13 

 
property of such Person; (iv) such Person commences (including by way of applying for or consenting to the appointment of, or the taking of possession by, a rehabilitator, receiver,
custodian, trustee, conservator or liquidator (collectively, a “conservator”) of such Person or all or any substantial portion of its property) any other proceeding under any reorganization, arrangement, adjustment of debt, relief
of debtors, dissolution, insolvency, liquidation, rehabilitation, conservatorship or similar law of any jurisdiction whether now or hereafter in effect relating to such Person; (v) any such proceeding of the type set forth in clause
(iv) above is commenced against such Person to the extent such proceeding is consented to by such Person or remains undismissed for a period of 60 days; (vi) such Person is adjudicated insolvent or bankrupt; (vii) any order of relief
or other order approving any such case or proceeding is entered; (viii) such Person suffers any appointment of any conservator or the like for it or any substantial part of its property that continues undischarged or unstayed for a period of 60
days; (ix) such Person makes a general assignment for the benefit of creditors or generally does not pay its debts as such debts become due; or (x) any corporate (or similar organizational) action is taken by such Person for the purpose of
effecting any of the foregoing. 
 “Interest Coverage Ratio” means, for any Testing Period, the ratio of
(i) Consolidated Proforma EBITDA to (ii) Consolidated Interest Expense. 
 “Interest Period” means, with
respect to each Eurodollar Loan, a period of one, two, three, six or, if available, nine or twelve months as selected by the Borrower; provided, however, that (i) the initial Interest Period for any Borrowing of such Eurodollar Loan
shall commence on the date of such Borrowing (the date of a Borrowing resulting from a Conversion or Continuation shall be the date of such Conversion or Continuation) and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires; (ii) if any Interest Period begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest
Period shall end on the last Business Day of such calendar month; (iii) if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided,
however, that if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business
Day; (iv) no Interest Period for any Eurodollar Loan may be selected that would end after the Maturity Date; (v) if, upon the expiration of any Interest Period, the Borrower has failed to elect a new Interest Period to be applicable to the
respective Borrowing of Eurodollar Loans as provided above (other than as a result of the existence of a Default or Event of Default), the Borrower shall be deemed to have elected to Continue the aggregate principal amount of such Borrowing as a
Eurodollar Loan for an Interest Period of equal duration effective as of the expiration date of such current Interest Period; provided, that, in the event the Continuance of a Borrowing pursuant to this subclause (v) would result in an
Interest Period that would end after the Maturity Date, then the Borrower shall not be deemed to have elected to Continue such Borrowing as provided in this subclause (v) but rather to have Converted such Borrowing to a Base Rate Loan as
provided in subclause (vi) below; and (vi) if, upon the expiration of any Interest Period, the Borrower has not elected and has not been deemed to elect a new Interest Period to be applicable to the respective Borrowing of Eurodollar Loans
as provided above, the Borrower shall be deemed to have elected to Convert such Borrowing to Base Rate Loans effective as of the expiration date of such current Interest Period. 

“Investment” means (i) any direct or indirect purchase or other acquisition by a Person of any Equity Interest of any
other Person; (ii) any loan, advance (other than deposits with financial institutions available for withdrawal on demand) or extension of credit to, guarantee or assumption of debt or purchase or other acquisition of any other Indebtedness of,
any Person by any other Person; or (iii) the purchase, acquisition or investment of or in any stocks, bonds, mutual funds, notes, debentures or other securities, or any deposit account, certificate of deposit or other investment of any kind.

  
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 “KeyBank” has the meaning provided in the first paragraph of this Agreement.

 “Leaseholds” of any Person means all the right, title and interest of such Person as lessee or licensee in, to and under
leases or licenses of land, improvements and/or fixtures. 
 “Lender” and “Lenders” have the meanings
provided in the first paragraph of this Agreement and include any other Person that becomes a party hereto pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto pursuant to an Assignment Agreement. 

“Lender Register” has the meaning provided in Section 2.05(b). 

“Lien” means any mortgage, pledge, security interest, hypothecation, encumbrance, lien or charge of any kind (including any
agreement to give any of the foregoing, any conditional sale or other title retention agreement or any lease in the nature thereof). 

“Loan” means any loan made by a Lender pursuant to Section 2.02. 

“Loan Documents” means this Agreement, the Notes, the Subsidiary Guaranty and the Administrative Agent Fee Letter. 

“Margin Stock” has the meaning provided in Regulation U. 

“Material Adverse Effect” means any or all of the following: (i) any material adverse effect on the business,
operations, property, assets, liabilities, financial or other condition of the Borrower and its Subsidiaries, taken as a whole; (ii) any material adverse effect on the ability of the Borrower or any other Credit Party to perform any of its
material obligations under any of the Loan Documents to which it is a party; or (iii) any material adverse effect on the validity, effectiveness or enforceability, as against any Credit Party, of any of the Loan Documents to which it is a
party. 
 “Material Indebtedness” means, as to the Borrower or any of its Subsidiaries, any particular Indebtedness of the
Borrower or such Subsidiary (including any Guaranty Obligations) in excess of the aggregate principal amount of $50,000,000 (or the Dollar Equivalent thereof). 

“Maturity Date” means September 12, 2018. 

“Maximum Rate” has the meaning provided in Section 11.21. 

“Minimum Borrowing Amount” means (i) with respect to any Base Rate Loan, $1,000,000, with minimum increments thereafter
of $500,000 and (ii) with respect to any Eurodollar Loan, $3,000,000, with minimum increments thereafter of $1,000,000. 

“Moody’s” means Moody’s Investors Service, Inc. and its successors. 

“Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA to which the Borrower or any
Subsidiary of the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions or has within any of the preceding five plan years made or accrued an obligation to make contributions. 

“Multiple Employer Plan” means an employee benefit plan, other than a Multiemployer Plan, to which the Borrower or any
Subsidiary of the Borrower or any ERISA Affiliate, and one or more employers other than the Borrower or a Subsidiary of the Borrower or an ERISA Affiliate, is making or 

  
 15 

 
accruing an obligation to make contributions or, in the event that any such plan has been terminated, to which the Borrower or a Subsidiary of the Borrower or an ERISA Affiliate made or accrued
an obligation to make contributions during any of the five plan years preceding the date of termination of such plan. 
 “1934
Act” means the Securities Exchange Act of 1934, as amended. 
 “Non-Defaulting Lender” means, at any time, each
Lender that is not a Defaulting Lender at such time. 
 “Non-Material Subsidiary” means any Subsidiary with total assets of
less than $30,000,000. 
 “Note” means a promissory note substantially in the form of Exhibit A hereto. 

“Notice of Borrowing” has the meaning provided in Section 2.03(b). 

“Notice of Continuation or Conversion” has the meaning provided in Section 2.07. 

“Notice Office” means the office of the Administrative Agent at 4900 Tiedeman Road, Brooklyn, Ohio 44144, Attention: Kathy
Koenig (facsimile: 216-370-6113), or such other office as the Administrative Agent may designate in writing to the Borrower from time to time. 

“Obligations” means all amounts, indemnities and reimbursement obligations, direct or indirect, contingent or absolute, of
every type or description, and at any time existing, owing by the Borrower or any other Credit Party to the Administrative Agent or any Lender pursuant to the terms of this Agreement or any other Loan Document (including, but not limited to,
interest and fees that accrue after the commencement by or against any Credit Party of any insolvency proceeding, regardless of whether allowed or allowable in such proceeding or subject to an automatic stay under Section 362(a) of the
Bankruptcy Code). 
 “Offer” has the meaning provided in Section 2.10(d). 

“Offer Loans” has the meaning provided in Section 2.10(d). 

“Operating Lease” as applied to any Person means any lease of any property (whether real, personal or mixed) by that Person
as lessee that, in conformity with GAAP, is not accounted for as a Capital Lease on the balance sheet of that Person. 

“Organizational Documents” means, with respect to any Person (other than an individual), such Person’s Articles
(Certificate) of Incorporation, or equivalent formation documents, and Regulations (Bylaws), or equivalent governing documents, and, in the case of any partnership, includes any partnership agreement and any amendments to any of the foregoing. 

“Payment Office” means the office of the Administrative Agent at Key Center, 4900 Tiedeman Road, Brooklyn, Ohio 44144,
Attention: Kathy Koenig (facsimile: 216-370-6113), or such other office(s), as the Administrative Agent may designate to the Borrower in writing from time to time. 

“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor
thereto. 

  
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 “Permitted Acquisition” means any Acquisition as to which all of the following
conditions are satisfied: 
 (i) such Acquisition involves a Permitted Business; 

(ii) no Default or Event of Default shall exist prior to or immediately after giving effect to such Acquisition; 

(iii) after giving effect to such Acquisition, the sum of the Unused Total Revolving Commitment (as defined in the Existing
Credit Agreement) and Unrestricted Cash is at least $100,000,000; 
 (iv) the Borrower would, after giving effect to such
Acquisition, on a pro forma basis (as determined in accordance with subpart (v) below), be in compliance with the financial covenants contained in Section 7.07; and 

(v) at least five Business Days (or such shorter period as agreed to by the Administrative Agent in its sole discretion) prior
to the consummation of any such Acquisition in which the Consideration exceeds (x) $100,000,000 individually and (y) $300,000,000 in the aggregate since the Closing Date, for all Acquisitions, the Borrower shall have delivered to the
Administrative Agent (who shall provide a copy to each Lender in accordance with Section 11.05(c) hereof) (A) historical financial statements relating to the business or Person to be acquired and such other information as the
Administrative Agent may reasonably request, and (B) a certificate of an Authorized Officer demonstrating, in reasonable detail, the computation of the financial covenants referred to in Section 7.07 on a pro forma basis, such
pro forma ratios being determined as if (y) such Acquisition had been completed at the beginning of the most recent Testing Period for which financial information for the Borrower and the business or Person to be acquired, is available,
and (z) any such Indebtedness, or other Indebtedness incurred to finance such Acquisition, had been outstanding for such entire Testing Period. 

“Permitted Business” means healthcare products and services (including the lines of business conducted by the Borrower and
its Subsidiaries on the Closing Date) and any businesses ancillary, complementary or reasonably related thereto. 
 “Permitted
Creditor Investment” means any securities (whether debt or equity) received by the Borrower or any of its Subsidiaries in connection with the bankruptcy or reorganization of any customer or supplier of the Borrower or any such Subsidiary
and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business. 

“Permitted Foreign Subsidiary Basket Amount” means, at any time, an amount equal to (i) the Foreign Subsidiary Basket
Amount then in effect, minus (ii) the Dollar Equivalent of the amount of Indebtedness of Foreign Subsidiaries guaranteed by the Credit Parties (other than the Borrower) pursuant to subpart (iii) of the definition of Permitted
Foreign Subsidiary Loans and Investments at such time, minus (iii) the aggregate outstanding principal amount at such time of all loans made by the Credit Parties to Foreign Subsidiaries on or after the Closing Date, minus
(iv) the aggregate amount of equity contributions made by the Credit Parties in Foreign Subsidiaries on or after the Closing Date, plus (v) the aggregate amount of all Capital Distributions made by Foreign Subsidiaries to the Credit
Parties on or after the Closing Date, but only up to an aggregate amount not in excess of the aggregate amount of loans and equity contributions made by the Credit Parties in Foreign Subsidiaries pursuant to the foregoing subclauses (iii) and
(iv) of this definition, plus (vi) any amount repaid to a Credit Party by any Foreign Subsidiary in respect of loans or other transfers previously made by such Credit Party to such Foreign

  
 17 

 
Subsidiary after the Closing Date, which repayment is made in connection with an equity contribution by such Credit Party in such Foreign Subsidiary after the Closing Date, but solely to the
extent of the amount so repaid, plus the Dollar Equivalent of the amount of Indebtedness of Foreign Subsidiaries in respect of uncommitted foreign lines of credit (including, without duplication, any guaranty of such Indebtedness by a Credit
Party pursuant to subpart (iii) of the definition of Permitted Foreign Subsidiary Loans and Investments at such time) not in excess of $200,000,000 at any time. 

“Permitted Foreign Subsidiary Loans and Investments” means (i) [Reserved]; (ii) other loans and Investments by a
Credit Party to or in a Foreign Subsidiary made on or after the Closing Date, so long as the aggregate amount of all such other loans and investments by all Credit Parties does not, at any time, exceed the Permitted Foreign Subsidiary Basket Amount
at such time; and (iii) Indebtedness of a Foreign Subsidiary owing to any Person (other than the Borrower or any of its Domestic Subsidiaries), and any guaranty of such Indebtedness by a Credit Party, so long as the aggregate principal amount
of all such Indebtedness pursuant to clauses (i) and (ii) does not at any time exceed the Foreign Subsidiary Basket Amount then in effect; provided that for purposes of determining compliance with clauses (ii) and
(iii) hereof, in the event that an item of proposed Investment or Indebtedness to or in a Foreign Subsidiary meets the criteria of one or more of the categories of Investments or Indebtedness permitted under Section 7.05 or
Section 7.04, respectively, as of the date of incurrence thereof, the Borrower shall, in its sole discretion, classify all or a portion of such Investment or Indebtedness under clause (ii) or clause (iii) hereof, as applicable, or
under such category of Investments or Indebtedness permitted under Section 7.04 or Section 7.05, as applicable, and neither the Permitted Foreign Subsidiary Basket Amount nor the Foreign Subsidiary Basket Amount, as applicable, shall be
reduced to the extent any such Investment or Indebtedness to or in a Foreign Subsidiary is classified under such category of Investment or Indebtedness permitted under Section 7.04 or Section 7.05, as applicable. 

“Permitted Indebtedness” means: 

(i) (a) Indebtedness (including, without limitation, the Senior Notes) of the Borrower (and any guaranty thereof by any Subsidiary
Guarantor) that, in each case (and in the case of any such guaranty) ranks pari passu in right of payment to the Obligations in an aggregate principal amount not to exceed $750,000,000 at any time; provided that, in each case, other
than in the case of the Senior Notes, (1) such Indebtedness matures no earlier than, and does not require any scheduled payment of principal, mandatory prepayment or redemption of principal prior to, the date that is 180 days after the fifth
anniversary of the Closing Date, (2) such Indebtedness has terms, conditions and covenants that, in the reasonable judgment of the Borrower, are not materially less favorable to the Borrower and its Subsidiaries than the terms, conditions and
covenants of this Agreement or the other Loan Documents, as evidenced by a certificate of an Authorized Officer of the Borrower to the same effect delivered to the Administrative Agent at least 5 days (or such shorter period as may be agreed to by
the Administrative Agent) before the date of incurrence of any such Indebtedness (and in no event shall any financial covenants in any such Indebtedness be more restrictive than the financial covenants contained in this Agreement unless otherwise
consented to by the Required Lenders), (3) such Indebtedness is not subject to any Guaranty Obligation by any Person that is not a Credit Party (and any such Guaranty Obligation by a Subsidiary Guarantor shall provide for release thereof if the
Guaranty Obligation of the applicable Subsidiary Guarantor in respect of the Obligations is released unless such release of such Guaranty Obligation of the applicable Subsidiary Guarantor in respect of the Obligations is in connection with the
repayment or refinancing in full of the Obligations and the termination of the Commitments), (4) at the time of and after giving effect to the incurrence of such Indebtedness, no Default or Event of Default has occurred and is continuing, and
(b) Indebtedness incurred to redeem, refinance, renew or replace such Indebtedness in full, in an amount of up to the aggregate outstanding principal amount of such Indebtedness plus any applicable premium and reasonable and customary
transaction costs incurred in connection therewith; provided that with respect to any such refinancing (x) the maturity of such 

  
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Indebtedness is no earlier than 180 days after the fifth anniversary of the Closing Date, and (y) in the aggregate, the other material terms of any such refinanced Indebtedness (including,
without limitation, any conversion provisions), taken as a whole and in the reasonable judgment of the Borrower, are no less favorable to the Borrower than the other material terms contained in the documents with respect to such Indebtedness being
refinanced; 
 (ii) (a) Indebtedness consisting of Capitalized Lease Obligations of the Borrower and its Subsidiaries and
(b) Indebtedness of the Borrower and its Subsidiaries secured by Liens on any property or assets of the Borrower or any of its Subsidiaries, provided that, solely with respect to this clause (b), (x) no Default or Event of Default
shall then exist or at the time of incurrence of such Indebtedness will exist and (y) the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in Section 7.07 both immediately before and after giving
pro forma effect to the incurrence of such Indebtedness; and provided further, that the aggregate outstanding principal amount (using Capitalized Lease Obligations in lieu of principal amount, in the case of any Capital Lease) of all such
Indebtedness outstanding at any time pursuant to this subpart (ii) shall not exceed $100,000,000; 
 (iii) (a) Indebtedness of the
Borrower (and any guaranty thereof by any Subsidiary Guarantor) that is, in each case (and in the case of any guaranty thereof) subordinated in right of payment to the Obligations and any guarantees thereof pursuant to and in accordance with the
terms thereof; provided that (1) such Indebtedness shall be on terms customary at the time for high-yield subordinated debt securities as determined in the reasonable judgment of the Borrower (other than the subordination provisions
which shall be subject to clause (3) below) as evidenced by a certificate of a an Authorized Officer of the Borrower to the same effect delivered by the Borrower to the Administrative Agent at least 5 days (or such shorter period as agreed to
by the Administrative Agent) before the date of incurrence of any such Indebtedness, (2) such Indebtedness matures no earlier than, and does not require any scheduled payment of principal, mandatory prepayment or redemption of principal prior
to, the date that is 180 days after the fifth anniversary of the Closing Date (it being understood that such Indebtedness may have mandatory prepayment, repurchase or redemptions provisions satisfying the requirement of clause (3) hereof),
(3) such Indebtedness has terms and conditions (other than interest rate, redemption premiums and subordination terms), taken as a whole, that are not materially less favorable to the Borrower and its Subsidiaries than the terms and conditions
customary at the time for high-yield subordinated debt securities as determined in the reasonable judgment of the Borrower and as evidenced by a certificate of and Authorized Officer of the Borrower to the same effect delivered by the Borrower to
the Administrative Agent at least 5 days (or such shorter period as agreed to by the Administrative Agent) before the date of incurrence of any such Indebtedness and the subordination terms relating to such Indebtedness shall be customary for
high-yield subordinated debt securities as determined in the reasonable discretion of the Administrative Agent or otherwise reasonably acceptable to the Administrative Agent, (4) such Indebtedness is not subject to any Guaranty Obligation by
any Person that is not a Credit Party (and any such Guaranty Obligation by a Subsidiary Guarantor shall provide for release thereof if the Guaranty Obligation of the applicable Subsidiary Guarantor in respect of the Obligations is released unless
such release of such Guaranty Obligation of the applicable Subsidiary Guarantor in respect of the Obligations is in connection with the repayment or refinancing in full of the Obligations and the termination of the Commitments), (5) at the time
of and after giving effect to the incurrence of such Indebtedness, no Default or Event of Default has occurred and is continuing, and (6) the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in
Section 7.07 both immediately before and after giving pro forma effect to the incurrence of such Indebtedness, and (b) Indebtedness incurred to redeem, refinance, renew or replace such Indebtedness in full, in an amount of up to the
aggregate outstanding principal amount of such Indebtedness plus any applicable premium and reasonable and customary transaction costs incurred in connection therewith; provided that with respect to any such refinancing (x) the maturity
of such Indebtedness is no earlier than 180 days after the fifth anniversary of the Closing Date, and (y) in the aggregate, the other material terms of any such 

  
 19 

 
refinanced Indebtedness (including, without limitation, any conversion provisions), taken as a whole and in the reasonable judgment of the Borrower, are no less favorable to the Borrower and its
Subsidiaries than the other material terms contained in the documents with respect to such Indebtedness being refinanced; 
 (iv)
Indebtedness incurred by the Borrower or a Subsidiary Guarantor in connection with a Permitted Securitization Transaction, provided that the aggregate amount of all such Indebtedness outstanding at any time pursuant to this subpart (iv) shall
not exceed $100,000,000; and 
 (v) other unsecured Indebtedness of the Borrower and its Subsidiaries to the extent not permitted by any of
the foregoing clauses, provided that (a) no Default or Event of Default shall then exist or at the time of incurrence of such Indebtedness will exist, (b) the Borrower and its Subsidiaries shall be in compliance with the financial
covenants set forth in Section 7.07 both immediately before and after giving pro forma effect to the incurrence of such Indebtedness, and (c) the aggregate principal amount of all such Indebtedness outstanding at any time pursuant
to this subpart (v) shall not exceed $200,000,000. 
 “Permitted Lien” means any Lien permitted by Section 7.03.

 “Permitted Sale Leaseback Asset Sale” means any sale of equipment by the Borrower or any of its Subsidiaries to any
Person (other than the Borrower or any Subsidiary of the Borrower) and (i) made within three months of the Borrower’s or such Subsidiary’s, as the case may be, acquisition of such equipment or (ii) with respect to product lines
that are not fully operational immediately upon the acquisition of such equipment, within three months of the date on which such product lines become fully operational, as reasonably determined by the Borrower, which equipment is subsequently leased
by such Person to the Borrower or any such Subsidiary, as applicable, promptly upon consummation of such sale pursuant to an Operating Lease between the Borrower or such Subsidiary, as the case may be, and such Person. 

“Permitted Securitization Transaction” means any transaction or series of transactions otherwise permitted pursuant to
Section 7.02 hereof and designated in writing by the Borrower to the Administrative Agent to be a “Permitted Securitization Transaction” which is entered into by the Borrower or any Subsidiary Guarantor pursuant to which the Borrower
or any Subsidiary Guarantor, as applicable, may sell, convey or otherwise transfer to any other Person, or may grant a security interest in, any accounts receivable (whether now existing or arising in the future) of the Borrower or such Subsidiary
Guarantor, and any assets related thereto, including all collateral securing such accounts receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable, and proceeds of such accounts receivable and other
assets that are customarily transferred, or in respect of which security interests are customarily granted, in connection with asset securitization transactions involving accounts receivable. 

“Person” means any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust
or other enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 

“Plan” means any Multiemployer Plan or Single-Employer Plan. 

“primary Indebtedness” has the meaning provided in the definition of “Guaranty Obligations.” 

“primary obligor” has the meaning provided in the definition of “Guaranty Obligations.” 

  
 20 

 “Prohibited Transaction” means a transaction that is prohibited under
Section 4975 of the Code or Section 406 of ERISA and not exempt under Section 4975 of the Code or Section 408 of ERISA. 

“Real Property” of any Person shall mean all of the right, title and interest of such Person in and to land, improvements and
fixtures, including Leaseholds. 
 “Regulation D” means Regulation D of the Board as from time to time in effect and any
successor to all or a portion thereof establishing reserve requirements. 
 “Regulation U” means Regulation U of the Board
as from time to time in effect and any successor to all or a portion thereof establishing margin requirements. 
 “Related
Parties” means, with respect to any Person, such Person’s Affiliates and the directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates. 

“Replacement Assets” means any assets or properties used or useful in a Permitted Business. 

“Reportable Event” means an event described in Section 4043 of ERISA or the regulations thereunder with respect to a
Plan, other than those events as to which the notice requirement is waived. 
 “Required Lenders” means Lenders (other than
Defaulting Lenders) whose Commitments in the aggregate constitute more than 50% of the sum of the Total Commitment, or, if the Total Commitment has been terminated, Lenders (other than Defaulting Lenders) holding more than 50% of the aggregate
unpaid principal amount of the outstanding Loans. 
 “Restricted Payment” means (i) any Capital Distribution; or
(ii) any amount paid by the Borrower or any of its Subsidiaries in repayment, redemption, retirement, repurchase, direct or indirect, of any Subordinated Indebtedness or the exercise of any right of legal defeasance, covenant defeasance or
similar right with respect thereto. 
 “Sale and Lease-Back Transaction” means any arrangement with any Person providing
for the leasing by the Borrower or any Subsidiary of the Borrower of any property (except for temporary leases for a term, including any renewal thereof, of not more than one year and except for leases between the Borrower and a Subsidiary or
between Subsidiaries), which property has been or is to be sold or transferred by the Borrower or such Subsidiary to such Person. 

“S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., and its successors. 

“Scheduled Repayment” has the meaning provided in Section 2.10(b). 

“SEC” means the United States Securities and Exchange Commission. 

“SEC Regulation D” means Regulation D as promulgated under the Securities Act of 1933, as amended, as the same may be in
effect from time to time. 
 “Senior Notes” means the Borrower’s 7.125% Senior Unsecured Notes due 2015 issued
pursuant to the Senior Note Documents. 
 “Senior Notes Documents” means, collectively, (i) the Senior Notes,
(ii) the Indenture dated as of January 31, 2007, between HSBC Bank USA, National Association, as trustee, and the Borrower, and (iii)

  
 21 

 
each other document, guarantee or instrument executed or delivered in connection with any of the foregoing, as any of the foregoing may, in accordance with the terms of this Agreement, from time
to time be amended, supplemented, restated or otherwise modified. 
 “Share Repurchase” means a payment made, liability
incurred or other consideration given for the purchase, acquisition, repurchase, redemption or retirement of any Equity Interest of the Borrower or any of its Subsidiaries. 

“Standard Permitted Lien” means any of the following: (i) Liens for taxes not yet delinquent or Liens for taxes,
assessments or governmental charges being contested in good faith and by appropriate proceedings for which adequate reserves in accordance with GAAP have been established; (ii) Liens in respect of property or assets imposed by law that were
incurred in the ordinary course of business, such as carriers’, suppliers’, warehousemen’s, materialmen’s and mechanics’ Liens and other similar Liens arising in the ordinary course of business, that do not in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Borrower or any of its Subsidiaries and do not secure any Indebtedness; (iii) Liens arising from
judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.01(g); (iv) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary course of business in connection
with workers compensation, unemployment insurance and other types of social security, and mechanic’s Liens, carrier’s Liens, and other Liens to secure the performance of tenders, statutory obligations, contract bids, government contracts,
surety, appeal, customs, performance and return-of-money bonds and other similar obligations, incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money), whether pursuant to statutory
requirements, common law or consensual arrangements; (v) leases or subleases granted in the ordinary course of business to others not interfering in any material respect with the business of the Borrower or any of its Subsidiaries and any
interest or title of a lessor under any lease not in violation of this Agreement; (vi) easements, rights-of-way, zoning or other restrictions, charges, encumbrances, defects in title, prior rights of other Persons, and obligations contained in
similar instruments, in each case that do not secure Indebtedness and do not involve, and are not likely to involve at any future time, either individually or in the aggregate, (A) a substantial and prolonged interruption or disruption of the
business activities of the Borrower and its Subsidiaries considered as an entirety, or (B) a Material Adverse Effect; (vii) Liens arising from the rights of lessors under leases (including financing statements regarding property subject to
lease) not in violation of the requirements of this Agreement, provided that such Liens are only in respect of the property subject to, and secure only, the respective lease (and any other lease with the same or an affiliated lessor);
(viii) rights of consignors of goods, whether or not perfected by the filing of a financing statement under the UCC; and (ix) licenses of intellectual property of the Borrower or any of its Subsidiaries granted in the ordinary course of
business. 
 “Subordinated Indebtedness” means any subordinated Indebtedness incurred under clause (iii) of the
definition of “Permitted Indebtedness.” 
 “Subsidiary” of any Person shall mean and include (i) any
corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary Voting Power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have Voting Power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries, and (ii) any partnership, limited liability company,
association, joint venture or other entity in which such Person directly or indirectly through Subsidiaries, owns more than 50% of the Equity Interests of such Person at the time or in which such Person, one or more other Subsidiaries of such Person
or such Person and one or more Subsidiaries of such Person, directly or indirectly, has the power to direct the policies, management and 

  
 22 

 
affairs thereof. Unless otherwise expressly provided, all references herein to “Subsidiary” shall mean a Subsidiary of the Borrower. 

“Subsidiary Guarantor” means any Domestic Subsidiary that is not a Non-Material Subsidiary and that is or hereafter becomes a
party to the Subsidiary Guaranty. Schedule 2 hereto lists each Subsidiary Guarantor as of the Closing Date. 
 “Subsidiary
Guaranty” has the meaning provided in Section 4.01(iii). 
 “Synthetic Lease” means any lease (i) that
is accounted for by the lessee as an Operating Lease, and (ii) under which the lessee is intended to be the “owner” of the leased property for federal income tax purposes. 

“Taxes” has the meaning provided in Section 3.03(a). 

“Testing Period” means a single period consisting of the four consecutive fiscal quarters of the Borrower then last ended
(whether or not such quarters are all within the same fiscal year), except that if a particular provision of this Agreement indicates that a Testing Period shall be of a different specified duration, such Testing Period shall consist of the
particular fiscal quarter or quarters then last ended that are so indicated in such provision. 
 “Total Commitment” means
the sum of the Commitments of the Lenders. As of the Closing Date, the amount of the Total Commitment is $300,000,000. 
 “Total
Leverage Ratio” means, for any Testing Period, the ratio of (i) Consolidated Funded Indebtedness to (ii) Consolidated Proforma EBITDA. 

“Total Leverage Ratio Increase Period” has the meaning provided in Section 7.07. 

“Type” means any type of Loan determined with respect to the interest option applicable thereto, which in each case shall be
a Base Rate Loan or a Eurodollar Loan. 
 “UCC” means the Uniform Commercial Code as in effect from time to time. Unless
otherwise specified, the UCC shall refer to the UCC as in effect in the State of New York. 
 “Unfunded Benefit
Liabilities” of any Plan means the amount, if any, by which the current liability (as defined in Section 412(1)(7) of the Code) under the Plan as of the end of the Plan’s most recent fiscal year exceeds the fair market value of
the Plan’s assets as of the end of such fiscal year, as reported in the actuarial report for such year. 
 “United
States” and “U.S.” each means United States of America. 
 “Unrestricted Cash” means, at
any time of determination, the sum of (i) the aggregate amount of all cash deposits of the Credit Parties maintained in any demand deposit account, and (ii) the aggregate monetary value of all money market funds of the Credit Parties
maintained in any account of a securities intermediary, to the extent such cash deposits and money market funds are free of any Lien or other encumbrance (other than (x) customary Liens arising in the ordinary course of business which the
depository institution may have with respect to any right of offset against funds in such account, and (y) customary holds for uncollected deposits). 

  
 23 

 “USA Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001. 
 “Voting Power” means, with
respect to any Person, the exclusive ability to control, through the ownership of shares of capital stock, partnership interests, membership interests or otherwise, the election of members of the board of directors or other similar governing body of
such Person, and the holding of a designated percentage of Voting Power of a Person means the ownership of shares of capital stock, partnership interests, membership interests or other interests of such Person sufficient to control exclusively the
election of that percentage of the members of the board of directors or similar governing body of such Person. 
 Section 1.02
Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including,” the words “to” and
“until” each means “to but excluding” and the word “through” means “through and including.” 

Section 1.03 Accounting Terms. Except as otherwise specifically provided herein, all terms of an accounting or financial nature
shall be construed in accordance with GAAP, as in effect from time to time (other than with respect to FASB Accounting Standards Codification 840 (leases), which shall be construed in accordance with GAAP as of the Closing Date), provided
that if the Borrower notifies the Administrative Agent and the Lenders that the Borrower wishes to amend any covenant in Article VII to eliminate the effect of any change in GAAP that occurs after the Closing Date on the operation of such covenant
(or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article VII for such purpose), then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower, the Administrative Agent and the Required Lenders, the Borrower, the Administrative Agent and
the Lenders agreeing to enter into negotiations to amend any such covenant immediately upon receipt from any party entitled to send such notice. 

Section 1.04 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. 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.” Unless the context requires otherwise, (a) 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 or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,”
and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections, Schedules and Exhibits shall be construed to refer to Sections of, and
Schedules and Exhibits to, this Agreement, (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all Real Property, tangible and intangible assets and properties,
including cash, securities, accounts and contract rights, and interests in any of the foregoing, and (f) any reference to a statute, rule or regulation is to that statute, rule or regulation as now enacted or as the same may from time to time
be amended, re-enacted or expressly replaced. 
 Section 1.05 Currency Equivalents. Except as otherwise specified herein, all
references herein or in any other Loan Document to a dollar amount shall mean such amount in Dollars or, if the 

  
 24 

 
context so requires, the Dollar Equivalent of such amount in any Designated Foreign Currency. The Dollar Equivalent of any amount shall be determined in accordance with the definition of
“Dollar Equivalent”; provided, however, that in determining whether or not the Borrower and its Subsidiaries have exceeded any basket limitation set forth in Sections 7.02, 7.04 or 7.05, the Borrower and its Subsidiaries
shall not be deemed to have exceeded any such basket limitation to the extent that, and only to the extent that, any such basket limitation was exceeded solely as a result of fluctuations in the exchange rate applicable to any Designated Foreign
Currency. 
 ARTICLE II. 

THE TERMS OF THE CREDIT FACILITY 

Section 2.01 Establishment of the Credit Facility. On the Closing Date, and subject to and upon the terms and conditions set forth
in this Agreement and the other Loan Documents, the Administrative Agent and the Lenders agree to establish the Credit Facility for the benefit of the Borrower. 

Section 2.02 Loans. Each Lender severally agrees, on the terms and conditions set forth in this Agreement, to make a Loan to the
Borrower on the Funding Date in an aggregate principal amount equal to such Lender’s Commitment, which Loans: (i) can only be incurred on the Funding Date in the entire amount of each Lender’s Commitment; (ii) once prepaid or
repaid, may not be reborrowed; (iii) may, except as set forth herein, at the option of the Borrower, be incurred and maintained as, or Converted into, Loans that are Base Rate Loans or Eurodollar Loans, in each case denominated in Dollars,
provided that all Loans made as part of the same Borrowing shall consist of Loans of the same Type; (iv) shall be repaid in accordance with Section 2.10(b); and (v) shall not exceed (A) for any Lender at the time of
incurrence thereof, the aggregate principal amount of such Lender’s Commitment, and (B) for all the Lenders at the time of incurrence thereof, the Total Commitment. The Loans to be made by each Lender will be made in the aggregate amount
of such Lender’s Commitment in accordance with Section 2.04 hereof. 
 Section 2.03 Notice of Borrowing. 

(a) Time of Notice. The Borrower shall provide notice of the Borrowing to be made on the Funding Date, in the form provided for below,
to the Administrative Agent at its Notice Office not later than (i) in the case of each Borrowing of a Eurodollar Loan, 1:00 P.M. (local time at its Notice Office) on the Closing Date and (ii) in the case of each Borrowing of a Base Rate
Loan, prior to 1:00 P.M. (local time at its Notice Office) on the Funding Date. 
 (b) Notice of Borrowing. The request for the
Borrowing to be made on the Funding Date shall be made by an Authorized Officer of the Borrower (or any Person designated by an Authorized Officer of the Borrower in writing to the Administrative Agent to make such a request) by delivering written
notice of such request substantially in the form of Exhibit B-1 hereto (each such notice, a “Notice of Borrowing”) or by telephone (to be confirmed immediately in writing by delivery by an Authorized Officer of the Borrower
of a Notice of Borrowing), and in any event each such request shall be irrevocable and shall specify (i) the aggregate principal amount of the Loans to be made pursuant to such Borrowing, (ii) the date of the Borrowing (which shall be a
Business Day), (iii) the Type of Loans such Borrowing will consist of, and (iv) if applicable, the initial Interest Period with respect thereto. Without in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice permitted to be given hereunder, the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be from an
Authorized Officer of the Borrower entitled to give telephonic notices under this Agreement on 

  
 25 

 
behalf of the Borrower. In each such case, the Administrative Agent’s record of the terms of such telephonic notice shall be conclusive absent manifest error. 

(c) Minimum Borrowing Amount. The aggregate principal amount of each Borrowing by the Borrower shall not be less than the Minimum
Borrowing Amount. 
 (d) Maximum Borrowings. More than one Borrowing may be incurred by the Borrower on any day; provided,
however, that (i) if there are two or more Borrowings on a single day that consist of Eurodollar Loans, each such Borrowing shall have a different initial Interest Period, and (ii) at no time shall there be more than 10 Borrowings of
Eurodollar Loans outstanding hereunder. 
 Section 2.04 Funding Obligations; Disbursement of Funds. 

(a) Several Nature of Funding Obligations. The Commitments of each Lender hereunder and the obligation of each Lender to make Loans are
several and not joint obligations. No Lender shall be responsible for any default by any other Lender in its obligation to make Loans or fund any participation hereunder and each Lender shall be obligated to make the Loans provided to be made by it
and fund its participations required to be funded by it hereunder, regardless of the failure of any other Lender to fulfill any of its Commitments hereunder. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its
commitments hereunder and in existence from time to time or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder. 

(b) Borrowings Pro Rata. All Loans shall be made by the Lenders pro rata on the basis of their respective Commitments.

 (c) Notice to Lenders. The Administrative Agent shall promptly give the applicable Lenders written notice (or telephonic notice
promptly confirmed in writing) of each proposed Borrowing or Conversion or Continuation thereof and of each such Lender’s respective proportionate share thereof and of the other matters covered by the Notice of Borrowing or Notice of
Continuation or Conversion, as the case may be, relating thereto. 
 (d) Funding of Loans. No later than 2:00 P.M. (local time
at the Payment Office) on the date specified in the Notice of Borrowing delivered on or prior to the Closing Date (or, in the case of a Base Rate Loan requested for that same day, 4:00 P.M.), each Lender will make available its pro rata share of the
Borrowing requested to be made on the Funding Date to the Administrative Agent at the Payment Office in Dollars and in immediately available funds and the Administrative Agent promptly will make available to the Borrower by depositing to its account
at the Payment Office (or such other account as the Borrower shall specify) the aggregate of the amounts so made available in the type of funds received. 

(e) Advance Funding. Unless the Administrative Agent shall have been notified by any Lender prior to the Closing Date that such Lender
does not intend to make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on the Funding Date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent
on such date of Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole discretion and without any obligation to do so) make available to the Borrower a corresponding amount. If such corresponding amount is not in
fact made available to the Administrative Agent by such Lender and the Administrative Agent has made the same available to the Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such Lender. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be entitled to 

  
 26 

 
recover from such Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the
Administrative Agent to the Borrower to the date such corresponding amount is recovered by the Administrative Agent at a rate per annum equal to (i) if paid by such Lender, the overnight Federal Funds Effective Rate or (ii) if paid by the
Borrower, the then applicable rate of interest, calculated in accordance with Section 2.06, for the respective Loans (but without any requirement to pay any amounts in respect thereof pursuant to Section 3.02). 

Section 2.05 Evidence of Obligations. 

(a) Loan Accounts of Lenders. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the
Obligations of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

(b) Loan Accounts of Administrative Agent; Lender Register. The Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Loan and Borrowing made hereunder, the Type thereof, the currency in which such Loan is denominated, the Interest Period and applicable interest rate, (ii) the amount of any principal due and payable or to become due
and payable from the Borrower to each Lender hereunder, (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof, and (iv) the other details relating to
the Loans and other Obligations. In addition, the Administrative Agent shall maintain, on behalf of the Borrower, a register (the “Lender Register”) on or in which it will record the names and addresses of the Lenders, and the
Commitments from time to time of each of the Lenders. The Administrative Agent will make the Lender Register available to any Lender or the Borrower upon request. 

(c) Effect of Loan Accounts, etc. The entries made in the accounts maintained pursuant to Section 2.05(b) shall be rebuttably
presumptive evidence of the existence and amounts of the Obligations recorded therein; provided, that the failure of the Administrative Agent to maintain such accounts or any error (other than manifest error) therein shall not in any manner
affect the obligation of any Credit Party to repay or prepay the Loans or the other Obligations in accordance with the terms of this Agreement. 

(d) Notes. Upon the request of any Lender, the Borrower will execute and deliver to such Lender a Note with blanks appropriately
completed in conformity herewith to evidence its obligation to pay the principal of, and interest on, the Loan made to it by such Lender; provided, however, that the decision of any Lender to not request a Note shall in no way detract from
the Borrower’s obligations to repay the Loans and other amounts owing by the Borrower to such Lender. 
 Section 2.06 Interest;
Default Rate. 
 (a) Interest. The outstanding principal amount of each Loan made by each Lender shall bear interest at a
fluctuating rate per annum that shall at all times be equal to (i) during such periods as such Loan is a Base Rate Loan, the Base Rate plus the Applicable Margin in effect from time to time, and (ii) during such periods as such Loan
is a Eurodollar Loan, the relevant Adjusted Eurodollar Rate for such Eurodollar Loan for the applicable Interest Period plus the Applicable Margin in effect from time to time. 

(b) Default Interest. Notwithstanding the above provisions, if an Event of Default is in existence, upon written notice by the
Administrative Agent (which notice the Administrative Agent shall give at the direction of the Required Lenders), all outstanding amounts of principal and, to the extent permitted by law, all overdue interest, in respect of each Loan shall bear
interest, payable on demand, at a 

  
 27 

 
rate per annum equal to the Default Rate. In addition, if any amount (other than amounts as to which the foregoing sentence is applicable) payable by the Borrower under the Loan Documents is not
paid when due, upon written notice by the Administrative Agent (which notice the Administrative Agent shall give at the direction of the Required Lenders), such amount shall bear interest, payable on demand, at a rate per annum equal to the Default
Rate. 
 (c) Accrual and Payment of Interest. Interest shall accrue from and including the date of any Borrowing to but excluding the
date of any prepayment or repayment thereof and shall be payable by the Borrower: (i) in respect of each Base Rate Loan, quarterly in arrears on the last Business Day of each calendar quarter, (ii) in respect of each Eurodollar Loan, on
the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on the dates that are successively three months after the commencement of such Interest Period and (iii) in respect of all
Loans on any repayment, prepayment or Conversion (on the amount repaid, prepaid or Converted), at maturity (whether by acceleration or otherwise), and, after such maturity or, in the case of any interest payable pursuant to Section 2.06(b), on
demand. 
 (d) Computations of Interest. All computations of interest on Eurodollar Loans shall be made on the actual number of days
elapsed over a year of 360 days. All computations of interest on Base Rate Loans hereunder shall be made on the actual number of days elapsed over a year of 365 or 366 days, as applicable. 

(e) Information as to Interest Rates. The Administrative Agent, upon determining the interest rate for any Borrowing, shall promptly
notify the Borrower and the Lenders thereof. Any changes in the Applicable Margin shall be determined by the Administrative Agent in accordance with the provisions set forth in the definition of “Applicable Margin” and the Administrative
Agent will promptly provide notice of such determinations to the Borrower and the Lenders. Any such determination by the Administrative Agent shall be conclusive and binding absent manifest error. 

Section 2.07 Conversion and Continuation of Loans. Each Continuation or Conversion of a Loan shall be made upon notice in the form
provided for below provided by the Borrower to the Administrative Agent at its Notice Office not later than (i) in the case of each Continuation of or Conversion into a Eurodollar Loan, prior to 1:00 P.M. (local time at its Notice Office) at
least two Business Days’ prior to the date of such Continuation or Conversion, and (ii) in the case of each Conversion to a Base Rate Loan, prior to 1:00 P.M. (local time at its Notice Office) on the proposed date of such Conversion. Each
such request shall be made by an Authorized Officer of the Borrower delivering written notice of such request substantially in the form of Exhibit B-2 hereto (each such notice, a “Notice of Continuation or Conversion”) or by
telephone (to be confirmed immediately in writing by delivery by an Authorized Officer of the Borrower of a Notice of Continuation or Conversion), and in any event each such request shall be irrevocable and shall specify (A) the Borrowings to
be Continued or Converted, (B) the date of the Continuation or Conversion (which shall be a Business Day), and (C) the Interest Period or, in the case of a Continuation, the new Interest Period. Without in any way limiting the obligation
of the Borrower to confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer of the Borrower entitled to give telephonic notices under this Agreement on behalf of the Borrower. In each such case, the Administrative Agent’s record of the terms of such
telephonic notice shall be conclusive absent manifest error. 
 Section 2.08 Fees. 

  
 28 

 (a) Administrative Agent Fees. The Borrower shall pay to the Administrative Agent, on the
Funding Date and thereafter, for its own account, the fees set forth in the Administrative Agent Fee Letter. 
 (b) Computations and
Determination of Fees. All computations of Fees hereunder shall be made on the actual number of days elapsed over a year of 360 days. 

Section 2.09 Termination of Commitments. All of the Commitments shall terminate immediately after the Funding Date. 

Section 2.10 Payments and Prepayments of Loans. 

(a) Voluntary Prepayments. The Borrower shall have the right to prepay any of the Loans from time to time, in whole or in part, without
premium or penalty (except as specified in subparts (e) and (f) of this Section 2.10). The Borrower shall give the Administrative Agent at the Notice Office written or telephonic notice (in the case of telephonic notice,
promptly confirmed in writing if so requested by the Administrative Agent) of its intent to prepay the Loans, the amount of such prepayment and (in the case of Eurodollar Loans) the specific Borrowing(s) pursuant to which the prepayment is to be
made, which notice shall be received by the Administrative Agent by (y) 1:00 P.M. (local time at the Notice Office) two Business Days prior to the date of such prepayment, in the case of any prepayment of Eurodollar Loans, or (z) 1:00 P.M.
(local time at the Notice Office) one Business Day prior to the date of such prepayment, in the case of any prepayment of Base Rate Loans, and which notice shall promptly be transmitted by the Administrative Agent to each of the affected Lenders,
provided that: 
 (i) each partial prepayment shall be in an aggregate principal amount of at least (A) in the
case of any prepayment of a Eurodollar Loan, $3,000,000 (or, if less, the full amount of such Borrowing), or an integral multiple of $1,000,000 in excess thereof and (B) in the case of any prepayment of a Base Rate Loan, $1,000,000 (or, if
less, the full amount of such Borrowing), or an integral multiple of $100,000 in excess thereof; and 
 (ii) each such
prepayment shall be applied on a pro rata basis (in accordance with the respective outstanding principal amounts thereof) to the Scheduled Repayments in respect of the Loans in direct order of maturity. 

(b) Scheduled Repayments. On each of the dates set forth below, the Borrower shall repay the principal amount of the Loans in the
amount set forth opposite such date, except that the payment due on the Maturity Date shall in any event be in the amount of the entire remaining principal amount of the outstanding Loans (each such repayment, a “Scheduled
Repayment”): 
  

					
	 Date
	  	Amount of Payment	 
	 October 31, 2013
	  	$	0	  
	 January 31, 2014
	  	$	0	  
	 April 30, 2014
	  	$	0	  
	 July 31, 2014
	  	$	0	  
	 October 31, 2014
	  	$	0	  
	 January 31, 2015
	  	$	0	  
	 April 30, 2015
	  	$	0	  

  
 29 

					
	 Date
	  	Amount of Payment	 
	 July 31, 2015
	  	$	0	  
	 October 31, 2015
	  	$	0	  
	 January 31, 2016
	  	$	0	  
	 April 30, 2016
	  	$	0	  
	 July 31, 2016
	  	$	0	  
	 October 31, 2016
	  	$	3,750,000	  
	 January 31, 2017
	  	$	3,750,000	  
	 April 30, 2017
	  	$	3,750,000	  
	 July 31, 2017
	  	$	3,750,000	  
	 October 31, 2017
	  	$	3,750,000	  
	 January 31, 2018
	  	$	3,750,000	  
	 April 30, 2018
	  	$	3,750,000	  
	 July 31, 2018
	  	$	3,750,000	  
	 Maturity Date
	  	 
 
 	Remaining
Outstanding Loan
Balance	  
  
  

 ; provided, that each Scheduled Repayment set forth above will be reduced pro rata to the extent of any
voluntary prepayment made pursuant to Section 2.10(a) above and as a result of any purchase and cancellation of Loans pursuant to Section 2.10(d). 

(c) Particular Loans to be Prepaid. With respect to each repayment or prepayment of Loans made or required by this Section, the
Borrower shall designate the Types of Loans that are to be repaid or prepaid and the specific Borrowing(s) pursuant to which such repayment or prepayment is to be made, provided, however, that (i) the Borrower shall first so designate
all Loans that are Base Rate Loans and Eurodollar Loans with Interest Periods ending on the date of repayment or prepayment prior to designating any other Eurodollar Loans for repayment or prepayment, and (ii) if the outstanding principal
amount of Eurodollar Loans made pursuant to a Borrowing is reduced below the applicable Minimum Borrowing Amount as a result of any such repayment or prepayment, then all the Loans outstanding pursuant to such Borrowing shall, in the case of
Eurodollar Loans, be Converted into Base Rate Loans. In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion with a
view, but no obligation, to minimize breakage costs owing under Article III. 
 (d) Below-Par Purchases. Notwithstanding anything to
the contrary contained in this Section 2.10 or any other provision of this Agreement and without otherwise limiting the rights in respect of prepayments of the Loans of the Borrower or the rights of any Lender to receive prepayments of the
Loans at par value as set forth in this Agreement, so long as no Default or Event of Default has occurred and is continuing, the Borrower may repurchase outstanding Loans pursuant to this Section 2.10(d) on the following basis: 

  
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 (i) The Borrower may make one or more offers (each, an “Offer”)
to repurchase all or any portion of the Loans (such Loans, the “Offer Loans”), including, if the Borrower chooses, on a non-pro rata basis, provided that, solely if such Offer shall be on a pro rata basis, then (A) the
Borrower shall deliver notice of its intent to make such Offer to the Administrative Agent at least five (5) Business Days in advance of the launch of any proposed Offer, (B) upon the launch of such proposed Offer, the Borrower shall
deliver a notice of such Offer to the Administrative Agent (and upon receipt by the Administrative Agent of such notice, the Administrative Agent shall promptly notify each Lender thereof) indicating (1) the last date on which such Offer may be
accepted, (2) the maximum dollar amount of such Offer, and (3) the repurchase price per dollar of principal amount of such Offer Loans at which the Borrower is willing to repurchase such Offer Loans (which price may, but need not be, below
par), (C) the minimum dollar amount of each Offer shall be $1,000,000 or an integral multiple of $500,000 in excess thereof, (D) the Borrower shall hold such Offer open for a minimum period of days to be reasonably determined by the
Administrative Agent and the Borrower prior to the making of any such Offer, (E) any Lender which elects to participate in the Offer may choose to sell all or part of such Lender’s Offer Loans; (F) such Offer shall be conducted
pursuant to such procedures the Administrative Agent may establish in consultation with the Borrower (which shall be consistent with this Section 2.10(d)) which procedures may include a requirement that that the Borrower represent and warrant
that no facts or circumstances with respect to any Credit Party (or its Subsidiaries) exist which are not publicly known that could be material to a Lender’s decision to participate in such Offer; 

(ii) With respect to all repurchases made by the Borrower pursuant to this Section 2.10(d), such repurchases shall not be
deemed to be voluntary prepayments pursuant to this Section 2.10, or Section 2.11; 
 (iii) Upon the purchase by
the Borrower of any Loans pursuant to this Section 2.10(d), (A) automatically and without the necessity for any notice or any other action, all principal and accrued and unpaid interest on the Loans so repurchased shall be deemed to have
been paid for all purposes and shall be cancelled and no longer outstanding for all purposes of this Agreement and all other Loan Documents (and in connection with any Loan purchased pursuant to this Section 2.10(d), the Administrative Agent is
authorized to make appropriate entries in the Lender Register to reflect such cancellation) and (B) the Borrower will promptly advise the Administrative Agent of the total amount of Offer Loans that were repurchased from each Lender who elected
to participate in the Offer; and 
 (iv) Failure by the Borrower to make any payment to a Lender required by an agreement
permitted by this Section 2.10(d) shall not constitute an Event of Default under Section 8.01(a). 
 (e) Breakage and Other
Compensation. Any prepayment made pursuant to this Section 2.10 shall be accompanied by any amounts payable in respect thereof under Article III hereof. 

(f) Call Premium. In the event that all or any portion of the Loans are (i) prepaid, refinanced or replaced with the proceeds of
any debt financing having a weighted average yield that is less than the weighted average yield of the Credit Facility (or portion thereof) so prepaid, refinanced, replaced or repriced or (ii) repriced or effectively refinanced through any
waiver, consent or amendment the result of which would be the lowering of the weighted average yield of the Credit Facility, in each case, during one of the periods set forth in the table below, such prepayment, refinancing, replacement or repricing
will be made at a premium above the principal amount so prepaid, refinanced, replaced or 

  
 31 

 
repriced, in an amount equal to the percentage, set forth opposite each such period, of the amount of Loans being prepaid, refinanced, replaced or repriced. 

 

					
	 Period
	  	Premium	 
	 After the Closing Date through the first anniversary of the Closing Date
	  	 	1	% 
	 After the first anniversary of the Closing Date through the second anniversary of the Closing Date
	  	 	2/3	% 
	 After the second anniversary of the Closing Date through the date that is six months after the second anniversary of the Closing
Date
	  	 	1/3	% 

 Section 2.11 Method and Place of Payment. 

(a) Generally. All payments made by the Borrower hereunder, under any Note or any other Loan Document, shall be made without setoff,
counterclaim or other defense. 
 (b) Application of Payments. Except as specifically set forth elsewhere in this Agreement and
subject to Section 8.03, all payments and prepayments of Loans (except pursuant to the provisions of Section 2.10(d)) shall be applied by the Administrative Agent to reduce the principal amount of the Loans made by each Lender
pro rata on the basis of their respective Commitments. 
 (c) Payment of Obligations. Except as specifically set forth
elsewhere in this Agreement, all payments under this Agreement with respect to any of the Obligations shall be made to the Administrative Agent on the date when due and shall be made at the Payment Office in immediately available funds and shall be
made in Dollars. 
 (d) Timing of Payments. Any payments under this Agreement that are made later than 1:00 P.M. (local time at
the Payment Office) shall be deemed to have been made on the next succeeding Business Day. Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day and, with respect to payments of principal, interest shall be payable during such extension at the applicable rate in effect immediately prior to such extension. 

(e) Distribution to Lenders. Upon the Administrative Agent’s receipt of payments hereunder, the Administrative Agent shall
immediately distribute to each Lender its ratable share, if any, of the amount of principal, interest, and Fees received by it for the account of such Lender; provided, however, that if at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, interest and Fees then due hereunder then, except as specifically set forth elsewhere in this Agreement and subject to Section 8.03, such funds shall be applied,
first, towards payment of interest and Fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and Fees then due to such parties, and second, towards payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties. 

Section 2.12 Defaulting Lenders. 

  
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 (a) Defaulting Lender Adjustments. Notwithstanding anything to the contrary contained in
this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender: 

(i) Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or
consent with respect to this Agreement or any other Loan Document shall be restricted as set forth in the definition of Required Lenders. 

(ii) Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the
Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 11.03 shall
be retained by the Administrative Agent and applied at such time or times as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment of any amounts
owing to the Lenders (other than such Defaulting Lender) as a result of any judgment of a court of competent jurisdiction obtained by any Lender (other than such Defaulting Lender) against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement; third, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender
as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and fourth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is a
payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, such payment shall be applied solely to pay the Loans of, all Non-Defaulting Lenders on a pro rata basis prior to
being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender
that are applied (or held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. 

(b) Defaulting Lender Cure. If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting
Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion
of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with the Commitments, whereupon such Lender will cease
to be a Defaulting Lender); provided that no adjustments will be made retroactively with respect to fees accrued or payments made on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that
except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a
Defaulting Lender. 
 ARTICLE III. 

INCREASED COSTS, ILLEGALITY AND TAXES 

Section 3.01 Increased Costs, Illegality, etc. 

  
 33 

 (a) In the event that (y) in the case of clause (i) below, the Administrative Agent or
(z) in the case of clauses (ii) and (iii) below, any Lender, shall have determined on a reasonable basis that: 

(i) on any date for determining the interest rate applicable to any Eurodollar Loan for any Interest Period that, by reason of
any changes arising after the Closing Date, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in this Agreement for such Eurodollar Loan; or 

(ii) at any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable by it
hereunder in an amount that such Lender deems material with respect to any Eurodollar Loans (other than any increased cost or reduction in the amount received or receivable resulting from the imposition of or a change in the rate of taxes or similar
charges) because of (x) any change since the Closing Date in any applicable law, governmental rule, regulation, guideline, order or request (whether or not having the force of law, but if not having the force of law, being of a type as to which
such Lender customarily complies), or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, guideline, order or request (such as, for example, but not limited to, a change in
official reserve requirements, but, in all events, excluding reserves already includable in the interest rate applicable to such Eurodollar Loan pursuant to this Agreement) or (y) other circumstances adversely affecting the London interbank
market or the position of such Lender in any such market; or 
 (iii) at any time, that the making or continuance of any
Eurodollar Loan has become unlawful by compliance by such Lender in good faith with any change since the Closing Date in any law, governmental rule, regulation, guideline or order, or the interpretation or application thereof, or would conflict with
any thereof not having the force of law but with which such Lender customarily complies, or has become impracticable as a result of a contingency occurring after the Closing Date that materially adversely affects the London interbank market; 

then, and in each such event, such Lender (or the Administrative Agent in the case of clause (i) above) shall (x) on or promptly following
such date or time and (y) within 10 Business Days of the date on which such event no longer exists give notice (by telephone confirmed in writing) to the Borrower and to the Administrative Agent of such determination (which notice the
Administrative Agent shall promptly transmit to each of the other Lenders). Thereafter (x) in the case of clause (i) above, the affected Eurodollar Loans shall no longer be available until such time as the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Continuation or Conversion given by the Borrower with respect to such Eurodollar Loans that have not yet been
Converted or Continued shall be deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the Borrower shall pay to such Lender, upon written demand therefor, such additional amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender shall determine) as shall be required to compensate such Lender, for such increased costs or reductions in amounts receivable hereunder (a written notice as to the additional
amounts owed to such Lender, showing the basis for the calculation thereof, which basis must be reasonable, submitted to the Borrower by such Lender shall be rebuttably presumed to be correct) and (z) in the case of clause (iii) above, the
Borrower shall take the action specified in Section 3.01(b) as promptly as possible and, in any event, within the time period required by law. 

(b) At any time that any Eurodollar Loan is affected by the circumstances described in Section 3.01(a)(ii) or (iii), the Borrower
may (and in the case of a Eurodollar Loan affected pursuant to Section 3.01(a)(iii) the Borrower shall), if the affected Eurodollar Loan is then outstanding, upon at least one Business Day’s notice to the Administrative Agent, require the
affected Lender to Convert each such 

  
 34 

 
Eurodollar Loan into a Base Rate Loan, provided, however, that if more than one Lender is affected at any time, then all affected Lenders must be treated the same pursuant to this
Section 3.01(b). 
 (c) If any Lender shall have determined that after the Closing Date, the adoption of any applicable law, rule or
regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged by law with the interpretation or administration
thereof, or compliance by such Lender or its parent corporation with any request or directive regarding capital adequacy (whether or not having the force of law, but if not having the force of law, being of a type as to which such Lender customarily
complies) of any such authority, central bank, or comparable agency, in each case made subsequent to the Closing Date, has or would have the effect of reducing by an amount reasonably deemed by such Lender to be material to the rate of return on
such Lender’s or its parent corporation’s capital or assets as a consequence of such Lender’s commitments or obligations hereunder to a level below that which such Lender or its parent corporation could have achieved but for such
adoption, effectiveness, change or compliance (taking into consideration such Lender’s or its parent corporation’s policies with respect to capital adequacy), then from time to time, within 15 days after demand by such Lender (with a copy
to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or its parent corporation for such reduction; provided however, that notwithstanding anything herein
to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith shall be deemed to have been enacted, adopted or issued after
the date of this Agreement, regardless of the date enacted, adopted or issued (even if enacted, adopted or issued before the date hereof ). Each Lender, upon determining in good faith that any additional amounts will be payable pursuant to this
Section 3.01(c), will give prompt written notice thereof to the Borrower, which notice shall set forth, in reasonable detail, the basis of the calculation of such additional amounts, which basis must be reasonable, although the failure to give
any such notice shall not release or diminish any of the Borrower’s obligations to pay additional amounts pursuant to this Section 3.01(c) upon the subsequent receipt of such notice. Notwithstanding anything in this Section to the
contrary, (i) no Lender shall demand compensation for any amounts referred to in this Section 3.01(c) if it shall not at the time be the general policy or practice of such Lender to demand such compensation, payment or reimbursement in
similar circumstances under comparable provisions of other credit agreements, and (ii) the Borrower shall not be required to pay any amounts pursuant to this Section 3.01 for any period ending 180 days or more prior to the demand for
payment of such amount. 
 Section 3.02 Breakage Compensation. The Borrower shall compensate each Lender, upon its written
request (which request shall set forth the detailed basis for requesting and the method of calculating such compensation), for all reasonable losses and liabilities (including, without limitation, any loss, cost, expense or liability incurred by
reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its Eurodollar Loans but excluding any administrative and/or processing fees) which such Lender may sustain in connection with any of the following:
(i) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing of Eurodollar Loans does not occur on a date specified therefor in a Notice of Borrowing or a Notice of Continuation or Conversion (whether or
not withdrawn by the Borrower or deemed withdrawn pursuant to Section 3.01(a)); (ii) if any repayment or prepayment (whether voluntary or mandatory) or Conversion or Continuation of any Eurodollar Loans occurs on a date that is not the
last day of an Interest Period applicable thereto; (iii) if any prepayment of any of its Eurodollar Loans is not made on any date specified in a notice of prepayment given by the Borrower; (iv) as a result of an assignment by a Lender of
any Eurodollar Loan other than on the last day of the Interest Period applicable thereto pursuant to a request by the Borrower pursuant to Section 3.04(b). The written request of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the Borrower within 30 Business Days of the incurrence by such Lender of such loss or liability provided for 

  
 35 

 
in this Section to be compensated by the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such request within 10 days
after receipt thereof. 
 Section 3.03 Net Payments. 

(a) Except as provided for in Section 3.03(b), all payments made by the Borrower hereunder, under any Note or any other Loan Document
will be made free and clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein with respect to such payments (but excluding (i) any tax imposed on or measured by the net income or net profits of a recipient and franchise taxes or alternative minimum taxes imposed on the
recipient pursuant to the laws of the jurisdiction under which such recipient is organized or the jurisdiction in which the principal office or Applicable Lending Office of such recipient, as applicable, is located or any subdivision thereof or
therein, (ii) any branch profits tax imposed on any recipient by the United States or by the jurisdiction of the recipient’s organization principal office or Applicable Lending Office, (iii) any tax attributable to Lender’s
failure to comply with Section 3.03(b), if it is legally entitled to do so, (iv) in the case of a Lender that is not a United States Person (as such term is defined in Section 7701(a)(30) of the Code), any withholding tax that is in
effect and would apply to amounts payable to such Lender at the time it becomes a party to this Agreement (or designates a new Applicable Lending Office), except to the extent such Lender (or assignor) was entitled at the time of designation of a
new Applicable Lending Office or assignment to receive additional amounts from the Borrower with respect to any withholding tax pursuant to this Section 3.03) or (v) any withholding taxes imposed pursuant to the FATCA and all interest,
penalties or similar liabilities with respect to such non-excluded taxes, levies imposts, duties, fees, assessments or other charges (all such non-excluded taxes, levies, imposts, duties, fees assessments or other charges being referred to
collectively as “Taxes”). Subject to Section 3.03(b), if any Taxes are so levied or imposed, the Borrower agrees to pay such additional amounts (including additional amounts to compensate for withholding on amounts paid
pursuant to this Section 3.03) as may be necessary so that every payment by it of all amounts due hereunder, under any Note or under any other Loan Document, after withholding or deduction for or on account of any Taxes will not be less than
the amount such Lender would have received had no deduction, withholding or payment been required or made with respect to such Taxes. Subject to Section 3.03(b), the Borrower will indemnify and hold harmless the Administrative Agent and each
Lender, and reimburse the Administrative Agent or such Lender upon its written request, for the amount of any Taxes imposed on and paid by such Lender. The Borrower will furnish to the Administrative Agent within 45 days after the date the payment
of any Taxes, or any withholding or deduction on account thereof, is due pursuant to applicable law certified copies of tax receipts, or other evidence satisfactory to the respective Lender, evidencing such payment by the Borrower. 

(b) Each Lender that is not a United States Person (as such term is defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes and that is entitled to claim an exemption from or reduction in United States withholding tax with respect to a payment by the Borrower agrees to provide to the Borrower and the Administrative Agent on or prior to the Closing Date, or in
the case of a Lender that is an assignee or transferee of an interest under this Agreement pursuant to Section 11.06 (unless the respective Lender was already a Lender hereunder immediately prior to such assignment or transfer and such Lender
is in compliance with the provisions of this Section), on the date of such assignment or transfer to such Lender, and from time to time thereafter if required by the Borrower or the Administrative Agent: two accurate and complete original signed
copies of Internal Revenue Service Forms W-8BEN, W-8ECI, W-8EXP or W-8IMY (or successor, substitute or other appropriate forms and, in the case of Form W-8IMY, complete with accompanying Forms W-8BEN or other appropriate forms with respect to
beneficial owners of the payment) certifying to such Lender’s entitlement to exemption 

  
 36 

 
from or a reduced rate of withholding of United States withholding tax with respect to payments to be made under this Agreement, any Note or any other Loan Document, along with any other
appropriate documentation establishing such exemption or reduction (such as statements certifying qualification for exemption with respect to portfolio interest). In addition, each Lender agrees that from time to time after the Closing Date, when a
lapse in time or change in circumstances renders the previous certification obsolete or inaccurate in any material respect, it will deliver to the Borrower and the Administrative Agent two new accurate and complete original signed copies of the
applicable Internal Revenue Service Form establishing such exemption or reduction and any related documentation (such as statements certifying qualification for exemption with respect to portfolio interest) as may be required in order to confirm or
establish the entitlement of such Lender to a continued exemption from or reduction in United States withholding tax if the Lender continues to be so entitled. Each Lender that is a United States Person (as such term is defined in
Section 7701(a)(30) of the Code) for Federal income tax purposes shall deliver to the Borrower and the Administrative Agent, on or prior to the Closing Date, or in the case of a Lender that is an assignee or transferee of an interest under this
Agreement pursuant to Section 11.06 (unless the respective Lender was already a Lender hereunder immediately prior to such assignment or transfer and such Lender is in compliance with the provisions of this Section) two accurate and complete
original signed copies of Internal Revenue Service Form W-9 (or successor, substitute or other appropriate form prescribed by the Internal Revenue Service). No Lender shall be required by this Section 3.03(b) to deliver a form or certificate
that it is not legally entitled to deliver. The Borrower shall not be obligated pursuant to Section 3.03(a) hereof to pay additional amounts on account of or indemnify with respect to United States withholding taxes or backup withholding taxes
to the extent that such taxes arise solely due to a Lender’s failure to deliver forms that it was legally entitled to but failed to deliver under this Section 3.03(b). Except to the extent otherwise provided in this Agreement, the Borrower
agrees to pay additional amounts and indemnify each Lender in the manner and to the extent set forth in Section 3.03(a) in respect of any Taxes deducted or withheld by it as a result of any changes after the date in which such Lender becomes a
party to this Agreement in any applicable law, treaty, governmental rule, regulation, guideline or order, or in the interpretation thereof, relating to the deducting or withholding of Taxes. 

(c) If any Lender becomes aware that it has finally and irrevocably received or been granted a refund in respect of any Taxes as to
which indemnification has been paid by the Borrower pursuant to this Section 3.03, it shall promptly remit such refund (including any interest received in respect thereof) to the relevant Borrower, net of all out-of-pocket costs and expenses to
the Borrower; provided, however, that the Borrower agrees to promptly return any such refund (plus interest) to such Lender in the event such Lender is required to repay such refund to the relevant taxing authority and, provided
further, that nothing in this Section 3.03(c) shall require any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential). Any such Lender shall use commercially reasonable efforts
to provide the Borrower with a copy of any notice of assessment from the relevant taxing authority (redacting any unrelated confidential information contained therein) requiring repayment of such refund. Nothing contained herein shall impose an
obligation on any Lender to apply for any such refund. 
 (d) If a payment made to a Lender (or any other recipient) under this
Agreement may be subject to withholding tax under the FATCA, such Lender (or recipient) shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower
or the Administrative Agent, such documentation prescribed by applicable law and such additional documentation reasonably requested by the Borrower or the Administrative Agent to comply with its withholding obligations, to determine that such Lender
(or recipient) (including their direct or indirect interest holders, as may be relevant) has complied with its obligations under the FATCA such that no withholdings obligations exist and such Lender (and its direct or indirect interest holders, if

  
 37 

 
any) has entered into the required agreement with the Secretary of the Treasury of the United States of America or to determine the amount to deduct and withhold from such payment. 

Section 3.04 Change of Lending Office; Replacement of Lenders. 

(a) Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Sections 3.01(a)(ii) or (iii), 3.01(c) or
3.03 requiring the payment of additional amounts to (or indemnify) the Lender, such Lender will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another Applicable Lending
Office for any Loans or Commitments affected by such event; provided, however, that such designation is made on such terms that such Lender and its Applicable Lending Office suffer no economic, legal or regulatory disadvantage deemed by such
Lender to be material, with the object of avoiding the consequence of the event giving rise to the operation of any such Section. 

(b) If (i) any Lender requests any compensation, reimbursement or other payment under Sections 3.01(a)(ii) or (iii) or
3.01(c) with respect to such Lender, (ii) the Borrower is required to pay any additional amount to any Lender or Governmental Authority pursuant to Section 3.03, (iii) any Lender is a Defaulting Lender at such time or (iv) in
connection with any proposed amendment, modification, termination, waiver or consent with respect to any of the provisions hereof as contemplated by Section 11.12(a), the consent of Required Lenders shall have been obtained but the consent of
one or more of such other Lenders whose consent is required shall not have been obtained; then, with respect to each such Lender pursuant to clauses (i), (ii), (iii) and (iv), the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with the restrictions contained in Section 11.06(c), all its interests, rights and obligations under this Agreement to an
Eligible Assignee that shall assume such obligations; provided, however, that such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees, but subject, in the case of a Defaulting Lender, to the provisions of Section 2.12(a)(ii) hereof) or the Borrower (in the
case of all other amounts, including any breakage compensation under Section 3.02 hereof). A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation cease to apply. Nothing in this Section 3.04 shall affect or postpone any of the obligations of the Borrower or the right of any Lender provided in Sections 3.01 or
3.03. In the event such Lender is being replaced as a result of the condition set forth in clause (iii) above, each replacement Lender shall consent, at the time of such assignment, to each matter in respect of which such Lender being replaced
was not consenting. Each Lender agrees that if the Borrower exercises its option hereunder to cause an assignment by such Lender under this Section 3.04(b), such Lender shall, promptly after receipt of written notice of such election, execute
and deliver all documentation necessary to effectuate such assignment in accordance with Section 11.06. In the event that a Lender does not comply with the requirements of the immediately preceding sentence within one Business Day after receipt
of such notice, each Lender hereby authorizes and directs the Administrative Agent to execute and deliver such documentation as may be required to give effect to an assignment in accordance with Section 11.06 on behalf of such Lender and any
such documentation so executed by the Administrative Agent shall be effective for purposes of documenting an assignment pursuant to Section 11.06. 

  
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 ARTICLE IV. 

CONDITIONS PRECEDENT 

Section 4.01 Conditions Precedent at Closing Date. The obligation of the Lenders to make Loans is subject to the satisfaction of
each of the following conditions on or prior to the Closing Date: 
 (i) Credit Agreement. This Agreement shall have
been executed by the Borrower, the Administrative Agent and each of the Lenders. 
 (ii) Notes. The Borrower shall
have executed and delivered to the Administrative Agent the appropriate Note or Notes for the account of each Lender that has requested the same at least five Business Days prior to the Closing Date. 

(iii) Subsidiary Guaranty. The Subsidiary Guarantors shall have duly executed and delivered a Guaranty of Payment (the
“Subsidiary Guaranty”), substantially in the form attached hereto as Exhibit C. 
 (iv) Corporate
Resolutions and Approvals. The Administrative Agent shall have received certified (by the Secretary or the Assistant Secretary of the applicable Credit Party) copies of the resolutions of the Board of Directors of the Borrower and each
Subsidiary Guarantor, approving the Loan Documents to which the Borrower or any such Subsidiary Guarantor, as the case may be, is or may become a party, and of all documents evidencing other necessary corporate action and governmental approvals, if
any, with respect to the execution, delivery and performance by the Borrower or any such Subsidiary Guarantor of the Loan Documents to which it is or may become a party. 

(v) Incumbency Certificates. The Administrative Agent shall have received a certificate of the Secretary or an Assistant
Secretary of the Borrower and of each Subsidiary Guarantor, certifying the names and true signatures of the officers of the Borrower or such Subsidiary Guarantor, as the case may be, authorized to sign the Loan Documents to which the Borrower or
such Subsidiary Guarantor is a party and any other documents to which the Borrower or any such Subsidiary Guarantor is a party that may be executed and delivered in connection herewith. 

(vi) Opinion of Counsel. The Administrative Agent shall have received such opinions of counsel from counsel to the
Borrower and the Subsidiary Guarantors as the Administrative Agent shall reasonably request, each of which shall be addressed to the Administrative Agent and each of the Lenders on the Closing Date and dated the Closing Date and in form and
substance reasonably satisfactory to the Administrative Agent. 
 (vii) Search Reports. The Administrative Agent shall
have received the results of UCC, federal and state tax and judgment lien, civil suit and other search reports of the Borrower and the Subsidiary Guarantors from one or more commercial search firms acceptable to the Administrative Agent. 

(viii) Corporate Charter and Good Standing Certificates. The Administrative Agent shall have received: (A) an
original certified copy of the certificate or articles of incorporation or equivalent formation document of each Credit Party and any and all amendments and restatements thereof, certified as of a recent date by the relevant Secretary of State;
(B) a copy 

  
 39 

 
of the By-Laws, Code of Regulations or Limited Partnership Agreement (or equivalent document) of each Credit Party certified by an Authorized Officer of such Credit Party as being true and
correct; (C) an original good standing certificate from the Secretary of State of the state of incorporation, dated as of a recent date, listing all charter documents affecting such Credit Party and certifying as to the good standing of such
Credit Party; and (D) original certificates of good standing from each other jurisdiction in which each Credit Party is authorized or qualified to do business, except for jurisdictions for which the absence of good standing would not have a
Material Adverse Effect. 
 (ix) Closing Certificate. The Administrative Agent shall have received a certificate
substantially in the form of Exhibit E hereto, dated the Closing Date, of an Authorized Officer of the Borrower to the effect that, at and as of the Closing Date: (A) no Default or Event of Default has occurred or is continuing; and
(B) all representations and warranties of the Credit Parties contained herein and in the other Loan Documents are true and correct in all material respects as of the Closing Date. 

(x) Solvency Certificate. The Administrative Agent shall have received a solvency certificate substantially in the form
attached hereto as Exhibit F, dated as of the Closing Date, and executed by the Chief Financial Officer of the Borrower. 

(xi) No Litigation. There shall not exist any action, suit, investigation or proceeding pending or threatened in any
court or before any arbitrator or Governmental Authority that purports to have a Material Adverse Effect on the ability of either the Borrower or any Subsidiary Guarantor to perform its respective obligations under the Loan Documents to which it is
a party. 
 (xii) Notice. The Administrative Agent shall have received a Notice of Borrowing meeting the requirements
of Section 2.03 with respect to the Borrowing to be made on the Funding Date. 
 (xiii) No Default; Representations
and Warranties. (i) No Default or Event of Default shall be continuing and (ii) all representations and warranties of the Credit Parties contained herein or in the other Loan Documents shall be true and correct in all material respects
as of the Closing Date. 
 Section 4.02 Conditions Precedent to Credit Events after Closing Date. The obligations of the Lenders
to make Loans on the Funding Date and make or participate in each Credit Event thereafter, are subject, at the time thereof, to the satisfaction, or waiver in accordance with Section 11.12, of the following conditions: 

(a) Notice. The Administrative Agent shall have received, (i) with respect to the Borrowing made on the Funding Date, a Notice of
Borrowing meeting the requirements of Section 2.03, and (ii) with respect to a Continuation or Conversion after the Funding Date, a Notice of Continuation or Conversion meeting the requirements of Section 2.07. 

(b) Fees. With respect to the Borrowing made on the Funding Date, the Borrower shall have (A) paid to the Administrative Agent,
for its own account, the fees required to be paid pursuant to the Administrative Agent Fee Letter, (B) paid to each Co-Lead Arranger and each other Lender the fees, if any, it has agreed to pay to each such Co-Lead Arranger and each other
Lender and (C) paid or caused to be paid all reasonable out-of-pocket fees and expenses of the Administrative Agent and of special counsel to the Administrative Agent that have been invoiced on or prior to the Funding Date in connection with

  
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the preparation, execution and delivery of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby as required by the Administrative
Agent Fee Letter. 
 (c) No Default; Representations and Warranties. As of the Funding Date, both before and after giving effect to
the Borrowings on such date and the application of the proceeds thereof, and at the time of each Credit Event thereafter, both before and after giving effect thereto, (i) no Default or Event of Default shall be continuing and (ii) all
representations and warranties of the Credit Parties contained herein or in the other Loan Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the
date of such Credit Event, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties shall have been true and correct in all material respects as of
the date when made. 
 The acceptance of the benefits of the Borrowing on the Funding Date and each other Credit Event shall constitute a
representation and warranty by the Borrower to the Administrative Agent and each of the Lenders that all of the applicable conditions specified in Section 4.01 and Section 4.02 have been satisfied as of the times referred to in such
Sections. 
 ARTICLE V. 

REPRESENTATIONS AND WARRANTIES 

In order to induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Loans provided for herein, the
Borrower makes the following representations and warranties to, and agreements with, the Administrative Agent and the Lenders, all of which shall survive the execution and delivery of this Agreement and each Credit Event: 

Section 5.01 Corporate Status. The Borrower and each of its Subsidiaries (i) is a duly organized or formed and validly
existing corporation, partnership or limited liability company, as the case may be, in good standing or in full force and effect under the laws of the jurisdiction of its formation and has the corporate, partnership or limited liability company
power and authority, as applicable, to own its property and assets and to transact the business in which it is engaged and presently proposes to engage, and (ii) has duly qualified and is authorized to do business in all jurisdictions where it
is required to be so qualified or authorized except where the failure to be so qualified would not have a Material Adverse Effect. Schedule 5.01 hereto lists, as of the Closing Date, each Subsidiary of the Borrower (and the direct and
indirect ownership interest of the Borrower therein). 
 Section 5.02 Corporate Power and Authority. Each Credit Party has the
corporate or other organizational power and authority to execute, deliver and carry out the terms and provisions of the Loan Documents to which it is party and has taken all necessary corporate or other organizational action to authorize the
execution, delivery and performance of the Loan Documents to which it is party. Each Credit Party has duly executed and delivered each Loan Document to which it is party and each Loan Document to which it is party constitutes the legal, valid and
binding agreement and obligation of such Credit Party enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law). 

Section 5.03 No Violation. Neither the execution, delivery and performance by any Credit Party of the Loan Documents to which it
is party nor compliance with the terms and provisions thereof (i)

  
 41 

 
will contravene any provision of any law, statute, rule, regulation, order, writ, injunction or decree of any Governmental Authority applicable to such Credit Party or its properties and assets,
except where such contravention would not have a Material Adverse Effect, (ii) will conflict with or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of such Credit Party pursuant to the terms of any material promissory note, bond, debenture, indenture, mortgage, deed of trust, credit or loan
agreement, or any other material agreement or other instrument, to which such Credit Party is a party or by which it or any of its property or assets are bound or to which it may be subject, except to the extent such conflict, breach or lien would
not reasonably be expected to result in a Material Adverse Effect, or (iii) will violate any provision of the Organizational Documents of such Credit Party. 

Section 5.04 Governmental Approvals. No order, consent, approval, license, authorization, or validation of, or filing, recording
or registration with, or exemption by, any Governmental Authority is required to authorize or is required as a condition to (i) the execution, delivery and performance by any Credit Party of any Loan Document to which it is a party or any of
its obligations thereunder, or (ii) the legality, validity, binding effect or enforceability of any Loan Document to which any Credit Party is a party, except for any such approvals or consents the failure of which to obtain would not
reasonably be expected to result in a Material Adverse Effect. 
 Section 5.05 Litigation. Other than as set forth on Schedule
5.05, there are no actions, suits or proceedings pending or, to, the knowledge of the Borrower, threatened with respect to the Borrower or any of its Subsidiaries (i) that have had, or would reasonably be expected to have, a Material Adverse
Effect, or (ii) that question the validity or enforceability of any of the Loan Documents, or of any action to be taken by the Borrower or any of the other Credit Parties required by any of the Loan Documents. 

Section 5.06 Use of Proceeds; Margin Regulations. 

(a) The proceeds of all Loans shall be used by the Borrower for working capital and general corporate purposes of the Borrower and its
Subsidiaries, including to repay Indebtedness of the Borrower and its Subsidiaries, and for Permitted Acquisitions, in each case, not inconsistent with the terms of this Agreement and not in violation of law. 

(b) No part of the proceeds of any Credit Event will be used directly or indirectly to purchase or carry Margin Stock, or to extend credit to
others for the purpose of purchasing or carrying any Margin Stock, in violation of any of the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System. The Borrower is not engaged in the business of extending
credit for the purpose of purchasing or carrying any Margin Stock. At no time would more than 25% of the value of the assets of the Borrower or of the Borrower and its consolidated Subsidiaries that are subject to any “arrangement” (as
such term is used in Section 221.2(g) of such Regulation U) hereunder be represented by Margin Stock. 
 Section 5.07 Financial
Statements. 
 (a) The Borrower has furnished to the Administrative Agent and the Lenders complete and correct copies of the Financial
Statements. The Financial Statements have been prepared in accordance with GAAP, consistently applied (except as stated therein), and fairly present in all material respects the financial position of the Borrower and its Subsidiaries as of the
respective dates indicated and the consolidated results of their respective operations and cash flows for the respective periods indicated, subject in the case of any such Financial Statements that are unaudited, to normal audit adjustments, none

  
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of which could reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any its Subsidiaries have, as of the date of the latest Financial Statements referred to above,
and will not have as of the Closing Date or after giving effect to the incurrence of Loans hereunder on the Funding Date, any material or significant contingent liability or liability for taxes, long-term leases or unusual forward or long-term
commitments not reflected in the foregoing financial statements (or any 10-K filed by the Borrower in connection therewith) or the notes thereto in accordance with GAAP and that in any such case is material in relation to the business, operations,
properties, assets, financial or other condition or prospects of the Borrower and its Subsidiaries. 
 (b) [Reserved]. 

Section 5.08 Solvency. The Borrower has received consideration that is the reasonable equivalent value of the obligations and
liabilities that the Borrower has incurred to the Administrative Agent and the Lenders under the Loan Documents. The Borrower now has capital sufficient to carry on its business and transactions and all business and transactions in which it is about
to engage and is now solvent and able to pay its debts as they mature and the Borrower owns property having a value, both at fair valuation and at present fair salable value, greater than the amount required to pay the Borrower’s debts; and the
Borrower is not entering into the Loan Documents with the intent to hinder, delay or defraud its creditors. For purposes of this Section, “debt” means any liability on a claim, and “claim” means (x) right to
payment whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured; or (y) right to an equitable remedy for breach of
performance if such breach gives rise to a payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured. 

Section 5.09 No Material Adverse Change. Since October 31, 2012, there has been no change in the business, affairs,
operations, financial or other condition of the Borrower and its Subsidiaries taken as a whole, or their properties and assets considered as an entirety, except for changes none of which, individually or in the aggregate, has had or could
reasonably be expected to have, a Material Adverse Effect. 
 Section 5.10 Tax Returns and Payments. The Borrower and each of
its Subsidiaries have filed all federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by it and has paid all material taxes and assessments payable by it that have become due, other than those not
yet delinquent and except for those contested in good faith. The Borrower and each of its Subsidiaries has established on its books such charges, accruals and reserves in respect of taxes, assessments, fees and other governmental charges for all
fiscal periods as are required by GAAP. Neither the Borrower nor any of its Subsidiaries knows of any proposed assessment for additional federal, foreign or state taxes for any period, or of any basis therefor, which, individually or in the
aggregate, taking into account such charges, accruals and reserves in respect thereof as the Borrower and its Subsidiaries have made, would reasonably be expected to have a Material Adverse Effect. 

Section 5.11 Title to Properties, etc. Except as would not reasonably be expected to result in a Material Adverse Effect, the
Borrower and each of its Subsidiaries have good and marketable title, in the case of Real Property, and good title (or valid Leaseholds, in the case of any leased property), in the case of all other property, to all of its properties and assets free
and clear of Liens other than Permitted Liens. Except as would not reasonably be expected to result in a Material Adverse Effect, the interests of the Borrower and its Subsidiaries in the properties reflected in their most recent balance sheets,
taken as a whole, are sufficient, in the judgment of the Borrower, as of the date of such balance sheet for purposes of the ownership and operation of the businesses conducted by the Borrower and its Subsidiaries. 

  
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 Section 5.12 Lawful Operations, etc. The Borrower and each of its Subsidiaries:
(i) hold all necessary foreign, federal, state, local and other governmental licenses, registrations, certifications, permits and authorizations necessary to conduct its business; and (ii) are in full compliance with all requirements
imposed by law, regulation or rule, whether foreign, federal, state or local, that are applicable to it, its operations, or its properties and assets, except for any failure to obtain and maintain in effect, or noncompliance, that,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
 Section 5.13 Environmental
Matters. 
 (a) The Borrower and each of its Subsidiaries (i) are in compliance with all applicable Environmental Laws;
(ii) have obtained all licenses, permits, registrations or approvals required for the conduct of the business of the Borrower and its Subsidiaries under any Environmental Law or have submitted an outstanding, timely application and are in
compliance therewith; (iii) have not received written notice, or otherwise knows, that it is in any respect in noncompliance with, breach of or default under any applicable writ, order, judgment, injunction, or decree to which the Borrower or
such Subsidiary is a party or that would materially affect the ability of the Borrower or such Subsidiary to operate any Real Property; and (iv) are not subject to any pending or, to the knowledge of the Borrower, threatened Environmental
Claims; except for any failure to comply or obtain, any written notices and any Environmental Claims that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 

(b) Neither the Borrower nor any of its Subsidiaries have at any time (i) generated, used, treated or stored Hazardous Materials on any
Real Property of the Borrower or any of its Subsidiaries or (ii) released Hazardous Materials on any such Real Property, except, in each case, where such occurrence or event is not reasonably likely to have a Material Adverse Effect. 

Section 5.14 Compliance with ERISA. The Borrower and each of its Subsidiaries and each ERISA Affiliate (i) have fulfilled all
material obligations under the minimum funding standards of ERISA and the Code with respect to each Plan that is not a Multiemployer Plan or a Multiple Employer Plan, (ii) have satisfied all material contribution obligations in respect of each
Multiemployer Plan and each Multiple Employer Plan, (iii) is in compliance in all material respects with all other applicable provisions of ERISA and the Code with respect to each Plan, each Multiemployer Plan and each Multiple Employer Plan,
and (iv) have not incurred any unsatisfied material liability under Title IV of ERISA to the PBGC (other than required premium payments to the PBGC) with respect to any Plan, any Multiemployer Plan, any Multiple Employer Plan, or any trust
established thereunder that could reasonably be expected to result in a Material Adverse Effect. No Plan or trust created thereunder has been terminated within the last 5 years, and there have been no Reportable Events, with respect to any Plan or
trust created thereunder or with respect to any Multiemployer Plan or Multiple Employer Plan, which termination or Reportable Event will or could reasonably be expected to result in a Material Adverse Effect with respect to the Borrower or any ERISA
Affiliate in respect thereof. Neither the Borrower nor any Subsidiary of the Borrower nor any ERISA Affiliate is at the date hereof, or has been at any time within the five years preceding the date hereof, an employer required to contribute to any
Multiemployer Plan or Multiple Employer Plan, or a “contributing sponsor” (as such term is defined in Section 4001 of ERISA) in any Multiemployer Plan or Multiple Employer Plan. Neither the Borrower nor any Subsidiary of the Borrower
has any contingent liability with respect to any post-retirement “welfare benefit plan” (as such term is defined in ERISA) except as has been disclosed to the Administrative Agent and the Lenders in writing or as would not have or be
reasonably be expected to have a Material Adverse Effect. 

  
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 Section 5.15 Intellectual Property, etc. The Borrower and each of its Subsidiaries
have obtained or have the rights to all material patents, trademarks, service marks, trade names, copyrights, licenses and other rights with respect to the foregoing necessary for the present and planned future conduct of its business, without any
known conflict with the rights of others, except in the case in which such conflict would not have or be reasonably expected to cause a Material Adverse Effect. 

Section 5.16 Investment Company Act, etc. Neither the Borrower nor any of its Subsidiaries is subject to regulation with respect
to the creation or incurrence of Indebtedness under the Investment Company Act of 1940, as amended, the Interstate Commerce Act, as amended, the Federal Power Act, as amended, or any applicable state public utility law. 

Section 5.17 Insurance. The Borrower and each of its Subsidiaries maintain insurance coverage by such insurers and in such forms
and amounts and against such risks as are generally consistent with industry standards and in each case in compliance with the terms of Section 6.03. 

Section 5.18 True and Complete Disclosure. All factual information (taken as a whole) heretofore or contemporaneously furnished by
or on behalf of the Borrower or any of its Subsidiaries in writing to the Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated herein, other than the Financial Projections (as to
which representations are made only as provided in Section 5.07(b)), is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of such Person in writing to the Administrative Agent or any Lender in
connection with this Agreement will be, true and accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting to state any material fact necessary to make such information (taken as
a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided, except that any such future information consisting of financial projections prepared by the Borrower or any of its
Subsidiaries is only represented herein as being based on good faith estimates and assumptions believed by such persons to be reasonable at the time made, it being recognized by the Lenders that such projections as to future events are not to be
viewed as facts and that actual results during the period or periods covered by any such projections may differ materially from the projected results. 

Section 5.19 Defaults. No Default or Event of Default is continuing as of the Closing Date, nor will any Default or Event of
Default be continuing immediately after the execution and delivery of this Agreement. 
 Section 5.20 Anti-Terrorism Law
Compliance. Neither the Borrower nor any of its Subsidiaries is in violation of any law or regulation, or identified in any list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control list, Executive
Order No. 13224 or the USA Patriot Act), that prohibits or limits the conduct of business with or the receiving of funds, goods or services to or for the benefit of certain Persons specified therein or that prohibits or limits any Lender from
making any advance or extension of credit to the Borrower or from otherwise conducting business with the Borrower. 
 ARTICLE VI. 

AFFIRMATIVE COVENANTS 

The Borrower hereby covenants and agrees that on the Closing Date and thereafter so long as this Agreement is in effect and until such time as
the Commitments have been terminated, no Notes remain outstanding and the Loans, together with interest, Fees and all other Obligations incurred hereunder and under the other Loan Documents (other than amounts in respect of indemnification, expense

  
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reimbursement, yield protection or tax gross-up and contingent obligations, in each case that are owing and with respect to which not claim has been made), have been paid in full: 

Section 6.01 Reporting Requirements. The Borrower will furnish to the Administrative Agent (who shall promptly provide a copy to
each Lender in accordance with Section 11.05(c) hereof): 
 (a) Annual Financial Statements. As soon as available and in any
event within 100 days after the close of each fiscal year of the Borrower, the audited consolidated balance sheets of the Borrower and its consolidated Subsidiaries as at the end of such fiscal year and the related consolidated and consolidating
statements of income, of stockholders’ equity and of cash flows for such fiscal year, and in the case of such consolidated financial statements, setting forth comparative figures for the preceding fiscal year, all in reasonable detail and
accompanied by the opinion with respect to such consolidated financial statements of independent public accountants of recognized national standing selected by the Borrower and such consolidated statements shall (A) contain an unqualified
opinion and state that such accountants audited such consolidated financial statements in accordance with generally accepted auditing standards, that such accountants believe that such audit provides a reasonable basis for their opinion, and that in
their opinion such consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Borrower and its consolidated subsidiaries as at the end of such fiscal year and the consolidated results of
their operations and cash flows for such fiscal year in conformity with generally accepted accounting principles, and setting forth comparative figures for the preceding fiscal year, or (B) contain such statements as are customarily included in
unqualified reports of independent accountants in conformity with the recommendations and requirements of the American Institute of Certified Public Accountants (or any successor organization). Any financial statements required to be delivered
pursuant to this Section 6.01(a) shall be deemed to have been furnished to the Administrative Agent on the date that (i) such financial statement is posted on the Securities and Exchange Commission’s website at www.sec.gov or
the website for the Borrower and (ii) the Administrative Agent has been provided written notice of such posting. 
 (b) Quarterly
Financial Statements. As soon as available and in any event within 55 days after the close of each of the quarterly accounting periods in each fiscal year of the Borrower, the unaudited consolidated balance sheets and statement of cash flows of
the Borrower and its consolidated Subsidiaries as at the end of such quarterly period and the related unaudited consolidated statements of income for such quarterly period and/or for the fiscal year to date, and setting forth, in the case of such
unaudited consolidated statements of income and of cash flows, comparative figures for the related periods in the prior fiscal year, and which shall be certified on behalf of the Borrower by the Chief Financial Officer of the Borrower, subject to
changes resulting from normal year-end audit adjustments. Any financial statements required to be delivered pursuant to this Section 6.01(b) shall be deemed to have been furnished to the Administrative Agent on the date that (i) such
financial statement is posted on the Securities and Exchange Commission’s website at www.sec.gov or the website for the Borrower and (ii) the Administrative Agent has been provided written notice of such posting. 

(c) Officer’s Compliance Certificates. At the time of the delivery of the financial statements provided for in subparts
(a) and (b) above, a certificate (a “Compliance Certificate”), substantially in the form of Exhibit D, and setting forth the calculations required to establish compliance with the provisions of Section 7.07,
signed by the Chief Financial Officer of the Borrower and including a certification that, (i) no Default or Event of Default exists or, if any Default or Event of Default does exist, specifying the nature and extent thereof and the actions the
Borrower has taken or proposes to take with respect thereto, and (ii) the representations and warranties of the Credit Parties are true and correct in all material respects on and as of the date of delivery of such Compliance Certificate,
except to the extent that any relate to an earlier specified date, in which case, such representations shall be true and correct in all material respects as of the date made. 

  
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 (d) Budgets. Within 90 days after the end of each fiscal year of the Borrower, commencing
with the fiscal year ending October 31, 2013, a consolidated budget in reasonable detail for each of the four fiscal quarters of the then current fiscal year, which budget shall be in form and detail reasonably satisfactory to the
Administrative Agent. 
 (e) Notices. Promptly, and in any event within three Business Days, after: 

(i) any Authorized Officer obtaining knowledge of the occurrence of any event that constitutes a Default or Event of Default,
notice thereof, which notice shall specify the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto; or 

(ii) notice of the occurrence of any event or condition that has had or would reasonably be expected to have a Material Adverse
Effect. 
 (f) ERISA. Promptly, and in any event within 10 Business Days after an Authorized Officer of the Borrower or any of its
Subsidiaries obtaining knowledge of the occurrence of any of the following, the Borrower will deliver to the Administrative Agent and each of the Lenders a certificate on behalf of the Borrower of an Authorized Officer of the Borrower setting forth
the details as to such occurrence and the action, if any, that the Borrower or such Subsidiary of the Borrower or such ERISA Affiliate is required or proposes to take, together with any notices required or proposed to be given by the Borrower or
such Subsidiary of the Borrower or the ERISA Affiliate to or filed with the PBGC, a Plan participant or the Plan administrator with respect thereto: (i) that a Reportable Event has occurred with respect to any Plan; (ii) the institution of
any steps by the Borrower, any Subsidiary of the Borrower, any ERISA Affiliate, the PBGC or any other Person to terminate any Plan or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the
termination of, or the appointment of a trustee to administer a Plan; (iii) the institution of any steps by the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate to withdraw from any Multiemployer Plan or Multiple Employer Plan,
if such withdrawal could result in withdrawal liability (as described in Part 1 of Subtitle E of Title IV of ERISA or in Section 4063 of ERISA) in excess of $5,000,000; (iv) a Prohibited Transaction in connection with any Plan that could
reasonably be expected to result in a Material Adverse Effect with respect to the Borrower or any Subsidiary of the Borrower; (v) that a Plan has Unfunded Benefit Liabilities exceeding $5,000,000; (vi) the cessation of operations at a
facility of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (vii) the conditions for imposition of a lien under Section 303(k) of ERISA shall have been
met with respect to a Plan; (viii) the adoption of an amendment to a Plan requiring the provision of security to such Plan pursuant to Section 436(f) of the Code; (ix) the insolvency of or commencement of reorganization proceedings
with respect to a Multiemployer Plan; or (x) the taking of any action by the Internal Revenue Service, the Department of Labor or the PBGC with respect to any of the foregoing. 

(g) Environmental Matters. Promptly upon, and in any event within 10 Business Days after, an Authorized Officer of the Borrower or any
of its Subsidiaries obtaining knowledge thereof, notice of one or more of the following environmental matters: (i) any pending or, to the knowledge of any such Authorized Officer, threatened, material Environmental Claim against the Borrower or
any of its Subsidiaries or any Real Property owned or operated by the Borrower or any of its Subsidiaries; (ii) any condition or occurrence on or arising from any Real Property owned or operated by the Borrower or any of its Subsidiaries that
(A) results in material noncompliance by the Borrower or any of its Subsidiaries with any applicable Environmental Law and (B) could reasonably be expected to form the basis of a material Environmental Claim against the Borrower or any of
its Subsidiaries or any such Real Property; and (iii) the taking of any removal or remedial action by the Borrower or any of its Subsidiaries in response to the actual or alleged release of any Hazardous Material on any Real Property owned,
leased or 

  
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operated by the Borrower or any of its Subsidiaries as required by any Environmental Law or any Governmental Authority, excluding any Environmental Claim, condition or occurrence, or removal or
remedial action that is not reasonably expected to exceed $1,000,000. All such notices shall describe in reasonable detail the nature of the Environmental Claim, the Borrower’s or such Subsidiary’s actual or reasonably anticipated response
thereto and, if and to the extent reasonably estimable, a good faith estimate of the actual or reasonably anticipated exposure in dollars of the Borrower and its Subsidiaries with respect thereto. 

(h) SEC Reports and Registration Statements. Promptly after the same become publicly available, copies of all registration statements
(other than the exhibits thereto and any registration statement on Form S-8 or its equivalent) and all annual, quarterly or current reports that the Borrower or any of its Subsidiaries files with the SEC on Form 10-K, 10-Q or 8-K (or any successor
forms). Any statements or reports required to be delivered pursuant to this Section 6.01(h) shall be deemed to have been furnished to the Administrative Agent on the date that (i) such financial statement or report (as applicable) is
posted on the Securities and Exchange Commission’s website at www.sec.gov or the website for the Borrower and (ii) the Administrative Agent has been provided written notice of such posting. 

(i) Annual, Quarterly and Other Reports. Without duplication of Section 6.01(h) above, promptly and in any event within 5 days
after transmission thereof to its stockholders, copies of all annual, quarterly and other reports and all proxy statements that the Borrower furnishes to its stockholders generally. Any statements or reports required to be delivered pursuant to this
Section 6.01(h) shall be deemed to have been furnished to the Administrative Agent on the date that (i) such financial statement or report (as applicable) is posted on the Securities and Exchange Commission’s website at www.sec.gov or
the website for the Borrower and (ii) the Administrative Agent has been provided written notice of such posting. 
 (j)
Auditors’ Internal Control Comment Letters, etc. Within 90 days after the delivery of the annual financial statements provided for in subpart (a) above, a copy of each letter or memorandum commenting on internal accounting controls
and/or accounting or financial reporting policies followed by the Borrower and/or any of its Subsidiaries, which is submitted to the Borrower by its independent accountants in connection with any annual audit made by such independent accountants.

 (k) Other Information. Within 15 days after a request therefor, such other information or documents (financial or otherwise)
relating to the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender (through the Administrative Agent) may reasonably request from time to time; provided that the Borrower shall not be required to deliver
confidential information consisting of trade secrets or other proprietary or competitively sensitive information relating to the Borrower or any of its Subsidiaries and their respective businesses and not constituting financial information. 

Section 6.02 Books, Records and Inspections. The Borrower will, and will cause each of its Subsidiaries to, (i) keep proper
books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Borrower or such Subsidiary, as the case may be, in accordance with GAAP (except as to Foreign
Subsidiaries, until they are required to do so); and (ii) permit, upon at least two Business Days’ notice from the Administrative Agent to the Borrower, officers and designated representatives of the Administrative Agent or any of the
Lenders to visit and inspect any of the properties or assets of the Borrower and its Subsidiaries in whomsoever’s possession (but only to the extent the Borrower or such Subsidiary has the right to do so to the extent in the possession of
another Person), to examine the books of account of the Borrower and any of its Subsidiaries, and make copies thereof and take extracts therefrom, and to discuss the affairs, finances and 

  
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accounts of the Borrower and of its Subsidiaries with, and be advised as to the same by, its and their officers and independent accountants and independent actuaries, if any, all at such
reasonable times and intervals and to such reasonable extent as the Administrative Agent or any of the Lenders (through the Administrative Agent) may request; provided that (i) any such visit or inspection by any Lender shall be
coordinated through the Administrative Agent and shall be subject to the prior approval of the Administrative Agent, (ii) unless an Event of Default shall have occurred and be continuing, such visits and inspections shall be limited to once
during each fiscal year and shall be at the sole cost and expense of the Administrative Agent or the applicable Lenders (except that the Administrative Agent may make one such visit during each fiscal year and the reasonable cost and expense thereof
shall be borne by the Borrower) and (iii) in respect of any such discussions with any independent accountants, the Borrower or such Subsidiary, as the case may be, shall have received reasonable advance notice thereof and a reasonable
opportunity to participate therein and the Administrative Agent shall have executed any non-reliance letter requested by such independent accountants. 

Section 6.03 Insurance. The Borrower will, and will cause each of its Subsidiaries to, (i) maintain insurance coverage by
such insurers and in such forms and amounts and against such risks as are generally consistent with the insurance coverage maintained by the Borrower and its Subsidiaries as of the Closing Date, and (ii) forthwith upon the Administrative
Agent’s written request, furnish to the Administrative Agent such information about such insurance as the Administrative Agent may from time to time reasonably request, which information shall be prepared in form and detail reasonably
satisfactory to the Administrative Agent and certified by an Authorized Officer of the Borrower. 
 Section 6.04 Payment of Taxes
and Claims. The Borrower will pay and discharge, and will cause each of its Subsidiaries to pay and discharge, all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any
properties belonging to it, prior to the date on which penalties attach thereto, and all lawful claims that, if unpaid, might become a Lien or charge upon any properties of the Borrower or any of its Subsidiaries; provided, however, that
neither the Borrower nor any of its Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings if it has maintained adequate reserves with respect thereto in
accordance with GAAP. Without limiting the generality of the foregoing, the Borrower will, and will cause each of its Domestic Subsidiaries to, pay in full all of its wage obligations to its employees in accordance with the Fair Labor Standards Act
(29 U.S.C. Sections 206-207) and any comparable provisions of applicable law, except to the extent that the failure to do so would not have a Material Adverse Effect. 

Section 6.05 Corporate Franchises. The Borrower will do, and will cause each of its Subsidiaries to do, or cause to be done, all
things necessary to preserve and keep in full force and effect its corporate existence, rights and authority except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect; provided, however,
that nothing in this Section shall be deemed to prohibit any transaction permitted by Section 7.02. 
 Section 6.06 Good
Repair. The Borrower will, and will cause each of its Subsidiaries to, ensure that its material properties and equipment used in the ordinary course of its business in whomsoever’s possession they may be, are kept in good repair, working
order and condition, normal wear and tear excepted, and that from time to time there are made in such properties and equipment all needful and proper repairs, renewals, replacements, extensions, additions, betterments and improvements thereto, to
the extent and in the manner customary for companies in similar businesses, except to the extent the failure to make any such repairs, renewals, replacements, extensions, additions, betterments and improvements would not reasonably be expected to
result in a Material Adverse Effect. 

  
 49 

 Section 6.07 Compliance with Statutes, etc. The Borrower will, and will cause each of
its Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of its business and the ownership of its property, other than
those that the noncompliance with which would not reasonably be expected to have a Material Adverse Effect. 
 Section 6.08
Compliance with Environmental Laws. Without limitation of the covenants contained in Section 6.07: 
 (a) The Borrower will, and
will cause each of its Subsidiaries to, comply in all material respects with all Environmental Laws applicable to the ownership, lease or use of all Real Property now or hereafter owned, leased or operated by the Borrower or any of its Subsidiaries,
except to the extent that any failure to comply with Environmental Laws could not reasonably be expected to have a Material Adverse Effect. 

(b) Neither the Borrower nor any of its Subsidiaries will generate, use, treat, store, release or dispose of, or permit the generation, use,
treatment, storage, release or disposal of, Hazardous Materials on any Real Property now or hereafter owned, leased or operated by the Borrower or any of its Subsidiaries or transport or permit the transportation of Hazardous Materials to or from
any such Real Property other than in material compliance with applicable Environmental Laws, in the ordinary course of business and in a manner that could not reasonably be expected to have a Material Adverse Effect. 

(c) To the extent required to do so under any applicable order of any Governmental Authority, the Borrower will undertake, and cause each of
its Subsidiaries to undertake, any clean up, removal, remedial or other action necessary to remove and clean up any Hazardous Materials from any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries in accordance with,
in all material respects, the requirements of all applicable Environmental Laws and in accordance with, in all material respects, such orders of all Governmental Authorities, except for any failure to undertake that could not reasonably be expected
to have a Material Adverse Effect. 
 Section 6.09 Certain Domestic Subsidiaries to Join in Subsidiary Guaranty. In the event
that at any time after the Closing Date, the Borrower acquires, creates or has any Domestic Subsidiary that is not already a party to the Subsidiary Guaranty, the Borrower will promptly, but in any event within 10 Business Days (or such longer
period to which the Administrative Agent may agree in its sole discretion), cause such Domestic Subsidiary to deliver to the Administrative Agent, in sufficient quantities for the Lenders, (a) a Guaranty Supplement (as defined in the Subsidiary
Guaranty), duly executed by such Subsidiary, pursuant to which such Domestic Subsidiary joins in the Subsidiary Guaranty as a guarantor thereunder, and (b) resolutions of the Board of Directors or equivalent governing body of such Domestic
Subsidiary, certified by the Secretary or an Assistant Secretary of such Domestic Subsidiary, as duly adopted and in full force and effect, authorizing the execution and delivery of such joinder supplement and the other Loan Documents to which such
Domestic Subsidiary is, or will be a party, together with such other corporate documentation and an opinion of counsel as the Administrative Agent shall reasonably request, in each case, in form and substance satisfactory to the Administrative
Agent; provided, however, that, notwithstanding the foregoing, (i) a Domestic Subsidiary shall not be required to become a party to the Subsidiary Guaranty so long as (A) such Domestic Subsidiary is a Non-Material Subsidiary,
and (B) the aggregate of the total assets of all such Domestic Subsidiaries that are Non-Material Subsidiaries and that are not Credit Parties shall not exceed 5% of Consolidated Total Assets as determined based upon the financial statements of
the Borrower for the most recently completed fiscal quarter, (ii) Cooper Captive, Inc. shall not be required to become a party to the Subsidiary Guaranty, and (iii) any special purpose entity created or acquired in connection with any
Permitted 

  
 50 

 
Securitization Transaction to purchase receivables and related assets shall not be required to become a party to the Subsidiary Guaranty. 

Section 6.10 Senior Indebtedness. The Obligations shall, and the Borrower shall take all necessary action to ensure that the
Obligations shall, at all times rank at least pari passu in right of payment (to the fullest extent permitted by law) with all other senior Indebtedness of the Borrower and each Subsidiary Guarantor. 

ARTICLE VII. 
 NEGATIVE
COVENANTS 
 The Borrower hereby covenants and agrees that on the Closing Date and thereafter for so long as this Agreement is in effect
and until such time as the Commitments have been terminated, no Notes remain outstanding and the Loans, together with interest, Fees and all other Obligations incurred hereunder and under the other Loan Documents (other than amounts in respect of
indemnification, expense reimbursement, yield protection or tax gross-up and contingent obligations, in each case that are owing and with respect to which not claim has been made), have been paid in full: 

Section 7.01 Changes in Business. Neither the Borrower nor any of its Subsidiaries will engage in any business if, as a result,
the general nature of the business, taken on a consolidated basis, which would then be engaged in by the Borrower and its Subsidiaries, would be substantially changed from the general nature of the business engaged in by the Borrower and its
Subsidiaries on the Closing Date. 
 Section 7.02 Consolidation, Merger, Acquisitions, Asset Sales, etc. The Borrower will not,
nor will permit any Subsidiary to, (i) wind up, liquidate or dissolve its affairs, (ii) enter into any transaction of merger or consolidation, (iii) make or otherwise effect any Acquisition, (iv) make or otherwise effect any
Asset Sale, or (v) agree in writing to do any of the foregoing at any future time, except that, if no Default or Event of Default shall have occurred and be continuing or would result therefrom each of the following shall be permitted:

 (a) the merger, consolidation or amalgamation of (i) any Subsidiary of the Borrower with or into the Borrower, provided the
Borrower is the surviving or continuing or resulting corporation; (ii) any Subsidiary of the Borrower with or into any Subsidiary Guarantor, provided that the surviving or continuing or resulting corporation is a Subsidiary Guarantor; or
(iii) any Foreign Subsidiary of the Borrower with or into any other Foreign Subsidiary of the Borrower; 
 (b) the merger of any
Domestic Subsidiary that is not required to be a Subsidiary Guarantor hereunder into another Domestic Subsidiary that is not required to be a Subsidiary Guarantor; 

(c) the voluntary dissolution or liquidation of any Subsidiary that is an inactive or dormant Non-Material Subsidiary; 

(d) any Asset Sale by (i) the Borrower to any Subsidiary Guarantor, (ii) any Subsidiary of the Borrower to any Credit Party;
(iii) any Domestic Subsidiary that is not required to be a Subsidiary Guarantor to another Domestic Subsidiary that is not required to be a Subsidiary Guarantor, or (iv) any Foreign Subsidiary of the Borrower to any other Foreign
Subsidiary of the Borrower; 
 (e) the Borrower or any Subsidiary may make any Permitted Acquisition, provided that all of the
conditions contained in such definition are satisfied; 

  
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 (f) any Permitted Sale Leaseback Asset Sale; 

(g) the transfer or sale of receivables and related assets in connection with any Permitted Securitization Transaction; and 

(h) in addition to any Asset Sale permitted above, the Borrower or any of its Subsidiaries may consummate any Asset Sale, provided that
(i) in the case of any Asset Sale involving consideration in excess of $50,000,000, at least five Business Days prior to the date of completion of such Asset Sale, the Borrower shall have delivered to the Administrative Agent an officer’s
certificate of an Authorized Officer, which certificate shall contain (A) a description of the proposed transaction, the date such transaction is scheduled to be consummated, the estimated sale price or other consideration for such transaction,
and (B) a certification that no Default or Event of Default has occurred and is continuing, or would result from the consummation of such transaction; and (ii) the aggregate amount of all Asset Sales made pursuant to this subpart during
any fiscal year of the Borrower shall not exceed $100,000,000. 
 Section 7.03 Liens. The Borrower will not, nor will it permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets of any kind of the Borrower or any such Subsidiary whether now owned or hereafter acquired, except that the foregoing
shall not apply to: 
 (a) any Standard Permitted Lien; 

(b) Liens in existence on the Closing Date that are listed in Schedule 7.03 hereto and extensions or renewals of such Liens, so long as
such Liens being extended or renewed do not extend to any other property or assets other than proceeds and replacements and the aggregate principal amount of Indebtedness secured by such Liens is not increased; 

(c) Liens (i) that are placed upon fixed or capital assets, acquired, constructed or improved by the Borrower or any Subsidiary,
provided that (A) such Liens only secure Indebtedness permitted by Section 7.04(c), (B) such Liens and the Indebtedness secured thereby are incurred prior to or within 120 days after such acquisition or the completion of such
construction or improvement, and (C) such Liens shall not apply to any other property or assets of the Borrower or any Subsidiary; or (ii) arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any
such Liens, provided that the principal amount of such Indebtedness is not increased and such Indebtedness is not secured by any additional assets other than proceeds and replacements; 

(d) Liens securing Indebtedness permitted pursuant to Sections 7.04(e) and 7.04(f), provided that (i) such Liens shall not apply
to any other property or assets of the Borrower or any Subsidiary, and (ii) solely with respect to Section 7.04(e), in the case of the Borrower or any Domestic Subsidiary, such Liens are only placed on fixed or capital assets or other
assets that are not current assets; 
 (e) vendor Liens granted in the ordinary course of business in connection with the customary terms
for purchase of materials, supplies and equipment in European countries; 
 (f) [Reserved;] 

(g) any Lien granted to the Administrative Agent or any Lender securing any of the Obligations or any obligations under any Designated Hedge
Agreement; 
 (h) Liens on any property or assets of the Borrower or any of its Subsidiaries securing Indebtedness permitted pursuant to
subpart (ii) of the definition of “Permitted Indebtedness”; 

  
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 (i) Liens (i) on fixed or capital assets and other assets that are not current assets in
connection with Indebtedness assumed pursuant to Section 7.04(c); or (ii) arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any such Liens, provided that, in the case of both (i) and
(ii) above, the principal amount of such Indebtedness is not increased and such Indebtedness is not secured by any additional assets of the Borrower or any of its Subsidiaries other than proceeds and replacements; 

(j) in addition to any Lien permitted pursuant to any of the foregoing subparts, Liens securing obligations not in excess of the aggregate
amount of $30,000,000, not incurred in connection with the borrowing of money; 
 (k) Liens with respect to any accounts and related rights
and assets subject to purchase pursuant to any Permitted Securitization Transaction; and 
 (l) Liens securing Indebtedness under any
capital markets or private placement debt agreement (including any agreements with respect to convertible debt securities) or bilateral or syndicated loan agreement; provided that Liens have been or will be substantially simultaneously
granted to secure the Obligations on an equal and ratable basis pursuant to appropriate security documents, and subject to an intercreditor agreement, in each case, reasonably acceptable to the Administrative Agent and the Company. 

Section 7.04 Indebtedness. The Borrower will not, nor will it permit any of its Subsidiaries to, contract, create, incur, assume
or suffer to exist any Indebtedness of the Borrower or any of its Subsidiaries, except: 
 (a) Indebtedness incurred under this
Agreement and the other Loan Documents; 
 (b) the Indebtedness set forth on Schedule 7.04 hereto, and any refinancing, extension,
renewal or refunding of any such Indebtedness not involving an increase in the principal amount thereof; 
 (c) Indebtedness assumed in
connection with a Permitted Acquisition, provided that (i) such Indebtedness was not incurred in contemplation of such Permitted Acquisition, (ii) no Default or Event of Default shall then exist or at the time such Indebtedness is
assumed by the Borrower will exist, and (iii) the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in Section 7.07 both immediately before and after giving pro forma effect to the
incurrence of such Indebtedness; 
 (d) Indebtedness issued by the Borrower or any Subsidiary to the seller or sellers of an entity being
acquired in connection with a Permitted Acquisition, provided that (i) no Default or Event of Default shall then exist or at the time of incurrence of such Indebtedness will exist, (ii) the Borrower and its Subsidiaries shall be in
compliance with the financial covenants set forth in Section 7.07 both immediately before and after giving pro forma effect to the incurrence of such Indebtedness, and (iii) the aggregate principal amount of all such Indebtedness
outstanding at any time shall not exceed $60,000,000; 
 (e) Indebtedness constituting Permitted Foreign Subsidiary Loans and Investments;

 (f) any intercompany loans and Capital Leases (i) made by the Borrower or any Subsidiary to any Credit Party, (ii) made by any
Foreign Subsidiary to any other Foreign Subsidiary or (iii) made by CooperVision International to the Borrower or any Subsidiary; 

  
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 (g) Indebtedness of the Borrower and its Subsidiaries under or in support of Hedge Agreements,
provided such Hedge Agreements have been entered into in the ordinary course of business and not for speculative purposes; 
 (h)
Indebtedness constituting Guaranty Obligations permitted by Section 7.05; 
 (i) Indebtedness of Foreign Subsidiaries owing to any
Person that is not an Affiliate of the Borrower or any of its Subsidiaries in an aggregate principal amount not to exceed $250,000,000 outstanding at any time; 

(j) other Indebtedness of the Borrower or any Subsidiary to the extent not permitted by any of the foregoing clauses so long as such
Indebtedness constitutes Permitted Indebtedness; and 
 (k) Indebtedness of the Borrower or any Subsidiary under the Existing Credit
Agreement, as amended, restated or otherwise modified from time to time, including any refinancing, extension, renewal, replacement or refunding of any such Indebtedness pursuant to one or more revolving credit facilities and/or term loan
facilities, including any increase in the principal amount thereof, so long as in the case of any such amendment, restatement, modification, refinancing, extension, renewal, replacement or refunding which increases the principal amount of such
Indebtedness, the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in Section 7.07 both immediately before and after giving pro forma effect to the incurrence of such Indebtedness. 

Section 7.05 Investments and Guaranty Obligations. The Borrower will not, nor will permit any of its Subsidiaries to, directly or
indirectly, (i) make or commit to make any Investment or (ii) be or become obligated under any Guaranty Obligations, except: 

(a) Investments by the Borrower or any of its Subsidiaries in cash and Cash Equivalents; 

(b) any endorsement of a check or other medium of payment for deposit or collection, or any similar transaction in the normal course of
business; 
 (c) the creation and holding by the Borrower and its Subsidiaries of receivables and similar items owing to them in the
ordinary course of business and payable or dischargeable in accordance with customary trade terms; 
 (d) any Permitted Creditor Investment;

 (e) loans and advances to employees for business-related travel expenses, moving expenses, costs of replacement homes, business machines
or supplies, automobiles and other similar expenses, in each case incurred in the ordinary course of business, provided the aggregate outstanding amount of all such loans and advances shall not exceed $2,500,000 at any time; 

(f) to the extent not permitted by any of the other subparts in this Section, Investments existing as of the Closing Date and described on
Schedule 7.05 hereto; 
 (g) any Guaranty Obligations of the Borrower or any Subsidiary in favor of the Administrative Agent and the
Lenders in respect of any Designated Hedge Agreement pursuant to the Loan Documents; 
 (h) Investments of the Borrower and its Subsidiaries
in Hedge Agreements permitted to be entered into pursuant to this Agreement; 

  
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 (i) Investments (i) of the Borrower or any of its Subsidiaries in any Subsidiary existing as
of the Closing Date, (ii) of the Borrower in any Credit Party made after the Closing Date, (ii) of any Credit Party in any other Credit Party (other than the Borrower) made after the Closing Date, or (iii) constituting Permitted
Foreign Subsidiary Loans and Investments; 
 (j) Investments of any Foreign Subsidiary in any other Subsidiary of the Borrower; 

(k) intercompany loans and advances permitted by Section 7.04(e); 

(l) the Acquisitions permitted by Section 7.02; 

(m) any Guaranty Obligation incurred by any Credit Party with respect to Indebtedness of another Credit Party, or (ii) by the Borrower of
any Indebtedness of any of its Subsidiaries, in each case which Indebtedness is permitted by Section 7.04; and 
 (n) other Investments
by the Borrower or any Subsidiary of the Borrower in any other Person (other than the Borrower or any of its then existing Subsidiaries) made after the Closing Date and not permitted pursuant to the foregoing subparts, provided that
(i) at the time of making any such Investment no Default or Event of Default shall have occurred and be continuing, or would result therefrom, and (ii) the maximum cumulative amount of all such Investments that are so made pursuant to this
subpart and outstanding at any time shall not exceed an aggregate of (i) $160,000,000 less (ii) the aggregate amount of Investments identified on Section A of Schedule 7.05 hereto taking into account the repayment of any
loans or advances comprising such Investments. 
 Section 7.06 Restricted Payments. The Borrower will not, nor will it permit
any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except: 
 (a)
the Borrower or any of its Subsidiaries may declare and pay or make Capital Distributions that are payable solely in additional shares of its common stock (or warrants, options or other rights to acquire additional shares of its common stock); 

(b)(i) any Subsidiary of the Borrower may declare and pay or make Capital Distributions to any Credit Party, and (ii) any Foreign
Subsidiary of the Borrower may declare and pay or make Capital Distributions to any other Foreign Subsidiary or any Credit Party; 
 (c) the
Borrower may make (i) regularly scheduled payments of interest in respect of any Subordinated Indebtedness and other payments with respect to Subordinated Indebtedness in accordance with the terms of, and subject to any subordination provisions
contained in, any indenture or other agreement pursuant to which such Subordinated Indebtedness was issued, and (ii) redeem, refinance, renew or replace Subordinated Indebtedness pursuant to the terms of clause (iii) of the definition of
“Permitted Indebtedness”; 
 (d) the Borrower may make regularly scheduled payments of interest with respect to any Indebtedness
incurred pursuant to Section 7.04(i) of the type described in subpart (iv) of the definition of “Permitted Indebtedness”; and 

(e) the Borrower may declare and pay or make Capital Distributions, provided that (i) no Default or Event of Default shall have
occurred and be continuing or would result therefrom, (ii) the Borrower will be in compliance with the financial covenants set forth in Section 7.07 after giving pro 

  
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forma effect to each such Capital Distribution, and (iii) the aggregate amount of all Capital Distributions made by the Borrower during any fiscal year shall not exceed $200,000,000.

 Section 7.07 Financial Covenants. 

(a) Total Leverage Ratio. The Borrower will not permit the Total Leverage Ratio as of the last day of any Testing Period of the
Borrower, beginning with the fiscal quarter ending [October 31, 2013], to be greater than 3.75 to 1.00; provided that the Borrower may permit the Total Leverage Ratio as of the last day of any Testing Period (each such Testing Period, a
“Total Leverage Ratio Increase Period”) to be greater than 3.75 to 1.00 but less than or equal to 4.00 to 1.00 if: 

(i) the Borrower has consummated a Permitted Acquisition during the last fiscal quarter of the first such Testing Period during
the Total Leverage Ratio Increase Period and such increase in the Total Leverage Ratio is a direct result of such Permitted Acquisition; 

(ii) the Borrower has requested from the Administrative Agent, in writing, prior to or concurrently with the submission of its
financial statements pursuant to Section 6.01 for the first Testing Period ending after the consummation of such Permitted Acquisition, that a Total Leverage Ratio Increase Period shall have become effective, such request to be accompanied by
the most recent two fiscal years’ audited financial statements of the target company the subject of such Permitted Acquisition and any other financial information reasonably requested by the Administrative Agent and consolidated and
consolidating financial forecasts (inclusive of the target company the subject of such Permitted Acquisition) from the date of acquisition through the Maturity Date; and 

(iii) as of the end of the fourth Testing Period ending after the consummation of the Permitted Acquisition, the
Borrower’s Total Leverage Ratio is less than or equal to 3.75 to 1.00. 
 (b) Interest Coverage Ratio. The Borrower will not
permit the Interest Coverage Ratio as of the last day of any Testing Period of the Borrower, beginning with the fiscal quarter ending [October 31, 2013], to be less than 3.00 to 1.00 

Section 7.08 Limitation on Certain Restrictive Agreements. The Borrower will not, nor will permit any of its Subsidiaries to,
directly or indirectly, enter into, incur or permit to exist or become effective, any consensual “negative pledge” covenant, or other consensual agreement, restriction or arrangement that prohibits, restricts or imposes any condition upon
(a) the ability of the Borrower or any Subsidiary Guarantor to create, incur or suffer to exist any Lien upon any of its property or assets as security for the Obligations, or (b) the ability of any such Subsidiary to make Capital
Distributions or any other interest or participation in its profits owned by the Borrower or any Subsidiary of the Borrower, or pay any Indebtedness owed to the Borrower or a Subsidiary of the Borrower, or to make loans or advances to the Borrower
or any of the Borrower’s other Subsidiaries, or transfer any of its property or assets to the Borrower or any of the Borrower’s other Subsidiaries, except for such restrictions existing under or by reason of (i) applicable law,
(ii) this Agreement and the other Loan Documents, (iii) customary provisions restricting subletting or assignment of any lease governing a leasehold interest, (iv) customary provisions restricting assignment of any licensing agreement
entered into in the ordinary course of business, (v) customary provisions restricting the transfer or further encumbering of assets subject to Liens permitted under Sections 7.03(b), (c), (d), (f), (h), (i) and (k), (vi) customary
restrictions affecting only a Subsidiary of the Borrower under any agreement or instrument governing any of the Indebtedness of a Subsidiary permitted pursuant to Section 7.04, (vii) restrictions affecting any Foreign Subsidiary of the
Borrower under any agreement or instrument governing any Indebtedness of such 

  
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Foreign Subsidiary permitted pursuant to Section 7.04, and customary restrictions contained in “comfort” letters and guarantees of any such Indebtedness, (viii) any document
relating to Indebtedness secured by a Lien permitted by Section 7.03, (ix) any Operating Lease or Capital Lease, insofar as the provisions thereof limit grants of a security interest in, or other assignments of, the related leasehold
interest to any other Person and (x) restrictions imposed by any agreement relating to Indebtedness entered into in accordance with Section 7.04 if an Authorized Officer of the Borrower certifies to the Administrative Agent that such
restrictions are not materially more restrictive taken as a whole than those available to the Borrower or any of its Subsidiaries on market terms, (xi) the Senior Notes Documents and (xii) requirements imposed by any capital markets or
private placement debt agreements (including any agreements with respect to convertible debt securities) and bilateral or syndicated loan agreements that Indebtedness under any such agreement be secured by equal and ratable Liens in the event that
Liens are granted to secure the Obligations. 
 Section 7.09 Transactions with Affiliates. The Borrower will not, nor will it
permit any Subsidiary to, enter into any transaction or series of transactions with any Affiliate (other than, in the case of the Borrower, any Subsidiary, and in the case of a Subsidiary, the Borrower or another Subsidiary) other than in the
ordinary course of business of and pursuant to the reasonable requirements of the Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than would be obtained in a
comparable arm’s-length transaction with a Person other than an Affiliate, except (i) sales of goods to an Affiliate for use or distribution outside the United States that in the good faith judgment of the Borrower comply with any
applicable legal requirements of the Code, or (ii) agreements and transactions with and payments to officers, directors and shareholders that are either (A) entered into in the ordinary course of business and not prohibited by any of the
provisions of this Agreement, or (B) entered into outside the ordinary course of business, approved by the directors or shareholders of the Borrower, and not prohibited by any of the provisions of this Agreement or in violation of any law, rule
or regulation. 
 Section 7.10 Plan Terminations, Minimum Funding, etc. The Borrower will not, nor will it permit any Subsidiary
of the Borrower or ERISA Affiliate to, (i) terminate any Plan or Plans so as to result in liability of the Borrower or any Subsidiary of the Borrower to the PBGC in excess of, in the aggregate, the amount that is equal to 5% of the
Borrower’s Consolidated Net Worth as of the date of the then most recent financial statements furnished to the Lenders pursuant to the provisions of this Agreement, (ii) permit to exist one or more events or conditions that present a
material risk of the termination by the PBGC of any Plan or Plans with respect to which the Borrower or any Subsidiary of the Borrower or ERISA Affiliate would, in the event of such termination, incur liability to the PBGC in excess of, in the
aggregate, the amount that is equal to 5% of the Borrower’s Consolidated Net Worth as of the date of the then most recent financial statements furnished to the Lenders pursuant to the provisions of this Agreement, (iii) fail to comply with
the minimum funding standards of ERISA and the Code with respect to any Plan in a manner that could reasonably be expected to have a Material Adverse Effect, or (iv) fail to satisfy all material contribution obligations in respect of any
Multiemployer Plan or Multiple Employer Plan that could reasonably be expected to have a Material Adverse Effect. 
 Section 7.11
Anti-Terrorism Laws. Neither the Borrower nor any of its Subsidiaries shall be in violation of any law or regulation, or identified in any list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control
list, Executive Order No. 13224 or the USA Patriot Act), that prohibits or limits the conduct of business with or the receiving of funds, goods or services to or for the benefit of certain Persons specified therein or that prohibits or limits
any Lender from making any advance or extension of credit to the Borrower or from otherwise conducting business with the Borrower. 

  
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 Section 7.12 Modifications to Certain Agreements. The Borrower shall not, nor shall
it permit any Subsidiary to, amend, restate, supplement or otherwise modify, in any material respect, or enter into any material consent or waiver with respect to the Senior Notes Documents, in each case without the prior written consent of the
Administrative Agent and the Required Lenders, which consent shall not be unreasonably withheld or delayed. 
 ARTICLE VIII. 

EVENTS OF DEFAULT 

Section 8.01 Events of Default. Any of the following specified events shall constitute an Event of Default (each an “Event
of Default”): 
 (a) Payments: the Borrower shall (i) default in the payment when due (whether at maturity, on a date
fixed for a scheduled repayment, on a date on which a required prepayment is to be made, upon acceleration or otherwise) of any principal of the Loans; or (ii) default, and such default shall continue for five or more Business Days, in the
payment when due of any interest on the Loans, or any Fees or any other Obligations; or 
 (b) Representations, etc.: any
representation, warranty or statement made by the Borrower or any other Credit Party herein or in any other Loan Document or in any statement, agreement, instrument or certificate delivered or required to be delivered pursuant hereto or thereto
shall prove to be untrue in any material respect on the date as of which made or deemed made; or 
 (c) Certain Covenants: the
Borrower shall default in the due performance or observance by it of any term, covenant or agreement contained in Sections 6.01, 6.09, 6.10 or Article VII of this Agreement; or 

(d) Other Covenants: the Borrower shall default in the due performance or observance by it of any term, covenant or agreement contained
in this Agreement or any other Loan Document, other than those referred to in Section 8.01(a) or (b) or (c) above, and such default is not remedied within 30 days after the earlier of (i) an Authorized Officer of any Credit Party
obtaining knowledge of such default or (ii) the Borrower receiving written notice of such default from the Administrative Agent (which notice the Administrative Agent shall give upon the direction of the Required Lenders); or 

(e) Cross Default Under Other Agreements: the Borrower or any of its Subsidiaries shall (i) default in any payment with respect to
any Material Indebtedness (other than the Obligations), and such default shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Material Indebtedness, or (ii) default in the
observance or performance of any agreement or condition relating to any such Material Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto (and all grace periods applicable to such observance, performance
or condition shall have expired), 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 Material Indebtedness (or a trustee or agent on
behalf of such holder or holders) to cause any such Material Indebtedness to become due prior to its stated maturity; or any such Material Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be due and payable, or shall be
required to be prepaid (other than by a regularly scheduled required prepayment or redemption, prior to the stated maturity thereof or by a mandatory prepayment required as a result of the issuance of additional debt or equity); or
(iii) without limitation of the foregoing clauses, default in any payment obligation under a Designated Hedge Agreement, and such default shall continue after the applicable grace period, if any, specified in such Designated Hedge Agreement or
any other agreement or instrument relating thereto; or 

  
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 (f) Invalidity of Loan Documents: (i) any material provision, in the opinion of the
Required Lenders, of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or under such Loan Document or satisfaction in full of all the Obligations (other than amounts in
respect of indemnification, expense reimbursement, yield protection or tax gross-up and contingent obligations, in each case that are owing and with respect to which not claim has been made), ceases to be in full force and effect; (ii) any
Credit Party contests in any manner the validity or enforceability of any provision of any Loan Document to which it is a party and which has not been terminated in accordance with its terms or (iii) any Credit Party denies that it has any or
further liability or obligation under any Loan Document to which it is a party and which has not been terminated in accordance with its terms, or purports to revoke, terminate or (other than in accordance with its terms) rescind any Loan Document;
or 
 (g) Judgments: one or more judgments, orders or decrees shall be entered against the Borrower and/or any of its Subsidiaries
involving a liability (other than a liability covered by insurance, as to which the carrier has adequate claims paying ability and has not effectively reserved its rights) of $50,000,000 or more in the aggregate for all such unvacated, undischarged,
unstayed or unbonded (as set forth below) judgments, orders and decrees for the Borrower and its Subsidiaries, and any such judgments or orders or decrees shall not have been vacated, discharged or stayed or bonded pending appeal within 30 days (or
such longer period, not in excess of 60 days, during which enforcement thereof, and the filing of any judgment lien, is effectively stayed or prohibited) from the entry thereof; provided, however, that with respect to any such judgment
or similar process that is subject to the terms of one or more settlement agreements that provide for the obligations thereunder to be paid or performed over time, such judgment or similar process shall not be determined hereunder to be
undischarged, unvacated, unbonded or unstayed unless and until the Borrower and its Subsidiaries shall have failed to pay any amounts due and owing thereunder (payment of which shall not have been stayed) for a period of 60 days after the respective
final due dates for the payment of such amount; or 
 (h) Insolvency Event: any Insolvency Event shall occur with respect to the
Borrower or any Subsidiary of the Borrower having assets of more than $30,000,000; or 
 (i) ERISA: (i) any of the events
described in clauses (i) through (x) of Section 6.01(f) shall have occurred; and (ii) there shall result from any such event or events the imposition of a Lien or a liability or a material risk of incurring a liability that, in
the case of any such liability or material risk of incurring a liability, the Required Lenders reasonably determine could reasonably be expected to have a Material Adverse Effect; or 

(j) Change of Control: there occurs a Change of Control. 

Section 8.02 Remedies. Upon the occurrence of any Event of Default, and at any time thereafter, if any Event of Default shall then
be continuing, the Administrative Agent shall, upon the written request of the Required Lenders, by written notice to the Borrower, take any or all of the following actions: 

(a) declare the Commitments terminated, whereupon the Commitment of each Lender shall forthwith terminate immediately without any other notice
of any kind; 
 (b) declare the principal of and any accrued interest in respect of all Loans and all other Obligations (other than any
Obligations under any Designated Hedge Agreements) owing hereunder and thereunder to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; or 

  
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 (c) exercise any other right or remedy available under any of the Loan Documents or applicable
law; 
 provided that, if an Event of Default specified in Section 8.01(h) shall occur, the result that would occur upon the giving of written
notice by the Administrative Agent as specified in clauses (a) and/or (b) above shall occur automatically without the giving of any such notice. 

Section 8.03 Application of Certain Payments and Proceeds. All payments and other amounts received by the Administrative Agent or
any Lender through the exercise of remedies hereunder or under the other Loan Documents shall, unless otherwise required by the terms of the other Loan Documents or by applicable law, be applied as follows 

(i) first, to the payment of that portion of the Obligations constituting fees, indemnities and expenses and other
amounts (including attorneys’ fees and amounts due under Article III) payable to the Administrative Agent in its capacity as such; 

(ii) second, to the payment of that portion of the Obligations constituting fees, indemnities and expenses (including
attorneys’ fees and amounts due under Article III) payable to each Lender, ratably among them in proportion to the aggregate of all such amounts; 

(iii) third, to the payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans,
ratably among the Lenders in proportion to the aggregate of all such amounts; 
 (iv) fourth, pro rata to the payment
of (A) that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the aggregate of all such amounts, and (B) the amounts due to Designated Hedge Creditors under Designated Hedge
Agreements subject to confirmation by the Administrative Agent that any calculations of termination or other payment obligations are being made in accordance with normal industry practice; 

(v) fifth, to the payment of all other Obligations of the Credit Parties owing under or in respect of the Loan
Documents that are then due and payable to the Administrative Agent, the Lenders and the Designated Hedge Creditors, ratably based upon the respective aggregate amounts of all such Obligations owing to them on such date; and 

(vi) finally, any remaining surplus after all of the Obligations (other than amounts in respect of indemnification,
expense reimbursement, yield protection or tax gross-up and contingent obligations, in each case that are owing and with respect to which not claim has been made) have been paid in full, to the Borrower or to whomsoever shall be lawfully entitled
thereto. 
 ARTICLE IX. 
 THE
ADMINISTRATIVE AGENT AND OTHER AGENTS 
 Section 9.01 Appointment. Each Lender hereby irrevocably designates and appoints
KeyBank to act as specified herein and in the other Loan Documents, and each such Lender hereby irrevocably authorizes KeyBank as the Administrative Agent for such Lender, to take such action on its behalf under the provisions of this Agreement and
the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to, the Administrative Agent by the terms of this 

  
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Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. The Administrative Agent agrees to act as such upon the express conditions contained
in this Article. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Loan Documents, nor any
fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against the Administrative Agent. Except for Section 9.11,
the provisions of this Article IX are solely for the benefit of the Administrative Agent and the Lenders, and no Credit Party shall have any rights as a third party beneficiary of any of the provisions hereof. In performing its functions and duties
under this Agreement, the Administrative Agent shall act solely as agent of the Lenders and does not assume and shall not be deemed to have assumed any obligation or relationship of agency or trust with or for the Borrower or any of its
Subsidiaries. 
 Section 9.02 Delegation of Duties. The Administrative Agent may execute any of its duties under this Agreement
or any other Loan Document by or through agents, sub-agents or attorneys-in-fact, and shall be entitled to advice of counsel concerning all matters pertaining to such duties. 

Section 9.03 Exculpatory Provisions. Neither the Administrative Agent nor any of its Related Parties shall be (a) liable for
any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except for its or such Related Parties’ own gross negligence or willful misconduct) or
(b) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by the Borrower or any of its Subsidiaries or any of their respective officers contained in this Agreement, any other Loan
Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for any failure of the Borrower or
any Subsidiary of the Borrower or any of their respective officers to perform its obligations hereunder or thereunder. The Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Borrower or any Subsidiary of the Borrower. The Administrative Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any Loan Document or for any representations, warranties, recitals or statements made herein or therein or
made in any written or oral statement or in any financial or other statements, instruments, reports, certificates or any other documents in connection herewith or therewith furnished or made by the Administrative Agent to the Lenders or by or on
behalf of the Borrower or any of its Subsidiaries to the Administrative Agent or any Lender or be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained
herein or therein or as to the use of the proceeds of the Loans or of the existence or possible existence of any Default or Event of Default. 

Section 9.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, e-mail or other electronic transmission, facsimile transmission, telex or teletype message, statement, order or other document or
conversation believed by it, in good faith, to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Borrower or
any of its Subsidiaries), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document
unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by
reason 

  
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of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or all of the Lenders, as applicable, as to any matter that, pursuant to Section 11.12, can only be effectuated with the consent of all Lenders, or all Lenders, as the case may
be), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders. 
 Section 9.05
Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the Administrative Agent has received notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.” In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give prompt
notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders; provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable
in the best interests of the Lenders. 
 Section 9.06 Non-Reliance. Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its Related Parties have made any representations or warranties to it and that no act by the Administrative Agent hereinafter taken, including, without limitation, any review of the affairs of the Borrower or any of
its Subsidiaries, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon the Administrative
Agent, or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and its Subsidiaries and made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon the Administrative Agent, or
any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement, and to make such
investigation as it deems necessary to inform itself as to the business, assets, operations, property, financial and other conditions, prospects and creditworthiness of the Borrower and its Subsidiaries. The Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, assets, property, financial and other conditions, prospects or creditworthiness of the Borrower or any of its Subsidiaries that
may come into the possession of the Administrative Agent or any of its Related Parties other than as specifically required by this Agreement. 

Section 9.07 No Reliance on Administrative Agent’s Customer Identification Program. Each Lender acknowledges and agrees that
neither such Lender, nor any of its Affiliates, participants or assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s, participant’s or assignee’s customer identification program, or other
obligations required or imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”) or
any other Anti-Terrorism Law, including any programs involving any of the following items relating to or in connection with the Credit Parties or their respective Subsidiaries, any of their respective Affiliates or agents, the Loan Documents or
the transactions hereunder: (a) any identity verification procedures, (b) any record keeping, (c) any comparisons with government lists, (d) any customer notices or (e) any other procedures required under the CIP Regulations
or such other laws. 

  
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 Section 9.08 USA Patriot Act. Each Lender or assignee or participant of a Lender that
is not organized under the laws of the United States of America or a state thereof (and is not excepted from the certification requirement contained in Section 313 of the USA Patriot Act and the applicable regulations because it is both
(a) an affiliate of a depository institution or foreign bank that maintains a physical presence in the United States or foreign country, and (b) subject to supervision by a banking authority regulating such affiliated depository
institution or foreign bank) shall deliver to the Administrative Agent the certification, or, if applicable, recertification, certifying that such Lender is not a “shell” and certifying to other matters as required by Section 313 of
the USA Patriot Act and the applicable regulations: (i) within 10 days after the Closing Date, and (ii) at such other times as are required under the USA Patriot Act. 

Section 9.09 Indemnification. The Lenders agree to indemnify the Administrative Agent and its Related Parties, ratably according
to their pro rata share of the aggregate outstanding principal amount of the Loans (determined at the time such indemnification is sought), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, reasonable expenses or disbursements of any kind whatsoever that may at any time (including, without limitation, at any time following the payment of the Obligations) be imposed on, incurred by or asserted against the Administrative
Agent (in its capacity as Administrative Agent) or such Related Parties in any way relating to or arising out of this Agreement or any other Loan Document, or any documents contemplated by or referred to herein or the transactions contemplated
hereby or any action taken or omitted to be taken by the Administrative Agent or such Related Parties under or in connection with any of the foregoing, but only to the extent that any of the foregoing is not paid by the Borrower; provided,
however, that no Lender shall be liable to the Administrative Agent or any of its Related Parties for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements to the extent resulting solely from the Administrative Agent’s or such Related Parties’ gross negligence or willful misconduct. If any indemnity furnished to the Administrative Agent or any such Related Parties for any
purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity
is furnished. The agreements in this Section shall survive the payment of all Obligations. 
 Section 9.10 The Administrative Agent
in its Individual Capacity. The Administrative Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with the Borrower, its Subsidiaries and their respective Affiliates as though not acting
as Administrative Agent hereunder. With respect to the Loans made by it and all Obligations owing to it, the Administrative Agent shall have the same rights and powers under this Agreement as any Lender and may exercise the same as though it were
not the Administrative Agent, and the terms “Lender” and “Lenders” shall include the Administrative Agent in its individual capacity. 

Section 9.11 Successor Administrative Agent. The Administrative Agent may resign at any time upon not less than 30 days notice to
the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank or a trust company or other financial
institution which maintains an office in the United States, or a commercial bank organized under the laws of the United States of America or of any State thereof, or any affiliate of such bank or trust company or other financial institution which is
engaged in the banking business, having a combined capital and surplus of at least $500,000,000. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders, appoint a successor Administrative Agent meeting the requirements set forth in the preceding sentence; provided,
however, that if the Administrative Agent shall notify the Borrower and the Lenders that no such successor is 

  
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willing to accept such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (i) the retiring Administrative Agent shall be discharged from
its duties and obligations hereunder and under the other Loan Documents and (ii) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly,
until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this paragraph. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this paragraph). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 11.02 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent. 

Section 9.12 Other Agents. Except as expressly set forth elsewhere in this Agreement, any Lender identified herein as a
Co-Syndication Agent, Documentation Agent, Co-Lead Arranger or Co-Bookrunner or any other corresponding title, other than “Administrative Agent,” shall have no right, power, obligation, liability, responsibility or duty under this
Agreement or any other Loan Document except those applicable to all Lenders as such. Each Lender acknowledges that it has not relied, and will not rely, on any Lender so identified in deciding to enter into this Agreement or in taking or not taking
any action hereunder. 
 ARTICLE X. 

[Reserved] 
 ARTICLE XI. 

MISCELLANEOUS 

Section 11.01 Payment of Expenses, etc. The Borrower agrees to pay all of the following: (i) whether or not the transactions
contemplated hereby are consummated, all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent in connection with the negotiation, preparation, syndication, administration and execution and delivery of the Loan
Documents and the documents and instruments referred to therein and the syndication of the Commitments (but limited to the reasonable and documented out-of-pocket expenses of a single counsel to the Administrative Agent, the Co-Lead Arrangers and
the Lenders, taken as a whole; (ii) all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with any amendment, waiver or consent relating to any of the Loan Documents; (iii) all reasonable out-of-pocket
costs and expenses of the Administrative Agent, the Co-Lead Arrangers and the Lenders and any of their Affiliates that are owed any Obligations in connection with the enforcement of any of the Loan Documents, including, without limitation, the
reasonable fees and disbursements of any individual counsel to the Administrative Agent and the Co-Lead Arrangers and a single counsel for the Lenders; (iv) any and all present and future stamp and other similar taxes with respect to the
foregoing matters and save the Administrative Agent and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to any such indemnified
Person) to pay such taxes. 

  
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 Section 11.02 Indemnification. The Borrower agrees to indemnify the Administrative
Agent, each Lender and each Agent and their respective Related Parties (collectively, the “Indemnitees”) from and hold each of them harmless against any and all losses, liabilities, claims, damages or expenses reasonably incurred by
any of them as a result of, or arising out of, or in any way related to, or by reason of (i) any investigation, litigation or other proceeding (whether or not any such Indemnitee is a party thereto) related to the entering into and/or
performance of any Loan Document or the use of the proceeds of any Loans hereunder or the consummation of any transactions contemplated in any Loan Document, or (ii) (A) the presence of Hazardous Materials in the air, surface water or
groundwater or on the surface or subsurface of any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries, (B) the release, generation, storage, transportation, handling or disposal of Hazardous Materials at any
location, whether or not owned or operated by the Borrower or any of its Subsidiaries, if the Borrower or any such Subsidiary could have or is alleged to have any responsibility in respect thereof pursuant to Environmental Laws, (C) the
non-compliance by the Borrower or any of its Subsidiaries with Environmental Laws (including applicable permits thereunder), or (D) any Environmental Claim asserted against the Borrower or any of its Subsidiaries, in respect of any Real
Property owned, leased or operated by the Borrower or any of its Subsidiaries, including, in the case of each of (i) and (ii) above, without limitation, the reasonable documented fees and disbursements of counsel incurred in connection
with any such investigation, litigation or other proceeding (but excluding any such losses, liabilities, claims, damages or expenses to the extent incurred by reason of the gross negligence or willful misconduct of the Person to be indemnified or of
any other Indemnitee who is such Person or an Affiliate of such Person). To the extent that the undertaking to indemnify, pay or hold harmless any Person set forth in the preceding sentence may be unenforceable because it is violative of any law or
public policy, the Borrower shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities that is permissible under applicable law. 

Section 11.03 Right of Setoff. In addition to any rights now or hereafter granted under applicable law or otherwise, and not by
way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, each Lender (other than a Defaulting Lender), except to the extent prohibited by law, at any time or from time to time, without presentment,
demand, protest or other notice of any kind to the Borrower or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any
time held or owing by such Lender (including, without limitation, by branches, agencies and Affiliates of such Lender wherever located) to or for the credit or the account of the Borrower against and on account of the Obligations and liabilities of
the Borrower to such Lender under this Agreement or under any of the other Loan Documents, irrespective of whether or not such Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be
contingent or unmatured. Each Lender agrees to promptly notify the Borrower after any such set off and application, provided, however, that the failure to give such notice shall not affect the validity of such set off and application.

 Section 11.04 Equalization. 

(a) Equalization. If at any time any Lender receives any amount hereunder (whether by voluntary payment, by realization upon security,
by the exercise of the right of setoff or banker’s lien, by counterclaim or cross action, by the enforcement of any right under the Loan Documents, or otherwise) that is applicable to the payment of the principal of, or interest on, the Loans
(other than pursuant to Section 2.10(d)), of a sum that with respect to the related sum or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from the

  
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other Lenders an interest in the Obligations to such Lenders in such amount as shall result in a proportional participation by all of the Lenders in such amount. 

(b) Recovery of Amounts. If any amount paid to any Lender pursuant to subpart (a) above is recovered in whole or in part from such
Lender, such original purchase shall be rescinded, and the purchase price restored ratably to the extent of the recovery. 
 (c) Consent
of Borrower. The 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 the Borrower
rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 

Section 11.05 Notices. 

(a) Generally. Except in the case of notices and other communications expressly permitted hereunder to be given by telephone (and
except as provided in subpart (c) 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 the Borrower, to at 6140 Stoneridge Mall Road, Suite 590, Pleasanton, California 94588, Attention:
Brian Andrews, Treasurer (Telecopier No. (925) 460-3648); 
 (ii) if to any other Credit Party, to it c/o the Borrower,
6140 Stoneridge Mall Road, Suite 590, Pleasanton, California 94588, Attention: Brian Andrews, Treasurer (Telecopier No. (925) 460-3648); 

(iii) if to the Administrative Agent, to it at the Notice Office; and 

(iv) if to a Lender, to it at its address (or telecopier number) set forth next to its name on the signature pages hereto or,
in the case of any Lender that becomes a party to this Agreement by way of assignment under Section 11.06 of this Agreement, to it at the address set forth in the Assignment Agreement to which it is a party; 

(b) Receipt of Notices. Notices and communications 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 and receipt has been confirmed by telephone. Notices delivered through electronic communications to the extent provided
in subpart (c) below, shall be effective as provided in such subpart (c). 
 (c) Electronic Communications. 

(i) Notices and other communications to the Administrative Agent or any Lender hereunder and required to be delivered pursuant
to Sections 6.01(a), (b), (c), (d), (h), (i), (j) or (k) may be delivered or furnished by electronic communication (including e-mail and Internet or intranet web sites) pursuant to procedures approved by the Administrative Agent. The
Administrative Agent or the Borrower may, in their discretion, agree in a separate writing to accept notices and other communications to them 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 the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed

  
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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 recipient, and (ii) notices or communications posted to an Internet or intranet web site 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 web site address therefor. 

(ii) The Borrower agrees that the Administrative may make any information delivered by the Borrower to the Administrative Agent
pursuant to Section 6.01 available to the Lenders by posting such notices on a secured website (such as Intralinks) or another secured electronic medium acceptable to the Borrower. The Borrower acknowledges that (A) the distribution of
material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (B) such secured website and other electronic medium are provided “as is” and
“as available” and (C) neither the Administrative Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of any such secured website or other electronic medium and each expressly disclaims liability for errors
or omissions in any material or other information distributed via any such secured website or other electronic medium. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness
for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Administrative Agent or any of its Affiliates in connection with any such secured website or other electronic medium. 

(iii) Each Lender agrees that notice to such Lender (as provided in the next sentence) specifying that any information provided
by the Borrower to the Administrative Agent pursuant to Section 6.01 has been posted on any secured website or other electronic medium in accordance with Section 11.05(c)(ii) above shall constitute effective delivery of such information to
such Lender for purposes of this Agreement; provided that if requested by any Lender the Administrative Agent shall deliver a copy of such information to such Lender by email or telecopier. Each Lender agrees (A) to notify the
Administrative Agent in writing of such Lender’s e-mail address to which such notice may be sent by electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and from
time to time thereafter to ensure that the Administrative Agent has on record an effective e-mail address for such Lender) and (B) that any notice may be sent to such e-mail address. 

(d) Change of Address, Etc. Any party hereto may change its address or telecopier number for notices and other communications hereunder
by notice to each of the other parties hereto in accordance with Section 11.05(a). 
 Section 11.06 Successors and Assigns.

 (a) Successors and Assigns Generally. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns; provided, however, that the Borrower may not assign or transfer any of its rights or obligations hereunder without the prior written consent of all the Lenders, provided,
further, that any assignment or participation by a Lender of any of its rights and obligations hereunder shall be effected in accordance with this Section 11.06. 

  
 67 

 (b) Participations. Each Lender may at any time without prior notice or consent grant
participations in any of its rights hereunder or under any of the Notes to any Person (other than an individual), provided that in the case of any such participation, 

(i) the participant shall not have any rights under this Agreement or any of the other Loan Documents, including rights of
consent, approval or waiver (the participant’s rights against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the participant relating thereto), 

(ii) such Lender’s obligations under this Agreement (including, without limitation, its Commitments hereunder) shall
remain unchanged, 
 (iii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations, 
 (iv) such Lender shall remain the holder of the Obligations owing to it and of any Note issued to it for
all purposes of this Agreement, 
 (v) the Borrower, the Administrative Agent, and the other Lenders shall continue to deal
solely and directly with the selling Lender in connection with such Lender’s rights and obligations under this Agreement, and all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation,
except only that the participant shall be entitled to the benefits of Article III, and only to the extent that such Lender would be entitled to such benefits in the same amount and to the same degree if the participation had not been entered into or
sold; provided, that in the case of Section 3.03, that the participant shall have complied with Section 3.03(b) as if it were a Lender, and 

(vi) each Lender that sells a participating interest in any of its rights hereunder or under any of the Notes shall, as agent
of the Borrower solely for the purpose of this Section 11.06(b), record in book entries maintained by such Lender the name of each participant and the amount of the participating interest of the participant; provided, however, that the Lender
shall have no obligation to show such book entries to any Credit Party. 
 and, provided further, that no Lender shall transfer, grant or sell
any participation under which the participant shall have rights to approve any amendment to or waiver of this Agreement or any other Loan Document except to the extent such amendment or waiver would (x) extend the final scheduled maturity or
the date of any Scheduled Repayment of any of the Loans in which such participant is participating, or reduce the rate or extend the time of payment of interest or Fees thereon (except in connection with a waiver of the applicability of any
post-default increase in interest rates), or reduce the principal amount thereof, or increase such participant’s participating interest in any Commitment over the amount thereof then in effect (it being understood that a waiver of any Default
or Event of Default shall not constitute a change in the terms of any such Commitment), (y) release any Subsidiary Guarantor from its guaranty of any of the Obligations, except strictly in accordance with the terms of the Loan Documents, or
(z) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement. 
 (c)
Assignments by Lenders. 
 (i) Any Lender may assign all, or if less than all, any portion of its Loans and/or
Commitments and its rights and obligations hereunder to one or more Eligible Assignees, each of which shall become a party to this Agreement as a Lender by execution of an Assignment Agreement; provided, however, that 

  
 68 

 (A) except in the case (x) of an assignment of the entire remaining amount
of the assigning Lender’s Loans and/or Commitments or (y) an assignment to another Lender, an Affiliate of such Lender or an Approved Fund of any Lender, the aggregate amount of the Commitment so assigned (which for this purpose includes
the Loans outstanding thereunder) shall not be less than $5,000,000; 
 (B) in the case of any assignment to an Eligible
Assignee at the effective time of any such assignment, as determined by the Administrative Agent in accordance with subsection (iv) below, the Lender Register shall be deemed modified to reflect the Commitments of such new Lender and of the
existing Lenders; 
 (C) upon surrender of the old Notes, if any, upon request of the new Lender, new Notes will be issued,
at the Borrower’s expense, to such new Lender and to the assigning Lender, to the extent needed to reflect the revised Commitments; and 

(D) unless waived by the Administrative Agent, the Administrative Agent shall receive at the time of each such assignment, from
the assigning or assignee Lender, the payment of a non-refundable assignment fee of $3,500 (treating multiple contemporaneous assignments to or from Approved Funds of a single Lender as one assignment for purposes of such requirement). 

(ii) To the extent of any assignment pursuant to this subpart (c), the assigning Lender shall be relieved of its obligations
hereunder with respect to its assigned Commitments. 
 (iii) At the time of each assignment pursuant to this subpart
(c) to a Person that is not already a Lender hereunder, the respective assignee Lender shall provide to the Borrower and the Administrative Agent the applicable Internal Revenue Service Forms (and any necessary additional documentation)
described in Section 3.03(b). 
 (iv) With respect to any Lender, the transfer of any Commitment of such Lender and the
rights to the principal of, and interest on, any Loan made pursuant to such Commitment (whether or not evidenced by a Note) shall not be effective until such transfer is recorded on the Lender Register maintained by the Administrative Agent with
respect to ownership of such Commitment and Loans and prior to such recordation all amounts owing to the transferor with respect to such Commitment and Loans shall remain owing to the transferor. The registration of assignment or transfer of all or
part of any Commitments and Loans shall be recorded by the Administrative Agent on the Lender Register only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment Agreement pursuant to this subpart (c). 

(v) Nothing in this Section shall prevent or prohibit (A) any Lender that is a bank, trust company or other financial
institution from pledging its Notes or Loans to a Federal Reserve Bank in support of borrowings made by such Lender from such Federal Reserve Bank, or (B) any Lender that is a trust, limited liability company, partnership, fund or other
investment company from pledging its Notes or Loans to a trustee or agent for the benefit of holders of certificates or debt securities issued by it. No such pledge, or any assignment pursuant to or in lieu of an enforcement of such a pledge, shall
relieve the transferor Lender from its obligations hereunder. 
 (d) No SEC Registration or Blue Sky Compliance. Notwithstanding any
other provisions of this Section, no transfer or assignment of the interests or obligations of any Lender hereunder or any grant of participation therein shall be permitted if such transfer, assignment or grant would require the

  
 69 

 
Borrower to file a registration statement with the SEC or to qualify the Loans under the “Blue Sky” laws of any State. 

(e) Representations of Lenders. Each Lender initially party to this Agreement hereby represents, and each Person that becomes a Lender
pursuant to an assignment permitted by this Section will, upon its becoming party to this Agreement, represents that it is a commercial lender, other financial institution or other “accredited” investor (as defined in SEC
Regulation D) that makes or acquires loans in the ordinary course of its business and that it will make or acquire Loans for its own account in the ordinary course of such business; provided, however, that subject to the preceding
Sections 11.06(b) and (c), the disposition of any promissory notes or other evidences of or interests in Indebtedness held by such Lender shall at all times be within its exclusive control. 

Section 11.07 No Waiver; Remedies Cumulative. No failure or delay on the part of the Administrative Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Loan Document and no course of dealing between the Borrower and the Administrative Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise
of any right, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder. No notice to or demand on the Borrower in any
case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent or the Lenders to any other or further action in any circumstances without
notice or demand. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender may have had notice or
knowledge of such Default or Event of Default at the time. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies that the Administrative Agent or any Lender would otherwise have. 

Section 11.08 Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. 

(a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER HEREBY
UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK GOVERNS THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. Any legal action or proceeding with respect to this Agreement or
any other Loan Document may be brought in the Supreme Court of the State of New York sitting in New York County or in the United States District Court of the Southern District of New York, and, by execution and delivery of this Agreement, the
Borrower hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. The Borrower hereby further irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to the Borrower at its address for notices pursuant to Section 11.05, such service to become effective 30
days after such mailing or at such earlier time as may be provided under applicable law. Nothing herein shall affect the right of the Administrative Agent or any Lender to serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Borrower in any other jurisdiction. 

  
 70 

 (b) The Borrower hereby irrevocably waives any objection that it may now or hereafter have to the
laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Agreement or any other Loan Document brought in the courts referred to in Section 11.08(a) above and hereby further irrevocably waives and
agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. 

(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH. 

Section 11.09 Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same agreement. A set of counterparts executed by all the parties hereto shall be lodged with the
Borrower and the Administrative Agent. 
 Section 11.10 Integration. This Agreement and the other Loan Documents constitute the
entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof or thereof; provided, however,
that, notwithstanding the foregoing, any term or provision set forth in that certain Commitment Letter, dated as of August 29, 2013, among, inter alia, the Borrower and KeyBank and the Administrative Agent Fee Letter, that, pursuant to
the express terms of any such letter, survives beyond the Closing Date, shall continue to remain in effect in accordance with the terms of such letters. 

Section 11.11 Headings Descriptive. The headings of the several Sections and other portions of this Agreement are inserted for
convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement. 
 Section 11.12
Amendment or Waiver. 
 (a) Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be amended,
changed, waived or otherwise modified unless such amendment, change, waiver or other modification is in writing and signed by the Borrower, the Administrative Agent and the Required Lenders or by the Administrative Agent acting at the written
direction of the Required Lenders; provided, however, that 
 (i) no change, waiver or other modification shall 

(A) increase the amount of any Commitment of any Lender hereunder, without the written consent of such Lender; 

  
 71 

 (B) extend or postpone the Maturity Date or extend or postpone any scheduled
expiration or termination date provided for herein that is applicable to a Commitment of any Lender, without the written consent of such Lender; 

(C) reduce the principal amount of any Loan made by any Lender, or reduce the rate or extend the time of payment of, or excuse
the payment of, interest thereon (other than as a result of (x) waiving the applicability of any post-default increase in interest rates or (y) any amendment to defined terms used in financial covenants), without the written consent of
such Lender; 
 (D) reduce the rate or extend the time of payment of, or excuse the payment of, any Fees to which any Lender
is entitled hereunder, without the written consent of such Lender; or 
 (E) amend, modify or waive (which shall include the
waiver of any existing Default or Event of Default) any condition precedent to any extension of credit under the Credit Facility set forth in Section 4.2 without the written consent of the Required Lenders; 

(ii) no change, waiver or other modification or termination shall, without the written consent of each Lender directly affected
thereby, 
 (A) release the Borrower from any of its obligations hereunder or any Loan Document; 

(B) release any Credit Party from the Subsidiary Guaranty, except, in the case of a Subsidiary Guarantor, in accordance
with Section 22(b) of the Subsidiary Guaranty or a transaction permitted under this Agreement; 
 (C) amend, modify or
waive any provision of this Section 11.12, Section 2.11(c) or (e), Section 8.03, or any other provision of any of the Loan Documents pursuant to which the consent or approval of all Lenders, or a number or specified percentage or
other required grouping of Lenders or Lenders having Commitments, is by the terms of such provision explicitly required; 

(D) reduce the percentage specified in, or otherwise modify, the definition of Required Lenders; or 

(E) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement. 

(iii)(x) no change, waiver or other modification or termination shall increase or extend the Commitment or Loan of any
Defaulting Lender, nor may the principal of any Loan of a Defaulting Lender be reduced, in each case without the consent of such Lender and (y) in the case of any waiver, amendment or modification requiring the consent of all Lenders or each
affected Lender that by its terms, affects any Defaulting Lender more adversely than other affected Lenders, such wavier, amendment or modification shall require the consent of each such Defaulting Lender; or 

(iv) the Administrative Agent, without the direction or separate authorization of the Required Lenders, may approve any change,
waiver or other modification that is of a routine, 

  
 72 

 
administrative, ministerial or non-controversial nature, as reasonably determined by the Administrative Agent, and any such change, waiver or modification approved by the Administrative Agent
shall be binding on the Lenders. 
 Any waiver or consent with respect to this Agreement given or made in accordance with this Section shall be effective
only in the specific instance and for the specific purpose for which it was given or made. 
 (b) No provision of Article IX may be amended
without the consent of the Administrative Agent. 
 Section 11.13 Survival of Indemnities. All indemnities set forth herein
including, without limitation, in Article III (subject to the limitations set forth Section 3.01(c)), Section 9.09 or Section 11.02 shall survive the execution and delivery of this Agreement and the making and repayment of the
Obligations and any assignment made pursuant to Section 11.06(c). 
 Section 11.14 Domicile of Loans. Each Lender may fund,
transfer and carry its Loans out of, at, to or for the account of any branch office, subsidiary or affiliate of such Lender; provided, however, that the Borrower shall not be responsible for costs arising under Section 3.01 resulting
from any such transfer (other than a transfer pursuant to Section 3.04) to the extent not otherwise applicable to such Lender with respect to its Loans prior to such transfer. 

Section 11.15 Confidentiality. 

(a) Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of all Confidential Information, except
that Confidential Information may be disclosed (i) to its and its Affiliates’ directors, officers, trustees, employees and agents, including accountants, legal counsel and other advisors in connection with the performance of their duties
relating to the Credit Parties and the Loan Documents (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Confidential Information and instructed to keep such Confidential
Information confidential), (ii) to any direct contractual counterparty in any Hedge Agreement (or to any such contractual counterparty’s professional advisor, so long as such contractual counterparty (or such professional advisor) agrees
to be bound by the provisions of this Section 11.15, (iii) to the extent requested by any regulatory authority, (iv) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (v) to any
other party to this Agreement, (vi) in connection with the exercise of any remedies hereunder or under any of the other Loan Documents, or any suit, action or proceeding relating to this Agreement or any of the other Loan Documents or the
enforcement of rights hereunder or thereunder, (vii) subject to an agreement containing provisions substantially the same as those of this Section 11.15, to any assignee of or participant in, or any prospective assignee of or participant
in, any of its rights or obligations under this Agreement, or (viii) with the consent of the Borrower. 
 (b) As used in this Section,
“Confidential Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential
basis prior to disclosure by the Borrower. 
 (c) Any Person required to maintain the confidentiality of Confidential Information as
provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Confidential Information as would be exercised by a prudent
person, acting reasonably and responsibly. The Borrower hereby agrees that the failure of the Administrative Agent or any Lender to comply with the provisions of this Section 

  
 73 

 
shall not relieve the Borrower, or any other Credit Party, of any of their obligations under this Agreement or any of the other Loan Documents. 

Section 11.16 General Limitation of Liability. No claim may be made by any Credit Party, any Lender, the Administrative Agent or
any other Person against the Administrative Agent or any other Lender or the Affiliates, directors, officers, employees, attorneys or agents of any of them for any damages other than actual compensatory damages in respect of any claim for breach of
contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any of the other Loan Documents, or any act, omission or event occurring in connection therewith; and the Borrower hereby, to
the fullest extent permitted under applicable law, waives, releases and agrees not to sue or counterclaim upon any such claim for any special, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist
in its favor. 
 Section 11.17 Lenders and Agent Not Fiduciary to Borrower, etc. The relationship among the Borrower and its
Subsidiaries, on the one hand, and the Administrative Agent and the Lenders, on the other hand, is solely that of debtor and creditor, and the Administrative Agent and the Lenders have no fiduciary or other special relationship with the Borrower and
its Subsidiaries, and no term or provision of any Loan Document, no course of dealing, no written or oral communication, or other action, shall be construed so as to deem such relationship to be other than that of debtor and creditor. 

Section 11.18 Survival of Representations and Warranties. All representations and warranties herein shall survive the making of
Loans hereunder, the execution and delivery of this Agreement, the Notes and the other documents the forms of which are attached as Exhibits hereto, the issue and delivery of the Notes, any disposition thereof by any holder thereof, and any
investigation made by the Administrative Agent or any Lender or any other holder of any of the Notes or on its behalf. 
 Section 11.19
Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting
the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

Section 11.20 Independence of Covenants. All covenants hereunder shall be given independent effect so that if a particular action,
event, condition or circumstance is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations or restrictions of, another covenant, shall not avoid the occurrence of
a Default or an Event of Default if such action is taken or event, condition or circumstance exists. 
 Section 11.21 Interest Rate
Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts that are treated as interest on such Loan under applicable law (collectively,
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate
of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such
Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until
such cumulated amount, together with interest thereon at the Base Rate to the date of repayment, shall have been received by such Lender. 

  
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 Section 11.22 USA Patriot Act. Each Lender subject to the USA Patriot Act hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance with the USA Patriot Act. 
 [Remainder of page intentionally
left blank.] 

  
 75 

 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to be
duly executed and delivered as of the date first above written. 
  

			
	THE COOPER COMPANIES, INC.,
 as the Borrower

		
	By:	 	 /s/ Greg W. Matz

	Name:	 	 Greg W. Matz

	Title:	 	 Vice President & Chief Financial Officer

									
	 Address:
	  	 4900 Tiedeman Road
 Brooklyn, OH 44144

Attention: Kathy Koenig
 Fax: (216) 370-6113
	 	KEYBANK NATIONAL ASSOCIATION,
     as the Administrative Agent, a Co-Lead Arranger

    and a Co-Bookrunner
	 	

							
				
		  		 	By:	 	 /s/ Marianne T. Meil

		  		 	Name:   Marianne T. Meil
 Title:     Senior Vice President

 [Signature pages of other Lenders follow.] 

 Signature Page to the Credit Agreement, 

dated as of September 12, 2013, among The 

Cooper Companies, Inc., as the Borrower, 

KeyBank National Association, as the 

Administrative Agent, 
 and
the Lenders party thereto 
  

									
	Address:	  	 530 Lytton Avenue
 Suite 101

Palo Alto, CA
 94301
	 		 	Bank of America, N.A.
		  	Attention: James P. Harbeson	 		 	By:	  	/s/ James P. Harbeson
		  		 		 	Name:	  	James P. Harbeson
		  		 		 	Title:	  	Vice President

  

									
	Address:	  	 200 Park Avenue, 31st Floor

New York, NY 10166
 Attention: Kristie Li
	 		 	 DNB BANK ASA, NEW YORK BRANCH
 as
Co-Lead Arranger, Co-Bookrunner and Co- Syndication Agent

					
		  		 		 	By:	  	/s/ Kristie Li
		  		 		 	Name:	  	Kristie Li
		  		 		 	Title:	  	First Vice President
					
		  		 		 	By:	  	/s/ Bjorn E. Hammerstad
		  		 		 	Name:	  	Bjorn E. Hammerstad
		  		 		 	Title:	  	Senior Vice President
				
		  		 		 	 DNB Capital LLC
 As
Lender

					
		  		 		 	By:	  	  
 /s/ Kristie Li

		  		 		 	Name:	  	Kristie Li
		  		 		 	Title:	  	First Vice President
					
		  		 		 	By:	  	/s/ Bjorn E. Hammerstad
		  		 		 	Name:	  	Bjorn E. Hammerstad
		  		 		 	Title:	  	Senior Vice President
				
	Address:	  	 200 Pringle Avenue
 Suite 500

Walnut Creek, CA 94596
	 		 	Union Bank, N.A.
		  	Attention: Buddy Montgomery	 		 	By:	  	/s/ Henry G. Montgomery
		  		 		 	Name:	  	Henry G. Montgomery
		  		 		 	Title:	  	Vice President

  

									
	Address:	  	 601 Montgomery Street, 15th Floor

San Francisco, CA 94111
	 		 	 HSBC Bank USA, N.A.
 601 Montgomery
Street
 San Francisco, CA 94111

					
		  		 		 	By:	  	/s/ Mario De Lecce
		  		 		 	Name:	  	Mario De Lecce
		  		 		 	Title:	  	Vice President
				
	Address:	  	 Jones Day
 901 Lakeside Avenue

Cleveland, Ohio 44114
	 		 	Citibank, N.A.
		  	Attention: Caitlin Kozan	 		 	By:	  	/s/ Anthony Pantina
		  		 		 	Name:	  	Anthony Pantina
		  		 		 	Title:	  	Vice President
				
	Address:	  	 2527 Camino Ramon
 San Ramon, CA 94583

Attention: Joel Harvill
	 		 	 Bank of the West

		  		 		 	By:	  	/s/ Joel Harvill
		  		 		 	Name:	  	Joel Harvill
		  		 		 	Title:	  	Vice President
				
	Address:	  	 U.S. Bank Healthcare Division
 333 Commerce
Street
 Suite 900
 Nashville, TN 37201
	 		 	U.S. Bank, National Association
		  	Attention: David Mruk	 		 	By:	  	/s/ Joseph M. Schnorr
		  		 		 	Name:	  	Joseph M. Schnorr
		  		 		 	Title:	  	Senior Vice President
				
	Address:	  	 Goldman Sachs Bank USA
 200 West Street

New York, NY 10282
	 		 	Goldman Sachs Bank USA
		  	Attention: Mark Walton	 		 	By:	  	/s/ Mark Walton
		  		 		 	Name:	  	Mark Walton
		  		 		 	Title:	  	Authorized Signatory

  

 Schedule 1 

Lenders and Commitments 
  

									
	 Lender
	  	Commitment	 	  	Facility Percentage	 
	 KeyBank National Association
	  	$	55,000,000	  	  	 	18 1/3	% 
	 Bank of America, N.A.
	  	$	55,000,000	  	  	 	18 1/3	% 
	 DNB Capital LLC
	  	$	55,000,000	  	  	 	18 1/3	% 
	 Union Bank, N.A.
	  	$	45,000,000	  	  	 	15	% 
	 HSBC Bank USA, N.A.
	  	$	45,000,000	  	  	 	15	% 
	 Citibank N.A.
	  	$	20,000,000	  	  	 	6 2/3	% 
	 Bank of the West
	  	$	10,000,000	  	  	 	3 1/3	% 
	 U.S. Bank National Association
	  	$	10,000,000	  	  	 	3 1/3	% 
	 Goldman Sachs Bank USA
	  	$	5,000,000	  	  	 	1 2/3	% 
		  	  
	  
	 	  	  
	  
	 
	 Total:
	  	$	300,000,000.00	  	  	 	100	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]