Document:

EX-4.46

 Exhibit 4.46 

EXECUTION VERSION 
 CREDIT
AGREEMENT 
 by and among 

CRYSTAL FINANCIAL LLC, 

as Agent, 
 THE LENDERS
THAT ARE PARTIES HERETO 
 as the Lenders, 

and 
 BIRKS GROUP INC.,

 as Borrower 

Dated as of June 29, 2018 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
			
	 1.
	 	DEFINITIONS AND CONSTRUCTION	  	 	1	 
				
		 	1.1.	 	Definitions	  	 	1	 
		 	1.2.	 	Accounting Terms	  	 	1	 
		 	1.3.	 	PPSA	  	 	1	 
		 	1.4.	 	Construction	  	 	2	 
		 	1.5.	 	Time References	  	 	3	 
		 	1.6.	 	Schedules and Exhibits	  	 	3	 
		 	1.7.	 	Exchange Rates; Currency Equivalents	  	 	3	 
		 	1.8.	 	Quebec Interpretation	  	 	3	 
			
	 2.
	 	TERM LOAN AND TERMS OF PAYMENT	  	 	4	 
				
		 	2.1.	 	Term Loan Facility	  	 	4	 
		 	2.2.	 	Borrowing Base	  	 	4	 
		 	2.3.	 	Payments; Apportionment and Application; Use of Proceeds; Repayments; Prepayments	  	 	8	 
		 	2.4.	 	Interest Rates; Payment of Interest	  	 	11	 
		 	2.5.	 	Fees and Expenses	  	 	12	 
		 	2.6.	 	Reimbursement Obligations	  	 	13	 
		 	2.7.	 	Capital Adequacy; Increased Costs	  	 	14	 
		 	2.8.	 	Currencies	  	 	15	 
		 	2.9.	 	Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of Interest	  	 	16	 
		 	2.10.	 	Tax Treatment	  	 	17	 
			
	 3.
	 	CONDITIONS; TERM OF AGREEMENT	  	 	17	 
				
		 	3.1.	 	Conditions Precedent to Effectiveness of Agreement	  	 	17	 
		 	3.2.	 	[Reserved]	  	 	20	 
		 	3.3.	 	Maturity	  	 	20	 
		 	3.4.	 	Effect of Maturity	  	 	20	 
		 	3.5.	 	Post-Closing Covenants	  	 	21	 
			
	 4.
	 	REPRESENTATIONS AND WARRANTIES	  	 	21	 
				
		 	4.1.	 	Due Organization and Qualification; Subsidiaries	  	 	21	 
		 	4.2.	 	Due Authorization; No Conflict	  	 	22	 
		 	4.3.	 	Governmental Consents	  	 	22	 
		 	4.4.	 	Binding Obligations; Perfected Liens	  	 	22	 
		 	4.5.	 	Title to Assets; No Encumbrances	  	 	23	 
		 	4.6.	 	Litigation	  	 	23	 
		 	4.7.	 	Compliance with Laws	  	 	23	 
		 	4.8.	 	Financial Statements; No Material Adverse Effect	  	 	24	 
		 	4.9.	 	Solvency	  	 	24	 
		 	4.10.	 	Canadian Pension Plan	  	 	24	 
		 	4.11.	 	Environmental Condition	  	 	24	 
		 	4.12.	 	Complete Disclosure	  	 	24	 

  
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 TABLE OF CONTENTS 

(cont’d) 
  

									
	 	 	 	 	 	  	Page	 
				
		 	4.13.	 	  
 Patriot Act; Canadian AML and Anti-Terrorism Laws
	  	 	25	 
		 	4.14.	 	Indebtedness	  	 	25	 
		 	4.15.	 	Payment of Taxes	  	 	25	 
		 	4.16.	 	Margin Stock	  	 	26	 
		 	4.17.	 	Governmental Regulation	  	 	26	 
		 	4.18.	 	OFAC	  	 	26	 
		 	4.19.	 	Employee and Labor Matters	  	 	26	 
		 	4.20.	 	Intellectual Property	  	 	27	 
		 	4.21.	 	Eligible Accounts	  	 	27	 
		 	4.22.	 	Eligible Inventory	  	 	27	 
		 	4.23.	 	Location of Inventory and Equipment	  	 	27	 
		 	4.24.	 	Inventory Records	  	 	27	 
		 	4.25.	 	Credit Card Arrangements	  	 	28	 
		 	4.26.	 	No Defaults; Material Contracts	  	 	28	 
		 	4.27.	 	Operations of Certain Subsidiaries	  	 	28	 
		 	4.28.	 	Trade Relations	  	 	28	 
			
	 5.
	 	AFFIRMATIVE COVENANTS	  	 	28	 
				
		 	5.1.	 	Financial Statements, Reports, Certificates	  	 	28	 
		 	5.2.	 	Reporting	  	 	29	 
		 	5.3.	 	Existence	  	 	29	 
		 	5.4.	 	Maintenance of Properties	  	 	29	 
		 	5.5.	 	Taxes	  	 	29	 
		 	5.6.	 	Insurance	  	 	29	 
		 	5.7.	 	[Reserved]	  	 	30	 
		 	5.8.	 	[Reserved]	  	 	30	 
		 	5.9.	 	[Reserved]	  	 	30	 
		 	5.10.	 	Inspection	  	 	30	 
		 	5.11.	 	Compliance with Laws and Material Contracts	  	 	30	 
		 	5.12.	 	Environmental	  	 	30	 
		 	5.13.	 	Disclosure Updates	  	 	31	 
		 	5.14.	 	Formation of Subsidiaries	  	 	31	 
		 	5.15.	 	Further Assurances	  	 	32	 
		 	5.16.	 	Location of Inventory; Chief Executive Office, Etc.	  	 	33	 
		 	5.17.	 	Canadian Compliance	  	 	33	 
		 	5.18.	 	Credit Card Notifications	  	 	33	 
		 	5.19.	 	Sales Taxes	  	 	34	 
		 	5.20.	 	[Reserved]	  	 	34	 
		 	5.21.	 	Lenders’ Meetings	  	 	34	 
			
	 6.
	 	NEGATIVE COVENANTS	  	 	34	 
				
		 	6.1.	 	Indebtedness	  	 	34	 
		 	6.2.	 	Liens	  	 	34	 
		 	6.3.	 	Restrictions on Fundamental Changes	  	 	34	 
		 	6.4.	 	Disposal of Assets	  	 	35	 

  
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 TABLE OF CONTENTS 

(cont’d) 
  

									
	 	 	 	 	 	  	Page	 
				
		 	6.5.	 	  
 Nature of Business
	  	 	35	 
		 	6.6.	 	Prepayments and Amendments	  	 	35	 
		 	6.7.	 	Restricted Payments	  	 	36	 
		 	6.8.	 	Accounting Methods	  	 	37	 
		 	6.9.	 	Investments	  	 	37	 
		 	6.10.	 	Transactions with Affiliates	  	 	37	 
		 	6.11.	 	Use of Proceeds	  	 	38	 
		 	6.12.	 	Limitation on Issuance of Equity Interests	  	 	38	 
		 	6.13.	 	Canadian Employee Benefits	  	 	38	 
		 	6.14.	 	Sale and Leaseback Transactions	  	 	39	 
		 	6.15.	 	Negative Pledges	  	 	39	 
		 	6.16.	 	Restrictions on Subsidiary Distributions	  	 	40	 
		 	6.17.	 	Business Activities; Permitted Store Closings	  	 	41	 
		 	6.18.	 	Margin Regulations	  	 	41	 
		 	6.19.	 	No Speculative Transactions	  	 	41	 
		 	6.20.	 	Amendment of Rolex Canada Documents	  	 	41	 
		 	6.21.	 	[Reserved]	  	 	41	 
		 	6.22.	 	Anti-layering	  	 	41	 
			
	 7.
	 	[RESERVED]	  	 	41	 
			
	 8.
	 	EVENTS OF DEFAULT	  	 	41	 
				
		 	8.1.	 	Payments	  	 	41	 
		 	8.2.	 	Covenants	  	 	42	 
		 	8.3.	 	Judgments	  	 	42	 
		 	8.4.	 	Voluntary Bankruptcy, etc.	  	 	42	 
		 	8.5.	 	Involuntary Bankruptcy, etc.	  	 	42	 
		 	8.6.	 	Default Under Other Agreements	  	 	43	 
		 	8.7.	 	Default under Revolving Loan Documents	  	 	43	 
		 	8.8.	 	Subordinated Debt Documents	  	 	43	 
		 	8.9.	 	Compliance Certificate; Borrowing Base Certificate	  	 	43	 
		 	8.10.	 	Guarantee	  	 	44	 
		 	8.11.	 	Security Documents	  	 	44	 
		 	8.12.	 	Loan Documents	  	 	44	 
		 	8.13.	 	Change of Control	  	 	44	 
		 	8.14.	 	Material Damage or Loss	  	 	44	 
			
	 9.
	 	RIGHTS AND REMEDIES	  	 	44	 
				
		 	9.1.	 	Rights and Remedies	  	 	44	 
		 	9.2.	 	Remedies Cumulative	  	 	45	 
			
	 10.
	 	WAIVERS; INDEMNIFICATION	  	 	45	 
				
		 	10.1.	 	Demand; Protest; etc	  	 	45	 
		 	10.2.	 	The Lender Group’s Liability for Collateral	  	 	45	 
		 	10.3.	 	Indemnification	  	 	45	 
		 	10.4.	 	Subordination; Subrogation	  	 	46	 

  
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 TABLE OF CONTENTS 

(cont’d) 
  

									
	 	 	 	 	 	  	Page	 
			
	 11.
	 	  
 NOTICES
	  	 	47	 
			
	 12.
	 	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION	  	 	48	 
			
	 13.
	 	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	  	 	50	 
				
		 	13.1.	 	Assignments and Participations	  	 	50	 
		 	13.2.	 	Successors	  	 	54	 
			
	 14.
	 	AMENDMENTS; WAIVERS	  	 	54	 
				
		 	14.1.	 	Amendments and Waivers	  	 	54	 
		 	14.2.	 	Replacement of Certain Lenders	  	 	56	 
		 	14.3.	 	No Waivers; Cumulative Remedies	  	 	57	 
			
	 15.
	 	AGENT; THE LENDER GROUP	  	 	57	 
				
		 	15.1.	 	Appointment and Authorization of Agent	  	 	57	 
		 	15.2.	 	Liability of Agent	  	 	58	 
		 	15.3.	 	Reliance by Agent	  	 	58	 
		 	15.4.	 	Notice of Default or Event of Default	  	 	58	 
		 	15.5.	 	Credit Decision	  	 	59	 
		 	15.6.	 	Costs and Expenses; Indemnification	  	 	59	 
		 	15.7.	 	Crystal Financial LLC in Individual Capacity	  	 	60	 
		 	15.8.	 	Successor Agent	  	 	60	 
		 	15.9.	 	Lender in Individual Capacity	  	 	61	 
		 	15.10.	 	Collateral Matters	  	 	61	 
		 	15.11.	 	Restrictions on Actions by Lenders; Sharing of Payments	  	 	63	 
		 	15.12.	 	Agency for Perfection	  	 	63	 
		 	15.13.	 	Payments by Agent to the Lenders	  	 	64	 
		 	15.14.	 	Concerning the Collateral and Related Loan Documents	  	 	64	 
		 	15.15.	 	Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	  	 	64	 
		 	15.16.	 	Several Obligations; No Liability	  	 	65	 
		 	15.17.	 	Quebec Security	  	 	65	 
			
	 16.
	 	WITHHOLDING TAXES	  	 	66	 
				
		 	16.1.	 	Payments	  	 	66	 
		 	16.2.	 	Exemptions	  	 	66	 
		 	16.3.	 	Reductions	  	 	67	 
		 	16.4.	 	Refunds	  	 	67	 
			
	 17.
	 	GENERAL PROVISIONS	  	 	68	 
				
		 	17.1.	 	Effectiveness	  	 	68	 
		 	17.2.	 	Section Headings	  	 	68	 
		 	17.3.	 	Interpretation	  	 	68	 
		 	17.4.	 	Severability of Provisions	  	 	68	 
		 	17.5.	 	Debtor-Creditor Relationship	  	 	68	 

  
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 TABLE OF CONTENTS 

(cont’d) 
  

									
	 	 	 	 	 	  	Page	 
				
	             
	 	 17.6.
	 	  
 Counterparts; Electronic Execution
	  	 	69	 
		 	 17.7.
	 	Revival and Reinstatement of Obligations; Certain Waivers	  	 	69	 
		 	 17.8.
	 	Confidentiality	  	 	69	 
		 	 17.9.
	 	Survival	  	 	71	 
		 	 17.10.
	 	Patriot Act; Canadian Anti-Money Laundering & Anti-Terrorism Legislation	  	 	71	 
		 	 17.11.
	 	Integration	  	 	72	 
		 	 17.12.
	 	Birks Group Inc. as Agent for Borrower	  	 	72	 
		 	 17.13.
	 	Judgment Currency	  	 	73	 
		 	 17.14.
	 	Intercreditor Agreement	  	 	73	 
		 	 17.15.
	 	No Setoff	  	 	74	 

  
 -v- 

 EXHIBITS AND SCHEDULES 

 

			
	Exhibit A-1	  	Form of Assignment and Acceptance
	Exhibit B-1	  	Form of Borrowing Base Certificate
	Exhibit B-4	  	[Reserved]
	Exhibit C-1	  	Form of Compliance Certificate
	Exhibit C-2	  	Form of Credit Card Notification
	Exhibit I-1	  	[Reserved]
	Schedule A-1	  	Agent’s Loan Account
	Schedule A-2	  	[Reserved]
	Schedule A-3	  	Authorized Persons
	Schedule C-1	  	Commitments
	Schedule D-1	  	[Reserved]
	Schedule D-2	  	[Reserved]
	Schedule E-1	  	Eligible Inventory Locations
	Schedule P-1	  	Permitted Investments
	Schedule P-2	  	Permitted Liens
	Schedule R-1	  	Real Property Collateral
	Schedule 1.1	  	Definitions
	Schedule 3.5	  	Post-Closing Covenants
	Schedule 4.1	  	Capitalization of Borrower and its Subsidiaries
	Schedule 4.6(b)	  	Litigation
	Schedule 4.11	  	Environmental Matters
	Schedule 4.14	  	Permitted Indebtedness
	Schedule 4.19	  	Employee and Labor Matters
	Schedule 4.20	  	Intellectual Property
	Schedule 4.23	  	Location of Inventory; Chief Executive Office
	Schedule 4.25	  	Credit Card Arrangements
	Schedule 4.26	  	Material Contracts
	Schedule 5.1	  	Financial Statements, Reports, Certificates
	Schedule 5.2	  	Collateral Reporting
	Schedule 6.5	  	Nature of Business

  
 -vi- 

 CREDIT AGREEMENT 

THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of June 29, 2018, by and among the
lenders identified on the signature pages hereof (each of such lenders, together with its successors and permitted assigns, is referred to hereinafter as a “Lender”, as that term is hereinafter further defined), CRYSTAL FINANCIAL
LLC as administrative agent for each member of the Lender Group (in such capacity, together with its successors and assigns in such capacity, “Agent”), BIRKS GROUP INC. and together with each other Person organized under the
laws of Canada or a province thereof that joins hereunder as a “Borrower” after the Closing Date in accordance with the terms hereof (each, a “Borrower” and all references herein to “Borrower” shall include each
such additional Borrower who so joins). 
 The parties agree as follows: 

 

	1.	 DEFINITIONS AND CONSTRUCTION. 

1.1.       Definitions. Capitalized terms used in this Agreement shall have the
meanings specified therefor on Schedule 1.1. 
 1.2.
      Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP; provided, that if Administrative Borrower notifies Agent that Borrower
requests an amendment to any provision hereof to eliminate the effect of any Accounting Change occurring after the Closing Date or in the application thereof on the operation of such provision (or if Agent notifies Administrative Borrower that the
Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such Accounting Change or in the application thereof, then Agent and Borrower agrees that they will
negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such Accounting Change with the intent of having the respective positions of the Lenders and Borrower after such Accounting Change conform as nearly
as possible to their respective positions before such Accounting Change and, until any such amendments have been agreed upon and agreed to by the Required Lenders, the provisions in this Agreement shall be calculated as if no such Accounting Change
had occurred. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term “Borrower” is used in respect of a financial covenant or a related definition, it shall be
understood to mean Borrower and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. Notwithstanding anything to the contrary contained herein, (a) all financial statements delivered hereunder shall be
prepared, and all financial covenants contained herein shall be calculated, without giving effect to any election under the Statement of Financial Accounting Standards No. 159 (or any similar accounting principle) permitting a Person to value
its financial liabilities or Indebtedness at the fair value thereof and (b) the term “unqualified opinion” as used herein to refer to opinions or reports provided by accountants shall mean an opinion or report that is
(i) unqualified, and (ii) does not include any qualification as to scope, going concern or similar items. 

1.3.       PPSA. Any terms used in this Agreement that are defined
in the PPSA shall be construed and defined as set forth in the PPSA unless otherwise defined herein. Notwithstanding 

 
the foregoing, and where the context so requires, (i) any term defined in this Agreement by reference to the PPSA shall also have any extended, alternative or analogous meaning given to such
term in the Code, in all cases for the extension, preservation or betterment of the security granted by a Loan Party formed in the United States and rights of the Collateral located in the United States, (ii) all references to Canada or to any
subdivision, department, agency or instrumentality thereof shall be deemed to refer also to the United States of America or to any subdivision, department, agency or instrumentality thereof, and (iii) all references to federal or state
securities law of the United States shall be deemed to refer also to analogous applicable federal and provincial securities laws in Canada. 

1.4.       Construction. Unless the context of this Agreement or any
other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has,
except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan
Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Unless the context of this Agreement or any other
Loan Document clearly requires otherwise, references to “law” means all international, foreign, federal, provincial, state and local statutes, treaties, rules, guidelines, regulations, by-laws, ordinances, decrees, codes and administrative
or judicial or arbitral or administrative or ministerial or departmental or regulatory precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of any Governmental Authority. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth
herein). The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties. All references to “province” or like terms
shall include “territory” and like terms. Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean (a) the payment or repayment in full in immediately
available funds in Canadian Dollars of (i) the principal amount of, and interest accrued and unpaid with respect to, all outstanding Loans, together with the payment of any premium applicable to the repayment of the Loans, (ii) all Lender
Group Expenses that have accrued and are unpaid regardless of whether demand has been made therefor, (iii) all fees or charges that have accrued hereunder or under any other Loan Document and are unpaid, (b) the receipt by Agent of cash
collateral in Canadian Dollars in order to secure any other contingent Obligations for which a claim or demand for payment has been made on or prior to such time or in respect of matters or circumstances known to Agent or a Lender at such time that
are reasonably expected to result in any loss, cost, damage, or expense (including legal expenses to the extent payable pursuant to Section 10.3), such cash collateral to be in such amount as Agent reasonably determines is appropriate to secure
such contingent Obligations, but in no event greater than 103% of the face 

  
 -2- 

 
amount of such claim or demand to the extent a specific amount has been claimed or demanded, and (c) the termination of all of the Commitments of the Lenders. Any reference herein to any
Person shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record. 

1.5.       Time References. Unless the context of this Agreement or
any other Loan Document clearly requires otherwise, all references to time of day refer to Eastern standard time or Eastern daylight saving time, as in effect in Montreal, Quebec on such day. For purposes of the computation of a period of time from
a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to and including”; provided that, with respect to a
computation of fees or interest payable to Agent or any Lender, such period shall in any event consist of at least one full day. 

1.6.       Schedules and Exhibits. All of the schedules and exhibits
attached to this Agreement shall be deemed incorporated herein by reference. 
 1.7.
      Exchange Rates; Currency Equivalents. 
 (a)
      All references to “Dollars” or “$” shall mean Canadian Dollars unless otherwise specified herein. For purposes of this Agreement and the other Loan Documents, the Canadian Dollar Equivalent of
the Term Loan and other Obligations and other references to amounts denominated in a currency other than Canadian Dollars shall be determined in accordance with the terms of this Agreement. Except as otherwise expressly provided herein or in the
applicable other Loan Document, the applicable amount of any currency for purposes of this Agreement and the other Loan Documents (including all calculations in connection with the covenants, including the financial covenants) shall be the Canadian
Dollar Equivalent thereof, and for the purpose of such calculations, comparisons, measurements or determinations, amounts denominated in currencies other than Canadian Dollars shall be converted into the Canadian Dollar Equivalent of such amount on
the date of calculation, comparison, measurement or determination. Notwithstanding the foregoing, for the purposes of financial statements prepared by Borrower, the Canadian Dollar Equivalent of each amount in a currency other than Canadian Dollars
shall be determined in accordance with GAAP. Furthermore, the Agent shall determine the Canadian Dollar Equivalent of any foreign currency amount as required hereby, and a determination thereof by the Agent shall be conclusive absent manifest error.
The Agent may, but shall not be obligated to, rely on any determination made by any Loan Party in any document delivered to the Agent. The Agent may determine or redetermine the Canadian Dollar Equivalent of any foreign currency amount on any date
either in its own discretion or upon the request of any Lender. The Agent may set up appropriate rounding off mechanisms or otherwise round-off amounts hereunder to the nearest higher or lower amount in whole Canadian Dollars or cents to ensure
amounts owing by any party hereunder or that otherwise need to be calculated or converted hereunder are expressed in whole Canadian Dollars or in whole cents, as may be necessary or appropriate. 

1.8.       Quebec Interpretation. For all purposes of any assets,
liabilities or entities located in the Province of Quebec and for all purposes pursuant to which the interpretation or construction of this Agreement may be subject to the laws of the Province of Quebec or a court

  
 -3- 

 
or tribunal exercising jurisdiction in the Province of Quebec, (a) “personal property” shall include “movable property”, (b) “real property” shall include
“immovable property”, (c) “tangible property” shall include “corporeal property”, (d) “intangible property” shall include “incorporeal property”, (e) “security interest”,
“mortgage” and “lien” shall include a “hypothec”, “prior claim” and a “resolutory clause”, (f) all references to filing, registering or recording under the PPSA shall include publication under
the Civil Code of Quebec, (g) all references to “perfection” of or “perfected” liens or security interest shall include a reference to an “opposable” or “set up” lien or security interest as against third
parties, (h) any “right of offset”, “right of setoff’ or similar expression shall include a “right of compensation”, (i) “goods” shall include “corporeal movable property” other than
chattel paper, documents of title, instruments, money and securities, (j) an “agent” shall include a “mandatary”, (k) “construction liens” shall include “legal hypothecs”, (l) “joint and
several” shall include “solidary”, (m) “gross negligence or willful misconduct” shall be deemed to be “intentional or gross fault”, (n) “beneficial ownership” shall include “ownership on
behalf of another as mandatary”, (o) “easement” shall include “servitude”, (p) “priority” shall include “prior claim”, (q) “survey” shall include “certificate of location and
plan”, and (r) “fee simple title” shall include “absolute ownership”. 
  

	2.	 TERM LOAN AND TERMS OF PAYMENT. 

2.1.       Term Loan Facility. Subject to the terms and conditions set forth in
this Agreement, on the Closing Date, each Lender shall make the Borrower a term loan in the principal amount equal to its Pro Rata Share of Twelve Million Five Hundred Thousand Dollars ($12,500,000) (the “Term Loan”),
provided that, in no event shall the Term Loan made by any Lender exceed such Lender’s Commitment. The Term Loan is not a revolving credit facility and may not be repaid and redrawn and any repayments or prepayments of principal on a
Term Loan shall permanently reduce such Term Loan. The obligations of the Lenders hereunder are several and not joint, joint and several or solidary. The Borrower irrevocably authorizes the Agent and the Lenders to disburse the proceeds of the Term
Loan on the Closing Date in accordance with the terms of this Agreement. The entire unpaid principal balance of the Term Loan shall be due and payable on the Termination Date. 

(b)     On the Termination Date, all Obligations shall be immediately due and payable. All undertakings
of the Borrower contained in the Loan Documents shall survive any termination, and the Agent shall retain its Liens in the Collateral (subject to the Intercreditor Agreement) and all of its rights and remedies under the Loan Documents until payment
in full of the Obligations (including all accrued and unpaid principal, interest and fees, and any other Obligations then due and owing, and any appropriate collateral deposits in connection therewith). 

2.2.       Borrowing Base. 

(a)     The Combined Total Outstandings shall not exceed the lesser of the Borrowing Base or the Combined
Loan Cap. Until the payment in full of the Revolving Loan Debt and the termination of the “Commitments” (as defined in the Revolving Credit Agreement), the Borrowing Base shall be determined by reference to the most recent Borrowing Base
Certificate delivered by the Borrower. 

  
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 (b)       Anything to the contrary in this
Section 2.2 notwithstanding, Agent shall have the right (but not the obligation), in the exercise of its Permitted Discretion, to establish and increase or decrease Receivable Reserves, Bank Product Reserves (as defined in the Revolving
Credit Agreement), Loan to Value Reserves, Inventory Reserves, Canadian Priority Payable Reserves and other Reserves against the Borrowing Base; provided, that Agent shall notify Borrower at least 5 Business Days prior to the date on which
any such reserve is to be established or increased; provided further, that (A) no such prior notice shall be required for changes to any reserves established under this Agreement resulting solely by virtue of mathematical
calculations of the amount of the Reserve in accordance with the methodology of calculation set forth in this Agreement or previously utilized; (B) no such prior notice shall be required during the continuance of any Event of Default and
(C) no such prior notice shall be required with respect to any Reserve established in respect of any consensual Lien that has priority over Agent’s Liens on the Collateral. The amount of any Receivable Reserve, Loan to Value Reserves,
Inventory Reserve, Canadian Priority Payables Reserve or other Reserve shall be established by Agent in its Permitted Discretion and shall have a reasonable relationship to the event, condition, other circumstance, or fact that is the basis for such
reserve and shall not be duplicative of any other Reserve established and currently maintained. No reserve shall be implemented with respect to matters which are already specifically reflected as ineligible Accounts or Inventory or Credit Card
Receivables. 
 (c)       Protective Advances. 

(i)     Any contrary provision of this Agreement or any other Loan Document notwithstanding, but subject
to Section 2.2(c)(iii), at any time after the occurrence and during the continuance of a Default or an Event of Default, Agent hereby is authorized by Borrower and the Lenders, from time to time, in Agent’s sole discretion, to make
advances to, or for the benefit of, Borrower, in each case, on behalf of the Lenders, that Agent, in its Permitted Discretion, deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to
enhance the likelihood of repayment of the Obligations (the advances described in this Section 2.2(c)(i) shall be referred to as “Protective Advances”. The Protective Advances shall be made in Canadian Dollars or US
Dollars, as determined by the Agent. Notwithstanding the foregoing, the aggregate Canadian Dollar Equivalent amount of all Protective Advances outstanding at any one time shall not exceed 10% of the Commitment (unless Required Lenders otherwise
agree to a higher amount). 
 (ii)     Each Protective Advance shall be deemed to form part of the
Obligations hereunder. All payments on the Protective Advances, including interest thereon, shall be payable to Agent solely for its own account. The Protective Advances shall be repayable on demand, constitute Obligations hereunder, and bear
interest at the rate applicable from time to time to the Term Loan hereunder. The provisions of this Section 2.2(c) are for the exclusive benefit of Agent and the Lenders, and are not intended to benefit Borrower (or any other Loan
Party) in any way. 
 (iii)     Notwithstanding anything contained in this Agreement or any other Loan
Document to the contrary, no Protective Advances may be made by Agent if such Protective Advances would cause the aggregate Canadian Dollar Equivalent principal amount of Protective Advances outstanding to exceed an amount equal to 10% of the
Commitments (unless 

  
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Required Lenders otherwise agree to a higher amount). For the avoidance of doubt, nothing in this Section 2.2(c) shall require any Lender to advance amounts in excess of such
Lender’s Commitment. Each Lender shall reimburse the Agent, on demand, its Pro Rata Share of any Protective Advances. 

(d)       Notation. Agent, as a non-fiduciary agent for Borrower, shall maintain a
register showing the principal amount of the Term Loan, owing to each Lender and Protective Advances owing to Agent, and the interests therein of each Lender, from time to time and such register shall, absent manifest error, conclusively be presumed
to be correct and accurate. 
 (e)       Defaulting Lenders. 

(i)       Notwithstanding any provision to the contrary in this Agreement, Agent shall not be
obligated to transfer to a Defaulting Lender any payments made by or on behalf of any Loan Party to Agent for the Defaulting Lender’s benefit or any proceeds of Collateral that would otherwise be remitted hereunder to the Defaulting Lender,
and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such proceeds of Collateral or payments pertaining to or securing Obligations, (i) first, to Agent, to the extent of any Protective Advances that were made
by Agent and that were required to be, but were not, paid by the Defaulting Lender, (ii) second, to each Non-Defaulting Lender ratably in accordance with its Commitment (but, in each case, only to the extent that such Defaulting Lender’s
portion of a Term Loan (or other funding obligation) was funded by such other Non-Defaulting Lender), (iii) third, at Borrower’s request (so long as no Event of Default exists and the conditions set forth on Section 3.1 are
satisfied), the funding of the Term Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, or reasonably determined by the Agent, (iv) fourth, from and after the date on which all
other Obligations have been paid in full, to such Defaulting Lender. Subject to the foregoing, Agent may hold for the account of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting
Lender. Solely for the purposes of voting or consenting to matters with respect to the Loan Documents (including the calculation of Pro Rata Share in connection therewith) and for the purpose of calculating the fees payable under
Section 2.5, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero; provided, that the foregoing shall not apply to any of the matters governed by
Section 14.1(a)(i) through (iii). The provisions of this Section 2.2(e) shall remain effective with respect to such Defaulting Lender until the earlier of (y) the date on which all of the Non-Defaulting Lenders, Agent
and Borrower shall have waived, in writing, the application of this Section 2.2(e) to such Defaulting Lender, or (z) the date on which such Defaulting Lender makes payment of all amounts that it was obligated to fund hereunder, pays
to Agent all amounts owing by Defaulting Lender in respect of the amounts that it was obligated to fund hereunder, and, if requested by Agent, provides adequate assurance of its ability to perform its future obligations hereunder (on which earlier
date, so long as no Event of Default has occurred and is continuing, any remaining cash collateral held by Agent pursuant to this Section 2.2(e) shall be released to Borrower). The operation of this Section 2.2(e) shall not
be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by
Borrower of its duties and obligations hereunder to Agent, or to the Lenders other than such Defaulting Lender. Any failure by a 

  
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Defaulting Lender to fund amounts that it was obligated to fund hereunder shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle Borrower, at their
option, upon written notice by Administrative Borrower to Agent, to arrange for a substitute Lender to assume the Commitments and Loans of such Defaulting Lender and the Commitments and Loans of any Affiliate of such Defaulting Lender, such
substitute Lender to be reasonably acceptable to Agent. In connection with the arrangement of such a substitute Lender, the Defaulting Lenders shall have no right to refuse to be replaced hereunder, and agree to execute and deliver a completed form
of Assignment and Acceptance in favor of the substitute Lender (and agree that they shall be deemed to have executed and delivered such document if they fail to do so) subject only to being paid its share of the outstanding Obligations (including
all interest, fees, and other amounts that may be due and payable in respect thereof; provided, that any such assumption of the Commitments and Loans of such Defaulting Lenders shall not be deemed to constitute a waiver of any of the Lender
Groups’ or Borrower’s rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund. In the event of a direct conflict between the priority provisions of this Section 2.2(e) and any
other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of
any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.2(e) shall control and govern. 

(f)       Replacement of Lenders. In the event that any Lender is a Defaulting
Lender (each an “Affected Lender”), then the Borrower may, at its option, notify the Agent and such Affected Lender of its intention to replace the Affected Lender. So long as no Default or Event of Default shall have occurred and
be continuing, the Borrower, with the consent of the Agent, may obtain, at the Borrower’s expense, a replacement Lender (“Replacement Lender”) for the Affected Lender, which Replacement Lender must be (i) an Eligible
Transferee and (ii) satisfactory to the Agent. If the Borrower obtains a Replacement Lender within ninety (90) days following notice of their intention to do so, the Affected Lender must sell and assign its Pro Rata Share of the Term Loan
to such Replacement Lender for an amount equal to the principal balance of its Pro Rata Share of the Term Loan held by the Affected Lender and all accrued interest and fees with respect thereto through the date of such sale; provided that the
Borrower shall have reimbursed such Affected Lender for the additional amounts or increased costs that it is entitled to receive under this Agreement through the date of such sale and assignment. Furthermore, if the Borrower gives a notice of
intention to replace and does not so replace such Affected Lender within ninety (90) days thereafter, the Borrower’s rights under this paragraph as to such noticed replacement and in connection with such Affected Lender shall terminate.

 (g)       Independent Obligations. The Term Loan shall be made by the
Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make its Pro Rata Share of the Term Loan (or other
extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations
hereunder shall excuse any other Lender from its obligations hereunder. 

  
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 2.3.       Payments; Apportionment and
Application; Use of Proceeds; Repayments; Prepayments. 
 (a)      
Payments by Borrower. 
 (i)       Except as otherwise expressly provided
herein, all payments by Borrower shall be made to Agent’s Loan Account for the account of the Lender Group and shall be made in immediately available funds in Canadian Dollars, no later than 1:30 p.m. on the date specified herein. Any payment
received by Agent later than 1:30 p.m. shall be deemed to have been received (unless Agent, in its sole discretion, elects to credit it on the date received) on the following Business Day and any applicable interest or fee shall continue to accrue
until such following Business Day. 
 (ii)       Unless Agent receives notice from
Administrative Borrower prior to the date on which any payment is due to the Lenders that Borrower will not make such payment in full as and when required, Agent may assume that Borrower has made (or will make) such payment in full to Agent on such
date in immediately available funds and Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does not
make such payment in full to Agent on the date when due, each Lender severally shall repay to Agent on demand such amount distributed to such Lender, together with interest thereon at the interest rate applicable to the Term Loan for each day from
the date such amount is distributed to such Lender until the date repaid. 
 (b)      
Apportionment and Application. 
 (i)       Notwithstanding anything herein to
the contrary (but subject to the Intercreditor Agreement), at any time after the occurrence and continuance of an Event of Default, all funds received by the Agent or any Lender and for which the Borrower has received credit for such payment,
together with all payments to be initially applied to the Obligations, whether arising from payments by the Loan Parties, realization on Collateral, setoff or otherwise, shall be applied to the Obligations as follows: 

(A)       first, to all costs and expenses, including Lender Group Expenses, owing to
the Agent; 
 (B)       second, to all Obligations constituting fees (other than the
Early Termination Fee) and Lender Group Expenses owing to the Lenders; 
 (C)      
third, to all Obligations constituting interest on the Term Loan; 
 (D)      
fourth, to all Obligations constituting the Early Termination Fee; 
 (E)      
fifth, to all other Obligations owing to the Lenders; and 

  
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 (F)       sixth, to the Borrower or such
other person entitled thereto under the applicable law. 
 (ii)       Amounts shall be
applied to each category of Obligations set forth above until payment in full thereof and then to the next category. If amounts are insufficient to satisfy a category, they shall be applied on a pro rata basis among the Obligations in the category.
The allocations set forth in this Section 2.3(b)(ii) are solely to determine the rights and priorities of the Agent and the Lenders as among themselves, and may be changed by agreement among them without the consent of any Loan Party. Any
amounts applied to the categories described in clauses 2.3(b)(i)(B), (C), (D) and (E) shall be so applied in accordance with each Lender’s Pro Rata Share of the Term Loan. 

(iii)       Agent shall promptly distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive. 

(iv)       In each instance, so long as no Application Event has occurred and is continuing,
Section 2.3(b)(i)(A) shall not apply to any payment made by Borrower to Agent and specified by Administrative Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this
Agreement or any other Loan Document. 
 (v)       For purposes of
Section 2.3(b)(i)(A), “paid in full” of a type of Obligation means payment in cash or immediately available funds of all amounts owing on account of such type of Obligation, including interest accrued after the commencement of
any Insolvency Proceeding, default interest, interest on interest, and expense reimbursements, irrespective of whether any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 

(vi)       In the event of a direct conflict between the priority provisions of this
Section 2.3 and any other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert
with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, if the conflict relates to the provisions of Section 2.2(e) and this Section 2.3, then the provisions of
Section 2.2(e) shall control and govern, and if otherwise, then the terms and provisions of this Section 2.3 shall control and govern. The Agent shall not be liable for any application of amounts made by it in error (unless
it has been determined in a final, non-appealable judgment by a court of competent jurisdiction that such error was a result of the gross negligence or willful misconduct of the Agent) and if any such application is subsequently determined to have
been made in error, the sole recourse of any Lender or other Person to which such amount should have been made (unless it has been determined in a final, non-appealable judgment by a court of competent jurisdiction that such error was a result of
the gross negligence or willful misconduct of the Agent) shall be to recover the amount from the Person that actually received it (and, if such amount was received by any Lender, such Lender hereby agrees to return it). 

(c)       Use of Proceeds. The proceeds of the Term Loan shall be used by
the Borrower solely (a) to pay fees and transaction expenses associated with the closing of this credit 

  
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facility; and (b) to reduce the Revolving Loan Debt to create availability under the Revolving Borrowing Capacity for use by the Borrower for working capital, Capital Expenditures and other
lawful corporate purposes of the Borrower and its Subsidiaries in accordance with this Agreement and the Revolving Credit Agreement. 

(d)       Repayment of the Term Loan. The Term Loan and all other Obligations
shall be due and payable in full on the Maturity Date, unless payment is sooner required hereunder pursuant to Section 9. The Borrower promises to pay on the Maturity Date, or on such earlier date as payment is required hereunder pursuant to
Section 9, and there shall become absolutely due and payable on such date, the Total Outstandings, together with any and all accrued and unpaid interest thereon and all other fees and other amounts then accrued and outstanding with respect
thereto. The Term Loan may be prepaid in accordance with Section 2.3(h). 
 (e)
      Payment of Other Obligations. Obligations other than the Term Loan, including Lender Group Expenses, shall be paid by the Borrower as provided in the Loan Documents or, if no payment date is
specified, promptly upon receipt by the Borrower of notice of the amounts due in connection therewith. 
 (f)
      Marshaling; Payments Set Aside. Neither of the Agent nor the Lenders shall be under any obligation to marshal any assets in favor of any Loan Party or against any Obligations. If any Loan Party makes
a payment to the Agent or the Lenders, or if the Agent or any Lender receives payment from the proceeds of Collateral, exercise of setoff or otherwise, and such payment is subsequently invalidated or required to be repaid to a trustee, receiver or
any other Person, then the Obligations originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been received and any enforcement or setoff
had not occurred. 
 (g)       Mandatory Prepayments. If at any time the
Combined Total Outstandings exceed the Borrowing Base then in effect, then (i) until the payment in full of the Revolving Loan Debt, the Borrower shall immediately prepay the Revolving Loan Debt, and (ii) thereafter, the Borrower shall
immediately prepay (subject to Section 2.3(b)) the Obligations, for the respective accounts of the Lenders in accordance with their Pro Rata Share thereof, in each case in an amount necessary to eliminate such excess. Each prepayment of the
Obligations made pursuant to this Section shall be accompanied by the payment of (i) accrued interest to the date of such payment on the amount prepaid and (ii) whether before or after an Event of Default or acceleration, the Early
Termination Fee, if any, payable pursuant to Section 2.5(d) in connection with such prepayment of the Term Loan. 

(h)       Optional Prepayments. The Borrower may prepay the principal of the Term
Loan at any time in whole or in part. Each such prepayment shall be irrevocable and be accompanied by a notice specifying the proposed date of such prepayment and the principal amount of the Term Loan or portion thereof to be prepaid. Each
prepayment made pursuant to this Section shall be accompanied by the payment of (i) accrued interest to the date of such payment on the amount prepaid and (ii) whether before or after an Event of Default or acceleration, the Early
Termination Fee, if any, payable pursuant to Section 2.5(d) in connection with such prepayment of the Term Loan. Each such prepayment shall be applied (subject to 

  
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Section 2.3(b)) to the Obligations, for the respective accounts of the Lenders in accordance with their Pro Rata Share thereof. 

(i)       Crediting Payments. The receipt of any payment item by Agent shall not
be required to be considered a payment on account unless such payment item is a wire transfer of immediately available funds in Canadian Dollars made to Agent’s Loan Account or unless and until such payment item is honored when presented for
payment. Should any payment item not be honored when presented for payment, then Borrower shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any
payment item shall be deemed received by Agent only if it is received into Agent’s Loan Account on a Business Day on or before 1:30 p.m. If any payment item is received into Agent’s Loan Account on a non-Business Day or after 1:30 p.m. on
a Business Day (unless Agent, in its sole discretion, elects to credit it on the date received), it shall be deemed to have been received by Agent as of the opening of business on the immediately following Business Day. 

(j)       Maintenance of Loan Account; Statements of Obligations. Agent shall
maintain accounts on its books in the name of Borrower, the “Loan Account” on which Borrower will be charged with the Term Loan (including Protective Advances) made by Agent or the Lenders to Borrower or for Borrower’s account
and all other payment Obligations hereunder or under the other Loan Documents, including accrued interest, fees and expenses, and Lender Group Expenses of Borrower with respect thereto. Upon request, Agent shall make available to Administrative
Borrower monthly statements regarding the Loan Account, including the principal amount of the Term Loan, interest accrued hereunder, fees accrued or charged hereunder or under the other Loan Documents, and a summary itemization of all charges and
expenses constituting Lender Group Expenses accrued hereunder or under the other Loan Documents, and each such statement, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between
Borrower and the Lender Group unless, within 60 days after Agent first makes such a statement available to Administrative Borrower, Administrative Borrower shall deliver to Agent written objection thereto describing the error or errors contained in
such statement. 
 2.4.       Interest Rates; Payment of Interest. 

(a)       Interest Rate. Subject to Section 2.4(b), the Obligations under
the Term Loan shall bear interest at a rate equal to Adjusted CDOR plus the Applicable Margin. 

(b)       Default Rate. Upon the occurrence and during the continuation of an
Event of Default and at the option of the Agent (or upon the direction of the Required Lenders), all Loans, and all Obligations that have been charged to the Loan Account pursuant to the terms hereof, shall bear interest, from the original date of
the occurrence of such Event of Default, at a per annum rate equal to two percentage points (2.0%) above the per annum rate otherwise applicable thereunder. 

(c)       Payment of Interest. Interest accrued on the Obligations shall be due
and payable in arrears, and the Borrower promises to pay interest to the Lenders (i) on each Interest Payment Date, (ii) on any date of prepayment, with respect to the principal amount of the Term

  
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Loan being prepaid, and (iii) on the Termination Date. Interest accrued on any other Obligations shall be due and payable as provided in the Loan Documents and, if no payment date is
specified, shall be due and payable on demand. Notwithstanding the foregoing, interest accrued at the Default Rate shall be due and payable on demand. 

(d)       Computation of Interest. All computation of interest, as well as fees
and other charges calculated on a per annum basis, shall be computed for the actual days elapsed, based on a year of 365/366 days. Each determination by the Agent of any interest, fees or interest rate hereunder shall be final, conclusive and
binding for all purposes, absent manifest error. All fees shall be fully earned when due and shall not be subject to rebate or refund, nor subject to proration except as specifically provided herein. 

(e)       Intent to Limit Charges to Maximum Lawful Rate. In no event shall the
interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable.
Subject to Section 2.1, Borrower and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, that, anything
contained herein to the contrary notwithstanding, if such rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be liable only for
the payment of such maximum amount as is allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the applicable Obligations to the extent of such
excess. 
 2.5.       Fees and Expenses. 

(a)       Agent’s Fee. Borrower shall pay to Agent, for the account of
Agent, unless otherwise indicated, as and when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter. 

(b)       Field Examination and Other Fees. Borrower shall pay to Agent, field
examination, appraisal, and valuation fees and charges, as and when incurred or chargeable, as follows (i) reasonable and documented out-of-pocket expenses (including travel, meals, and lodging)) if it elects to employ the services of one or
more third Persons to perform field examinations of Borrower or its Subsidiaries, to establish electronic collateral reporting systems, to appraise the Collateral (including Eligible Accounts), or any portion thereof, or to assess Borrower’s or
its Subsidiaries’ business valuation; provided, that so long as no Event of Default shall have occurred and be continuing, Borrower shall not be obligated to reimburse Agent for more than 2 field examinations of each Loan Party during
any calendar year, or more than 2 appraisals of Inventory of each Loan Party during any 12-month period; provided further, however, that if Excess Availability is less than 15% of the Combined Loan Cap for a period of 5 consecutive
Business Days at any time during any 12-month period, then Borrower shall be obligated to reimburse Agent for an additional field examination of each Loan Party during such 12-month period and for an additional appraisal of Inventory of each Loan
Party during such 12-month period. Notwithstanding the foregoing or anything to the contrary contained herein, unless an Event of Default has occurred and is continuing, Agent shall not require that any such

  
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field examinations be conducted at Borrower’s expense so long as the Revolving Agent has conducted two (2) such field examinations (and a third (3rd) field exam if Excess Availability is less than 15% of the Combined Loan Cap for a period of 5 consecutive Business Days at any time during any 12-month period) in each calendar year and has
shared the Reports (as defined in the Revolving Credit Agreement) prepared in connection therewith Agent pursuant to the terms of the Intercreditor Agreement. 

(c)       Early Termination Fee. Upon the occurrence of an Applicable Premium
Trigger Event, the Borrower shall pay to the Agent, for the ratable benefit of the Lenders, the Early Termination Fee. Notwithstanding anything to the contrary in this Agreement or any other Loan Document, it is understood and agreed that if the
Obligations are accelerated as a result of the occurrence and continuance of any Event of Default (including by operation of law or otherwise), the Early Termination Fee, if any, determined as of the date of acceleration, will also be due and
payable and will be treated and deemed as though the Term Loan was prepaid as of such date and shall constitute part of the Obligations for all purposes herein. Any Early Termination Fee payable in accordance with this Section 2.5(d) shall be
presumed to be equal to the liquidated damages sustained by the Lenders as the result of the occurrence of the Applicable Premium Trigger Event, and the Loan Parties agree that it is reasonable under the circumstances currently existing. The Early
Termination Fee, if any, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other means. THE LOAN
PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING EARLY TERMINATION FEE IN CONNECTION WITH ANY SUCH ACCELERATION. The Loan Parties expressly agree that
(A) the Early Termination Fee is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel, (B) the Early Termination Fee shall be payable notwithstanding the then
prevailing market rates at the time payment is made, (C) there has been a course of conduct between Lenders and the Loan Parties giving specific consideration in this transaction for such agreement to pay the Early Termination Fee, (D) the
Loan Parties shall be estopped hereafter from claiming differently than as agreed to in this Section 2.5(d), (E) their agreement to pay the Early Termination Fee is a material inducement to the Lenders to make the Term Loan, and
(F) the Early Termination Fee represents a good faith, reasonable estimate and calculation of the lost profits or damages of the Lenders and that it would be impractical and extremely difficult to ascertain the actual amount of damages to the
Lenders or profits lost by the Lenders as a result of such Applicable Premium Trigger Event. 

2.6.       Reimbursement Obligations. The Borrower shall reimburse the
Agent and the Lenders for all Lender Group Expenses. Without duplication, the Borrower shall also reimburse the Agent and the Lenders for all reasonable and documented legal, accounting, appraisal, consulting, and other out-of-pocket fees, costs and
expenses incurred by it in connection with (a) negotiation, preparation, execution and delivery of any Loan Documents, including any amendment or other modification thereof (whether or not the transactions contemplated hereby or thereby shall
be consummated); (b) administration of and actions relating to any Collateral, Loan Documents and transactions contemplated thereby, including any actions taken to perfect or maintain priority of the Agent’s Liens on any Collateral, to
maintain any insurance required hereunder or to verify Collateral; and (c) subject to the limits of Section 2.5(c) each inspection, 

  
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audit or appraisal with respect to any Loan Party or Collateral, whether prepared by the Agent’s or any Lender’s personnel or a third party. The Borrower shall also reimburse the Agent
and the Lenders for all reasonable and documented out-of-pocket costs and expenses incurred by them (whether during an Event of Default or otherwise) in connection with the enforcement or preservation of any rights under this Agreement or any of the
other Loan Documents (including during any workout, restructuring or negotiations in respect of the Term Loan, Loan Documents or the transactions contemplated thereby). All amounts reimbursable by the Borrower under this Section 2.6 shall
constitute Obligations secured by the Collateral and shall be payable within twenty Business Days after presentation by the Agent or the applicable Lender to the Borrower of a reasonably detailed itemization of such amounts. 

2.7.       Capital Adequacy; Increased Costs. 

(a)       If a Lender determines that any introduction of or any change in a Capital Adequacy
Regulation, any change in the interpretation or administration of a Capital Adequacy Regulation by a Governmental Authority charged with interpretation or administration thereof, or any compliance by such Lender or any Person controlling such Lender
with a Capital Adequacy Regulation, in each case made after the date hereof, increases the amount of capital or liquidity required or expected to be maintained by such Lender or Person (taking into consideration its capital adequacy and liquidity
policies and desired return on capital) as a consequence of such Lender’s Pro Rata Share of the Term Loan or other obligations under the Loan Documents, then the Borrower shall, within thirty days following demand therefor, pay such Lender an
amount sufficient to compensate for such increase. A Lender’s demand for payment shall set forth the nature of the occurrence giving rise to such compensation and a calculation of the amount to be paid. In determining such amount, the Lender
may use any reasonable averaging and attribution method. 
 (b)       If any Change in Law
shall subject the Agent or any Lender to any Taxes (other than Excluded Taxes and Indemnified Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital
attributable thereto and the result of any of the foregoing shall be to increase the cost to such Lender or the Agent of making, converting to, continuing or maintaining any loan or of maintaining its obligation to make any such Loan, or to increase
the cost to such Lender or the Agent of participating in, or to reduce the amount of any sum received or receivable by such Lender or the Agent hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the
Agent, the Borrower will, no later than 30 days following such request, pay to such Lender or the Agent, as the case may be, such additional amount or amounts as will compensate such Lender or the Agent, as the case may be, for such additional costs
incurred or reduction suffered. 
 (c)       If any Lender requests additional or increased
costs referred to in this Section 2.7 (such Lender, an “Affected Lender”), then such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its rights and
obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to this Section 2.7, or would
eliminate the illegality or impracticality of funding or maintaining the Term Loan and (ii) in the reasonable judgment of such Affected Lender, such 

  
 -14- 

 
designation or assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable
out-of-pocket costs and expenses incurred by such Affected Lender in connection with any such designation or assignment. If, after such reasonable efforts, such Affected Lender does not so designate a different one of its lending offices or assign
its rights to another of its offices or branches so as to eliminate Borrower’s obligation to pay any future amounts to such Affected Lender pursuant to this Section 2.7, as applicable, or to enable Borrower to continue to obtain the
Term Loan, then Administrative Borrower (without prejudice to any amounts then due to such Affected Lender hereunder) may, unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such additional
amounts under this Section 2.7, or indicates that it is no longer unlawful or impractical to continue to fund or maintain the Term Loan, may designate a substitute a Lender, in each case, reasonably acceptable to Agent, to purchase the
Obligations owed to such Affected Lender (and its Affiliates) and such Affected Lender’s (and its Affiliates’) commitments hereunder (a “Replacement Lender”), and if such Replacement Lender agrees to such purchase, such
Affected Lender (and its Affiliates) shall assign to the Replacement Lender its Obligations and commitments and upon such purchase by the Replacement Lender, such Replacement Lender shall be deemed to be “a “Lender” for purposes of
this Agreement and such Affected Lender shall cease to be a “Lender” (as the case may be) for purposes of this Agreement (in which circumstances the Affected Lender shall not receive any Early Termination Fee). 

(d)       Notwithstanding anything herein to the contrary, the protection of this
Section 2.7 shall be available to each Lender regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation, judicial ruling, judgment, guideline, treaty or other change or condition which shall
have occurred or been imposed, so long as it shall be customary for Lenders affected thereby to comply therewith. Notwithstanding any other provision herein, Lender shall demand compensation pursuant to this Section 2.7 if it shall not
at the time be the general policy or practice of such to demand such compensation in similar circumstances under comparable provisions of other credit agreements, if any. 

(e)       Dodd-Frank Act. Notwithstanding anything herein to the contrary,
(x) the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all regulations, rules, guidelines and directives promulgated thereunder and (y) all rules, guidelines or directives promulgated by the Bank for International
settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, in each case, be deemed to have been adopted after the
date hereof, regardless of the date enacted, adopted or issued. 
 2.8.      
Currencies. The Term Loan and other Obligations (unless such other Obligations expressly provide otherwise) shall be made and repaid in Canadian Dollars. The Term Loan shall be denominated in Canadian Dollars except that Protective
Advances made by Agent shall be denominated in Canadian Dollars or US Dollars (as selected by Agent). All Obligations denominated in Canadian Dollars shall be repaid in Canadian Dollars and all Obligations denominated in US Dollars shall be repaid
in Canadian Dollars. Payments made in a currency other than the currency in which the applicable Obligations are denominated may be accepted by the Agent in its sole discretion and, if so accepted, Borrower agrees that the Agent

  
 -15- 

 
may convert the payment made to the currency of the applicable Obligations at the applicable Spot Rate in accordance with its normal practices. 

2.9.       Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of
Interest.  
 Notwithstanding anything to the contrary contained in this Agreement or in any other Loan Document: 

(a)       whenever interest payable by Borrower is calculated on the basis of a period which is
less than the actual number of days in a calendar year, each rate of interest determined pursuant to such calculation is, for the purposes of the Interest Act (Canada), equivalent to such rate multiplied by the actual number of days in the
calendar year in which such rate is to be ascertained and divided by the number of days used as the basis of such calculation. 

(b)       the Borrower confirms that it fully understands and is able to calculate the rate of
interest applicable to the Loans based on the methodology for calculating annual rates provided for in this Agreement. The Borrower hereby irrevocably agrees not to plead or assert, whether by way of defense or otherwise, in any proceeding relating
to this Agreement or any other Loan Documents, that the interest payable under this Agreement and the calculation thereof has not been adequately disclosed to the Borrower as required pursuant to Section 4 of the Interest Act (Canada). 

(c)       in no event shall the aggregate “interest” (as defined in Section 347
of the Criminal Code (Canada), as the same shall be amended, replaced or re-enacted from time to time (the “Criminal Code Section”)) payable (whether by way of payment, collection or demand) by Borrower to Agent or any Lender
under this Agreement or any other Loan Document exceed the effective annual rate of interest on the “credit advanced” (as defined in that section) under this Agreement or such other Loan Document lawfully permitted under that section and,
if any payment, collection or demand pursuant to this Agreement or any other Loan Document in respect of “interest” (as defined in that section) is determined to be contrary to the provisions of that section and the amount of such payment
or collection shall be refunded by Agent and Lenders to Borrower with such “interest” deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by the
Criminal Code Section to result in a receipt by Agent or such Lender of interest at a rate not in contravention of the Criminal Code Section, such adjustment to be effected, to the extent necessary, as follows: firstly, by reducing the amounts or
rates of interest required to be paid to Agent or that Lender; and then, by reducing any fees, charges, expenses and other amounts required to be paid to the affected Agent or Lender which would constitute “interest”. Notwithstanding the
foregoing, and after giving effect to all such adjustments, if Agent or any Lender shall have received an amount in excess of the maximum permitted by the Criminal Code Section, then Borrower shall be entitled, by notice in writing to the Agent or
affected Lender, to obtain reimbursement from Agent or that Lender in an amount equal to such excess. For the purposes of this Agreement and each other Loan Document to which Borrower is a party, the effective annual rate of interest payable by
Borrower shall be determined in accordance with generally accepted actuarial practices and principles over the term of the loans on the basis of annual compounding for the lawfully permitted rate of interest and, in the event of dispute, a
certificate of a Fellow of the Institute of Actuaries appointed by Agent for the account of 

  
 -16- 

 
Borrower will be conclusive for the purpose of such determination in the absence of evidence to the contrary, 

(d)       all calculations of interest payable by Borrower under this Agreement or any other
Loan Document are to be made on the basis of the nominal interest rate described herein and therein and not on the basis of effective yearly rates or on any other basis which gives effect to the principle of deemed reinvestment of interest. The
parties acknowledge that there is a material difference between the stated nominal interest rates and the effective yearly rates of interest and that they are capable of making the calculations required to determine such effective yearly rates of
interest, 
 (e)       any provision of this Agreement that would oblige Borrower to pay any
fine, penalty or rate of interest on any arrears of principal or interest secured by a mortgage on real property or hypothec on immovables that has the effect of increasing the charge on arrears beyond the rate of interest payable on principal money
not in arrears shall not apply to Borrower, which shall be required to pay interest on money in arrears at the same rate of interest payable on principal money not in arrears, and 

(f)       if there is a conflict, inconsistency, ambiguity or difference between any provision
of this Section 2.9 and any other Section of this Agreement or any other Loan Document with respect to Borrower then the provisions of this Section 2.9 shall prevail and be paramount. 

2.10.       Tax Treatment. The Borrower and the Lenders agree (i) that
the Term Loan is debt for federal income tax purposes, (ii) that the “issue price” of the Term Loan is 100% and that the Term Loan is not governed by the rules set out in Treasury Regulations Section 1.1275-4, and (iii) to
adhere to this Agreement for federal income tax purposes and not to file any tax return, report or declaration inconsistent herewith unless otherwise required due to a Change in Law. The inclusion of this Section 2.10 is not an admission by any
Lender that it is subject to United States taxation. 
  

	3.	 CONDITIONS; TERM OF AGREEMENT. 

3.1.       Conditions Precedent to Effectiveness of Agreement. This
Agreement shall not be effective and the Lenders shall not be required to fund their respective portions of the Term Loan hereunder until the date that each of the following conditions has been satisfied (in each case, in form and substance
satisfactory to the Agent and each of the Lenders): 
 (a)       This Agreement and each
other Loan Document shall have been duly executed and delivered to the Agent by each of the signatories thereto, and each Loan Party shall be in compliance with all terms thereof. 

(b)       Notes shall have been executed by the Borrower and delivered to each Lender that
requests issuance of a Note. 
 (c)       The Agent shall be satisfied that the Security
Documents shall be effective to create in favor of the Agent a legal, valid and enforceable security interest in and Lien upon the Collateral (subject only to the first priority security interest and Lien in favor of the

  
 -17- 

 
Revolving Agent and other Permitted Liens) and shall have received (i) to the extent not previously delivered to the Agent prior to the date hereof, evidence that all filings, recordings,
deliveries of instruments and other actions necessary or desirable in the commercially reasonable opinion of the Agent to protect and preserve such security interests shall have been duly effected, (ii) RPMRR, UCC, PPSA and Lien searches
(and the equivalent thereof in all applicable foreign jurisdictions) and other evidence reasonably satisfactory to the Agent that such Liens are the only Liens upon the Collateral, except Permitted Liens, (iii) to the extent not previously
delivered to the Agent prior to the date hereof, evidence that the payment (or evidence of provision for payment) of all filing and recording fees and taxes due and payable in respect thereof has been made in form and substance reasonably
satisfactory to the Agent and (iv) to the extent not previously delivered to the Agent prior to the date hereof, all Lien Waivers and Lien Priority Agreements necessary or desirable in the reasonable opinion of the Agent. 

(d)       To the extent not previously delivered to the Agent prior to the date hereof, the
Agent shall have received (i) duly executed copies of the Revolving Loan Agreement, the Montrovest Debt Documents, the Management Agreement and the Rolex Canada Documents, certified by a Senior Officer of the Borrower as complete and correct
(with such certification to be in such Person’s capacity as a Senior Officer of the Borrower and not in such Person’s individual capacity), and the Agent shall be satisfied with the terms and conditions and provisions thereof, which
documents shall be in full force and effect and without amendment except attached thereto; and (ii) duly executed estoppel letters with respect to consignment filings on record in any province in Canada to the extent that the collateral
description in such consignment filings is not sufficiently limited as determined by the Agent in its commercially reasonable discretion. 

(e)       The Agent shall have received a certificate, in form and substance reasonably
satisfactory to it, from a Senior Officer of the Borrower (with such certification to be in such Person’s capacity as a Senior Officer of the Borrower and not in such Person’s individual capacity) certifying that: 

(i)       after giving effect to the Term Loan and transactions hereunder, (A) each Loan
Party is Solvent; (B) no Default or Event of Default exists; (C) the representations and warranties set forth in Section 4 are true and correct in all material respects; and (D) each Loan Party has complied in all material
respects with all agreements and conditions to be satisfied by it under the Loan Documents; 

(ii)       there is no action, suit, investigation or proceeding pending or, to the knowledge
of the Loan Parties, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect; 

(iii)       no law or regulation to which any Loan Party is subject is applicable to the
transactions contemplated hereby which could reasonably be expected to have a Material Adverse Effect on any Loan Party or a Material Adverse Effect on the transactions contemplated hereby; 

(iv)       no Material Adverse Effect shall have occurred since October 23, 2017; 

  
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 (v)       the Revolving Loan Documents shall be in
full force and effect and no default or event of default shall exist thereunder on the Closing Date; 

(vi)       all accounts payable, leases, payments due under other Indebtedness and Taxes are
not past due, excluding any good faith disputes; and 
 (vii)       there is no default in
existence under any Material Contract by a Loan Party. 
 (f)       The Agent shall have
received a certificate of a duly authorized officer of each Loan Party (with such certification to be in such Person’s capacity as an officer of such Loan Party and not in such Person’s individual capacity), certifying (i) that the
attached copy of such Loan Party’s Organizational Documents (including, without limitation, such Loan Party’s charter documents) are true and complete and in full force and effect, and remain in full force and effect, (ii) that an
attached copy of resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that such resolutions are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all
resolutions adopted with respect to this credit facility, (iii) to the title, name and signature of each Person authorized to sign the Loan Documents, and (iv) that either (a) the attached copies are all of the consents, licenses and
approvals required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force
and effect, or (v) that no such consents, licenses or approvals are so required. The Agent may conclusively rely on this certificate until it is otherwise notified by the applicable Loan Party in writing. 

(g)       Each of the Lenders and the Agent shall have received favorable legal opinions
addressed to the Lenders and the Agents, dated as of the Closing Date, in form and substance reasonably satisfactory to the Lenders and the Agents, from (i) Stikeman Elliott LLP, Canadian counsel to the Borrower and their Subsidiaries; and
(ii) local Canadian counsel to the Borrower and their Subsidiaries with respect to filing and perfection matters in the applicable provinces and territories of Canada. 

(h)       The Agent shall have received good standing or subsistence certificates, as
applicable, for each Loan Party, issued by the appropriate official of such Loan Party’s jurisdiction of organization, dated as of a recent date. 

(i)       The Agent shall (i) be reasonably satisfied with the amount, types and terms and
conditions of all insurance maintained by the Loan Parties and their Subsidiaries, and (ii) have received certificates of insurance identifying insurers, types of insurance, insurance limits and policy terms and with endorsements naming the
Agent, for the benefit of the Lenders, as lender’s loss payee or additional insured, as applicable, with respect to each insurance policy required to be maintained with respect to the Collateral and otherwise in form and substance reasonably
satisfactory to the Agent. 
 (j)       The Borrower shall have paid to the Agent those fees
due on the Closing Date in the amounts set forth herein. 

  
 -19- 

 (k)       To the extent not previously delivered
to the Agent prior to the date hereof, the Agent shall have received duly executed copies of the Management Subordination Agreement and the Montrovest Subordination Agreement, each of which shall be in form and substance satisfactory to the Agent
and which shall be in full force and effect. 
 (l)       The Agent shall have entered into
(i) the Intercreditor Agreement with the Revolving Loan Agent, and (ii) the Quebec Subordination Agreement with Investissement Québec, each of which agreement shall be in form and substance satisfactory to the Agent. 

(m)       The Agent shall have received a Borrowing Base Certificate indicating that Excess
Availability as of the Closing Date, after giving effect to the transactions contemplated hereby (including the making of the Term Loan on the Closing Date) and by the Revolving Loan Documents, is not less than 14% of the Combined Loan Cap. 

(n)       The Agent shall have received (i) the audited financial statements of the
Borrower for the Fiscal Year ended on March 25, 2017, (ii) the unaudited financial statements of the Borrower for the period ending September 30, 2017, and (iii) forecasts prepared by management of the Borrower of balance sheets,
income statements and cash flow statements of the Borrower on a monthly basis for the current Fiscal Year and next twelve months, and there shall have been no material misstatements in or omissions from the materials previously furnished to the
Agent for its review. 
 (o)       There have occurred no material changes in governmental
regulations or policies adversely affecting the Loan Parties, the Agent or the Lenders party to this transaction. 

(p)       The Agent shall have received an executed letter of direction, in form and substance
satisfactory to the Agent. 
 (q)       The Agent shall have received an Information
Certificate dated as of the date hereof, executed by the Borrower. 
 3.2.      
[Reserved]. 
 3.3.       Maturity. This Agreement shall continue
in full force and effect for a term ending on the Maturity Date. 
 3.4.       Effect of
Maturity. On the Maturity Date, all commitments of the Lender Group to provide additional credit hereunder shall automatically be terminated and all of the Obligations shall become due and payable immediately without notice or demand and
Borrower shall be required to repay all of the Obligations in full. No termination of the obligations of the Lender Group (other than payment in full of the Obligations and termination of the Commitments) shall relieve or discharge any Loan Party of
its duties, obligations, or covenants hereunder or under any other Loan Document and Agent’s Liens in the Collateral shall continue to secure the Obligations and shall remain in effect until all Obligations have been paid in full and the
Commitments have been terminated. When all of the Obligations have been paid in full and the Lender Group’s obligations to provide additional credit under the Loan Documents have been terminated irrevocably, Agent will, at Borrower’s sole
expense, execute and deliver any termination statements, lien releases, discharges of security interests, and other similar discharge 

  
 -20- 

 
or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, Agent’s Liens and all notices of security interests and liens previously
filed by Agent. 
 3.5.      Post-Closing Covenants. Borrower
covenants and agrees to satisfy each item on Schedule 3.5 on or before the date set forth on Schedule 3.5 for such item. 
  

	4.	 REPRESENTATIONS AND WARRANTIES. 

In order to induce the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties
to the Lender Group which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof), as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof), as of the date on which the Borrower delivers a Compliance Certificate, as though made on and as of the date of such Compliance Certificate (except to the extent that such representations and warranties
relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof) as of such earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement: 

4.1.      Due Organization and Qualification; Subsidiaries. 

(a)     Borrower and, subject to the completion of any transaction permitted by Section 6.3,
each of its Subsidiaries (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization, (ii) is qualified or registered to do business in any jurisdiction where the failure to be so
qualified would reasonably be expected to result in a Material Adverse Effect, and (iii) has all requisite corporate, limited liability or other organizational power and authority (as applicable) to own and operate its properties, to carry on
its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. 

(b)     Set forth on Schedule 4.1 is a complete and accurate description as of the Closing Date of
the authorized Equity Interests of Borrower and each of its Subsidiaries, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Neither Borrower nor any of its Subsidiaries
is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its Equity Interests or any security convertible into or exchangeable for any of its Equity Interests except for any Equity Interests
(other than Disqualified Equity Interests) that are permitted by the Loan Documents. 
 (c)     Set
forth on Schedule 4.1 (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), is a complete and accurate list of the Loan Parties’ direct and indirect
Subsidiaries, showing: (i) the 

  
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number of shares of each class of common and preferred Equity Interests authorized for each of such Subsidiaries, and (ii) the number and the percentage of the outstanding shares of each
such class owned directly or indirectly by Borrower. All of the outstanding Equity Interests of each such Subsidiary has been validly issued and is fully paid and non-assessable. 

(d)     Except as set forth on Schedule 4.1, there are no subscriptions, options, warrants, or
calls relating to any shares of Borrower’s or any of its Subsidiaries’ Equity Interests as of the Closing Date, including any right of conversion or exchange under any outstanding security or other instrument. 

4.2.     Due Authorization; No Conflict. 

(a)     As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan
Documents to which it is a party have been duly authorized by all necessary organizational action on the part of such Loan Party. 

(b)     As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan
Documents to which it is a party do not and will not (i) violate any material provision of federal, provincial, state, foreign or local law or regulation applicable to any Loan Party or its Subsidiaries, or any order, judgment, or decree of any
court or other Governmental Authority binding on any Loan Party or its Subsidiaries where any such violation would individually or in the aggregate reasonably be expected to have a Material Adverse Effect, (ii) violate the Governing Documents
of any Loan Party or its Subsidiaries, (iii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material agreement of any Loan Party or its Subsidiaries where any such conflict,
breach or default would individually or in the aggregate reasonably be expected to have a Material Adverse Effect, (iv) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party or
its Subsidiaries, other than Permitted Liens, or (v) require any approval of any holder of Equity Interests of a Loan Party or its Subsidiaries or any approval or consent of any Person under any material agreement of any Loan Party or its
Subsidiaries, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of material agreements, for consents or approvals, the failure to obtain would not individually or in the aggregate
reasonably be expected to cause a Material Adverse Effect. 
 4.3.     Governmental
Consents. The execution, delivery, and performance by each Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of the transactions contemplated by the Loan Documents do not and will not require any
registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force and effect
and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to Agent for filing or recordation, as of the Closing Date or where any such failure to do the foregoing would not individually or in the
aggregate reasonably be expected to have a Material Adverse Effect. 
 4.4.     Binding
Obligations; Perfected Liens. 

  
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 (a)     Each Loan Document has been duly executed and
delivered by each Loan Party that is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable
principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 

(b)     Agent’s Liens are validly created, perfected (other than (i) any Excluded Deposit
Accounts (as defined in the Canadian Security Documents)), and first priority Liens, subject only to Permitted Liens, Purchase Money Liens securing Permitted Purchase Money Indebtedness and Liens securing the interests of lessors under Capital
Leases. 
 4.5.     Title to Assets; No Encumbrances. Each of the Loan Parties and its
Subsidiaries has (a) good, sufficient and legal title to (in the case of fee interests in Real Property), (b) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (c) good and marketable
title to (in the case of all other personal property), all of their respective assets reflected in the most recent financial statements delivered pursuant to Section 5.1, in each case except for (i) assets disposed of since the date
of such financial statements to the extent permitted hereby, and (ii) minor defects in title that do not interfere with any sale, transfer, or other disposition of such property, or its ability to conduct its business as currently conducted or
to utilize such properties for their intended purposes. All of such assets are free and clear of Liens except for Permitted Liens. 

4.6.     Litigation. 

(a)     There are no actions, suits, or proceedings pending or, to the knowledge of Borrower, after due
inquiry, threatened in writing against a Loan Party or any of its Subsidiaries that either individually or in the aggregate would reasonably be expected to result in a Material Adverse Effect. 

(b)     Schedule 4.6(b) sets forth a complete and accurate description, with respect to each of
the actions, suits, or proceedings with asserted liabilities in excess of, or that could reasonably be expected to result in liabilities of a Loan Party in excess of, $1,000,000 that, as of the Closing Date, is pending or, to the knowledge of
Borrower, after due inquiry, threatened in writing against a Loan Party or any of its Subsidiaries, of (i) the parties to such actions, suits, or proceedings, (ii) the nature of the dispute that is the subject of such actions, suits, or
proceedings, (iii) the procedural status, as of the Closing Date, with respect to such actions, suits, or proceedings, and (iv) whether any liability of the Loan Parties’ and their Subsidiaries in connection with such actions, suits,
or proceedings is covered by insurance. 
 4.7.     Compliance with Laws. No Loan Party
nor any of its Subsidiaries (a) is in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, would reasonably be expected to result in a Material
Adverse Effect, or is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, provincial, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, in each case that, individually or in the aggregate, would reasonably be expected to result in a Material Adverse Effect. 

  
 -23- 

 4.8.     Financial Statements; No Material Adverse
Effect. All historical financial statements relating to the Loan Parties and their Subsidiaries that have been delivered by Borrower to Agent have been prepared in accordance with GAAP (except, in the case of unaudited financial statements,
for the lack of footnotes and being subject to year-end audit adjustments) and, present fairly in all material respects, the Loan Parties’ and their Subsidiaries’ consolidated financial condition as of the date thereof and results of
operations for the period then ended. Since October 23, 2017, no event, circumstance, or change has occurred that has or would reasonably be expected to result in a Material Adverse Effect with respect to the Loan Parties and their
Subsidiaries. 
 4.9.     Solvency. 

(a)     The Loan Parties, taken as a whole, are Solvent. 

(b)     No transfer of property is being made by any Loan Party and no obligation is being incurred by
any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party. 

4.10.     Canadian Pension Plan. As of the Closing Date, no Loan Party, nor any of its
Subsidiaries, maintains or contributes to any Canadian Pension Plans nor have any liabilities or obligations in respect of a Canadian Defined Benefit Plan that has been terminated or wound up. 

4.11.     Environmental Condition. Except as set forth on Schedule 4.11 or except as,
individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, (a) no Loan Party’s nor any of its Subsidiaries’ properties or assets has ever been used by a Loan Party, its Subsidiaries, or
by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any
respect, of or has given rise to liability of a Loan Party or any of its Subsidiaries, or to the knowledge of Borrower, liability of previous owners or operators, under any applicable Environmental Law, (b) no Loan Party’s nor any of its
Subsidiaries’ properties or assets has ever been designated or identified in any manner pursuant to any Environmental Law as a Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries has received written notice
that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned or operated by a Loan Party or its Subsidiaries, and (d) no Loan Party nor any of its Subsidiaries nor any of their respective facilities
or operations is subject to any outstanding Environmental Action or other written order, consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liabilities. 

4.12.     Complete Disclosure. All factual information taken as a whole (other than
forward-looking information and projections and information of a general economic nature and general information about Borrower’s industry) furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any Lender
(including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement or the other Loan Documents, and all other such factual information taken as a whole (other than
forward-looking information and projections and information of a general economic 

  
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nature and general information about Borrower’s industry) hereafter furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any Lender 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 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. The Projections delivered to Agent on or about April 17, 2018 represent, and as of the date on which any other Projections are delivered to Agent, such additional
Projections represent, Borrower’s good faith estimate, on the date such Projections are delivered, of the Loan Parties’ and their Subsidiaries’ future performance for the periods covered thereby based upon assumptions believed by
Borrower to be reasonable at the time of the delivery thereof to Agent (it being understood that such Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Loan Parties and their
Subsidiaries, and no assurances can be given that such Projections will be realized, and although reflecting Borrower’s good faith estimate, projections or forecasts based on methods and assumptions which Borrower believed to be reasonable at
the time such Projections were prepared, are not to be viewed as facts, and that actual results during the period or periods covered by the Projections may differ materially from projected or estimated results). 

4.13.     Patriot Act; Canadian AML and Anti-Terrorism
Laws. To the extent applicable, each Loan Party and each of its Subsidiaries is in compliance in all material respects with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot Act”) and all applicable Canadian Anti-Money Laundering & Anti-Terrorism Legislation. No part of the proceeds of the
Loans made hereunder will be used by any Loan Party or any of their Affiliates, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or
anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 

4.14.     Indebtedness. Set forth on Schedule 4.14 is a true and complete list of all
Indebtedness of each Loan Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding immediately after giving effect to the closing hereunder on the Closing Date and such Schedule accurately
sets forth the aggregate principal amount of such Indebtedness as of the Closing Date. 
 4.15.
    Payment of Taxes. All Federal, provincial and state income Tax returns and all other material Tax returns and reports of each Loan Party and its Subsidiaries required to be filed by any of them have been timely
filed, and all Federal, provincial and state income Taxes and all other material Taxes shown on such Tax returns to be due and payable and all material assessments, fees and other governmental charges upon a Loan Party and its Subsidiaries and upon
their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable, except (a) where failure to do so could not reasonably be expected to have a Material Adverse Effect; or (b) the
validity of such Tax is the subject of a Permitted Protest as contemplated by Section 5.5 Each Loan Party and each of its Subsidiaries 

  
 -25- 

 
have made adequate provision in accordance with GAAP for all Taxes not yet due and payable. Borrower does not know of any material proposed Tax assessment against a Loan Party or any of its
Subsidiaries that is not being actively contested by such Loan Party or such Subsidiary diligently, in good faith, and by appropriate proceedings; provided such reserves or other appropriate provisions, if any, as shall be required in
conformity with GAAP shall have been made or provided therefor. 
 4.16.     Margin Stock.
No Loan Party nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the loans made to
Borrower will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors.

 4.17.     Governmental Regulation. No Loan Party nor any of its Subsidiaries is subject
to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other federal, provincial or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all
or any portion of the Obligations unenforceable. No Loan Party nor any of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal
underwriter” of a “registered investment company” as such terms are defined in the Investment Company Act of 1940. 

4.18.     OFAC. No Loan Party nor any of its Subsidiaries is in violation of any of the
country or list based economic and trade sanctions administered and enforced by OFAC or any Canadian Governmental Authority. No Loan Party nor any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b) has its assets
located in Sanctioned Entities, or (c) to its knowledge derives revenues directly or indirectly, from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. No proceeds of any loan made hereunder will be used to fund
any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. 

4.19.     Employee and Labor Matters. Except as set forth on Schedule 4.19, no Loan
Party nor any of its Subsidiaries is a party to or otherwise bound by any collective bargaining or similar agreement with any union or other labor organization. Except to the extent would not, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect, there is (i) no unfair labor practice charge or complaint pending or, to the knowledge of Borrower, threatened against Borrower or any of its Subsidiaries before any Governmental Authority and no
grievance or arbitration proceeding pending or threatened against Borrower or any of its Subsidiaries which arises out of or under any collective bargaining agreement and that would reasonably be expected to result in a material liability,
(ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened in writing against Borrower or its Subsidiaries that could reasonably be expected to result in a material liability, or (iii) to the
knowledge of Borrower, after due inquiry, no union representation question existing with respect to the employees of Borrower or its Subsidiaries and no union organizing activity taking place with respect to any of the employees of Borrower or its
Subsidiaries. None of Borrower or its Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state or foreign law, which remains unpaid or

  
 -26- 

 
unsatisfied which could reasonably be expected to result in a Material Adverse Effect. The hours worked and payments made to, classification of, employees of Borrower and its Subsidiaries have
not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent such violations would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
All material payments due from Borrower or its Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of Borrower and all remittances and withholdings on
account of Taxes and employer or employee contribution to benefit plans have been remitted to the applicable Governmental Authority when due, except where the failure to do so would not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect. 
 4.20.     Intellectual Property. Each Loan Party
and Subsidiary owns or has the lawful right to use all Intellectual Property necessary for the conduct of its business, without conflict with any rights of others. There is no pending or, to any Loan Party’s knowledge, threatened material
Intellectual Property Claim with respect to any Loan Party, any Subsidiary or any of their Property (including any Intellectual Property). All Intellectual Property owned by any Loan Party or any Subsidiary and registered with the U.S. Patent and
Trademark Office, the Canadian Intellectual Property Office or any other applicable Governmental Authority is identified on Schedule 4.20. 

4.21.     Eligible Accounts. As to each Account that is identified by Borrower as an
Eligible Account or an Eligible Credit Card Receivable in a Borrowing Base Certificate submitted to Agent, such Account is (a) a bona fide existing payment obligation of the applicable Account Debtor created by the sale and delivery of
Inventory or the rendition of services to such Account Debtor in the ordinary course of Borrower’s business, (b) owed to a Borrower without any known defenses, disputes, offsets, counterclaims, or rights of return or cancellation, and
(c) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Agent-discretionary criteria) set forth in the definition of Eligible Accounts or Eligible Credit Card Receivables, as the case may be. 

4.22.     Eligible Inventory. As to each item of Inventory that is identified by Borrower as
Eligible Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria
(other than any Agent-discretionary criteria) set forth in the definition of Eligible Inventory. 
 4.23.
    Location of Inventory and Equipment. Except for the third-party warehouse locations identified on Schedule 4.23, the Inventory and Equipment of Borrower is not stored with a bailee, warehouseman, or
similar party and is located only at, or in-transit between, the locations identified on Schedule 4.23 (as such Schedule may be updated pursuant to Section 5.16). 

4.24.     Inventory Records. Each Loan Party keeps correct and accurate records itemizing
and describing the type, quality, and quantity of its and its Subsidiaries’ Inventory and the book value thereof. 

  
 -27- 

 4.25.     Credit Card Arrangements. Schedule
4.25 is a list describing all arrangements as of the Closing Date to which any Loan Party is a party with respect to the processing and/or payment to such Loan Party of the proceeds of any credit card charges and debit card charges for sales
made by such Loan Party. 
 4.26.     No Defaults; Material Contracts. No event or
circumstance has occurred or exists as of the date of this Agreement that constitutes a Default or Event of Default. Schedule 4.26 contains a true, correct and complete list of all Material Contracts, and except as described thereon, all such
Material Contracts are in full force and effect. No Loan Party or Subsidiary is in default, and no event or circumstance has occurred or exists that with the passage of time or giving of notice would constitute a default, under any Material Contract
which would enable the other contracting party to terminate such Material Contract. There is no basis upon which any party (other than a Loan Party or the Subsidiary) could terminate a Material Contract prior to its scheduled termination date. 

4.27.     Operations of Certain Subsidiaries. As of the Closing Date, CGS is inactive and
does not engage in any trade or business, own any assets or owe any Indebtedness or any other obligation or liability except as expressly permitted hereunder in its capacity as a Loan Party and the ownership of all of the outstanding shares of CGS
USA. Each of CGS USA and Birks Jewellers Limited, is inactive and does not engage in any trade or business, own any assets or owe any Indebtedness or any other obligation or liability other than, in the case of CGS USA, (a) the provision of
limited support services to Borrower and (b) the payment by Borrower to CGS USA of up to US$500,000 in the aggregate in each Fiscal Year in the form of Permitted Intercompany Advances and reimbursements of reasonable and documented expenses
incurred by CGS USA for and on behalf of Borrower, provided that no Default or Event of Default has occurred and is continuing at the time of any such payment. 

4.28.     Trade Relations. There exists no actual or threatened termination, limitation or
modification of any business relationship between any Loan Party or any Subsidiary and any customer or supplier, or any group of customers or suppliers, individually or in the aggregate the consequence of which could reasonably be expected to result
in a Material Adverse Effect. 
  

	5.	 AFFIRMATIVE COVENANTS. 

Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations: 

5.1.     Financial Statements, Reports, Certificates. Borrower (a) will deliver to
Agent each of the financial statements, reports, and other items set forth on Schedule 5.1 no later than the times specified therein, (b) agree that no Subsidiary of a Loan Party will have a Fiscal Year different from that of Borrower,
(c) agree to maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP, and (d) agree that they will, and will cause each other Loan Party to, (i) keep a reporting system that shows
all additions, sales, claims, returns, and allowances with respect to their Subsidiaries’ sales (for avoidance of doubt, Agent and Lenders hereby acknowledge that the reporting system maintained by the Loan Parties on the Closing Date satisfies
this clause (i)), and (ii) agree that they will, and will cause each other Loan Party to maintain their billing and reporting system materially consistent with 

  
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that in effect as of the Closing Date, and shall only make material modifications thereto with notice to, and with the consent of, the Agent (such consent not to be unreasonably withheld or
delayed). 
 5.2.     Reporting. Borrower (a) will deliver to Agent (and if so
requested by Agent, with copies for each Lender) each of the reports set forth on Schedule 5.2 at the times specified therein, and (b) agree to use commercially reasonable efforts in cooperation with Agent to facilitate and implement a
system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth on such Schedule. 

5.3.     Existence. Except as otherwise permitted under Section 6.3 or
Section 6.4, Borrower will, and will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect such Person’s valid existence and good standing in its jurisdiction of organization and, except as would
not reasonably be expected to result in a Material Adverse Effect, good standing with respect to all other jurisdictions in which it is qualified or required to be qualified to do business and any rights, franchises, permits, licenses,
accreditations, authorizations, or other approvals material to their businesses. 
 5.4.
    Maintenance of Properties. Borrower will, and will cause each of its Subsidiaries to, maintain and preserve all of its assets that are necessary or useful in the proper conduct of its business in good working
order and condition, ordinary wear, tear, casualty, and condemnation and Permitted Dispositions excepted (and except where the failure to so maintain and preserve assets would not reasonably be expected to result in a Material Adverse Effect). 

5.5.     Taxes. Borrower will, and will cause each of its Subsidiaries to, pay in full
before delinquency or before the expiration of any extension period all Federal, provincial and state income and capital Taxes and all other material Taxes imposed, levied, or assessed against it, or any of its assets or in respect of any of its
income, capital, businesses, or franchises, except to the extent that the validity of such Tax is the subject of a Permitted Protest. 

5.6.     Insurance. Borrower will, and will cause each of its Subsidiaries to, at
Borrower’s expense, maintain insurance respecting each of each Loan Party’s and its Subsidiaries’ assets wherever located, covering liabilities, losses or damages as are customarily are insured against by other Persons engaged in same
or similar businesses and similarly situated and located and flood insurance coverage acceptable to Agent with respect to all Real Property Collateral (to the extent flood insurance is required). All such policies of insurance shall be with
financially sound and reputable insurance companies that are reasonably acceptable to Agent (it being agreed that any insurance providers which have a policy in effect with Borrower or any of its Subsidiaries as of the Closing Date are acceptable to
Agent) and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and, in any event, in amount, adequacy, and scope reasonably satisfactory to Agent (it
being agreed that the amount, adequacy, and scope of the policies of insurance of Borrower in effect as of the Closing Date are acceptable to Agent). All property insurance policies covering the Collateral are to be made payable to Agent for the
benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard lenders’ loss payable endorsement with a standard non-contributory “lender” or “secured party” clause and are to
contain such other provisions as Agent may reasonably require to fully protect 

  
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the Lenders’ interest in the Collateral and to any payments to be made under such policies. All certificates of property and general liability insurance are to be delivered to Agent, with
lenders’ loss payable (but only in respect of Collateral) and additional insured endorsements in favor of Agent and shall provide for not less than 30 days (10 days in the case of non-payment), or such shorter period as Agent may agree, prior
written notice to Agent of the exercise of any right of cancellation. If any Loan Party or its Subsidiaries fails to maintain such insurance, Agent may arrange for such insurance, but at Borrower’s expense and without any responsibility on
Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims. Borrower shall give Agent prompt notice of any loss exceeding $1,000,000 covered by Borrower or
its Subsidiaries’ casualty or business interruption insurance. Upon the occurrence and during the continuance of an Event of Default, Agent shall have the sole right to file claims under any property and general liability insurance policies in
respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to
effect the collection, compromise or settlement of any claims under any such insurance policies. 
 5.7.
    [Reserved]. 
 5.8.     [Reserved]. 

5.9.     [Reserved]. 

5.10.     Inspection. 

(a) Borrower will, and will cause each of its Subsidiaries to, permit Agent, any Lender and each of their respective duly
authorized representatives or agents to visit any of its properties and inspect any of its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised
as to the same by, its officers and employees (provided an authorized representative of a Borrower shall be allowed to be present) at such reasonable times and intervals as Agent or any Lender, as applicable, may designate and, so long as no Default
or Event of Default has occurred and is continuing, with reasonable prior notice to Administrative Borrower and during regular business hours. 

(b) Borrower will, and will cause each of its Subsidiaries to, permit Agent and each of its duly authorized representatives
or agents to conduct appraisals and valuations at such reasonable times and intervals as Agent may designate; provided that the expenses required to be paid by the Loan Parties in connection therewith shall be subject to any applicable
limitation set forth in Section 2.5(c). 
 5.11.     Compliance with Laws and Material
Contracts. Borrower will, and will cause each of its Subsidiaries to, comply with (a) the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority, and (b) all of its Material Contracts,
except in each case where non-compliance with which, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 

5.12.     Environmental. Borrower will, and will cause each of its Subsidiaries to, 

  
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 (a)       Keep any property either owned or
operated by any Loan Party or its Subsidiaries free of any Environmental Liens (other than Permitted Liens) or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens (other
than Permitted Liens), 
 (b)       Comply with applicable Environmental Laws, except where a
failure to comply would not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Effect, and provide to Agent documentation of such compliance which Agent reasonably requests, 

(c)       Promptly notify Agent of any release of which Borrower has knowledge of a Hazardous
Material in any reportable quantity or which could reasonably be expected to result in material liabilities of any Loan Party or its Subsidiaries from or onto property owned or operated by any Loan Party or its Subsidiaries and take any Remedial
Actions required to abate said release or otherwise to come into compliance, in all material respects, with applicable Environmental Law, except where a failure to comply would not reasonably be expected to result in, individually or in the
aggregate, a Material Adverse Effect, and provide to Agent documentation of such compliance which Agent reasonably requests, and 

(d)       Promptly, but in any event within 5 Business Days of its receipt thereof, provide
Agent with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of a Loan Party or its Subsidiaries, (ii) commencement of any Environmental Action or
written notice that an Environmental Action will be filed against a Loan Party or its Subsidiaries that individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, and (iii) written notice of a violation,
citation, or other administrative order from a Governmental Authority that would reasonably be expected to result in, individually or in the aggregate, a Material Adverse Effect. 

5.13.     Disclosure Updates. Each Loan Party will, promptly and in no event
later than fifteen Business Days after obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished to Agent or the Lenders contained, at the time it was furnished, any untrue statement of a material fact or
omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision
will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 

5.14.     Formation of Subsidiaries. Borrower will, at the time that any Loan
Party forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, (x) within 30 days of such formation or acquisition (or such later date as permitted by Agent in its sole discretion)
(a) cause such new Subsidiary to provide to Agent a joinder to the Canadian Security Documents and other applicable Loan Documents (including this Agreement to the extent that such Subsidiary is to be joined as a Borrower hereunder), as
applicable, which joinder shall include such provisions as Agent shall consider necessary or desirable for the inclusion of such Subsidiary as a Borrower or other Loan Party including such provisions as are necessary or desirable to reflect the
formation of such Subsidiary under the laws of a jurisdiction 

  
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other than Canada or the location of Collateral outside of Canada) and a guarantee of the Obligations, if required, together with such other security agreements, as well as appropriate financing
statements (and with respect to all Real Property Collateral subject (or required hereunder to be subject) to a Mortgage, fixture filings) all in form and substance reasonably satisfactory to Agent (including being sufficient to grant Agent a first
priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary (other than Excluded Property, as defined in the Canadian Security Documents); to the applicable Canadian Security Documents, the guarantee
and such other security agreements shall not be required to be provided to Agent with respect to Obligations, if the costs to the Loan Parties of providing such guarantee or such security agreements are unreasonably excessive (as determined by Agent
in consultation with Administrative Borrower) in relation to the benefit to Agent and the Lenders of the security or guarantee afforded thereby and (b) provide to Agent all other documentation, including one or more opinions of counsel
reasonably satisfactory to Agent, which, in its reasonable judgment, is necessary with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance, or other documentation with
respect to all Real Property Collateral owned in fee simple (for the avoidance of doubt excluding any leasehold properties) and required to be subject to a Mortgage), and (y) within 60 days of such formation or acquisition (or such later date
as permitted by Agent in its sole discretion), (a) cause such new Subsidiary to provide to Agent Mortgages with respect to any Real Property owned in fee simple (for the avoidance of doubt excluding any leasehold properties) of such new
Subsidiary with a fair market value greater than $500,000, as well as appropriate fixture filings, all in form and substance reasonably satisfactory to Agent (including being sufficient to grant Agent a first priority Lien (subject to Permitted
Liens) in and to the Real Property assets of such newly formed or acquired Subsidiary); and (b) provide to Agent all other documentation, including one or more opinions of counsel reasonably satisfactory to Agent, which, in its opinion, is
appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance, evidence of flood certification documentation (to the extent required) or other documentation with
respect to all Real Property owned in fee and subject to (or required hereunder to be subject to) a Mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 5.14 shall constitute a Loan Document. 

5.15.     Further Assurances. Borrower will, and will cause each of the other
Loan Parties to, at any time upon the reasonable request of Agent, execute or deliver, or cause to be executed or delivered to Agent any and all financing statements, fixture filings, security agreements, pledges, assignments, mortgages, deeds of
trust, opinions of counsel, and all other documents (the “Additional Documents”) that Agent may reasonably request in form and substance reasonably satisfactory to Agent, to create, perfect, and continue perfected or to better
perfect Agent’s Liens in all of the assets of Loan Parties (whether now owned or hereafter arising or acquired, tangible or intangible, real or personal), to create and perfect Liens in favor of Agent in any Real Property acquired by any Loan
Party with a fair market value in excess of $500,000, and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the maximum extent permitted by applicable law, if any Loan Party refuses
or fails to execute or deliver any reasonably requested Additional Documents within a reasonable period of time following the request to do so, Borrower, each Borrower and each other Loan Party hereby authorizes Agent to execute any such Additional
Documents in the applicable Loan Party’s name and authorizes Agent to file such executed Additional Documents 

  
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in any appropriate filing office. In furtherance of, and not in limitation of, the foregoing, each Loan Party shall take such actions as Agent may reasonably request from time to time to ensure
that the Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of each Loan Party, including all of the outstanding Equity Interests of Borrower and its Subsidiaries. Without limiting the generality of the
foregoing, the Borrower shall ensure that promptly, and in no event more than 15 days, following the Montrovest Merger, Montel Sàrl shall sign an acknowledgment and confirmation in respect of the Montrovest Subordination Agreement in form and
substance satisfactory to the Agent. 
 5.16.     Location of Inventory; Chief
Executive Office, Etc.. Borrower will, and will cause each other Loan Party to, keep its Inventory only at (or in-transit between or to) its locations identified on Schedule 4.23 and its chief executive office (and registered office)
only at the locations identified on Schedule 4.23; provided, that Administrative Borrower may amend Schedule 4.23 so long as such amendment occurs by written notice to Agent not less than 10 days, or such later date as Agent
agrees in its sole discretion, prior to the date on which such Inventory is moved to such new location or such chief executive office or registered office is relocated and so long as such new location is within continental Canada in the case of the
chief executive office and the registered office of a Loan Party. Furthermore, upon request, Borrower will provide the Agent with copies of all existing agreements, and promptly after execution thereof provide the Agent upon request with copies of
all future agreements, between a Loan Party and any landlord, warehouseman, processor, shipper, bailee or other Person that owns any premises at which any Collateral having an aggregate value of more than the Dollar Equivalent of $500,000 may be
kept or that otherwise may possess or handle any Collateral. 
 5.17.     Canadian
Compliance. In addition to and without limiting the generality of Section 5.11, with respect to any Canadian Pension Plan established after the Closing Date, Borrower will, and will cause each of its Subsidiaries to,
(a) comply with applicable provisions and funding requirements of the Income Tax Act (Canada) and applicable federal or provincial pension benefits legislation and other applicable laws with respect to all Canadian Pension Plans except
where the failure to do so would not reasonably be expected to result in a Material Adverse Effect and (b) furnish to Agent upon Agent’s written request such additional information about any Canadian Pension Plan for which Borrower or its
Subsidiaries would reasonably expect to incur any material liability. All employer or employee payments, contributions or premiums required to be remitted, paid to or in respect of Canadian statutory benefit plans that Borrower or any of its
Subsidiaries is required to participate in or comply with, including the Canada Pension Plan or Quebec Pension Plan as maintained by the Government of Canada or Province of Quebec, respectively, and plans administered pursuant to applicable
workplace safety insurance and employment insurance legislation will be paid or remitted by each such Person in accordance with the terms thereof, any agreements relating thereto and all applicable laws except (i) to the extent that any amount
so payable is subject to a Permitted Protest and a Canadian Priority Payable Reserve for such amount has been established (ii) for failures resulting from administrative oversight which are promptly remedied once Borrower or its Subsidiary
becomes aware thereof. 
 5.18.     Credit Card Notifications. Within 30
days of the Closing Date (or such later date as Agent may agree), deliver to the Agent copies of notifications (each, a “Credit Card Notification”) substantially in the form attached hereto as Exhibit C-2, or otherwise in
form and 

  
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substance reasonably acceptable to Agent, which have been executed on behalf of such Loan Party and delivered to such Loan Party’s Credit Card Issuers and Credit Card Processors listed on
Schedule 4.25. No Loan Party shall enter into any agreements with Credit Card Issuers or Credit Card Processors other than the ones expressly contemplated herein or in Section 4.25 unless Agent has received a copy of the Credit
Card Notification sent to such new or additional Credit Card Issuer or Credit Card Processor. 
 5.19.
    Sales Taxes. If requested by the Agent, the Borrower shall provide cash collateral in Canadian Dollars in order to secure the Borrower’s obligations for sales, harmonized sales, or goods and services
Tax which are past due. 
 5.20.     [Reserved]. 

5.21.     Lenders’ Meetings. Upon the request of any Agent or the
Required Lenders, participate in a meeting of the Agent and the Lenders once during each Fiscal Year to be held at the Borrower’s corporate offices (or at such other location as may be agreed to by the Borrower and the Agent) at such time as
may be agreed to by the Borrower and the Agent. 
  

	6.	 NEGATIVE COVENANTS. 

Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations: 

6.1.     Indebtedness. Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness. 

6.2.     Liens. Borrower will not, and will not permit any of its Subsidiaries
to, create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. 

6.3.     Restrictions on Fundamental Changes. Borrower will not, and will not
permit any of its Subsidiaries to, 
 (a)     other than in order to consummate a Permitted
Acquisition, enter into any merger, amalgamation, consolidation, reorganization, or recapitalization, or reclassify its Equity Interests, except for (i) any merger or amalgamation between Loan Parties; provided that Borrower must be the
survivor of any merger or amalgamation to which it is a party (or, in the case of an amalgamation, the continuing corporation resulting therefrom must be liable for the Obligations of Borrower under the Loan Documents), (ii) any merger or
amalgamation between a Loan Party (other than Borrower) and a Subsidiary of such Loan Party that is not a Loan Party so long as such Loan Party is the surviving entity of any such merger or amalgamation (or, in the case of an amalgamation, the
continuing corporation resulting therefrom) must be liable for the Obligations of such Loan Party under the Loan Documents and the priority of the Agent’s Liens on the Collateral is not affected thereby, and (iii) any merger or
amalgamation between Subsidiaries of Borrower that are not Loan Parties, 

  
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 (b)     liquidate, wind up, or dissolve itself (or suffer
any liquidation or dissolution), except for (i) the liquidation or dissolution of non-operating Subsidiaries of Borrower with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than
Borrower) or any of its wholly-owned Subsidiaries so long as all of the assets (including any interest in any Equity Interests) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or
dissolving, or (iii) the liquidation or dissolution of a Subsidiary of Borrower that is not a Loan Party (other than any such Subsidiary the Equity Interests of which (or any portion thereof) is subject to a Lien in favor of Agent) so long as
all of the assets of such liquidating or dissolving Subsidiary are transferred to a Subsidiary of Borrower that is not liquidating or dissolving, or 

(c)     suspend or cease operating a substantial portion of its or their business, except as permitted
pursuant to clauses (a) or (b) above or in connection with a transaction permitted under Section 6.4, 

6.4.     Disposal of Assets. Borrower will not, and will not permit any of its
Subsidiaries to, convey, sell, lease, license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey, sell, lease, license, assign, transfer, or otherwise dispose of) any of its or their assets other than (a) Permitted
Dispositions; (b) transactions expressly permitted by Sections 6.3 or 6.9; and (c) sales of equipment, furniture and fixtures in the ordinary course of business to a Person other than a Subsidiary that is not a Loan Party and
subject to compliance with Section 6.10, if applicable, provided the proceeds of such sales of equipment shall be applied to repay, subject to the Intercreditor Agreement, the Term Loan hereunder. 

6.5.     Nature of Business. Borrower will not, and will not permit any of its
Subsidiaries to, make any change in the nature of its or their business as described in Section 4.28 or Schedule 6.5 or acquire any properties or assets that are not reasonably related to the conduct of such business activities;
provided, that the foregoing shall not prevent Borrower and its Subsidiaries from engaging in any business that is reasonably related or ancillary to its or their business. 

6.6.     Prepayments and Amendments. Borrower will not, and will not permit
any of its Subsidiaries to, 
 (a)     Except in connection with Refinancing Indebtedness permitted by
Section 6.1, 
 (i)     make any payments in respect of the Montrovest Debt other than, so
long as no Default or Event of Default then exists or would (after taking into consideration the payment to be made) result therefrom and subject to the Montrovest Subordination Agreement, (x) regularly scheduled payments of interest in respect of
the Montrovest Debt as and when due pursuant to the Montrovest Debt Documents (y) the principal payments of US$1,250,000 on or about July 20, 2018 and US$1,250,000 on or about July 20, 2019 pursuant to the Montrovest Debt 2017 and (z) the fee
payment in an aggregate amount not to exceed $10,000 annually pursuant to the Montrovest Debt 2017. No other prepayment of, or payment of principal on, the Montrovest Debt may be made without the prior written consent of Agent in its sole
discretion, 

  
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unless the Restricted Payment Conditions are satisfied with respect to such prepayment or payment. 

(ii)     make any payment on account of Indebtedness (other than as permitted under paragraph (a)(i)
above) that has been contractually subordinated in right of payment to the Obligations if (A) such payment is not permitted at such time under the subordination terms and conditions applicable to such Indebtedness and, (B) where
applicable, the Restricted Payment Conditions have not been satisfied, 
 (b)     Directly or
indirectly, amend, modify, or change any of the terms or provisions of, or, in the case of (b)(i) only, waive any of its material rights under: 

(i)     The Revolving Loan Documents (except to the extent expressly permitted by the Intercreditor
Agreement), the Management Agreement (except to the extent expressly permitted by the Management Subordination Agreement), the Quebec Subordinated Debt Documents, the Montrovest Debt Documents (except to the extent expressly permitted by the
Montrovest Subordination Agreement) or any Additional Subordinated Debt Documents or any other agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness that is contractually subordinated in right of payment
to the Obligations; or 
 (ii)     the Governing Documents of any Loan Party or any of its Subsidiaries
if the effect thereof, either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of the Lenders. 

Each Loan Party shall deliver to Agent complete and correct copies of any amendment, restatement, supplement or other modification to or
waiver of the Management Agreement, the Quebec Subordinated Debt Documents, the Montrovest Debt Documents, any Additional Subordinated Debt Documents or Governing Documents. 

6.7.     Restricted Payments. Borrower will not, and will not permit any of
its Subsidiaries to, make any Restricted Payment; provided, that, so long as it is permitted by law, and, so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, 

(a)     Borrower may declare and pay distributions to the holders of its Equity Interests so long as the
Restricted Payment Conditions are satisfied and Administrative Borrower has delivered a certificate to Agent prior to the payment of any such distribution certifying satisfaction of the Restricted Payment Conditions, 

(b)     Loan Parties shall be permitted to make payments of principal and interest on Permitted
Intercompany Advances, 
 (c)     Borrower shall be permitted to pay Gestofi S.A. fees and expenses in
an aggregate amount not greater than US$300,000 for each calendar year for services provided to Borrower by employees of Gestofi S.A., as well as the amounts permitted to be paid pursuant to the Management Subordination Agreement, provided that no
Default or Event of Default shall have occurred and be continuing at the time of such payment or would result therefrom, 

  
 -36- 

 (d)     Borrower shall be permitted to, without duplication,
(i) pay to any of Regaluxe S.r.L., Montrovest or Gestofi S.A., an aggregate amount not to exceed US$300,000 in any Fiscal Year (or such greater amount to the extent consented to in writing by the Agent in its sole discretion) for expenses
incurred by any of Regaluxe S.r.L., Montrovest or Gestofi S.A. on behalf of (a) the Chairman of the Board of Directors of the Borrower in connection with carrying out his duties as Chairman of the Board of Directors of the Borrower in the
ordinary course of business and (b) the Chairman of the Executive Committee of the Borrower in connection with carrying out his duties as Chairman of the Executive Committee of the Borrower in the ordinary course of business, (ii) pay to
Niccolo Rossi, an aggregate amount not to exceed €225,000 in any calendar year for carrying out his duties as Chairman of the Board of Directors of the Borrower plus, an aggregate amount not to exceed EUR€60,000 in any calendar year for
carrying out his duties as Chairman of the Executive Committee of the Borrower and (iii) (x) pay Regaluxe S.r.L. a fee of not more than 3.5% of the total price of the goods sold to Regaluxe S.r.L. in the form of a discount (which fee shall
be payable to cover import duties and the carrying costs of value-added Taxes financing), and (y) reimburse Regaluxe S.r.L. for other reasonable costs and expenses incurred by Regaluxe S.r.L. in connection with the importation by Regaluxe
S.r.L. of goods of the Borrower and the subsequent sale of such goods by Regaluxe S.r.L. to certain Italian jewelry stores (so long as, to the extent requested by the Agent, the Agent is provided with satisfactory documentation supporting such fees,
costs and expenses), provided that in each case, no Default or Event of Default shall have occurred and be continuing at the time of such payment or would result therefrom, and 

(e)     Borrower shall be permitted to pay Carlo Coda Nunziante (i) up to an amount not greater than
EUR€150,000 in the aggregate per annum on account of consulting services provided to the Borrower, (ii) reimbursement of expenses in connection therewith and (iii) applicable taxes payable by Borrower in connection therewith. 

6.8.     Accounting Methods. Borrower will not, and will not permit any of its
Subsidiaries to, modify or change its Fiscal Year or its method of accounting (other than as may be required to conform to GAAP, subject to Section 1.2). 

6.9.     Investments. Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment except for Permitted Investments. 

6.10.     Transactions with Affiliates. Borrower will not, and will not permit
any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction with any Affiliate of Borrower or any of its Subsidiaries except for: 

(a)     transactions (other than the payment of management, consulting, monitoring, or advisory fees)
between Borrower or its Subsidiaries, on the one hand, and any Affiliate of Borrower or its Subsidiaries, on the other hand, so long as such transactions are no less favorable, taken as a whole, to Borrower or its Subsidiaries, as applicable, than
would be obtained in an arm’s length transaction with a non-Affiliate, provided, however the foregoing restrictions shall not apply to transactions between any Loan Party and any other Loan Party, 

  
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 (b)     so long as it has been approved by Borrower’s
or its applicable Subsidiary’s Board of Directors (or comparable governing body) in accordance with applicable law, any indemnity provided for the benefit of directors (or comparable managers), officers and employees of Borrower or its
applicable Subsidiary, 
 (c)     so long as it has been approved by Borrower’s or its applicable
Subsidiary’s Board of Directors (or comparable governing body) in accordance with applicable law, reasonable and customary fees, compensation, benefits and incentive arrangements paid or provided to, and indemnities provided on behalf of or to,
officers, directors or employees of Borrower (or any direct or indirect Borrower thereof) or any of Borrower’s Subsidiaries, 

(d)     transactions permitted by Section 6.3 or Section 6.7, or any Permitted
Intercompany Advance, 
 (e)     any transaction with an Affiliate otherwise permitted hereunder where
the only consideration paid by Borrower or any Subsidiary is Borrower’s Qualified Equity Interests, and 
 (f)
    loans or advances to directors, officers and employees permitted under Section 6.9. 

6.11.     Use of Proceeds. Borrower will not, and will not permit any of its
Subsidiaries to, use the proceeds of any Loan made hereunder for any purpose other than as contemplated in Section 2.3(c). 

6.12.     Limitation on Issuance of Equity Interests. Borrower will not, and
will not permit any of its Subsidiaries to issue or sell or enter into any agreement or arrangement for the issuance or sale of any of its Equity Interests, other than (a) the issuance or sale of Qualified Equity Interests by Borrower,
(b) the issuance and sale of Qualified Equity Interests by any Loan Party or any Subsidiary of a Loan Party to a Loan Party to which such Loan Party is a direct Subsidiary, (c) the issuance and sale of Qualified Equity Interests by any
Subsidiary that is not a Loan Party to another Subsidiary, (d) transfers and replacements of then-outstanding Equity Interests, provided that any such transfer or replacements do not (i) give rise to a Change of Control, (ii) include
any transfer of Equity Interests held by a Loan Party to a Person that is not a Loan Party (other than a Permitted Disposition) or (ii) include any transfer of Equity Interests from a Loan Party to a Person that is not a Loan Party (other than
a Permitted Disposition), (e) the issuance or sale of Qualified Equity Interests by any Person that is not a Loan Party, and (f) issuances of Qualified Equity Interests by a newly created Subsidiary to such Subsidiary’s direct parent
in accordance with the terms of the Agreement. 
 6.13.     Canadian Employee
Benefits. Borrower will not, and will not permit any of its Subsidiaries to: 
 (a)
    establish, maintain, sponsor, administer, contribute to, participate in or assume or incur any liability in respect of any Canadian Defined Benefit Plan or amalgamate with any Person if such Person, sponsors, administers,
contributes to, participates in or has any liability in respect of, any Canadian Defined Benefit Plan other than a Canadian Multi-Employer 

  
 -38- 

 
Plan, unless a Canadian Priority Payables Reserve for unremitted and due pension plan contributions or wind-up deficiency amounts has been established. 

(b)     terminate any Canadian Pension Plan in a manner, or take any other action with respect to any
Canadian Pension Plan, which would reasonably be expected to result in a Material Adverse Effect, or 
 (c)
    fail to make full payment when due of any amounts, under the provisions of any Canadian Pension Plan, any agreement relating thereto or applicable law if such failure would reasonably be expected to result in a Material
Adverse Effect. 
 6.14.     Sale and Leaseback Transactions. Borrower will
not, and will not permit any of its Subsidiaries to, become or remain liable as lessee or as a guarantor or other surety, directly or indirectly, with respect to any lease whereby it shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as the property being sold or transferred; provided
that a Borrower and its Subsidiaries may become and remain liable as lessee, guarantor or other surety with respect to any such lease if and to the extent that Borrower or any of its Subsidiaries would be permitted to enter into, and remain liable
under, such lease to the extent that the transaction would constitute a Permitted Sale Leaseback Transaction, assuming the sale and leaseback transaction constituted Indebtedness in a principal amount not to exceed the gross proceeds of the sale.

 6.15.     Negative Pledges. Borrower will not, and will not permit any of
its Subsidiaries to, enter into any agreement prohibiting the creation or assumption of any Lien upon any of its properties or assets, whether now owned or hereafter acquired, other than (a) this Agreement and the other Loan Documents,
(b) any agreements governing any Permitted Liens securing, Capitalized Lease Obligations or Permitted Purchase Money Indebtedness otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the
assets financed thereby), (c) the Revolving Loan Documents, (d) any provision limiting the disposition or distribution of assets or property in joint venture agreements and other similar agreements, which limitation is applicable only to
the assets that are the subject of such agreements to the extent such joint venture or similar agreement is permitted under this Agreement, (e) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered
into in connection with the disposition of all or substantially all of the Equity Interests or assets of such Subsidiary that applies only to the Equity Interests or assets of such Subsidiary, (f) customary provisions in leases, licenses and
other contracts restricting the assignment thereof, (g) any other agreement that does not restrict in any manner (directly or indirectly) Liens which may now or hereafter be created pursuant to any of the Loan Documents to secure any
Obligations, and (h) any prohibition that (i) exists pursuant to the requirements of applicable law, (ii) consists of customary restrictions and conditions contained in any agreement relating to any transaction permitted under
Section 6.3 or 6.4, (iii) restricts subletting or assignment of leasehold interests contained in any lease governing a leasehold interest of a Borrower or its Subsidiaries, (iv) exists in any agreement in effect at the
time such Subsidiary becomes a Subsidiary of Borrower, so long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary, (v) exists in any instrument governing Acquired Indebtedness, which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any 

  
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Person, other than the Person or the properties or assets of the Person so acquired or (vi) is imposed by any renewal, extension, refinancing, refund or replacement (or successive
extensions, renewals, refinancings, refunds or replacements) that are otherwise permitted by the Loan Documents or the contracts, instruments or obligations referred to in clause (b), (c), (d), (e), (f), (g), (h)(iv) or (h)(v) above; provided that
such renewals, extensions, refinancings, refunds or replacements (or successive extensions, renewals, refinancings, refunds or replacements), taken as a whole, are not more materially restrictive with respect to such prohibitions than those
contained in the original agreement, as determined in good faith by the Board of Directors of Borrower. 
 6.16.
    Restrictions on Subsidiary Distributions. Borrower will not, and will not permit any of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or
consensual restriction of any kind on the ability of any such Subsidiary to (i) pay dividends or make any other distributions on any of such Subsidiary’s Equity Interests owned by Borrower or any other Subsidiary Borrower, (ii) repay
or prepay any Indebtedness owed by such Subsidiary to Borrower or any other Subsidiary of Borrower, (iii) make loans or advances to Borrower or any other Subsidiary of Borrower, or (iv) transfer any of its property or assets to Borrower or
any other Subsidiary of Borrower, except in each case, encumbrances or restrictions (a) imposed by this Agreement and the other Loan Documents, (b) contained in an agreement with respect to a Permitted Disposition, (c) contained in
any agreements governing any Permitted Liens securing Capitalized Lease Obligations or Permitted Purchase Money Indebtedness otherwise permitted hereby (in which case, any encumbrance or restriction shall only be effective against the assets
financed thereby), (d) constituting customary restrictions in joint venture agreements and other similar agreements applicable to joint ventures permitted hereunder and applicable solely to such joint venture, (e) contained in any
agreement of a Subsidiary that is not a Loan Party governing Permitted Indebtedness, (f) contained in any instrument governing Acquired Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or assets
of any Person, other than the Person or the properties or assets of the Person so acquired, or (g) contained in, or existing by reasons of, any agreement or instrument (i) existing on the Closing Date, (ii) relating to property
existing at the time of the acquisition thereof, so long as the encumbrance or restriction relates only to the property so acquired, (iii) relating to any Indebtedness of, or otherwise to, any Subsidiary at the time such Subsidiary was merged,
amalgamated or consolidated with or into, or acquired by, a Borrower or a Subsidiary or became a Subsidiary and not created in contemplation thereof, (iv) effecting a renewal, extension, refinancing, refund or replacement (or successive
extensions, renewals, refinancings, refunds or replacements) of Indebtedness issued under an agreement referred to in clauses (c), (e), (f) and (g)(i) through (g)(iii) above, so long as the encumbrances and restrictions contained in any such
renewal, extension, refinancing, refund or replacement agreement, taken as a whole, are not materially more restrictive than the encumbrances and restrictions contained in the original agreement, as determined in good faith by the Board of Directors
of Borrower, (v) constituting customary provisions restricting subletting or assignment of any leases of a Borrower or any Subsidiary or provisions in agreements that restrict the assignment of such agreement or any rights thereunder,
(vi) constituting restrictions on the sale or other disposition of any property securing Indebtedness as a result of a Lien on such property permitted hereunder, (vii) constituting restrictions on net worth or on cash or other deposits
imposed by customers under contracts entered into in the ordinary course of business, (viii) constituting provisions contained in agreements or instruments relating to Indebtedness permitted hereunder that

  
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prohibit the transfer of all or substantially all of the assets of the obligor under that agreement or instrument unless the transferee assumes the obligations of the obligor under such agreement
or instrument, or (ix) constituting any encumbrance or restriction with respect to property under a lease or other agreement that has been entered into for the employment or use of such property. 

6.17.     Business Activities; Permitted Store Closings. Borrower will not, and will not
permit any of its Subsidiaries to (a) engage directly or indirectly (whether through the Subsidiaries or otherwise) in any type of business other than the businesses conducted by the Loan Parties on the Closing Date and in related businesses,
(b) execute, alter, modify, or amend any lease; provided, however, that the Loan Parties may (i) alter, modify or amend any lease in a manner which is not detrimental to the Loan Parties so long as any such alteration,
modification or amendment does not adversely affect any rights of the Agents or the Lenders hereunder and (ii) the Loan Parties may terminate the leases on the retail locations which constitute a Permitted Store Closing, or (c) except as
provided in clause (b) hereof, commit to close any location at which a Loan Party maintains, offers for sales, or stores any of the Collateral. 

6.18.     Margin Regulations. Borrower will not, and will not permit any of its Subsidiaries
to, use all or any portion of the proceeds of the Term Loan to purchase or carry margin stock (within the meaning of Regulation U of the Federal Reserve Board) in contravention of Regulation U of the Federal Reserve Board. 

6.19.     No Speculative Transactions. Borrower will not, and will not permit any of its
Subsidiaries to, engage in any transaction involving commodity options, futures contracts or similar transactions other than Secured Hedging Agreements. 

6.20.     Amendment of Rolex Canada Documents. Borrower will not, and will not permit any of
its Subsidiaries to, amend any provision of any Rolex Canada Document in a manner adverse to the Agent and the other Secured Parties without the prior written consent of the Agent. 

6.21.     [Reserved]. 

6.22.     Anti-layering. Notwithstanding the foregoing, neither a Loan Party nor any
Subsidiary of a Loan Party will create or incur any Indebtedness which is contractually subordinated or junior in right of payment to any other Indebtedness of the Loan Parties, unless such Indebtedness is also subordinated or junior in right of
payment, in the same manner and to the same extent, to the Obligations. 
 7.
        [RESERVED]. 
 8.
        EVENTS OF DEFAULT. 
 Any one or more of the following events
shall constitute an event of default (each, an “Event of Default”) under this Agreement: 
 8.1.
    Payments. If Borrower fails to pay when due and payable, or when declared due and payable, (a) all or any portion of the Obligations consisting of interest, fees, or charges due to the Lender Group,
reimbursement of Lender Group Expenses, or other amounts (other than 

  
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any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed
or allowable in whole or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period of (x) 1 Business Day for failure to pay interest and (y) 3 Business Days for failure to pay any other amounts due
under clause (a) hereof, and (b) all or any portion of the principal of the Term Loan. 
 8.2.
     Covenants. If any Loan Party or any of its Subsidiaries: 

(a)       fails to perform or observe any covenant or other agreement contained in any of
(i) Sections 3.5, 5.1, 5.2, 5.3 (solely to the extent that the Borrower is not in good standing in its jurisdiction of organization), 5.6, and 5.10 (solely if Borrower refuses to allow Agent or its
representatives or agents to visit Borrower’s properties, inspect its assets or books or records, examine and make copies of its books and records, or discuss Borrower’s affairs, finances, and accounts with officers and employees of
Borrower), (ii) Section 6, (iii) Section 7, or (iv) Section 7 of the Canadian Security Agreement; 

(b)       fails to perform or observe any covenant or other agreement contained in any of
Sections 5.3 (other than if Borrower is not in good standing in its jurisdiction of organization), 5.4, 5.5, 5.11, 5.14, 5.15, 5.16 and such failure continues for a period of 15 days after the earlier
of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to Administrative Borrower by Agent; or 

(c)       fails to perform or observe any covenant or other agreement contained in this
Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of another provision of this Section 8 (in which event such other provision of this Section 8 shall
govern), and such failure continues for a period of 30 days after the earlier of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to
Administrative Borrower by Agent; 
 8.3.      Judgments. If one or more judgments,
requirements to pay, orders, or awards for the payment of money, or requirements to pay money, involving an aggregate amount of $1,000,000, or more (except to the extent fully covered (other
than to the extent of customary deductibles) by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any of their respective assets, and either
(a) there is a period of 45 consecutive days at any time after the entry of any such judgment, order, or award during which (1) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (2) a stay of enforcement
thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment, order, or award; 
 8.4.
    Voluntary Bankruptcy, etc. If an Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries; 

8.5.     Involuntary Bankruptcy, etc. If an Insolvency Proceeding is commenced against a
Loan Party or any of its Subsidiaries and any of the following events occur: (a) such 

  
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Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted,
(c) the petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or
assets of, or to operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein; 

8.6.     Default Under Other Agreements. If there is (a) a breach or default in one or
more agreements to which a Loan Party or any of its Subsidiaries is a party with one or more third Persons relative to a Loan Party’s or any of its Subsidiaries’ Indebtedness involving an aggregate amount of $1,000,000 or more, and
such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party’s or its Subsidiary’s
obligations thereunder, or (b) a default in or an involuntary early termination of one or more Hedge Agreements to which a Loan Party or any of its Subsidiaries is a party involving an aggregate Hedge Termination Value of $1,000,000 or
more, beyond any grace period provided therefor; 
 8.7.     Default under Revolving Loan
Documents. If there is (i) any breach or default of a Loan Party or any of its Subsidiaries occurs under any of the Revolving Loan Documents (or any documents relating to renewals, refinancings and extensions of the Debt incurred
thereunder) or any Secured Hedging Agreement or (ii) any such Debt shall become or be declared to be due and payable, or be required to be prepaid or repurchased (other than by a regularly scheduled or required prepayment), prior to the stated
maturity thereof; provided that such breach or default shall be deemed continuing hereunder until the Agents or the Required Lenders have expressly waived such breach or default in writing, notwithstanding the fact that such breach or default
may have been waived under the terms of the Revolving Loan Documents or any Secured Hedging Agreement; 

8.8.     Subordinated Debt Documents. (i) the earlier of (A) receipt by a Loan
Party or any of its Subsidiaries of notice from any applicable party under any of the Rolex Canada Documents, the Quebec Subordinated Debt Documents, the Montrovest Debt Documents or the Additional Subordinated Debt Documents of the occurrence and
continuance of a payment default or the occurrence of a payment default under any of such agreements which has continued for fifteen (15) days or (B) any other material breach or default of a Loan Party or any of its Subsidiaries occurs
under any of the Rolex Canada Documents, the Quebec Subordinated Debt Documents, the Montrovest Debt Documents or the Additional Subordinated Debt Documents (or any documents relating to renewals, refinancings and extensions of the Debt incurred
thereunder) or (ii) any such Debt shall become or be declared to be due and payable, or be required to be prepaid or repurchased (other than by a regularly scheduled or required prepayment), prior to the stated maturity thereof; 

8.9.     Compliance Certificate; Borrowing Base Certificate; Representations. If
(i) any information contained in any Compliance Certificate or Borrowing Base Certificate was untrue or incorrect in any material respect when made or (ii) any representation or warranty made or delivered to the Agent or any Lender by any
Loan Party herein, in connection with any Loan Document or transaction contemplated thereby, or in any written statement, report, 

  
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financial statement or certificate (other than a Borrowing Base Certificate or Compliance Certificate) is untrue, incorrect or misleading in any material respect when given or confirmed (except
that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof). 

8.10.     Guarantee. If the obligation of any Guarantor under the guarantee of any of the
Obligations (including any guarantee contained in any Loan Document) is limited in any material respect or terminated by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement); 

8.11.     Security Documents. If any Canadian Security Document or any other Loan Document
that purports to create a Lien, shall, for any reason, fail or cease to create a valid and perfected (to the extent required thereby) and, except to the extent of Permitted Liens which are non-consensual Permitted Liens, permitted Purchase Money
Liens, the interests of lessors under Capital Leases, subject to the Intercreditor Agreement, first priority Lien on the Collateral covered thereby, except (a) as a result of a disposition of the applicable Collateral in a transaction permitted
under this Agreement, or (b) as the result of an action or failure to act on the part of Agent; 

8.12.     Loan Documents. The validity or enforceability of any Loan Document shall at any
time for any reason (other than solely as the result of an action or failure to act on the part of Agent) be declared to be null and void, or a proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority
having jurisdiction over a Loan Party or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or obligation
purported to be created under any Loan Document; 
 8.13.      Change of Control. A Change
of Control shall occur, whether directly or indirectly; or 
 8.14.     Material Damage or
Loss. There shall occur any material damage to, or loss, theft or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty, which in
any such case causes, for more than 5 consecutive days, the cessation or substantial curtailment of revenue producing activities at more than 5 retail locations not covered by business interruption insurance. 

9.         RIGHTS AND REMEDIES. 

9.1.      Rights and Remedies. Upon the occurrence and during the continuation of an
Event of Default, Agent may, and, at the instruction of the Required Lenders, shall (in each case under clauses (a) or (b) by written notice to Administrative Borrower), in addition to any other rights or remedies provided for hereunder or
under any other Loan Document or by applicable law, do any one or more of the following: 
 (a)
    declare the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations, whether evidenced by this Agreement or by any of the other Loan Documents to be immediately
due and payable, whereupon the same 

  
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shall become and be immediately due and payable and Borrower shall be obligated to repay all of such Obligations in full, without presentment, demand, protest, or further notice or other
requirements of any kind, all of which are hereby expressly waived by Borrower; and 
 (b)     exercise
all other rights and remedies available to Agent or the Lenders under the Loan Documents, under applicable law, or in equity. 
 The
foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section 8.4 or Section 8.5, in addition to the remedies set forth above, without any notice to Borrower or any other Person
or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations, inclusive of the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations, whether
evidenced by this Agreement or by any of the other Loan Documents, shall automatically become and be immediately due and payable and Borrower shall automatically be obligated to repay all of such Obligations in full, without presentment, demand,
protest, or notice or other requirements of any kind, all of which are expressly waived by Borrower. 
 9.2.
    Remedies Cumulative. The rights and remedies of the Lender Group under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and
remedies not inconsistent herewith as provided under the PPSA, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a
continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it. 
 10.
      WAIVERS; INDEMNIFICATION. 
 10.1.     Demand; Protest;
etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel
paper, and guarantees at any time held by the Lender Group pursuant to the Loan Documents on which Borrower may in any way be liable. 

10.2.     The Lender Group’s Liability for Collateral. Borrower hereby agrees that:
(a) so long as Agent complies with its obligations, if any, under the PPSA, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring
or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or
destruction of the Collateral shall be borne by Borrower. 
 10.3.     Indemnification.
Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and
all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable and documented out-of-pocket fees and disbursements of attorneys, experts, or consultants and all other costs and
expenses actually incurred in connection therewith 

  
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or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought but without duplication of any losses, costs and expenses
as to which a Borrower is liable to such Indemnified Person pursuant to Section 2.7 or Article 16), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to
the execution and delivery (provided that Borrower shall not be liable for costs and expenses (including lawyers’ fees) of any Lender (other than Crystal Financial LLC) incurred in advising, structuring, drafting, reviewing, administering or
syndicating the Loan Documents), enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the
monitoring of Borrower’s and its Subsidiaries’ compliance with the terms of the Loan Documents (provided, that the indemnification in this clause (a) shall not extend to (i) disputes solely between or among the Lenders
that do not involve any acts or omissions of any Loan Party, or (ii) disputes solely between or among the Lenders and their respective Affiliates that do not involve any acts or omissions of any Loan Party; it being understood
and agreed that the indemnification in this clause (a) shall extend to Agent (but not the Lenders) relative to disputes between or among Agent on the one hand, and one or more Lenders, or one or more of their Affiliates, on the other hand, or
(iii) any Taxes or any costs attributable to Taxes, which shall be governed by Section 16 except to the extent arising from primarily a non-Tax claim), (b) with respect to any actual or prospective investigation,
litigation, or proceeding related to this Agreement, any other Loan Document, the making of any Loans hereunder, or the use of the proceeds of the Loans or the Letters of Credit provided hereunder (irrespective of whether any Indemnified
Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or
properties owned, leased or operated by Borrower or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities or Remedial Actions related in any way to any such assets or properties of Borrower or any of its Subsidiaries (each
and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrower shall not have any obligation to any Indemnified Person under this Section 10.3 with respect to any
Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person or its officers, directors, employees, lawyers, or agents. This provision
shall survive the termination of this Agreement and the repayment in full of the Obligations. If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower were required to
indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH
INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 

10.4.     Subordination; Subrogation. Until the payment in full of all of the Obligations,
the Borrower agrees not to exercise, and the Borrower hereby waives, any rights against any other Loan Party as a result of payment by such Borrower hereunder by way of subrogation, reimbursement, restitution, contribution or otherwise, and the
Borrower will not prove any claim in competition with any Agent or any Lender in respect of any payment hereunder in any 

  
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proceedings of any nature in any Insolvency Proceeding; the Borrower will not claim any set-off, recoupment or counterclaim against any other Loan Party in respect of any liability of a Loan
Party to any other Loan Party; and the Borrower waives any benefit of and any right to participate in any Collateral which may be held by the Agent or any Lender. The Borrower agrees that, after the occurrence and during the continuance of any
Default or Event of Default, the Borrower will not demand, sue for or otherwise attempt to collect any Debt of any other Loan Party to the Borrower until payment in full of all of the Obligations. If, notwithstanding the foregoing sentence, the
Borrower shall collect, enforce or receive any amounts in respect of the Debt of any other Loan Party in violation of the foregoing sentence while any Obligations of such other Loan Party are still outstanding or while any Commitments are
outstanding, such amounts shall be collected, enforced and received by such Borrower as trustee for the Agent and the Lenders and be paid over to the Agent, for the benefit of the Agent and the Lenders on account of the Obligations of the Borrower
without affecting in any manner the liability of the Borrower under the other provisions hereof. The provisions of this section shall survive the expiration or termination of this Agreement and the other Loan Documents. 

11.      NOTICES. 

Unless otherwise provided in this Agreement, all notices or demands relating to this Agreement or any other Loan Document
shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt
requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile. In the case of notices or demands to Borrower or Borrower or Agent, as the case may be, they shall be sent to
the respective address set forth below: 
  

			
	 If to Borrower or Administrative Borrower:
	  	 Birks Group Inc.

2020 Robert-Bourassa Blvd., Suite 200

Montreal, Quebec H3A 2A5

Attn: Chief Financial Officer

Fax No.:         514-397-2537

Email: pdilillo@birksgroup.com

		
	 with copies to:
	  	 Birks Group Inc.

2020 Robert-Bourassa Blvd., Suite 200

Montreal, Quebec H3A 2A5
 Attn:
General Counsel
 Fax No.:         514-397-2537

Email: mmelfi@birksgroup.com

  
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	 If to Agent:
	  	 Crystal Financial LLC

Two International Place, 17th Floor

Boston, MA 02110 USA
 Attn:
Rebecca E. Tarby
 Fax No.:         617-428-8701

Email:rtarby@crystalfinco.com
  

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

Proskauer Rose LLP
 One
International Place
 Boston, MA 02110 USA

Attn: Peter J. Antoszyk, Esq.
 Fax
No.:         617-526-9899
 Email:pantoszyk@proskauer.com

 Any party hereto may change the address at which they are to receive notices hereunder, by notice in writing
in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 11, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the
mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient) and (c) notices by electronic mail shall be deemed received upon the sender’s receipt of an
acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return email or other written acknowledgment). 

Each Loan Party hereby authorizes the Agent and the Lenders (but they shall have no obligation) to respond to usual and customary credit
inquiries from third parties concerning any Loan Party or any Subsidiary. 
  

	12.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION. 

(a)     THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE
CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER
OR RELATED HERETO OR THERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH

  
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THE LAWS OF THE PROVINCE OF ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN. 

(b)       THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE PROVINCE OF ONTARIO; PROVIDED, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF
ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b). 

(c)       TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND EACH MEMBER OF THE
LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A “CLAIM”). BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

(d)       BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE COURTS LOCATED IN THE PROVINCE OF ONTARIO, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

(e)       NO CLAIM MAY BE MADE BY ANY LOAN PARTY AGAINST AGENT, ANY SWING LENDER, ANY OTHER
LENDER, OR ANY AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, 

  
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CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES 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 OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH LOAN PARTY HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR
NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 
 13.       ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

 13.1.     Assignments and Participations. 

(a)    (i)     Subject to the conditions set forth in clause (a)(ii) below, any
Lender may assign and delegate all or any portion of its rights and duties under the Loan Documents (including the Obligations owed to it and its Commitment) to one or more assignees so long as such prospective assignee is an Eligible Transferee
(each, an “Assignee”), with the prior written consent (such consent not to be unreasonably withheld or delayed) of: 

(A)     Administrative Borrower; provided, that no consent of Administrative Borrower shall be
required (1) if an Event of Default has occurred and is continuing, or (2) in connection with an assignment to a Person that is a Lender or an Affiliate (other than natural persons) of a Lender or a Related Fund; provided
further, that Administrative Borrower shall be deemed to have consented to a proposed assignment unless it objects thereto by written notice to Agent within 10 Business Days after having received notice thereof; and 

(B)     Agent; provided that no such consent shall be required in connection with an assignment to a
Person that is a Lender or an Affiliate of a Lender (other than a natural person). 
 (ii)
    Assignments shall be subject to the following additional conditions: 
 (A)
    no assignment may be made to a natural person, 
 (B)     no assignment may be
made to a Loan Party or an Affiliate of a Loan Party, 
 (C)     the amount of the Commitments and the
other rights and obligations of the assigning Lender hereunder and under the other Loan Documents subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to Agent) shall
be in a minimum amount (unless waived by Agent) of $5,000,000 (except such minimum amount shall not apply to (I) an assignment or delegation by any Lender to any other Lender, an Affiliate of any Lender, or a Related Fund of such Lender or
(II) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000), 

  
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 (D)     each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement, 

(E)     the parties to each assignment shall execute and deliver to Agent an Assignment and Acceptance;
provided, that Borrower and Agent may continue to deal solely and directly with the assigning Lender in connection with the interest so assigned to an Assignee until written notice of such assignment, together with payment instructions,
addresses, and related information with respect to the Assignee, have been given to Administrative Borrower and Agent by such Lender and the Assignee, 

(F)     unless waived by Agent, the assigning Lender or Assignee has paid to Agent, for Agent’s
separate account, a processing fee in the amount of $3,500, and 
 (G)     the Assignee, if it is not a
Lender, shall deliver to Agent an Administrative Questionnaire in a form approved by Agent (the “Administrative Questionnaire”), and 

(b)     From and after the date that Agent receives the executed Assignment and Acceptance and, if
applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall be a
“Lender” and shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3) and be released from any future obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or
the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto); provided, that nothing contained herein shall release any
assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under Section 15 and Section 17.8(a). 

(c)     By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the
Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan
Document furnished pursuant hereto, (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any
of its obligations under this Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such Assignee will, 

  
 -51- 

 
independently and without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement and the other Loan Documents as are delegated to
Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed
by it as a Lender. 
 (d)     Immediately upon Agent’s receipt of the required processing fee, if
applicable, and delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the
resulting adjustment of the Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 

(e)     Any Lender may at any time sell to one or more commercial banks, financial institutions, or other
Persons (a “Participant”) participating interests in all or any portion of its Obligations, its Commitment, and the other rights and interests of that Lender (the “Originating Lender”) hereunder and under the other
Loan Documents; provided, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations, the
Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under this Agreement shall remain
unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender in connection
with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the right to approve any amendment
to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final
maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or substantially all of
the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of,
the interest or fees payable to such Participant through such Lender (other than a waiver of default interest), or (E) decreases the amount or postpones the due dates of scheduled principal repayments or prepayments or premiums payable to such
Participant through such Lender, (v) no participation shall be sold to a natural person, (vi) no participation shall be sold to a Loan Party or an Affiliate of a Loan Party, and (vii) all amounts payable by Borrower hereunder shall be
determined as if such Lender had not sold such participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default,
each Participant shall be deemed to have the right of set off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were

  
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owing directly to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no
Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrower, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to
participate directly in the making of decisions by the Lenders among themselves. 
 (f)     In
connection with any such assignment or participation or proposed assignment or participation or any grant of a security interest in, or pledge of, its rights under and interest in this Agreement, a Lender may, subject to the provisions of
Section 17.8, disclose all documents and information which it now or hereafter may have relating to Borrower and its Subsidiaries and their respective businesses. 

(g)     Any other provision in this Agreement notwithstanding, any Lender may at any time create a
security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of the Bank of Canada and the Bank of Canada may enforce such pledge or security interest in any manner permitted under applicable law.

 (h)     Agent (acting solely for this purpose as a non-fiduciary agent on behalf of Borrower) shall
maintain, or cause to be maintained, a register (the “Register”) on which it enters the name and address of each Lender as the registered owner of the Commitments (and the principal amount thereof and stated interest thereon) held
by such Lender (each, a “Registered Loan”). Other than in connection with an assignment by a Lender of all or any portion of its portion of the Commitments to an Affiliate of such Lender or a Related Fund of such Lender (i) a
Registered Loan (and the registered note, if any, evidencing the same) may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register (and each registered note shall expressly so provide) and
(ii) any assignment or sale of all or part of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by registration of such assignment or sale on the Register, together with the surrender of the
registered note, if any, evidencing the same duly endorsed by (or accompanied by a written instrument of assignment or sale duly executed by) the holder of such registered note, whereupon, at the request of the designated assignee(s) or
transferee(s), one or more new registered notes in the same aggregate principal amount shall be issued to the designated assignee(s) or transferee(s). Prior to the registration of assignment or sale of any Registered Loan (and the registered note,
if any evidencing the same), Borrower shall treat the Person in whose name such Registered Loan (and the registered note, if any, evidencing the same) is registered as the owner thereof for the purpose of receiving all payments thereon and for all
other purposes, notwithstanding notice to the contrary. In the case of any assignment by a Lender of all or any portion of its Commitments to an Affiliate of such Lender or a Related Fund of such Lender, and which assignment is not recorded in the
Register, the assigning Lender, on behalf of Borrower, shall maintain a register comparable to the Register. 
 (i)
    In the event that a Lender sells participations in the Registered Loan, such Lender, acting solely for this purpose as a non-fiduciary agent on behalf of Borrower, shall maintain (or cause to be maintained) a register on
which it enters the name of all participants in the Registered Loans held by it (and the principal amount (and stated interest thereon) of the portion of such Registered Loans that is subject to such participations) (the “Participant 

  
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Register”). A Registered Loan (and the registered note, if any, evidencing the same) may be participated in whole or in part only by registration of such participation on the
Participant Register (and each registered note shall expressly so provide). Any participation of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by the registration of such participation on the
Participant Register. For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register. 

(j)     Agent shall make a copy of the Register (and each Lender shall make a copy of its Participant
Register to the extent it has one) available for review by Borrower from time to time as Borrower may reasonably request. 

13.2.     Successors. This Agreement shall bind and inure to the benefit of
the respective successors and assigns of each of the parties; provided, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent and any prohibited assignment shall be
absolutely void ab initio. No consent to assignment by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to
Section 13.1 and, except as expressly required pursuant to Section 13.1, no consent or approval by Borrower is required in connection with any such assignment. 

 

	14.	 AMENDMENTS; WAIVERS. 

14.1.     Amendments and Waivers. 

(a)     No amendment, waiver or other modification of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure by Borrower or any other Loan Party therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the written request of the Required
Lenders) and the Loan Parties that are party thereto and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, that no such waiver, amendment, or consent
shall, unless in writing and signed by all of the Lenders directly and adversely affected thereby and in the case of an amendment, all of the Loan Parties that are party thereto, do any of the following: 

(i)     increase the amount of or extend the expiration date of any Commitment of any Lender, 

(ii)     postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees, or other amounts due hereunder or under any other Loan Document, provided, however, that, notwithstanding anything to the contrary in this Agreement, any waiver (or amendment to the terms) of any mandatory
prepayment of the Term Loan pursuant to Section 2.3 shall be effective when signed or consented to by the Required Lenders and Agent, 

(iii)     reduce the principal of, or the rate of interest on, any Loan or other extension of credit
hereunder, or reduce any fees or other amounts payable hereunder or under 

  
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any other Loan Document (except in connection with the waiver of applicability of Section 2.3 (which waiver shall be effective with the written consent of the Required Lenders, 

(iv)     amend, modify, or eliminate this Section or any provision of this Agreement providing for
consent or other action by all Lenders, 
 (v)     amend, modify, or eliminate Section 3.1,

 (vi)     amend, modify, or eliminate Section 15.10, 

(vii)     other than as permitted by Section 15.10, release Agent’s Lien in and to any
of the Collateral, 
 (viii)     amend, modify, or eliminate the definitions of “Required
Lenders”, “Supermajority Lenders” or “Pro Rata Share”, 
 (ix)
    contractually subordinate any of Agent’s Liens (other than in respect of Permitted Liens securing the Revolving Loan Debt, Capital Leases or Permitted Purchase Money Indebtedness permitted hereunder), 

(x)     other than in connection with a merger, amalgamation, liquidation, dissolution or sale of such
Person expressly permitted by the terms hereof or the other Loan Documents, release Borrower or any Guarantor from any obligation for the payment of money or consent to the assignment or transfer by Borrower or any Guarantor of any of its rights or
duties under this Agreement or the other Loan Documents, or 
 (xi)     amend, modify, or eliminate any
of the provisions of Section 13.1 with respect to assignments to, or participations with, Persons who are Loan Parties or Affiliates of Loan Parties; 

(b)     No amendment, waiver, modification, or consent shall amend, modify, waive, or eliminate, 

(i)     the definition of, or any of the terms or provisions of, the Fee Letter, without the written
consent of Agent and Borrower (and shall not require the written consent of any of the Lenders), or 
 (ii)
    any provision of Section 15 pertaining to Agent, or any other rights or duties of Agent under this Agreement or the other Loan Documents, without the written consent of Agent, Borrower, and the Required Lenders;

 (c)     No amendment, waiver, modification, elimination, or consent shall amend, without written
consent of Agent, Borrower and the Supermajority Lenders, modify, or eliminate the definition of Borrowing Base or any of the defined terms (including the definitions of Eligible Accounts, Eligible Credit Card Receivables and Eligible Inventory that
are used in such definition to the extent that any such change results in more credit being made available to Borrower based upon the Borrowing Base, but not otherwise, or the definition of Maximum Credit Amount; and 

  
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 (d)     Anything in this Section 14.1 to the
contrary notwithstanding, (i) any amendment, modification, elimination, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the
Lender Group among themselves, and that does not affect the rights or obligations of Borrower, shall not require consent by or the agreement of any Loan Party, and (ii) any amendment, waiver, modification, elimination, or consent of or with
respect to any provision of this Agreement or any other Loan Document may be entered into without the consent of, or over the objection of, any Defaulting Lender other than any of the matters governed by Section 14.1(a)(i) through
(iii) that affect such Lender. 
 14.2.     Replacement of Certain Lenders. 

(a)     If (i) any action to be taken by the Lender Group or Agent hereunder requires the consent,
authorization, or agreement of the Required Lenders, the Supermajority Lenders or all Lenders directly and adversely affected thereby and if such action has received the consent, authorization, or agreement of the Required Lenders but not of all
Lenders, the Supermajority Lenders but not of all Lenders or all Lenders affected thereby, or (ii) any Lender makes a claim for compensation under Section 16, then Borrower or Agent, upon at least 5 Business Days prior irrevocable
notice, may permanently replace any Lender that failed to give its consent, authorization, or agreement (a “Non-Consenting Lender”), together with its Affiliates, or any Lender that made a claim for compensation (a “Tax
Lender”), together with its Affiliates, with one or more Replacement Lenders, and the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall have no right to refuse to be replaced hereunder. Such
notice to replace the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall specify an Closing Date for such replacement, which date shall not be later than 15 Business Days after the date such notice is
given. 
 (b)     Prior to the Closing Date of such replacement, the Non-Consenting Lender (and its
Affiliates) or Tax Lender (and its Affiliates), as applicable, and each Replacement Lender shall execute and deliver an Assignment and Acceptance, subject only to the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as
applicable, being repaid in full its share of the outstanding Obligations (without any premium or penalty of any kind whatsoever, but including (i) all interest, fees and other amounts that may be due in payable in respect thereof, and
(ii) an assumption of its Pro Rata Share of participations in the Letters of Credit). If the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall refuse or fail to execute and deliver any such
Assignment and Acceptance prior to the Closing Date of such replacement, Agent may, but shall not be required to, execute and deliver such Assignment and Acceptance in the name or and on behalf of the Non-Consenting Lender (and its Affiliates) or
Tax Lender (and its Affiliates), as applicable, and irrespective of whether Agent executes and delivers such Assignment and Acceptance, the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall be deemed
to have executed and delivered such Assignment and Acceptance. The replacement of any Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall be made in accordance with the terms of
Section 14.2. Until such time as one or more Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights and obligations of the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its
Affiliates), 

  
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as applicable, hereunder and under the other Loan Documents, the Non-Consenting Lender (and its Affiliates) or Tax Lender (and its Affiliates), as applicable, shall remain obligated to make the
Non-Consenting Lender’s (and its Affiliates’) or Tax Lender’s (and its Affiliates’), as applicable, Pro Rata Share of the Term Loan. 

14.3.     No Waivers; Cumulative Remedies. No failure by Agent or any Lender
to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in
writing, and then only to the extent specifically stated. No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict performance by Borrower of any provision of
this Agreement. Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have. 

 

	15.	 AGENT; THE LENDER GROUP. 

15.1.     Appointment and Authorization of Agent. Each Lender hereby
designates and appoints Crystal Financial LLC as its agent under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents on its behalf and to take such
other action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto. Without limiting the generality of the foregoing, the Lenders hereby irrevocably authorize the Agent to enter into the Intercreditor Agreement and agree to be bound by the provisions
thereof. Agent agrees to act as agent for and on behalf of the Lenders on the conditions contained in this Section 15. Any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document notwithstanding,
Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Loan Documents, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent. Without limiting the generality of the foregoing, the use of the term “agent” in this
Agreement or the other Loan Documents with reference to Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only a representative relationship between independent contracting parties. Each Lender hereby further authorizes Agent to act as the secured party under each of the Loan Documents that create a
Lien on any item of Collateral. Except as expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from
taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides
rights or powers to Agent, Lenders agree that Agent shall have the right to exercise the following powers as long as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records
reflecting the status of the Obligations, the Collateral, payments 

  
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and proceeds of Collateral, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs
of claim, notices and other written agreements with respect to the Loan Documents, (c) exclusively receive, apply, and distribute payments and proceeds of the Collateral as provided in the Loan Documents, (d) perform, exercise, and enforce
any and all other rights and remedies of the Lender Group with respect to Borrower or its Subsidiaries, the Obligations, the Collateral, or otherwise related to any of same as provided in the Loan Documents, and (e) incur and pay such Lender
Group Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 

15.2.     Liability of Agent. None of the Agent-Related Persons shall
(a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct),
or (b) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or in
any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related
Person shall be under any obligation to any Lenders 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 books and
records or properties of Borrower or its Subsidiaries. 
 15.3.     Reliance by
Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or
telephone message, statement or other document or conversation believed by it 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 counsel to
Borrower or counsel to any Lender), independent accountants and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first
receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it deems advisable. If Agent so requests, it shall first be indemnified to its reasonable
satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 

15.4.     Notice of Default or Event of Default. Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for the account of the Lenders and, except with respect to Events
of Default of which Agent has 

  
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actual knowledge, unless Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default or Event of Default, and stating that such notice
is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender
promptly shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to its Participants, if any. Subject to Section 15.3, Agent shall take such action with respect to
such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 9; provided, that unless and until Agent has received any such request, 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. 

15.5.     Credit Decision. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or
warranty by any Agent-Related Person to any Lender. Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such due diligence, documents and information as it has deemed
appropriate, made its own appraisal of an investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document, and all applicable bank
regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower. Each Lender also represents that it will, independently and without reliance upon any
Agent-Related Person 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 the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document.
Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or creditworthiness of Borrower or any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons. Each Lender acknowledges that Agent
does not have any duty or responsibility, either initially or on a continuing basis (except to the extent, if any, that is expressly specified herein) to provide such Lender with any credit or other information with respect to Borrower, its
Affiliates or any of their respective business, legal, financial or other affairs, and irrespective of whether such information came into Agent’s or its Affiliates’ or representatives’ possession before or after the date on which such
Lender became a party to this Agreement. 
 15.6.     Costs and Expenses;
Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents,
including court costs, legal fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or
insurance premiums paid to maintain the Collateral, 

  
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whether or not Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient
amounts from payments or proceeds of the Collateral received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not reimbursed for such costs and expenses
by Borrower or its Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender’s ratable thereof. Whether or not the transactions contemplated hereby are consummated, each of the Lenders, on a ratable
basis, shall indemnify and defend the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so) from and against any and all Indemnified Liabilities; provided,
that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the
obligations of any Defaulting Lender in failing to make an extension of credit hereunder. Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such Lender’s ratable share of any costs or out of pocket expenses
(including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or any other Loan Document to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this
Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent. 

15.7.     Crystal Financial LLC in Individual Capacity. Crystal Financial LLC
and its Affiliates may make loans to, issue letters of credit for the account of, acquire Equity Interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries
and Affiliates and any other Person party to any Loan Document as though Crystal Financial LLC were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group
acknowledge that, pursuant to such activities, Crystal Financial LLC or its Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in
favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver
Agent will use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include Crystal Financial LLC in its individual capacity. 

15.8.     Successor Agent. Agent may resign as Agent upon 30 days prior written notice to
the Lenders (unless such notice is waived by the Required Lenders) and Borrower (unless such notice is waived by Borrower). If Agent resigns under this Agreement, the Required Lenders shall be entitled, with (so long as no Event of Default has
occurred and is continuing) the consent of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned), appoint a successor Agent for the Lenders. If no successor Agent is appointed prior to the effective date of the resignation
of Agent, Agent may appoint, after consulting with the Lenders and Borrower, a successor Agent. If Agent has materially breached or failed to perform any material provision of this Agreement or of applicable law, the Required Lenders may agree in

  
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writing to remove and replace Agent with a successor Agent from among the Lenders with (so long as no Event of Default has occurred and is continuing) the consent of Borrower (such consent not to
be unreasonably withheld, delayed, or conditioned). In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term
“Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is 30 days following a retiring
Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a successor
Agent as provided for above. 
 15.9.      Lender in Individual Capacity. Any Lender
and its respective Affiliates may make loans to, issue letters of credit for the account of, acquire Equity Interests in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its
Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge
that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of
Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender
will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information to them. 

15.10.     Collateral Matters. 

(a)       The Lenders hereby irrevocably authorize Agent to release any Lien on any Collateral
(i) upon the termination of the Commitments and payment and satisfaction in full by Borrower of all of the Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection therewith and
if Borrower certify to Agent that the sale or disposition is permitted under Section 6.4 (and Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which neither Borrower nor
any of its Subsidiaries owned any interest at the time Agent’s Lien was granted nor at any time thereafter, (iv) constituting property leased or licensed to Borrower or its Subsidiaries under a lease or license that has expired or is
terminated in a transaction permitted under this Agreement, or (v) in connection with a credit bid or purchase authorized under this Section 15.10. The Loan Parties and the Lenders hereby irrevocably authorize Agent, based upon the
instruction of the Required Lenders, to (a) consent to the sale of, credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any sale thereof conducted under the provisions of
the Bankruptcy Code, or similar Insolvency Laws in any other relevant jurisdiction, including Section 363 of the Bankruptcy Code, (b) credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of
the Collateral at any sale or other disposition thereof conducted under the provisions of the PPSA, including pursuant to 

  
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Sections 9-610 or 9-620 of the PPSA or similar Insolvency Laws in any other relevant jurisdiction or any similar
provision of the PPSA, or (c) credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any other sale or foreclosure conducted or consented to by Agent in accordance with
applicable law in any judicial action or proceeding or by the exercise of any legal or equitable remedy. In connection with any such credit bid or purchase, (i) the Obligations owed to the Lenders shall be entitled to be, and shall be, credit
bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims being estimated for such purpose if the fixing or liquidation thereof would not impair or unduly delay the ability of Agent to credit bid or purchase at such
sale or other disposition of the Collateral and, if such contingent or unliquidated claims cannot be estimated without impairing or unduly delaying the ability of Agent to credit bid at such sale or other disposition, then such claims shall be
disregarded, not credit bid, and not entitled to any interest in the Collateral that is the subject of such credit bid or purchase) and the Lenders whose Obligations are credit bid shall be entitled to receive interests (ratably based upon the
proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) in the Collateral that is the subject of such credit bid or purchase (or in the Equity Interests of the any entities that are used to
consummate such credit bid or purchase), and (ii) Agent, based upon the instruction of the Required Lenders, may accept non-cash consideration, including debt and equity securities issued by any entities used to consummate such credit bid or
purchase and in connection therewith Agent may reduce the Obligations owed to the Lenders (ratably based upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) based upon the value of
such non-cash consideration. Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or substantially all of the Collateral,
all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Borrower at any time, the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types or items of Collateral pursuant
to this Section 15.10; provided, that (1) anything to the contrary contained in any of the Loan Documents notwithstanding, Agent shall not be required to execute any document or take any action necessary to evidence such
release on terms that, in Agent’s opinion, could expose Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not
in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly released) upon (or obligations of Borrower in respect of) any and all interests retained by Borrower, including, the proceeds of any sale, all of
which shall continue to constitute part of the Collateral. Each Lender further hereby irrevocably authorizes Agent, at its option and in its sole discretion, to subordinate any Lien granted to or held by Agent under any Loan Document to the holder
of any Permitted Lien on such property if such Permitted Lien secures, a Capital Lease or a Permitted Purchase Money Indebtedness permitted hereunder or the Revolving Loan Documents. 

(b)     Agent shall have no obligation whatsoever to any of the Lenders (i) to verify or assure that
the Collateral exists or is owned by Borrower or its Subsidiaries or is cared for, protected, or insured or has been encumbered, (ii) to verify or assure that Agent’s Liens have been properly or sufficiently or lawfully created, perfected,
protected, or enforced or are entitled to any particular priority, (iii) to verify or assure that any particular items of Collateral meet the eligibility criteria applicable in respect thereof, (iv) to impose, maintain, increase, reduce,
implement, or eliminate any particular Reserve hereunder or to determine whether the amount of 

  
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any Reserve is appropriate or not, or (v) to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights,
authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions
contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to
any Lender as to any of the foregoing, except as otherwise expressly provided herein. 
 (c)     Any
sale or disposition of Collateral that is permitted under Section 6.4 (as modified or waived in accordance with Section 14.1) shall be free and clear of the Liens created by the Loan Documents. 

15.11. Restrictions on Actions by Lenders; Sharing of Payments. 

(a)     Each of the Lenders agrees that it shall not, without the express written consent of Agent, and
that it shall, to the extent it is lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or its Subsidiaries or any deposit accounts of Borrower or its
Subsidiaries now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action, including, the commencement of any
legal or equitable proceedings to enforce any Loan Document against Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 

(b)     If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii) payments from Agent in excess of
such Lender’s Pro Rata Share of all such distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may be required to negotiate the same to Agent, or in immediately available
funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase, without recourse or warranty, an undivided interest and
participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, that to the extent that such excess payment
received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such
purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 

15.12.     Agency for Perfection. Agent hereby appoints each other Lender as its agent (and
each Lender hereby accepts such appointment) for the purpose of perfecting Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the PPSA or the applicable provisions of any STA, can be perfected by
possession or control. Should any Lender obtain possession or control of any such Collateral, such Lender shall notify Agent thereof, and, 

  
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promptly upon Agent’s request therefor shall deliver possession or control of such Collateral to Agent or in accordance with Agent’s instructions. 

15.13.   Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders shall be
made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment
(or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 
 15.14.
  Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs Agent to enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that any
action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its powers set forth therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders. 
 15.15. Field Examination Reports; Confidentiality;
Disclaimers by Lenders; Other Reports and Information. By becoming a party to this Agreement, each Lender: 
 (a)
    is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field examination report respecting Borrower or its Subsidiaries (each, a “Report”) prepared by
or at the request of Agent, and Agent shall so furnish each Lender with such Reports, 
 (b)
    expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information contained in any Report, 

(c)     expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations,
that Agent or other party performing any field examination will inspect only specific information regarding Borrower and its Subsidiaries and will rely significantly upon Borrower’s and its Subsidiaries’ books and records, as well as on
representations of Borrower’s personnel, 
 (d)     agrees to keep all Reports and other material,
non-public information regarding Borrower and its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 17.8, and 

(e)     without limiting the generality of any other indemnification provision contained in this
Agreement, agrees: (i) to hold Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection
with any loans or other credit accommodations that the indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and
(ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys’
fees and costs) 

  
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incurred by Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

 (f)     In addition to the foregoing, (x) any Lender may from time to time request of Agent in
writing that Agent provide to such Lender a copy of any report or document provided by Borrower or its Subsidiaries to Agent that has not been contemporaneously provided by Borrower or such Subsidiary to such Lender, and, upon receipt of such
request, Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Borrower or its Subsidiaries, any Lender
may, from time to time, reasonably request Agent to exercise such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of Borrower the additional reports or information reasonably specified by such Lender,
and, upon receipt thereof from Borrower or such Subsidiary, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent renders to Borrower a statement regarding the Loan Account, Agent shall send a copy of such
statement to each Lender. 
 15.16.   Several Obligations; No Liability. Notwithstanding that
certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any credit
available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one
time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities
of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to
any Participant of any other Lender. Except as provided in Section 15.6, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group. No Lender shall be responsible to Borrower or any other
Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to advance for such Lender or on its behalf, nor to take any other action on behalf of such Lender hereunder or in connection with the
financing contemplated herein. 
 15.17.   Quebec Security. In its capacity as Agent, for the
purposes of holding any hypothec granted to Agent, Crystal Financial LLC is hereby appointed and shall serve as the hypothecary representative for all present and future Lenders as contemplated by Article 2692 of the Civil Code of Québec. Any
person who becomes a Lender shall, by its execution of an Assignment and Acceptance be deemed to have consented to and confirmed Agent as the person acting as hypothecary representative holding the aforesaid hypothecs as aforesaid and to have
ratified, as of the date it becomes a Lender, all actions taken by Agent in such capacity. The substitution of Agent pursuant to the provisions of this Section 15 also constitute the substitution of the hypothecary representative. 

  
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 16.       WITHHOLDING TAXES. 

16.1.     Payments. All payments will be made free and clear of, and without deduction or
withholding for, any present or future Taxes except as required by applicable law, and in the event any deduction or withholding of Indemnified Taxes is required by applicable law, Borrower shall comply with the next sentence of this
Section 16.1. If any Indemnified Taxes are required to be deducted or withheld on a payment made by any Loan Party, such Loan Party agrees that the amount payable by it shall be increased as necessary so that after such deduction or
withholding is made every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16.1 after withholding or deduction for or on account of any Indemnified Taxes,
will not be less than the amount the Agent or the Lender would have received had no such deduction or withholding been made. Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable
law, certified copies of Tax receipts or other documentation reasonably requested by Agent evidencing such payment by Borrower to a Governmental Authority. In addition, Borrower agrees to pay any present or future stamp, value added, intangible
transfer or documentary Taxes or any other excise or property Taxes, charges, or similar levies (“Other Taxes”) that arise from any payment made hereunder or from the execution, delivery, performance, recordation, enforcement or
filing of, or otherwise with respect to this Agreement or any other Loan Document to the relevant Government Authority in accordance with applicable law. Loan Parties shall indemnify each Indemnified Person (as defined in Section 10.3)
(collectively a “Tax Indemnitee”) for the full amount of Indemnified Taxes or Other Taxes arising in connection with this Agreement or any other Loan Document or breach thereof by any Loan Party (including, without limitation, any
Indemnified Taxes or Other Taxes imposed or asserted on, or attributable to, amounts payable under this Section 16) imposed on, or paid by, such Tax Indemnitee and any penalties, interest and reasonable costs and expenses related thereto
(including fees and disbursements of attorneys and other Tax professionals), as and when they are incurred and irrespective of whether suit is brought, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority (other than Indemnified Taxes or Other Taxes and additional amounts that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such
Tax Indemnitee). The obligations of Loan Parties under this Section 16 shall survive the termination of this Agreement, the resignation and replacement of the Agent, and the repayment of the Obligations. 

16.2.     Exemptions. 

(a)     If a Lender or Participant claims an exemption or reduction from withholding Tax in a
jurisdiction other than the United States, such Lender or such Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) any such form or forms, as may be
reasonably requested by Agent or required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding Tax before receiving its first payment under this Agreement (including, for
the avoidance of doubt, if requested, Canada Revenue Agency Forms NR-301, NR-302 or NR-303, as applicable), but only if such
Lender or such Participant is legally able to deliver such forms and the completion, execution, or submission of such forms or other documentation in the reasonable judgment of such Lender would not subject

  
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such Lender to any material unreimbursed cost or expense or materially prejudice the legal or commercial position of such Lender or its Affiliates, provided, that nothing in this
Section 16.2(a) shall require a Lender or Participant to disclose any information that it deems to be confidential (including without limitation, its Tax returns). Each Lender and each Participant shall provide new forms (or successor
forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Agent (or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify or render
invalid any claimed exemption or reduction. 
 (b)     If a Lender or Participant claims exemption
from, or reduction of, withholding Tax and such Lender or Participant sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of Borrower to such Lender or Participant, such Lender or Participant agrees to
notify Agent (or, in the case of a sale of a participation interest, to the Lender granting the participation only) of the percentage amount in which it is no longer the beneficial owner of Obligations of Borrower to such Lender or Participant. To
the extent of such percentage amount, Agent will treat such Lender’s or such Participant’s documentation provided pursuant to Section 16.2(a) as no longer valid. With respect to such percentage amount, such Participant or
Assignee may provide new documentation, pursuant to Section 16.2(a), if applicable. Borrower agrees that each Participant shall be entitled to the benefits of this Section 16 with respect to its participation in any portion
of the Commitments and the Obligations so long as such Participant complies with the obligations set forth in this Section 16 with respect thereto. 

16.3.   Reductions. 

(a)     If the Canada Revenue Agency or any other Governmental Authority of Canada or other jurisdiction
asserts a claim that Agent (or, in the case of a Participant, to the Lender granting the participation) did not properly withhold Tax from amounts paid to or for the account of any Lender or any Participant due to a failure on the part of the Lender
or any Participant (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Agent (or such Participant failed to notify the Lender granting the participation) of a change in circumstances
which rendered the exemption from, or reduction of, withholding Tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless (or, in the case of a Participant, such Participant shall indemnify and hold the Lender
granting the participation harmless) for all amounts paid, directly or indirectly, by Agent (or, in the case of a Participant, to the Lender granting the participation), as Tax or otherwise, including penalties and interest, and including any Taxes
imposed by any jurisdiction on the amounts payable to Agent (or, in the case of a Participant, to the Lender granting the participation only) under this Section 16, together with all costs and expenses (including attorneys’ fees and
expenses). The obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent. 

16.4.   Refunds. If Agent or a Lender determines, in its sole discretion, that it has received a
refund of any Indemnified Taxes to which Borrower has paid additional amounts pursuant to this Section 16, so long as no Event of Default has occurred and is continuing, it shall pay over such refund to Borrower (but only to the extent of payments
made, or additional 

  
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amounts paid, by Borrower under this Section 16 with respect to Indemnified Taxes or Other Taxes giving rise to such a refund and only to the extent that the Agent or the Lender, as
applicable, is satisfied that it may do so without prejudice to its right, as against the relevant Governmental Authority, to retain such refund), net of all out-of-pocket expenses (including Taxes) of Agent or such Lender and without interest
(other than any interest paid by the applicable Governmental Authority with respect to such a refund); provided, that Borrower, upon the request of Agent or such Lender, agrees to repay the amount paid over to Borrower (plus any penalties,
interest or other charges, imposed by the applicable Governmental Authority, other than such penalties, interest or other charges imposed as a result of the willful misconduct or gross fault of Agent hereunder) to Agent or such Lender in the event
Agent or such Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything in this Agreement to the contrary, this Section 16.4 shall not be construed to (a) interfere with the right of the Agent
or any Lender to arrange its affairs in whatever manner it thinks fit and, or (b) require Agent or any Lender to make available its Tax returns (or any other information which it deems confidential) to Borrower or any other Person. Further
notwithstanding anything to the contrary in this Section 16.4, in no event will an Agent or Lender be required to pay any amount to Borrower pursuant to this Section 16.4, the payment of which would place such Agent or Lender
in a less favorable net after-Tax position than it would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts
with respect to such Tax had never been paid. 
 17.       GENERAL PROVISIONS. 

17.1.     Effectiveness. This Agreement shall be binding and deemed effective when executed
by Borrower, Agent, and each Lender whose signature is provided for on the signature pages hereof. 
 17.2.
    Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire
Agreement. 
 17.3.     Interpretation. Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed against the Lender Group or Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the
ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 
 17.4.
    Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 17.5.     Debtor-Creditor Relationship. The relationship between the Lenders and Agent,
on the one hand, and the Loan Parties, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to any Loan Party arising out of or in connection with
the Loan Documents or the transactions contemplated thereby, and there is no agency or joint venture relationship 

  
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between the members of the Lender Group, on the one hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein. 

17.6.     Counterparts; Electronic Execution. This Agreement may be executed in any number
of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an
executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this
Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 

17.7.     Revival and Reinstatement of Obligations; Certain Waivers. If any member of the
Lender Group repays, refunds, restores, or returns in whole or in part, any payment or property (including any proceeds of Collateral) previously paid or transferred to such member of the Lender Group in full or partial satisfaction of any
Obligation or on account of any other obligation of any Loan Party under any Loan Document, because the payment, transfer, or the incurrence of the obligation so satisfied is asserted or declared to be void, voidable, or otherwise recoverable under
any law relating to creditors’ rights, including provisions of the Bankruptcy Code or other Insolvency Laws relating to fraudulent transfers, preferences, or other voidable or recoverable obligations or transfers (each, a “Voidable
Transfer”), or because such member of the Lender Group elects to do so on the reasonable advice of its counsel in connection with a claim that the payment, transfer, or incurrence is or may be a Voidable Transfer, then, as to any such
Voidable Transfer, or the amount thereof that such member of the Lender Group elects to repay, restore, or return (including pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and attorneys’
fees of such member of the Lender Group related thereto, (i) the liability of the Loan Parties with respect to the amount or property paid, refunded, restored, or returned will automatically and immediately be revived, reinstated, and restored
and will exist and (ii) Agent’s Liens securing such liability shall be effective, revived, and remain in full force and effect, in each case, as fully as if such Voidable Transfer had never been made. If, prior to any of the foregoing,
(A) Agent’s Liens shall have been released or terminated or (B) any provision of this Agreement shall have been terminated or cancelled, Agent’s Liens, or such provision of this Agreement, shall be reinstated in full force and
effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral securing such liability. 

17.8.     Confidentiality. 

(a)       Agent and Lenders each individually (and not jointly or jointly and severally) agree
that material, non-public information regarding Borrower and its Subsidiaries, their operations, assets, and existing and contemplated business plans (“Confidential Information”) shall be treated by Agent and the Lenders in a
confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except: 

  
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 (i) to attorneys for and other advisors, accountants, auditors, and consultants to any
member of the Lender Group and to employees, directors and officers of any member of the Lender Group (the Persons in this clause (i), “Lender Group Representatives”) on a “need to know” basis in connection with this
Agreement and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of any member of the Lender Group, provided that any such Subsidiary or Affiliate shall have agreed to receive such
information hereunder subject to the terms of this Section 17.8, (iii) as may be required by regulatory authorities so long as such authorities are informed of the confidential nature of such information, (iv) as may be
required by statute, decision, or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to provide Borrower with prior notice thereof, to the
extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or
regulation and (y) any disclosure under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation, (v) as
may be agreed to in advance in writing by Borrower, (vi) as requested or required by any Governmental Authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause
(vi) the disclosing party agrees to provide Borrower with prior written notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior written notice to Borrower
pursuant to the terms of the subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential Information as may be required by such Governmental Authority pursuant to such
subpoena or other legal process, (vii) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent or the Lenders or the Lender Group Representatives), (viii) in
connection with any assignment, participation or pledge of any Lender’s interest under this Agreement, provided that prior to receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing to
receive such Confidential Information either subject to the terms of this Section 17.8 or pursuant to confidentiality requirements substantially similar to those contained in this Section 17.8 (and such Person may disclose
such Confidential Information to Persons employed or engaged by them as described in clause (i) above), (ix) in connection with any litigation or other adversary proceeding involving parties hereto to the extent such litigation or
adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents; provided, that, prior to any disclosure to any Person (other than any Loan Party, Agent, any Lender, any of
their respective Affiliates, or their respective counsel) under this clause (ix) with respect to litigation involving any Person (other than Borrower, Agent, any Lender, any of their respective Affiliates, or their respective counsel), the
disclosing party agrees to provide Borrower with prior written notice thereof, and (x) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan
Document. 
 (b)       Anything in this Agreement to the contrary notwithstanding, Agent may
disclose information concerning the terms and conditions of this Agreement and the other Loan Documents to loan syndication and pricing reporting services or in its marketing or promotional materials, with such information to consist of deal terms
and other information customarily found in such publications or marketing or promotional materials and may otherwise use the name, logos, and other insignia of Borrower or the other Loan Parties and the Commitments

  
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provided hereunder in any “tombstone” or other advertisements, on its website or in other marketing materials of the Agent; provided that, in the case of this clause, Agent will
submit its proposed form of “tombstone” or comparable advertising to the Administrative Borrower for approval prior to Agent’s initial external use thereof, which approval of the Administrative Borrower shall not be unreasonably
withheld, conditioned or delayed, and, following receipt of such approval from the Administrative Borrower, Agent shall not be required to see further approval for any Loan Party to use such “tombstone” or other comparable advertising on
its website or in its other marketing materials. 
 (c)       The Loan Parties hereby
acknowledge that Agent or its Affiliates may make available to the Lenders materials or information provided by or on behalf of Borrower hereunder (collectively, “Borrower Materials”) by posting Borrower Materials on IntraLinks,
SyndTrak or another similar electronic system (the “Platform”) and certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Loan
Parties or their securities) (each, a “Public Lender”). The Loan Parties shall be deemed to have authorized Agent and its Affiliates and the Lenders to treat Borrower Materials marked “PUBLIC” or otherwise at any time
filed with the SEC as not containing any material non-public information with respect to the Loan Parties or their securities for purposes of United States federal and state securities laws. All Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated as “Public Investor” (or another similar term). Agent and its Affiliates and the Lenders shall be entitled to treat Borrower Materials that are not marked
“PUBLIC” or that are not at any time filed with the SEC as being suitable only for posting on a portion of the Platform not marked as “Public Investor” (or such other similar term). 

17.9.     Survival. All representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that Agent, or any Lender may have had notice or knowledge of any Default or Event of
Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of, or any accrued interest on, any Loan or any fee or any other amount payable under
this Agreement is outstanding or unpaid and so long as the Commitments have not expired or been terminated. 

17.10.     Patriot Act; Canadian Anti-Money Laundering & Anti-Terrorism
Legislation. 
 (a)       Each Lender that is
subject to the requirements of the Patriot Act hereby notifies Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies Borrower, which information includes
the name and address of Borrower and other information that will allow such Lender to identify Borrower in accordance with the Patriot Act. In addition, if Agent is required by law or regulation or internal policies to do so, it shall have
the right to periodically conduct (a) Patriot Act searches, OFAC/PEP searches, and customary individual background checks for the Loan Parties and 

  
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(b) OFAC/PEP searches and customary individual background checks for the Loan Parties’ senior management and key principals, and Borrower agrees to cooperate in respect of the conduct
of such searches and further agrees that the reasonable costs and charges for such searches shall constitute Lender Group Expenses hereunder and be for the account of Borrower. 

(b)       Each Loan Party acknowledges that, pursuant to the provisions of Canadian Anti-Money
Laundering & Anti-Terrorism Legislation, Agent and Lenders may be required to obtain, verify and record information regarding each Loan Party, its respective directors, authorized signing officers, direct or indirect shareholders or other
Persons in control of such Loan Party, and the transactions contemplated hereby. The Loan Parties shall promptly provide all such information, including supporting documentation and other evidence, as may be reasonably requested by any Lender or
Agent, or any prospective assign or participant of a Lender or Agent, necessary in order to comply with any applicable Canadian Anti-Money Laundering & Anti-Terrorism Legislation, whether now or hereafter in existence. If Agent has
ascertained the identity of any Loan Party or any authorized signatories of any Loan Party for the purposes of applicable Canadian Anti-Money Laundering & Anti-Terrorism Legislation, then the Agent: 

(i)       shall be deemed to have done so as an agent for each Lender, and this Agreement shall
constitute a “written agreement” in such regard between each Lender and the Agent within the meaning of applicable Canadian Anti-Money Laundering & Anti-Terrorism Legislation; and 

(ii)       shall provide to each Lender copies of all information obtained in such regard
without any representation or warranty as to its accuracy or completeness. 
 Notwithstanding the provisions of this Section and except as
may otherwise be agreed in writing, each Lender agrees that Agent has no obligation to ascertain the identity of the Loan Parties or any authorized signatories of the Loan Parties on behalf of any Lender, or to confirm the completeness or accuracy
of any information it obtains from the Loan Parties or any such authorized signatory in doing so. 

17.11.     Integration. This Agreement, together with the other Loan Documents, reflects the
entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 

17.12.     Birks Group Inc. as Agent for Borrower. To the extent a Person other than Birks
Group Inc. is a borrower hereunder, Borrower hereby irrevocably appoints Birks Group Inc. as the borrowing agent and attorney-in-fact for all Borrower (the “Administrative Borrower”) which appointment shall remain in full force and
effect unless and until Agent shall have received prior written notice signed by Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower. Borrower hereby irrevocably appoints and
authorizes the Administrative Borrower (a) to provide Agent with all notices with respect to Term Loan obtained for the benefit of Borrower and all other notices and instructions under this Agreement and the other Loan Documents (and any notice
or instruction provided by Administrative Borrower shall be deemed to be given by Borrower hereunder and 

  
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shall bind Borrower), (b) to receive notices and instructions from members of the Lender Group (and any notice or instruction provided by any member of the Lender Group to the Administrative
Borrower in accordance with the terms hereof shall be deemed to have been given to Borrower), and (c) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain the Term Loan and to exercise such other powers
as are reasonably incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Loan Account and Collateral in a combined fashion, as more fully set forth herein, is done solely as an accommodation to
Borrower in order to utilize the collective borrowing powers of Borrower in the most efficient and economical manner and at their request, and that Lender Group shall not incur liability to Borrower as a result hereof. Borrower expects to derive
benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of Borrower is dependent on the continued successful performance of the integrated group. To induce the
Lender Group to do so, and in consideration thereof, Borrower hereby jointly and severally agrees to indemnify each member of the Lender Group and hold each member of the Lender Group harmless against any and all liability, expense, loss or claim of
damage or injury, made against the Lender Group by Borrower or by any third party whosoever, arising from or incurred by reason of (i) the handling of the Loan Account and Collateral of Borrower as herein provided, or (ii) the Lender
Group’s relying on any instructions of the Administrative Borrower, except that Borrower will have no liability to the relevant Agent-Related Person or Lender-Related Person under this Section 17.12 with respect to any liability
that has been finally determined by a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Agent-Related Person or Lender-Related Person, as the case may be. 

17.13.     Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures Agent could purchase the first currency with
such other currency on the Business Day preceding that on which final judgment is given. The obligation of Borrower in respect of any such sum due from it to Agent or any Lender hereunder or under the other Loan Documents shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the
extent that on the Business Day following receipt by Agent or such Lender, as the case may be, of any sum adjudged to be so due in the Judgment Currency, Agent or such Lender, as the case may be, may in accordance with normal banking procedures
purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to Agent or any Lender from Borrower in the Agreement Currency, Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify Agent or such Lender, as the case may be, against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to Agent or any Lender in such
currency, Agent or such Lender, as the case may be, agrees to return the amount of any excess to Borrower (or to any other Person who may be entitled thereto under applicable law). 

17.14.     Intercreditor Agreement. The parties hereto acknowledge that the exercise of
certain of the Agent’s rights and remedies hereunder may be subject to, and restricted by, the provisions of the Intercreditor Agreement regarding intercreditor arrangements among the Agent 

  
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and the Revolving Agent. Notwithstanding the foregoing, each Loan Party expressly acknowledges and agrees that the Intercreditor Agreement is solely for the benefit of the parties thereto, and
that notwithstanding the fact that the exercise of certain of the Agent’s and Lenders’ rights under the Loan Documents may be subject to the Intercreditor Agreement, no action taken or not taken by the Agent or any Lender in accordance
with the terms of the Intercreditor Agreement shall constitute, or be deemed to constitute, a waiver by the Agent or any Lender of any rights such Person has with respect to any Loan Party under any Loan Document and except as specified therein,
nothing contained in the Intercreditor Agreement shall be deemed to modify any of the provisions of this Agreement and the other Loan Documents, which, as among the Loan Parties, the Agent and the Lenders, shall remain in full force and effect. 

17.15.     No Setoff. All payments made by Borrower hereunder or under any note or other
Loan Document will be made without setoff, counterclaim, or other defense. 
 [Signature page to follow] 

  
 -74- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the date first above written. 
  

			
	 BIRKS GROUP INC.

	 By:    
	 	 /s/ Pasquale Di Lillo

		 	 Name:  Pasquale Di Lillo

		 	 Title:    Authorized Person

		
	 By:
	 	 /s/ Miranda Melfi

		 	 Name:  Miranda Melfi

		 	 Title:    Authorized Person

			
	 CRYSTAL FINANCIAL LLC, as Agent,

		
	 By:
	 	 /s/ Rebecca E. Tarby

		 	 Name:  Rebecca E. Tarby

		 	 Title:    Managing Director

	
	 CRYSTAL FINANCIAL SPV LLC, as a Lender,

		
	 By:
	 	 /s/ Rebecca E. Tarby

		 	 Name:  Rebecca E. Tarby

		 	 Title:    Managing Director

  
 - 1 - 

     

 Schedule 1.1 

Definitions 

As used in the Agreement, the following terms shall have the following definitions: 

“Account” means an account (as that term is defined in the PPSA). 

“Account Debtor” means any Person who is obligated on an Account, chattel paper, or an intangible. 

“Accounting Changes” means changes in accounting principles required by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions, including, to the extent applicable, the Chartered
Professional Accountants Canada). 
 “Acquired Indebtedness” means Indebtedness of a Person whose assets
or Equity Interests are acquired by Borrower or any of its Subsidiaries in a Permitted Acquisition; provided, that such Indebtedness (a) is either purchase money Indebtedness or a Capital Lease with respect to Equipment or mortgage
financing with respect to Real Property, (b) was in existence prior to the date of such Permitted Acquisition, and (c) was not incurred in connection with, or in contemplation of, such Permitted Acquisition. 

“Acquisition” means (a) the purchase or other acquisition by a Person or its Subsidiaries of all or
substantially all of the assets of (or any division or business line of) any other Person, or (b) the purchase or other acquisition (whether by means of a merger, amalgamation, consolidation, or otherwise) by a Person or its Subsidiaries of all
or substantially all of the Equity Interests of any other Person. 
 “Additional Documents” has the
meaning specified therefor in Section 5.15 of the Agreement. 
 “Additional Subordinated Debt”
means such unsecured Indebtedness incurred by any Loan Party after the date of this Agreement to the extent that such Indebtedness is Permitted Indebtedness and is expressly subordinated to the payment in full of the Obligations on terms and
conditions and pursuant to a Subordination Agreement in form, scope and substance satisfactory to Agent and the Required Lenders. 

“Additional Subordinated Debt Documents” means all documents, instruments and agreements executed in
connection with any Additional Subordinated Debt, any such documents, instruments and agreements being in form, scope and substance satisfactory to Agent and the Required Lenders. 

“Adjusted CDOR” for any applicable month, with respect to any portion of the Term Loan, the rate per annum
quoted as the 90-day “CDOR Rate” as reported on the Reuters Screen CDOR Page (or any successor page or such other page or commercially available service 

  
 - 2 - 

     

 displaying Canadian interbank bid rates for Canadian Dollar bankers’ acceptances as the
Agent may designate from time to time, or if no such substitute service is available, the rate quoted by a Schedule I bank under the Bank Act (Canada) selected by the Agent at which such bank is offering to purchase Canadian Dollar
bankers’ acceptances) as of 10:00 a.m. Eastern (Toronto) time (and, if any such reported rate is below one percent, then the rate determined pursuant to this clause (b) shall be deemed to be one percent), two (2) Business Days prior
to the Closing Date and each Interest Payment Date thereafter for any subsequent month. Each determination of the Adjusted CDOR rate shall be made by the Agent and shall be conclusive in the absence of manifest error. 

“Administrative Borrower” has the meaning specified therefor in Section 17.12 of the Agreement.

 “Administrative Questionnaire” has the meaning specified therefor in Section 13.1(a)(ii)(G)
of the Agreement. 
 “Affected Lender” has the meaning specified therefor in Section 2.2(f) of
the Agreement. 
 “Affiliate” means, as applied to any Person, any other Person who controls, is
controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of
a Person, whether through the ownership of Equity Interests, by contract, or otherwise; provided, that, for purposes of the definition of Eligible Accounts and Section 6.10 of the Agreement: (a) any Person which owns directly
or indirectly 10% or more of the Equity Interests having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as
a limited partner of such Person) shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general
partner shall be deemed an Affiliate of such Person. 
 “Agent” has the meaning specified therefor in the
preamble to the Agreement. 
 “Agent-Related Persons” means Agent, together with its Affiliates, officers,
directors, employees, attorneys, and agents. 
 “Agent’s Loan Account” means the Deposit Account
identified on Schedule A-1 as Agent’s Loan Account (or such other Deposit Account that has been designated as such, in writing, by Agent to Administrative Borrower and the Lenders). 

“Agent’s Liens” means the Liens granted by Borrower or any of its Subsidiaries to Agent under the Loan
Documents and securing all or a portion of the Obligations. 
 “Agreement” means the Credit Agreement to
which this Schedule 1.1 is attached. 
 “Applicable Inventory Percentage” means (i) 104.5%
from the Closing Date until December 15, 2019, (ii) 104.25% from December 16, 2019 until March 30, 2020, and (iii)

  
 - 3 - 

     

 thereafter reducing as of the first day of each subsequent Fiscal Quarter by 0.25% until the
Applicable Inventory Percentage reaches 102.5% where it shall remain until the Maturity Date; 
 “Applicable
Margin” means 8.25% per annum; provided however, that following the delivery of the Borrower’s audited financial statements as at March 30, 2019, the Applicable Margin shall be reduced to 7.75% per annum for any Fiscal
Quarter that the Modified Fixed Charge Coverage Ratio for the twelve month period ended as of each such Fiscal Quarter is equal to or greater than 1.0 to 1.0 for such period. The Applicable Margin will be reset quarterly based on the Modified Fixed
Charge Coverage Ratio for the immediately preceding Fiscal Quarter, provided that, upon the occurrence of an Event of Default which is continuing, the Applicable Margin shall be 8.25% per annum. 

“Applicable Premium Trigger Event” means (i) any prepayment by any Loan Party of all, or any part, of
the principal balance of the Term Loan for any reason (including, but not limited to, any optional prepayment or mandatory prepayment, and distribution in respect thereof, and any refinancing thereof), whether in whole or in part, and whether before
or after (x) the occurrence of an Event of Default, or (y) the commencement of any Insolvency Proceeding, and notwithstanding any acceleration (for any reason) of the Obligations; (ii) the acceleration of the Obligations for any
reason, including, but not limited to, acceleration in accordance with Section 9, including as a result of the commencement of an Insolvency Proceeding; (iii) the satisfaction, release, payment, restructuring, reorganization, replacement,
reinstatement, defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any
Insolvency Proceeding to the Agent, for the account of the Lenders in full or partial satisfaction of the Obligations; or (iv) the termination of this Agreement for any reason. For purposes of the definition of the term Early Termination Fee,
if an Applicable Premium Trigger Event occurs under clause (ii), (iii) or (iv) above, the entire outstanding principal amount of the Term Loan shall be deemed to have been prepaid on the date on which such Applicable Premium Trigger Event
occurs. 
 “Application Event” means the (a) occurrence of a failure by Borrower to repay all of the
Obligations in full on the Maturity Date, or (b) the occurrence and continuance of an Event of Default and the election by the Agent (or at the direction of the Required Lenders) during such continuance to require that payments and proceeds of
Collateral be applied pursuant to Section 2.3(b)(i)(A). 
 “Approved Fund” means any Person
(other than a natural person) that is engaged in making, holding or investing in extensions of credit in its ordinary course of business and is administered or managed by a Lender, an entity that administers or manages a Lender, or an Affiliate of
either. 
 “Assignee” has the meaning specified therefor in Section 13.1 of the Agreement.

 “Assignee Group” means two or more Eligible Transferee that are Affiliates of one another or two or
more Approved Funds managed by the same investment advisor. 

  
 - 4 - 

     

 “Assignment and Acceptance” means an Assignment and Acceptance
Agreement substantially in the form of Exhibit A-1 to the Agreement. 
 “Authorized Person” means
any one of the individuals identified on Schedule A-3 to the Agreement, as such schedule is updated from time to time by written notice from Administrative Borrower to Agent. 

“Availability Block” means, as of any date of determination, the greater of (i) ten percent
(10%) multiplied by the Borrowing Base (calculated without giving effect to the Availability Block), and (ii) $8,500,000 plus (A) from December 20 to January 20 of any given Fiscal Year, $9,500,000, or (B) from
January 21 to February 20 of any given Fiscal Year, $4,500,000. 
 “Bankruptcy Code” means title
11 of the United States Code, as in effect from time to time. 
 “Board of Directors” means, as to any
Person, the Board of Directors (or comparable managers) of such Person, or any committee thereof duly authorized to act on behalf of the Board of Directors (or comparable managers). 

“Board of Governors” means the Board of Governors of the Federal Reserve System of the United States (or any
successor). 
 “Borrower” has the meaning specified therefor in the preamble to the Agreement. 

“Borrower Materials” has the meaning specified therefor in Section 17.8(c) of the Agreement.

 “Borrowing” means the borrowing under the Term Loan made on or about the date hereof or a loan by Agent
in the case of a Protective Advance. 
 “Borrowing Availability” means the lesser of (i) the sum of
the “Commitments” (as defined in the Revolving Credit Agreement) plus the Commitments, and (ii) the Borrowing Base. 

“Borrowing Base” means, as of any date of determination, the Canadian Dollar Equivalent amount of the result
of: 
 (a)       102.5% of the amount of Eligible Credit Card Receivables of Borrower, plus

 (b)       102.5% of the amount of Eligible Accounts of Borrower, provided that the amount
thereof included in the Borrowing Base shall not exceed 20% of the aggregate amount of the Borrowing Base, plus 
 (c)
      the Applicable Inventory Percentage of the amount calculated by multiplying the Inventory Net Recovery Percentage of the relevant Eligible Inventory Category identified in the most recent Inventory appraisal
ordered and obtained by either the Revolving 

  
 - 5 - 

     

 Agent pursuant to the Revolving Credit Agreement or Agent by the cost (based on GAAP) of such
Eligible Inventory provided that the amount of Eligible Non-Possessory Inventory included in Eligible Inventory for the purpose of calculating the Borrowing Base shall not exceed 5% of the aggregate amount of the Eligible Inventory, minus 

(d)       the aggregate amount of Receivables Reserves, Loan to Value Reserves, Inventory
Reserves, Canadian Priority Payables Reserves and other Reserves, if any, established by Agent in accordance with Section 2.2(a) of the Agreement with respect to the Borrowing Base, minus 

(e)       the Availability Block. 

“Borrowing Base Certificate” means a certificate in the form of Exhibit B-1, containing the
calculation of the Borrowing Base with the initial Borrowing Base Certificate being attached thereto in order to demonstrate the calculation of the Borrowing Base for illustration purposes. 

“Business Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or
required to close in the State of New York or the Provinces of Ontario or Quebec. 
 “Canadian Anti-Money
Laundering & Anti-Terrorism Legislation” means Part II.1 of the Criminal Code (Canada), The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and the United Nations Act (Canada),
together with all rules, regulations and interpretations thereunder or related thereto including, without limitation, the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism and the United Nations Al-Qaida and
Taliban Regulations promulgated under the United Nations Act (Canada) and any similar Canadian legislation in effect from time to time. 

“Canadian Defined Benefit Plan” means any Canadian Pension Plan which contains a “defined benefit
provision” as defined in subsection 147.1(1) of the Income Tax Act (Canada) but does not include a Canadian Multi-Employer Plan. 

“Canadian Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Canadian
Dollars, such amount, and (b) with respect to any amount denominated in another currency, the equivalent amount thereof in Canadian Dollars as determined by Agent, at such time, on the basis of the Spot Rate (determined in respect of the most
recent Revaluation Date or such other date determined by Agent) for the purchase of Canadian Dollars with such currency. Calculations of the Borrowing Base with respect to items included therein that are not denominated in Canadian Dollars may be
adjusted by Agent pursuant to this definition from time and references herein to the Borrowing Base (including references based upon the most recent applicable Borrowing Base Certificate delivered by Borrower to Agent) may reflect such adjustments.

 “Canadian Dollars”, “Dollars”, “Cdn $” or “$”
means the lawful currency of Canada, as in effect from time to time. 

  
 - 6 - 

     

 “Canadian Multi-Employer Plan” means a “multi-employer
pension plan”, as such term is defined under the Pension Benefits Act (Ontario), under which a Loan Party is required to contribute pursuant to a collective bargaining agreement and under which (i) the sole obligation of the Loan
Party is to make the contributions specified in the applicable collective bargaining agreement, and (ii) the Loan Party has no liability relating to any past or future withdrawals from the plan. 

“Canadian Patent Security Agreement” has the meaning specified therefor in the Canadian Security Agreement.

 “Canadian Pension Plans” means each pension plan required to be registered under Canadian federal or
provincial law that is maintained or contributed to, or to which there is or may be an obligation to contribute by a Loan Party or a Subsidiary thereof, for its employees or former employees, but does not include the Canada Pension Plan or the
Quebec Pension Plan as maintained by the Government of Canada or the Province of Quebec, respectively. 
 “Canadian
Priority Payables Reserves” means reserves (determined from time to time by Agent in its Permitted Discretion) for: (a) the amount past due and owing by any Loan Party, or the accrued amount for which such Loan Party has an obligation
to remit, to a Governmental Authority or other Person pursuant to any applicable law, rule or regulation, in respect of (i) goods and services Taxes, harmonized sales Taxes, other sales Taxes, employee income Taxes, municipal Taxes and other
Taxes payable or to be remitted or withheld; (ii) workers’ compensation or employment insurance; (iii) federal Canada Pension Plan, Quebec Pension Plan and other statutory pension plan contributions; (iv) vacation or holiday pay;
and (v) other like charges and demands, in each case, to the extent that any Governmental Authority or other Person may claim a Lien, trust, deemed trust or other claim ranking or capable of ranking in priority to or pari passu with one
or more of the Liens granted in the Loan Documents; and (b) the aggregate amount of any other liabilities of any Loan Party (i) in respect of which a trust or deemed trust has been or may be imposed on any Collateral to provide for
payment, or (ii) in respect of unremitted and due pension plan contributions in respect of Canadian Pension Plans including normal cost contributions and special payments (iii) without duplication for any amounts referred to in paragraph
(b)(ii) amounts representing any unfunded wind-up deficiency whether or not due with respect to a Canadian Defined Benefit Plan, or (iv) which are secured by a Lien, charge, right or claim on any Collateral (other than Permitted Liens that do
not have priority over Agent’s Liens); in each case, pursuant to any applicable law, rule or regulation and provided such lien, trust, deemed trust, pledge, charge, right or claim ranks or in the Permitted Discretion of Agent, is capable of
ranking in priority to or pari passu with one or more of the Liens granted in the Loan Documents (such as certain claims by employees for unpaid wages and other amounts payable under the Wage Earner Protection Program Act (Canada)); 

“Canadian Security Agreement” means a Canadian Guarantee and Security Agreement dated as of even date with
the Agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by each Loan Party to Agent. 

“Canadian Security Documents” means, collectively, the Canadian Security Agreement, Canadian Patent Security
Agreement, the Canadian Trademark Security Agreement, 

  
 - 7 - 

     

 the Quebec Security Documents and any other Loan Document that grants or purports to grant a Lien
on any of the assets or interests, and the proceeds thereof, of any Loan Party. 
 “Canadian Trademark Security
Agreement” has the meaning specified therefor in the Canadian Security Agreement. 
 “Capital Adequacy
Regulation” means any law, rule, regulation, guideline, request or directive of any central bank or other Governmental Authority, whether or not having the force of law, regarding capital adequacy of a bank or any Person controlling a bank.

 “Capital Assets” means fixed assets, both tangible (such as land, buildings, fixtures, machinery and
equipment) and intangible (such as patents, copyrights, trademarks, franchises and goodwill); provided that Capital Assets shall not include any item customarily charged directly to expense or depreciated over a useful life of 12 months or
less in accordance with GAAP. 
 “Capital Expenditures” means, with respect to any Person for any period,
(a) the amount of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed; and (b) the lease of any
assets by Borrower or any of its Subsidiaries as lessee under any synthetic lease to the extent that such assets would have been Capital Assets had the synthetic lease been treated for accounting purposes as a Capital Lease. 

“Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required
to be capitalized in accordance with GAAP. 
 “Capital Lease” means a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP but excluding leases which would have been characterized as operating leases according to GAAP as in effect on the Closing Date. 

“Cash Equivalents” means obligations that are denominated in Canadian Dollars or United States Dollars
(a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States or by, or unconditionally guaranteed by, the
government of Canada or issued by any agency thereof and backed by the full faith and credit of Canada, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by
any state of the United States or province of Canada or any political subdivision of any such state or province or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having
one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more
than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s,
(d) certificates of deposit, time deposits, overnight bank deposits or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof
or the District of Columbia or a bank organized under the laws of Canada, or any United States or Canadian branch of a foreign bank, in each case having at the date of acquisition thereof 

  
 - 8 - 

     

 combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained
with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof or the laws of Canada so long as the full amount maintained with
any such other bank is insured by the Federal Deposit Insurance Corporation or the Canadian Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of clause (d) of this definition of
recognized securities dealer having combined capital and surplus of not less than $250,000,000, having a term of not more than seven days, with respect to securities satisfying the criteria in clauses (a) or (d) above, (g) debt
securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in money market
funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (g) above. 

“CGS” means Cash, Gold & Silver Inc., a corporation formed under the laws of Canada. 

“CGS USA” means Cash, Gold & Silver USA, Inc., a corporation formed under the laws of Delaware.

 “Change of Control” means that: 

(a)       Montrovest and Mangrove Holding S.A. collectively fail to own and control, directly
or indirectly, a majority of the Equity Interests of Borrower entitled (without regard to the occurrence of any contingency) to vote for the election of members of the Board of Directors of Borrower, or 

(b)       Borrower fails to own and control, directly or indirectly, 100% of the Equity
Interests of each Loan Party (other than Borrower). 
 “Change in Law” means the occurrence after the date
of the Agreement of: (a) the adoption or effectiveness of any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation, judicial ruling, judgment or treaty or in the administration,
interpretation, implementation or application by any Governmental Authority of any law, rule, regulation, guideline or treaty, or (c) the making or issuance by any Governmental Authority of any request, rule, guideline or directive, whether or
not having the force of law; provided that notwithstanding anything in the Agreement to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (ii) all requests, rules, guidelines or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or Canada or foreign regulatory authorities shall, in each case, be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued. 

“Closing Date” means the date of the making of the Term Loan (or other extension of credit) under the
Agreement. 
 “Code” means the New York Uniform Commercial Code, as in effect from time to time. 

  
 - 9 - 

     

 “Collateral” means all assets and interests in assets and
proceeds thereof now owned or hereafter acquired by Borrower or any other Loan Party in or upon which a Lien is granted by such Person in favor of Agent or any of the Lenders under any of the Loan Documents. 

“Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any
lessor, warehouseman, processor, consignee or other Person in possession of, having a Lien upon, or having rights or interests in Borrower’s or any of its Subsidiaries’ books and records, Equipment, or Inventory, in each case, in form and
substance reasonably satisfactory to Agent. 
 “Combined Loan Cap” means, as at the date of determination,
the sum of the “Commitments” (as defined in the Revolving Credit Agreement) plus the Commitment. 

“Combined Total Outstandings” means the sum of (i) the Revolver Usage plus (ii) the Total
Outstandings. 
 “Commitment” means, with respect to each Lender, its Commitment, and, with respect to all
Lenders, the aggregate of all Commitments of all of the Lenders, in each case in such Canadian Dollar amounts as are set forth beside such Lender’s name under the applicable heading on Schedule C-1 to the Agreement or in the Assignment
and Acceptance or Increase Joinder pursuant to which such Lender became a Lender under the Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of
Section 9.1 of the Agreement or otherwise reduced in accordance with the terms of this Agreement. 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time
to time, and any successor statute. 
 “Compliance Certificate” means a certificate substantially in the
form of Exhibit C-1 to the Agreement delivered by a Financial Officer of Borrower to Agent. 
 “Confidential
Information” has the meaning specified therefor in Section 17.8(a) of the Agreement. 

“Consolidated EBITDA” means, for any period, the sum, without duplication, of the amounts for such period of
(i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) provision for federal, provincial, local and foreign income Taxes, franchise Taxes and other Taxes in lieu of income Taxes payable, (iv) total depreciation
expense, (v) total amortization expense, (vi) transaction expenses incurred by Borrower or any of its Subsidiaries in such period in connection with Permitted Acquisitions to the extent included in the calculation of Excess Availability
for purposes of determining whether the applicable Acquisition constitutes a Permitted Acquisition, (vii) fees, costs and expenses incurred on or prior to the Closing Date in connection with this Agreement, the other Loan Documents, and the
other transactions contemplated hereby, (viii) financial advisory fees, accounting fees, legal fees and any other similar third party reasonable out-of-pocket fees and out-of-pocket expenses incurred in connection any amendment or modification
of the Revolving Loan Documents or Loan Documents, (ix) management and other fees and reimbursement of expenses permitted pursuant 

  
 - 10 - 

     

 to Section 6.7(d), (x) impairment of goodwill and other non-cash items (other
than any such non-cash item to the extent it represents an accrual of or reserve for cash expenditures in any future period), (xi) to the extent actually reimbursed, expenses incurred to the extent covered by indemnification provisions in any
agreement in connection with a Permitted Acquisition, and (xii) other unusual or non-recurring cash charges approved by the Lender in its Permitted Discretion, including Restructuring and Integration Costs not to exceed $5,000,000 in the case
of the Closing Date US Divestiture (as defined in the Revolving Credit Agreement as in effect on the Closing Date) incurred in the Fiscal Year ended on March 31, 2018 and not to exceed $2,000,000 in the aggregate for all such charges for the
Fiscal Years ending on March 30, 2019 and March 27, 2020, but only, in the case of each of the foregoing clauses (ii) through (xii), to the extent deducted in the calculation of Consolidated Net Income, less non-cash items added in
the calculation of Consolidated Net Income (other than any such non-cash item to the extent it will result in the receipt of cash payments in any future period), all of the foregoing as determined on a consolidated basis for Borrower and its
Subsidiaries in conformity with GAAP. Notwithstanding the foregoing, Consolidated EBITDA for the fiscal months ending prior to the date of this Agreement and used in calculating the Fixed Charge Coverage Ratio for the applicable twelve fiscal month
period after such date shall be in amounts agreed by the Agent and Borrower. 
 “Consolidated Fixed
Charges” means, with respect to any fiscal period and with respect to Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP, the sum, without duplication, of (a) Consolidated Interest Expense paid
(other than interest paid-in-kind, amortization of financing fees, and other non-cash Consolidated Interest Expense) during such period, (b) scheduled principal payments in respect of Indebtedness that are required to be paid during such period
(excluding (i) Revolving Loan Debt to the extent such payments do not permanently reduce the “Commitments” (as defined in the Revolving Credit Agreement), and (ii) Management Debt to the extent such payments constitute an expense
in the calculation of Consolidated Net Income), (c) Restricted Payments made or required to be made in cash during such period; and (d) all management, consulting, monitoring and advisory fees paid in cash to Borrower and its Affiliates
during such period. Notwithstanding the foregoing, Consolidated Fixed Charges for the fiscal months ending prior to the date of this Agreement and used in calculating the Fixed Charge Coverage Ratio for the applicable twelve fiscal month period
after such date shall be in amounts agreed by the Agent and Borrower. 
 “Consolidated Interest Expense”
means, for any period, the aggregate of the interest expense of Borrower and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 

“Consolidated Net Income” means, for any period, the net income (or loss) of Borrower and its Subsidiaries
on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP after deduction for any non-controlling interest in such Subsidiaries; provided that there shall be excluded (i) the income (or loss)
of any Person (other than a Loan Party) in which any other Person (other than a Loan Party) has a joint interest, or a Subsidiary located outside US and Canada, except to the extent of the amount of dividends or other distributions actually paid to
Borrower or any of its Subsidiaries by such Person during such period, (ii) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of Borrower or is merged into or amalgamated or consolidated with

  
 - 11 - 

     

 Borrower or any of its Subsidiaries or that Person’s assets are acquired by Borrower or any
of its Subsidiaries, (iii) the income of any Subsidiary of Borrower that is not a Loan Party to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by
operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary, (iv) (to the extent not included in clauses (i) through (iii) above)
any non-cash extraordinary gains or non-cash extraordinary losses, (v) the impact of non-cash currency translation gains and losses and mark to market gains and losses on any Hedge Agreement, (vi) the cumulative effect of a change in
accounting principles during such period, and (vii) gains and losses from the early extinguishment of Indebtedness or other derivative instruments. 

“Control Agreement” means a control agreement, or blocked account agreement, as applicable, in form and
substance reasonably satisfactory to Agent, executed and delivered by Borrower or another Loan Party, Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account). 

“Credit Card Issuer” shall mean any person (other than a Borrower or any of its Subsidiaries) who issues or
whose members issue credit cards, including MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard International, Inc., Visa, U.S.A., Inc., Visa International, American Express, Discover, Diners
Club, Union Pay, VFI, Inc. (a subsidiary of The Toronto-Dominion Bank Finance Group) and other bank and non-bank credit or debit cards, and other issuers approved by the Agent, after the conduct of such due diligence with respect to such issuers as
the Agent considers necessary or appropriate, such approval not to be unreasonably withheld, conditioned or delayed. 

“Credit Card Processor” shall mean any servicing or processing agent or any factor or financial intermediary
who facilitates, services, processes or manages the credit authorization, billing transfer and/or payment procedures with respect to Borrower’s sales transactions involving credit card or debit card purchases by customers using credit cards or
debit cards issued by any Credit Card Issuer. 
 “Credit Card Notifications” has the meaning provided in
Section 5.18. 
 “Credit Card Receivables” shall mean each “intangible” (as defined
in the PPSA) together with all income, payments and proceeds thereof, owed by a Credit Card Issuer or Credit Card Processor to Borrower resulting from charges by a customer of Borrower on credit or debit cards issued by such Credit Card Issuer in
connection with the sale of goods by a Borrower, or services performed by a Credit Card Processor or Credit Card Issuer, in each case in the ordinary course of its business. 

“Default” means an event, condition, or default that, with the giving of notice, the passage of time, or
both, would be an Event of Default. 
 “Defaulting Lender” means any Lender that (a) has failed to
fund any amounts required to be funded by it under the Agreement within 1 Business Day of the date that it is required to do so under the Agreement, (b) notified Borrower, Agent, or any Lender in writing that it does not intend to comply with
all or any portion of its funding obligations under the 

  
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 Agreement, (c) has made a public statement to the effect that it does not intend to comply
with its funding obligations under the Agreement or under other agreements generally (as reasonably determined by Agent) under which it has committed to extend credit, (d) failed, within 1 Business Day after written request by Agent, to confirm
that it will comply with the terms of the Agreement relating to its obligations to fund any amounts required to be funded by it under the Agreement, (e) otherwise failed to pay over to Agent or any other Lender any other amount required to be
paid by it under the Agreement within 1 Business Day of the date that it is required to do so under the Agreement, or (f) (i) becomes or is insolvent or has a Borrower company that has become or is insolvent or (ii) becomes the
subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, or custodian or appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment or has a Borrower company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, or custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or appointment. 
 “Deposit
Account” means any deposit account maintained in Canada for the deposit of funds with a Canadian Bank reasonably acceptable to Agent. 

“Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the terms of any
security or other Equity Interests into which they are convertible or for which they are exchangeable), or upon the happening of any event or condition (a) matures or are mandatorily redeemable (other than solely for Qualified Equity
Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to
the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) are redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests),
in whole or in part, (c) provide for the scheduled payments of dividends in cash, or (d) are or become convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in
each case, prior to the date that is 91 days after the Maturity Date. 
 “Early Termination Fee” means
(i) during the period of time from and after the Closing Date up to (but not including) the date that is the first anniversary of the Closing Date, an amount equal to three (3.0%) of the principal amount of the Term Loan prepaid (or in the
case of an Applicable Premium Trigger Event occurring under clauses (ii), (iii) or (iv) of the definition thereof, deemed to be prepaid) on such date in cash to the Agent for the ratable account of the Lenders; (ii) during the period
of time from and after the first anniversary of the Closing Date up to (but not including) the date that is the second anniversary of the Closing Date, an amount equal to one and one half percent (1.5%) of the principal amount of the Term Loan
prepaid (or in the case of an Applicable Premium Trigger Event occurring under clauses (ii), (iii) or (iv) of the definition thereof, deemed to be prepaid) on such date in cash to the Agent for the ratable account of the Lenders;
(iii) during the period of time from and after the second anniversary of the Closing Date up to (but not including) the date that is the third anniversary of the Closing Date, an amount equal to one half of one percent (0.5%) of the principal
amount of the Term Loan prepaid (or in the case of an Applicable Premium Trigger Event occurring under clauses (ii), (iii) or (iv) of the definition thereof, deemed to be prepaid) on such date in cash to

  
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 the Agent for the ratable account of the Lenders, and (iv) from and after the third
anniversary of the Closing Date, zero. 
 “Eligible Accounts” means those PLCW Accounts created by
Borrower in the ordinary course of its business, that arise out of Borrower’s sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that
are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any field
examination performed by (or on behalf of) Agent from time to time after the Closing Date. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits, unapplied cash, Taxes, discounts, credits,
allowances, and rebates. Eligible Accounts shall not include the following: 

(a)        Accounts that the Account Debtor has failed to pay within 90 days of
original invoice date (except that this period shall be extended to 150 days after the original invoice date with respect to Accounts arising from initial orders made by an Account Debtor that becomes a customer of the Borrower after the Closing
Date) or within 60 days of due date, 
 (b)        Accounts owed by an Account
Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above, 

(c)        Accounts with respect to which the Account Debtor is an Affiliate of any
Loan Party or an employee or agent of any Loan Party or any Affiliate of any Loan Party, 

(d)        Accounts arising in a transaction wherein goods are placed on consignment
or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, 

(e)        Accounts that are not payable in US Dollars or Canadian Dollars, 

(f)        Accounts with respect to which the Account Debtor either (i) does not
maintain its chief executive office in Canada or the United States, or is not organized under the laws of the United States or any state thereof, or the laws of Canada or any province thereof, (ii) is the government of any foreign country or
sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless the Account is supported by an irrevocable letter of credit
reasonably satisfactory to Agent (as to form, substance and issuer or domestic confirming bank) that has been delivered to Agent and is directly drawable by Agent, 

(g)        Accounts with respect to which the Account Debtor is either (i) the
United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which Borrower has complied, to the reasonable satisfaction of Agent, with the Assignment of Claims Act, 31 USC
§3727), (ii) any state of the United States, or (iii) a Governmental Authority of Canada or any province thereof (exclusive, however, of Accounts 

  
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 with respect to which Borrower has complied, to the reasonable satisfaction of Agent, with any
applicable assignment of claims statute, including the Financial Administration Act (Canada)), 

(h)        Accounts with respect to which the Account Debtor is a creditor of a Loan
Party, has or has asserted a right of recoupment or setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of recoupment or setoff, or dispute, 

(i)        Accounts with respect to which the Account Debtor is subject to an
Insolvency Proceeding, is not Solvent, has gone out of business, or as to which any Loan Party has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor, unless the Account is
supported by an irrevocable letter of credit reasonably satisfactory to Agent (as to form, substance and issuer or domestic confirming bank) that has been delivered to Agent and is directly drawable by Agent, 

(j)        Accounts, the collection of which, Agent, in its Permitted Discretion,
believes to be doubtful, including by reason of the Account Debtor’s financial condition, 

(k)        Accounts that are not subject to a valid and perfected first priority
Agent’s Lien (subject to Permitted Liens having priority under applicable law for which reserves have been established pursuant to Section 2.2(b)), 

(l)        Accounts with respect to which (i) the goods giving rise to such
Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, 

(m)        Accounts with respect to which the Account Debtor is a Sanctioned Person
or Sanctioned Entity, or 
 (n)        Accounts that represent the right to receive
progress payments or other advance billings that are due prior to the completion of performance by Borrower of the subject contract for goods or services. 

“Eligible Credit Card Receivables” shall mean on any date of determination of the Borrowing Base, each
Credit Card Receivable that satisfies the following criteria at the time of creation and continues to meet the same at the time of such determination, as determined by the Agent in its Permitted Discretion: such Credit Card Receivable (i) has
been earned by performance and represents the bona fide amounts due to Borrower from a Credit Card Issuer or Credit Card Processor, and in each case originated in the ordinary course of business of such Borrower, and (ii) is not ineligible for
inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (h) below; provided, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to
address the results of any field examination performed by (or on behalf of) Agent from time to time after the Closing Date. Without limiting the foregoing, to qualify as an Eligible Credit Card Receivable, such Credit Card Receivable shall indicate
no Person other than Borrower as payee or remittance party. In determining the amount to be so included, the face amount of a Credit Card Receivable shall be reduced by, without duplication, to the extent not reflected in such face amount,
(i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional program 

  
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 allowances, price adjustments, finance charges or other allowances (including any amount that
Borrower may be obligated to rebate to a customer, a Credit Card Issuer or Credit Card Processor pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such
Credit Card Receivable but not yet applied by the Credit Parties to reduce the amount of such Credit Card Receivable. Any Credit Card Receivable included within any of the following categories shall not constitute an Eligible Credit Card Receivable:

 (a)        Credit Card Receivables which do not constitute an
“intangible” (as defined in the PPSA), as applicable or an Account; 

(b)        Credit Card Receivables that have been outstanding for more than five
Business Days from the date of sale; 
 (c)        Credit Card Receivables that are
not subject to a valid and perfected first priority Agent’s Lien (subject to Permitted Liens having priority under applicable law for which Reserves have been established pursuant to Section 2.2(b)); 

(d)        Credit Card Receivables which are disputed, are with recourse, or with
respect to which a claim, counterclaim, offset or chargeback has been asserted (to the extent of such dispute, claim, counterclaim, offset or chargeback); 

(e)        Credit Card Receivables as to which the Credit Card Issuer or Credit Card
Processor has the right under certain circumstances to require a Credit Party to repurchase the Credit Card Receivables from such Credit Card Issuer or Credit Card Processor; 

(f)        Credit Card Receivables due from a Credit Card Issuer or Credit Card
Processor which is the subject of any bankruptcy or insolvency proceedings; 

(g)        Credit Card Receivables which are not a valid, legally enforceable
obligation of the applicable Credit Card Issuer or Credit Card Processor with respect thereto; or 

(h)        Credit Card Receivables which do not conform to all representations,
warranties or other provisions in the Credit Documents relating to Credit Card Receivables in all material respects. 

“Eligible Inventory” means Inventory of Borrower that consists of finished goods held for sale in the
ordinary course of Borrower’s business and complies with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding
criteria set forth below; provided, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any field examination or appraisal performed by Agent from time to time after the
Closing Date. In determining the amount to be so included, Inventory shall be valued at cost on a basis consistent with Borrower’s historical accounting practices. An item of Inventory shall not be included in Eligible Inventory if: 

(a)        Borrower does not have good, valid, and marketable title thereto, 

  
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 (b)        Borrower does not have actual
and exclusive possession thereof unless such Inventory is Eligible Non-Possessory Inventory, 

(c)        it is not located at one of the locations in Canada or in the continental
United States set forth on Schedule E-1 (as such Schedule E-1 may be amended from time to time with the prior written consent of Agent) to the Agreement (or in-transit from one such location to another such location), 

(d)        it is in-transit to or from a location of Borrower (other than in-transit
from one location set forth on Schedule E-1 to the Agreement to another location set forth on Schedule E-1 to the Agreement), 

(e)        commencing 90 days after the date hereof, it is located on real property
leased by Borrower (other than store locations) or in a contract warehouse, in each case, unless either (1) it is subject to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and it is segregated or
otherwise separately identifiable from goods of others, if any, stored on the premises or (2) Agent has established a Landlord Reserve with respect to such location, 

(f)        it is the subject of a bill of lading or other document of title, 

(g)        it is not subject to a valid and perfected first priority Agent’s
Lien (subject to Permitted Liens having priority under applicable law for which Reserves have been established pursuant to Section 2.2(b)), 

(h)        it consists of personalized items or custom items which cannot be readily
re-sold to other customers, damaged or defective goods or “seconds”; 

(i)        it consists of goods that are obsolete, or goods that constitute spare
parts, packaging and shipping materials, supplies used or consumed in Borrower’s business, bill and hold goods, or Inventory acquired on consignment, or 

(j)        it is subject to third party trademark, licensing or other proprietary
rights, unless Agent is satisfied that such Inventory can be freely sold by Agent on and after the occurrence of an Event of a Default despite such third party rights. 

“Eligible Inventory Category” means the categories of Eligible Inventory set forth below or such other
categories as may be determined by Agent from time to time in its Permitted Discretion (including, without limiting the generality of Agent’s Permitted Discretion, it being understood that Agent shall have received an Inventory appraisal (and
such other Collateral reporting) satisfactory to Agent prior to the inclusion of any other categories or any adjustments to such categories in the calculations set forth on the Borrowing Base Certificate in connection with such implementation): 

 

					
		 	Eligible Inventory Category	 	
		 	Watches and Clocks	 	
		 	Fine Jewelry	 	
		 	Bridal	 	

  
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		 	Eligible Inventory Category	 	
		 	Giftware	 	
		 	Loose Stones	 	
		 	Silver	 	
		 	Gold	 	
		 	Service	 	
		 	Rolex Watches	 	
		 	Patek Philippe	 	
		 	Graff	 	

 “Eligible Non-Possessory Inventory” means Inventory of Borrower that is
otherwise Eligible Inventory and that satisfies the following criteria as determined in the Agent’s Permitted Discretion: 

(a)        the Person in possession of such Inventory is a bailee or processor or
agent of Borrower that is acceptable to Agent and is held pursuant to bailment, processor or agency arrangements acceptable to the Agent and such Person maintains exclusive possession of such Inventory until delivered to Borrower or placed in
transit to a location of Borrower identified on Schedule E-1, 

(b)        title in such Inventory has passed to Borrower, 

(c)        such Inventory is subject to a Collateral Access Agreement, processor
agreement or bailee agreement as required by the Agent, in each case in form and content satisfactory to the Agent and executed by the bailee, processor, agent or other Person in possession of such Inventory, as the case may be, and such Inventory
is segregated or otherwise separately identifiable from goods of others, if any, held by the Person in possession of such Inventory 

(d)        Agent in its Permitted Discretion (i) has established such Reserves
(including Reserves for processing and bailee charges and applicable customs charges and duties) as it considers necessary or appropriate with respect to such Inventory), and (ii) is satisfied that such Inventory is not subject to any
Person’s right or claim (other than those for which appropriate Reserves have been established) which is senior to, or pari passu with, the Agent’s Lien on such Inventory or may otherwise adversely impact the ability of the Agent to
realize upon such Inventory. 
 “Eligible Transferee” means (a) any Lender (other than a Defaulting
Lender), any Affiliate of any Lender (other than a Defaulting Lender) and any Related Fund of any Lender; (b) (i) a commercial bank organized under the laws of Canada or the United States or any state thereof, and having total assets in
excess of $250,000,000; (ii) a commercial bank organized under the laws of any other country or a political subdivision thereof; provided that (A) (x) such bank is acting through a branch or agency located in the United States
or Canada or (y) such bank is organized under the laws of a country that is a member of the Organization for Economic Cooperation and Development or a political subdivision of such country, and (B) such bank has total assets in excess of
$250,000,000; (c) any other entity (other than a natural person) that is an 

  
 - 18 - 

     

 “accredited investor” (as defined under the Securities Act (Quebec)) that
extends credit or buys loans as one of its businesses including insurance companies, investment or mutual funds and lease financing companies, and having total assets in excess of $250,000,000; and (d) during the continuation of an Event of
Default, any other Person approved by Agent, provided that notwithstanding the foregoing, “Eligible Transferee” shall not include (i) any Loan Party or any Affiliate or Subsidiary of any Loan Party, or (ii) a natural person. 

“Environmental Action” means any written complaint, summons, citation, notice, directive, order, claim,
litigation, investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials in
violation of Environmental laws (a) from any assets, properties, or businesses of Borrower, or any Subsidiary of Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any
facilities which received Hazardous Materials generated by Borrower, or any Subsidiary of Borrower, or any of their predecessors in interest. 

“Environmental Law” means any applicable federal, provincial, state, foreign or local statute, law, rule,
regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment, in each case, to the extent binding on Borrower or any of its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in
each case as amended from time to time. 
 “Environmental Liabilities” means all liabilities, monetary
obligations, losses, damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred
as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action. 

“Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities.

 “Equipment” means equipment (as that term is defined in the PPSA). 

“Equity Interests” means, with respect to a Person, all of the shares, options, warrants, interests,
participations, or other equivalents (regardless of how designated, whether voting or non-voting) of or in such Person, whether voting or nonvoting, including capital stock (or other ownership or profit interests or units) or preferred stock. 

“Event of Default” has the meaning specified therefor in Section 8 of the Agreement. 

“Excess Availability” means, as of any date of determination, the Borrowing Availability less the
then Combined Total Outstandings. 

  
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 “Excluded Taxes” means (i) any Tax imposed on the net
income or net profits of any Lender or any Participant (including any branch profits Taxes ), in each case imposed by the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender or such Participant is
organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender’s or such Participant’s principal office is located in each case as a result of a present or former connection between such
Lender or such Participant and the jurisdiction or taxing authority imposing the Tax (other than any such connection arising solely from such Lender or such Participant having executed, delivered or performed its obligations or received payment
under, or enforced its rights or remedies under the Agreement or any other Loan Document); (ii) Canadian federal withholding Taxes that would not have been imposed but for the Lender’s or a Participant’s failure to comply with the
requirements of Section 16.2 of the Agreement, (iii) any Canadian federal withholding Taxes that would be imposed on amounts payable to a Foreign Lender based upon the applicable withholding rate in effect at the time such Foreign
Lender becomes a party to the Agreement (or designates a new lending office), except that Excluded Taxes shall not include (A) any amount that such Foreign Lender (or its assignor, if any) was previously entitled to receive pursuant to
Section 16.1 of the Agreement, if any, with respect to such withholding Tax at the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), and (B) additional Canadian federal withholding Taxes
that may be imposed after the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), as a result of a Change in Law, rule, regulation, order or other decision with respect to any of the foregoing by any
Governmental Authority, and (iv) any Canadian federal withholding Taxes imposed as a result of any Lender or any Participant (A) not dealing at arm’s length (within the meaning of the Income Tax Act (Canada)) with a Loan Party (other
than where the non-arm’s length relationship arises on account of the Person having become a party to, received or perfected a security interest under or enforced any rights or in respect of any Loan Documents), or (B) being a
“specified shareholder” (within the meaning of Subsection 18(5) of the Income Tax Act (Canada)) of a Loan Party, or not dealing at arm’s length with such “specified shareholder” of a Loan Party. 

“Fee Letter” means that certain fee letter, dated as of even date with the Agreement, among Borrower and
Agent, in form and substance reasonably satisfactory to Agent, as amended, restated or supplemented from time to time. 

“Financial Officer” means the (i) chairman of the board, (ii) president, (iii) chief
executive officer, (iv) treasurer, (v) chief financial officer, (vi) director of financial planning and reporting or (vii) director, financial controller, in each case, of Borrower or, if the context requires, a Loan Party. 

“Fiscal Month” means each month ending on the last Saturday of each month other than in the case of a 53
week year, in which case two of the Fiscal Months in such Fiscal Year may end on a different day). 
 “Fiscal
Quarter” means each of the three month periods ending on the last Saturday of each of March, June, September and December of any year (other than in the case of a 53 week year, in which case one of the Fiscal Quarters in such Fiscal Year
may end on a different day). 

  
 - 20 - 

     

 “Fiscal Year” means the twelve month period ending on the last
Saturday of March of any year. 
 “Fixed Charge Condition” means, (a) with respect to any proposed
Restricted Payment, and, where applicable, any prepayment of Indebtedness, Borrower and its Subsidiaries would have a Fixed Charge Coverage Ratio on a pro forma basis after giving effect to such Restricted Payment or prepayment (with such prepayment
being treated as a component of Consolidated Fixed Charges for purposes of this definition) of equal to or greater than 1.1 to 1.0 for the most recently ended 12-month period immediately prior to the proposed date of consummation of such proposed
Restricted Payment, or prepayment of Indebtedness for which Agent has received financial statements required to be delivered under Section 5.1; and (b) with respect to any proposed Acquisition, the Fixed Charge Acquisition Condition has
been satisfied. 
 “Fixed Charge Acquisition Condition” means, with respect to any proposed Acquisition,
Borrower has provided Agent with written confirmation, supported by reasonably detailed calculations, that on a pro forma basis (including pro forma adjustments (including, without limitation, Restructuring and Integration Costs) arising out of
events which are directly attributable to such proposed Acquisition, are factually supportable, and are expected to have a continuing impact, in each case, determined as if the combination had been accomplished at the beginning of the relevant
period; such eliminations and inclusions to be mutually and reasonably agreed upon by Administrative Borrower and Agent) created by adding the historical combined financial statements of Borrower (including the combined financial statements of any
other Person or assets that were the subject of a prior Permitted Acquisition during the relevant period) to the historical consolidated financial statements of the Person to be acquired (or the historical financial statements related to the assets
to be acquired) pursuant to the proposed Acquisition, Borrower and its Subsidiaries would have a Fixed Charge Coverage Ratio of greater than 1.0 to 1.0 for the most recently ended 12-month period immediately prior to the proposed date of
consummation of such proposed Acquisition for which Agent has received financial statements, and;. 
 “Fixed Charge
Coverage Ratio” means, with respect to any fiscal period and with respect to Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP, the ratio of (a) Consolidated EBITDA for such period minus
(i) Capital Expenditures made (to the extent not already incurred in a prior period) or incurred during such period (to the extent such Capital Expenditures are not financed with proceeds of Indebtedness (other than Revolving Loans) or Equity
Interests), (ii) all federal, provincial, state and local income and capital Taxes paid in cash during such period and (iii) all Restricted Payments paid in cash or Cash Equivalents during such period to (b) Consolidated Fixed
Charges for such period. Notwithstanding the foregoing, the amount of Capital Expenditures and Taxes for the fiscal months ending prior to the date of this Agreement and used in calculating the Fixed Charge Coverage Ratio for the applicable twelve
fiscal month period after such date shall be in amounts agreed by the Agent and Borrower. 
 “Foreign
Lender” means any Lender or Participant that is not resident in Canada (within the meaning of the Income Tax Act (Canada) for the purposes of Part XIII of the Income Tax Act (Canada). 

  
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 “GAAP” means generally accepted accounting principles as in
effect from time to time in the United States, consistently applied, provided that Borrower shall be entitled to elect by notice to Agent and subject to Section 1.2 and such amendments to this Agreement as the Agent may reasonably require to
reflect the implementation of such election, Canadian accounting standards for private enterprises or International Financial Reporting Standards, in each case, as set out in the Chartered Professional Accountants Canada Handbook – Accounting.

 “Governing Documents” means, with respect to any Person, the certificate or articles of incorporation,
by-laws, or other organizational documents of such Person. 
 “Governmental Authority” means the
government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank). 

“Guarantor” means (a) as of the Closing Date, CGS and (b) thereafter, each Subsidiary of Borrower
that is or becomes a guarantor of all or any part of the Obligations. For certainty, CGS USA and Birks Jewellers Limited, Borrower’s Hong Kong Subsidiary, shall not be required to be a Guarantor. 

“Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified
pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify
substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas
liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any
radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 

“Hedge Agreement” means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or
any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement. 

  
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 “Hedge Provider” means any Revolving Lender or any of its
Affiliates which is a party to a Hedge Agreement in accordance with the Revolving Credit Agreement. 
 “Hedge
Termination Value” means, in respect of any one or more Hedging Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Hedging Agreements, (a) for any date on or after the date
such Hedging Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Hedging Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedging Agreements (which may include a Revolving Lender or any Affiliate or branch
of a Revolving Lender). 
 “Indebtedness” as to any Person means (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial
products, (c) all obligations of such Person as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or liability is assumed,
(e) all obligations of such Person to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and payable in accordance with customary trade practices to the extent not overdue by more
than 90 days from the date of the original invoice therefor and, for the avoidance of doubt, other than royalty payments payable in the ordinary course of business in respect of non-exclusive licenses, but including, for the avoidance of doubt,
obligations in respect of credit cards, credit card processing services, debit cards, stored value cards and commercial cards (including so-called “commercial cards”, “procurement cards” or “p-cards”), and any earn-out
or similar obligations to the extent required to be recognized as a liability on the balance sheet of such Person under GAAP, (f) all monetary obligations of such Person owing under Hedge Agreements (which amount shall be calculated based on
the Hedge Termination Value as of the date of determination), (g) any Disqualified Equity Interests of such Person, and (h) any obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,
endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses (a) through (g) above. For purposes of this definition, (i) the amount of any Indebtedness
represented by a guarantee or other similar instrument shall be the lesser of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of
the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness which is limited or is non-recourse to a Person or for which recourse is limited to an identified asset shall be valued at the lesser of (A) if applicable,
the limited amount of such obligations, and (B) if applicable, the fair market value of such assets securing such obligation. 

“Indemnified Liabilities” has the meaning specified therefor in Section 10.3 of the Agreement.

 “Indemnified Person” has the meaning specified therefor in Section 10.3 of the Agreement.

  
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 “Indemnified Taxes” means (a) Taxes, other than Excluded
Taxes, imposed on or with respect to any payment made by, or on account of or with respect to any obligation of, any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes. 

“Information Certificate” means a certificate in the form of Exhibit I-1 to the Agreement. 

“Insolvency Laws” means, collectively, (i) the Bankruptcy Code, (ii) the Bankruptcy and
Insolvency Act (Canada), (iii) the Companies’ Creditors Arrangement Act (Canada), (iv) the Winding-Up and Restructuring Act (Canada), (v) corporate statutes to the extent such statute is used by a Person to
propose an arrangement involving the compromise of the claims of creditors; and (vi) any similar legislation in a relevant jurisdiction, in each case as applicable and as in effect from time to time. 

“Insolvency Proceeding” means any proceeding commenced by or against any Person under any Insolvency Law or
under any other provincial, state or federal bankruptcy or insolvency law, each as now and hereafter in effect, any successors to such statutes, and any similar laws in any jurisdiction including, without limitation, any laws relating to assignments
for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief and any law permitting a debtor to obtain a stay or a
compromise of the claims of its creditors. 
 “Intellectual Property” means all intellectual and similar
Property of a Person, including inventions, designs, patents, patent applications, copyrights, trademarks, service marks, trade names, trade secrets, confidential or proprietary information, customer lists, know-how, software and databases; all
embodiments or fixations thereof and all related documentation, registrations and franchises; all books and records describing or used in connection with the foregoing; and all licenses or other rights to use any of the foregoing. 

“Intellectual Property Claim” means any claim or assertion (whether in writing, by suit or otherwise) that
any Loan Party’s or any Subsidiary’s ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual Property or other Property violates another Person’s Intellectual Property. 

“Intercompany Subordination Agreement” means an intercompany subordination agreement executed and delivered
by Borrower, each other Loan Party, certain other Subsidiaries of Borrower and Agent, the form and substance of which is reasonably satisfactory to Agent concurrently with the making of the first intercompany advance to, or other Investment in,
Borrower or another Loan Party by a Loan Party or other Subsidiary of Borrower. 
 “Intercreditor
Agreement” means the Intercreditor Agreement dated on or about the date hereof, by and among the Agent and the Revolving Agent, and acknowledged by each Loan Party, as it may be amended, supplemented or otherwise modified from time to time.

 “Interest Payment Date” means the first (1st) day of each month commencing on the first day of the
month immediately following the Closing Date and continuing thereafter until the Maturity Date. 

  
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 “Inventory” means inventory (as that term is defined in the
PPSA). 
 “Inventory Net Recovery Percentage” means, as of any date of determination for each Eligible
Inventory Category, the percentage of the cost of Borrower’s Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of all associated costs and expenses of such liquidation, such percentage to be
determined as to each category of Inventory and to be as specified in the most recent appraisal received by Agent from an appraisal company selected by Agent. 

“Inventory Reserves” means, as of any date of determination, (a) Landlord Reserves, and (b) those
Reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.2(b), to establish and maintain (including Reserves for slow moving Inventory and Inventory shrinkage) with respect to Eligible Inventory.

 “Investment” means, with respect to any Person, any investment by such Person in any other Person
(including Affiliates) in the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and (b) bona
fide accounts receivable arising in the ordinary course of business), or assumption, purchase or other acquisitions of Indebtedness, Equity Interests (including any partnership or joint venture interest), the acquisition of all or substantially all
of the assets of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. The amount of any Investment shall
be the original cost of such Investment plus the cost of all additions thereto (net of all returns on such Investments except with respect to Permitted Acquisitions; provided that the amount of such returns shall be disregarded for purposes
of calculating capacity under any cap or basket with respect to Investments to the extent in excess of such cap or basket), without any adjustment for increases or decreases in value, or write-ups, write-downs, or write-offs with respect to such
Investment. 
 “IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 

“Landlord Reserve” means, as to each location at which Borrower has Inventory (other than store locations)
or books and records located and as to which a Collateral Access Agreement has not been received by Agent, a reserve in an amount equal to the greater of (a) the number of months’ rent for which the landlord will have, under applicable
law, a Lien in the Inventory of Borrower to secure the payment of rent or other amounts under the lease relative to such location, or (b) 3 months’ rent under the lease relative to such location. 

“Lender” has the meaning set forth in the preamble to the Agreement, and shall also include any other Person
made a party to the Agreement pursuant to the provisions of Section 13.1 of the Agreement and “Lenders” means each of the Lenders or any one or more of them. 

“Lender Group” means each of the Lenders and Agent, or any one or more of them. 

  
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 “Lender Group Expenses” means all (a) costs or expenses
(including Taxes and insurance premiums) required to be paid by Borrower or any of its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) reasonable and documented out-of-pocket fees or
charges paid or incurred by Agent in connection with the Lender Group’s transactions with Borrower and its Subsidiaries under any of the Loan Documents, including, photocopying, notarization, couriers and messengers, telecommunication, public
record searches, filing fees, recording fees, publication, real estate surveys, real estate title policies and endorsements, and environmental audits, (c) Agent’s reasonable and customary fees and charges imposed or incurred in connection
with any background checks or OFAC/PEP searches related to Borrower or its Subsidiaries, (d) Agent’s reasonable and customary fees and charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of
funds) to or for the account of Borrower (whether by wire transfer or otherwise), together with any reasonable and documented out-of-pocket costs and expenses incurred in connection therewith, (e) reasonable and customary charges imposed or
incurred by Agent resulting from the dishonor of cheques payable by or to any Loan Party, (f) reasonable and documented out-of-pocket costs and expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the
Loan Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof,
irrespective of whether a sale is consummated, (g) field examination, appraisal, and valuation fees and expenses of Agent related to any field examinations, appraisals, or valuation to the extent of the fees and charges (and up to the amount of
any limitation provided in Section 2.5(c) of the Agreement, (h) Agent’s reasonable and documented out-of-pocket costs and expenses (including reasonable and documented legal fees and expenses) relative to third party claims or any
other lawsuit or adverse proceeding paid or incurred, whether in enforcing or defending the Loan Documents or otherwise in connection with the transactions contemplated by the Loan Documents, Agent’s Liens in and to the Collateral, or the
Lender Group’s relationship with Borrower or any of its Subsidiaries, (i) Agent’s reasonable and documented out-of-pocket costs and expenses (including reasonable and documented out-of-pocket legal fees and due diligence expenses)
incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating (including reasonable and documented out-of-pocket costs and expenses relative to the rating of the Term Loan, CUSIP,
DXSyndicateTM, SyndTrak or other communication costs incurred in connection with a syndication of the loan facilities), or amending, waiving, or modifying the Loan Documents, and (j) Agent’s and each Lender’s reasonable and
documented out-of-pocket costs and expenses (including lawyers, accountants, consultants, and other advisors fees and expenses (limited in the case of lawyers to one law firm for Agent (and such other specialty counsel or local counsel as Agent
reasonably elects to employ) and (absent any additional counsel as may be needed based on conflicts of interest) one law firm for the Lenders (in the aggregate) other than the Agent)) incurred in terminating, enforcing (including lawyers,
accountants, consultants, and other advisors fees and expenses (limited in the case of lawyers to one law firm for Agent (and such other specialty counsel or local counsel as Agent reasonably elects to employ) and (absent any additional counsel as
may be needed based on conflicts of interest) one law firm for the Lenders (in the aggregate) other than the Agent) incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning Borrower or
any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether a lawsuit or other 

  
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 adverse proceeding is brought, or in taking any enforcement action or any Remedial Action with
respect to the Collateral. 
 “Lender Group Representatives” has the meaning specified therefor in
Section 17.8 of the Agreement. 
 “Lender-Related Person” means, with respect to any Lender,
such Lender, together with such Lender’s Affiliates, officers, directors, employees, lawyers, and agents. 

“Letter of Credit Usage” has the meaning specified therefor in the Revolving Credit Agreement. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement,
encumbrance, easement, lien (statutory or other), security interest, hypothec or other security arrangement and any other preference, priority, or preferential arrangement in the nature of a security interest of any kind or nature whatsoever,
including any conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing. 

“Loan” means the Term Loan, made (or to be made) hereunder. 

“Loan Documents” means the Agreement, the Control Agreements, any Borrowing Base Certificate, the Fee
Letter, the Intercreditor Agreement, the Quebec Intercreditor Agreement, the Credit Card Notifications, the Intercompany Subordination Agreements, the Mortgages, the Canadian Security Documents, any guaranties executed by any Loan Party, any note or
notes executed by Borrower in connection with the Agreement and payable to any member of the Lender Group, and any other instrument or agreement entered into, now or in the future, by any Loan Party or any of its Subsidiaries and any member of the
Lender Group in connection with the Agreement. 
 “Loan Party” means Borrower or any Guarantor. 

“Loan to Value Reserves” - as of the date of determination by the Agent, from time to time an amount equal
to the greater of (a) $0; and (b) the amount, if any, by which the outstanding amount of the Term Loan at such time exceeds the difference between (1) clauses (a), (b), (c) and (d) (excluding the Loan to Value Reserve) set
forth in the definition of Borrowing Base and (2) clauses (a), (b), (c) and (d) (excluding the Loan to Value Reserve) set forth in the definition of “Borrowing Base” as defined in the Revolving Credit Agreement. 

“Management Agreement” means that certain Management Consulting Services Agreement, dated as of
November 20, 2015, between Borrower and Gestofi S.A., in each case, as such agreement may be amended from time to time in accordance with the terms hereof and the Management Subordination Agreement. 

“Management Debt” means collectively, all obligations (including, without limitation, retainer fees and
indemnification expenses) of Borrower to Gestofi S.A. pursuant to the Management Agreement. 

  
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 “Management Subordination Agreement” means that certain
Management Subordination Agreement, dated as of the Closing Date, among Borrower, Gestofi S.A. and Agent, in each case, as the same may hereafter be amended, restated, supplemented or otherwise modified with the consent of Agent. 

“Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve System of the
United States as in effect from time to time. 
 “Material Adverse Effect” means (a) a material
adverse effect in the business, operations, assets, liabilities or financial condition of Loan Parties, taken as a whole, (b) a material impairment of Loan Parties’ ability to perform their payment or other material obligations under the
Loan Documents to which they are parties or of the Lender Group’s ability to enforce the Obligations or realize upon a material portion of the Collateral (other than as a result of an action taken or not taken that is solely in the control of
Agent), or (c) a material impairment of the enforceability or priority of Agent’s Liens with respect to all or a material portion of the Collateral. 

“Material Contract” means any agreement or arrangement to which any Loan Party or any of its Subsidiaries is
party (other than the Loan Documents) (a) for which breach, termination, nonperformance or failure to renew could reasonably be expected to have a Material Adverse Effect or (b) that relates to Indebtedness in an aggregate amount of the
Canadian Dollar Equivalent of $2,500,000 or more. Notwithstanding anything to the contrary contained in this Agreement, the term “Material Contract” shall include, for all purposes, each of the following: (i) the Revolving Loan
Documents (and any refinancings, renewals or extensions thereof); (ii) the Quebec Subordinated Debt Documents, (iii) the Rolex Canada Documents, (iv) the Montrovest Debt Documents, (v) the Management Agreement; (vi) any
Additional Subordinated Debt Documents; and (vii) the US Divestiture Agreements. 
 “Maturity Date”
means October 21, 2022. 
 “Maximum Credit Amount” has the meaning specified in the Revolving Credit
Agreement. 
 “Modified Fixed Charge Coverage Ratio” means, with respect to any fiscal period and with
respect to Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP, the ratio of (a) Consolidated EBITDA for such period to (b) the sum of (i) Consolidated Interest Expense, and (ii) Capital
Expenditures made (to the extent not already incurred in a prior period) or incurred during such period (to the extent such Capital Expenditures are not financed with proceeds of Indebtedness (other than Revolving Loans) or Equity Interests), for
such period. 
 “Montrovest” means Montrovest B.V. and following the Montrovest Merger, Montel
Sàrl. 
 “Montrovest Debt” means all Indebtedness owing to Montrovest under the Montrovest Debt
Documents that constitutes Permitted Indebtedness. 

  
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 “Montrovest Debt 2017” means Montrovest Debt incurred by the
Borrower to Montrovest as of July 28, 2017 to the extent such Indebtedness constitutes Permitted Indebtedness in an aggregate principal amount equal to US$2,500,000. 

“Montrovest Debt Documents” means, collectively, (i) the Amended and Restated Cash Advance Agreement
dated as of June 8, 2011 by and between Borrower and Montrovest, (original principal amount of US$2,000,000), (ii) the Amended and Restated Cash Advance Agreement dated as of June 8, 2011 by and between Borrower and Montrovest,
(original principal amount of US$3,000,100), (iii) the Loan Agreement executed on July 28, 2017, with effect as of July 20, 2017 by and between Borrower and Montrovest and (iv) any other loan agreement entered into by and between
Borrower and Montrovest; provided that any such other loan agreement shall be in form, scope and substance and on terms satisfactory to Agent and the Required Lenders and shall be subject to the Montrovest Subordination Agreement. 

“Montrovest Merger” means the merger, pursuant to the laws of Netherlands, of Montrovest B.V. into Montel
Sàrl. 
 “Montrovest Subordination Agreement” means collectively, (i) Section 5.6 of the
Montrovest Debt Documents referred to in clauses (i) and (ii) of the definition of “Montrovest Debt Documents”, and (ii) the Amended and Restated Postponement and Subordination Agreement, dated as of the Closing Date, among
the Borrower, Montrovest, in each case as hereafter amended, restated, supplemented or otherwise modified with the consent of Agent and the Required Lenders. 

“Moody’s” has the meaning specified therefor in the definition of Cash Equivalents. 

“Mortgages” means, individually and collectively, one or more mortgages, deeds of trust, or deeds to secure
debt, executed and delivered by Borrower or one of its Subsidiaries in favor of Agent, in form and substance reasonably satisfactory to Agent, that encumber the Real Property Collateral, if any. 

“Non-Consenting Lender” has the meaning specified therefor in Section 14.2(a) of the Agreement.

 “Non-Defaulting Lender” means each Lender other than a Defaulting Lender. 

“Obligations” means all loans (including the Term Loan and any Protective Advances)), debts, principal,
interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), premiums, liabilities (including all
amounts charged to the Loan Account pursuant to the Agreement), obligations (including indemnification obligations) of any Loan Party, fees (including the fees provided for in the Fee Letter) of any Loan Party, Lender Group Expenses (including any
fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding) of any Loan Party, guaranties of any Loan Party, and all
covenants and duties of any other kind and description owing by any Loan Party arising out of, under, pursuant to, in connection with, or evidenced by 

  
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 the Agreement or any of the other Loan Documents and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that any Loan Party is required to pay or
reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents. Without limiting the generality of the foregoing, the Obligations under the Loan Documents include the obligation to pay (i) the principal of the Term
Loan, (ii) the interest accrued on the Term Loan, (iii) Lender Group Expenses of any Loan Party, (iv) fees payable by any Loan Party under the Agreement or any of the other Loan Documents, and (v) indemnities and other amounts
payable by any Loan Party under any Loan Document. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior
and subsequent to any Insolvency Proceeding. 
 “OFAC” means The Office of Foreign Assets Control of the
U.S. Department of the Treasury. 
 “Organizational Documents” means with respect to any Person, its
charter, certificate or articles of incorporation, bylaws, articles of organization, limited liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership, certificate of
formation, voting trust agreement, or similar agreement or instrument governing the formation, organization or operation of such Person. “Originating Lender” has the meaning specified therefor in Section 13.1(e). 

“Other Taxes” has the meaning specified therefor in Section 16.1 of the Agreement. 

“Participant” has the meaning specified therefor in Section 13.1(e) of the Agreement. 

“Participant Register” has the meaning set forth in Section 13.1(i) of the Agreement. 

“Patriot Act” has the meaning specified therefor in Section 4.13 of the Agreement. 

“Permitted Acquisition” means any Acquisition after the Closing Date by a Borrower or another Loan Party so
long as: 
 (a)     no Default or Event of Default shall have occurred and be continuing or would
result from the consummation of the proposed Acquisition and the proposed Acquisition is consensual, 
 (b)
    the purchase consideration payable in respect of all Permitted Acquisitions (including the proposal acquisition and deferred payment obligations) shall not exceed $10,000,000 in the aggregate during the term of this
Agreement, 
 (c)     Borrower has provided Agent with its due diligence package relative to the
proposed Acquisition, including forecasted balance sheets, profit and loss statements, and 

  
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 cash flow statements of the Person or assets to be acquired, all prepared on a basis consistent
with such Person’s (or assets’) historical audited financial statements (or if audited financial statements are not available, a quality of earnings report acceptable to the Agent acting reasonably), together with appropriate supporting
details and a statement of underlying assumptions for the 1 year period following the date of the proposed Acquisition, on a quarter by quarter basis), in form and substance (including as to scope and underlying assumptions) reasonably satisfactory
to Agent, 
 (d)       Borrower shall have demonstrated, after giving effect to the
consummation of such proposed Acquisition, satisfaction of the applicable Restricted Payment Conditions, 
 (e)
      Borrower has provided Agent with written notice of the proposed Acquisition at least 5 Business Days prior to the anticipated closing date of the proposed Acquisition and, not later than 5 Business Days prior to
the anticipated closing date of the proposed Acquisition, copies of the acquisition agreement and other material documents relative to the proposed Acquisition, which agreement and documents must be reasonably acceptable to Agent, 

(f)       the assets being acquired (other than a de minimis amount of assets in relation to
Borrower’s and its Subsidiaries’ total assets), or the Person whose Equity Interests are being acquired, are useful in or engaged in, as applicable, the business of Borrower and its Subsidiaries or a business reasonably related thereto,

 (g)       the assets being acquired (other than a de minimis amount of assets in relation
to the assets being acquired) are located within the United States or Canada, or the Person whose Equity Interests are being acquired is organized in a jurisdiction located within the United States or Canada, 

(h)       the subject assets or Equity Interests, as applicable, are being acquired directly by
a Borrower or one of its Subsidiaries that is a Loan Party, and, in connection therewith, the applicable Loan Party shall have complied with Section 5.11 or 5.12 of the Agreement, as applicable, of the Agreement and, in the case
of an acquisition of Equity Interests, the applicable Loan Party shall have demonstrated to Agent that the new Loan Parties have received consideration sufficient to make the joinder documents binding and enforceable against such new Loan Parties,
and 
 (i)       Agent shall have received prior to or concurrent with the proposed
Acquisition, a certificate signed by an officer of Administrative Borrower certifying compliance with the foregoing conditions. 

“Permitted Discretion” means a determination made in the exercise of reasonable (from the perspective of a
secured asset-based lender) business judgment and made in good faith. 
 “Permitted Dispositions” means:

 (a)       sales, abandonment, or other dispositions of Equipment that is substantially
worn, damaged, or obsolete or no longer used or useful in the ordinary course of 

  
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 business and leases or subleases of Real Property not useful in the conduct of the business of
Borrower and its Subsidiaries, 
 (b)       sales of Inventory to buyers in the ordinary
course of business (for avoidance of doubt, excluding sales by a Loan Party to another Loan Party), 
 (c)
      the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of the Agreement or the other Loan Documents, 

(d)       the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and
other intellectual property rights in the ordinary course of business, 
 (e)       the
granting of Permitted Liens, 
 (f)       any involuntary loss, damage or destruction of
property, 
 (g)       any involuntary condemnation, seizure or taking, by exercise of the
power of eminent domain or otherwise, or confiscation or requisition of use of property, 

(h)      (i) the sale or issuance of Qualified Equity Interests of Borrower, (ii) the sale
or issuance of any Qualified Equity Interests of Loan Party to another Loan Party, and (iii) the sale or issuance of Equity Interests (other than Disqualified Equity Interests) of any Subsidiary of a Loan Party that is not a Loan Party to a
Loan Party or any other Subsidiary of a Loan Party, in each case subject to the terms set forth herein, 

(i)      (i) the lapse (other than at the end of their respective terms) of registered
patents, trademarks, copyrights and other intellectual property of Borrower or any of its Subsidiaries that are, in the reasonable business judgment of such Loan Party, no longer material or no longer used in the business of Borrower or Subsidiary
to the extent not economically desirable in the conduct of its business or (ii) the abandonment of patents, trademarks, copyrights, or other intellectual property rights in the ordinary course of business so long as (in each case under clauses
(i) and (ii)), (A) with respect to copyrights, such copyrights are not material revenue generating copyrights, and (B) such lapse is not materially adverse to the interests of the Lender Group, 

(j)       the making of Restricted Payments that are expressly permitted to be made pursuant to
the Agreement, 
 (k)       to the extent constituting dispositions, the making of Permitted
Investments that are expressly permitted to be made pursuant to the Agreement. 
 (l)
      so long as no Event of Default has occurred and is continuing or would immediately result therefrom, transfers of assets (i) from any Loan Party (other than transfer of Inventory, Accounts and Credit Card
Receivables by Borrower) to another Loan Party, (ii) from a Loan Party to Borrower; provided, that the consideration received for such assets to be so disposed is at least equal to the fair market value thereof and (iii) from any
Subsidiary of Borrower that is not a Loan Party to any other Subsidiary of Borrower, 

  
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 (m)       cancellations, terminations or
surrenders of any lease, 
 (n)       the termination or unwinding of any Hedge Agreement in
accordance with its terms, 
 (o)       dispositions by any Subsidiary of its own Equity
Interests to qualify directors where required by applicable law, 
 (p)       dispositions
permitted by Section 6.4, 
 (q)       dispositions or sales of assets, or sell
all of the assets of any division or line of business of Borrower or any of its Subsidiaries, in each case, having a fair market value not in excess of $1,000,000 per Fiscal Year; provided that, in each case, (i) the consideration
received for such assets shall be in an amount at least equal to the fair market value thereof; and (ii) at least 75% of the consideration received shall be cash or Cash Equivalents, 

(r)       grants of licenses with respect to intellectual property, or leases or subleases of
other property, in the ordinary course of business which licenses, leases and subleases do not materially interfere with the ordinary conduct of the business of Borrower and its Subsidiaries, taken as a whole; 

(s)       dispositions of Permitted Factoring Facility Accounts to the extent related to a
Permitted Factoring Facility; and 
 (t)       Permitted Sale Leaseback Transactions. 

“Permitted Factoring Facility” means an unsecured factoring facility established by the Borrower which
provides for the sale of Permitted Factoring Facility Accounts on a non- recourse basis. 
 “Permitted Factoring
Facility Accounts” shall mean Accounts (whether now existing or arising in the future) which are due to Borrower from Account Debtors located outside of Canada and the United States and which are not otherwise Eligible Accounts. 

“Permitted Indebtedness” means: 

(a)       Indebtedness evidenced by the Agreement or the other Loan Documents, 

(b)       the Revolving Loan Debt in an amount not to exceed the amount permitted under the
Intercreditor Agreement, provided that, for the avoidance of doubt, the aggregate Hedge Termination Value of Secured Hedging Agreement Obligations that constitute Bank Product Debt (as such term is defined in the Revolving Credit Agreement)
shall not exceed $1,500,000 at any time outstanding; 
 (c)       Indebtedness (including
Capital Leases) set forth on Schedule 4.14 to this Agreement and any Refinancing Indebtedness in respect of such Indebtedness, 

  
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 (d)       endorsement for collection, deposit or
negotiation and warranties of products or services, in each case incurred in the ordinary course of business, 
 (e)
      the Quebec Subordinated Debt in an outstanding amount not to exceed $2,000,000 at any time and solely to the extent that such Indebtedness is subject to the Quebec Subordination Agreement; provided that
(i) the Quebec Subordinated Debt Documents shall be in form and substance reasonably satisfactory to the Agent and the Required Lenders and (ii) the Quebec Subordinated Debt shall be subject to the Quebec Subordination Agreement, 

(f)       the incurrence by Borrower or its Subsidiaries of Indebtedness under Hedge Agreements
that are incurred for the bona fide purpose of hedging the interest rate, commodity, or foreign currency risks associated with Borrower’s and its Subsidiaries’ operations and not for speculative purposes; provided that the aggregate Hedge
Termination Value of Secured Hedging Obligations shall not exceed $5,000,000 at any one time, 
 (g)
      Permitted Intercompany Advances, 
 (h)
      Indebtedness incurred after the Closing Date in connection with the acquisition, lease or leasing after the Closing Date of any equipment or fixtures by a Loan Party or under any Capital Lease or Permitted Sale
Leaseback Transaction, as well as Permitted Purchase Money Indebtedness secured by Purchase Money Liens, provided that the aggregate principal amount of such Indebtedness of the Loan Parties shall not exceed the Canadian Dollar Equivalent of
$5,000,000 at any one time, 
 (i)       unsecured Indebtedness constituting the Management
Debt to the extent subject to the Management Subordination Agreement, 
 (j)       secured
Indebtedness in an aggregate amount not to exceed $7,500,000 at any time, provided that that (a) such Indebtedness is subordinated in right and time of payment to the Obligations and in Lien priority to the Agent’s Liens on terms and
conditions satisfactory to the Agent and Required Lenders; and (b) the Restricted Payment Conditions are satisfied at the time of the incurrence of such Indebtedness; 

(k)       Additional Subordinated Debt incurred by Borrower or any of its Subsidiaries in an
aggregate outstanding amount not to exceed $15,000,000 at any one time; and 
 (l)
      Indebtedness under any Permitted Factoring Facility. 
 “Permitted Intercompany
Advances” means loans and other Investments made by (a) a Loan Party to another Loan Party, (b) a Subsidiary of Borrower that is not a Loan Party to another Subsidiary of Borrower that is not a Loan Party, (c) a Subsidiary of
Borrower that is not a Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany Subordination Agreement, (d) to the extent permitted by Section 4.27, advances made by Borrower to CGS US for the
purposes permitted thereunder and (e) except as otherwise permitted under paragraph (d) hereof, Loan Parties to Subsidiaries of Borrower that are not Loan Parties in an aggregate outstanding amount not to exceed $50,000. 

“Permitted Investments” means: 

  
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 (a)       Investments in cash and Cash
Equivalents, 
 (b)       Investments in negotiable instruments deposited or to be deposited
for collection in the ordinary course of business, 
 (c)       advances or extensions of
credit made in connection with purchases of goods or services in the ordinary course of business, 
 (d)
      Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary course of business or owing to any Loan Party or any of its Subsidiaries as a result of
Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or any of its Subsidiaries, 

(e)       Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date
and set forth on Schedule P-1 to the Agreement and any modification, replacement, renewal or extension thereof; provided that the amount of the original Investment under this clause (e) is not increased except by the terms of such
Investment or as otherwise permitted pursuant to the definition of Permitted Investments, 

(f)      (i) guarantees permitted under the definition of Permitted Indebtedness, and
(ii) other guarantees entered into in the ordinary course of business in respect of real property leases so long as such guarantees under this clause (ii), if made by a Loan Party, are in respect of obligations of another Loan Party, 

(g)       Permitted Intercompany Advances, 

(h)       Equity Interests or other securities acquired in connection with the satisfaction or
enforcement of Indebtedness or claims due or owing to a Loan Party or any of its Subsidiaries (in bankruptcy of customers or suppliers or otherwise outside the ordinary course of business) or as security for any such Indebtedness or claims, 

(i)       deposits of cash made to secure performance of operating leases, utilities, and other
similar deposits in the ordinary course of business, 
 (j)       Permitted Acquisitions,

 (k)       Investments resulting from entering into agreements relative to Indebtedness
that is permitted under clause (e) of the definition of Permitted Indebtedness, 
 (l)
      equity Investments by any Loan Party in any Subsidiary of such Loan Party which is required by law to maintain a minimum net capital requirement or as may be otherwise required by applicable law, 

(m)       Investments held by a Person acquired in a Permitted Acquisition to the extent that
such Investments were not made in contemplation of or in connection with such Permitted Acquisition and were in existence on the date of such Permitted Acquisition, 

  
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 (n)       Investments consisting of non-cash
consideration received in connection with Permitted Dispositions, 
 (o)       non-cash loans
and advances to employees, officers, and directors of Borrower or any of its Subsidiaries for the purpose of purchasing Equity Interests in Borrower so long as the proceeds of such loans are used in their entirety to purchase such Equity Interests
in Borrower, and (ii) loans and advances to employees and officers of Borrower or any of its Subsidiaries in the ordinary course of business for any other business purpose and in an aggregate amount not to exceed $200,000 at any one time,

 (p)       so long as no Event of Default has occurred and is continuing or would result
therefrom, any other Investments in an aggregate amount not to exceed $1,000,000 during the term of the Agreement, 

(q)       Investments (other than Acquisitions) made by a Borrower or a Subsidiary thereof made
solely with cash proceeds received by Borrower and contributed to Borrower or Subsidiary substantially concurrently with the making of such Investments in connection with the issuance of Equity Interests (other than Disqualified Equity Interests) of
Borrower, and 
 (r)       Investments by a Borrower or its Subsidiaries held by a Person
that becomes a Subsidiary (or is merged, amalgamated or consolidated with or into a Borrower or a Subsidiary) pursuant to Section 6.9 after the Closing Date to the extent that such Investments were not made in contemplation of such
acquisition, merger, amalgamation or consolidation. 
 “Permitted Liens” means: 

(a)       Liens granted to, or for the benefit of, Agent to secure the Obligations, 

(b)       Liens securing the Revolving Loan Debt, subject to the provisions of the
Intercreditor Agreement; 
 (c)       Liens or claims for unpaid Taxes that either
(i) are not yet delinquent, or (ii) do not have priority over Agent’s Liens and the underlying Taxes are the subject of Permitted Protests, 

(d)       judgment Liens arising solely as a result of the existence of judgments, orders,
requirements to pay or awards that do not constitute an Event of Default under Section 8.3 of the Agreement, 

(e)       Liens set forth on Schedule P-2 to the Agreement; provided, that to
qualify as a Permitted Lien, any such Lien described on Schedule P-2 to the Agreement shall only secure the Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect thereof, 

(f)       the interests of lessors under operating leases and non-exclusive licensors under
license agreements, 

  
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 (g)       Capital Leases and other Permitted
Purchase Money Indebtedness described in paragraph (g) of the definition of Permitted Indebtedness so long as (i) such Lien qualifies as a Purchase Money Lien under the terms of this Agreement; 

(h)       Liens arising by operation of law in favor of warehousemen, landlords, carriers,
mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted
Protests, 
 (i)       Liens on amounts deposited to secure a Borrower’s or any of its
Subsidiaries’ obligations in connection with workers’ compensation or other unemployment insurance, 
 (j)
      Liens on amounts deposited to secure a Borrower’s or any of its Subsidiaries’ obligations in connection with the making or entering into of bids, tenders, or leases in the ordinary course of business and
not in connection with the borrowing of money, 
 (k)       Liens on amounts deposited to
secure a Borrower’s or any of its Subsidiaries’ reimbursement obligations with respect to surety or appeal bonds obtained in the ordinary course of business, 

(l)       with respect to any Real Property, easements, rights of way, and zoning restrictions
that do not materially interfere with or impair the use or operation thereof, 
 (m)
      non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, 

(n)       Liens that are replacements of Permitted Liens to the extent that the original
Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness, 

(o)       rights of setoff or bankers’ liens upon deposits of funds in favor of banks or
other depository institutions, solely to the extent incurred in connection with the maintenance of such Deposit Accounts in the ordinary course of business, 

(p)       Liens granted in the ordinary course of business on the unearned portion of insurance
premiums securing the financing of insurance premiums to the extent the financing is permitted under the definition of Permitted Indebtedness, 

(q)       Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods, 
 (r)
      Liens solely on any cash earnest money deposits made by Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement with respect to a Permitted Acquisition, 

(s)       Liens assumed by Borrower or any of its Subsidiaries in connection with a Permitted
Acquisition that secure Acquired Indebtedness, 

  
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 (t)       Liens arising from precautionary PPSA
financing statements or similar filings made in respect of operating leases entered into by any Loan Party, 
 (u)
      Leases or subleases granted to others not interfering in any material respect with the business of Borrower and its Subsidiaries, taken as a whole, 

(v)       security deposits to public utilities or to any municipalities or Governmental
Authorities or other public authorities when required by the utilities, municipalities or Governmental Authorities or other public authorities in connection with the supply of services or utilities, 

(w)       Liens arising out of any conditional sale, title retention, consignment or other
similar arrangement for the sale of goods in the ordinary course of business entered into by Borrower or its Subsidiaries in the ordinary course of business to the extent such Liens secure only the unpaid purchase price for such goods and related
expenses do not attach to any assets other than the goods subject to such arrangements and not otherwise prohibited by this Agreement so long as any Inventory or Accounts of Borrower subject to such Liens are reported as ineligible on the relevant
Borrowing Base Certificate, 
 (x)       the Rolex Canada Liens and any Liens in favor of
Rolex Canada Ltd. to the extent constituting valid and Purchase Money Liens in accordance with Applicable Law and subject to the Rolex Canada Subordination Agreement, to the extent applicable, 

(y)       Liens securing the Quebec Subordinated Debt permitted pursuant to paragraph
(d) of the definition of Permitted Indebtedness, provided that such Liens shall, at all times be, subordinate and junior in priority to the Liens securing the Obligations pursuant to the Quebec Subordination Agreement, 

(z)       Liens securing the Permitted Indebtedness described in paragraph (i) of the
definition thereof provided that such Liens shall, at all times, be subordinate and junior in priority to the Liens securing the Obligations; and 

(aa)       Liens on Permitted Factoring Facility Accounts securing a Permitted Factoring
Facility. 
 “Permitted Protest” means the right of Borrower or any of its Subsidiaries to protest any
Lien (other than any Lien that secures some or all of the Obligations), Taxes (other than payroll Taxes or remittances or Taxes that are the subject of a requirement to pay issued by a Canadian Governmental Authority), or rental payment,
provided that (a) a reserve with respect to such obligation is established on Borrower’s or the applicable Subsidiary’s books and records in such amount as is required under GAAP, (b) any such protest is instituted
promptly and prosecuted diligently by Borrower or the applicable Subsidiary, as applicable, in good faith, and (c) Agent is reasonably satisfied that, while any such protest is pending, there will be no impairment of the enforceability,
validity, or priority of any of Agent’s Liens. 
 “Permitted Purchase Money Indebtedness” means, as
of any date of determination, Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred after the Closing Date and at the time of, or within 30 days after, the 

  
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 acquisition of any personal property (other than Inventory) for the purpose of financing all or
any part of the acquisition cost thereof, in an aggregate principal amount outstanding at any one time not in excess of the amount permitted under paragraph (g) of the definition of Permitted Indebtedness. 

“Permitted Sale Leaseback Transactions” means Sale Leaseback Transactions that constitute Permitted
Indebtedness pursuant to paragraph (g) of the definition of Permitted Indebtedness. 
 “Permitted Store
Closings” means the closing of (i) four (4) retail locations, net of any locations opened, of the Loan Parties in the aggregate in any calendar year, and (ii) four (4) temporary retail locations, to the extent opened by
the Loan Parties and closed within six (6) months of such opening, in the aggregate in any calendar year. 

“Person” means natural persons, corporations, limited liability companies, unlimited liability corporations,
limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political
subdivisions thereof. 
 “Platform” has the meaning specified therefor in Section 17.8(c) of
the Agreement. 
 “PLCW Accounts” means Accounts due on the private label credit card programs and all
Accounts due from corporate sales receivables and wholesale receivables, in each case, of Borrower, which (a) are from an Account Debtor acceptable to Agent in its Permitted Discretion and (b) are determined by Agent in its Permitted
Discretion to be eligible for inclusion in Eligible Accounts in an amount reflecting Agent’s estimate of the net recovery on such Accounts on a forced liquidation basis, based upon the most recent appraisal of such Accounts undertaken at the
request of Agent. 
 “PPSA” means the Personal Property Security Act (Ontario) and the regulations
thereunder, as from time to time in effect; provided, however, if attachment, perfection or priority of Agent’s Lien on any Collateral are governed by the personal property security laws of any jurisdiction in Canada other than
the laws of the Province of Ontario, “PPSA” means those personal property security laws in such other jurisdiction in Canada (including the Civil Code of Quebec) for the purposes of the provisions hereof relating to such attachment,
perfection or priority and for the definitions related to such provisions. 
 “Projections” means
Borrower’s forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent with Borrower’s historical financial statements, together with appropriate supporting
details and a statement of underlying assumptions, together with projections of monthly Excess Availability for the relevant period. 

“Pro Rata Share” means, as of any date of determination: 

  
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 (a)       with respect to a Lender’s
obligation to make all or a portion of the Term Loan, with respect to such Lender’s right to receive payments of interest, fees, and principal with respect to the Term Loan, and with respect to all other computations and other matters related
to the Commitments or the Term Loan, the percentage obtained by dividing (i) the Term Loan Exposure of such Lender by (ii) the aggregate Term Loan Exposure of all Lenders, 

(b)       with respect to all other matters and for all other matters as to a particular Lender
(including the indemnification obligations arising under Section 15.6 of the Agreement), the Canadian Dollar Equivalent of the percentage obtained by dividing (i) the sum of the Term Loan Exposure of such Lender by (ii) the sum
of the aggregate Term Loan Exposure of all Lenders, in any such case as the applicable percentage may be adjusted by assignments permitted pursuant to Section 13.1; provided, that if the term Loan has been repaid in full, and the
Commitments have been terminated, Pro Rata Share under this clause shall be determined as if the Term Loan Exposures had not been repaid, collateralized, or terminated and shall be based upon the Term Loan Exposures as they existed immediately prior
to their repayment, collateralization, or termination. 
 “Protective Advances” has the meaning specified
therefor in Section 2.2(c) of the Agreement. 
 “Public Lender” has the meaning specified therefor in
Section 17.8(c) of the Agreement. 
 “Purchase Money Lien” means a Lien taken or reserved in
personal property to secure payment of related Permitted Purchase Money Indebtedness, provided that such Lien (i) secures an amount not exceeding the lesser of the purchase price of such personal property and the fair market value of such
personal property at the time such Lien is taken or reserved, (ii) extends only to such personal property and its proceeds, and (iii) is granted prior to or within 30 days after the purchase of such personal property. 

“Qualified Equity Interests” means and refers to any Equity Interests issued by Borrower (and not by one or
more of its Subsidiaries) that is not a Disqualified Equity Interest. 
 “Quebec Security Documents”
means, any hypothecs and all other security documents governed by the laws of the Province of Quebec, each in form and substance reasonably satisfactory to Agent, executed and delivered by a Loan Party to the Agent to secure the Obligations, and
each as amended, restated, supplemented or modified from time to time. 
 “Quebec Subordinated Debt” means
collectively, (i) all Indebtedness owing to Investissement Québec (successor in interest to La Financière du Québec by virtue of decree 315-2004) under the Quebec Subordinated Debt Documents in the original aggregate
maximum principal amount of $19,900,000, of which a balance in the aggregate principal amount not to exceed $3,024,918 remains outstanding as of the Closing Date, and subject to the Quebec Subordination Agreement and (ii) all other Indebtedness
owing to Investissement Québec under the Quebec Subordinated Debt Documents or otherwise, in each case, which Indebtedness shall be expressly subordinate to payment in full of the Obligations pursuant to the Quebec Subordination Agreement.

  
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 “Quebec Subordinated Debt Documents” means, collectively,
(i) that certain Offre de Prêt (Loan Offer) from Investissement Québec to Borrower on August 30, 2013, in respect of a term loan in the original maximum principal amount of $5,000,000, and all security and other
accessory documents or instruments thereto at any time, and subject at all times to the Quebec Subordination Agreement, (ii) that certain Offre de Prêt (Loan Offer) from Investissement Québec to the Canadian Borrower on
July 25, 2014, in respect of a term loan in the original maximum principal amount of Cdn. $2,000,000, and all security and other accessory documents or instruments thereto at any time, and subject at all times to the Quebec Subordination
Agreement and (iii) all other agreements, documents and instruments evidencing all or any portion of the Quebec Subordinated Debt, and subject at all times to the Quebec Subordination Agreement. 

“Quebec Subordination Agreement” means the subordination agreement dated as of the Closing Date between
Investissement Québec and Agent as the same may hereafter be amended, restated, supplemented or otherwise modified with the consent of Agent. 

“Real Property” means any estates or interests in real property now owned or hereafter acquired by Borrower
or one of its Subsidiaries and the improvements thereto. 
 “Real Property Collateral” means (a) the
Real Property identified on Schedule R-1 to the Agreement and (b) any Real Property hereafter acquired by any Loan Party with a fair market value in excess of $500,000. 

“Receivable Reserves” means, as of any date of determination, those reserves that Agent deems necessary or
appropriate, in its Permitted Discretion and subject to Section 2.2(b), to establish and maintain (including reserves for Taxes, rebates, discounts, warranty claims, and returns) with respect to the Eligible Accounts. 

“Record” means information that is inscribed on a tangible medium or that is stored in an electronic or
other medium and is retrievable in perceivable form. 
 “Refinancing Indebtedness” means refinancings,
renewals, or extensions of Indebtedness so long as: 
 (a)        such
refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection
therewith and by the amount of unfunded commitments with respect thereto, 

(b)        such refinancings, renewals, or extensions do not result in a shortening
of the average weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be
materially adverse to the interests of the Lenders, 
 (c)        if the
Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at

  
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 least as favorable to the Lender Group as those that were applicable to the refinanced, renewed,
or extended Indebtedness, and 
 (d)        the Indebtedness that is refinanced,
renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended. 

“Register” has the meaning set forth in Section 13.1(h) of the Agreement. 

“Registered Loan” has the meaning set forth in Section 13.1(h) of the Agreement. 

“Related Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding
or investing in bank loans and similar extensions of credit in the ordinary course and that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers, advises or manages a Lender. 
 “Related Real Property Documents” means with respect to any
Real Property subject to a Mortgage entered into by any Loan Party, the following, in form and substance reasonably satisfactory to the Agent and, in the case of a Mortgage entered into by any Loan Party after the date hereof, received by the Agent
for review at least 15 days prior to the effective date of the Mortgage (or such shorter length of time acceptable to the Agent in its reasonable discretion): (a) a mortgagee title policy (or binder therefor) covering the Agent’s interest
under the Mortgage, in a form and amount and by an insurer reasonably acceptable to the Agents, which must be fully paid on such effective date; (b) such assignments of leases, rents, estoppel letters, attornment agreements, consents, waivers
and releases as any Agent may require with respect to other Persons having an interest in the Real Property; (c) if otherwise in the possession of a Loan Party, a current, as-built survey of the Real Property, containing a metes-and-bounds
property description and if the Real Property is located in the United States, flood plain certification, and certified by a licensed surveyor reasonably acceptable to the Agents; (d) flood insurance in an amount, with endorsements and by an
insurer reasonably acceptable to the Agents, if the Real Property is within a flood plain; (e) a current appraisal of the Real Property, prepared by an appraiser reasonably acceptable to the Agents; (f) a Phase I (and to the extent
appropriate, Phase II) environmental assessment report, prepared by an environmental consulting firm reasonably satisfactory to the Agents, and accompanied by such reports, certificates, studies or data as the Agents may reasonably require, which
shall all be in form and substance reasonably satisfactory to the Agents; and (g) an Environmental Agreement and such other documents, instruments or agreements as the Agents may reasonably require with respect to any environmental risks
regarding the Real Property. “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor
environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) restore or reclaim
natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials required by
Environmental Laws. 

  
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 “Replacement Lender” has the meaning specified therefor in
Section 2.2(f) of the Agreement. 
 “Report” has the meaning specified therefor in
Section 15.15 of the Agreement. 
 “Required Lenders” means, at any time, Lenders having or
holding more than 50% of the Term Loan Exposure of all Lenders; provided, that the Term Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the Required Lenders; provided further that, at any time there are two
(2) or more non-Affiliate Lenders, the Required Lenders shall be comprised of at least two (2) non-Affiliate Lenders. 

“Reserves” means, as of any date of determination, those reserves (other than Receivable Reserves, Loan to
Value Reserves, Bank Product Reserves (as defined in the Revolving Credit Agreement), Inventory Reserves and Canadian Priority Payable Reserves) that Agent deems necessary or appropriate, in its Permitted Discretion and subject to
Section 2.1(c), to establish and maintain (including reserves with respect to (a) sums that Borrower or any of its Subsidiaries are required to pay under any Section of the Agreement or any other Loan Document (such as Taxes,
assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, (b) currency fluctuations, (c) gift cards, gift certificates and customer deposits, and
(d) amounts owing by Borrower or any of its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted Lien), which Lien, trust or deemed trust, in the Permitted Discretion of
Agent likely would have a priority superior to the Agent’s Liens (such as Liens, trusts or deemed trust in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise,
sales, or other Taxes where given priority under applicable law) in and to such item of the Collateral) with respect to the Borrowing Base. 

“Restricted Payment” means to (a) declare or pay any dividend or make any other payment or
distribution, directly or indirectly, on account of Equity Interests issued by Borrower or any Subsidiary thereof (including any payment in connection with any merger, amalgamation or consolidation involving Borrower or such Subsidiary) or to the
direct or indirect holders of Equity Interests issued by Borrower in its capacity as such (other than dividends or distributions payable in Qualified Equity Interests issued by Borrower) now or hereafter outstanding, except a dividend payable solely
in shares of that class of Equity Interests to the holders of that class, or (b) purchase, redeem, make any sinking fund or similar payment, or otherwise acquire or retire for value (including any payment in connection with any merger,
amalgamation or consolidation involving Borrower), directly or indirectly, any Equity Interests issued by Borrower now or hereafter outstanding, (c) make any payment to retire, or to obtain the surrender of, any outstanding warrants, options,
or other rights to acquire Equity Interests of Borrower now or hereafter outstanding, (d) any payment or prepayment of Indebtedness by the Loan Parties or their Subsidiaries to the Loan Parties’ or any Subsidiary’s shareholders (or
other equity holders) unless such shareholder is a Loan Party, (e) derivatives or other transactions with any financial institution, commodities or stock exchange or clearinghouse (a “Derivatives Counterparty”) obligating the
Borrower or any Subsidiary to make payments to such Derivatives Counterparty as a result of any change in market value of any Equity Interests of the Borrowers or such Subsidiary now or hereafter outstanding, (f) any payments on account of
management, 

  
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 consulting or similar fees or any success fees (including, without limitation, the Management
Debt). 
 “Restricted Payment Conditions” means (a) Excess Availability at all times during the 30
day period ending on the date of such Restricted Payment is greater than 40% of the Credit Cap (or, if the Fixed Charge Condition is satisfied, 25% of the Credit Cap), (b) after giving effect to a Restricted Payment, incurrence of Permitted
Indebtedness described in paragraph (i) of the definition thereof or a Permitted Acquisition (each, a “Payment Event”), Excess Availability is greater than 40% of the Credit Cap (or, if the Fixed Charge Condition is satisfied, greater
than 25% of the Credit Cap), (c) projected Excess Availability at all times during the 6-month period following the date of such Payment Event is greater than 40% of the Credit Cap (or, if the Fixed Charge Condition is satisfied, greater than
25% of the Credit Cap) (in each case after giving effect to such Payment Event and as set forth in Excess Availability projections delivered by Borrower to, and satisfactory to, Agent), (d) no Default or Event of Default then exists or would
(after taking into consideration the payment to be made) result therefrom, and (e) not less than five (5) days prior to such payment, the Borrower shall have delivered to the Agent a certificate certifying, and providing appropriate
calculations, as to the matters set forth in clauses (a) through (d) above. 
 “Restructuring and
Integration Costs” means business optimization expenses and other restructuring and integration charges (including, without limitation, the costs associated with business optimization programs, including costs of consultants, relocation and
recruiting expenses, back office closures, retention costs, severance costs and system establishment costs) in connection with any Permitted Acquisition after the closing date of such Permitted Acquisition through the first anniversary of the
closing date of such Permitted Acquisition. 
 “Revolver Usage” means, as of any date of determination,
the sum of (a) the amount of outstanding Revolving Loans (inclusive of Swing Loans (as such term is defined in the Revolving Credit Agreement)) and Protective Advances (as such term is defined in the Revolving Credit Agreement), plus
(b) the amount of the Letter of Credit Usage. 
 “Revolving Agent” means the “Administrative
Agent”, as defined in the Revolving Credit Agreement. 
 “Revolving Borrowing Capacity” means the
“Excess Availability”, as defined in the Revolving Credit Agreement. 
 “Revolving Credit
Agreement” means the Credit Agreement dated as of October 23, 2017, by and between, among others, Wells Fargo Canada Corporation, as administrative agent, the Revolving Lenders party thereto from time to time, as lenders, and the
Borrower, as borrower, as same may be amended on the date hereof and as further amended from time to time hereafter to the extent permitted hereunder and in accordance with the Intercreditor Agreement. 

“Revolving Lenders” means the agents and the lenders under the Revolving Credit Agreement and the other
Revolving Loan Documents. 

  
 - 44 - 

     

 “Revolving Loans” means the credit extensions (including,
without limitation, the “Loans” (as defined in the Revolving Credit Agreement) provided to the Borrower by the Revolving Lenders under the Revolving Loan Documents. 

“Revolving Loan Debt” means all “Obligations” (as defined in the Revolving Credit Agreement) owing
to the Revolving Secured Parties under the Revolving Loan Documents. 
 “Revolving Loan Documents” means
the “Loan Documents” under and as defined in the Revolving Credit Agreement. 
 “Revolving Secured
Parties” means the “Secured Parties”, as defined in the Revolving Credit Agreement. 
 “Rolex
Canada Collateral” means Collateral of Borrower consisting of Rolex, Tudor and Cellini watches, watchbands, parts and other accessories now or hereafter sold by Rolex Canada Ltd. to Borrower, and all other new Rolex, Tudor and Cellini
watches, watch bands, parts and other accessories hereinafter held by Borrower and all cash proceeds of any of the foregoing, including insurance proceeds (but specifically excluding accounts receivable), together with all rights and property of
every kind at any time in the possession or control of Rolex Canada Ltd., or any of its agents, or in transit to it, belonging to, for the account of, or subject to the order of such Borrower. 

“Rolex Canada Documents” means collectively, (i) the Official Rolex Retailer Agreement dated as of
June 6, 2017 between Rolex Canada Ltd. and Borrower, (ii) the Official Rolex Retailer Agreement dated as of June 6, 2017 between Rolex Canada Ltd. and Borrower (carrying on business as Brinkhaus), (iii) the Official Tudor
Reseller Agreement dated as of June 6, 2017 between Rolex Canada Ltd. and Borrower, and (iv) the Rolex Canada Security Agreement. 

“Rolex Canada Liens” means Liens on the Rolex Canada Collateral granted in favor of Rolex Canada Ltd.
pursuant to the Rolex Canada Security Agreement provided that such Liens are subject to the Rolex Canada Subordination Agreement. 

“Rolex Canada Security Agreement” means collectively, all security agreements, if any, entered into between
the Canadian Borrower and Rolex Canada Ltd. pursuant to Section 3.04 of the Rolex Canada Document described in clause (i) of the definition thereof, which security agreements shall be on terms and conditions satisfactory to Agent and the
Required Lenders. 
 “Rolex Canada Subordination Agreement” means the subordination provisions of the
Rolex Canada Security Agreement, which shall be on terms and conditions satisfactory to Agent and the Required Lenders, and affirmed by Rolex Canada Ltd. pursuant to an acknowledgement letter in form and substance satisfactory to Agent and the
Required Lenders, and addressed to the Agent from Rolex Canada Ltd. and acknowledged by Borrower. 
 “Sale
Leaseback Transactions” means sales of any fixed or capital assets acquired after the Closing Date by any Loan Party or any Subsidiary: (w) that are made for cash 

  
 - 45 - 

     

 consideration in an amount not less than the fair value of such fixed or capital assets and are
consummated within 180 days after such Loan Party or such Subsidiary completes the capital expenditure project for the relevant store or corporate initiative which involved the acquisition or construction of such fixed or capital assets, (x) in
respect of which such fixed or capital assets are not assets included in the computation of Borrowing Base, (y) in respect of which the proceeds shall be applied (i) until payment in full of the Revolving Loan Debt, to the Revolving Loan
Debt as the case may be, and (ii) thereafter, if requested by the Agent, the Term Loan and (z) in respect of which such fixed or capital assets are immediately thereafter leased back to the applicable Loan Party or Subsidiary through a
Capital Lease, provided that for certainty, the fixed or capital assets subject to such sales shall not include Inventory or Accounts and shall be limited to the furniture, fixtures and equipment (as such term is defined in the PPSA), including
information technology equipment, of any Loan Party or any Subsidiary which are located at a retail location or the chief executive office of any Loan Party or any Subsidiary. 

“Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the
government of a country, (c) an organization directly or indirectly controlled by a country or its government, or (d) a Person resident in or determined to be resident in a country, in each case of clauses (a) through (d) that is
itself a target of Sanctions. 
 “Sanctioned Person” means, at any time (a) any Person named on the
list of Specially Designated Nationals and Blocked Persons maintained by OFAC, OFAC’s consolidated Non-SDN list or any other Sanctions-related list maintained by any relevant Sanctions authority, (b) a Person or legal entity that is a
target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Country, or (d) any Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such Person or
Persons described in clauses (a) through (c) above. 
 “Sanctions” means individually and
collectively, respectively, any and all economic sanctions, trade sanctions, financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes anti-terrorism laws and other sanctions laws, regulations or embargoes, including those
imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by the Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury, the U.S. Department of State, the
U.S. Department of Commerce, or through any existing or future executive order, (b) the United Nations Security Council, (c) the European Union or any European Union member state, (d) Her Majesty’s Treasury of the United Kingdom,
or (e) any other Governmental Authority with jurisdiction over any member of Lender Group or any Loan Party or any of their respective Subsidiaries or Affiliates. 

“S&P” has the meaning specified therefor in the definition of Cash Equivalents. 

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

“Secured Hedging Agreement” means any Hedge Agreement that is entered into by and between Borrower and any
Hedge Provider that constitutes Permitted Indebtedness hereunder and is secured by the Revolving Agent’s Liens. 

  
 - 46 - 

     

 “Secured Hedging Obligations” means all Indebtedness and other
obligations of Borrower arising under, or otherwise with respect to, any Secured Hedging Agreement. 
 “Securities
Account” means a securities account (as that term is defined in the PPSA). 
 “Securities Act”
means the Securities Act of 1933, as amended from time to time, and any successor statute. 
 “Senior
Officer” means the chairman of the board, president, chief executive officer, treasurer or chief financial officer, Senior Director, Finance or Director, Financial Planning and Reporting of a Borrower or, if the context requires, a Loan
Party. 
 “Solvent” means, with respect to any Person as of any date of determination, that (a) at
fair valuations, the sum of such Person’s debts (including contingent liabilities) is less than all of such Person’s assets, (b) such Person is not engaged or about to engage in a business or transaction for which the remaining assets
of such Person are unreasonably small in relation to the business or transaction or for which the property remaining with such Person is an unreasonably small capital, and (c) such Person has not incurred and does not intend to incur, or
reasonably believe that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise), and (d) such Person is “solvent” or not “insolvent”, as applicable within the meaning
given those terms and similar terms under applicable Insolvency Law or other laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount
that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for
accrual under Statement of Financial Accounting Standard No. 5). 
 “Spot Rate” means, for a
currency, the rate determined by Agent to be the rate quoted by the Revolving Agent as the spot rate for the purchase by the Revolving Agent of such currency with another currency through its principal foreign exchange trading office at
approximately 11:00 a.m. (New York time) on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided, that Agent may obtain such spot rate from another financial institution designated
by Agent if the Revolving Agent does not have as of the date of determination a spot buying rate for any such currency. 

“STA” means an Act Respecting the Transfer of Securities and the Establishment of
Security Entitlements (Quebec) or to the extent applicable, comparable legislation in other Canadian provinces. 

“Subject Permitted Acquisition” has the meaning specified therefor in the definition of “Permitted
Dispositions”. 
 “Subordinated Debt” means collectively, the Management Debt, the Quebec
Subordinated Debt, the Montrovest Debt and any Additional Subordinated Debt. 

  
 - 47 - 

     

 “Subordination Agreements” means collectively, the Management
Subordination Agreement, the Quebec Subordination Agreement, the Rolex Canada Subordination Agreements, the Montrovest Subordination Agreement and any other subordination agreement entered into by or among any Loan Party, any subordinated creditor
and Agent, in form, scope and substance satisfactory to the Agent and the Required Lenders. 

“Subsidiary” of a Person means a corporation, partnership, limited liability company, unlimited liability
corporation, or other entity in which that Person directly or indirectly owns or controls the Equity Interests having ordinary voting power to elect a majority of the Board of Directors of such corporation, partnership, limited liability company, or
other entity. 
 “Supermajority Lenders” means, at any time, Lenders having or holding more than 66 2/3%
of the sum of the aggregate Canadian Dollar Equivalent of the Term Loan Exposure of all Lenders; provided, that the Term Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the Lenders. 

“Taxes” means any 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, and all interest, penalties or similar liabilities with respect thereto. 

“Tax Lender” has the meaning specified therefor in Section 14.2(a) of the Agreement. 

“Termination Date” means, the earliest to occur of (i) the Maturity Date, (ii) the date on which
the maturity of the Term Loan is accelerated in accordance with Article 9, and (iii) the date of the occurrence of an Event of Default pursuant to Sections 8.4 or 8.5. 

“Term Loan Exposure” means, with respect to any Lender, as of any date of determination (a) prior to
the termination of the Commitments, the amount of such Lender’s Commitment, and (b) after the termination of the Commitments, the aggregate outstanding principal amount of the Term Loan of such Lender. 

“Term Loan” has the meaning specified therefor in Section 2.1 of the Agreement. 

“Total Outstandings” means the aggregate principal balance of the Term Loan owing to all Lenders. 

“United States” means the United States of America. 

“US Divestiture” means the sale of all of the shares of Mayor’s Jewelers, Inc., by Borrower pursuant to
the US Divestiture Agreements. 
 “US Divestiture Agreements” means, collectively, the US Stock Purchase
Agreement, the Transition Services Agreement (as defined in the US Stock Purchase Agreement) and the other agreements, instruments and documents relating thereto and evidencing the US Divestiture. 

  
 - 48 - 

     

 “US Dollars” or “US$” means United States
dollars. 
 “US Stock Purchase Agreement” means that certain Stock Purchase Agreement entered into as of
August 11, 2017 by and between Aurum Holdings Ltd. and Birks Group Inc. for the purchase of all shares of capital stock of Mayor’s Jewelers, Inc. 

“Voidable Transfer” has the meaning specified therefor in Section 17.7 of the Agreement.EX-10.1

 Exhibit 10.1 

Date 30 June 2017 
 OLYMPIA II
NAVIGATION LIMITED 
 SUI AN NAVIGATION LIMITED 

PINGEL NAVIGATION LIMITED 

EBBA NAVIGATION LIMITED 

and 
 CLAN NAVIGATION
LIMITED 
 as Borrowers 

and 
 ABN AMRO BANK N.V.

 as a Lender 

and 
 ABN AMRO BANK N.V.

 as Lead Arranger, Agent and Security Trustee 
  

 
 SUPPLEMENTAL
AGREEMENT 
  
  

in relation to a Facility Agreement 

dated as of 30 May 2008 

as amended and supplemented by an Amending and Restating Deed 

dated 9 June 2010, 

and by supplemental agreements dated 20 May 2013 and 13 March 2014 

INCE & CO 

PIRAEUS 

 Index 
  

							
	Clause	 	 	  	Page No	 
			
	 1
	 	INTERPRETATION	  	 	3	 
			
	 2
	 	AGREEMENT OF THE CREDITOR PARTIES	  	 	4	 
			
	 3
	 	CONDITIONS PRECEDENT/CONDITIONS SUBSEQUENT	  	 	4	 
			
	 4
	 	REPRESENTATIONS AND WARRANTIES	  	 	5	 
			
	 5
	 	AMENDMENTS TO FACILITY AGREEMENT AND OTHER FINANCE DOCUMENTS	  	 	5	 
			
	 6
	 	FURTHER ASSURANCES	  	 	6	 
			
	 7
	 	FEES AND EXPENSES	  	 	7	 
			
	 8
	 	NOTICES	  	 	7	 
			
	 9
	 	SUPPLEMENTAL	  	 	7	 
			
	 10
	 	LAW AND JURISDICTION	  	 	7	 
		
	 SCHEDULE
	  	 	7	 
		
	 APPENDIX 1 FORM OF EFFECTIVE DAY NOTICE
	  	 	9	 
		
	 APPENDIX 2 FORM OF AMENDED AND RESTATED FACILITY AGREEMENT
	  	 	10	 

 THIS AGREEMENT is made on 30 June 2017 

BETWEEN 
  

	(1)	OLYMPIA II NAVIGATION LIMITED, SUI AN NAVIGATION LIMITED, PINGEL NAVIGATION LIMITED, EBBA NAVIGATION LIMITED and CLAN NAVIGATION LIMITED, as joint and several Borrowers; 

 

	(2)	ABN AMRO BANK N.V. as Lenders; and 

  

	(3)	ABN AMRO BANK N.V. as Agent, Security Trustee and Lead Arranger. 

 BACKGROUND 

 

	(A)	By a facility agreement dated 30 May 2008 (the “Original Agreement” as amended and supplemented by an Amending and Restating Deed dated 9 June 2010, and by supplemental agreements dated
20 May 2013 and 13 March 2014, together, the “Facility Agreement”) and made between (amongst others) the parties hereto the Lenders have made available to the Borrower a loan of up to USD288,000,000. 

 

	(B)	By a transfer certificate dated 29 June 2017 the Lender has assumed all rights and obligations of the Lenders under the Facility Agreement, and is therefore lender of the whole of the Loan. 

 

	(C)	The Agent and Security Trustee were appointed as such pursuant to a deed of resignation and a deed of appointment, each dated 30 June 2017. 

 

	(D)	The Borrower has made a request to the Lenders that they agree to amend the Facility Agreement and this Agreement sets out the terms and conditions on which the Creditor Parties agree, with effect on and from the
Effective Date, to make amendments to the Facility Agreement. 

 IT IS AGREED as follows: 

 

	1	INTERPRETATION 

  

	1.1	Defined expressions. Words and expressions defined in the Facility Agreement and the other Finance Documents shall have the same meanings when used in this Agreement unless the context otherwise requires.

  

	1.2	Definitions.    In this Agreement, unless the contrary intention appears: 

“Commercial Manager” means, in relation to each Ship, Navios Shipmanagement Inc., a corporation incorporated under the laws of
the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Effective Date” means the date on which the Agent issues the Effective Date Notice; 

“Effective Date Notice” means the written confirmation from the Agent to the Borrower that the Agent has received the
documents and evidence specified in clause 3.1 in a form and substance satisfactory to it in the form of Appendix 1 to this Agreement; 

“Facility Agreement” means the Facility Agreement referred to in Recital (A); 

  
 3 

 “Mortgage Addendum” means in respect of each Mortgage an addendum thereto
executed or to be executed by the Borrower which is party to such Mortgage in such form as the Agent shall require; 
 “New
Guarantor” means Navios Maritime Containers Inc., a corporation incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 

“Original Agreement” means the Original Agreement referred to in Recital (A). 

 

	1.3	Application of construction and Interpretation provisions of Facility Agreement. Clauses 1.3 to 1.7 (inclusive) of the Facility Agreement apply, with any necessary modifications, to this Agreement.

  

	2	AGREEMENT OF THE CREDITOR PARTIES 

  

	2.1	Creditor Parties’ consent. The Creditor Parties hereby agree to amend the Facility Agreement on condition that: 

  

	2.1.1	the Agent, or its authorised representative, has received the documents and evidence specified in Clause 3.1 in form and substance satisfactory to the Agent; and 

 

	2.1.2	the representations and warranties contained in clause 4 are then true and correct as if each was made with respect to the facts and circumstances existing at such time. 

 

	3	CONDITIONS PRECEDENT AND CONDITIONS SUBSEQUENT 

  

	3.1	Conditions precedent. The conditions referred to in Clause 2.1.1 are that the Agent shall have received the following documents: 

 

	3.1.1	Corporate authorities 

 (i) duly legalized resolutions of the directors and shareholders of the
Borrowers, the New Guarantor and the Commercial Manager approving such of this Supplemental Agreement and the Mortgage Addenda to which they are respectively a party and authorising the execution and delivery thereof and performance of their
obligations thereunder, additionally certified by an officer of such Security Party as having been duly passed at a duly convened meeting of its directors and not having been amended, modified or revoked and being in full force and effect; and 

(ii) duly legalized originals or Certified Copies of any powers of attorney issued by the Borrowers, the New Guarantor and the Commercial
Manager pursuant to such resolutions; 
  

	3.1.2	Certificate of incumbency 

 a list of directors and officers and shareholders/members of the
Borrowers, the New Guarantor and the Commercial Manager, specifying the names and positions of such persons, certified by an officer of the Borrowers, the New Guarantor and the Commercial Manager as the case may be to be true, complete and up to
date; 
  

	3.1.3	Mortgage Addenda/Mortgage Assignments 

 evidence that each Mortgage Addendum has been duly
executed and registered against the Ship which is the subject thereof in accordance with the laws of the Marshall Islands; 

  
 4 

	3.1.4	Laws of the Marshall Islands: opinion 

 a form of opinion of Messrs Reeder & Simpson
special legal advisers to the Lender on Marshall Islands law in a form acceptable to the Agent; 
  

	3.1.5	Laws of England/Wales: opinion 

 a form of opinion of Messrs Ince & Co, special legal
advisers to the Lender on English law in a form acceptable to the Agent; 
  

	3.1.6	Acknowledgment 

 an acknowledgement (in a letter or otherwise) signed by each Security Party
(other than the Borrowers) in such form as the Agent may require in its sole discretion acknowledging the terms of this Agreement; and 
  

	3.1.7	Further opinions, etc 

 any further opinions, consents, agreements and documents in connection
with this Agreement and the Finance Documents which the Agent (acting on the instructions of the Majority Lenders) may request by notice to the Borrowers. 
  

	3.2	If the Agent issues the Effective Date Notice prior to delivery to it of any of the documents and evidence set out in clause 3.1, the Borrowers must deliver all outstanding documents and evidence to or to the order of
the Agent no later than the date specified by the Agent, and issue by the Agent of the Effective Date Notice prior to delivery to it of all such documents and evidence shall not be construed as a waiver of the Creditor Parties’ right to receive
all the documents and evidence required by clause 3.1. 

  

	3.3	Conditions subsequent. The Borrowers undertake to deliver or to cause to be delivered to the Agent on, or as soon as practicable after, the Effective Date such of the legal opinions specified in clause 3.1 as
have not already been provided to the Agent. 

  

	4	REPRESENTATIONS AND WARRANTIES 

  

	4.1	Repetition of Facility Agreement representations and warranties. The Borrowers represent and warrant to each Creditor Party that the representations and warranties in Clause 10 of the Facility Agreement, as
amended and supplemented by this Agreement and updated with appropriate modifications to refer to this Agreement, remain true and not misleading if repeated on the date of this Agreement with reference to the circumstances now existing.

  

	5	AMENDMENTS TO FACILITY AGREEMENT AND OTHER FINANCE DOCUMENTS 

  

	5.1	Amendments to Facility Agreement. With effect on and from the Effective Date, the Facility Agreement shall be, and it is hereby, amended to read in accordance with the form of the amended and restated Facility
Agreement set out in Schedule 2 (Amended and Restated Facility Agreement) and (as so amended) will continue to be binding upon the Creditor Parties and the Borrower in accordance with its terms as so amended and restated.

  

	5.2	Amendments to Finance Documents. With effect on and from the Effective Date each of the Finance Documents other than the Facility Agreement, shall be, and shall be deemed by this Agreement to be, amended so that
the definition of, and references throughout each of the Finance Documents to, the Facility Agreement shall be construed as if the same referred to the Facility Agreement as amended and supplemented by this Agreement. 

  
 5 

	5.3	Finance Documents to remain in full force and effect.  

 The Finance Documents shall
remain in full force and effect as amended and supplemented by: 
  

	 	(a)	the amendments to the Finance Documents contained or referred to in Clauses 5.1 and 5.2; and 

  

	 	(b)	such further or consequential modifications as may be necessary to give full effect to the terms of this Agreement. 

  

	6	FURTHER ASSURANCES 

  

	6.1	Borrowers’ obligation to execute further documents etc. The Borrowers shall, and shall procure that any other party to any Security Document shall: 

 

	6.1.1	execute and deliver to the Agent (or as it may direct, acting on the instructions of the Majority Lenders) any assignment, mortgage, power of attorney, proxy or other document, governed by the law of England or such
other country as the Agent may (acting on the instructions of the Majority Lenders), in any particular case, specify; and 

  

	6.1.2	effect any registration or notarisation, give any notice or take any other step, which the Agent may (acting on the instructions of the Majority Lenders), by notice to the Borrowers or other party, reasonably
specify for any of the purposes described in Clause 5 or for any similar or related purpose. 

  

	6.2	Purposes of further assurances. Those purposes are: 

  

	 	(a)	validly and effectively to create any Encumbrance or right of any kind which the Lenders intended should be created by or pursuant to the Facility Agreement or any other Security Document, each as amended and
supplemented by this Agreement; and 

  

	 	(b)	implementing the terms and provisions of this Agreement. 

  

	6.3	Terms of further assurances. The Agent may specify the terms of any document to be executed by the Borrowers or any other party under Clause 6.1, and those terms may include any covenants, powers and provisions
which the Security Trustee reasonably considers appropriate to protect its interests. 

  

	6.4	Obligation to comply with notice. The Borrowers shall comply with a notice under Clause 6.1 by the date specified in the notice. 

 

	6.5	Additional corporate action. At the same time as any Borrower or any other Security Party delivers to the Agent any document executed under Clause 6.1(a), the Borrowers or such other Security Party shall also
deliver to the Agent a director’s certificate duly signed which shall: 

  

	 	(a)	set out the text of a resolution of the relevant Borrower’s or that other Security Party’s directors specifically authorising the execution of the document specified by the Agent (acting on the
instructions of the Majority Lenders), and 

  
 6 

	 	(b)	state that either the resolution was duly passed at a meeting of the directors validly convened and held throughout which a quorum of directors entitled to vote on the resolution was present or that the resolution has
been signed by all the directors and is valid under the relevant Borrower’s or that other Security Party’s articles of association or other constitutional documents. 

 

	7	FEES AND EXPENSES 

  

	7.1	Expenses. The provisions of Clause 20 (Fees and Expenses) of the Facility Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly
incorporated in this Agreement with any necessary modifications. 

  

	8	NOTICES 

  

	8.1	General. The provisions of clause 28 (Notices) of the Facility Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this
Agreement with any necessary modifications. 

  

	9	SUPPLEMENTAL 

  

	9.1	Counterparts. This Agreement may be executed in any number of counterparts each of which shall be original but which shall together constitute the same instrument. 

 

	9.2	Third party rights. A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

  

	10	LAW AND JURISDICTION 

  

	10.1	Governing law. This Agreement and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with
English law. 

  

	10.2	Incorporation of the Facility Agreement provisions. The provisions of Clause 31 (Lawand Jurisdiction) of the Facility Agreement, as amended and supplemented by this Agreement, shall apply to this
Agreement as if they were expressly incorporated in this Agreement with any necessary modifications. 

 IN WITNESS whereof the parties
to this Agreement have caused this Agreement to be duly executed on the date first above written. 
  

			
	 SIGNED as a deed by MARIA TRIVELA
	  	)
	 for and on behalf of
	  	)
	 OLYMPIA II NAVIGATION LIMITED
	  	) /s/ Maria Trivela
	 (as Borrower under and pursuant to
	  	)
	 a power of attorney dated 28 June 2017)
	  	)
		
	 SIGNED as a deed by MARIA TRIVELA 
	  	)
	 for and on behalf of
	  	)
	 SUI AN NAVIGATION LIMITED
	  	) /s/ Maria Trivela
	 (as Borrower under and pursuant to
	  	)
	 a power of attorney dated 28 June 2017)
	  	)

  
 7 

			
	 SIGNED as a deed by MARIA TRIVELA 
	  	)
	 for and on behalf of
	  	)
	 PINGEL NAVIGATION LIMITED
	  	) /s/ Maria Trivela
	 (as Borrower under and pursuant to
	  	)
	 a power of attorney dated 28 June 2017)
	  	)
		
	 SIGNED as a deed by MARIA TRIVELA
	  	)
	 for and on behalf of
	  	)
	 EBBA NAVIGATION LIMITED
	  	) /s/ Maria Trivela
	 (as Borrower under and pursuant to
	  	)
	 a power of attorney dated 28 June 2017)
	  	)
		
	 SIGNED as a deed by MARIA TRIVELA
	  	)
	 for and on behalf of
	  	)
	 CLAN NAVIGATION LIMITED
	  	) /s/ Maria Trivela
	 (as Borrower under and pursuant to
	  	)
	 a power of attorney dated 28 June 2017)
	  	)
		
	 SIGNED as a deed by RONAN LE DU
	  	)
	 for and on behalf of
	  	)
	 ABN AMRO BANK N.V.
	  	) /s/ Ronan Le Du
	 (as a Lender under and pursuant to
	  	)
	 a power of attorney dated 13 February 2017)
	  	)
		
	 SIGNED as a deed by RONAN LE DU
	  	)
	 for and on behalf of
	  	)
	 ABN AMRO BANK N.V.
	  	) /s/ Ronan Le Du
	 (as Lead Arranger, Agent and Security Trustee
	  	)
	 under and pursuant to
	  	)
	 a power of attorney dated 29 June 2017
	  	)
		
	 Witness to all the above
	  	)
	 Signatures:
	  	)
	 Name:
	  	
	 Address:
	  	
	 47-49 Akti Miaouli
	  	
	 Piraeus, Greece
	  	

  
 8 

 Appendix 1 

Form of 
 Effective Date
Notice 
  

	To:	OLYMPIA II NAVIGATION LIMITED, SUI AN NAVIGATION LIMITED, PINGEL NAVIGATION LIMITED, EBBA NAVIGATION LIMITED and CLAN NAVIGATION LIMITED all of the Marshall Islands 

We, ABN AMRO BANK N.V., refer to the supplemental agreement dated    June 2017 (the “Supplemental Agreement”) relating to
a secured facility agreement 30 May 2008 (as amended and supplemented by an Amending and Restating Deed dated 9 June 2010, and by supplemental agreements dated 20 May 2013 and [     ] 2014, the “Facility
Agreement”) made between (amongst others) you as the Borrowers and ourselves as the Agent. 
 We hereby confirm that all conditions precedent
referred to in Clause 3.1 of the Supplemental Agreement have been satisfied. In accordance with Clauses 1.2 and 2.1 of the Supplemental Agreement the Effective Date is the date of this confirmation and the amendments to the Facility Agreement are
now effective. 
 Dated: [                 ] 2017 

Signed:_______________________________ 
 for and on behalf of

 ABN AMRO BANK N.V. 

  
 9 

 Appendix 2 

Form of Amended and Restated Facility Agreement 

  
 10 

 EXECUTION VERSION 

Date 30 May 2008 
 as amended
and restated 
 on            June 2017 

OLYMPIA II NAVIGATION LIMITED 

SUI AN NAVIGATION LIMITED 

PINGEL NAVIGATION LIMITED 

EBBA NAVIGATION LIMITED 

and 
 CLAN NAVIGATION
LIMITED 
 as joint and several Borrowers 

- and – 
 ABN AMRO BANK
N.V. 
 as Mandated Lead Arrangers 

-and- 
 ABN AMRO BANK N.V.

 as Lenders 
 - and - 

ABN AMRO BANK N.V. 
 as
Agent and as Security Trustee 
  
  

FACILITY AGREEMENT 
  

 

 INDEX 
  

							
	Clause	  	 	  	Page	 
			
	 1
	  	INTERPRETATION	  	 	3	 
			
	 2
	  	FACILITY	  	 	22	 
			
	 3
	  	POSITION OF THE LENDERS	  	 	23	 
			
	 4
	  	DRAWDOWN	  	 	23	 
			
	 5
	  	INTEREST	  	 	24	 
			
	 6
	  	INTEREST PERIODS	  	 	26	 
			
	 7
	  	DEFAULT INTEREST	  	 	27	 
			
	 8
	  	REDUCTION, REPAYMENT AND PREPAYMENT	  	 	28	 
			
	 9
	  	CONDITIONS PRECEDENT	  	 	30	 
			
	 10
	  	REPRESENTATIONS AND WARRANTIES	  	 	31	 
			
	 11
	  	GENERAL UNDERTAKINGS	  	 	34	 
			
	 12
	  	CORPORATE UNDERTAKINGS	  	 	39	 
			
	 13
	  	INSURANCE	  	 	41	 
			
	 14
	  	SHIP’S COVENANTS	  	 	45	 
			
	 15
	  	SECURITY COVER	  	 	50	 
			
	 16
	  	PAYMENTS AND CALCULATIONS	  	 	51	 
			
	 17
	  	APPLICATION OF RECEIPTS	  	 	53	 
			
	 18
	  	APPLICATION OF EARNINGS, LOCATION OF ACCOUNTS	  	 	54	 
			
	 19
	  	EVENTS OF DEFAULT	  	 	56	 
			
	 20
	  	FEES AND EXPENSES	  	 	61	 
			
	 21
	  	INDEMNITIES	  	 	62	 
			
	 22
	  	NO SET-OFF OR TAX DEDUCTION	  	 	63	 
			
	 23
	  	ILLEGALITY, ETC	  	 	64	 
			
	 24
	  	INCREASED COSTS	  	 	65	 
			
	 25
	  	SET-OFF	  	 	66	 
			
	 26
	  	TRANSFERS AND CHANGES IN LENDING AND BOOKING OFFICES	  	 	67	 

							
			
	 27
	  	VARIATIONS AND WAIVERS	  	 	70	 
			
	 28
	  	NOTICES	  	 	71	 
			
	 29
	  	JOINT AND SEVERAL LIABILITY	  	 	72	 
			
	 30
	  	SUPPLEMENTAL	  	 	73	 
			
	 31
	  	LAW AND JURISDICTION	  	 	74	 
		
	 SCHEDULE 1 BANKS AND COMMITMENT
	  	 	75	 
		
	 SCHEDULE 2 DRAWDOWN NOTICE
	  	 	76	 
		
	 SCHEDULE 3 CONDITION PRECEDENT DOCUMENTS
	  	 	77	 
		
	 SCHEDULE 4 TRANSFER CERTIFICATE
	  	 	80	 
		
	 SCHEDULE 5 FORM OF COMPLIANCE CERTIFICATE
	  	 	84	 
		
	 SCHEDULE 6 SHIP DETAILS
	  	 	86	 
		
	 EXECUTION PAGE
	  	 	88	 

  
 2 

 THIS AGREEMENT is made on 30 May 2008 and amended and restated
on                June 2017 
 BETWEEN 

 

	(1)	OLYMPIA II NAVIGATION LIMITED, SUI AN NAVIGATION LIMITED, PINGEL NAVIGATION LIMITED, EBBA NAVIGATION LIMITED and CLAN NAVIGATION LIMITED, as joint and several Borrowers; 

 

	(2)	ABN AMRO BANK N.V., as Mandated Lead Arrangers; 

  

	(3)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Part A of Schedule 1, as Lenders; 

  

	(4)	ABN AMRO BANK N.V., as Agent; and 

  

	(5)	ABN AMRO BANK N.V., as Security Trustee. 

 BACKGROUND 

 

	(A)	The Lenders have agreed to: 

  

	 	(a)	continue to make available to the Borrowers a term loan facility of up to US$35,000,000; and 

  

	 	(b)	make available to the Borrowers 

  

	 	(i)	Advance B for the purpose of enabling the Borrowers to on-lend the same to Collateral Guarantor A to finance its acquisition of Ship F; and 

 

	 	(ii)	Advance C for the purpose of enabling the Borrowers to on-lend the same to Collateral Guarantor B to finance its acquisition of Ship G, 

 

	(B)	The Lenders have agreed to share pari passu in the security to be granted to the Security Trustee pursuant to this Agreement. 

IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions. Subject to Clause 1.5, in this Agreement (including in the above recitals): 

“Account Bank” means ABN AMRO Bank N.V. acting through its branch at 93 Coolsingel, 3012 Rotterdam, the Netherlands or such
other bank as may be designated by the Agent as the Account Bank for the purposes of this Agreement and which is of a rating acceptable to the Lenders, in their sole discretion; 

“Account Security Deed” means a deed creating security in respect of the Earnings Accounts and the Retention Account in the
Agreed Form; 
 “Advance A” means the advance equal to the lesser of (i) $34,320,000 and (ii) 80% of the aggregate Fair
Market Values of the Chartered Ships no more than 30 days prior to the Drawdown Date in respect of Advance A, to be applied in or towards financing or refinancing the acquisition of the Chartered Ships or, as the context requires, the amount thereof
outstanding from time to time; 

  
 3 

 “Advance B” means, if drawn before Advance C, an amount equal to the lesser of
(i) $3,180,000 and (ii) 70% of the Fair Market Value of Vessel F and if drawn after Advance C, the lesser of (aa) the difference between $5,680,000 and the drawn amount of Advance C and (bb) an amount which, when added to Advance A and Advance
C, will equal 70% of the aggregate Fair Market Values of all the Ships which will be subject to a Mortgage on the Drawdown Date in respect of Advance B, no more than 30 days prior to the Drawdown Date in respect of Advance B, to be applied in or
towards financing or refinancing the acquisition of Ship F or, as the context requires, the amount thereof outstanding from time to time; 

“Advance C” means, if drawn before Advance B, an amount equal to the lesser of (i) $3,180,000 and (ii) 70% of the Fair
Market Value of Vessel G and if drawn after Advance B, the lesser of (i) the difference between $5,680,000 and the drawn amount of Advance B and (ii) an amount which, when added to Advance A and Advance B, will equal 70% of the aggregate
Fair Market Values of all the Ships which will be subject to a Mortgage on the Drawdown Date in respect of Advance C, no more than 30 days prior to the Drawdown Date in respect of Advance C, to be applied in or towards financing or refinancing the
acquisition of Ship G or, as the context requires, the amount thereof outstanding from time to time; 
 “Advances” means
together, Advance A, Advance B and Advance C and, in the singular, means any of them; 
 “Actual Delivery Date” means, in
relation to each Ship, the day on which such Ship is actually delivered by the relevant Seller to the relevant Borrower pursuant to the relevant MOA; 

“Affected Lender” has the meaning given in Clause 5.7; 

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other
Subsidiary of that Holding Company; 
 “Agency and Trust Deed” means the agency and trust deed dated the same date as this
Agreement and made between the same parties; 
 “Agent” means ABN AMRO Bank N.V., duly incorporated under the laws of
Netherlands, having its registered office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands, acting for the purposes of this Agreement through its office at Coolsingel 93, 3012, AE Rotterdam, The Netherlands (or of such other address as
may last have been notified to the Borrowers) or any successor of it appointed under clause 5 of the Agency and Trust Deed; 

“Agreed Form” means, in relation to any document, that document in the form approved in writing by the Agent or as otherwise
approved in accordance with any other approved procedure specified in any relevant provision of any Finance Document; 

“Applicable Accounts” means, as at the date of calculation or, as the case may be, in respect of an accounting period,
the annual audited consolidated accounts and financial statements of the Group or the quarterly unaudited consolidated accounts and financial statements of the Group, in each case, which the Borrowers are obliged to deliver to the Agent pursuant to
Clause 11.6; 
 “Approved Broker” means each of (i) H. Clarkson & Co. Ltd. of St Magnus House, 3 Lower Thames
Street, London EC3R 6HE, England, (ii) Arrow Sale & Purchase (UK) Limited of Harbour House, Chelsea Harbour, London SW10 0XE, England, (iii) SSY Valuation Services Limited of Lloyds Chambers, 1 Portsoken Street, London E1 8PH,
England, (iv) Fearnleys of P.O. Box 1158 Sentrum, 0107 Oslo, Norway, (v) Maersk Broker 

  
 4 

 
K/S, Midtermolen 1, 2100 Copenhagen, Denmark, (vi) Braemar Seascope Limited of One Strand, Trafalgar Square, London WC2N 5HR, England, (vii) E.A. Gibson Shipbrokers Ltd., Audrey House, 16-20 Ely Place, London EC1N 6SN, England, (viii) BRS of 11 Boulevard Jean Mermoz, 92200 Neuilly-sur-Seine, France and
(ix) Howe Robinson Partners of 3rd Floor, 40 Gracechurch St, London EC3V 0BT, United Kingdom, or such other reputable, independent and first class firm of shipbrokers specialising in the valuation of vessels of the relevant type appointed by
the Bank and agreed with the Borrowers; 
 “Approved Flag” means the Republic of Marshall Islands or such other flag as the
Agent may, with the authorisation of all the Lenders, in their absolute discretion, approve as the flag on which a Ship may be registered; 

“Approved Flag State” means the Republic of Marshall Islands or any other country in which the Agent may with the
authorisation of all the Lenders, approve that a Ship be registered; 
 “Approved Time Charter Assignment” means, in
relation to a Ship, the assignment of each Approved Time Charter in the Agreed Form; 
 “Availability Period”
means    for Advance B and Advance C, the period commencing on the date of this Agreement and ending on the earlier of (a) 31 December 2017, (b) the Delivery Date in respect of the second Collateral Ship to be delivered
under a Collateral MOA and (c) any date on which (i) the aggregate of Advance B and Advance C is equal to the Total Commitments or (ii) the Total Commitments are reduced to zero; or, in each case, such later date as the Agent may,
with the authorisation of all the Lenders, agree with the Borrowers; 
 “Basel III” means: 

 

	 	(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III:
International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December
2010, each as amended, supplemented or restated; 

  

	 	(b)	the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement—Rules text” published by the
Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and 

  

	 	(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”; 

“Basel IV” means any amendment, replacement or refinement of Basel III known or to be known as “Basel IV”;

 “BNP” means BNP Paribas, acting through its branch at 63/F, Two International Finance Centre, 8 Finance Street, Central
Hong-Kong; 
 “BNP Account” means, in relation to each Borrower, an account in the name of such Borrower with BNP designated
“[name of relevant Borrower] - Earnings Account”; 
 “BNP Account
Security Deed” means, in relation to each Borrower, a deed creating security in respect of its BNP Account in the Agreed Form (and “BNP Account Security Deeds” means all of them collectively); 

  
 5 

 “Borrower A” means Olympia II Navigation Limited, a corporation incorporated
under the laws of the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Borrower B” means Sui An Navigation Limited, a corporation incorporated under the laws of the Republic of Marshall Islands
whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 
 “Borrower
C” means Pingel Navigation Limited, a corporation incorporated under the laws of the Republic of Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Borrower D” means Ebba Navigation Limited, a corporation incorporated under the laws of the Republic of Marshall Islands
whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 
 “Borrower
E” means Clan Navigation Limited, a corporation incorporated under the laws of the Republic of Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Borrower” means each or, as the context may require, any of Borrower A, Borrower B, Borrower C, Borrower D and Borrower E
(and “Borrowers” means all of them collectively); 
 “Business Day” means a day (other than a Saturday and
a Sunday) on which commercial banks are open in Athens, Piraeus, Amsterdam, Rotterdam and Hong Kong and, in respect of a day on which: 
  

	 	(a)	LIBOR is to be determined, also in London; and 

  

	 	(b)	a payment is required to be made under a Finance Document in Dollars, also in New York City; 

“Change of Control Event” means the occurrence after the Execution Date of any of the following: 

 

	 	(i)	the Permitted Owners sell any shares in the Corporate Guarantor which would reduce the proportion of issued shares owned by them in aggregate in the Corporate Guarantor to below 30%; or 

 

	 	(ii)	the Corporate Guarantor issues further shares which would reduce the proportion of issued shares in the Corporate Guarantor owned by the Permitted Owners in aggregate to below 30%; 

“Chartered Ships” means, together, Ship A, Ship B, Ship C, Ship D and Ship E. 

“Collateral Account Security Deed” means, in relation to each Collateral Guarantor, a deed creating security in respect
of its Collateral Earnings Account in the Agreed Form (and “Collateral Account Security Deeds” means all of them collectively); 

“Collateral Charter Assignment” means, in relation to any Extended Employment Contract over a Collateral Ship, the assignment
thereof in the Agreed Form; 

  
 6 

 “Collateral Earnings Account” means, in relation to each Collateral
Guarantor, an account in the name of such Collateral Guarantor with the Account Bank designated “[name of relevant Collateral Guarantor] - Earnings Account”, or any other account (with that or
another office of the Account Bank or with a bank or financial institution other than the Account Bank) which is designated by the Agent as such account in relation to that Collateral Guarantor for the purposes of this Agreement 

“Collateral General Assignment” means, in relation to a Collateral Ship, a general assignment of its Earnings,
Insurances and Requisition Compensation in the Agreed Form (and “Collateral General Assignments” means both of them collectively); 

“Collateral Guarantee” means each guarantee executed or to be executed by the Collateral Guarantor in favour of the
Security Trustee in the Agreed Form(and “Collateral Guarantees” means both of them collectively); 

“Collateral Guarantees” means both of them collectively); 

“Collateral Guarantor A” means Velour Management Corp., a corporation incorporated under the laws of the Republic of Marshall
Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Collateral Guarantor B” means Bertyl Ventures Co., a corporation incorporated under the laws of the Republic of Marshall
Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; 

“Collateral Guarantor” means each or, as the context may require, either of Collateral Guarantor A or Collateral Guarantor B
(and “Collateral Guarantors” means both of them collectively); 
 “Collateral Manager’s
Undertaking” means a letter of undertaking from the Approved Manager in the Agreed Form; 
 “Collateral
Mortgage” means, in relation to a Collateral Ship, the first preferred or, as the case may be, priority ship mortgage on the Ship under the relevant Approved Flag in the Agreed Form (and “Collateral Mortgages”
means all of them collectively); 
 “Collateral Shares Pledge” means, in relation to each Collateral Guarantor, a
deed creating security in respect of the issued share capital of that Collateral Guarantor executed or to be executed by the Corporate Guarantor in favour of the Security Trustee in the Agreed Form (and “Collateral Shares
Pledges” means all of them collectively); 
 “Collateral Ship” means each of Ship F and Ship G and in the plural
means both of them; 
 “Commitment” means in relation to Advance B and Advance C, in relation to a Lender, the amount set
opposite its name in the second column of Part A of Schedule 1, or, as the case may require, the amount specified in the relevant Transfer Certificate, as that amount may be reduced, cancelled or terminated in accordance with this Agreement (and
“Total Commitments” means the aggregate of the Commitments of all the Lenders); 
 “Compliance Certificate”
means a certificate in the form set out in Schedule 5 (or in any other form which the Agent, acting with the authorisation of all the Lenders, approves or requires); 

“Contractual Currency” has the meaning given in Clause 21.4; 

“Contribution” means, in relation to a Lender, the part of the Loan which is owing to that Lender; 

  
 7 

 “Corporate Guarantee” means the guarantee executed or to be executed by the
Corporate Guarantor in favour of the Security Trustee in the Agreed Form; 
 “Corporate Guarantor” means Navios Maritime
Containers Inc., a corporation incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 

“CRD IV” means: 
  

	 	(a)	Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012;

  

	 	(b)	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms,
amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC; and 

  

	 	(c)	any other law or regulation which implements Basel III; 

 “CRR” means
Regulations (EU) No. 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012 

“Creditor Party” means the Agent, the Security Trustee, any Mandated Lead Arranger, or any Lender, whether as at the date of
this Agreement or at any later time; 
 “Delivery Date” means, in relation to each Collateral Ships, the date on which title
to and possession of such Collateral Ship is transferred to the relevant Collateral Guarantor; 
 “Dollars” and
“$” mean the lawful currency for the time being of the United States of America; 
 “Drawdown Date” means,
for any Advance, the date requested by the Borrowers for that Advance to be made, or (as the context requires) the date on which that Advance is actually made; 

“Drawdown Notice” means a notice in the form set out in Schedule 2 (or in any other form which the Agent approves or
reasonably requires); 
 “Earnings” means, in relation to a Ship, all moneys whatsoever which are now, or later become,
payable (actually or contingently) to the Borrower or the Collateral Guarantor owning such Ship or the Security Trustee and which arise out of the use or operation of such Ship, including (but not limited to): 

 

	 	(a)	except to the extent that they fall within paragraph (b): 

  

	 	(i)	all freight, hire and passage moneys; 

  

	 	(ii)	compensation payable to the Borrower or the Collateral Guarantor which owns that Ship or a Security Party in the event of requisition of that Ship for hire; 

 

	 	(iii)	remuneration for salvage and towage services; 

  

	 	(iv)	demurrage and detention moneys; 

  
 8 

	 	(v)	damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of that Ship; and 

 

	 	(vi)	all moneys which are at any time payable under any Insurances relating to that Ship in respect of loss of hire; and 

  

	 	(b)	if and whenever that Ship is employed on terms whereby any moneys falling within paragraphs (i) to (vi) are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or
sharing arrangement which is attributable to that Ship; 

 “Earnings Account” means, in relation to each
Borrower and each Collateral Guarantor, an account in the name of such Borrower or Collateral Guarantor with the Account Bank designated “[name of relevant Borrower/ Collateral Guarantor] -
Earnings Account”, or any other account (with that or another office of the Account Bank or with a bank or financial institution other than the Account Bank) which is designated by the Agent as such account in relation to that Borrower or
Collateral Guarantor for the purposes of this Agreement; 
 “Environmental Claim” means: 

 

	 	(a)	any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law; or 

 

	 	(b)	any claim by any other person which relates to an Environmental Incident or to an alleged Environmental Incident, 

and “claim” means a claim for damages, compensation, fines, penalties or any other payment of any kind whether or not similar
to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset; 

“Environmental Incident” means: 
  

	 	(a)	any release of Environmentally Sensitive Material from a Ship; or 

  

	 	(b)	any incident in which Environmentally Sensitive Material is released from a vessel other than a Ship and which involves a collision between a Ship and such other vessel or some other incident of navigation or operation,
in either case, in connection with which a Ship is actually or potentially liable to be arrested, attached, detained or injuncted and/or a Ship and/or any Borrower and/or a Collateral Guarantor and/or the Approved Manager or any operator or manager
of a Ship is at fault or allegedly at fault or otherwise liable to any legal or administrative action; or 

  

	 	(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from a Ship and in connection with which a Ship is actually or potentially liable to be arrested and/or where any Borrower and/or
a Collateral Guarantor and/or the Approved Manager and/or any operator or manager of a Ship is at fault or allegedly at fault or otherwise liable to any legal or administrative action; 

“Environmental Law” means any law relating to pollution or protection of the environment, to the carriage of Environmentally
Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material; 

  
 9 

 “Environmentally Sensitive Material” means oil, oil products and any other
substance (including any chemical, gas or other hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous; 

“Event of Default” means any of the events or circumstances described in Clause 19.1; 

“Extended Employment Contract” means, in respect of a Collateral Ship, any time charterparty, contract of affreightment or
other contract of employment of such ship (including the entry of either Collateral Ship in any pool) which has a tenor exceeding twelve (12) months (including any options to renew or extend such tenor); 

“Fair Market Value” means, in relation to a Ship, its market value determined in accordance with Clause 15.3; 

“FATCA” means: 
  

	 	(a)	sections 1471 to 1474 of the Code or any associated regulations; 

  

	 	(b)	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or
regulation referred to in paragraph (a) above; or 

  

	 	(c)	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation
authority in any other jurisdiction. 

 “FATCA Application Date” means: 

 

	 	(d)	in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

  

	 	(e)	in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from
sources within the US), 1 January 2019; or 

  

	 	(f)	in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019, 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any
change in FATCA after the date of this Agreement. 
 “FATCA Deduction” means a deduction or withholding from a payment under
a Finance Document required by or under FATCA; 
 “FATCA Exempt Party” means a party to a Finance Document that is entitled
to receive payments free from any FATCA Deduction; 
 “Finance Documents” means collectively: 

 

	 	(a)	this Agreement; 

  
 10 

	 	(b)	the Agency and Trust Deed; 

  

	 	(c)	the Corporate Guarantee; 

  

	 	(d)	the General Assignments; 

  

	 	(e)	the Mortgages; 

  

	 	(f)	the Account Security Deeds; 

  

	 	(g)	the BNP Account Security Deeds 

  

	 	(h)	the Approved Time Charter Assignments; 

  

	 	(i)	the Manager’s Undertaking; 

  

	 	(j)	the Shares Pledges; 

  

	 	(k)	the Collateral Guarantees; 

  

	 	(l)	the Collateral General Assignments; 

  

	 	(m)	the Collateral Mortgages; 

  

	 	(n)	the Collateral Charter Assignments; 

  

	 	(o)	the Collateral Manager’s Undertaking; 

  

	 	(p)	the Collateral Shares Pledges; and 

  

	 	(q)	any other document (whether creating a Security Interest or not) which is executed at any time by the Borrowers (or any of them) or any other person as security for, or to establish any form of subordination or
priorities arrangement in relation to, any amount payable to the Creditor Parties under this Agreement or any of the other documents referred to in this definition 

(and a “Finance Document” means each or, as the context may require, any of them); 

“Financial Indebtedness” means, in relation to a person (the “debtor”), a liability of the debtor: 

 

	 	(a)	for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the debtor; 

  

	 	(b)	under any loan stock, bond, note or other security issued by the debtor; 

  

	 	(c)	under any acceptance credit, guarantee or letter of credit facility or dematerialised equivalent made available to the debtor; 

  

	 	(d)	under a financial lease, a deferred purchase consideration arrangement or any other agreement having the commercial effect of a borrowing or raising of money by the debtor; 

 

	 	(e)	under any foreign exchange transaction, any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any such transaction is entered into requires
netting of mutual liabilities, the liability of the debtor for the net amount; or 

  
 11 

	 	(f)	under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person which would fall within paragraphs (a) to (e) if the references to the debtor referred to
the other person 

 “Financial Year” means, each period of 12 months ending on 31 December other than in
the case of the first year which may be such shorter period commencing from the date of incorporation of the relevant company or such other date as the Majority Lenders may agree (such agreement not to be unreasonably withheld); 

“General Assignment” means, in relation to a Ship, a general assignment of its Earnings, Insurances and Requisition
Compensation in the Agreed Form (and “General Assignments” means all of them collectively); 
 “Group”
means at any relevant time the Corporate Guarantor and its Subsidiaries but excluding any company which is publicly listed; 
 “Group
Member” means any member of the Group; 
 “Holding Company” means, in relation to a company or corporation, any
other company or corporation in respect of which it is a Subsidiary; 
 “IACS” means the International Association of
Classification Societies; 
 “IAPPC” means, in relation to a Ship, a valid international air pollution prevention
certificate for such Ship issued pursuant to the MARPOL Protocol; 
 “Insurances” means, in relation to a Ship: 

 

	 	(a)	all policies and contracts of insurance, including entries of that Ship in any protection and indemnity or war risks association, which are effected in respect of that Ship, its Earnings or otherwise in relation to it;
and 

  

	 	(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium; 

“Interest Period” means a period determined in accordance with Clause 6; 

“ISM Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by the
International Maritime Organisation as the same may be amended or supplemented from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of
Compliance” have the same meanings as are given to them in the ISM Code); 
 “ISPS Code” means the International
Ship and Port Facility Security Code as adopted by the International Maritime Organisation (as the same may be amended and supplemented from time to time); 

“ISSC” means a valid and current international ship security certificate issued under the ISPS Code; 

“Latest Accounts” means, in respect of any financial quarter or year of the Group, the latest unaudited (in respect of each
financial quarter) or audited (in respect of each financial year) financial statements required to be prepared pursuant to clause 11.6; 

“Lender” means, subject to Clause 26.6: 

  
 12 

	 	(a)	a bank or financial institution listed in Part A of Schedule 1 and acting through its branch indicated in Part A of Schedule 1 (or through another branch notified to the Agent under Clause 26.14) unless it has delivered
a Transfer Certificate or Certificates covering the entire amounts of its Commitment and its Contribution; and 

  

	 	(b)	the holder for the time being of a Transfer Certificate; 

 “LIBOR” means, in
relation to any period for which an interest rate is to be determined under any provision of a Finance Document: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for that period, the rate per annum determined by the Agent to be the arithmetic mean (rounded upwards to 4 decimal places) of the rates as supplied to the Agent at its request, quoted by
each Reference Bank to leading banks in the London Interbank Market; 

 as of 11:00 am London time on the Quotation Day for
dollars and for a period comparable to the Interest Period of the Loan, that part of the Loan or that Unpaid Sum and if any such rate is less than zero LIBOR shall be deemed to be zero; 

“Liquidity” means: 
  

	 	(a)	cash in hand legally and beneficially owned by any Group Member; and 

  

	 	(b)	cash deposits legally and beneficially owned by any Group Member and which are deposited with (A) the Bank or (B) any other bank or financial institution, 

which in each case is at the free and unrestricted disposal of the relevant Group Member by which it is owned including any funds held with
any bank from time to time to satisfy minimum liquidity requirements; 
 “Loan” means the principal amount which has been
advanced under this Agreement and which is outstanding for the time being; 
 “Major Casualty” means, in relation to a Ship,
any casualty to such Ship in respect of which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $500,000 or the equivalent in any other currency; 

“Majority Lenders” means: 
  

	 	(a)	before an Advance has been made, Lenders whose Commitments total 66.67 per cent. or more of the Total Commitments; and 

  

	 	(b)	after an Advance has been made, Lenders whose Contributions total 66.67 per cent. or more of the Loan; 

“Management Agreement” means, in respect of each Ship, a management agreement made or to be made between the Approved Manager
and the relevant Borrower in such form and substance acceptable to the Agent acting with the authorisation of the Majority Lenders (and “Management Agreements” means all of them collectively); 

“Manager’s Undertaking” means a letter of undertaking from the Approved Manager in the Agreed Form; 

  
 13 

 “Mandatory Cost” means in respect of any Interest Period the amount which the
Lender certifies is the cost to it for making available the Loan for that Interest Period as a result of the Lender’s compliance with any regulation; 

“Margin” means 3.85 per cent. per annum; 

“MARPOL Protocol” means Annex VI (Regulations for the Prevention of Air Pollution from Ships) to the International Convention
for the Prevention of Pollution from Ships 1973 (as amended in 1978 and 1997); 
 “Maturity Date” means, the earlier of
(i) the date falling 18 months after drawdown of the second one of Advance B and Advance C to be drawn down and (ii) 31st December 2018; 

“Mortgage” means, in relation to a Ship, the first preferred or, as the case may be, priority ship mortgage on the Ship under
the relevant Approved Flag in the Agreed Form (and “Mortgages” means all of them collectively); 
 “Negotiation
Period” has the meaning given in Clause 5.10; 
 “Notifying Lender” has the meaning given in Clause 23.1 or 24.1 as
the context requires; 
 “Payment Currency” has the meaning given in Clause 21.4; 

“Permitted Owners” means, in relation to the Corporate Guarantor, any one or more of Navios Maritime Holdings Inc., Navios
Maritime Partners L.P., Mrs Angeliki Frangou and their respective Affiliates; 
 “Permitted Security Interests” means: 

 

	 	(a)	Security Interests created by the Finance Documents; 

  

	 	(b)	liens for unpaid master’s and crew’s wages in accordance with usual maritime practice; 

  

	 	(c)	liens for salvage; 

  

	 	(d)	liens arising by operation of law for not more than 2 months’ prepaid hire under any charter in relation to a Ship not prohibited by this Agreement; 

 

	 	(e)	liens for master’s disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Ship,
provided such liens do not secure amounts more than 60 days overdue (unless the overdue amount is being contested by the relevant Borrower in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clauses
14.13(h); 

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses while the relevant Borrower is actively prosecuting or defending such proceedings
or arbitration in good faith by appropriate steps; 

  

	 	(g)	Security Interests arising by operation of law in respect of taxes which are not overdue for payment or in respect of taxes being contested in good faith by appropriate steps and in respect of which appropriate reserves
have been made; and 

  

	 	(h)	Any right of pledge and/or set off created pursuant to the general banking conditions (algemene bankvoorwaarden) of ABN AMRO Bank NV; 

  
 14 

 “Pertinent Document” means: 

 

	 	(a)	any Finance Document; 

  

	 	(b)	any policy or contract of insurance contemplated by or referred to in Clause 13 or any other provision of this Agreement or another Finance Document; 

 

	 	(c)	any other document contemplated by or referred to in any Finance Document; and 

  

	 	(d)	any document which has been or is at any time sent by or to the Agent or the Security Trustee in contemplation of or in connection with any Finance Document or any policy, contract or document falling within paragraphs
(b) or (c); 

 “Pertinent Jurisdiction”, in relation to a company, means: 

 

	 	(a)	England and Wales; 

  

	 	(b)	the country under the laws of which the company is incorporated or formed; 

  

	 	(c)	a country in which the company has the centre of its main interests or in which the company’s central management and control is or has recently been exercised; 

 

	 	(d)	a country in which the overall net income of the company is subject to corporation tax, income tax or any similar tax; 

  

	 	(e)	a country in which assets of the company (other than securities issued by, or loans to, related companies) having a substantial value are situated, in which the company maintains a permanent place of business, or in
which a Security Interest created by the company must or should be registered in order to ensure its validity or priority; and 

  

	 	(f)	a country the courts of which have jurisdiction to make a winding up, administration or similar order in relation to the company or which would have such jurisdiction if their assistance were requested by the courts of
a country referred to in paragraphs (b) or (c); 

 “Pertinent Matter” means: 

 

	 	(a)	any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document; or 

  

	 	(b)	any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph (a); 

and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or
on or at any time after that signing; 
 “Potential Event of Default” means an event or circumstance which, with the giving
of any notice, the lapse of time, a determination of the Majority Lenders and/or the satisfaction of any other condition, would constitute an Event of Default; 

“Quotation Date” means, in relation to any Interest Period (or any other period for which an interest rate is to be determined
under any provision of a Finance Document), the day on which quotations would ordinarily be given by leading banks in the London Interbank Market for deposits in the currency in relation to which such rate is to be determined for delivery on the
first day of that Interest Period or other period; 

  
 15 

 “Reference Banks” means the branch of ABN AMRO Bank N.V. at 93 Coolsingel, 3012
AE Rotterdam, The Netherlands and the London branch of ABN AMRO Bank N.V. or such other banks as may be appointed by the Bank in consultation with the Borrowers 

“Relevant Person” has the meaning given in Clause 19.9; 

“Repayment Date” means a date on which a repayment of the Loan is required to be made under Clause 8.1; 

“Requisition Compensation” includes all compensation or other moneys payable by reason of any act or event such as is referred
to in paragraph (b) of the definition of “Total Loss”; 
 “Restricted Person” means a person that is:

  

	 	(a)	listed on, or owned or controlled by a person listed on any Sanctions List; 

  

	 	(b)	located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of a country or territory that is the target of country-wide Sanctions; or

  

	 	(c)	otherwise a target of Sanctions 

 “Retention Account” means an account in the
joint names of the Borrowers and the Collateral Guarantors with the Account Bank designated “[Navios Maritime Containers] - Retention Account”, or any other account (with that or another office of
the Account Bank or with a bank or financial institution other than the Account Bank) which is designated by the Agent as such account for the purposes of this Agreement; 

“Sanctions” means any economic or trade sanctions laws, regulations, embargoes or restrictive measures administered, enacted
or enforced by: 
  

	 	(i)	the United States government; 

  

	 	(ii)	the United Nations; 

  

	 	(iii)	the European Union or any of its Member States; 

  

	 	(iv)	the United Kingdom; 

  

	 	(v)	any country to which any Security Party or any other member of the Group or any of their Affiliates is bound; or 

  

	 	(vi)	the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US Department of Treasury (“OFAC”), the United
States Department of State, and Her Majesty’s Treasury (“HMT”) (together “Sanctions Authorities” and each, “Sanctions Authority”); 

“Sanctions List” means the “Specially Designated Nationals and Blocked Persons” list issued by OFAC, the
“Consolidated List of Financial Sanctions Targets and Investment Ban List” issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities; 

  
 16 

 “Screen Rate” means the London interbank offered rate administered by ICE
Benchmark Administration Limited (or any other person which takes over the administration of that rate) for dollars for the relevant period displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays
that rate), or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters. If such page or service ceases to be available, the Agent may specify another page or service displaying the
appropriate rate after consultation with the Borrowers; 
 “Secured Liabilities” means all liabilities which the Borrowers,
the Security Parties or any of them have, at the date of this Agreement or at any later time or times, under or in connection with any Finance Document or any judgment relating to any Finance Document; and for this purpose, there shall be
disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country; 

“Security Interest” means: 
  

	 	(a)	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind; 

  

	 	(b)	the security rights of a plaintiff under an action in rem; and 

  

	 	(c)	any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the position in which B would have been had he held a
security interest over an asset of A; but this paragraph (c) does not apply to a right of set off or combination of accounts conferred by the standard terms of business of a bank or financial institution; 

“Security Party” means the Corporate Guarantor, the Collateral Guarantors, the Approved Manager and any other person (except a
Creditor Party) who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the last paragraph of the definition of “Finance Documents”;

 “Security Period” means the period commencing on the date of this Agreement and ending on the date on which the Agent
notifies the Borrowers, the Security Parties and the Lenders anks that: 
  

	 	(a)	all amounts which have become due for payment by the Borrowers or any Security Party under the Finance Documents have been paid; 

  

	 	(b)	no amount is owing or has accrued (without yet having become due for payment) under any Finance Document; 

  

	 	(c)	neither the Borrowers or any Security Party has any future or contingent liability under Clause 20, 21 or 22 or any other provision of this Agreement or another Finance Document; 

“Security Trustee” means ABN AMRO Bank N.V., duly incorporated under the laws of Netherlands, having its registered
office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands, acting for the purposes of this Agreement through its office at Coolsingel 93, 3012, AE Rotterdam, The Netherlands (or of such other address as may last have been notified to the
Borrowers pursuant to clause 26.4) or any successor of it appointed under clause 5 of the Agency and Trust Deed; 

  
 17 

 “Seller” means either Ship F Seller or Ship G Seller and “Sellers”
refers to both; 
 “Shareholder” means, Navios Partners Containers Inc. a company incorporated in the Marshall Islands and
having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 
 “Shares
Pledge” means, in relation to each Borrower, a deed creating security in respect of the issued share capital of that Borrower executed or to be executed by the Shareholder in favour of the Security Trustee in the Agreed Form (and
“Shares Pledges” means all of them collectively); 
 “Ship” means each or, as the context may otherwise
require, any of Ship A, Ship B, Ship C, Ship D, Ship E, and (following their acquisition by the relevant Collateral Guarantors) the Collateral Ships (and “Ships” means all of them collectively); 

“SMC” means a safety management certificate issued in respect of a Ship in accordance with Rule 13 of the ISM Code; 

“Total Loss” means, in relation to a Ship: 
  

	 	(a)	actual, constructive, compromised, agreed or arranged total loss of such Ship; 

  

	 	(b)	requisition for title or other compulsory acquisition including, if that ship is not released therefrom within the Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation
howsoever for any reason (but excluding requisition for use or hire) by or on behalf of any Government Entity or other competent authority or by pirates, hijackers, terrorists or similar persons; “Relevant Period” means for the purposes of
this definition of Compulsory Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters confirm in writing (in terms satisfactory to the Bank) prior to the end of such ninety (90) day period that such capture, seizure,
detention or confiscation will be fully covered (subject to any applicable deductible) by the relevant Owner’s war risks insurance if continuing for a further period exceeding ten (10) calendar months, the shorter of twelve
(12) months and such period at the end of which cover is confirmed to attach; and 

  

	 	(c)	any arrest, capture, seizure or detention of such Ship (including any hijacking or theft) unless it is within 90 days redelivered to the full control of the Borrower owning such Ship; 

“Total Assets” and “Total Liabilities” mean, respectively, the total assets and total liabilities of the
Group as evidenced at any relevant time by the Latest Accounts; 
 “Total Loss Date” means, in relation to a Ship: 

 

	 	(a)	in the case of an actual loss of such Ship, the date on which it occurred or, if that is unknown, the date when such Ship was last heard of; 

 

	 	(b)	in the case of a constructive, compromised, agreed or arranged total loss of such Ship, the earliest of: 

  

	 	(i)	the date on which a notice of abandonment is given to the insurers; and 

  

	 	(ii)	the date of any compromise, arrangement or agreement made by or on behalf of the Borrower owning such Ship with such Ship’s insurers in which the insurers agree to treat such Ship as a total loss; and

  
 18 

	 	(c)	in the case of any other type of total loss, on the date (or the most likely date) on which it appears to the Agent that the event constituting the total loss occurred; 

“Transfer Certificate” has the meaning given in Clause 26.2; and 

“Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Deed; and 

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

 Words and expressions defined in Schedule 6 (Ship Details) when used in this Agreement shall have the meanings given to them in Schedule 6
(Ship Details) as if the same were set out in full in this clause 1.1. 
  

	1.2	Construction of certain terms. In this Agreement: 

 “administration
notice” means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to be filed with the court or given to a person prior to, or in
connection with the appointment of an administrator; 
 “approved” means, for the purposes of Clause 13, approved in writing
by the Agent; 
 “asset” includes every kind of property, asset, interest or right, including any present, future or
contingent right to any revenues or other payment; 
 “company” includes any partnership, joint venture and unincorporated
association; 
 “consent” includes an authorisation, consent, approval, resolution, licence, exemption, filing,
registration, notarisation and legalisation; 
 “contingent liability” means a liability which is not certain to arise
and/or the amount of which remains unascertained; 
 “document” includes a deed; also a letter or fax; 

“excess risks” means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not
recoverable under the hull and machinery policies in respect of the Ship in consequence of its insured value being less than the value at which the Ship is assessed for the purpose of such claims; 

“expense” means any kind of cost, charge or expense (including all legal costs, out-of-pocket expenses, charges and expenses) and any applicable value added or other tax; 

“law” includes any order or decree, any form of delegated legislation, any treaty or international convention and any
regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 

“legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or
investigation; 
 “liability” includes every kind of debt or liability (present or future, certain or contingent), whether
incurred as principal or surety or otherwise; 
 “months” shall be construed in accordance with Clause 1.3; 

  
 19 

 “obligatory insurances” means, in relation to a Ship, all insurances effected or
which the relevant Borrower is obliged to effect in respect of each Ship, under Clause 13 or any other provision of this Agreement or another Finance Document; 

“parent company” has the meaning given in Clause 1.4; 

“person” includes any company; any state, political sub-division of a state and local
or municipal authority; and any international organisation; 
 “policy”, in relation to any insurance, includes a slip,
cover note, certificate of entry or other document evidencing the contract of insurance or its terms; 
 “protection and indemnity
risks” means the usual risks covered by a protection and indemnity association managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not
recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6 of the International Hull Clauses (01/11/02 or 01/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/11/1995 or 1/10/83) or the Institute
Amended Running Down Clause (1/10/71) or any equivalent provision; 
 “regulation” includes any present or future
regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any Government Entity, central bank or any self-regulatory or other supra-national authority (including, without limitation any present or
future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any Government Entity, central bank or any self-regulatory or other supra-national authority (including, without limitation, any
regulation implementing or complying with (1) the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004, in the form existing
on the date of this Agreement (“Basel II”) and/or (2) Basel III and/or (3) Basel IV and/or (4) any other law or regulation which, at any time and from time to time, implements and/or amends and/or supplements and/or re-enacts and/or supersedes, whether in whole or in part, Basel II and/or Basel III and/or Basel IV (including CRD IV and CRR), and whether such implementation, application or compliance is by a Government
Entity, a lender or any company affiliated to it); 
 “subsidiary” has the meaning given in Clause 1.4; 

“tax” includes any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any
political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected penalty, interest or fine; and 

“war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02) or
clause 24 of the Institute Time Clauses (Hulls) (1/11/1995) or clause 23 of the Institute Time Clause (Hulls) (1/10/83). 
  

	1.3	Meaning of “month”. A period of one or more “months” ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period
started (“the numerically corresponding day”), but: 

  

	 	(a)	on the Business Day following the numerically corresponding day if the numerically corresponding day is not a Business Day or, if there is no later Business Day in the same calendar month, on the Business Day preceding
the numerically corresponding day; or 

  
 20 

	 	(b)	on the last Business Day in the relevant calendar month, if the period started on the last Business Day in a calendar month or if the last calendar month of the period has no numerically corresponding day;

 and “month” and “monthly” shall be construed accordingly. 

 

	1.4	Meaning of “subsidiary”. “Subsidiary” of a person means any company or entity directly or indirectly controlled by such person, and for this purpose “control” means the
ownership of more than fifty per cent (50%) of the voting share capital (or equivalent rights of ownership) of such company or entity. 

  

	1.5	General Interpretation. In this Agreement: 

  

	 	(a)	references to, or to a provision of, a Finance Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement or otherwise; 

 

	 	(b)	references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or otherwise;

  

	 	(c)	words denoting the singular number shall include the plural and vice versa; and 

  

	 	(d)	Clauses 1.1 to 1.5 apply unless the contrary intention appears. 

  

	1.6	Headings. In interpreting a Finance Document or any provision of a Finance Document, all clause, sub-clause and other headings in that and any other Finance Document shall
be entirely disregarded. 

  

	1.7	Bail-in 

 Notwithstanding any other term of any
Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of: 
  

	 	(a)	any Bail-In Action in relation to any such liability, including (without limitation): 

  

	 	(i)	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability; 

 

	 	(ii)	a conversion of all, or part of any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and 

 

	 	(iii)	a cancellation of any such liability; and 

  

	 	(b)	a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability. 

In this clause: 
 “Bail-In Action” means the exercise of any Write-down and Conversion Powers. 
 “Bail-In Legislation” means: 

  
 21 

	 	(a)	in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and
investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and 

 

	 	(b)	in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation. 

“EEA Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway. 

“EU Bail-In Legislation Schedule” means the document described as such and published
by the Loan Market Association (or any successor person) from time to time. 
 “Resolution Authority” means any body which
has authority to exercise any Write-down and Conversion Powers. 
 ”Write-down and Conversion Powers” means in relation to
any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule. 
  

	2	FACILITY 

  

	2.1	Amount of facility. Subject to the other provisions of this Agreement, the Lenders shall make or, as the case may be, continue to make available to the Borrowers a loan facility of up to $40,000,000 in three
Advances being: 

  

	(a)	Advance A in the amount of up to the least of (i) $34,320,000 and (ii) 80% of the aggregate Fair Market Value of the Chartered Ships as at 30 June 2017; 

 

	(b)	Advance B in an amount equal to the lesser of (i) $3,180,000 and (ii) 70% of the Fair Market Value of Vessel F and if drawn after Advance C, the lesser of (aa) the difference between $5,680,000 and the drawn amount of
Advance C and (bb) an amount which, when added to Advance A and Advance C, will equal 70% of the aggregate Fair Market Values of all the Ships which will be subject to a Mortgage on the Drawdown Date in respect of Advance B, no more than 30 days
prior to the Drawdown Date in respect of Advance B, to be applied in or towards financing or refinancing the acquisition of Ship F; 

  

	(c)	Advance C in an amount equal to the lesser of (i) $3,180,000 and (ii) 70% of the Fair Market Value of Vessel G and if drawn after Advance B, the lesser of (aa) the difference between $5,680,000 and the drawn amount of
Advance B and (bb) an amount which, when added to Advance A and Advance B, will equal 70% of the aggregate Fair Market Values of all the Ships which will be subject to a Mortgage on the Drawdown Date in respect of Advance C, no more than 30 days
prior to the Drawdown Date in respect of Advance C, to be applied in or towards financing or refinancing the acquisition of Ship G. 

  

	2.2	Lenders’ participations in Advance. Subject to the other provisions of this Agreement, each Lender shall participate in each Advance in the proportion which, as at the relevant Drawdown Date, its Commitment
bears to the Total Commitments. 

  

	2.3	Purpose of Advances. Each Borrower undertakes with each Creditor Party to use each Advance only for the purpose stated in the preamble to this Agreement. 

  
 22 

	3	POSITION OF THE LENDERS 

  

	3.1	Interests several. The rights of the Lenders under this Agreement are several. 

  

	3.2	Individual right of action. Each Lender shall be entitled to sue for any amount which has become due and payable by any Borrower to it under this Agreement without joining the Agent, the Security Trustee, any
other Lender as additional parties in the proceedings. 

  

	3.3	Proceedings requiring Majority Lender consent. Except as provided in Clause 3.2, no Lender may commence proceedings against the Borrowers or any Security Party in connection with a Finance Document without the
prior consent of the Majority Lenders. 

  

	3.4	Obligations several. The obligations of the Lenders under this Agreement are several; and a failure of a Lender to perform its obligations under this Agreement shall not result in: 

 

	 	(a)	the obligations of the other Lenders being increased; nor 

  

	 	(b)	the Borrowers, any Security Party, any other Lender being discharged (in whole or in part) from its obligations under any Finance Document; 

and in no circumstances shall a Lender have any responsibility for a failure of another Lender to perform its obligations under this Agreement.

  

	4	DRAWDOWN 

  

	4.1	Request for Advance. Subject to the following conditions, the Borrowers may request Advance B and Advance C to be made by ensuring that the Agent receives a completed Drawdown Notice not later than 11.00 a.m.
(Rotterdam time) 3 Business Days prior to the intended Drawdown Date of such Advance. 

  

	4.2	Availability. The conditions referred to in Clause 4.1 are that: 

  

	 	(a)	the Drawdown Date for an Advance has to be a Business Day during the Availability Period; 

  

	 	(b)	the amount of the Advance B and Advance C shall not exceed the amount set out in Clause 2.1; and 

  

	 	(c)	all applicable conditions precedent set out in Clause 9.1 shall have been fulfilled. 

  

	4.3	Notification to Lenders of receipt of a Drawdown Notice. The Agent shall promptly notify the Lenders that it has received a Drawdown Notice and shall inform each Lender of: 

 

	 	(a)	the amount of the Advance and the Drawdown Date; 

  

	 	(b)	the amount of that Lender’s participation in the Advance; and 

  

	 	(c)	the duration of the Interest Period. 

  

	4.4	Drawdown Notice irrevocable. A Drawdown Notice must be signed by a director or an authorised signatory of the Borrowers; and once served, a Drawdown Notice cannot be revoked without the prior consent of the
Agent, acting on the authority of the Majority Lenders. 

  
 23 

	4.5	Lenders to make available Contributions. Subject to the provisions of this Agreement, each Lender shall, on and with value on each Drawdown Date, make available to the Agent the amount due from that Lender under
Clause 2.2. 

  

	4.6	Disbursement of Advance. Subject to the provisions of this Agreement, the Agent shall on each Drawdown Date pay to the Borrowers for on-payment to the relevant Collateral;
Guarantor the amounts which the Agent receives from the Lenders under Clause 4.5; and that payment to the Borrowers shall be made: 

  

	 	(a)	to the account which the Borrowers specify in the relevant Drawdown Notice; and 

  

	 	(b)	in the like funds as the Agent received the payments from the Lenders. 

  

	4.7	Disbursement of Advances to third party. A payment by the Agent under Clause 4.6 shall constitute the making of the relevant Advance and the Borrowers shall thereupon become indebted, as principal and direct
obligor, to each Lender in an amount equal to that Lender’s Contribution. 

  

	4.8	Use of proceeds 

  

	 	(a)	the Bank shall have no responsibility for the Borrowers’ use of the proceeds of the Loan. 

  

	 	(b)	The Borrowers shall not, and shall procure that no Security Party or other Group Member or any affiliate of any of them shall, permit or authorise any other person to, directly or indirectly, use, lend, make payments
of, contribute or otherwise make available, all or any part of the proceeds of the Loan or other transactions contemplated by this Agreement to fund or facilitate trade, business or other activities: (i) involving or for the benefit of any
Restricted Person; or (ii) in any other manner that could result in a Borrower, any other Security Party or a Creditor Party being in breach of any Sanctions or becoming a Restricted Person. 

 

	4.9	Cancellation. If any part of the Commitment has not been drawn down under this Agreement at the end of the Availability Period, such undrawn portion shall, on the day following the last day of the applicable
Availability Period, be permanently and irrevocably cancelled; it is hereby agreed that any undrawn portion of any part of the Total Commitments at the end of the Availability Period shall, on the day following the last day of the Availability
Period, be permanently and irrevocably cancelled. 

  

	5	INTEREST 

  

	5.1	Payment of normal interest. Subject to the provisions of this Agreement, interest on an Advance shall be paid by the Borrowers on the last day of the Interest Period applicable to such Advance. 

 

	5.2	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest on each Advance in respect of an Interest Period applicable to it shall be the aggregate of (a) the Margin,
(b) LIBOR and (c) Mandatory Costs (if any) for that Interest Period. 

  

	5.3	Payment of accrued interest. In the case of an Interest Period of longer than 3 months, accrued interest shall be paid every 3 months during that Interest Period and on the last day of that Interest Period.

  

	5.4	Notification of Interest Periods and rates of normal interest. The Agent shall notify the Borrowers and each Lender of: 

  

	 	(a)	each rate of interest; and 

  
 24 

	 	(b)	the duration of each Interest Period; 

 as soon as reasonably practicable after each is
determined. 
  

	5.5	Obligation of Reference Banks to quote. A Reference Bank which is a Lender shall use all reasonable efforts to supply any quotation required of it for the purposes of fixing a rate of interest under this
Agreement. 

  

	5.6	Absence of quotations by Reference Banks. If any Reference Bank fails to supply a quotation when it is required to do so, the Agent shall determine the relevant LIBOR on the basis of the quotations supplied by
the other Reference Bank or Banks; but if 2 or more of the Reference Banks fail to provide a quotation, the relevant rate of interest shall be determined by the Agent. 

 

	5.7	Market disruption. The following provisions of this Clause 5 apply if: 

  

	 	(a)	no Screen Rate is available for an Interest Period and 2 or more of the Reference Banks do not before 1.00 p.m. (London time) on the Quotation Date provide quotations to the Agent in order to fix LIBOR; or

  

	 	(b)	at least 1 Business Day before the start of an Interest Period, Lenders having Contributions together amounting to more than 50 per cent. of the Loan (or, if no Advance has been drawn, Lenders having Commitments
amounting to more than 50 per cent. of the aggregate of the Total Commitments) notify the Agent that by reason of changes affecting the London Interbank Market, adequate and fair means do not exist for determining the rate of interest on an
Advance (or part of it) for that Interest Period at or about 1.00 p.m. (London time) on the Quotation Date for the Interest Period; or 

  

	 	(c)	at least 1 Business Day before the start of an Interest Period, the Agent is notified by a Lender (the “Affected Lender”) that for any reason it is unable to obtain Dollars in the London Interbank
Market in order to fund its Contribution, as the case may be (or any part of it) during that Interest Period. 

  

	5.8	Notification of market disruption. The Agent shall promptly notify the Borrowers and each of the Lenders stating the circumstances falling within Clause 5.7 which have caused its notice to be given.

  

	5.9	Suspension of drawdown. If the Agent’s notice under Clause 5.8 is served before an Advance is to be made: 

  

	 	(a)	in a case falling within Clauses 5.7(a) or (b), the Lenders’ obligations to make that Advance; 

  

	 	(b)	in a case falling within Clause 5.7(c), the Affected Lender’s obligation to participate in that Advance, 

(i) in the case of Clause 5.9(a), shall be made on the basis of an alternative interest rate and interest period which the Lenders or (as the
case may be) the Affected Lender may select as cost of funding of the Lenders or (as the case may be) the Affected Lender, in Dollars or in any available currency of their or its Contribution plus the Margin and Clauses 5.10, 5.11, 5.12 and 5.13
shall apply; and (ii) in the case of Clause 5.9(b), shall be suspended while the circumstances referred to in the Agent’s notice continue and thereafter Clauses 5.10, 5.11, 5.12 and 5.13 shall apply. 

  
 25 

	5.10	Negotiation of alternative rate of interest. If the Agent serves a notice under Clause 5.8, the Borrowers, the Agent and the Lenders or (as the case may be) the Affected Lender shall use reasonable endeavours to
agree, within the 30 days after the date on which the Agent serves its notice under Clause 5.8 (the “Negotiation Period”), an alternative interest rate or (as the case may be) an alternative basis for the Lenders or (as the case may
be) the Affected Lender to fund or continue to fund their or its Contribution during the Interest Period concerned. 

  

	5.11	Application of agreed alternative rate of interest. Any alternative interest rate or an alternative basis which is agreed during the Negotiation Period shall take effect in accordance with the terms agreed.

  

	5.12	Alternative rate of interest in absence of agreement. If an alternative interest rate or alternative basis is not agreed within the Negotiation Period, and the relevant circumstances are continuing at the end of
the Negotiation Period, then the Agent shall, with the agreement of each Lender or (as the case may be) the Affected Lender, set an interest period and interest rate representing the cost of funding of the Lenders or (as the case may be) the
Affected Lender in Dollars or in any available currency of their or its Contribution plus the Margin; and the procedure provided for by this Clause 5.12 shall be repeated if the relevant circumstances are continuing at the end of the interest period
so set by the Agent. 

  

	5.13	Notice of prepayment. If the Borrowers do not agree with an interest rate set by the Agent under Clause 5.12, the Borrowers may give the Agent not less than 15 Business Days’ notice of their intention to
prepay at the end of the interest period set by the Agent (in the case where a notice has been served under Clause 5.8 after an Advance has been made) or the Borrowers may notify the Agent of their intention not to proceed with the relevant drawdown
(in the case where a notice has been served under Clause 5.8 prior to making an Advance). 

  

	5.14	Prepayment; termination of Commitments. A notice under Clause 5.13 shall be irrevocable; the Agent shall promptly notify the Lenders or (as the case may require) the Affected Lender of the Borrowers’ notice
of intended prepayment; and: 

  

	 	(a)	on the date on which the Agent serves that notice, the Total Commitments or (as the case may require) the Commitment of the Affected Lender so far as they relate to the relevant Advance shall be cancelled; and

  

	 	(b)	on the last Business Day of the interest period set by the Agent, the Borrowers shall prepay (without premium or penalty) the Loan or, as the case may be, the Affected Lender’s Contribution, together with accrued
interest thereon at the applicable rate plus the Margin. 

  

	5.15	Application of prepayment. The provisions of Clause 8 shall apply in relation to the prepayment. 

  

	6	INTEREST PERIODS 

  

	6.1	Interest Periods. The first Interest Period applicable to Advance B and Advance C shall commence on its Drawdown Date and shall terminate simultaneously with the then current Interest Period for Advance A, and
thereafter each subsequent Interest Period shall be applicable to both Advances and shall commence on the expiry of the preceding Interest Period and each Interest Period shall, be: 

 

	 	(a)	3 months; or 

  

	 	(b)	such other period as the Agent may, with the authorisation of all the Lenders, agree with the Borrowers; 

  
 26 

 provided that in respect of an amount due to be repaid under Clause 8.1 on a particular
Repayment Date, an Interest Period relating to such Advance shall end on that Repayment Date. 
  

	6.2	Non-availability of matching deposits for Interest Period selected. If, after the Borrowers have selected and the Lenders have agreed an Interest Period longer than
3 months, any Lender notifies the Agent by 11.00 a.m. (Rotterdam time) on the third Business Day before the commencement of that Interest Period that it is not satisfied that deposits in Dollars for a period equal to that Interest Period will be
available to it in the London Interbank Market when that Interest Period commences, that Interest Period shall be of 3 months. 

  

	7	DEFAULT INTEREST 

  

	7.1	Payment of default interest on overdue amounts. The Borrowers shall pay interest in accordance with the following provisions of this Clause 7 on any amount payable by the Borrowers under any Finance Document
which the Agent, the Security Trustee or the other designated payee does not receive on or before the relevant date, that is: 

  

	 	(a)	the date on which the Finance Documents provide that such amount is due for payment; or 

  

	 	(b)	if a Finance Document provides that such amount is payable on demand, the date on which the demand is served; or 

  

	 	(c)	if such amount has become immediately due and payable under Clause 19.4, the date on which it became immediately due and payable. 

  

	7.2	Default rate of interest. Interest shall accrue on an overdue amount from (and including) the relevant date until the date of actual payment (as well after as before judgment) at the rate per annum determined by
the Agent to be 2 per cent. above: 

  

	 	(a)	in the case of an overdue amount of principal, the higher of the rates set out at Clauses 7.3(a) and (b); or 

  

	 	(b)	in the case of any other overdue amount, the rate set out at Clause 7.3(b). 

  

	7.3	Calculation of default rate of interest. The rates referred to in Clause 7.2 are: 

  

	 	(a)	the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period applicable to it); 

 

	 	(b)	the Margin plus and Mandatory Costs (if any) plus, in respect of successive periods of any duration (including at call) up to 3 months which the Agent may select from time to time: 

 

	 	(i)	LIBOR; or 

  

	 	(ii)	if the Agent determines that Dollar deposits for any such period are not being made available to any Reference Bank by leading banks in the London Interbank Market in the ordinary course of business, a rate from time to
time determined by the Agent by reference to the cost of funds to the relevant Lenders from such other sources as the Agent (after consultation with the Reference Bank) may from time to time determine. 

 

	7.4	Notification of interest periods and default rates. The Agent shall promptly notify the Lenders and the Borrowers of each interest rate determined by the Agent under Clause 7.3 and of each period selected by the
Agent for the purposes of paragraph (b) of that Clause; but this shall not be taken to imply that the Borrowers are liable to pay such interest only with effect from the date of the Agent’s notification. 

  
 27 

	7.5	Payment of accrued default interest. Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the period by reference to which it was determined; and
the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount is due. 

  

	7.6	Compounding of default interest. Any such interest which is not paid at the end of the period by reference to which it was determined shall thereupon be compounded. 

 

	8	REDUCTION, REPAYMENT AND PREPAYMENT 

  

	8.1	Repayment of Advances. The Borrowers shall repay: 

  

	(a)	Advance A by six (6) consecutive three-monthly instalments as follows: 

  

	 	(i)	each in an amount equal to 9.375% of Advance A; and 

  

	 	(ii)	a balloon payment payable together with the last instalment in an amount equal to 43.75% of Advance A; 

  

	(b)	Advance B by six (6) consecutive three-monthly instalments as follows: 

  

	 	(i)	each in an amount equal to 9.375% of Advance B; and 

  

	 	(ii)	a balloon payment payable together with the last instalment in an amount equal to 43.75% of Advance B, 

  

	(c)	Advance C by six (6) consecutive three-monthly instalments as follows: 

  

	 	(i)	each in an amount equal to 9.375% of Advance C; and 

  

	 	(ii)	a balloon payment payable together with the last instalment in an amount equal to 43.75% of Advance C 

Provided that if the Borrowers do not draw down either of Advance B or Advance C then they shall make a prepayment of the Loan on the
last day of the Availability Period in an amount so that the Loan equals 70% of the aggregate Fair Market Value on the date of such prepayment of such of the Ships as is then subject to a Mortgage. 

 

	8.2	Repayment Dates. The first instalment under: 

  

	(a)	Advance A shall be repaid on 30 September 2017 and the last instalment on the Maturity Date; and 

  

	(b)	Advance B and Advance C shall be repaid on 30 September 2017 and the last instalment on the Maturity Date. 

  

	8.3	Final Repayment Date. On the final Repayment Date, the Borrowers shall additionally pay to the Agent for the account of the Creditor Parties all other sums then accrued or owing under any Finance Document.

  

	8.4	Voluntary prepayment. Subject to the following conditions, the Borrowers may prepay the whole or any part of the Loan on the last day of an Interest Period. 

  
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	8.5	Conditions for voluntary prepayment. The conditions referred to in Clause 8.5 are that: 

  

	 	(a)	a partial prepayment shall be in an amount of $500,000 or a higher integral multiple of $500,000; 

  

	 	(b)	the Agent has received from the Borrowers at least 10 Business Days’ prior written notice specifying the date on which the prepayment is to be made; and 

 

	 	(c)	the Borrowers have provided evidence satisfactory to the Agent that any consent required by any Borrower or any Security Party in connection with the prepayment has been obtained and remains in force, and that any
requirement relevant to this Agreement which affects any Borrower or any Security Party has been complied with; and 

  

	 	(d)	each partial prepayment shall be applied pro rata against the Advances, and pro rata against the repayment instalments of each Advance (including the relevant balloon payment) which are at the time being outstanding,
unless the Lenders agree otherwise in writing. 

  

	8.6	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without the consent of the Agent, given with the authorisation of the Majority Lenders, and the amount specified in the
prepayment notice shall become due and payable by the Borrowers on the date for prepayment specified in the prepayment notice. 

  

	8.7	Notification of notice of prepayment. The Agent shall notify the Lenders promptly upon receiving a prepayment notice, and shall provide any Lender which so requests with a copy of any document delivered by
the Borrowers under Clause 8.6(c). 

  

	8.8	Mandatory prepayment. 

  

	 	(a)	The Borrowers shall be obliged to prepay the portion of the Loan specified in Clause 8.9: 

  

	 	(i)	if a Ship is sold, on or before the date on which the sale is completed by delivery of such Ship to the relevant buyer; or 

  

	 	(ii)	if, after delivery, a Ship becomes a Total Loss, on the earlier of the date falling 120 days (or such longer period as the Agent, acting on the instructions of the Majority Lenders, may agree (such consent not to be
unreasonably withheld)) after the Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss. 

  

	8.9	Amounts of mandatory prepayments. The amount of the Loan to be prepaid in the circumstances contemplated in Clause 8.8(a) is the greatest of: 

 

	 	(a)	the amount of the sale or total loss proceeds payable in respect of such sale or Total Loss; 

  

	 	(b)	an amount that, if the ratio set out in Clause 15.1 were applied immediately following the making of such prepayment, the Borrowers would not be obliged to provide additional security or prepay part of the Loan under
that Clause; and 

  

	 	(c)	an amount so that if the ratio of (i) the aggregate of the Fair Market Values (determined as provided in Clause 15.3) of the Ships plus the net realisable value of any additional security previously provided under
Clause 15 to (ii) the Loan is the same after such prepayment is made as it was before such prepayment is made. 

  
 29 

	8.10	Mandatory prepayment – Loan. The Borrowers shall be obliged to prepay the whole Loan, and any undrawn part of the Total Commitment shall be cancelled upon: 

 

	(a)	the circumstances referred to in Clause 23 (illegality) arising, and in accordance with that Clause; or 

  

	(b)	there occurs any Change of Control Event. 

  

	8.11	Amounts payable on prepayment. A prepayment shall be made together with accrued interest (and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid and, if the prepayment is not
made on the last day of an Interest Period applicable thereto, together with any sums payable under Clause 21.1(c) but without premium or penalty. 

  

	8.12	Voluntary cancellation of Commitments. Subject to the following conditions, the Borrowers may cancel the whole or any part of the Total Commitment. 

 

	8.13	Conditions for cancellation of Commitments. The conditions referred to in Clause 8.12 are that: 

  

	 	(a)	a partial cancellation shall be $500,000 or a higher integral multiple of $500,000; 

  

	 	(b)	the Agent has received from the Borrowers at least 10 Business Days’ prior written notice specifying the amount of the Total Commitments to be cancelled and the date on which the cancellation is to take effect.

  

	8.14	Effect of notice of cancellation. The service of a cancellation notice given under Clause 8.13(b) shall cause the amount of the Total Commitments specified in the notice to be permanently cancelled,
following which: 

  

	 	(a)	in the case of a permanent cancellation of part of the Total Commitments the Commitment of each Lender shall be permanently reduced pro rata; and 

 

	 	(b)	the amounts by which the Total Commitments shall be periodically reduced pursuant to Clause 8.16(a) shall be reduced pro rata by the amount by which the Total Commitments has been permanently cancelled.

  

	8.15	No re-borrowing. No amount prepaid or cancelled under Clauses 8.5, 8.9 and 8.12 may be re-borrowed. 

 

	9	CONDITIONS PRECEDENT 

  

	9.1	Documents, fees and no default. Each Lender’s obligation to contribute to an Advance is subject to the following conditions precedent: 

 

	 	(a)	that before the service of the first Drawdown Notice, the Agent receives the documents described in Part A of Schedule 3 in form and substance satisfactory to the Agent and its lawyers; 

 

	 	(b)	that, on the Drawdown Date but prior to the making of Advance B and Advance C, the Agent receives the documents described in Part B of Schedule 3 in form and substance satisfactory to it and its lawyers;

  
 30 

	 	(c)	that, on or before the Drawdown Date, the Agent receives any fees that are due and payable under Clause 20.1 and has received payment of the expenses referred to in Clause 20.2; 

 

	 	(d)	that both at the date of each Drawdown Notice and at each Drawdown Date: 

  

	 	(i)	no Event of Default or Potential Event of Default or any event in Clause 8.8 has occurred and is continuing or would result from the borrowing of the relevant Advance; 

 

	 	(ii)	the representations and warranties in Clause 10.1 and those of the Borrowers or any Security Party which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates
with reference to the circumstances then existing; and 

  

	 	(iii)	none of the circumstances contemplated by Clause 5.7 has occurred and is continuing; 

  

	 	(e)	that, if the ratio set out in Clause 15.1 were applied immediately following the making of the Advance, the Borrowers would not be obliged to provide additional security or prepay part of the Loan under that Clause; and

  

	 	(f)	that the Agent has received, and found to be acceptable to it, any further opinions, consents, agreements and documents in connection with the Finance Documents which the Agent may, with the authorisation of the
Majority Lenders, request by notice to the Borrowers prior to the relevant Drawdown Date. 

  

	9.2	Waiver of conditions precedent. If the Majority Lenders, at their discretion, permit an Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Borrowers shall ensure
that those conditions are satisfied within such period and on such terms as the Agent may specify in writing. 

  

	10	REPRESENTATIONS AND WARRANTIES 

  

	10.1	General. Each Borrower represents and warrants to each Creditor Party as follows. 

  

	10.2	Status. 

  

	 	(a)	Each Borrower is duly incorporated and validly existing under the laws of the Republic of Marshall Islands; 

  

	 	(b)	The Corporate Guarantor and each Collateral Guarantor is duly incorporated and validly existing under the laws of the Republic of the Marshall Islands. 

 

	10.3	Share capital and ownership. The legal title and beneficial ownership of all the issued shares in each Borrower are held by the Shareholder and the ultimate beneficial ownership of all the issued shares in each
Borrower is held by the Corporate Guarantor, free of any Security Interest or other claim. 

  

	10.4	Corporate power. Each Borrower and each Security Party has the corporate capacity, and has taken all corporate action and obtained all consents necessary for it: 

 

	 	(a)	to execute the Finance Documents to which each Borrower and the relevant Security Party is a party; and 

  

	 	(b)	in the case of each Borrower, to make all the payments contemplated by, and to comply with, the Finance Documents to which it is a party. 

  
 31 

	10.5	Consents in force. All the consents referred to in Clause 10.4 remain in force and nothing has occurred which makes any of them liable to revocation. 

 

	10.6	Legal validity; effective Security Interests. The Finance Documents to which each Borrower or a Security Party is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable,
registration as provided for in the Finance Documents): 

  

	 	(a)	constitute that Borrower’s or that Security Party’s legal, valid and binding obligations enforceable against that Borrower or that Security Party in accordance with their respective terms; and

  

	 	(b)	create legal, valid and binding Security Interests enforceable in accordance with their respective terms over all the assets to which they, by their terms, relate; 

subject to any relevant insolvency laws affecting creditors’ rights generally. 

 

	10.7	No third party Security Interests. Without limiting the generality of Clause 10.6, at the time of the execution and delivery of each Finance Document: 

 

	 	(a)	the relevant Borrower or the relevant Security Party which is party to that Finance Document will have the right to create all the Security Interests which that Finance Document purports to create; and

  

	 	(b)	no third party will have any Security Interest (except for Permitted Security Interests) or any other interest, right or claim over, in or in relation to any asset to which any such Security Interest, by its terms,
relates. 

  

	10.8	No conflicts. The execution by each Borrower and each Security Party of each Finance Document and each Approved Time Charter to which it is a party and (in the case of the Borrowers) the Management Agreements,
and the borrowing by the Borrowers of the Loan and their and each Security Party’s compliance with each Finance Document to which it is a party will not involve or lead to a contravention of: 

 

	 	(a)	any law or regulation; or 

  

	 	(b)	the constitutional documents of any Borrower or any Security Party; or 

  

	 	(c)	any contractual or other obligation or restriction which is binding on the Borrowers (or any of them) or any of the assets of the Borrowers and the Security Parties. 

 

	10.9	No withholding taxes. All payments which any Borrower or any Security Party is liable to make under the Finance Documents to which it is a party may be made without deduction or withholding for or on account of
any tax payable under any law of any Pertinent Jurisdiction. 

  

	10.10	No default. No Event of Default or Potential Event of Default has occurred and is continuing. 

  

	10.11	Information. All information which has been provided in writing by or on behalf of any Borrower or any Security Party to any Creditor Party in connection with any Finance Document satisfied the requirements of
Clause 11.5; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 11.7; and there has been no material adverse change in the financial position or state of affairs of any Borrower or any Security Party
from that disclosed in the latest of those accounts. 

  
 32 

	10.12	No litigation. No legal or administrative action involving any Borrower or any Security Party (including action relating to any alleged or actual breach of the ISM Code, the ISPS Code or the MARPOL Protocol) has
been commenced or taken or, to any Borrower’s knowledge, is likely to be commenced or taken which, in either case, would be likely to have a material adverse effect on that Borrower’s or that Security Party’s financial position or
profitability. 

  

	10.13	Validity and completeness of documents. Each Approved Time Charter and each Management Agreement constitutes valid, binding and enforceable obligations of the relevant Borrower and (in the case of the Management
Agreements) the Approved Manager in accordance with its terms and: 

  

	 	(a)	the copy of each Approved Time Charter and each Management Agreement delivered to the Agent before the date of this Agreement is a true and complete copy; and 

 

	 	(b)	no amendments or additions to any of the Approved Time Charters or any Management Agreement have been agreed nor has the relevant Borrower, the relevant Seller, the Approved Time Charterer or Approved Manager waived any
of their respective rights under any of the Approved Time Charters or the Management Agreements. 

  

	10.14	Compliance with certain undertakings. At the date of this Agreement, each Borrower and each of the Security Parties are in compliance with Clauses 11.2, 11.4, 11.5, 11.9, 11.13, 11.14 and 11.15.

  

	10.15	Taxes paid. Each Borrower and each Security Party has paid all taxes applicable to, or imposed on or in relation to that Borrower, that Security Party, its business or the Ships. 

 

	10.16	Compliance. All requirements of the ISM Code, the ISPS Code and the MARPOL Protocol as they relate to each Borrower, the Approved Manager, each Security Party and the Ships have been complied with.

  

	10.17	No money laundering. Without prejudice to the generality of Clause 2.3, in relation to the borrowing by the Borrowers of the Loan, the performance and discharge of its obligations and liabilities under the
Finance Documents, and the transactions and other arrangements effected or contemplated by the Finance Documents to which any Borrower is a party, each Borrower confirms (i) that it is acting for its own account, (ii) that it will use the
proceeds of the Loan for its own benefit, under its full responsibility and exclusively for the purposes specified in this Agreement and (iii) that the foregoing will not involve or lead to contravention of any law, official requirement or
other regulatory measure or procedure implemented to combat “money laundering” (as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Communities). 

 

	10.18	No immunity. No Borrower or Security Party benefits from any immunity from suit. 

  

	10.19	Disclosure of material facts. The Borrowers are not aware of any material facts or circumstances which have not already been disclosed to the Agent and which might, if disclosed to the Agent, adversely affect the
decision of the Lenders to make the Loan available to the Borrowers. 

  

	10.20	Pari Passu. The obligations of each Borrower under the Finance Documents to which it is a party rank at least pari passu with all other unsecured indebtedness of that Borrower, other than indebtedness mandatorily
preferred by law. 

  

	10.21	Governing law and enforcement. The choice of law as the governing law of any Finance Document will be recognised and enforced in the jurisdiction of incorporation of each Borrower and each relevant Security
Party, and any judgment obtained in England in relation to any such Finance Document will be recognised and enforced in the jurisdiction of incorporation of each Borrower and each relevant Security Party. 

  
 33 

	10.22	No filing or stamp tax. Under the laws of all Pertinent Jurisdiction relating to each Borrower and each relevant Security Party it is not necessary that the Finance Documents be filed, recorded or enrolled with
any court or other authority in that jurisdiction (save for the Mortgages which are to be recorded with The Deputy Commissioner of Maritime Affairs of the Republic of Marshall Islands or the relevant Approved Flag State registry) or that any stamp,
registration or similar tax be paid on or in relation the Finance Documents or the transactions contemplated by the Finance Documents. 

  

	10.23	Sanctions. No Security Party nor other Group Member nor any director, officer, agent, employee of any Security Party or other Group Member or any person acting on behalf of any Security Party or other Group
Member, is a Restricted Person nor acts directly or indirectly on behalf of a Restricted Person. 

  

	10.24	Repetition. Each representation and warranty in this Clause 10 (other than this Clause 10.24) is deemed to be repeated by each Borrower by reference to the facts and circumstances then existing on each date
during the Security Period. 

  

	11	GENERAL UNDERTAKINGS 

  

	11.1	General. Each Borrower undertakes with each Creditor Party to comply with the following provisions of this Clause 11 at all times during the Security Period, except as the Agent may, with the authorisation of the
Majority Lenders, otherwise permit. 

  

	11.2	Title; negative pledge. Each Borrower will: 

  

	 	(a)	hold the legal title to and the entire beneficial interest in the Ship owned by it, such Ship’s Insurances and Earnings, free from all Security Interests and other interests and rights of every kind, except for
those created by the Finance Documents and the effect of assignments contained in the Finance Documents and except for Permitted Security Interests; 

  

	 	(b)	not create or permit to arise any Security Interest (except for Permitted Security Interests) over any asset which is the subject matter of a Finance Document or over any of its shares; 

 

	 	(c)	not create or permit to arise, any Security Interest (except for Permitted Security Interests) over any other asset, present or future; and 

 

	 	(d)	procure that its liabilities under the Finance Documents to which it is a party do and will rank at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are
mandatorily preferred by law. 

  

	11.3	No disposal of assets. No Borrower will transfer, lease or otherwise dispose of: 

  

	 	(a)	all or a substantial part of its respective assets, whether by one transaction or a number of transactions, whether related or not; or 

 

	 	(b)	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation, 

but paragraph (a) does not apply to any charter of a Ship to which Clause 14.13 applies. 

 

	11.4	No other liabilities or obligations to be incurred. No Borrower: 

  
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	 	(a)	shall incur any liability or obligation except liabilities and obligations under the Finance Documents, the Approved Time Charter and the Management Agreement to which it is a party and liabilities or obligations
reasonably incurred in the ordinary course of operating and chartering the Ship owned by it; and 

  

	 	(b)	will incur any liability or obligation except liabilities and obligations; 

  

	 	(i)	under the Finance Documents to which it is a party; 

  

	 	(ii)	reasonably incurred in the ordinary course of that Borrower’s business of owning, operating, managing and/or chartering of ships and other ship-related business; and 

 

	 	(iii)	incurred in relation to or in connection with, the financing of ships owned or to be acquired by, members of the Group. 

  

	11.5	Information provided to be accurate. All financial and other information which is provided in writing by or on behalf of any Borrower under or in connection with any Finance Document will be true and not
misleading and will not omit any material fact or consideration. 

  

	11.6	Provision of financial statements. The Borrowers will procure that there is sent to the Agent: 

  

	 	(i)	as soon as possible, but in no event later than 180 days after the end of each of its Financial Years, annual audited (prepared in accordance with US GAAP by a firm of accountants acceptable to the Agent)
consolidated balance sheet and profit and loss accounts of the Corporate Guarantor (commencing with the Financial Year ending 31 December 2017), together with updated details (in a form acceptable to the Agent) of all off-balance sheet and time-charter hire commitments of each of the Ships and any other ship from time to time (whether before or after the date of this Agreement) owned, managed or crewed by, or chartered to, any
Group Member; 

  

	 	(b)	as soon as possible, but in no event later than 90 days after the end of each of its first three financial quarters, commencing with the third financial quarter of 2017, the Corporate Guarantor’s unaudited
consolidated balance sheet and profit and loss accounts for that 3 month period certified as to their correctness by its chief financial officer; and 

  

	 	(c)	such further financial information about the Borrowers, the Corporate Guarantor, the Ships (including, but not limited to, present and future revenues, charter arrangements, Financial Indebtedness, employment details,
operating expenses and projected capital expenditure) as the Agent may require. 

  

	11.7	Form of financial statements. All accounts (audited and unaudited) delivered under Clause 11.6 will: 

  

	 	(a)	be prepared in accordance with all applicable laws and US GAAP; 

  

	 	(b)	fairly represent the state of affairs of the Group at the date of those financial statements and of its profit for the period to which those financial statements relate; and 

 

	 	(c)	fully disclose or provide for all significant liabilities of the Group. 

  

	11.8	Shareholder notices. The Borrowers will send to the Agent, at the same time as they are despatched, copies of all communications related to matters which could be considered material in the context of this
Agreement and the other Finance Documents which are despatched to the Borrowers’ shareholders or any class of them, unless publicly announced or filed with a securities exchange. 

  
 35 

	11.9	Consents. Each Borrower will, and shall procure that each Security Party will, maintain in force and promptly obtain or renew, and will promptly send certified copies to the Agent of, all consents required:

  

	 	(a)	for each Borrower and each Security Party to perform its obligations under any Finance Document to which it is a party; 

  

	 	(b)	for the Approved Manager to perform its obligations under the Management Agreements; 

  

	 	(c)	for the validity or enforceability of any Finance Document to which it is a party; 

  

	 	(d)	for each Borrower, with effect from the Actual Delivery Date relating to its Ship, to acquire, register under an Approved Flag, own and operate the Ship to be owned by it; 

 

	 	(e)	for each Borrower to perform its obligations under the MOA and the Approved Time Charter and the Management Agreement to which it is or is to be a party; 

and the Borrowers will, and shall procure that the Security Parties shall, comply with the terms of all such consents. 

 

	11.10	Maintenance of Security Interests. Each Borrower will: 

  

	 	(a)	at its own cost, do all that it reasonably can to ensure that each Finance Document validly creates the obligations and the Security Interests which it purports to create; and 

 

	 	(b)	without limiting the generality of paragraph (a), at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority in all Pertinent Jurisdictions, pay any stamp, registration or
similar tax in all Pertinent Jurisdictions in respect of any Finance Document, any MOA, any Approved Time Charter and any Management Agreement and give any notice or take any other step which to the best of its knowledge is or has become, or which,
in the opinion of the Majority Lenders, is or has become necessary or desirable for any Finance Document, any MOA, any Approved Time Charter and any Management Agreement to be valid, enforceable or admissible in evidence or to ensure or protect the
priority of any Security Interest which any Finance Document creates. 

  

	11.11	Notification of litigation. The Borrowers will provide the Agent with details of any legal or administrative action involving any Borrower, any Security Party, the Approved Manager (to the best of its knowledge),
the Approved Time Charterer, any MOA, any Approved Time Charter (to the best of its knowledge), any Ship, any Management Agreement, the Earnings or the Insurances as soon as such action is instituted or it becomes apparent to the Borrowers (or any
of them) that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered material in the context of any Finance Document. 

 

	11.12	Amendments to Approved Time Charters and Management Agreements. No Borrower will, without the prior written consent of the Agent acting on the instructions of the Majority Lenders (such consent not to be
unreasonably withheld), agree to any material amendment or supplement to, or waive any breach in relation to, the Approved Time Charter to which it is a party and will procure that the Approved Manager, will not, without the prior written consent of
the Agent acting on the instructions of the Majority Lenders (such consent not to be unreasonably withheld), agree to any material amendment or supplement to, or waive any breach in relation to any Management Agreement. 

  
 36 

	11.13	Principal place of business. Each Borrower will maintain its place of business, and keep its corporate documents and records at the address stated in the definitions to this Agreement; and it will not establish,
or do anything as a result of which it would be deemed to have, a place of business in any country other than the Republic of Marshall Islands. 

  

	11.14	Confirmation of no default. The Borrowers will, within 2 Business Days after service by the Agent of a written request, serve on the Agent a notice which is signed by a duly authorised director of each Borrower
and which states that no Event of Default or Potential Event of Default has occurred. 

 The Agent may serve requests under
this Clause 11.14 from time to time but only if asked to do so by a Lender or Lenders having Commitments exceeding 10 per cent of the Total Commitments; and this Clause 11.14 does not affect the Borrowers’ obligations under Clause 11.15.

  

	11.15	Notification of default. Each Borrower will notify the Agent as soon as it becomes aware of the occurrence of an Event of Default or a Potential Event of Default and will keep the Agent fully up-to-date with all developments. 

  

	11.16	Provision of further information. Each Borrower will, as soon as practicable after receiving the request, provide the Agent with any additional financial or other information relating: 

 

	 	(a)	to it, the Security Parties, the Ships, the Earnings or the Insurances; or 

  

	 	(b)	to any other matter relevant to, or to any provision of, a Finance Document or an Approved Time Charter or a Management Agreement; 

which may be requested by the Agent, the Security Trustee or any Lender at any time. 

 

	11.17	Provision of copies and translation of documents. The Borrowers will supply the Agent with a sufficient number of copies of the documents referred to above to provide a copy for each Creditor Party and, if the
Agent so requires in respect of any of those documents, it will provide a certified English translation prepared by a translator approved by the Agent. 

  

	11.18	Sanctions. promptly upon becoming aware of them, provide to the Agent the details of any inquiry, claim, action, suit, proceeding or investigation pursuant to Sanctions by any Sanctions Authority against a
Security Party, any of the direct or indirect owners of a Security Party, any Affiliate of a Security Party, any of their joint ventures or any of their respective directors, officers, employees, agents or representatives, as well as information on
what steps are being taken with regards to answer or oppose the same. 

  

	11.19	Money laundering. Promptly upon the Agent’s request, the Borrowers will supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent in order for
each Creditor Party to carry out and be satisfied with the results of all necessary “know your client” or other checks which it is required to carry out in relation to the transactions contemplated by the Finance Documents and to the
identity of any parties to the Finance Documents (other than Creditor Parties) and their directors and officers. 

  

	11.20	“Know your customer” checks. If: 

  
 37 

	 	(a)	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; 

 

	 	(b)	any change in the status of any Borrower or any Security Party after the date of this Agreement; or 

  

	 	(c)	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement, 

obliges the Agent or any Lender (or, in the case of paragraph (c), any prospective new Lender) to comply with “know your customer” or
similar identification procedures in circumstances where the necessary information is not already available to it, the Borrowers shall promptly upon the request of the Agent or the Lender concerned supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event described in paragraph (c), on behalf of any new prospective new
Lender) in order for the Agent, the Lender concerned or, in the case of the event described in paragraph (c), any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 
  

	11.21	Class records 

 The Borrowers shall arrange for the Bank to have access electronically to
the class records of each Ship by either (i) arranging for the relevant Classification Society to give the Bank direct access to such class records or (ii) designating the Bank as a user or administrator of the Borrowers’ electronic
accounts with the relevant Classification Society; 
  

	11.22	Insurance opinion 

 The Borrowers shall provide the Bank on request, at the
Borrowers’ cost, with an opinion from insurance consultants on the insurances effected or to be effected in respect of each Vessel, confirming that each Vessel is insured on terms approved by the Bank or, if such insurance opinion has been
obtained by the Bank, shall reimburse the Bank for the cost of such opinion; 
  

	11.23	Sanctions 

 The Borrowers shall 

 

	 	(i)	not be, and shall procure that each other Group Member and each Affiliate of any of them and any director, officer, agent, employee or person acting on behalf of the foregoing is not, a Restricted Person and does not
act directly or indirectly on behalf of a Restricted Person; 

  

	 	(ii)	not, and shall procure that no other Group Member or any Affiliate of any of them shall, use any revenue or benefit derived from any activity or dealing with a Restricted Person in discharging any obligation due or
owing to the Bank; 

  

	 	(iii)	procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with the Bank in its name or in the name of any other member of the Group or any Affiliate of any of
them; 

  

	 	(iv)	and shall procure that each other Group Member and any Affiliate of any of them will, to the extent permitted by law, promptly upon becoming aware of them, supply to the Bank details of any claim, action, suit,
proceedings or investigation against it with respect to Sanctions by any Sanctions Authority; 

  
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	 	(v)	not, and shall procure that no other member of the Group or any Affiliate of any of them will, directly or indirectly, make available any proceeds of the Loan to fund or facilitate trade, business or other activities
(i) involving or for the benefit of any Restricted Person or (ii) in any other manner that could result in either Borrower or the Bank being in breach of any Sanctions or becoming a Restricted Person, or permit or authorise any other
person to do either of (i) or (ii) above; 

  

	11.24	Anti-bribery 

 the Borrowers shall ensure that neither they nor any of their respective
Affiliates, officers, directors, employees or agents acting on its behalf will offer, give, insist on, receive or solicit any illegal payment or improper advantage to influence the action of any person in connection with any of its business. 

 

	11.25	Money Laundering 

 The Borrowers shall 

 

	 	(i)	provide the Agent with information, certificates and any documents required by the Agent to ensure compliance with any law, official requirement or other regulatory measure or procedure implemented to combat Money
Laundering; and 

  

	 	(ii)	notify the Agent as soon as it becomes aware of any matters evidencing that a breach of any law, official requirement or other regulatory measure or procedure implemented to combat Money Laundering may or is about to
occur or that the person(s) who have or will receive the commercial benefit of this Agreement have changed after the date of this Agreement. 

  

	12	CORPORATE UNDERTAKINGS 

  

	12.1	General. Each Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 12 at all times during the Security Period except as the Agent may, with the authorisation of
the Majority Lenders, otherwise consent. 

  

	12.2	Maintenance of status. Each Borrower will maintain its separate corporate existence under the laws of the Republic of Marshall Islands. 

 

	12.3	Negative undertakings. No Borrower will: 

  

	 	(a)	carry on any business other than the owning, operating, managing and/or chartering of ships and other ship-related business or (ii) own any ship other than its Ship; or 

 

	 	(b)	pay any dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital unless: 

 

	 	(i)	the Borrowers are not in breach of any of their respective obligations under this Agreement and the other Finance Documents and no Event of Default or Potential Event of Default has occurred; and 

 

	 	(ii)	the Total Liabilities divided by the Total Assets (adjusted for market values of vessels calculated in accordance with Clause 15.3) is no greater than 60% both before and after such payment; and 

  
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	 	(iii)	the Liquidity of the Group is at least $1,000,000 multiplied by the number of vessels owned by any member of the Group both before and after such payment; 

 

	 	(c)	provide any form of credit or financial assistance to: 

  

	 	(i)	a person who is directly or indirectly interested in any Borrower’s share or loan capital; or 

  

	 	(ii)	any company in or with which such a person is directly or indirectly interested or connected; 

or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to the Borrowers
than those which it could obtain in a bargain made at arms’ length; 
  

	 	(d)	in relation to the Earnings of the Ship owned by it, open or maintain any account with any bank or financial institution except accounts with BNP, the Account Bank, the Agent or the Security Trustee for the purposes of
the Finance Documents; 

  

	 	(e)	without the prior written consent of the Agent, acting on the instructions of the Majority Lenders (such consent not to be unreasonably withheld), enter into any form of amalgamation, merger or de-merger, name change or any form of reconstruction or reorganisation. 

  

	12.4	Financial covenants. At all times during the Security Period, by reference to the Applicable Accounts ensure that : 

  

	 	(i)	at no time shall the Liquidity of the Group be less than $500,000 multiplied by the number of vessels owned by any member of the Group; 

 

	 	(ii)	the Total Liabilities divided by the Total Assets (adjusted for market values of vessels calculated in accordance with Clause 15.3) shall be at all times less than 80%; and 

 

	 	(b)	there is standing to the credit of each Earnings Account and Collateral Earnings Account at all times throughout the Security Period while the Ship or Collateral Ship of the Owner of that account is subject to a
Mortgage or Collateral Mortgage at least $500,000. 

  

	12.5	Compliance Check. Compliance with the undertakings contained in Clause 12.4 shall be determined by reference to the unaudited consolidated accounts for each consecutive quarter period in each Financial Year of
the Corporate Guarantor, commencing with the third financial quarter of 2017 and the audited consolidated accounts for that Financial Year of the Corporate Guarantor delivered to the Agent pursuant to Clause 11.6 of this Agreement. Unless and until
the Agent (acting with the authorisation of the Majority Lenders) otherwise agrees in writing, at the same time as it delivers those consolidated accounts for each consecutive quarter, the Borrowers shall deliver to the Agent a Compliance
Certificate, signed by the chief financial officer of the Corporate Guarantor. 

  

	12.6	Change in accounting expressions and policies. If, by reason of change in format or US GAAP or other relevant accounting policies, the expressions appearing in any accounts and financial statements referred
to in Clause 11.6 alter from those in the accounts and financial statements for the Group for the Financial Year ended 31 December 2017, the relevant definitions contained in Clause 1.1 and the provisions of Clause 12.4 shall be deemed modified
in such manner as the Agent, acting with the authorisation of the Majority Lenders, shall require to take account of such different expressions but otherwise to maintain in all respects the substance of those provisions. 

  
 40 

	13	INSURANCE 

  

	13.1	General. Each Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 13, and ensure that the Collateral Guarantors comply with the same, at all times until the
last day of the Security Period except as the Agent may, with the authority of the Majority Lenders, otherwise permit. 

  

	13.2	Maintenance of obligatory insurances. Each Borrower shall procure that the Ship owned by it is insured at its expense against: 

 

	 	(a)	fire and such other risks as are usually contained within a standard marine insurance policy and/or increased value and disbursements policy covering the hull and machinery of such Ship; 

 

	 	(b)	war risks; 

  

	 	(c)	protection and indemnity risks; and 

  

	 	(d)	any other risks against which the Security Trustee considers, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the Security Trustee be reasonable for the
relevant Borrower to insure and which are specified by the Security Trustee by notice to the relevant Borrower. 

  

	13.3	Terms of obligatory insurances. Each Borrower shall effect such insurances in respect of its Ship: 

  

	 	(a)	in Dollars and/or such currencies as agreed with the Security Trustee; 

  

	 	(b)	in the case as specified in Clause 13.2, cover is to be on an agreed value basis in an amount at least the greater of (i) such amount as when added to the insured value of the other Ships is 120 per cent. of
the amount of the Loan and (ii) the Fair Market Value of that Ship; 

  

	 	(c)	in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of cover from time to time available under a standard protection and indemnity entry with an international group
protection and indemnity club (currently $1,000,000,000 in relation to any one event); 

  

	 	(d)	in relation to protection and indemnity risks in respect of each Ship’s gross tonnage; 

  

	 	(e)	on approved terms; and 

  

	 	(f)	through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations.

  

	13.4	Further protections for the Creditor Parties. In addition to the terms set out in Clause 13.3, each Borrower shall procure that the obligatory insurances shall: 

 

	 	(a)	whenever the Security Trustee requires, name (or be amended to name) the Security Trustee as an additional named assured for its rights and interests, warranted no operational interest and with full waiver of rights of
subrogation against the Security Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance; 

  
 41 

	 	(b)	name the Security Trustee as loss payee with such directions for payment as the Security Trustee may specify; 

  

	 	(c)	provide that all payments by or on behalf of the insurers under the obligatory insurances to the Security Trustee shall be made without set-off, counterclaim or deductions or
condition whatsoever; 

  

	 	(d)	provide that such obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee or any other Creditor Party; and 

 

	 	(e)	provide that the Security Trustee may make proof of loss if any Borrower fails to do so. 

  

	13.5	Renewal of obligatory insurances. Each Borrower shall: 

  

	 	(a)	before the expiry of any obligatory insurance effected by it: 

  

	 	(i)	notify the Security Trustee of the brokers (or other insurers) and any protection and indemnity or war risks association through or with whom that Borrower proposes to renew that obligatory insurance and of the proposed
terms of renewal; and 

  

	 	(ii)	obtain the Security Trustee’s approval to the matters referred to in paragraph (i); 

  

	 	(b)	as soon as practicable but in any event before the expiry of any obligatory insurance effected by it, renew that obligatory insurance in accordance with the Security Trustee’s approval pursuant to paragraph (a);
and 

  

	 	(c)	procure that the approved brokers and/or the war risks and protection and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms
and conditions of the renewal. 

  

	13.6	Copies of policies; letters of undertaking. Each Borrower shall ensure that all approved brokers provide the Security Trustee is provided as soon as practicable with pro forma copies of all policies relating to
the obligatory insurances which have been effected or renewed and of a letter or letters or undertaking in a form required by the Security Trustee and that: 

  

	 	(a)	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 13.4; 

 

	 	(b)	they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; 

 

	 	(c)	they will advise the Security Trustee immediately of any material change to the terms of the obligatory insurances; 

  

	 	(d)	they will notify the Security Trustee, before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the relevant Borrower or its agents and, in the event
of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms of the instructions; and 

  
 42 

	 	(e)	they will not set off against any sum recoverable in respect of a claim relating to the Ship owned by the relevant Borrower under such obligatory insurances any premiums or other amounts due to them or any other person
whether in respect of any of the Ships or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such premiums or other amounts, and they will not cancel such obligatory insurances by
reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of the Ships forthwith upon being so requested by the Security Trustee.

  

	13.7	Copies of certificates of entry. Each Borrower shall ensure that for any protection and indemnity and/or war risks associations in which a Ship is entered the Security Trustee will be provided with:

  

	 	(a)	a certified copy of the certificate of entry for that Ship; 

  

	 	(b)	a letter or letters of undertaking in such form as may be required by the Security Trustee; 

  

	 	(c)	where required to be issued under the terms of insurance/indemnity provided by the relevant Borrower’s protection and indemnity association, a certified copy of each United States of America voyage quarterly
declaration (or similar document or documents) made by the relevant Borrower in relation to the Ship owned by it in accordance with the requirements of such protection and indemnity association; and 

 

	 	(d)	a certified copy of each certificate of financial responsibility for pollution by oil or other Environmentally Sensitive Material issued by the relevant certifying authority in relation to the relevant Ship.

  

	13.8	Deposit of original policies. Each Borrower shall ensure that all policies issued and relating to obligatory insurances are deposited by the relevant Borrower, with the approved intermediaries or other approved
parties through which the insurances are effected or renewed. 

  

	13.9	Payment of premiums. Each Borrower shall punctually pay all premiums or other sums payable in respect of the obligatory insurances terms and conditions, and produce all relevant receipts when so required by the
Security Trustee. 

  

	13.10	Guarantees. Each Borrower shall ensure that any guarantees required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect. 

 

	13.11	Compliance with terms of insurances. No Borrower shall do or omit to do (or permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or
unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part; and, in particular: 

  

	 	(a)	each Borrower shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the obligation contained in Clause 13.6(c))
ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval; 

  
 43 

	 	(b)	no Borrower shall make any changes relating to the classification or classification society or manager or operator of the Ship owned by it approved by the underwriters of the obligatory insurances; 

 

	 	(c)	each Borrower shall, make (and promptly supply copies to the Agent of) all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in which its Ship is entered to
maintain cover for trading to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation); and 

 

	 	(d)	no Borrower shall employ its Ship, nor allow such Ship to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and
complying with any requirements (as to extra premium or otherwise) which the insurers specify. 

  

	13.12	Alteration to terms of insurances. No Borrower shall make or agree to any alteration to the terms of any obligatory insurance nor waive any right relating to any obligatory insurance. 

 

	13.13	Settlement of claims. No Borrower shall settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and provide all documents,
evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances. 

 

	13.14	Provision of copies of communications. Each Borrower shall promptly upon request by the Agent provide the Security Trustee, copies of all written communications which are material in the context of the
Borrowers’ obligations under the Finance Documents between it and: 

  

	 	(a)	the approved brokers or insurers; and 

  

	 	(b)	the approved protection and indemnity and/or war risks associations; and 

  

	 	(c)	the approved insurance companies and/or underwriters, which relate directly or indirectly to: 

  

	 	(i)	the relevant Borrower’s obligations relating to the obligatory insurances including, without limitation, all requisite declarations and payments of additional premiums or calls; and 

 

	 	(ii)	any credit arrangements made between the relevant Borrower and any of the persons referred to in paragraphs (a) or (b) relating wholly or partly to the effecting or maintenance of the obligatory insurances.

  

	13.15	Provision of information. In addition, each Borrower shall promptly provide the Security Trustee (or any persons which it may designate) with any information which the Security Trustee (or any such designated
person) requests for the purpose of: 

  

	 	(a)	obtaining or preparing any report from an independent marine insurance broker or consultant as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or 

 

	 	(b)	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 or dealing with or considering any matters relating to any such insurances; 

  
 44 

 and the Borrowers shall, forthwith upon demand, indemnify the Security Trustee in respect of all
fees and other expenses incurred by or for the account of the Security Trustee in connection with any such report as is referred to in paragraph (a) above. 
  

	13.16	Mortgagee’s interest insurance. The Security Trustee (acting on behalf of all the Lenders) shall be entitled, at the Lenders’ cost, from time to time to effect, maintain and renew a mortgagee’s
interest and pollution risks insurance policy (including additional perils (pollution) cover) in an amount equal to at least 120% of the Loan such terms, through such insurers and generally in such manner as the Security Trustee may from time to
time consider appropriate. 

  

	13.17	Review of insurance requirements. The Majority Lenders shall be entitled to review the requirements of this Clause 13 from time to time in order to take account of any changes in circumstances after the date of
this Agreement which are, in the opinion of the Majority Lenders, significant and capable of affecting any Borrower or any Ship and its or their insurance (including, without limitation, changes in the availability or the cost of insurance coverage
or the risks to which the Borrowers may be subject), and may appoint insurance consultants in relation to this review at the cost of the Borrowers. 

  

	13.18	Modification of insurance requirements. The Security Trustee shall notify the Borrowers of any proposed modification under Clause 13.17 to the requirements of this Clause 13 which the Majority Lenders reasonably
consider appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in writing to the Borrowers as an amendment to this Clause 13 and shall bind the Borrowers accordingly. 

 

	13.19	Compliance with mortgagee’s instructions. The Security Trustee shall be entitled (without prejudice to or limitation of any other rights which it may have or acquire under any Finance Document) to
require a Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Security Trustee until the relevant Borrower implements any amendments to the terms of the obligatory insurances and any operational changes
required as a result of a notice served under Clause 13.18. 

  

	13.20	Assured and Co-Assured. If persons other than the relevant Borrower and/or Security Trustee are named as assureds or co-assureds in
the insurance policy of the relevant Ship, the Borrowers shall procure that these persons assign their insurances to the Security Trustee upon such terms and conditions as the Security Trustee may require. 

 

	14	SHIP’S COVENANTS 

  

	14.1	General. Each Borrower also undertakes with each Creditor Party to comply with, and will ensure that the Collateral Guarantors comply in relation to their Ships, with, the following provisions of this Clause 14
at all times until the last day of the Security Period except as the Agent, with the authority of the Majority Lenders, may otherwise permit (such permission not to be unreasonably withheld in the case of Clause 14.13(b)). 

 

	14.2	Ship’s name and registration. Each Borrower shall keep the Ship owned by it registered in its name under an Approved Flag free of any Security Interest other than a Permitted Security Interest; and shall not
do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperilled; and shall not, without the prior written consent of the Security Trustee change the name or port of registry of the Ship owned by
it. 

  

	14.3	Repair and classification. Each Borrower shall keep the Ship owned by it in a good and safe condition and state of repair: 

  

	 	(a)	consistent with first-class ship ownership and management practice; 

  
 45 

	 	(b)	so as to maintain that Ship’s class with Lloyds Register of Shipping or Germanischer Lloyd AG (or such other first-class classification society which is a member of IACS acceptable to the Agent, such acceptance not
to be unreasonably withheld or delayed) free of overdue recommendations and conditions affecting that Ship’s class that have not been complied with in accordance with their terms; and 

 

	 	(c)	so as to comply with all laws and regulations applicable to vessels registered at ports in the relevant Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time,
including but not limited to the ISM Code, the ISPS Code and the MARPOL Protocol. 

  

	14.4	Classification society undertaking. Each Borrower shall instruct the classification society referred to in Clause 14.3(b) (and procure that the classification society undertakes with the Security Trustee):

  

	 	(a)	to send to the Security Trustee, following receipt of a written request from the Security Trustee, certified true copies of all original class records held by the classification society in relation to the Ship owned by
that Borrower; 

  

	 	(b)	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the original class and related records of that Borrower and its Ship at the offices of the classification society and to take
copies of them; 

  

	 	(c)	to notify the Security Trustee immediately in writing if the classification society: 

  

	 	(i)	receives notification from the relevant Borrower or any person that the Ship’s classification society is to be changed; or 

  

	 	(ii)	becomes aware of any facts or matters which may result in or have resulted in a change, suspension, discontinuance, withdrawal or expiry of the Ship’s class under the rules or terms and conditions of the relevant
Borrower’s or its Ship’s membership of the classification society; 

  

	 	(d)	following receipt of a written request from the Security Trustee: 

  

	 	(i)	to confirm that the relevant Borrower is not in default of any of its contractual obligations or liabilities to the classification society and, without limiting the foregoing, that it has paid in full all fees or other
charges due and payable to the classification society; or 

  

	 	(ii)	if the relevant Borrower is in default of any of its contractual obligations or liabilities to the classification society, to specify to the Security Trustee in reasonable detail the facts and circumstances of such
default, the consequences thereof, and any remedy period agreed or allowed by the classification society. 

  

	14.5	Modification. Each Borrower shall not make any modification or repairs to, or replacement of, the Ship owned by it or equipment installed on its Ship which would or might materially alter the structure, type or
performance characteristics of that Ship or materially reduce its value. 

  

	14.6	 Removal of parts. No Borrower shall remove any material part of the Ship owned by it, or any item of
equipment installed on, the Ship unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest or any right
in favour of any person other than the Security Trustee and becomes on installation on the 

  
 46 

	 	
Ship the property of that Borrower and subject to the security constituted by the Mortgage, relative to the Ship Provided that a Borrower may install equipment owned by a third party if
the equipment can be removed without any material risk of damage to the Ship. 

  

	14.7	Surveys. Each Borrower shall submit the Ship owned by it regularly to all periodical or other surveys which may be required for classification purposes and, if so required by the Security Trustee, provide the
Security Trustee, with copies of all survey reports. 

  

	14.8	Inspection. Each Borrower shall permit and facilitate the Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by it at all reasonable times to inspect its
condition or to satisfy themselves about proposed or executed repairs (at the Borrowers’ cost) and shall afford all proper facilities for such inspections, at the cost of the Borrowers for one such inspection per Ship in each calendar year and
otherwise at the Agent’s cost. 

  

	14.9	Prevention of and release from arrest. Each Borrower shall promptly discharge: 

  

	 	(a)	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against its Ship, its Earnings or its Insurances; 

 

	 	(b)	all taxes, dues and other amounts charged in respect of its Ship, its Earnings or its Insurances; and 

  

	 	(c)	all other outgoings whatsoever in respect of its Ship, the Earnings or the Insurances; 

 and,
forthwith upon receiving notice of the arrest of a Ship, or of its detention in exercise or purported exercise of any lien or claim, the Borrowers shall procure its release by providing bail or otherwise as the circumstances may require. 

 

	14.10	Compliance with laws etc. Each Borrower shall: 

  

	 	(a)	comply, or procure compliance with the ISM Code, the ISPS code, the MARPOL Protocol and Environmental Laws and all other laws or regulations relating to the Ship owned by it, its ownership, operation and management or
to the business that Borrower; 

  

	 	(b)	comply, and will use best endeavours to procure that each Security Party and each other Group Member will, comply in all respect with all Sanctions; 

 

	 	(c)	not employ the Ship owned by it nor allow its employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code, the ISPS code and the MARPOL Protocol; and

  

	 	(d)	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit its Ship to enter or trade to any zone which is declared a war zone by any government or by its Ship’s war
risks insurers unless the prior written consent of the Security Trustee has been given and the relevant Borrower has (at its expense) effected any special, additional or modified insurance cover which the Security Trustee may require.

  

	14.11	Provision of information. Each Borrower shall promptly provide the Security Trustee with any information which it requests regarding: 

 

	 	(a)	the Ship owned by it, its employment, position and engagements; 

  
 47 

	 	(b)	the Earnings and payments and amounts due to its Ship’s master and crew; 

  

	 	(c)	any expenses incurred, or likely to be incurred, in connection with the operation, maintenance or repair of its Ship and any payments made in respect of that Ship; 

 

	 	(d)	any towages and salvages; 

  

	 	(e)	each Borrower’s, the Approved Manager’s or a Ship’s compliance with the ISM Code, the ISPS Code and the MARPOL Protocol; 

and, upon the Security Trustee’s request, provide copies of any current charter relating to any Ship, of any current charter guarantee and
copies of the relevant Borrower’s or the Approved Manager’s Document of Compliance. 
  

	14.12	Notification of certain events. Each Borrower shall immediately notify the Security Trustee by fax, confirmed forthwith by letter, of: 

 

	 	(a)	any casualty which is or is likely to be or to become a Major Casualty; 

  

	 	(b)	any occurrence as a result of which the Ship owned by it has become or is, by the passing of time or otherwise, likely to become a Total Loss; 

 

	 	(c)	any requirement or recommendation made by any insurer or classification society or by any competent authority which is not complied with within the relevant specified time limit or, in the absence of such time limit,
promptly; 

  

	 	(d)	any arrest or detention of its Ship, any exercise or purported exercise of any lien on its Ship or its Earnings or any requisition of that Ship for hire; 

 

	 	(e)	any Environmental Claim made against any Borrower, a Collateral Guarantor or the Approved Manager or in connection with any Ship or Collateral Ship or any Environmental Incident; 

 

	 	(f)	any claim for breach of the ISM Code, the ISPS Code or the MARPOL Protocol being made against any Borrower or the Approved Manager or otherwise in connection with any Ship; or 

 

	 	(g)	any other matter, event or incident, actual or threatened, the effect of which will or could lead to the ISM Code, the ISPS Code or the MARPOL Protocol not being complied with; 

and the Borrowers shall keep the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall
require of each Borrower’s, the Approved Manager’s or any other person’s response to any of those events or matters. 
  

	14.13	Restrictions on chartering, appointment of managers etc. No Borrower shall: 

  

	 	(a)	let the Ship owned by it on demise charter for any period; 

  

	 	(b)	enter into any time or consecutive voyage charter in respect of the Ship owned by it for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months other than an Approved Time Charter;

  

	 	(c)	enter into any charter in relation to its Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; 

  

	 	(d)	charter its Ship otherwise than on bona fide arm’s length terms at the time when that Ship is fixed; 

  
 48 

	 	(e)	appoint a manager of its Ship other than the Approved Manager; 

  

	 	(f)	agree to any alteration to the material terms of the Management Agreement relating to its Ship or to any other terms of the Approved Manager’s appointment; 

 

	 	(g)	de-activate or lay up its Ship for more than 30 days; or 

  

	 	(h)	put its Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $500,000 (or the equivalent in any other currency), which amount shall exclude dry-docking costs, unless the Agent (acting with authorisation of the Majority Lenders) has given prior approval in writing. 

  

	14.14	Notice of Mortgage. Each Borrower shall keep the relevant Mortgage registered against the Ship owned by it as a valid first priority mortgage, carry on board that Ship a certified copy of the relevant Mortgage
and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of that Ship a framed printed notice stating that that Ship is mortgaged by the relevant Borrower to the Security Trustee. 

 

	14.15	Sharing of Earnings. No Borrower shall enter into any agreement or arrangement for the sharing of any Earnings other than any time or voyage charters with profit sharing clauses.. 

 

	14.16	ISPS Code. Each Borrower shall comply with the ISPS Code and in particular, without limitation, shall: 

  

	 	(a)	procure that its Ship and the company responsible for such Ship’s compliance with the ISPS Code comply with the ISPS Code; and 

  

	 	(b)	maintain for its Ship an ISSC; and 

  

	 	(c)	notify the Agent immediately in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC. 

 

	14.17	Charters etc. The Borrowers shall (i) deliver to the Agent a Certified Copy of each Extended Employment Contract upon its execution, (ii) forthwith on the Agent’s request procure that the
relevant Collateral Guarantor executes (a) a Charter Assignment in respect thereof and (b) any notice of assignment required in connection therewith and use reasonable commercial efforts to procure the acknowledgement of any such notice of
assignment by the relevant charterer (provided that any failure to procure the same shall not constitute an Event of Default) and (iii) pay all legal and other costs incurred by the Agent in connection with any such Charter Assignments,
forthwith following the Agent’s demand. 

  

	14.18	Green Passport. The Borrowers shall procure that immediately following completion of its next dry-docking, each Ship shall hold at all times during the Facility Period a
Green Passport or equivalent document 

 where “Green Passport” means a document listing all the potentially
hazardous materials on board the Ship or the “Inventory of Hazardous Materials” (IHM Certificate) or equivalent document as may be required by the Classification Society. 

 

	14.19	Sustainable Vessel dismantling. Each Borrower shall ensure and procure a safe, sustainable and environmentally responsible dismantling of the Ships upon the same being scrapped or otherwise taken out of service.

  

	14.20	Inspection Reports. The Borrowers shall provide to the Agent by no later than 30 September 2017 an inspection report in respect of each Ship and each Collateral Ship which is subject to a Mortgage or a
Collateral Mortgage, in a form and substance, and from a marine surveyor, acceptable to the Agent. 

  
 49 

	15	SECURITY COVER 

  

	15.1	Minimum required security cover. Clause 15.2 applies if, after the end of the third financial quarter of 2017, the Agent notifies the Borrowers that: 

 

	 	(a)	the aggregate of the Fair Market Values (determined as provided in Clause 15.3) of the Ships; plus 

  

	 	(b)	the net realisable value of any additional security previously provided under this Clause 15; 

is below 120 per cent of the Loan. 
  

	15.2	Provision of additional security; prepayment. If the Agent serves a notice on the Borrowers under Clause 15.1, the Borrowers shall, within 1 month after the date on which the Agent’s notice is served,
either: 

  

	 	(a)	provide, or ensure that a third party provides, additional security which, in the opinion of the Majority Lenders, has a net realisable value at least equal to the shortfall and is documented in such terms as the Agent
may, with the authorisation of the Majority Lenders, approve or require; or 

  

	 	(b)	prepay and/or cancel, in accordance with Clause 8, such part (at least) of the Loan as will eliminate the shortfall. 

  

	15.3	Valuation of Ship. The Fair Market Value at any date is that shown by a valuation prepared: 

  

	 	(a)	subject to Clause 2.2, as at a date not more than 30 days previously; 

  

	 	(b)	by an Approved Broker; 

  

	 	(c)	with or without physical inspection of that Ship (as the Agent may require); and 

  

	 	(d)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment.

 Valuations shall be obtained by the Borrowers and addressed to the Agent: 

 

	 	(i)	prior to (but dated no more than 30 days prior to) the Drawdown Date; 

  

	 	(ii)	at quarterly intervals (on each date on which the Borrowers are required pursuant to Clause 12.5 to deliver a Compliance Certificate to the Agent); and 

 

	 	(iii)	(in addition to (a) and (b) above) at any other time as the Agent shall require (in its absolute discretion). 

  

	15.4	Value of additional vessel security. The net realisable value of any additional security which is provided under Clause 15.2 and which consists of a Security Interest over a vessel shall be that shown by a
valuation complying with the requirements of Clause 15.3. 

  

	15.5	Valuations binding. Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and conclusive as regards the Borrowers, as shall be any valuation which the Majority Lenders make of any additional security
which does not consist of or include a Security Interest. 

  
 50 

	15.6	Provision of information. The Borrowers shall promptly provide the Agent and any Approved Broker or expert acting under Clause 15.3 or 15.4 with any information which the Agent or the Approved Broker or expert
may request for the purposes of the valuation; and, if the Borrowers fail to provide the information by the date specified in the request, the valuation may be made on any basis and assumptions which the Approved Broker or the Majority Lenders (or
the expert appointed by them) consider prudent. 

  

	15.7	Payment of valuation expenses. Without prejudice to the generality of the Borrowers’ obligations under Clauses 20.2, 20.3 and 21.3, the Borrowers shall, on demand, pay the Agent the amount of the fees and
expenses of any Approved Broker instructed under this Clause 15. 

  

	16	PAYMENTS AND CALCULATIONS 

  

	16.1	Currency and method of payments. All payments to be made by the Lenders or by the Borrowers under a Finance Document shall be made to the Agent or to the Security Trustee, in the case of an amount payable to it:

  

	 	(a)	by not later than 11.00 a.m. (New York City time) on the due date; 

  

	 	(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Agent shall specify as being customary at the time
for the settlement of international transactions of the type contemplated by this Agreement); 

  

	 	(c)	in the case of an amount payable by a Lender to the Agent or by any Borrower to the Agent or any Lender, to such account as the Agent may from time to time notify to the Borrowers and the other Creditor Parties for this
purpose; and 

  

	 	(d)	in the case of an amount payable to the Security Trustee, to such account as it may from time to time notify to the Borrowers and the other Creditor Parties. 

 

	16.2	Payment on non-Business Day. If any payment by a Borrower or a Security Party under a Finance Document would otherwise fall due on a day which is not a Business Day:

  

	 	(a)	the due date shall be extended to the next succeeding Business Day; or 

  

	 	(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding Business Day; 

and interest shall be payable during any extension under paragraph (a) at the rate payable on the original due date. 

 

	16.3	Basis for calculation of periodic payments. All interest and commitment fee and guarantee fee and any other payments under any Finance Document which are of an annual or periodic nature shall accrue from day to
day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 

  

	16.4	Distribution of payments to Creditor Parties. Subject to Clauses 16.5, 16.6 and 16.7: 

  

	 	(a)	any amount received by the Agent under a Finance Document for distribution or remittance to a Creditor Party shall be made available by the Agent to that Creditor Party by payment, with funds having the same value as
the funds received, to such account as the Creditor Party may have notified to the Agent not less than 3 Business Days previously; and 

  
 51 

	 	(b)	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders generally shall be distributed by the Agent to each Lender pro rata to the amount in that category which is due to it.

  

	16.5	Permitted deductions by Agent. Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold from that
amount any sum which is then due and payable to the Agent from that Lender under any Finance Document or any sum which the Agent is then entitled under any Finance Document to require that Lender to pay on demand. 

 

	16.6	Agent only obliged to pay when monies received. Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent shall not be obliged to make available to any Borrower, any Lender
any sum which the Agent is expecting to receive for remittance or distribution to that Borrower, to that Lender until the Agent has satisfied itself that it has received that sum. 

 

	16.7	Refund to Agent of monies not received. If and to the extent that the Agent makes available a sum to a Borrower, a Lender, without first having received that sum, the Borrower or (as the case may be) , the Lender
concerned shall, on demand: 

  

	 	(a)	refund the sum in full to the Agent; and 

  

	 	(b)	pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding or other loss, liability or expense incurred by the Agent as a result of making the sum available before
receiving it. 

  

	16.8	Agent may assume receipt. Clause 16.7 shall not affect any claim which the Agent has under the law of restitution, and applies irrespective of whether the Agent had any form of notice that it had not received the
sum which it made available. 

  

	16.9	Creditor Party accounts. Each Creditor Party shall maintain accounts showing the amounts owing to it by the Borrowers and each Security Party under the Finance Documents and all payments in respect of those
amounts made by any Borrower and any Security Party. 

  

	16.10	Agent’s memorandum account. The Agent shall maintain a memorandum account showing the amounts advanced by the Lenders and all other sums owing to each Creditor Party from each Borrower and each Security
Party under the Finance Documents and all payments in respect of those amounts made by any Borrower and any Security Party. 

  

	16.11	Accounts prima facie evidence. If any accounts maintained under Clauses 16.9 and 16.10 show an amount to be owing by the Borrowers or a Security Party to a Creditor Party, those accounts shall be prima facie
evidence that that amount is owing to that Creditor Party in the absence of manifest error. 

  

	16.12	FATCA 

  

	(a)	FATCA Information 

  

	 	(i)	Subject to subclause (3) below, each party to a Finance Document shall, within ten Business Days of a reasonable request by another party to the Finance Documents: 

 

	 	(2)	confirm to that other party whether it is a FATCA Exempt Party or is not a FATCA Exempt Party; 

  
 52 

	 	(3)	supply to the requesting party such forms, documentation and other information relating to its status under FATCA as the requesting party reasonably requests for the purposes of such requesting party’s compliance
with FATCA; and 

  

	 	(4)	supply to the requesting party such forms, documentation and other information relating to its status as the requesting party reasonably requests for the purposes of the requesting party’s compliance with any other
law, regulation, or exchange of information regime. 

  

	 	(ii)	If a party to any Finance Document confirms to another party pursuant to subclause (a) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt
Party, that party shall notify that other party and the Agent reasonably promptly. 

  

	 	(iii)	Subclause (a) above shall not oblige any Creditor Party to do anything, and Subclause (a) (iii) above shall not oblige any other party to a Finance Document to do anything, which would or might in its
reasonable opinion constitute a breach of any law or regulation, any policy of that Creditor Party, any fiduciary duty or any duty of confidentiality. 

  

	 	(iv)	If a party to any Finance Document fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with subclause (a)(i) or (ii) above
(including, for the avoidance of doubt, where paragraph (c) above applies), then such party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the party
in question provides the requested confirmation, forms, documentation or other information. 

  

	(a)	FATCA Deduction 

  

	 	(v)	a party to any Finance Document may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party to any Finance Document shall be required to
increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. 

  

	 	(vi)	a party to any Finance Document shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the party to whom it is
making the payment and, in addition, shall notify the Borrowers, the Agent and the other Creditor Parties. 

  

	17	APPLICATION OF RECEIPTS 

  

	17.1	Normal order of application. Except as any Finance Document may otherwise provide, any sums which are received or recovered by any Creditor Party under or by virtue of any Finance Document shall be applied:

  

	 	(a)	FIRST: in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent and the Security Trustee and the other Creditor Parties under the Finance Documents; 

 

	 	(b)	SECONDLY: in or towards payment pro rata of any accrued interest due but unpaid under this Agreement; 

  
 53 

	 	(c)	THIRDLY: in or towards payment pro rata of any principal due but unpaid under this Agreement; 

  

	 	(d)	FOURTHLY: in or towards payment pro rata of any other amounts due but unpaid under any Finance Document; 

  

	 	(e)	FIFTHLY: in retention of an amount equal to any amount not then due and payable under any Finance Document but which the Lender, by notice to the Borrowers and the Security Parties, states in its opinion will or may
become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause 17.1(a), (b), (c) and (d); and 

 

	 	(f)	SIXTHLY: any surplus shall be paid to the Borrowers or to any other person entitled to it. 

  

	17.2	Variation of order of application. The Agent may, with the authorisation of the Lenders, by notice to the Borrowers, the Security Parties and the other Creditor Parties provide for a different manner of
application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories. 

  

	17.3	Notice of variation of order of application. The Agent may give notices under Clause 17.2 from time to time; and such a notice may be stated to apply not only to sums which may be received or recovered in the
future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which the notice is served. 

  

	17.4	Appropriation rights overridden. This Clause 17 and any notice which the Agent gives under Clause 17.2 shall override any right of appropriation possessed, and any appropriation made, by any Borrower or any
Security Party. 

  

	18	APPLICATION OF EARNINGS, LOCATION OF ACCOUNTS 

  

	18.1	Payment of Earnings. Each Borrower undertakes with each Creditor Party to ensure that, throughout the Security Period (subject only to the provisions of the Mortgages, the Deeds of Covenant and the General
Assignments), all the Earnings in respect of each Chartered Ship are paid (i) while such Chartered Ship is subject to an Approved Time Charter, to the BNP Account applicable to the Borrower which is the owner of such Ship, (ii) after
termination of the Approved Time Charter in respect of such Chartered Ship, and at all times in respect of the Ships which are not Chartered Ships, to the Earnings Account applicable to the Borrower or Collateral Guarantor which is the owner of such
Ship; 

  

	18.2	Standing Order. The Borrowers shall ensure that any amount credited to any BNP Account shall immediately be transferred to the Earnings Account owned by the Borrower which is the owner of that BNP Account.

  

	18.3	Application of Earnings. Each Borrower undertakes with each Creditor Party that money from time to time credited to, or for the time being standing to the credit of, an Earnings Account shall, unless and until an
Event of Default or Potential Event of Default shall have occurred (whereupon the provisions of Clause 17.1 shall be and become applicable), be available for application in the following manner: 

 

	(a)	FIRSTLY: in or towards meeting the costs, fees and expenses payable by the Borrowers under the Finance Documents; 

  

	(b)	SECONDLY: in or towards making the transfers to the Retention Accounts pursuant to Clause 18.3; 

  
 54 

	(c)	THIRDLY: in or towards meeting the costs and expenses from time to time incurred by or on behalf of the Borrowers in connection with the operation of the Ships. 

 

	18.4	Monthly retentions. Each Borrower undertakes with each Creditor Party to ensure that, throughout the Security Period on the same day in each month, there is transferred to the Retention Account:

  

	 	(a)	one-third of the repayment instalment in respect of each Advance falling due under Clause 8.1 on the next Repayment Date; and 

 

	 	(b)	the relevant fraction of the aggregate amount of interest on each Advance which is payable on the next due date for payment of interest. 

Where: 
 “relevant
fraction” is a fraction of which the numerator is 1 and the denominator the number of months comprised in the then current Interest Period (or, if current Interest Period ends after the next date for payment of interest under this
Agreement, the number of months from the later of the commencement of the current Interest Period or the last due date for payment of interest to the next date for payment of interest under this Agreement). 

 

	18.5	Shortfall in Earnings. If the aggregate Earnings received in the Earnings Accounts and Collateral Earnings Accounts are insufficient in any month for the required amount to be transferred to any Retention Account
under Clause 18.3, the Borrowers shall make up the amount of the insufficiency by payment in Dollars to the Retention Account. 

  

	18.6	Application of retentions. Until an Event of Default or a Potential Event of Default occurs, the Account Bank shall on each Repayment Date and on each due date for the payment of interest under this Agreement pay
to the Agent, for the Agent to distribute to the Lenders in accordance with Clause 16.4 so much of the then balance on the Retention Account as equals: 

  

	 	(a)	the repayment instalment due on that Repayment Date; or, as the case may be, 

  

	 	(b)	the amount of interest payable on that interest payment date 

 in discharge of the
Borrowers’ liability for that repayment instalment or that interest. 
  

	18.7	Location of accounts. Each Borrower shall promptly : 

  

	(a)	comply with any requirement of the Agent as to the location or re-location of the Earnings Accounts, the Retention Account or any of them, provided that those accounts must at all
times be with the Account Bank; and 

  

	(b)	execute any documents which the Agent specifies to create or maintain in favour of the Security Trustee a Security Interest over the Earnings Accounts and the Retention Account. 

 

	18.8	Borrowers’ obligations unaffected. The provisions of this Clause 18 do not affect: 

  

	(a)	the liability of the Borrowers to make payments of principal and interest on the due dates; or 

  

	(b)	any other liability or obligation of the Borrowers or any Security Party under any Finance Document. 

  
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	19	EVENTS OF DEFAULT 

  

	19.1	Events of Default. An Event of Default occurs if: 

  

	 	(a)	any Security Party fails to pay any sum payable by it under any of the Finance Documents at the time, in the currency and in the manner stipulated in the Finance Documents (and so that, for this purpose, sums payable
(i) under clauses 5.1 and 8.1 shall be treated as having been paid at the stipulated time if (aa) received by the Agent within two (2) days of the dates therein referred to and (bb) such delay in receipt is caused by administrative or
other delays or errors within the banking system and (ii) on demand shall be treated as having been paid at the stipulated time if paid within three (3) Business Days of demand); or 

 

	 	(b)	any breach occurs of Clause 9.2, 10,23, 11.2, 11.3, 11.23, 12.2, 12.3, 12.4 or 15.2 or clause 5.3 of the Corporate Guarantee; or 

  

	 	(c)	any breach by any Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a) or (b)) which, in the reasonable opinion of the Majority Lenders, is
capable of remedy, and such default continues unremedied 15 days after written notice from the Agent requesting action to remedy the same; or 

  

	 	(d)	(subject to any applicable grace period specified in any Finance Document) any breach by any Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach falling within paragraphs
(a), (b) or (c)); or 

  

	 	(e)	any representation, warranty or statement made or repeated by, or by an officer of, a Borrower or a Security Party in a Finance Document or in a Drawdown Notice or any other notice or document relating to a Finance
Document is untrue or misleading when it is made or repeated; or 

  

	 	(f)	any of the following occurs in relation to any Financial Indebtedness (exceeding $5,000,000 in respect of the Corporate Guarantor and $1,000,000 for all other Relevant Persons) of a Relevant Person: 

 

	 	(i)	any Financial Indebtedness of a Relevant Person is not paid when due; or 

  

	 	(ii)	any Financial Indebtedness of a Relevant Person becomes due and payable prior capable of being declared due and payable prior to its stated maturity date as a consequence of any event of default; or 

 

	 	(iii)	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or transaction, relating to any Financial Indebtedness of
a Relevant Person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a facility as a result of any event of default;
or 

  

	 	(iv)	an event of default howsoever described (or any event which with the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition or any combination of the foregoing
would constitute such an event of default) occurs under any document relating to Financial Indebtedness of a Relevant Person; or 

  

	 	(v)	any Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable; or 

  
 56 

	 	(g)	any of the following occurs in relation to a Relevant Person: 

  

	 	(i)	a Relevant Person becomes, in the reasonable opinion of the Majority Lenders, unable to pay its debts as they fall due; or 

  

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress, or any form of freezing order, in respect of a sum of, or sums aggregating, $5,000,000 or more in
respect of the Corporate Guarantor and $1,000,000 or more for all other Relevant Persons or the equivalent in another currency and, in respect of a Relevant Person other than a Security Party, the same is not lifted within 30 days; or

  

	 	(iii)	any administrative or other receiver is appointed over any asset of a Relevant Person; or 

  

	 	(iv)	an administrator is appointed (whether by the court or otherwise) in respect of a Relevant Person; or 

  

	 	(v)	any formal declaration of bankruptcy or any formal statement to the effect that a Relevant Person is insolvent or likely to become insolvent is made by a Relevant Person or by the directors of a Relevant Person or, in
any proceedings, by a lawyer acting for a Relevant Person; or 

  

	 	(vi)	a provisional liquidator is appointed in respect of a Relevant Person, a winding up order is made in relation to a Relevant Person or a winding up resolution is passed by a Relevant Person; or 

 

	 	(vii)	a resolution is passed, and administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by (a) a Relevant Person, (b) the members or directors
of a Relevant Person, (c) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (d) a government minister or public or regulatory authority of a Pertinent Jurisdiction for
or with a view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another Relevant Person, or that or another Relevant Person ceasing or suspending business
operations or payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than a Borrower or the Corporate Guarantor which is, or is to be, effected for the purposes of an amalgamation or
reconstruction previously approved by the Agent and effected not later than three months after the commencement of the winding up; or 

  

	 	(viii)	an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person (other than a holder of Security Interests which
together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a Relevant Person in any Pertinent Jurisdiction,
unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law procedure being implemented instead and either
(a) the application or petition is dismissed or withdrawn within 30 days of being made or presented, or (b) within 30 days of the administration notice being given or filed, or the other relevant steps being taken, other action is taken
which will ensure that there be no administration and (in both cases (a) or (b)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual, interim or pending insolvency law
procedure; or 

  
 57 

	 	(ix)	a Relevant Person or its directors take any steps (whether by making or presenting an application or petition to a court, or submitting or presenting a document setting out a proposal or proposed terms, or otherwise)
with a view to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation of debt (or certain debt or arrangement with all or a substantial proportion (by number or value) of
creditors or of any class of them or any such moratorium, suspension or deferral of payments, reorganisation or arrangement is effected by court order, by the filing of documents with a court, by means of a contract or in any other way at all; or

  

	 	(x)	any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of considering a resolution or proposal to authorise or take any
action of a type described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or without such a meeting) the members, directors or such a committee resolve or agree that such an action or step should be taken or should be
taken if certain conditions materialise or fail to materialise; or 

  

	 	(xi)	in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Agent is similar to any of the foregoing; or 

 

	 	(h)	any Security Party is in breach of or fails to observe any law, requirement, measure or procedure implemented to combat “money laundering” as defined in Article 1 of the Directive 2005/60/EC of the European
Parliament and of the Council of the European Union; or 

  

	 	(i)	any Borrower or any Security Party ceases or suspends carrying on its business or a part of its business which, in the opinion of the Majority Lenders, is material in the context of this Agreement or the other Finance
Documents; or 

  

	 	(j)	it becomes unlawful or impossible: 

  

	 	(i)	for any Borrower or any Security Party to discharge any liability under a Finance Document or to comply with any other obligation which the Majority Lenders consider material under a Finance Document; or

  

	 	(ii)	for the Agent, the Security Trustee, the Lenders to exercise or enforce any right under, or to enforce any Security Interest created by, a Finance Document; or 

 

	 	(k)	any consent necessary to enable any Borrower to own, operate or charter its Ship or to enable any Borrower or any Security Party to comply with any provision which the Majority Lenders consider material of a Finance
Document, any MOA or any Approved Time Charter or any Management Agreement is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or 

 

	 	(l)	it appears to the Majority Lenders that, without their prior consent a change has occurred after the date of this Agreement in the legal or ultimate beneficial ownership of any of the shares in a Borrower; or

  
 58 

	 	(m)	any provision which the Majority Lenders acting reasonably consider material of a Finance Document or any Approved Time Charter proves to have been or becomes invalid or unenforceable, or a Security Interest created by
a Finance Document proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or; 

 

	 	(n)	the security constituted by a Finance Document is in any way imperilled or in jeopardy and if, in the opinion of the Majority Lenders, capable of remedy, such event or circumstance continues unremedied 14 days after
written notice from the Agent to the Borrowers or relevant Security Party requesting action to remedy the same; or 

  

	 	(o)	any Approved Time Charter is terminated other than by mere effluxion of time; 

  

	 	(p)	any other event occurs or any other circumstances arise or develop including, without limitation: 

  

	 	(i)	a change in the financial position, state of affairs or prospects of any Relevant Person; or 

  

	 	(ii)	any accident or other event involving any Ship or another vessel owned, chartered or operated by a Relevant Person; or 

  

	 	(iii)	any litigation or proceedings are commenced or threatened against a Relevant Person, 

 in the
light of which the Majority Lenders reasonably consider that: 
  

	 	(1)	there is a significant risk that any Borrower or any Security Party is, or will later become, unable to discharge its liabilities under the Finance Documents as they fall due; or 

 

	 	(2)	such event represents a material adverse change to the business of the Borrowers (or any of them) or such Security Party. 

  

	19.2	Actions following an Event of Default. On and at any time after the occurrence of an Event of Default the Agent may, and shall if so directed by the Majority Lenders, by written notice to the Borrowers:

  

	 	(a)	cancel the Total Commitments, at which time they shall immediately be cancelled; and/or 

  

	 	(b)	declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents, be immediately due and payable, at which time they shall become immediately
due and payable; and/or 

  

	 	(c)	declare that all or part of the Loan be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or 

 

	 	(d)	declare that no withdrawals be made from any Earnings Account or the Retention Account; and/or 

  

	 	(e)	exercise or direct the Security Trustee to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents. 

  
 59 

	19.3	Termination of Commitments. On the service of a notice under Clause 19.2(a)(i), the Commitments and all other obligations of each Lender to the Borrowers under this Agreement shall be cancelled.

  

	19.4	Acceleration of liabilities. On the service of a notice under Clause 19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued or owing from the Borrowers or any Security Party under this
Agreement and every other Finance Document shall become immediately due and payable or, as the case may be, payable on demand. 

  

	19.5	Multiple notices; action without notice. The Agent may serve notices under Clause 19.2(a)(i) or (ii) simultaneously or on different dates and it and/or the Security Trustee may take any action referred to in
Clause 19.2 if no such notice is served or simultaneously with or at any time after the service of both or either of such notices. 

  

	19.6	Notification of Creditor Parties and Security Parties. The Agent shall send to each Creditor Party and each Security Party a copy or the text of any notice which the Agent serves on the Borrowers under Clause
19.2; but the notice shall become effective when it is served on the Borrowers, and no failure or delay by the Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide any Borrower or any Security
Party with any form of claim or defence. 

  

	19.7	Bank’s rights unimpaired. Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to individual Lenders under a Finance Document or the general law; and, in particular,
this Clause is without prejudice to Clause 3.1. 

  

	19.8	Exclusion of Creditor Party liability. No Creditor Party, and no receiver or manager appointed by the Security Trustee, shall have any liability to a Borrower or a Security Party: 

 

	 	(a)	for any loss caused by an exercise of rights under, or enforcement of a Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or

  

	 	(b)	as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security Interest or for any reduction (however caused) in the
value of such an asset; 

 except that this does not exempt a Creditor Party or a receiver or manager from liability for losses
shown to have been directly and mainly caused by the dishonesty or the wilful misconduct of such Creditor Party’s own officers and employees or (as the case may be) such receiver’s or manager’s own partners or employees. 

 

	19.9	Relevant Persons. In this Clause 19 a “Relevant Person” means a Borrower, the Corporate Guarantor, any other Security Party (other than Rickmers Ship Management (Singapore) Pte. Ltd. and any
other Approved Manager that is not a subsidiary of the Corporate Guarantor) and any of their Subsidiaries. 

  

	19.10	Interpretation. In Clause 19.1(f) references to an event of default or a termination event include any event, howsoever described, which is similar to an event of default in a facility agreement or a termination
event in a finance lease; and in Clause 19.1(g) “petition” includes an application. 

  
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	20	EXPENSES 

  

	20.1	commitment fee. The Borrowers shall pay to the Agent for the account of the Lenders pro rata in accordance with their Commitments, on each of the dates falling at three (3) monthly intervals after
29 June 2017 until the last day of the Availability Period and on the last day of the Availability Period, commitment commission accruing from the date of this Agreement (in the case of the first payment of commission) and from the date of the
preceding payment of commission (in the case of each subsequent payment) at the rate of one point five four per cent (1.54%) per annum on the daily undrawn amount of the Total Commitments 

 

	20.2	Costs of negotiation, preparation etc. The Borrowers shall pay to the Agent on its demand the amount of all expenses incurred by the Agent or the Security Trustee in connection with the negotiation, preparation,
execution or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related document (including without limitation, any travel expenses). 

 

	20.3	Costs of variations, amendments, enforcement etc. The Borrowers shall pay to the Agent, on the Agent’s demand, for the account of the Creditor Party concerned the amount of all expenses incurred by a
Creditor Party in connection with: 

  

	 	(a)	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be made; 

  

	 	(b)	any consent or waiver by the Lenders, the Majority Lenders or the Creditor Party concerned under or in connection with a Finance Document, or any request for such a consent or waiver; 

 

	 	(c)	the valuation of any security provided or offered under Clause 15 or any other matter relating to such security; or 

  

	 	(d)	any step taken by the Creditor Party concerned with a view to the protection, exercise or enforcement of any right or Security Interest created by a Finance Document or for any similar purpose (including without
limitation any litigation cost). 

 There shall be recoverable under paragraph (d) the full amount of all legal expenses,
whether or not such as would be allowed under rules of court or any taxation or other procedure carried out under such rules. 
  

	20.4	Documentary taxes. The Borrowers shall promptly pay any tax payable on or by reference to any Finance Document, and shall, on the Agent’s demand, fully indemnify each Creditor Party against any claims,
expenses, liabilities and losses resulting from any failure or delay by the Borrowers to pay such a tax. 

  

	20.5	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 20 and which
indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due. 

  
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	21	INDEMNITIES 

  

	21.1	Indemnities regarding borrowing and repayment of Loan. The Borrowers shall fully indemnify each Creditor Party on the Agent’s demand and the Security Trustee on its demand in respect of all claims, expenses,
liabilities and losses which are made or brought against or incurred by that Creditor Party, or which that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in connection with: 

 

	 	(a)	an Advance not being borrowed on the date specified in the relevant Drawdown Notice for any reason other than a default by the Lender claiming the indemnity; 

 

	 	(b)	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period; 

 

	 	(c)	any failure (for whatever reason) by the Borrowers to make payment of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest paid by the
Borrowers on the amount concerned under Clause 7); 

  

	 	(d)	the occurrence and/or continuance of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan or any part of it under Clause 19; 

and in respect of any tax (other than tax on its overall net income) for which a Creditor Party is liable in connection with any amount paid or
payable to that Creditor Party (whether for its own account or otherwise) under any Finance Document. 
  

	21.2	Breakage costs. Without limiting its generality, Clause 21.1 covers any claim, expense, liability or loss, including a loss of a prospective profit, incurred by a Lender: 

 

	 	(a)	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or
any overdue amount); and 

  

	 	(b)	in terminating, or otherwise in connection with, any interest and/or currency swap or any other transaction entered into (whether with another legal entity or with another office or department of the Lender concerned)
to hedge any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement of the amount of the liabilities, expenses or losses (including losses of prospective profits) incurred by
it in terminating, or otherwise in connection with, a number of transactions of which this Agreement is one. 

  

	21.3	Miscellaneous indemnities. The Borrowers shall fully indemnify each Creditor Party severally on their respective demands in respect of all claims, expenses, liabilities and losses which may be made or brought
against or incurred by a Creditor Party, in any country, as a result of or in connection with: 

  

	 	(a)	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a Finance
Document; or 

  

	 	(b)	any other Pertinent Matter; 

 other than claims, expenses, liabilities and losses which are
shown to have been directly and mainly caused by the dishonesty or wilful misconduct of the officers or employees of the Creditor Party concerned. 

  
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 Without prejudice to its generality, this Clause 21.3 covers any claims, expenses, liabilities
and losses which arise, or are asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code, the MARPOL Protocol or any Environmental Law. 

 

	21.4	Currency indemnity. If any sum due from any Borrower or any Security Party to a Creditor Party under a Finance Document or under any order or judgment relating to a Finance Document has to be converted from the
currency in which the Finance Document provided for the sum to be paid (the “Contractual Currency”) into another currency (the “Payment Currency”) for the purpose of: 

 

	 	(a)	making or lodging any claim or proof against any Borrower or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or 

 

	 	(b)	obtaining an order or judgment from any court or other tribunal; or 

  

	 	(c)	enforcing any such order or judgment; 

 the Borrowers shall indemnify the Creditor Party
concerned against the loss arising when the amount of the payment actually received by that Creditor Party is converted at the available rate of exchange into the Contractual Currency. 

In this Clause 21.4 the “available rate of exchange” means the rate at which the Creditor Party concerned is able at the
opening of business (Rotterdam time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency. 

This Clause 21.4 creates a separate liability of the Borrowers which is distinct from their other liabilities under the Finance Documents and
which shall not be merged in any judgment or order relating to those other liabilities. 
  

	21.5	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 21 and which
indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due. 

 

	21.6	Sums deemed due to a Lender. For the purposes of this Clause 21, a sum payable by the Borrowers to the Agent or the Security Trustee for distribution to a Lender shall be treated as a sum due to that Lender.

  

	22	NO SET-OFF OR TAX DEDUCTION 

  

	22.1	No deductions. All amounts due from the Borrowers under a Finance Document shall be paid: 

  

	 	(a)	without any form of set-off, cross-claim or condition; and 

  

	 	(b)	free and clear of any tax deduction except a tax deduction which the Borrowers are required by law to make. 

  

	22.2	Grossing-up for taxes. If a Borrower is required by law to make a tax deduction from any payment (other than a FATCA Deduction): 

 

	 	(a)	that Borrower shall notify the Agent as soon as it becomes aware of the requirement; 

  
 63 

	 	(b)	that Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises; 

 

	 	(c)	the amount due in respect of the payment shall be increased by the amount necessary to ensure that each Creditor Party receives and retains (free from any liability relating to the tax deduction) a net amount which,
after the tax deduction, is equal to the full amount which it would otherwise have received. 

  

	22.3	Evidence of payment of taxes. Within 1 month after making any tax deduction, the Borrower concerned shall deliver to the Agent documentary evidence satisfactory to the Agent that the tax had been paid to the
appropriate taxation authority. 

  

	22.4	Exclusion of tax on overall net income. In this Clause 22 “tax deduction” means any deduction or withholding for or on account of any present or future tax except tax on a Creditor Party’s
overall net income. 

  

	23	ILLEGALITY, ETC 

  

	23.1	Illegality. This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent that it has become, or will with effect from a specified date, become: 

 

	 	(a)	unlawful or prohibited as a result of the introduction of a new law, an amendment to an existing law or a change in the manner in which an existing law is or will be interpreted or applied; or 

 

	 	(b)	contrary to, or inconsistent with, any regulation, 

 for the Notifying Lender to maintain or
give effect to any of its obligations under this Agreement in the manner contemplated by this Agreement. 
  

	23.2	Notification of illegality. The Agent shall promptly notify the Borrowers, the Security Parties, and each of the Creditor Parties of the notice under Clause 23.1 which the Agent receives from the Notifying
Lender. 

  

	23.3	Prepayment; termination of Commitment. On the Agent notifying the Borrowers under Clause 23.2, the Notifying Lender’s Commitment shall terminate; and thereupon or, if later, on the date specified in the
Notifying Lender’s notice under Clause 23.1 as the date on which the notified event would become effective the Borrowers shall prepay the Notifying Lender’s Contribution in accordance with Clause 8. 

 

	23.4	Mitigation. If circumstances arise which would result in a notification under Clause 23.1 then, without in any way limiting the rights of the Notifying Lender under Clause 23.3, the Notifying Lender shall use
reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Finance Documents to another office or financial institution not affected by the circumstances but the Notifying Lender shall not be under any
obligation to take any such action if, in its opinion, to do would or might: 

  

	 	(a)	have an adverse effect on its business, operations or financial condition; or 

  

	 	(b)	involve it in any activity which is unlawful or prohibited or any activity that is contrary to, or inconsistent with, any regulation; or 

 

	 	(c)	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage. 

  
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	24	INCREASED COSTS 

  

	24.1	Increased costs. This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the Agent that the Notifying Lender considers that as a result of: 

 

	 	(a)	the introduction or alteration after the date of this Agreement of a law or an alteration after the date of this Agreement in the manner in which a law is interpreted or applied (disregarding any effect which relates to
the application to payments under this Agreement of a tax on the Lender’s overall net income); or 

  

	 	(b)	complying with any regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under this
Agreement) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement, 

the Notifying Lender (or a parent company of it) has incurred or will incur an “increased cost”. 

 

	24.2	Meaning of “increase cost”. In this Clause 24, “increased cost” means, in relation to a Notifying Lender: 

 

	 	(a)	an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender having entered into, or being a party to, this Agreement or a Transfer Certificate, of funding or maintaining its
Commitment or Contribution or performing its obligations under this Agreement, or of having outstanding all or any part of its Contribution or other unpaid sums; 

  

	 	(b)	a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the effective return which such a payment represents to the Notifying Lender or on its capital; 

 

	 	(c)	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Notifying Lender’s Contribution or (as the case may require) the
proportion of that cost attributable to the Contribution; or 

  

	 	(d)	an additional or increased cost of funding all or maintaining all or any part the Notifying Lender’s Contributions or other unpaid sums or (as the case may require) the proportion of that cost attributable to the
Contributions or other unpaid sums; or 

  

	 	(e)	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the Notifying Lender under this Agreement; 

but not an item attributable to a change in the rate of tax on the overall net income of the Notifying Lender (or a parent company of it) or an
item covered by the indemnity for tax in Clause 21.1 or by Clause 22. 
 For the purposes of this Clause 24.2 the Notifying Lender may in
good faith allocate or spread costs and/or losses among its assets and liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate. 
  

	24.3	Notification to Borrowers of claim for increased costs. The Agent shall promptly notify the Borrowers and the Security Parties of the notice which the Agent received from the Notifying Lender under Clause 24.1.

  
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	24.4	Payment of increased costs. The Borrowers shall pay to the Agent, on the Agent’s demand, for the account of the Notifying Lender the amounts which the Agent from time to time notifies the Borrowers that the
Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost. 

  

	24.5	Notice of prepayment; cancellation. If the Borrowers are not willing to continue to compensate the Notifying Lender for the increased cost under Clause 24.4, the Borrowers may give the Agent not less than 14
days’ notice of their intention to: 

  

	 	(a)	prepay the Notifying Lender’s Contribution at the end of an Interest Period; and/or 

  

	 	(b)	cancel the Notifying Lender’s Available Commitment. 

  

	24.6	Prepayment; termination of Commitment. A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying Lender of the Borrowers’ notice of intended prepayment and/or
cancellation; and: 

  

	 	(a)	on the date on which the Agent serves that notice, the Available Commitment of the Notifying Lender shall be cancelled; 

  

	 	(b)	on the date specified in its notice of intended prepayment, the Borrowers shall prepay (without premium or penalty) the Notifying Lender’s Contribution, together with accrued interest thereon at the applicable rate
plus the Margin. 

  

	25	SET-OFF 

  

	25.1	Application of credit balances. Each Creditor Party may, following the occurrence of an Event of Default which is continuing, without prior notice: 

 

	 	(a)	apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of any Borrower at any office in any country of that Creditor Party in or towards satisfaction of any sum
then due from the Borrowers (or any of them) to that Creditor Party under any of the Finance Documents; and 

  

	 	(b)	for that purpose: 

  

	 	(i)	break, or alter the maturity of, all or any part of a deposit of a Borrower; 

  

	 	(ii)	convert or translate all or any part of a deposit or other credit balance into Dollars; and 

  

	 	(iii)	enter into any other transaction or make any entry with regard to the credit balance which the Creditor Party concerned considers appropriate. 

 

	25.2	Existing rights unaffected. No Creditor Party shall be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to any right of set-off, combination of accounts, charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general law or any document). 

 

	25.3	Sums deemed due to a Creditor Party. For the purposes of this Clause 25, a sum payable by the Borrowers (or any of them) to the Agent or the Security Trustee for distribution to, or for the account of, any
Creditor Party shall be treated as a sum due to that Creditor Party; and each Creditor Party’s proportion of a sum so payable for distribution to, or for the account of, the Creditor Parties shall be treated as a sum due to such Creditor Party.

  
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	25.4	No Security Interest. This Clause 25 gives the Creditor Parties a contractual right of set-off only, and does not create any equitable charge or other Security Interest
over any credit balance of any Borrower. 

  

	26	TRANSFERS AND CHANGES IN LENDING AND BOOKING OFFICES 

  

	26.1	Transfer by Borrowers. No Borrower may, without the consent of the Agent, given on the instructions of all the Lenders transfer any of its rights, liabilities or obligations under any Finance Document.

  

	26.2	Transfer by a Lender. Subject to Clause 26.4, a Lender (the “Transferor Lender”) may, (i) if such transfer is to any bank or financial institution affiliated to a Lender or if such transfer
is made while an Event of Default is continuing, without the consent of the Borrowers or (ii) if such transfer is to any arm’s length bank or financial institution, with the prior consent of the Borrowers, (such consent not to be
unreasonably withheld or delayed) at any time, cause: 

  

	 	(a)	its rights in respect of all or part of its Contribution; or 

  

	 	(b)	its obligations in respect of all or part of its Commitment; or 

  

	 	(c)	a combination of (a) and (b); 

 to be (in the case of its rights) transferred to, or (in
the case of its obligations) assumed by, another bank or financial institution (a “Transferee Lender”) by delivering to the Agent a completed certificate in the form set out in Schedule 4 with any modifications approved or required
by the Agent (a “Transfer Certificate”) executed by the Transferor Lender and the Transferee Lender. 
 However any rights
and obligations of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Deed. 
  

	26.3	Transfer Certificate, delivery and notification. As soon as reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that the Transfer Certificate
may be defective): 

  

	 	(a)	sign the Transfer Certificate on behalf of itself, the Borrowers, the Security Parties and each of the Creditor Parties; 

  

	 	(b)	on behalf of the Transferee Lender, send to the Borrowers and each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it; 

 

	 	(c)	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above. 

  

	26.4	Effective Date of Transfer Certificate. A Transfer Certificate becomes effective on the date, if any, specified in the Transfer Certificate as its effective date, Provided that it is signed by the Agent
under Clause 26.3 on or before that date. 

  

	26.5	No transfer without Transfer Certificate. No assignment or transfer of any right or obligation of a Lender under any Finance Document is binding on, or effective in relation to, any Borrower, any Security Party,
the Agent or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate. 

  
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	26.6	Lender re-organisation; waiver of Transfer Certificate. However, if a Lender enters into any merger, de-merger or other
reorganisation as a result of which all its rights or obligations vest in another person (the “successor”), the Agent may, if it sees fit, by notice to the successor and the Borrowers and the Security Trustee waive the need for the
execution and delivery of a Transfer Certificate; and, upon service of the Agent’s notice, the successor shall become a Lender with the same Commitment and Contribution as were held by the predecessor Lender. 

 

	26.7	Effect of Transfer Certificate. A Transfer Certificate takes effect in accordance with English law as follows: 

  

	 	(a)	to the extent specified in the Transfer Certificate, all rights and interests (present, future or contingent) which the Transferor Lender has under or by virtue of the Finance Documents are assigned to the Transferee
Lender absolutely, free of any defects in the Transferor Lender’s title and of any rights or equities which any Borrower or any Security Party had against the Transferor Lender; 

 

	 	(b)	the Transferor Lender’s Commitment is discharged to the extent specified in the Transfer Certificate; 

  

	 	(c)	the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender and a Commitment of an amount specified in the Transfer Certificate; 

 

	 	(d)	the Transferee Lender becomes bound by all the provisions of the Finance Documents which are applicable to the Lenders generally, including those about pro-rata sharing and the
exclusion of liability on the part of, and the indemnification of, the Agent and the Security Trustee and, to the extent that the Transferee Lender becomes bound by those provisions (other than those relating to exclusion of liability), the
Transferor Lender ceases to be bound by them; 

  

	 	(e)	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s effective date ranks in point of priority and security in the same way as it would have ranked had it been advanced by the
Transferor Lender, assuming that any defects in the transferor’s title and any rights or equities of any Borrower or any Security Party against the Transferor Lender had not existed; 

 

	 	(f)	the Transferee Lender becomes entitled to all the rights under the Finance Documents which are applicable to the Lenders generally, including but not limited to those relating to the Majority Lenders and those under
Clause 5.7 and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to them; and 

  

	 	(g)	in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any misrepresentation made in or in connection with a Finance Document, the Transferee Lender shall be entitled
to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the original Lender would have incurred a loss of that kind or amount. 

The rights and equities of the Borrowers or any Security Party referred to above include, but are not limited to, any right of set off and any
other kind of cross-claim. 
  

	26.8	Maintenance of register of Lenders. During the Security Period the Agent shall maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including the lending
office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with Clause 26.4) of the Transfer Certificate; and the Agent shall make the register available for inspection by any Creditor Party and the
Borrowers during normal banking hours, subject to receiving at least 3 Business Days prior notice. 

  
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	26.9	Reliance on register of Lenders. The entries on that register shall, in the absence of manifest error, be conclusive in determining the identities of the Lenders and the amounts of their Commitments and
Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to the Finance Documents for all purposes relating to the Finance Documents. 

 

	26.10	Authorisation of Agent to sign Transfer Certificates. The Borrowers and each Creditor Party irrevocably authorise the Agent to sign Transfer Certificates on its behalf. 

 

	26.11	Registration fee. In respect of any Transfer Certificate, the Agent shall be entitled to recover a registration fee of $1,000 from the Transferor Lender or (at the Agent’s option) the Transferee Lender.

  

	26.12	Sub-participation; subrogation assignment. A Lender may sub-participate all or any part of its rights and/or obligations under or in
connection with the Finance Documents without the consent of, or any notice to, the Borrowers, any Security Party, or the other Creditor Parties; and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the Agent and the
Security Trustee, all or any part of those rights to an insurer or surety who has become subrogated to them. 

  

	26.13	Disclosure of information. A Lender may disclose to a potential Transferee Lender or sub-participant any information which the Lender has received in relation to any
Borrower, any Security Party or their affairs under or in connection with any Finance Document, unless the information is clearly of a confidential nature. 

Without prejudice to the above, each Borrower irrevocably authorises each Creditor Party to give, divulge and reveal from time to time
information and details relating to its accounts, the Finance Documents and the facilities granted pursuant thereto to any authorities, each Creditor Party’s head office, branches and affiliates, any other parties to the Finance Documents and
any person regarding any funding, operational arrangement or other transaction in relation thereto, including without limitation, for purposes in connection with any enforcement or assignment or transfer of any of the Creditor Parties’ rights
and obligations. This authorisation shall survive and continue in full force and effect for the benefit of each Creditor Party notwithstanding the repayment, cancellation or termination of the Loan or any part thereof and/or the termination of one
or more types of banker-customer relationships between any Security Party and the relevant Creditor Party. 
  

	26.14	Change of lending or booking office. A Lender may, at its own cost, change its lending or booking office, as the case may be, by giving notice to the Agent and the change shall become effective on the later of:

  

	 	(a)	the date on which the Agent receives the notice; and 

  

	 	(b)	the date, if any, specified in the notice as the date on which the change will come into effect, 

provided that the Borrowers shall bear no additional obligations as a result of such change in lending office. 

On receiving such a notice, the Agent shall notify the Borrowers and the Security Trustee; and, until the Agent receives such a notice, it
shall be entitled to assume that a Lender is acting through the lending or booking office, as the case may be, of which the Agent last had notice. 
  

	26.15	 Replacement of Reference Bank. If any Reference Bank ceases to be a Lender or is unable on a continuing
basis to supply quotations for the purposes of Clause 5 then, unless the Borrowers, the Agent and the Majority Lenders otherwise agree, the Agent, 

  
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acting on the instructions of the Majority Lenders, and after consulting the Borrowers, shall appoint another bank (whether or not a Lender) to be a replacement Reference Bank; and, when that
appointment comes into effect, the first-mentioned Reference Bank’s appointment shall cease to be effective. 

  

	27	VARIATIONS AND WAIVERS 

  

	27.1	Variations, waivers etc. by Majority Lenders. Subject to Clause 27.2, a document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or any Creditor Party’s rights or
remedies under such a provision or the general law, only if the document is signed, or specifically agreed to by letter or fax, by the Borrowers, by the Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee in their own
rights, and, if the document relates to a Finance Document to which a Security Party is party, by that Security Party. 

  

	27.2	Variations, waivers etc. requiring agreement of all Lenders. However, as regards the following, Clause 27.1 applies as if the words “by the Agent on behalf of the Majority Lenders” were replaced by the
words “by or on behalf of every Lender”: 

  

	 	(a)	a change in the Margin or in the definition of LIBOR; 

  

	 	(b)	a change to the date for, the amount of, any payment of principal, interest, fees, or other sum payable under this Agreement; 

  

	 	(c)	a change to any Lender’s Commitment; 

  

	 	(d)	an extension of Availability Period; 

  

	 	(e)	a change to the definition of “Majority Lenders” or “Finance Documents”; 

  

	 	(f)	a change to the preamble or to Clause 2, 3, 4, 5.1, 10.23, 11.23, 17, 18 or 31; 

  

	 	(g)	a change to this Clause 27; 

  

	 	(h)	any release of, or material variation to, a Security Interest, guarantee, indemnity or subordination arrangement set out in a Finance Document; and 

 

	 	(i)	any other change or matter as regards which this Agreement or another Finance Document expressly provides that each Lender’s consent is required. 

 

	27.3	Exclusion of other or implied variations. Except for a document which satisfies the requirements of Clauses 27.1 and 27.2, no document, and no act, course of conduct, failure or neglect to act, delay or
acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them) shall result in the Creditor Parties or any of them (or any person acting on behalf of any of them) being taken to have varied, waived,
suspended or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising: 

  

	 	(a)	a provision of this Agreement or another Finance Document; or 

  

	 	(b)	an Event of Default; or 

  

	 	(c)	a breach by a Borrower or a Security Party of an obligation under a Finance Document or the general law; or 

  

	 	(d)	any right or remedy conferred by any Finance Document or by the general law; 

  
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 and there shall not be implied into any Finance Document any term or condition requiring any such
provision to be enforced, or such right or remedy to be exercised, within a certain or reasonable time. 
  

	27.4	Co-operation on potential restructuring of facilities. Provided the Lenders have provided their consent to the relevant tax enhancement structure (upon such terms as are
acceptable to the Lenders), the Lenders will provide reasonable co-operation for such changes as are necessary (at the Borrowers’ costs) relating to such tax enhancement transaction. 

 

	28	NOTICES 

  

	28.1	General. Unless otherwise specifically provided, any notice under or in connection with any Finance Document shall be given by letter or fax or electronic message; and references in the Finance Documents to
written notices, notices in writing and notices signed by particular persons shall be construed accordingly. 

  

	28.2	Addresses for communications. A notice shall be sent: 

  

									
	(a)	  	to the Borrowers:	  	Address c/o Navios Shipmanagement Inc.
			
		  		  	85 Akti Miaouli
		  		  	Piraeus
		  		  	Greece
				
		  	Fax no:	  		  	+ 30 210 453 1984
				
	(b)	  	to a Lender:	  		  	At the address below its name in Part A of Schedule 1 or (as the case may require) in the relevant Transfer Certificate.
					
	(c)	  	to the Agent and the	  		  	Address	  	        Coolsingel 93
		  		  		  	3012 AE Rotterdam
		  		  		  	The Netherlands
					
		  		  		  	Attn:	  	Global Transportation & Logistics
		  		  		  	Fax no:	  	        +31 (0) 10 401 53 23

 or to such other address as the relevant party may notify to the Agent or, if the relevant party is the
Agent or the Security Trustee, the Borrowers, the Lenders and the Security Parties. 
  

	28.3	Effective date of notices. Subject to Clauses 28.4 and 28.5: 

  

	 	(a)	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; 

 

	 	(b)	a notice which is sent by fax or electronic message shall be deemed to be served, and shall take effect, 2 hours after its transmission is completed. 

 

	28.4	Service outside business hours. However, if under Clause 28.3 a notice would be deemed to be served: 

  

	 	(a)	on a day which is not a business day in the place of receipt; or 

  
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	 	(b)	on such a business day, but after 5 p.m. local time; 

 the notice shall (subject to Clause 28.5)
be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day. 
  

	28.5	Illegible notices. Clauses 28.3 and 28.4 do not apply if the recipient of a notice notifies the sender within 1 hour after the time at which the notice would otherwise be deemed to be served that the notice has
been received in a form which is illegible in a material respect. 

  

	28.6	Valid notices. A notice under or in connection with a Finance Document shall not be invalid by reason that its contents or the manner of serving it do not comply with the requirements of this Agreement or, where
appropriate, any other Finance Document under which it is served if: 

  

	 	(a)	the failure to serve it in accordance with the requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or 

 

	 	(b)	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing particulars should have been. 

 

	28.7	English language. Any notice under or in connection with a Finance Document shall be in English. 

  

	28.8	Meaning of “notice”. In this Clause 28, “notice” includes any demand, consent, authorisation, approval, instruction, waiver or other communication. 

 

	29	JOINT AND SEVERAL LIABILITY/PARALELL DEBT 

  

	29.1	General. All liabilities and obligations of the Borrowers under this Agreement shall, whether expressed to be so or not, be joint (notwithstanding Clause 29.2) and several. 

 

	29.2	No impairment of Borrowers’ obligations. The liabilities and obligations of a Borrower shall not be impaired by: 

  

	 	(a)	this Agreement being or later becoming void, unenforceable or illegal as regards the other Borrowers or any of them; 

  

	 	(b)	any Lender or the Security Trustee entering into any rescheduling, refinancing or other arrangement of any kind with the other Borrowers or any of them; 

 

	 	(c)	any Lender or the Security Trustee releasing any other Borrower or any Security Interest created by a Finance Document; or 

  

	 	(d)	any combination of the foregoing. 

  

	29.3	Principal debtors. Each Borrower declares that it is and will, throughout the Security Period, remain a principal debtor for all amounts owing under this Agreement and the Finance Documents and no Borrower shall
in any circumstances be construed to be a surety for the obligations of any of the other Borrowers under this Agreement. 

  

	29.4	Subordination. Subject to Clause 29.5, during the Security Period, no Borrower shall: 

  

	 	(a)	claim any amount which may be due to it from any other Borrower whether in respect of a payment made, or matter arising out of, this Agreement or any Finance Document, or any matter unconnected with this Agreement or
any Finance Document; or 

  
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	 	(b)	take or enforce any form of security from any other Borrower for such an amount, or in any other way seek to have recourse in respect of such an amount against any asset of any other Borrower; or 

 

	 	(c)	set off such an amount against any sum due from it to any other Borrower; or 

  

	 	(d)	prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving any other Borrower or other Security Party; or 

 

	 	(e)	exercise or assert any combination of the foregoing. 

  

	29.5	Borrowers’ required action. If during the Security Period, the Agent, by notice to any Borrower, requires it to take any action referred to in paragraphs (a) to (e) of Clause 29.4 in
relation to any other Borrower, that Borrower shall take that action as soon as practicable after receiving the Agent’s notice. 

  

	29.6	Parallel Debt 

 Notwithstanding any other provision of the Finance Documents, each
Borrower hereby irrevocably and unconditionally undertakes to pay to the Security Trustee, as creditor in its own right and not as representative of the other Creditor Parties, sums equal to and in the currency of each amount payable by any Borrower
and any Security Party to any Creditor Party under any Finance Document as and when that amount falls due for payment under the relevant Finance Document or would have fallen due but for any discharge resulting from failure of another Creditor Party
to take appropriate steps, in insolvency proceedings affecting that Borrower, to preserve its entitlement to be paid that amount (the “Parallel Debt”). 

The Security Trustee shall have its own independent right to demand payment of the amounts payable by each Borrower under this Clause 29.6,
irrespective of any discharge of any Borrower and/or any Security Party’s obligation to pay those amounts to the other Creditor Parties resulting from failure by them to take appropriate steps, in insolvency proceedings affecting that Borrower
and/or any Security Party, to preserve their entitlement to be paid those amounts. 
 Any amount due and payable by a Borrower to the
Security Trustee under this Clause 29.6 shall be decreased to the extent that the other Creditor Parties have received (and are able to retain) payment in full of the corresponding amount under the other provisions of the Finance Documents and any
amount due and payable by a Borrower and/or a Security Party to the other Creditor Parties under those provisions shall be decreased to the extent the Security Trustee has received (and is able to retain) payment in full of the corresponding amount
under this Clause 29.6. 
 The Borrowers and the Creditor Parties acknowledge that, in respect of the Parallel Debt, the Security Trustee
acts in its own name and not as representative of the Creditor Parties or any of them 
  

	30	SUPPLEMENTAL 

  

	30.1	Rights cumulative, non-exclusive. The rights and remedies which the Finance Documents give to each Creditor Party are: 

 

	 	(a)	cumulative; 

  

	 	(b)	may be exercised as often as appears expedient; and 

  
 73 

	 	(c)	shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law. 

 

	30.2	Severability of provisions. If any provision of a Finance Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality of the other provisions
of that Finance Document or of the provisions of any other Finance Document. 

  

	30.3	Counterparts. A Finance Document may be executed in any number of counterparts. 

  

	30.4	Third party rights. A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

  

	31	LAW AND JURISDICTION 

  

	31.1	English law. This Agreement shall be governed by, and construed in accordance with, English law. 

  

	31.2	Exclusive English jurisdiction. Subject to Clause 31.3, the courts of England shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Agreement.

  

	31.3	Choice of forum for the exclusive benefit of the Creditor Parties. Clause 31.2 is for the exclusive benefit of the Creditor Parties, each of which reserves the right: 

 

	 	(a)	to commence proceedings in relation to any matter which arises out of or in connection with this Agreement in the courts of any country other than England and which have or claim jurisdiction to that matter; and

  

	 	(b)	to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England. 

No Borrower shall commence any proceedings in any country other than England in relation to a matter which arises out of or in connection with
this Agreement. 
  

	31.4	Process agent. Each Borrower irrevocably appoints HFW Nominees Ltd at present of Friary Court, 65 Crutched Friars, London EC3N 2AE, England, to act as its agent to receive and accept on its behalf any process or
other document relating to any proceedings in the English courts which are connected with this Agreement. 

  

	31.5	Creditor Party rights unaffected. Nothing in this Clause 31 shall exclude or limit any right which any Creditor Party may have (whether under the law of any country, an international convention or otherwise) with
regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction. 

  

	31.6	Meaning of “proceedings”. In this Clause 31, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure. 

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.  

  
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