Document:

Revolving Credit and Security Agreement dated December 2, 2011

 Exhibit 10.1 
 EXECUTION VERSION 
 REVOLVING CREDIT 

AND 

SECURITY AGREEMENT 
 PNC BANK, NATIONAL ASSOCIATION 
 (AS LENDER AND AS AGENT) 

WITH 

VIRCO MFG. CORPORATION, 
 a Delaware corporation 
 AND 

VIRCO INC., 

a Delaware corporation 
 (AS BORROWERS) 
 THE OTHER BORROWERS FROM TIME TO TIME PARTY HERETO

 AND 
 THE GUARANTORS FROM TIME TO TIME PARTY HERETO 
 

 
 December 22, 2011 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	ARTICLE I	 	DEFINITIONS	  	 	  1	  
			
	1.1  	 	Accounting Terms	  	 	  1	  
	1.2  	 	General Terms	  	 	  1	  
	1.3  	 	Uniform Commercial Code Terms	  	 	24	  
	1.4  	 	Certain Matters of Construction	  	 	24	  
			
	ARTICLE II	 	ADVANCES, PAYMENTS	  	 	25	  
			
	2.1  	 	Revolving Advances	  	 	25	  
	2.2  	 	Procedure for Revolving Advances Borrowing	  	 	26	  
	2.3  	 	Disbursement of Advance Proceeds	  	 	28	  
	2.4  	 	Maximum Advances	  	 	29	  
	2.5  	 	Repayment of Advances	  	 	29	  
	2.6  	 	Repayment of Excess Advances	  	 	29	  
	2.7  	 	Statement of Account	  	 	29	  
	2.8  	 	Letters of Credit	  	 	30	  
	2.9  	 	Issuance of Letters of Credit	  	 	30	  
	2.10	 	Requirements For Issuance of Letters of Credit	  	 	30	  
	2.11	 	Disbursements, Reimbursement	  	 	31	  
	2.12	 	Repayment of Participation Advances	  	 	32	  
	2.13	 	Documentation	  	 	32	  
	2.14	 	Determination to Honor Drawing Request	  	 	33	  
	2.15	 	Nature of Participation and Reimbursement Obligations	  	 	33	  
	2.16	 	Indemnity	  	 	34	  
	2.17	 	Liability for Acts and Omissions	  	 	34	  
	2.18	 	Additional Payments	  	 	35	  
	2.19	 	Manner of Borrowing and Payment	  	 	36	  
	2.20	 	Mandatory Prepayments	  	 	37	  
	2.21	 	Use of Proceeds	  	 	37	  
	2.22	 	Defaulting Lender	  	 	38	  
			
	ARTICLE III	 	INTEREST AND FEES	  	 	39	  
			
	3.1  	 	Interest	  	 	39	  
	3.2  	 	Letter of Credit Fees	  	 	39	  
	3.3  	 	[Intentionally Omitted.]	  	 	40	  
	3.4  	 	Fee Letter	  	 	40	  
	3.5  	 	Computation of Interest and Fees	  	 	40	  
	3.6  	 	Maximum Charges	  	 	40	  
	3.7  	 	Increased Costs	  	 	40	  
	3.8  	 	Basis for Determining Interest Rate Inadequate or Unfair	  	 	41	  
	3.9  	 	Capital Adequacy	  	 	42	  
	3.10	 	Gross Up for Taxes	  	 	42	  
	3.11	 	Withholding Tax Exemption	  	 	42	  
	3.12	 	Replacement of Lenders	  	 	43	  
			
	ARTICLE IV	 	COLLATERAL: GENERAL TERMS	  	 	44	  
			
	4.1  	 	Security Interest in the Collateral	  	 	44	  

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	4.2  	 	Perfection of Security Interest	  	 	44	  
	4.3  	 	Disposition of Collateral	  	 	45	  
	4.4  	 	Preservation of Collateral	  	 	45	  
	4.5  	 	Ownership of Collateral	  	 	45	  
	4.6  	 	Defense of Secured Parties’ Interests	  	 	46	  
	4.7  	 	Books and Records	  	 	46	  
	4.8  	 	Financial Disclosure	  	 	47	  
	4.9  	 	Compliance with Laws	  	 	47	  
	4.10	 	Inspections and Appraisals	  	 	47	  
	4.11	 	Insurance	  	 	47	  
	4.12	 	Failure to Pay Insurance	  	 	48	  
	4.13	 	Payment of Taxes	  	 	48	  
	4.14	 	Payment of Leasehold Obligations	  	 	49	  
	4.15	 	Receivables	  	 	49	  
	4.16	 	Inventory	  	 	51	  
	4.17	 	Maintenance of Equipment	  	 	51	  
	4.18	 	Exculpation of Liability	  	 	51	  
	4.19	 	Environmental Matters	  	 	52	  
	4.20	 	Financing Statements	  	 	54	  
	4.21	 	Deposit and Investment Accounts	  	 	54	  
	4.22	 	New and Newly Registered Intellectual Property	  	 	54	  
			
	ARTICLE V	 	REPRESENTATIONS AND WARRANTIES	  	 	55	  
			
	5.1  	 	Authority	  	 	55	  
	5.2  	 	Formation and Qualification	  	 	55	  
	5.3  	 	Survival of Representations and Warranties	  	 	55	  
	5.4  	 	Tax Returns	  	 	56	  
	5.5  	 	Financial Statements	  	 	56	  
	5.6  	 	Entity Names	  	 	56	  
	5.7  	 	O.S.H.A	  	 	57	  
	5.8  	 	Solvency; No Litigation, Violation, Indebtedness or Default	  	 	57	  
	5.9  	 	Patents, Trademarks, Copyrights and Licenses	  	 	58	  
	5.10	 	Licenses and Permits	  	 	58	  
	5.11	 	Default of Indebtedness; No Default	  	 	59	  
	5.12	 	No Default	  	 	59	  
	5.13	 	No Burdensome Restrictions	  	 	59	  
	5.14	 	No Labor Disputes	  	 	59	  
	5.15	 	Margin Regulations	  	 	59	  
	5.16	 	Investment Company Act	  	 	59	  
	5.17	 	Disclosure	  	 	59	  
	5.18	 	Swaps	  	 	60	  
	5.19	 	Conflicting Agreements	  	 	60	  
	5.20	 	Application of Certain Laws and Regulations	  	 	60	  
	5.21	 	Business and Property of Credit Parties	  	 	60	  
	5.22	 	Section 20 Subsidiaries	  	 	60	  
	5.23	 	Anti-Terrorism Laws	  	 	60	  

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	5.24	 	Trading with the Enemy	  	 	61	  
	5.25	 	Ricoh Financing Statement	  	 	61	  
	5.26	 	Commercial Tort Claims	  	 	61	  
			
	ARTICLE VI	 	AFFIRMATIVE COVENANTS	  	 	61	  
			
	6.1  	 	Payment of Fees	  	 	61	  
	6.2  	 	Conduct of Business and Maintenance of Existence and Assets	  	 	61	  
	6.3  	 	Violations	  	 	62	  
	6.4  	 	Government Receivables	  	 	62	  
	6.5  	 	Financial Covenants	  	 	62	  
	6.6  	 	Execution of Supplemental Instruments	  	 	63	  
	6.7  	 	Payment of Indebtedness	  	 	63	  
	6.8  	 	Standards of Financial Statements	  	 	64	  
	6.9  	 	Post-Closing Covenants	  	 	64	  
			
	ARTICLE VII	 	NEGATIVE COVENANTS	  	 	65	  
			
	7.1  	 	Merger, Consolidation, Acquisition and Sale of Assets	  	 	65	  
	7.2  	 	Creation of Liens	  	 	65	  
	7.3  	 	Guarantees	  	 	65	  
	7.4  	 	Investments	  	 	65	  
	7.5  	 	[Intentionally Omitted.]	  	 	66	  
	7.6  	 	Capital Expenditures	  	 	66	  
	7.7  	 	Dividends	  	 	66	  
	7.8  	 	Indebtedness	  	 	67	  
	7.9  	 	Nature of Business	  	 	67	  
	7.10	 	Transactions with Affiliates	  	 	67	  
	7.11	 	[Intentionally Omitted.]	  	 	68	  
	7.12	 	Subsidiaries	  	 	68	  
	7.13	 	Fiscal Year and Accounting Changes	  	 	68	  
	7.14	 	Pledge of Credit	  	 	68	  
	7.15	 	Amendment of Articles of Incorporation, By-Laws	  	 	68	  
	7.16	 	Compliance with ERISA	  	 	68	  
	7.17	 	Prepayment of Funded Debt	  	 	69	  
	7.18	 	Anti-Terrorism Laws	  	 	69	  
	7.19	 	Membership/Partnership Interests	  	 	69	  
	7.20	 	Trading with the Enemy Act	  	 	69	  
	7.21	 	Clean Down	  	 	69	  
	7.22	 	Leases	  	 	69	  
			
	ARTICLE VIII	 	CONDITIONS PRECEDENT	  	 	70	  
			
	8.1  	 	Conditions to Initial Advances	  	 	70	  
	8.2  	 	Conditions to Each Advance	  	 	74	  
			
	ARTICLE IX	 	INFORMATION AS TO CREDIT PARTIES	  	 	74	  
			
	9.1  	 	Disclosure of Material Matters	  	 	74	  
	9.2  	 	Schedules	  	 	74	  

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	9.3  	 	Environmental Reports	  	 	75	  
	9.4  	 	Litigation	  	 	75	  
	9.5  	 	Material Occurrences	  	 	75	  
	9.6  	 	Government Receivables	  	 	76	  
	9.7  	 	Annual Financial Statements	  	 	76	  
	9.8  	 	Quarterly Financial Statements	  	 	76	  
	9.9  	 	Monthly Financial Statements	  	 	76	  
	9.10	 	Other Reports	  	 	76	  
	9.11	 	Additional Information	  	 	76	  
	9.12	 	Projected Operating Budget	  	 	77	  
	9.13	 	Variances From Operating Budget	  	 	77	  
	9.14	 	Notice of Suits, Adverse Events	  	 	77	  
	9.15	 	ERISA Notices and Requests	  	 	77	  
	9.16	 	Additional Documents	  	 	78	  
			
	ARTICLE X	 	EVENTS OF DEFAULT	  	 	78	  
			
	10.1  	 	Nonpayment	  	 	78	  
	10.2  	 	Breach of Representation	  	 	78	  
	10.3  	 	Noncompliance	  	 	78	  
	10.4  	 	Judicial Actions	  	 	79	  
	10.5  	 	Judgments	  	 	79	  
	10.6  	 	Bankruptcy	  	 	79	  
	10.7  	 	Inability to Pay	  	 	79	  
	10.8  	 	Affiliate Actions	  	 	79	  
	10.9  	 	Lien Priority	  	 	79	  
	10.10	 	Cross Default	  	 	79	  
	10.11	 	Breach of Guaranty	  	 	80	  
	10.12	 	Change of Control	  	 	80	  
	10.13	 	Invalidity	  	 	80	  
	10.14	 	Licenses	  	 	80	  
	10.15	 	Seizures	  	 	80	  
	10.16	 	Operations	  	 	80	  
	10.17	 	Pension Plans	  	 	80	  
	10.18	 	Section 6.5 Covenants	  	 	81	  
			
	ARTICLE XI	 	LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT	  	 	81	  
			
	11.1  	 	Rights and Remedies	  	 	81	  
	11.2  	 	Agent’s Discretion	  	 	82	  
	11.3  	 	Setoff	  	 	82	  
	11.4  	 	Rights and Remedies not Exclusive	  	 	82	  
	11.5  	 	Allocation of Payments After Event of Default	  	 	83	  
			
	ARTICLE XII	 	WAIVERS AND JUDICIAL PROCEEDINGS	  	 	83	  
			
	12.1  	 	Waiver of Notice	  	 	83	  
	12.2  	 	Delay	  	 	84	  
	12.3  	 	Jury Waiver; California Judicial Reference	  	 	84	  

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	ARTICLE XIII	 	EFFECTIVE DATE AND TERMINATION	  	 	  86	  
			
	13.1  	 	Term	  	 	  86	  
	13.2  	 	Termination	  	 	  86	  
			
	ARTICLE XIV	 	REGARDING AGENT	  	 	  87	  
			
	14.1  	 	Appointment	  	 	  87	  
	14.2  	 	Nature of Duties	  	 	  87	  
	14.3  	 	Lack of Reliance on Agent and Resignation	  	 	  87	  
	14.4  	 	Certain Rights of Agent	  	 	  88	  
	14.5  	 	Reliance	  	 	  88	  
	14.6  	 	Notice of Default	  	 	  88	  
	14.7  	 	Indemnification	  	 	  88	  
	14.8  	 	Agent in its Individual Capacity	  	 	  89	  
	14.9  	 	Delivery of Documents	  	 	  89	  
	14.10	 	Borrowers’ Undertaking to Agent	  	 	  89	  
	14.11	 	No Reliance on Agent’s Customer Identification Program	  	 	  89	  
	14.12	 	Other Agreements	  	 	  89	  
			
	ARTICLE XV	 	BORROWING AGENCY; GUARANTY	  	 	  90	  
			
	15.1  	 	Borrowing Agency Provisions	  	 	  90	  
	15.2  	 	Joint and Several Liability of Borrowers	  	 	  90	  
	15.3  	 	Guaranty	  	 	  91	  
	15.4  	 	Waivers and Agreements	  	 	  93	  
			
	ARTICLE XVI	 	MISCELLANEOUS	  	 	  96	  
			
	16.1  	 	Governing Law	  	 	  96	  
	16.2  	 	Entire Understanding	  	 	  96	  
	16.3  	 	Successors and Assigns; Participations; New Lenders	  	 	  98	  
	16.4  	 	Application of Payments	  	 	100	  
	16.5  	 	Indemnity	  	 	100	  
	16.6  	 	Notice	  	 	101	  
	16.7  	 	Survival	  	 	102	  
	16.8  	 	Severability	  	 	102	  
	16.9  	 	Expenses	  	 	102	  
	16.10	 	Injunctive Relief	  	 	102	  
	16.11	 	Consequential Damages	  	 	102	  
	16.12	 	Captions	  	 	103	  
	16.13	 	Counterparts; Facsimile Signatures	  	 	103	  
	16.14	 	Construction	  	 	103	  
	16.15	 	Confidentiality; Sharing Information	  	 	103	  
	16.16	 	Publicity	  	 	103	  
	16.17	 	Certifications From Banks and Participants; USA PATRIOT Act	  	 	104	  

 LIST OF EXHIBITS AND SCHEDULES 

 

			
	EXHIBITS	 	
		
	Exhibit 1.2(a)	 	Borrowing Base Certificate
	Exhibit 1.2(b)	 	Compliance Certificate
	Exhibit 2.1(a)	 	Revolving Credit Notes
	Exhibit 8.1(k)	 	Financial Condition Certificate
	Exhibit 16.3	 	Commitment Transfer Supplement
		
	SCHEDULES	 	
		
	Schedule A	 	Notice Addresses
	Schedule 1.2	 	Permitted Encumbrances
	Schedule 4.5	 	Equipment and Inventory Locations
	Schedule 4.15(h)	 	Deposit and Investment Accounts
	Schedule 4.19	 	Real Property
	Schedule 5.1	 	Consents
	Schedule 5.2(a)	 	States of Qualification and Good Standing
	Schedule 5.2(b)	 	Subsidiaries
	Schedule 5.4	 	Federal Tax Identification Number
	Schedule 5.6	 	Prior Names
	Schedule 5.8(b)	 	Litigation
	Schedule 5.8(d)	 	Plans
	Schedule 5.9	 	Intellectual Property, Source Code Escrow Agreements
	Schedule 5.10	 	Licenses and Permits
	Schedule 5.14	 	Labor Disputes
	Schedule 5.26	 	Commercial Tort Claims
	Schedule 7.3	 	Guarantees
	Schedule 7.4	 	Investments
	Schedule 7.8	 	Indebtedness

  
 vi 

 REVOLVING CREDIT 

AND 

SECURITY AGREEMENT 
 This REVOLVING CREDIT AND SECURITY AGREEMENT dated as of December 22, 2011, among VIRCO MFG. CORPORATION, a corporation organized under the laws of the State of Delaware (“VMC”),
VIRCO INC., a corporation organized under the laws of the State of Delaware (“Virco” and, together with VMC and each Person that becomes a party hereto pursuant to Section 7.12 as a borrower, each a
“Borrower”, and collectively “Borrowers”), the Persons from time to time party hereto pursuant to Section 7.12 as a guarantor (each a “Guarantor”, and collectively
“Guarantors”), the financial institutions that are now or that hereafter become a party hereto (collectively, “Lenders” and individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION
(“PNC”), as administrative agent for Lenders (PNC, in such capacity, “Agent”). 
 IN
CONSIDERATION of the mutual covenants and undertakings herein contained, the parties hereto hereby agree as follows: 

ARTICLE I 

DEFINITIONS 
 1.1 Accounting Terms. As used in this Agreement, the other Loan Documents or any certificate, report or other document made or delivered pursuant to this Agreement, accounting terms not
defined in Section 1.2 or elsewhere in this Agreement and accounting terms partly defined in Section 1.2 to the extent not defined, have the respective meanings given to them under GAAP; provided, however, that
whenever such accounting terms are used for the purposes of determining compliance with financial covenants in this Agreement, such accounting terms shall be defined in accordance with GAAP as applied in preparation of the audited financial
statements of Borrowers for the fiscal year ended January 31, 2011. Any reference herein to GAAP “as consistently applied” shall mean GAAP as consistently applied after giving effect to any changes in GAAP, provided, that any
financial statements delivered pursuant to Sections 9.7, 9.8 or 9.9 that are prepared after any such change in GAAP shall be accompanied by a reconciliation between such financial statements after giving effect to such change in
GAAP and such financial statements without giving effect to such change GAAP. Notwithstanding the foregoing, if at any time any change in GAAP would affect the computation of any financial covenant or requirement set forth in any Loan Document, and
either Borrowing Agent, Agent, or Required Lenders so requests, Agent and Borrowing Agent shall negotiate in good faith to amend such covenant or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of Agent) it being understood that a Default or Event of Default under Section 6.5 shall not occur solely as a result of a change in GAAP to the extent such Default or Event of Default would not have occurred absent such change
in GAAP; provided that, until so amended, (a) such covenant or requirement will continue to be determined in accordance with GAAP prior to such change, and (b) Borrowers shall provide to Agent financial statements and other
documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such covenant or requirement made both before and after giving effect to such change in GAAP. 

1.2 General Terms. For purposes of this Agreement the following terms have the following meanings: 

“Accountants” has the meaning set forth in Section 9.7. 

 “Advance Rates” means, collectively, the Receivables Advance Rate and the
Inventory Advance Rate. 
 “Advances” means and includes the Revolving Advances and the Letters of Credit.

 “Affiliate” means, with respect to any Person (the “subject Person”), (a) any Person that,
directly or indirectly, is in control of, is controlled by, or is under common control with the subject Person, or (b) any Person who is a director, managing member, general partner, or officer (i) of the subject Person, (ii) of any
Subsidiary of the subject Person, or (iii) of any Person described in clause (a) preceding. For purposes of this definition, “control” of a Person means the power, direct or indirect, (y) to vote 10.0% or more of the
Equity Interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for any such Person or (z) to direct or cause the direction of the management and policies of such Person
whether by ownership of Equity Interests, contract, or otherwise. 
 “Agent” has the meaning set forth in the
preamble to this Agreement and shall include its successors and assigns. 
 “Agreement” means this Revolving
Credit Loan and Security Agreement, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“Alternate Base Rate” means, for any day, a rate per annum equal to the highest of (a) the Base Rate in
effect on such day, (b) the Federal Funds Open Rate in effect on such day plus 1/2 of 1% and (c) the Eurodollar Rate for an Interest period of one month plus 1%. 
 “Anti-Terrorism Laws” means any Applicable Laws relating to terrorism or money laundering, including Executive Order No. 13224, the USA PATRIOT Act, the Applicable Laws comprising or
implementing the Bank Secrecy Act, and the Applicable Laws administered by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing Applicable Laws may from time to time be amended, renewed, extended, or
replaced). 
 “Applicable Law” means all laws (including Environmental Laws), rules and regulations applicable
to the Person, conduct, transaction, covenant, Loan Document or contract in question, including all applicable common law and equitable principles; all provisions of all applicable state, federal and foreign constitutions, statutes, rules,
regulations, treaties, directives and orders of any Governmental Body, and all orders, judgments and decrees of all courts and arbitrators. 
 “Applicable Margin” shall mean, as of any date of determination, the number of percentage points set forth below opposite the level then in effect, it being understood that the Applicable
Margin for (i) Loans that are Domestic Rate Loans shall be the percentage set forth under the column “Domestic Rate Loans” and (ii) Loans that are Eurodollar Rate Loans shall be the percentage set forth under the column
“Eurodollar Rate Loans”: 
  

							
	 Level
	  	 EBITDA
	  	 Domestic Rate Loans
	  	 Eurodollar Rate Loans

	I	  	Less than or equal to ($4,700,000)	  	1.75	  	2.75
	II	  	Greater than (4,700,000), but less than or equal to ($2,800,000)	  	1.50	  	2.50
	III	  	Greater than ($2,800,000), but less than or equal to $7,400,000	  	1.25	  	2.25
	IV	  	Greater than $7,400,000, but less than or equal to 10,500,000	  	1.00	  	2.00
	V	  	Greater than $10,500,000	  	0.75	  	1.75

  
 2 

 Each Applicable Margin set forth above shall be adjusted, to the extent applicable, five (5) Business
Days after Parent shall have delivered Agent copies of its annual or quarterly financial statements, together with a Compliance Certificate, in each case, pursuant to Section 9.7 or 9.8 (containing the calculation of the EBITDA
for the applicable measurement period set forth therein). Prior to the delivery of such financial statements and Compliance Certificate with respect to the fiscal quarter ending on January 31, 2012, the Applicable Margins shall be set at Level
III. If VMC shall fail to deliver such financial statements and Compliance Certificate within the time periods set forth for such delivery in Section 9.7 or 9.8, as applicable, Agent may, if it elects by notice to the Borrowing
Agent (provided, that no notice shall be required if an Event of Default has occurred under Section 10.6 or an event described in Section 11.1(a)(iii) has occurred), adjust the Applicable Margins to the highest (i.e.,
most expensive) Level over the then current Level until five (5) Business Days following the delivery of such financial statements and Compliance Certificate, following which the Applicable Margin shall thereafter be determined in accordance
with the information set forth in such Compliance Certificate. In the event Agent disputes the calculations or results of any such certificate, the Applicable Margin shall not be adjusted until such dispute is resolved. If Agent reasonably
determines that the EBITDA calculation contained in any Compliance Certificate delivered pursuant to Section 9.7 or 9.8 hereof was inaccurate at any time prior to the payment in full of all of other Obligations and such
inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period than the Applicable Margin actually applied for such period, then (x) VMC shall promptly deliver to Agent a correct Compliance Certificate
for such period, (y) the Applicable Margins shall be determined as if the correct Applicable Margins (as set forth in the table above) were applicable for such period, and (z) Borrowers shall promptly deliver to Agent full payment in
respect of the accrued additional interest as a result of such increased Applicable Margin for such period. 
 “ATS
Inventory” means Inventory that constitutes “assemble-to-ship” Inventory. 
 “Authority” has
the meaning set forth in Section 4.19(d). 
 “Availability” means (a) the lesser of
(i) the Maximum Revolving Advance Amount, minus the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit, or (ii) the Formula Amount, minus (b) the aggregate amount of all outstanding Revolving Advances

 “Base Rate” means the base commercial lending rate of PNC as publicly announced to be in effect from time to
time, such rate to be adjusted automatically, without notice, on the effective date of any change in such rate. This rate of interest is determined from time to time by PNC as a means of pricing some loans to its customers and is neither tied to any
external rate of interest or index nor does it necessarily reflect the lowest rate of interest actually charged by PNC to any particular class or category of customers of PNC. 
 “Bank Products” shall mean any one or more of the following financial products or accommodations extended to any Credit Party or its Subsidiaries by Agent or any Lender or any of

  
 3 

 
Agent’s or any Lender’s respective Affiliates: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) stored value cards, (e) purchase
cards (including so-called “procurement cards” or “P-cards”), or (f) any cash management or related services including treasury, depository, return items, overdraft, controlled disbursement, merchant store value cards,
e-payables services, electronic funds transfer, interstate depository network, automatic clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) and
other cash management arrangements. 
 “Bank Products Obligations” shall mean all obligations, liabilities,
reimbursement obligations, fees, or expenses owing by any Credit Party or its Subsidiaries to Agent or any Lender or any of Agent’s or any Lender’s respective Affiliates in respect of Bank Products 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. 

“Blocked Accounts” has the meaning set forth in Section 4.15(h). 

“Blocked Account Bank” has the meaning set forth in Section 4.15(h). 

“Blocked Person” has the meaning set forth in Section 5.23(b). 

“Borrower” or “Borrowers” has the meaning set forth in the preamble to this Agreement and shall extend
to all permitted successors and assigns of such Persons. 
 “Borrowers on a Consolidated Basis” means the
consolidation in accordance with GAAP of the accounts or other items of Borrowers and their respective Subsidiaries. 

“Borrowers’ Account” has the meaning set forth in Section 2.7. 

“Borrowing Agent” means VMC. 
 “Borrowing Base Certificate” means a certificate in substantially the form of Exhibit 1.2(a) duly executed by the President, Vice President Finance or Controller of Borrowing Agent
and delivered to Agent, appropriately completed, by which such officer shall certify to Agent the Formula Amount and calculation thereof as of the date of such certificate. 
 “Business Day” means any day other than Saturday or Sunday or a legal holiday on which commercial banks are authorized or required by law to be closed for business in East Brunswick, New
Jersey, or Pasadena, California, and, if the applicable Business Day relates to any Eurodollar Rate Loans, such day must also be a day on which dealings are carried on in the London interbank market. 

“Capital Expenditures” means expenditures made or liabilities incurred for the acquisition of any fixed assets or
improvements, replacements, substitutions or additions thereto that have a useful life of more than one year, including the total principal portion of Capitalized Lease Obligations, which, in accordance with GAAP, would be classified as capital
expenditures, excluding, however, any such expenditure (a) constituting leasehold improvement expenditures that are actually paid for or reimbursed by unaffiliated third parties and (b) made to restore, replace or rebuild property to the
condition of such property immediately prior to any damage, loss, destruction or condemnation of such property, to the extent such expenditure is (i) not in excess of the amount of insurance proceeds or condemnation awards received in cash by
the Credit Parties relating to any such damage, loss, destruction or condemnation and (ii) made within one hundred and eighty (180) days of the date of receipt of such insurance proceeds or condemnation awards. 

  
 4 

 “Capitalized Lease Obligation” means any Indebtedness of any Credit Party
represented by obligations under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP. 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§9601, et seq. 

“Change of Control” means an event or series of events by which: 

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than members of the Virtue Family,
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 20% or more of the equity securities of VMC entitled to
vote for members of the board of directors or equivalent governing body of VMC on a fully-diluted basis (i.e., taking into account all such securities that such person or group has the right to acquire pursuant to any option right), provided that in
no event may the Virtue Family hold more than 45% in the aggregate of such equity securities of VMC; or 
 (b) VMC fails to own
directly or indirectly 100% of the issued and outstanding Equity Interests of any of its Subsidiaries (other than pursuant to any merger, transaction or other event expressly permitted by Section 7.1). 

“Charges” means all taxes, charges, fees, imposts, levies or other assessments, including all net income, gross income,
gross receipts, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, severance, stamp, occupation and property taxes, custom
duties, fees, assessments, liens, claims and charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts, imposed by any taxing or other authority, domestic or foreign (including the PBGC or
any other Governmental Body, environmental agency or superfund), upon the Collateral or any Credit Party. 
 “Closing
Date” means December 22, 2011. 
 “Code” means the Internal Revenue Code of 1986, as the same may
be amended or supplemented from time to time, and any successor statute of similar import, and the rules and regulations thereunder, as from time to time in effect. 
 “Collateral” means and includes all of each Credit Party’s right, title and interest in and to, whether now owned or hereafter acquired and wherever located: 

(a) Receivables; 
 (b) Equipment; 

  
 5 

 (c) General Intangibles; 

(d) all Inventory; 
 (e) all Investment Property; 
 (f) all Real Property described in a Mortgage;

 (g) all Subsidiary Stock; 
 (h) the Leasehold Interests described in a Mortgage; 
 (i) (i) its respective
goods and other property including all merchandise returned or rejected by Customers, relating to or securing any of the Receivables; (ii) all of such Credit Party’s rights as a consignor, a consignee, an unpaid vendor, mechanic, artisan,
or other lienor, including stoppage in transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all additional amounts due to such Credit Party from any Customer relating to the Receivables; (iv) other property, including
warranty claims, relating to any goods securing the Obligations; (v) all of such Credit Party’s contract rights, rights of payment that have been earned under a contract right, instruments (including promissory notes), documents, chattel
paper (including electronic chattel paper), warehouse receipts, deposit accounts, letters of credit and money; (vi) all commercial tort claims (whether now existing or hereafter arising); (vii) if and when obtained by such Credit Party,
all real and personal property of third parties in which such Credit Party has been granted a lien or security interest as security for the payment or enforcement of Receivables; (viii) all letter of credit rights (whether or not the respective
letter of credit is evidenced by a writing); (ix) all supporting obligations; and (x) any other goods, personal property or real property now owned or hereafter acquired in which such Credit Party has expressly granted a security interest
or may in the future grant a security interest to Agent hereunder, or in any amendment or supplement hereto or thereto, or under any other agreement between Agent and such Credit Party; 

(j) all of such Credit Party’s ledger sheets, ledger cards, files, correspondence, records, books of account, business papers,
computers, computer software (owned by such Credit Party or in which it has an interest), computer programs, tapes, disks and documents relating to clauses (a), (b), (c), (d), (e), (f), (g), (h) or (i) of this definition; and 

(k) all proceeds and products of clauses (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) of this definition in whatever
form, including: cash, deposit accounts (whether or not comprised solely of proceeds), certificates of deposit, insurance proceeds (including hazard, flood and credit insurance), negotiable instruments and other instruments for the payment of money,
chattel paper, security agreements, documents, eminent domain proceeds, condemnation proceeds and tort claim proceeds. 
 Notwithstanding the
foregoing, Collateral shall not include, and no Credit Party shall be deemed to have granted a security interest in: (A) any rights or interests in any license, contract or agreement to which such Credit Party is a party to the extent, but only
to the extent, that such a grant would, under the terms of such license, contract or agreement, result in a breach of the terms of, or constitute a default under, such license, lease, contract or agreement; (B) property owned by such Credit
Party that is subject to a purchase money Lien or Capitalized Lease Obligation permitted under this Agreement if the lease, license, contract, property right or agreement to which such Lien is granted prohibits or requires the consent of any Person
other than such Credit Party or its Affiliates as a condition to the creation of any other Lien on such property; (C) any voting stock of a Foreign Subsidiary in excess of 65% of all outstanding voting stock of such Foreign Subsidiary;
(D) any rights or property, including any intent-to-

  
 6 

 
use trademark applications to the extent that any valid and enforceable law or regulation applicable to such rights or property prohibits the creation of a security interest in such rights or
property or would otherwise result in a material loss of rights from the creation of such security interest therein; or (E) any rights or interests in the Leasehold Interest for the leased Real Property of the Credit Parties located at 2027
Harpers Way and Torrance, CA 90501, other than in each case of the foregoing clauses (A) and (B), to the extent the terms of any of the foregoing could be rendered ineffective pursuant to 9-406, 9-407 or 9-408 of the UCC or other Applicable
Law; provided, that immediately upon the ineffectiveness, lapse or termination of any such restriction, the Collateral shall include, and each Credit Party shall be deemed to have granted a security interest in, all such rights and interests
or other assets, as the case may be, as if such provision had never been in effect; and provided, further, that notwithstanding any such restriction, Collateral shall, to the extent such restriction does not by its terms apply thereto,
include all rights incident or appurtenant to any such rights or interests and the right to receive all proceeds derived from or in connection with the sale, assignment or transfer of such rights and interests (all of the foregoing to the extent
excluded from “Collateral” pursuant to this paragraph being referred to herein as “Excluded Property”). 
 “Commitment Percentage” of any Lender means the percentage set forth below such Lender’s name on the signature page hereof as same may be adjusted upon any assignment by a Lender
pursuant to Section 16.3(c) or 16.3(d). 
 “Commitment Transfer Supplement” means a document
in the form of Exhibit 16.3, properly completed and otherwise in form and substance satisfactory to Agent by which the Purchasing Lender purchases and assumes a portion of the obligation of Lenders to make Advances under this Agreement.

 “Compliance Certificate” means a compliance certificate in the form of that attached hereto as
Exhibit 1.2(b), appropriately completed and signed by the Vice President Finance, Treasurer or Controller of Borrowing Agent. 
 “Consents” means all filings, licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental Bodies and other third parties, domestic or foreign,
necessary to carry on the business of the Credit Parties and their Subsidiaries or necessary (including to avoid a conflict or breach under any agreement, instrument, other document, license, permit or other authorization) for the execution,
delivery or performance of this Agreement, the other Loan Documents, including any Consents required under all applicable federal, state or other Applicable Law. 
 “Consigned Inventory” means Inventory of any Borrower that is in the possession of another Person on a consignment, sale or return, sale on approval, or other basis that does not
constitute a final sale and acceptance of such Inventory. 
 “Controlled Group” means, at any time, each Credit
Party and each of its Subsidiaries and all members of their respective controlled groups of corporations and all trades or businesses (whether or not incorporated) under common control with any Credit Party or any Subsidiary of a Credit Party and
all other entities which, together with any Credit Party or any Subsidiary of a Credit Party, are treated as a single employer under Section 414 of the Code. Any entity shall continue to be considered a member of a Controlled Group of a Credit
Party or a Subsidiary thereof with respect to liabilities arising after the period in which the entity is considered a single employer with any Credit Party or any such Subsidiary for which any Credit Party or any such Subsidiary could be liable
under the Code or ERISA. 
 “Credit Parties” shall mean Borrowers and the Guarantors, and “Credit
Party” shall mean any of them. 

  
 7 

 “Customer” means and includes the account debtor with respect to any
Receivable of a Person and/or the prospective purchaser of goods, services or both with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or other arrangement with such Person,
pursuant to which such Person is to deliver any personal property or perform any services. 
 “Customs” has the
meaning set forth in Section 2.10(b). 
 “Default” means an event, circumstance or condition that,
with the giving of notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate”
has the meaning set forth in Section 3.1. 
 “Defaulting Lender” has the meaning set forth in
Section 2.22(a). 
 “Depository Accounts” has the meaning set forth in Section 4.15(h).

 “Dilution Percent” means the percentage obtained by dividing (a) bad debt write-downs or write-offs,
discounts, returns, promotions, credits, credit memos and other dilutive items with respect to all Receivables, by (b) gross sales. 
 “Dilution Reserve” means a reserve against the Formula Amount in an amount equivalent to a 1.00% reduction in the Receivables Advance Rate for each percentage point (or portion thereof)
by which the Dilution Percent exceeds 5.00%. 
 “Documents” has the meaning set forth in
Section 8.1(c). 
 “Dollar” and the sign “$” means lawful money of the United
States of America. 
 “Domestic Rate Loan” means any Advance that bears interest based upon the Alternate Base
Rate. 
 “Drawing Date” has the meaning set forth in Section 2.11(b). 

“Early Termination Date” has the meaning set forth in Section 13.1. 

“Earnings Before Interest and Taxes” means for any period the sum of (a) net income (or loss) of Borrowers on a
Consolidated Basis for such period (excluding extraordinary gains and losses), plus (b) all interest expense of Borrowers on a Consolidated Basis for such period, plus (c) all charges against income of Borrowers on a
Consolidated Basis for such period for federal, state and local taxes actually expensed for such period. 

“EBITDA” means for any period, with respect to Borrowers on a Consolidated Basis, the sum of (a) Earnings Before
Interest and Taxes for such period, plus (b) depreciation expenses for such period, plus (c) amortization expenses for such period, plus (d) to the extent deducted in determining net income of the Borrowers on a
Consolidated Basis, non-cash compensation expense (including deferred non-cash compensation expense), or other non-cash expenses or charges arising from the sale or issuance of stock, the granting of stock options, and the granting of stock
appreciation rights and similar arrangements (including any repricing, amendment, modification, substitution or change of any such stock, stock option, stock appreciation rights or similar arrangements). 

  
 8 

 “Eligible Assignee” shall mean (a) a commercial bank, or any Affiliate
thereof, organized under the laws of the United States, or any state thereof, which has total assets in excess of $500,000,000 and (b) a commercial bank, or any Affiliate thereof, organized under the laws of any other country which is a member
of the Organization for Economic Cooperation and Development or a political subdivision of any such country and which (i) is acting through a branch or agency located in the United States, and (ii) has total assets in excess of
$500,000,000, (c) any Lender or Affiliate (other than a natural Person) of a Lender, (d) so long as no Default or Event of Default has occurred and is continuing, any other Person (other than a natural Person) approved by Borrower (which
approval of Borrower shall not be unreasonably withheld, conditioned or delayed), and (e) during the continuation of a Default or an Event of Default, any other Person. 
 “Eligible ATS Inventory” means ATS Inventory that otherwise qualifies as Eligible Finished Goods Inventory except for the fact that such Inventory constitutes “assemble-to-ship”
Inventory. 
 “Eligible Inventory” means Eligible ATS Inventory, Eligible Finished Goods Inventory and Eligible
Work In Process Inventory. 
 “Eligible Finished Goods Inventory” means and includes Inventory, excluding work
in process and ATS Inventory, with respect to each Borrower, valued at the lower of cost or market value, determined on a first-in-first-out basis, that is not, in Agent’s Permitted Discretion, obsolete, slow moving or unmerchantable and that
Agent, in its Permitted Discretion, does not deem to be ineligible Inventory, based on such considerations as Agent may from time to time deem appropriate in its Permitted Discretion, including whether the Inventory is subject to a perfected, first
priority security interest in favor of Agent and no other Lien (other than a Permitted Encumbrance). In addition, Inventory shall not be Eligible Finished Goods Inventory if it: (a) does not conform to all applicable standards imposed by any
Governmental Body that has regulatory authority over such goods or the use or sale thereof; (b) is in transit (other than in transit between locations of the Credit Parties, which locations are in the United States); (c) is located outside
the United States or at a location that is not otherwise in compliance with this Agreement; (d) constitutes Consigned Inventory; (e) is the subject of an Intellectual Property Claim that Agent determines in its Permitted Discretion could
have an adverse impact on the ability to sell or otherwise dispose of or realize upon such Inventory or the value thereof; (f) is subject to a License Agreement or other agreement that limits, conditions or restricts any Borrower’s or
Agent’s right to sell or otherwise dispose of such Inventory, unless Agent is a party to a Licensor/Agent Agreement with the Licensor under such License Agreement; or (g) or is situated at a location not owned by a Borrower unless the
owner or occupier of such location has executed a Lien Waiver Agreement. 
 “Eligible Receivables” means and
includes with respect to each Borrower, each Receivable of such Borrower arising in the Ordinary Course of Business and that Agent, in its Permitted Discretion, does not deem to be an ineligible Receivable, based on such considerations as Agent may
from time to time deem appropriate. A Receivable shall not be deemed eligible unless such Receivable is subject to Agent’s first priority perfected security interest and no other Lien (other than Permitted Encumbrances), and is evidenced by an
invoice or other documentary evidence satisfactory to Agent. In addition, no Receivable shall be an Eligible Receivable if: 

(a) it arises out of a sale made by any Borrower to an Affiliate of any Borrower or to a Person controlled by an Affiliate of any
Borrower; 
 (b) it is due or unpaid more than (i) sixty (60) days after the original due date or (ii) ninety
(90) days after the original invoice date; 

  
 9 

 (c) fifty percent (50%) or more of the Receivables from such Customer are not deemed
Eligible Receivables hereunder (such percentage may, in Agent’s Permitted Discretion, be increased or decreased from time to time); 
 (d) any covenant, representation or warranty contained in this Agreement with respect to such Receivable has been breached; 
 (e) the Customer shall: (i) apply for, suffer, or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part
of its property or call a meeting of its creditors; (ii) admit in writing its inability, or be generally unable, to pay its debts as they become due or cease operations of its present business; (iii) make a general assignment for the
benefit of creditors; (iv) commence a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect); (v) be adjudicated a bankrupt or insolvent; (vi) file a petition seeking to take advantage of any other
law providing for the relief of debtors; (vii) acquiesce to, or fail to have dismissed, any petition that is filed against it in any involuntary case under such bankruptcy laws; or (viii) take any action for the purpose of effecting any of
the foregoing; 
 (f) the sale is to a Customer outside the United States of America or Canada, unless the sale is (i) on
letter of credit, guaranty or acceptance terms, in each case acceptable to Agent in its Permitted Discretion or (ii) insured pursuant to credit insurance acceptable to Agent in its sole discretion that is issued by a credit insurer and pursuant
to documentation (including an assignment to Agent of such credit insurance and the proceeds thereof) that is, in each case, acceptable to Agent in its sole discretion, provided, that the aggregate amount of Receivables included pursuant to this
clause (f)(ii) shall not exceed a sublimit to be established by Agent from time to time in its sole discretion; 

(g) the sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other
repurchase or return basis or is evidenced by chattel paper; 
 (h) Agent believes, in its Permitted Discretion, that collection
of such Receivable is insecure or that such Receivable may not be paid by reason of the Customer’s financial inability to pay; 
 (i) the Customer is the United States of America, any state or any department, agency or instrumentality of any of them, unless the applicable Borrower assigns its right to payment of such Receivable to
Agent pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. Sub-Section 3727, et seq. and 41 U.S.C. Sub-Section 15, et seq.), in the case of the United States of America or any department, agency or
instrumentality thereof, or, if requested by Agent pursuant to Section 6.4, has otherwise complied with other applicable statutes or ordinances, in the case of any state or any department, agency or instrumentality thereof; 

(j) the goods giving rise to such Receivable have not been delivered to and accepted by the Customer or the services giving rise to such
Receivable have not been performed by the applicable Borrower and accepted by the Customer or the Receivable otherwise does not represent a final sale; 
 (k) the Receivables of the Customer exceed fifteen percent (15%) of the amount of all Receivables of the Borrowers; 
 (l) the Receivable is subject to any offset, deduction, defense, dispute, or counterclaim, the Customer is also a creditor or supplier of a Borrower or the Receivable is contingent in any respect or for
any reason, but only to the extent of such offset, deduction, defense, dispute, or counterclaim; 

  
 10 

 (m) the applicable Borrower has made any agreement with any Customer for any deduction
therefrom, except for discounts or allowances made in the Ordinary Course of Business, but only to the extent of such discount, all of which discounts or allowances are reflected in the calculation of the face value of each respective invoice
related thereto; 
 (n) any return, rejection or repossession of the merchandise has occurred or the rendition of services has
been disputed, but only to the extent of such return, rejection, repossession, or dispute; 
 (o) such Receivable is not payable
to a Borrower; or 
 (p) such Receivable is not otherwise satisfactory to Agent as determined by Agent in its Permitted
Discretion. 
 “Eligible Work In Process Inventory” means Inventory that otherwise qualifies as Eligible
Finished Goods Inventory except for the fact that such Inventory constitutes “work in process” Inventory (excluding (i) Eligible ATS Inventory and (ii) any such Inventory at or in transit to a third party processor for finishing
such Inventory (other than Valley Plating located in Conway, Arkansas for same day or next day finishing), including to any third party for processor for chrome plating or otherwise, provided that such Inventory may be included as “Eligible
Work In Process Inventory” upon return of such Inventory by such third party to the Borrowers). 
 “Environmental
Complaint” has the meaning set forth in Section 4.19(d). 
 “Environmental Laws” means all
federal, state and local environmental, land use, zoning, health, chemical use, safety and sanitation laws (including common laws), statutes, ordinances and codes relating to human health and safety, pollution or the protection of the environment
and/or governing the use, storage, treatment, generation, transportation, processing, handling, production or disposal of Hazardous Substances and the rules, regulations, policies, guidelines, interpretations, decisions, orders and directives of
federal, state and local governmental agencies and authorities with respect thereto. 
 “Equipment” means and
includes as to any Person, all of such Person’s goods (other than Inventory) whether now owned or hereafter acquired and wherever located including all equipment, machinery, apparatus, motor vehicles, fittings, furniture, furnishings, fixtures,
parts, accessories and all replacements and substitutions therefor or accessions thereto. 
 “Equity Interests”
of any Person means any and all shares, rights to purchase, options, warrants, general, limited or limited liability partnership interests, member interests, participation or other equivalents of or interest in (regardless of how designated) equity
of such Person, whether voting or nonvoting, including common stock, preferred stock, convertible securities or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC
under the Exchange Act). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time and the rules and regulations promulgated thereunder. 
 “Eurodollar Rate” shall mean for any
Eurodollar Rate Loan for the then current Interest Period relating thereto the interest rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined by Agent by dividing (i) the rate which appears on the Bloomberg Page
BBAM1 (or on such other substitute Bloomberg page that displays rates at which US dollar deposits are offered by leading 

  
 11 

 
banks in the London interbank deposit market), or the rate which is quoted by another source selected by Agent which has been approved by the British Bankers’ Association as an authorized
information vendor for the purpose of displaying rates at which US dollar deposits are offered by leading banks in the London interbank deposit market (an “Eurodollar Alternate Source”), at approximately 11:00 a.m., London time two
(2) Business Days prior to the first day of such Interest Period (or if there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Eurodollar Alternate Source, a comparable replacement rate
determined by the Agent at such time (which determination shall be conclusive absent manifest error)) for an amount comparable to such Eurodollar Rate Loan and having a borrowing date and a maturity comparable to such Interest Period by (ii) a
number equal to 1.00 minus the Reserve Percentage. The Eurodollar Rate shall be adjusted with respect to any Eurodollar Rate Loan that is outstanding on the effective date of any change in the Reserve Percentage as of such effective date. Agent
shall give prompt notice to Borrowing Agent of the Eurodollar Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error. 

“Eurodollar Rate Loan” means an Advance at any time that bears interest based on the Eurodollar Rate. 

“Event of Default” has the meaning set forth in Article X. 

“Exchange Act” has the mean the Securities Exchange Act of 1934, as amended. 

“Excluded Property” has the meaning set forth in the definition of “Collateral”. 

“Executive Order No. 13224” means the Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced. 

“Extraordinary Receipts” means all Net Cash Proceeds received by Borrowers or Guarantors not in the Ordinary Course of
Business, including: (a) foreign, United States, state or local tax refunds; (b) pension plan reversions; (c) proceeds of business interruption insurance; (d) judgments, proceeds of settlements or other consideration of any kind
in connection with any cause of action; (e) indemnity payments; (f) (i) 50% of the net proceeds for the issuance of Equity Interests expressly permitted hereunder (other than issuances to a Credit Party) and (ii) 100% of all
other Equity Issuances; and (g) proceeds of any issuance of Funded Debt (other than Funded Debt permitted pursuant to Section 7.8); and (h) any purchase price adjustment received in connection with any purchase agreement.

 “Federal Funds Effective Rate” for any day means the rate per annum (based on a year of 360 days and
actual days elapsed and rounded upward to the nearest 1/100 of 1.00%) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by
federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as
the “Federal Funds Effective Rate” as of the date of this Agreement; provided that, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Federal Funds Effective Rate” for such day
shall be the Federal Funds Effective Rate for the last day on which such rate was announced. 
 “Federal Funds Open
Rate” for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen
BTMM for that day opposite the 

  
 12 

 
caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized electronic source used for the purpose of displaying such
rate as selected by PNC (a “Federal Funds Alternate Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Federal Funds Alternate Source, or if there shall at any
time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Federal Funds Alternate Source, a comparable replacement rate determined by the PNC at such time (which determination shall be conclusive absent manifest
error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the immediately preceding Business Day. If and when the Federal Funds Open Rate changes, the rate
of interest with respect to any advance to which the Federal Funds Open Rate applies will change automatically without notice to the Borrowers, effective on the date of any such change. 

“Fee Letter” means the fee letter dated as of the Closing Date among Borrowers and PNC, as amended, restated, or
otherwise modified from time to time. 
 “Financial Condition Certificate” has the meaning set forth in
Section 8.1(k). 
 “Fixed Charge Coverage Ratio” means, for Borrowers on a Consolidated Basis, with
respect to any fiscal period, the ratio of: 
 (a) EBITDA, plus capitalized lease payments during such period,
minus Unfinanced Capital Expenditures made during such period, minus cash taxes paid during such period; to  
 (b) the sum of all cash actually expended to make (i) interest payments on any Advances hereunder (other than amortization of fees and other non-interest expense hereunder), plus
(ii) payments with respect to any other Funded Debt (other than principal payments in respect of Revolving Advances that are not made in connection with a permanent reduction to the Maximum Revolving Advance Amount),
plus (iii) payments for all fees, commissions and charges set forth herein and with respect to any Advances, plus (iv) capitalized lease payments. 
 “Foreign Subsidiary” of any Person, means any Subsidiary of such Person that is not organized or incorporated in the United States or any State or territory thereof. 

“Formula Amount” has the meaning set forth in Section 2.1(a). 

“Funded Debt” means, with respect to any Person, without duplication, all Indebtedness for borrowed money evidenced by
notes, bonds, debentures, or similar evidences of Indebtedness that by its terms matures more than one year from, or is directly or indirectly renewable or extendible at such Person’s option under a revolving credit or similar agreement
obligating the lender or lenders to extend credit over a period of more than one year from the date of creation thereof, and specifically including Capitalized Lease Obligations, current maturities of long-term debt, revolving credit and short-term
debt extendible beyond one year at the option of the debtor, and also including, in the case of each Borrower, the Obligations and, without duplication, Indebtedness consisting of guaranties of any of the foregoing Indebtedness of other Persons.

 “GAAP” means generally accepted accounting principles in the United States of America. 

“General Intangibles” means and includes, with respect to any Person, all of such Person’s general intangibles,
whether now owned or hereafter acquired, including all payment intangibles, all choses in action, causes of action, corporate or other business records, inventions, designs, patents, patent 

  
 13 

 
applications, equipment formulations, manufacturing procedures, quality control procedures, trademarks, trademark applications, service marks, trade secrets, goodwill, copyrights, design rights,
software, computer information, source codes, codes, records and updates, registrations, licenses, franchises, customer lists, tax refunds, tax refund claims, computer programs, all claims under guaranties, security interests or other security held
by or granted to such Person to secure payment of any of the Receivables by a Customer (other than to the extent covered by Receivables) all rights of indemnification and all other intangible property of every kind and nature (other than
Receivables). 
 “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto Governmental Body. 
 “Governmental Body” means any nation or
government, any state or other political subdivision thereof or any entity, authority, agency, division or department exercising the legislative, judicial, regulatory or administrative functions of or pertaining to a government. 

“Gross-Up Payment” has the meaning set forth in Section 3.10. 

“Guarantor” has the meaning set forth in the preamble to this Agreement and shall extend to all permitted successors and
assigns of such Persons. 
 “Guarantor Security Agreement” means any Security Agreement executed by any
Guarantor in favor of Agent securing the Guaranty of such Guarantor, in form and substance satisfactory to the Agent. 

“Guaranty” means any guaranty of the obligations of Borrowers executed by a Guarantor in favor of Agent for its benefit
and for the ratable benefit of Lenders, in form and substance satisfactory to Agent, including the guaranty set forth in Section 15.3. 
 “Hazardous Discharge” has the meaning set forth in Section 4.19(d). 
 “Hazardous Substance” means, without limitation, any flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum
and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous or Toxic Substances or related materials as defined in or regulated under CERCLA, the Hazardous Materials Transportation Act, as amended (49 U.S.C. Sections 1801,
et seq.), RCRA, Articles 15 and 27 of the New York State Environmental Conservation Law or any other applicable Environmental Law and in the regulations adopted pursuant thereto. 

“Hazardous Wastes” means all waste materials subject to regulation under CERCLA, RCRA or applicable state law, and any
other applicable Federal and state laws now in force or hereafter enacted relating to hazardous waste disposal. 

“Hedge Liabilities” has the meaning provided in the definition of “Lender-Provided Interest Rate Hedge”.

 “Inchoate Obligations” means contingent indemnification or expense reimbursement Obligations other than
those related to claims, causes of action, or liabilities that have been asserted or threatened or that otherwise can be reasonably identified by the Agent or any Lender based on the then-known facts and circumstances. 

  
 14 

 “Indebtedness” of a Person at a particular date means all obligations of
such Person that, in accordance with GAAP, would be classified upon a balance sheet as liabilities (except (a) capital stock and surplus earned or otherwise and (b) trade payables incurred in the Ordinary Course of Business and repayable
in accordance with customary trade practices no later than sixty (60) days after the incurrence thereof) and in any event, without limitation by reason of enumeration, shall include all indebtedness, debt and other similar monetary obligations
of such Person whether direct or guaranteed, and all premiums, if any, due at the required prepayment dates of such indebtedness, and all indebtedness secured by a Lien on assets owned by such Person, whether or not such indebtedness actually has
been created, assumed or incurred by such Person. Any indebtedness of such Person resulting from the acquisition by such Person of any assets subject to any Lien shall be deemed, for the purposes hereof, to be the equivalent of the creation,
assumption and incurring of the indebtedness secured thereby, whether or not actually so created, assumed or incurred. 

“Indemnitees” means, collectively, all Secured Parties and each of their respective officers, directors, Affiliates,
attorneys, employees and agents, and “Indemnitee” means any of the foregoing Persons, individually. 

“Ineligible Security” means any security that may not be underwritten or dealt in by member banks of the Federal Reserve
System under Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as amended. 

“Intellectual Property” means property constituting under any Applicable Law a patent, patent application, copyright,
trademark, service mark, trade name, mask work, trade secret or license or other right to use any of the foregoing. 

“Intellectual Property Claim” means the assertion by any Person of a claim (whether asserted in writing, by action, suit
or proceeding or otherwise) that any Credit Party’s ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual Property or other property or asset violates any ownership of or right to use any Intellectual
Property of such Person. 
 “Interest Period” means the period provided for any Eurodollar Rate Loan pursuant
to Section 2.2(b). 
 “Interest Rate Hedge” means an interest rate exchange, collar, cap, swap,
adjustable strike cap, adjustable strike corridor or similar agreements entered into by any Credit Party or its Subsidiaries in order to provide protection to, or minimize the impact upon, such Credit Party and/or its Subsidiaries of increasing
floating rates of interest applicable to Indebtedness. 
 “Inventory” means and includes, with respect to any
Person, all of such Person’s now owned or hereafter acquired goods, merchandise and other personal property, wherever located, to be furnished under any consignment arrangement, contract of service or held for sale or lease, all raw materials,
work in process, finished goods and materials and supplies of any kind, nature or description that are or might be used or consumed in such Person’s business or used in selling or furnishing such goods, merchandise and other personal property,
and all documents of title or other documents representing them. 
 “Inventory Sublimit” means (a) during
the period commencing on March 1 of each fiscal year of VMC and ending on August 31 of such fiscal year, $30,000,000, (b) during the period commencing on September 1 of each fiscal year of VMC and ending on October 31 of
such fiscal year, $20,000,000 and (c) during the period commencing on November 1 of each fiscal year of VMC and ending on the last day of February in such fiscal year, $12,500,000. 

  
 15 

 “Inventory Advance Rate” has the meaning set forth in
Section 2.1(a)(y)(ii). 
 “Investment Property” means and includes, with respect to any Person, all
of such Person’s now owned or hereafter acquired investment property, securities (whether certificated or uncertificated), securities entitlements, securities accounts, commodities contracts and commodities accounts. 

“Issuer” means any Person who issues a Letter of Credit and/or accepts a draft pursuant to the terms hereof. 

“Leasehold Interests” means all of each Credit Party’s right, title and interest in and to the premises located at
2027 Harpers Way and Torrance, CA 90501 and 1655 Amity Road Conway, AR 72034 
 “Lender” and
“Lenders” has the meaning ascribed to such term in the preamble to this Agreement and shall include each Person that becomes a transferee, successor or assign of any Lender. 

“Lender-Provided Interest Rate Hedge” means an Interest Rate Hedge provided by any Lender and with respect to which
Agent confirms meets the following requirements: such Interest Rate Hedge (a) is documented in a standard International Swap Dealer Association Agreement; (b) provides for the method of calculating the reimbursable amount of the
provider’s credit exposure in a reasonable and customary manner, and (c) is entered into for hedging (rather than speculative) purposes. The liabilities of any Credit Party to the provider of any Lender-Provided Interest Rate Hedge (the
“Hedge Liabilities”) shall be “Obligations” hereunder, guaranteed obligations under each Guaranty and secured obligations under each Guarantor Security Agreement (unless otherwise specified in any such guaranty or
Guarantor Security Agreement) and otherwise treated as Obligations for purposes of each of the Loan Documents. The Liens securing the Hedge Liabilities shall be pari passu with the Liens securing all other Obligations under this Agreement and
the other Loan Documents. 
 “Letter of Credit Fees” has the meaning set forth in Section 3.2.

 “Letter of Credit Borrowing” has the meaning set forth in Section 2.11(d). 

“Letter of Credit Sublimit” means $3,000,000. 
 “Letters of Credit” has the meaning set forth in Section 2.8. 
 “License Agreement” means any agreement between any Credit Party and a Licensor pursuant to which such Credit Party is authorized to use any Intellectual Property in connection with the
manufacturing, marketing, sale or other distribution of any Inventory of such Credit Party or otherwise in connection with such Credit Party’s business operations (other than any off-the-shelf, shrink wrap or other generally commercially
available pre-packaged software products or licenses). 
 “Licensor” means any Person from whom any Credit
Party obtains the right to use (whether on an exclusive or non-exclusive basis) any Intellectual Property in connection with such Credit Party’s manufacture, marketing, sale or other distribution of any Inventory or otherwise in connection with
such Credit Party’s business operations. 
 “Licensor/Agent Agreement” means an agreement between Agent
and a Licensor, in form and content satisfactory to Agent in its Permitted Discretion, by which Agent is given the right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to and to complete manufacture of and dispose of any
Credit Party’s Inventory with the benefit of any Intellectual Property applicable thereto, irrespective of such Credit Party’s default under any License Agreement with such Licensor. 

  
 16 

 “Lien” means any mortgage, deed of trust, pledge, hypothecation,
assignment, security interest, lien (whether statutory or otherwise), Charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement held or asserted in respect of any asset of any kind or nature
whatsoever including any conditional sale or other title retention agreement, any lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement under the Uniform
Commercial Code or comparable law of any jurisdiction. 
 “Lien Waiver Agreement” means an agreement, in form
and substance acceptable to Agent, executed in favor of Agent in its Permitted Discretion by a Person who owns or occupies premises at which any Collateral may be located from time to time and by which such Person shall waive any Lien that such
Person may ever have with respect to any of the Collateral and shall authorize Agent from time to time to enter upon the premises to inspect or remove the Collateral from such premises or to use such premises to store or dispose of such Inventory.

 “Limited Purpose Deposit Account” means the deposit account of VMC maintained with Wells Fargo Bank,
National Association on the Closing Date to the extent such deposit account (a) is subject to Agent’s control on the Closing Date and sole control after notice by Agent to such account bank and (b) on and after the day that is ninety
(90) days after the Closing Date (or such later date as Agent shall agree in its sole discretion), does not contain amounts on deposit therein in excess of (i) amounts solely used by VMC to make employee payroll and (ii) amounts not
in excess of $100,000 per calendar month solely used to pay charge backs and fees in connection with merchant card services provided by Wells Fargo Bank, National Association to Borrowers. 

“Loan Documents” means the Revolving Credit Notes, the Fee Letter, any Guaranty, any Guarantor Security Agreement, any
Mortgage, any Pledge Agreement, any Patent Security Agreement, any Trademark Security Agreement, any Lender-Provided Interest Rate Hedge and any and all other agreements, instruments and documents, including guaranties, pledges, powers of attorney,
consents, interest or currency swap agreements or other similar agreements and all other writings heretofore, now or hereafter executed by any Credit Party and/or delivered to Agent or any Lender in respect of the transactions contemplated by this
Agreement. 
 “Material Adverse Effect” means a material adverse effect on: (a) the condition (financial
or otherwise), results of operations, assets, business, properties or prospects of any Credit Party; (b) any Credit Party’s ability to duly and punctually pay or perform the Obligations in accordance with the terms thereof; (c) the
value of the Collateral, or Agent’s Liens on the Collateral or the priority of any such Lien; or (d) the practical realization of the benefits of Agent’s and each Lender’s rights and remedies under this Agreement and the other
Loan Documents. 
 “Maximum Face Amount” means, with respect to any outstanding Letter of Credit, the face
amount of such Letter of Credit including all automatic increases provided for in such Letter of Credit, whether or not any such automatic increase has become effective. 
 “Maximum Revolving Advance Amount” means (a) during the period commencing on March 1 of each fiscal year of VMC and ending on August 31 of such fiscal year, $60,000,000,
(b) during the period commencing on September 1 of each fiscal year of VMC and ending on October 31 of such fiscal year, $40,000,000 and (c) during the period commencing on November 1 of each fiscal year of VMC and ending on
the last day of February in such fiscal year, $30,000,000. 

  
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 “Maximum Undrawn Amount” means with respect to any outstanding Letter of
Credit, the amount of such Letter of Credit that is or may become available to be drawn (whether or not any of the circumstances permitting the beneficiary to so draw exist at the time of determination), including all automatic increases provided
for in such Letter of Credit, whether or not any such automatic increase has become effective. 
 “Modified Commitment
Transfer Supplement” has the meaning set forth in Section 16.3(d). 
 “Mortgage” means the
mortgage or deed of trust on the Real Property securing the Obligations, together with all extensions, renewals, amendments, supplements, modifications, substitutions and replacements thereto and thereof. 

“Multiemployer Plan” means a “multiemployer plan” as defined in Sections 3(37) and 4001(a)(3) of ERISA to
which any Credit Party or any member of the Controlled Group is required to contribute on behalf of its employees or with respect to which any Credit Party or any member of the Controlled Group has or could reasonably be expected to have liability,
contingent or otherwise. 
 “Multiple Employer Plan” means a Plan which has two or more contributing sponsors
at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA, and to which any Credit Party or any member of the Controlled Group contributes or has or could reasonably be expected to have liability,
contingent or otherwise. 
 “Net Cash Proceeds” means gross cash proceeds less (a) bona fide direct
costs incurred to non-Affiliates of any Credit Party in connection with obtaining such proceeds, including (i) legal fees and fees of accountants and consultants, and (ii) transfer or similar taxes actually payable by such Credit Party
with respect thereto and (b) the amounts necessary to discharge any Permitted Encumbrances with respect thereto which have priority over Agent’s Liens. 
 “Obligations” means and includes (a) any and all Indebtedness, loans, advances, debts, liabilities, obligations, covenants and duties owing by the Credit Parties (or any of them) to
Lenders or Agent or to any other direct or indirect subsidiary or affiliate of Agent or any Lender of any kind or nature, present or future (including any interest or other amounts accruing thereon after maturity, or after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to any Credit Party, or that would have accrued but for the commencement of such proceeding, in each case, whether or not a claim for post-filing or
post-petition interest or other amounts is allowed in such proceeding), whether or not evidenced by any note, guaranty or other instrument, arising under this Agreement and the other Loan Documents, together with all Bank Products Obligations and
Hedge Liabilities, whether or not for the payment of money, whether arising by reason of an extension of credit, opening of a letter of credit, loan, or guarantee, under any interest or currency swap, future, option or other similar agreement
(including indebtedness, liabilities, and obligations of Credit Parties with respect to any Lender-Provided Interest Rate Hedge), or in any other manner, whether arising out of overdrafts or deposit or other accounts or electronic funds transfers
(whether through automated clearing houses or otherwise) or out of Agent’s or any Lenders non-receipt of or inability to collect funds or otherwise not being made whole in connection with depository transfer check or other similar arrangements,
whether direct or indirect (including those acquired by assignment or participation), absolute or contingent, joint or several, due or to become due, now existing or hereafter arising, contractual or tortious, liquidated or unliquidated, regardless
of how such indebtedness or liabilities arise or by what agreement or instrument they may be evidenced or whether evidenced by any agreement or instrument, including amendments, extensions, renewals or increases, and all costs and expenses of Agent
and any Lender incurred in the documentation, negotiation, modification, enforcement, collection or otherwise in connection with any of 

  
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the foregoing, including reasonable attorneys’ fees and expenses and all obligations of any Credit Party to Agent or Lenders to perform acts or refrain from taking any action, (b) all
obligations of any type described in the foregoing clause (a) arising in respect of Lender-Provided Interest Rate Hedges and (c) all obligations of any type described in the foregoing clause (a) arising in respect of cash management
or other services provided by PNC or any of its Affiliates. 
 “Ordinary Course of Business” means with respect
to any Credit Party, the ordinary course of such Credit Party’s business as conducted on the Closing Date, including any reasonably related extensions thereof in the same line of business conducted by such Credit Party on the Closing Date.

 “Out-of-Formula Loans” has the meaning set forth in Section 16.2(b). 

“Parent” of any Person means a corporation or other entity owning, directly or indirectly greater than 50% of the shares
of stock or other ownership interests having ordinary voting power to elect a majority of the directors of the Person, or other Persons performing similar functions for any such Person. 

“Participant” has the meaning set forth in Section 16.3(b). 

“Participation Advance” has the meaning set forth in Section 2.11(d). 

“Participation Commitment” means each Lender’s obligation to buy a participation of the Letters of Credit issued
hereunder. 
 “Patent Security Agreement” means the Patent Security Agreement, dated as of the Closing Date,
between Borrowers and Agent. 
 “Payee” shall have the meaning set forth in Section 3.10.

 “Payment Office” means initially Two Tower Center Boulevard, East Brunswick, New Jersey 08816; thereafter,
such other office of Agent, if any, that it may designate by notice to Borrowing Agent and to each Lender to be the Payment Office. 
 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor. 

“Pension Benefit Plan” means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer
Plan) which is covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code or Section 302 of ERISA and either (a) is maintained or contributed to by any Credit Party or any member of the
Controlled Group for employees of any Credit Party or any member of the Controlled Group; or (b) has at any time within the preceding five years been maintained or contributed to by any Credit Party or by any entity which was at such time a
member of the Controlled Group. 
 “Pension Funding Rules” shall mean the rules of the Code and ERISA regarding
minimum required contributions (including any installment payment thereof) to Pension Benefit Plans and set forth in Section 412, 430, 431 and 432 of the Code and Sections 302, 303, 304 and 305 of ERISA. 

“Peak Season” means the period from March 1 through July 30 of each fiscal year of the Borrowers. 

  
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 “Permitted Discretion” shall mean a determination made in the exercise of
reasonable (from the perspective of a secured asset based lender) business judgment. 
 “Permitted
Encumbrances” means: (a) Liens in favor of Agent for the benefit of Agent, Lenders and other Secured Parties under the Loan Documents; (b) Liens for taxes, assessments, levies or other governmental charges not delinquent or being
Properly Contested; (c) deposits or pledges to secure obligations under worker’s compensation, social security or similar laws, or under unemployment insurance; (d) deposits or pledges to secure bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations, surety and appeal bonds and other obligations of like nature arising in the Ordinary Course of Business; (e) Liens arising by virtue of the rendition, entry or issuance against
any Credit Party or Subsidiary thereof, or any property of any Credit Party or any Subsidiary thereof, of any judgment, writ, order, or decree for so long as each such Lien (i) is in existence for less than 20 consecutive days after it first
arises or is being Properly Contested and (ii) is at all times junior in priority to any Liens in favor of Agent; (f) mechanics’, workers’, materialmen’s, carriers, laborers, landlords or suppliers, or other like Liens
arising by operation of law in the Ordinary Course of Business with respect to obligations that are not delinquent or that are being Properly Contested; (g) Liens placed upon fixed assets hereafter acquired to secure a portion of the purchase
price thereof or the interests of lessors under Capital Leases, provided that (i) any such lien shall not encumber any other property of the applicable Credit Party and (ii) the aggregate amount of Indebtedness secured by such Liens
incurred as a result of such purchases during any fiscal year shall not exceed the amount provided for in Section 7.6; (h) the interests of lessors under operating leases and non-exclusive licensors under license agreements that do
not materially interfere with or impair the use of the assets or rights of the Credit Parties or their Subsidiaries subject to such leases or license agreements, (i) 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, (j) non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the Ordinary Course of Business, (k) Liens
securing Refinancing Indebtedness permitted hereunder that are replacements of Permitted Encumbrances securing Indebtedness permitted hereunder existing on the Closing Date, so long as such replacement Liens only encumber those assets that secured
the original Indebtedness, (l) rights of setoff or, bankers’ liens and other Liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit
accounts or the provision of services described in the definition of Bank Products in each case in the Ordinary Course of Business, (m) 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 expressly permitted hereby, (n) Liens in favor of customs and revenue authorities arising as a matter of law in the Ordinary Course of Business to secure payment of customs duties
in connection with the importation of goods, (o) Liens on assets of a Person (and its Subsidiaries) existing at the time such Person (and its Subsidiaries) is acquired by a Credit Party or any of its Subsidiaries (and not created in
anticipation or contemplation thereof) in a transaction expressly permitted hereby, (p) customary assignments of insurance or condemnation proceeds provided to landlords (or their mortgagees) pursuant to the terms of any lease; (q) Liens
and rights reserved in any lease for rent granted in the Ordinary Course of Business with respect to rent that is not delinquent, (r) Liens disclosed on Schedule 1.2; provided that such Liens shall secure only those obligations
which they secure on the Closing Date and shall not subsequently apply to any other property or assets of any Credit Party, and (s) other Liens securing amounts not exceeding $250,000 in the aggregate at any one time and which (i) are
incidental to the conduct of a Credit Party’s business or the ownership of its property and assets, (ii) were not incurred in connection with the incurrence of Funded Debt , (iii) do not constitute blanket liens on the assets of any
Credit Party and (iv) do not materially impair the use of such assets in the operation of any Credit Party’s business;. 
 “Person” means any individual, sole proprietorship, partnership, corporation, business trust, joint stock company, trust, unincorporated organization, association, limited liability
company, limited liability 

  
 20 

 
partnership, institution, public benefit corporation, joint venture, entity or Governmental Body (whether federal, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof). 
 “Plan” means any employee benefit plan within the meaning of
Section 3(3) of ERISA (including a Pension Benefit Plan but excluding any Multiemployer Plan), maintained for employees of any Credit Party or any member of the Controlled Group or any such Plan to which any Credit Party or any member of the
Controlled Group is required to contribute on behalf of any of its employees. 
 “Pledge Agreement” means any
Pledge Agreement executed by any Credit Party in favor of Agent. 
 “PNC” has the meaning set forth in the
preamble to this Agreement and shall extend to all of its successors and assigns. 
 “Pro Forma Balance Sheet”
has the meaning set forth in Section 5.5(a). 
 “Pro Forma Financial Statements” has the meaning
set forth in Section 5.5(b). 
 “Projections” has the meaning set forth in
Section 5.5(b). 
 “Properly Contested” means, in the case of any Indebtedness or Lien, as
applicable, of any Person (including any taxes) that is not paid as and when due or payable by reason of such Person’s bona fide dispute concerning its liability to pay same or concerning the amount thereof: (a) such Indebtedness, or Lien,
as applicable, is being properly contested in good faith by appropriate proceedings promptly instituted and diligently conducted; (b) such Person has established appropriate reserves as shall be required in conformity with GAAP; (c) the
non-payment of such Indebtedness will not have a Material Adverse Effect and will not result in the forfeiture of any assets of such Person; (d) no Lien is imposed upon any of such Person’s assets with respect to such Indebtedness unless
such Lien is at all times junior and subordinate in priority to the Liens in favor of Agent (except only with respect to property taxes that have priority as a matter of applicable state law) and enforcement of such Lien is stayed during the period
prior to the final resolution or disposition of such dispute; (e) if such Indebtedness or Lien, as applicable, results from, or is determined by the entry, rendition or issuance against a Person or any of its assets of a judgment, writ, order
or decree, enforcement of such judgment, writ, order or decree is stayed pending a timely appeal or other judicial review; and (f) if such contest is abandoned, settled or determined adversely (in whole or in part) to such Person, such Person
forthwith pays such Indebtedness and all penalties, interest and other amounts due in connection therewith. 

“Purchasing CLO” has the meaning set forth in Section 16.3(d). 

“Purchasing Lender” has the meaning set forth in Section 16.3(c). 

“RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et seq., as same may be
amended from time to time. 
 “Real Property” means all of each Credit Party’s right, title and interest
in and to the owned and leased premises identified on Schedule 4.19 or which is hereafter owned or leased by any Credit Party. 
 “Receivables” means and includes, as to any Person, all of such Person’s accounts, contract rights, instruments (including those evidencing indebtedness owed to such Person by its
Affiliates), 

  
 21 

 
documents, chattel paper (including electronic chattel paper), General Intangibles relating to accounts, drafts and acceptances, credit card receivables and all other forms of obligations owing
to such Person arising out of or in connection with the sale or lease of Inventory or the rendition of services, all supporting obligations, guarantees and other security therefor, whether secured or unsecured, now existing or hereafter created, and
whether or not specifically sold or assigned to Agent hereunder. 
 “Receivables Advance Rate” has the meaning
set forth in Section 2.1(a)(y)(i). 
 “Refinancing Indebtedness” means refinancings, renewals,
replacements, or extensions of Funded Debt so long as: (a) such refinancings, renewals, replacements or extensions do not result in an increase in the principal amount (including the amount of unfunded commitments with respect thereto) of the
Funded Debt so refinanced, renewed, replaced or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and (b) such refinancings, renewals, replacements or extensions do not result
in a shortening of the average weighted maturity (measured as of the refinancing, renewal, or extension) of the Funded Debt so refinanced, renewed, replaced or extended. 
 “Register” has the meaning set forth in Section 16.3(e). 
 “Regulations” shall have the meaning set forth in Section 3.11(a). 
 “Reimbursement Obligation” has the meaning set forth in Section 2.11(b). 
 “Release” has the meaning set forth in Section 5.7(c)(i). 
 “Reportable Event” means a reportable event described in Section 4043(c) of ERISA or the regulations promulgated thereunder for which the thirty (30) day notice period has not
been waived. 
 “Required Lenders” means Lenders holding at least fifty one percent (51%) of the Advances
and, if no Advances are outstanding, means Lenders holding fifty one percent (51%) of the Commitment Percentages; provided, however, that for purposes of this definition only, a Defaulting Lender will be deemed not to be a Lender
and not to have either Advances outstanding or a Commitment Percentage. 
 “Reserve Percentage” means as of any
day the maximum percentage in effect on such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve requirements)
applicable to members of the Federal Reserve system with respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”. 
 “Reserves” means reserves against the Formula Amount, including the Dilution Reserve, established and adjusted by Agent from time to time in its Permitted Discretion. 

“Revolving Advances” means Advances made other than Letters of Credit. 

“Revolving Credit Notes” means, collectively, the promissory notes referred to in Section 2.1(a).

 “Revolving Interest Rate” means an interest rate per annum equal to (a) the sum of the Alternate
Base Rate, plus the Applicable Margin with respect to Domestic Rate Loans or (b) the sum of the Eurodollar Rate, plus the Applicable Margin with respect to Eurodollar Rate Loans. 

  
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 “SEC” means the Securities and Exchange Commission or any successor
thereto. 
 “Section 20 Subsidiary” means the Subsidiary of the bank holding company controlling PNC, which
Subsidiary has been granted authority by the Federal Reserve Board to underwrite and deal in certain Ineligible Securities. 

“Secured Parties” means, collectively, Agent, each Issuer, and Lenders. 

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

“Settlement Date” means the Closing Date and thereafter Wednesday or Thursday of each week or more frequently if Agent
deems appropriate unless such day is not a Business Day in which case it shall be the next succeeding Business Day. 

“Subsidiary” of any Person means a corporation or other entity of whose Equity Interests having ordinary voting power
(other than Equity Interests having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation, or other Persons performing similar functions for such entity, are owned, directly or
indirectly, by such Person. 
 “Subsidiary Stock” means all of the issued and outstanding Equity Interests of
any Subsidiary owned by any Credit Party. 
 “Tangible Net Worth” means, at a particular date, (a) the
aggregate amount of all assets of Borrowers on a Consolidated Basis as may be properly classified as such in accordance with GAAP consistently applied excluding such other assets as are properly classified as “intangible assets” under
GAAP, less (b) the aggregate amount of all liabilities of Borrowers on a Consolidated Basis. 

“Term” has the meaning set forth in Section 13.1. 

“Termination Event” means (i) a Reportable Event with respect to any Pension Benefit Plan; (ii) the withdrawal
of any Credit Party or any member of the Controlled Group from a Multiple Employer Plan during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice
of intent to terminate a Pension Benefit Plan in a distress termination described in Section 4041(c) of ERISA; (iv) the institution by the PBGC of proceedings to terminate a Pension Benefit Plan; (v) any event or condition which could
reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Benefit Plan of any Credit Party or any member of the Controlled Group; (vi) the
determination that any Multiemployer Plan is in endangered or critical status within the meaning of Section 432 of the Code or Section 305 of ERISA; or (vii) the partial or complete withdrawal within the meaning of Sections 4203 and
4205 of ERISA, of any Credit Party or any member of the Controlled Group from a Multiemployer Plan. 
 “Toxic
Substance” means and includes any material present on, at, under or from the Real Property or the Leasehold Interests that has been shown to have significant adverse effect on human health or that is subject to regulation under the Toxic
Substances Control Act (TSCA), 15 U.S.C. §§ 2601, et seq., or any other Applicable Law now in force or hereafter enacted relating to toxic substances. “Toxic Substance” includes but is not limited to asbestos,
polychlorinated biphenyls (PCBs) and lead-based paints. 

  
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 “Trademark Security Agreement” means the Trademark Security Agreement,
dated as of the Closing Date, between the Credit Parties and Agent. 
 “Trading with the Enemy Act” means the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any enabling legislation or executive order relating thereto. 

“Transactions” has the meaning set forth in Section 5.5(a). 

“Transferee” has the meaning set forth in Section 16.3(d). 

“Undrawn Availability” at a particular date means Availability, minus the sum of (a) all amounts due and
owing to any Credit Party’s trade creditors that are outstanding beyond normal trade terms, (b) fees and expenses for which the Credit Parties are liable but which have not been paid or charged to Borrowers’ Account, and (c) all
due but unpaid taxes of the Credit Parties. 
 “Unfinanced Capital Expenditures” shall mean all Capital
Expenditures of Borrowers on a Consolidated Basis other than those made utilizing financing provided by the applicable seller or third party lenders. For the avoidance of doubt, Capital Expenditures made by Borrowers and their Subsidiaries utilizing
Revolving Advances shall be deemed Unfinanced Capital Expenditures. 
 “Uniform Commercial Code” has the
meaning set forth in Section 1.3. 
 “USA PATRIOT Act” means the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced. 

“Week” means the time period commencing with the opening of business on a Wednesday and ending on the end of business
the following Tuesday. 
 “Withholding Certificate” has the meaning set forth in Section 3.11(a).

 1.3 Uniform Commercial Code Terms. All terms used herein and defined in the Uniform Commercial Code as adopted
in the State of New York from time to time (the “Uniform Commercial Code”) have the respective meanings given therein unless otherwise defined herein. Without limiting the foregoing, the terms “accessions”,
“accounts”, “chattel paper”, “commercial tort claims”, “commodities accounts”, “commodities contracts”, “documents”, “deposit accounts”, “electronic chattel paper”,
“equipment”, “fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”, “investment property”, “letter-of-credit rights”, “payment intangibles”,
“proceeds”, “securities”, “securities accounts”, “securities entitlements”, “supporting obligations” and “software”, as and when used in the description of Collateral (and related
underlying definitions) have the meanings given to such terms in Articles 8 or 9 of the Uniform Commercial Code. To the extent the definition of any category or type of collateral is expanded by any amendment, modification or revision to the
Uniform Commercial Code, such expanded definition will apply automatically as of the date of such amendment, modification or revision. 
 1.4 Certain Matters of Construction. The terms “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not
to any particular section, paragraph or subdivision. All references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement. Any pronoun used shall
be deemed to cover all genders. Wherever appropriate in the context, terms used herein in the singular also 

  
 24 

 
include the plural and vice versa. All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations. Unless otherwise provided,
all references to any instruments or agreements to which Agent is a party, including references to any of the Loan Documents, shall include any and all modifications or amendments thereto or restatements thereof and any and all extensions or
renewals thereof. All references herein to the time of day means the time in New York, New York. Whenever the words “including” or “include” shall be used, such words shall be understood to mean “including, without
limitation” or “include, without limitation”. A Default or Event of Default shall be deemed to exist at all times during the period commencing on the date that such Default or Event of Default occurs to the date on which such Default
or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default only, is cured within any period of cure expressly provided for in this Agreement; and an Event of Default shall “continue” or be
“continuing” until such Event of Default has been waived in writing by the Required Lenders. Any Lien referred to in this Agreement or any of the other Loan Documents as having been created in favor of Agent, any agreement entered into by
Agent pursuant to this Agreement or any of the other Loan Documents, any payment made by or to or funds received by Agent pursuant to or as contemplated by this Agreement or any of the other Loan Documents, or any act taken or omitted to be taken by
Agent, shall, unless otherwise expressly provided, be created, entered into, made or received, or taken or omitted, for the benefit or account of Agent and Lenders. Wherever the phrase “to the best of the Credit Parties’ knowledge” or
words of similar import relating to the knowledge or the awareness of any Credit Party are used in this Agreement or other Loan Documents, such phrase means and refer to (a) the actual knowledge of a senior officer of any Credit Party or
(b) the knowledge that a senior officer would have obtained if he had engaged in good faith and diligent performance of his duties, including the making of such reasonably specific inquiries as may be necessary of the employees or agents of
such Credit Party and a good faith attempt to ascertain the existence or accuracy of the matter to which such phrase relates. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by
any of such covenants, the fact that it would be permitted by an exception to, or otherwise within the limitations of, another covenant shall not avoid the occurrence of a default if such action is taken or condition exists. In addition, all
representations and warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning the same or similar
subject matter is correct or is not breached will not affect the incorrectness of a breach of a representation or warranty hereunder. 
 ARTICLE II 
 ADVANCES, PAYMENTS 

2.1 Revolving Advances. 
 (a) Amount of Revolving Advances. Subject to the terms and conditions set forth in this Agreement, including Section 2.1(b), each Lender, severally and not jointly, will make Revolving
Advances to Borrowers in aggregate amounts outstanding at any time equal to such Lender’s Commitment Percentage of the lesser of (x) the applicable Maximum Revolving Advance Amount at such time, less the aggregate Maximum Undrawn Amount of
all outstanding Letters of Credit or (y) an amount equal to the sum of: 
 (i) up to 85%, subject to the
provisions of Section 2.1(b) (“Receivables Advance Rate”), of Eligible Receivables, plus 
 (ii) up to the lesser of (A) 60%, subject to the provisions of Section 2.1(b) hereof, of the value of the Eligible Inventory (“Inventory Advance Rate” and together

  
 25 

 
with the Receivables Advance Rate, collectively, the “Advance Rates”), (B) 85% of the appraised net orderly liquidation value of Eligible Inventory (as evidenced by an
Inventory appraisal satisfactory to Agent in its discretion, reasonably exercised) or (C) the applicable Inventory Sublimit (provided, that (A) the amount of Eligible ATS Inventory included in this clause (ii) shall not exceed
$7,000,000 and (B) the amount of Eligible Work In Process Inventory included in this clause (ii) shall not exceed $1,000,000), plus 
 (iii) with respect to each fiscal year of the Borrowers, during the respective period set forth below for such fiscal year, the amount applicable to such period 

 

					
	 Period
	  	 Amount
	 
	 March
	  	$	6,000,000	  
	 April
	  	$	10,000,000	  
	 May
	  	$	12,000,000	  
	 June 1st through and including July 15th
	  	$	6,000,000	  

 minus 

(iv) the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit, minus 

(v) Reserves. 
 The amount derived from the sum of (x) Sections 2.1(a)(y)(i), (ii) and (iii) minus (y) Section 2.1 (a)(y)(iv) and (v) at any time and from time
to time shall be referred to as the “Formula Amount”. The Revolving Advances shall be evidenced by one or more secured promissory notes (collectively, the “Revolving Credit Notes”) substantially in the form attached
hereto as Exhibit 2.1(a). 
 (b) Discretionary Rights. The Advance Rates may be increased or decreased by Agent at
any time and from time to time in its Permitted Discretion, reasonably exercised. Each Borrower consents to any such increases or decreases and acknowledges that decreasing the Advance Rates or increasing or imposing Reserves may limit or restrict
Advances requested by Borrowing Agent. The rights of Agent under this subsection are subject to the provisions of Section 16.2(b). 
 2.2 Procedure for Revolving Advances Borrowing. 
 (a) Borrowing
Agent on behalf of any Borrower may notify Agent prior to 10:00 a.m. on a Business Day of a Borrower’s request to incur, on that day, a Revolving Advance hereunder (without requirement as to any minimum borrowing amount in the case of Domestic
Rate Loans and subject to the minimum borrowing requirements of clause (b) below in the case of Eurodollar Rate Loans). Should any amount required to be paid as interest hereunder, or as fees or other charges under this Agreement or any other
agreement with Agent or Lenders, or with respect to any other Obligation, become due, same shall be deemed a request for a Revolving Advance maintained as a Domestic Rate 

  
 26 

 
Loan as of the date such payment is due, in the amount required to pay in full such interest, fee, charge or Obligation under this Agreement or any other agreement with Agent or Lenders, and such
request shall be irrevocable. 
 (b) Notwithstanding the provisions of subsection (a) above, in the event any Borrower
desires to obtain a Eurodollar Rate Loan, Borrowing Agent shall give Agent written notice by no later than 10:00 a.m. on the day that is three (3) Business Days prior to the date such Eurodollar Rate Loan is to be borrowed, specifying
(i) the date of the proposed borrowing (which shall be a Business Day), (ii) the type of borrowing and the amount on the date of such Advance to be borrowed, which amount shall be in an aggregate principal amount that is not less than
$1,000,000 and integral multiples of $500,000 in excess thereof, and (iii) the duration of the first Interest Period therefor. Interest Periods for Eurodollar Rate Loans shall be for one, two or three months; provided, that if an
Interest Period would end on a day that is not a Business Day, it shall end on the next succeeding Business Day unless such day falls in the next succeeding calendar month in which case the Interest Period shall end on the next preceding Business
Day. No Lender shall be required to make available a Eurodollar Rate Loan to any Borrower during the continuance of a Default or Event of Default. After giving effect to each requested Eurodollar Rate Loan, including those that are converted from a
Domestic Rate Loan under Section 2.2(d), there shall not be outstanding more than five (5) Eurodollar Rate Loans, in the aggregate. 
 (c) Each Interest Period of a Eurodollar Rate Loan shall commence on the date such Eurodollar Rate Loan is made and shall end on such date as Borrowing Agent may elect as set forth in
Section 2.2(b)(iii); provided that the exact length of each Interest Period shall be determined in accordance with the practice of the interbank market for offshore Dollar deposits and no Interest Period shall end after the last
day of the Term. 
 Borrowing Agent shall elect the initial Interest Period applicable to a Eurodollar Rate Loan by its notice
of borrowing given to Agent pursuant to Section 2.2(b) or by its notice of conversion given to Agent pursuant to Section 2.2(d), as the case may be. Borrowing Agent shall elect the duration of each succeeding Interest Period
by giving irrevocable written notice to Agent of such duration not later than 10:00 a.m. on the day that is three (3) Business Days prior to the last day of the then current Interest Period applicable to such Eurodollar Rate Loan. If Agent does
not receive timely notice of the Interest Period elected by Borrowing Agent, Borrowing Agent shall be deemed to have elected to convert to a Domestic Rate Loan subject to Section 2.2(d). 

(d) So long as no Event of Default has occurred and is continuing, Borrowing Agent may, on the last Business Day of the then current
Interest Period applicable to any outstanding Eurodollar Rate Loan, or on any Business Day with respect to Domestic Rate Loans, convert any such loan into a loan of another type in the same aggregate principal amount; provided that any
conversion of a Eurodollar Rate Loan shall be made only on the last Business Day of the then current Interest Period applicable to such Eurodollar Rate Loan. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing,
unless Agent permits, at the direction of the Required Lenders, a continuation of Eurodollar Rate Loans, any Eurodollar Rate Loans shall be converted into Domestic Rate Loans on the last Business Day of the then current Interest Period applicable to
such Eurodollar Rate Loans. If Borrowing Agent desires to convert a loan, Borrowing Agent shall give Agent written notice by no later than 10:00 a.m. (i) on the day that is three (3) Business Days’ prior to the date on which such
conversion is to occur with respect to a conversion from a Domestic Rate Loan to a Eurodollar Rate Loan, or (ii) on the day that is one (1) Business Day prior to the date on which such conversion is to occur with respect to a conversion
from a Eurodollar Rate Loan to a Domestic Rate Loan, specifying, in each case, the date of such conversion, the loans to be converted and if the conversion is from a Domestic Rate Loan to any other type of loan, the duration of the first Interest
Period therefor. 

  
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 (e) At its option and upon written notice given prior to 10:00 a.m. (New York time) at least
three (3) Business Days’ prior to the date of such prepayment, any Borrower may prepay the Eurodollar Rate Loans in whole at any time or in part from time to time with accrued interest on the principal being prepaid to the date of such
repayment. Such Borrower shall specify the date of prepayment of Advances that are Eurodollar Rate Loans and the amount of such prepayment. In the event that any prepayment of a Eurodollar Rate Loan is required or permitted on a date other than the
last Business Day of the then current Interest Period with respect thereto, such Borrower shall indemnify Agent and Lenders therefor in accordance with Section 2.2(f). 

(f) Each Borrower shall indemnify Agent and Lenders and hold Agent and Lenders harmless from and against any and all losses (other than
any loss of anticipated profits) or expenses that Agent and Lenders may sustain or incur as a consequence of any prepayment, conversion of or any default by any Borrower in the payment of the principal of or interest on any Eurodollar Rate Loan or
failure by any Borrower to complete a borrowing of, a prepayment of or conversion of or to a Eurodollar Rate Loan after notice thereof has been given, including any interest payable by Agent or Lenders to lenders of funds obtained by it in order to
make or maintain its Eurodollar Rate Loans hereunder. A certificate as to any additional amounts payable pursuant to the foregoing sentence submitted by Agent or any Lender to Borrowing Agent shall be conclusive absent manifest error. 

(g) Notwithstanding any other provision hereof, if any Applicable Law, treaty, regulation or directive, or any change therein or in the
interpretation or application thereof, shall make it unlawful for any Lender (for purposes of this subsection (g), the term “Lender” shall include any Lender and the office or branch where any Lender or any corporation or bank controlling
such Lender makes or maintains any Eurodollar Rate Loans) to make or maintain its Eurodollar Rate Loans, the obligation of Lenders to make Eurodollar Rate Loans hereunder shall forthwith be cancelled and Borrowers shall, if any affected Eurodollar
Rate Loans are then outstanding, promptly upon request from Agent, either pay all such affected Eurodollar Rate Loans or convert such affected Eurodollar Rate Loans into loans of another type (regardless of whether a Default or Event of Default has
occurred and is continuing). If any such payment or conversion of any Eurodollar Rate Loan is made on a day that is not the last day of the Interest Period applicable to such Eurodollar Rate Loan, Borrowers shall pay Agent, upon Agent’s
request, such amount or amounts as may be necessary to compensate Lenders for any loss (other than any loss of anticipated profits) or expense sustained or incurred by Lenders in respect of such Eurodollar Rate Loan as a result of such payment or
conversion, including any interest or other amounts payable by Lenders to lenders of funds obtained by Lenders in order to make or maintain such Eurodollar Rate Loan. A certificate as to any additional amounts payable pursuant to the foregoing
sentence submitted by Lenders to Borrowing Agent shall be conclusive absent manifest error. Notwithstanding anything to the contrary contained herein, neither Agent nor Lender is required to acquire eurodollar deposits to fund or otherwise match
fund any Eurodollar Rate Loans. 
 2.3 Disbursement of Advance Proceeds. All Advances shall be disbursed from
whichever office or other place Agent may designate from time to time and, together with any and all other Obligations of Borrowers to Agent or Lenders, shall be charged to Borrowers’ Account on Agent’s books. During the Term, Borrowers
may use the Revolving Advances by borrowing, prepaying and reborrowing, all in accordance with the terms and conditions hereof. The proceeds of each Revolving Advance requested by Borrowing Agent on behalf of any Borrower or deemed to have been
requested by any Borrower under Section 2.2(a) hereof shall, with respect to requested Revolving Advances to the extent Lenders make such Revolving Advances, be made available to the applicable Borrower on the day so requested by way of
credit to such Borrower’s operating account at PNC, or such other bank as Borrowing Agent may designate following notification to Agent, in immediately available federal funds or other immediately available funds or, with respect to Revolving
Advances deemed to have been requested by any Borrower, be disbursed to Agent to be applied to the outstanding Obligations giving rise to such deemed request. 

  
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 2.4 Maximum Advances. The aggregate balance of Revolving Advances and Letters
of Credit outstanding at any time shall not cause Availability to be less than zero. 
 2.5 Repayment of Advances.

 (a) The Revolving Advances shall be due and payable in full on the last day of the Term subject to earlier prepayment as
herein provided. 
 (b) Borrowers recognize that the amounts evidenced by checks, notes, drafts or any other items of payment
relating to and/or proceeds of Collateral may not be collectible by Agent on the date received. In consideration of Agent’s agreement to conditionally credit Borrower’s Account as of the next Business Day following Agent’s receipt of
those items of payment, Borrower agrees that, in computing the charges under this Agreement, all items of payment shall be deemed applied by Agent on account of the Obligations one (1) Business Day after (i) the Business Day following the
Agent’s receipt of such payments via wire transfer or electronic depository check or (ii) in the case of payments received by Agent in any other form, the Business Day such payment constitutes good funds in Agent’s account. Agent is
not, however, required to credit Borrower’s Account for the amount of any item of payment which is unsatisfactory to Agent and Agent may charge Borrower’s Account for the amount of any item of payment which is returned to Agent unpaid.

 (c) All payments of principal, interest and other amounts payable hereunder, or under any of the Loan Documents shall be made
to Agent at the Payment Office not later than 1:00 P.M. (New York time) on the due date therefor in lawful money of the United States of America in federal funds or other funds immediately available to Agent. Agent has the right to effectuate
payment on any and all Obligations due and owing hereunder by charging Borrowers’ Account or by making Advances as provided in Section 2.2. 
 (d) Borrowers shall pay principal, interest, and all other amounts payable hereunder, or under any related agreement, without any deduction whatsoever, including any deduction for any setoff or
counterclaim. 
 2.6 Repayment of Excess Advances. The aggregate balance of Advances outstanding at any time in
excess of the maximum amount of Advances permitted hereunder shall be immediately due and payable without the necessity of any demand, at the Payment Office, whether or not a Default or Event of Default has occurred, including, as a result of a
change in the applicable Maximum Revolving Advance Amount. 
 2.7 Statement of Account. Agent shall maintain, in
accordance with its customary procedures, a loan account (“Borrowers’ Account”) in the name of Borrowers in which shall be recorded the date and amount of each Advance made by Agent and the date and amount of each payment in
respect thereof; provided, however, that the failure by Agent to record the date and amount of any Advance shall not adversely affect Agent or any Lender. Each month, Agent shall send to Borrowing Agent a statement showing the
accounting for the Advances made, payments made or credited in respect thereof, and other transactions between Agent and Borrowers during such month. The monthly statements shall be deemed correct and binding upon Borrowers in the absence of
manifest error and shall constitute an account stated between Lenders and Borrowers unless Agent receives a written statement of Borrowers’ specific exceptions thereto within thirty (30) days after such statement is received by Borrowing
Agent. The records of Agent with respect to the loan account shall be conclusive evidence absent manifest error of the amounts of Advances and other charges thereto and of payments applicable thereto. 

  
 29 

 2.8 Letters of Credit. Subject to the terms and conditions hereof, Agent shall
issue or cause the issuance of standby Letters of Credit (“Letters of Credit”) for the account of any Borrower; provided, however, that Agent will not be required to issue or cause to be issued any Letters of Credit to
the extent that the issuance thereof would then cause Availability to be less than zero. The Maximum Undrawn Amount of outstanding Letters of Credit shall not exceed in the aggregate at any time the Letter of Credit Sublimit. All disbursements or
payments related to Letters of Credit shall be deemed to be Domestic Rate Loans consisting of Revolving Advances and shall bear interest at the Revolving Interest Rate for Domestic Rate Loans; Letters of Credit that have not been drawn upon shall
not bear interest. 
 2.9 Issuance of Letters of Credit. 

(a) Borrowing Agent, on behalf of Borrowers, may request Agent to issue or cause the issuance of a Letter of Credit by delivering to
Agent at the Payment Office, prior to 10:00 a.m. (New York time), at least five (5) Business Days’ prior (or such lesser notice as Agent may agree) to the proposed date of issuance, Agent’s form of Letter of Credit Application (the
“Letter of Credit Application”) completed to the reasonable satisfaction of Agent; and, such other certificates, documents and other papers and information as Agent may reasonably request. Borrowing Agent, on behalf of Borrowers,
also has the right to give instructions and make agreements with respect to any application, any applicable letter of credit and security agreement, any applicable letter of credit reimbursement agreement and/or any other applicable agreement, any
letter of credit and the disposition of documents, disposition of any unutilized funds, and to agree with Agent upon any amendment, extension or renewal of any Letter of Credit. 

(b) Each Letter of Credit shall, among other things, (i) provide for the payment of sight drafts, other written demands for payment,
or acceptances of usance drafts when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein and (ii) have an expiry date not later than twenty-four (24) months after such
Letter of Credit’s date of issuance and in no event later than the last day of the Term. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits as most recently published by the
International Chamber of Commerce at the time a Letter of Credit is issued (the “UCP”) or the International Standby Practices (ISP98 International Chamber of Commerce Publication Number 590) (the “ISP98
Rules”)), and any subsequent revision thereof at the time a standby Letter of Credit is issued, as determined by Agent, and each trade Letter of Credit shall be subject to the UCP. 

(c) Agent shall use its reasonable efforts to notify Lenders of the request by Borrowing Agent for a Letter of Credit hereunder.

 2.10 Requirements For Issuance of Letters of Credit. 

(a) Borrowing Agent shall authorize and direct any Issuer to name the applicable Borrower as the “Applicant” or “Account
Party” of each Letter of Credit. If Agent is not the Issuer of any Letter of Credit, Borrowing Agent shall authorize and direct the Issuer to deliver to Agent all instruments, documents, and other writings and property received by the Issuer
pursuant to the Letter of Credit and to accept and rely upon Agent’s instructions and agreements with respect to all matters arising in connection with the Letter of Credit, the application therefor or any acceptance therefor. 

  
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 (b) In connection with all Letters of Credit issued or caused to be issued by Agent under
this Agreement, each Borrower hereby appoints Agent, or its designee, as its attorney, with full power and authority if and only if an Event of Default has occurred and is continuing, (i) to sign and/or endorse such Borrower’s name upon
any warehouse or other receipts, letter of credit applications and acceptances, (ii) to sign such Borrower’s name on bills of lading; (iii) to clear Inventory through the United States of America Customs Department
(“Customs”) in the name of such Borrower or Agent or Agent’s designee, and to sign and deliver to Customs officials powers of attorney in the name of such Borrower for such purpose; and (iv) to complete in such
Borrower’s name or Agent’s, or in the name of Agent’s designee, any order, sale or transaction, obtain the necessary documents in connection therewith, and collect the proceeds thereof. Neither Agent nor its attorneys, officers,
directors, Affiliates, employees or agents will be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law, except for Agent’s or its attorneys’, officers’, directors’, Affiliates’,
employees’ or agents’ gross negligence or willful misconduct as determined in a final, non-appealable order by a court of competent jurisdiction. This power, being coupled with an interest, is irrevocable as long as any Letters of Credit
remain outstanding. 
 2.11 Disbursements, Reimbursement. 

(a) Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from Agent a participation in such Letter of Credit and each drawing thereunder in an amount equal to such Lender’s Commitment Percentage of the Maximum Face Amount of such Letter of Credit and the amount of such drawing,
respectively. 
 (b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee
thereof, Agent will promptly notify Borrowing Agent. Provided that Borrowing Agent has received such notice, Borrowers shall reimburse (such obligation to reimburse Agent shall sometimes be referred to as a “Reimbursement
Obligation”) Agent prior to 12:00 Noon, New York time on each date that an amount is paid by Agent under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount so paid by Agent. In the
event Borrowers fail to reimburse Agent for the full amount of any drawing under any Letter of Credit by 12:00 Noon, New York time, on the Drawing Date, Agent will promptly notify each Lender thereof, and Borrowers shall be deemed to have requested
that a Domestic Rate Loan be made by Lenders to be disbursed on the Drawing Date under such Letter of Credit, to the extent that Availability would be greater than zero after giving effect to such Revolving Advance and subject to
Section 8.2. Any notice given by Agent pursuant to this Section 2.11(b) may be oral if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice. 
 (c) Each Lender shall upon any notice pursuant to Section 2.11(b) make available
to Agent an amount in immediately available funds equal to its Commitment Percentage of the amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.11(d)) each be deemed to have made a Domestic Rate Loan to
Borrowers in that amount. If any Lender so notified fails to make available to Agent the amount of such Lender’s Commitment Percentage of such amount by no later than 2:00 p.m., New York time on the Drawing Date, then interest shall accrue on
such Lender’s obligation to make such payment, from the Drawing Date to the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds Effective Rate during the first three days following the
Drawing Date and (ii) at a rate per annum equal to the Revolving Interest Rate applicable to Domestic Rate Loans on and after the fourth day following the Drawing Date. Agent will promptly give notice of the occurrence of the Drawing
Date, but failure of Agent to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment on such date shall not relieve such Lender 

  
 31 

 
from its obligation under this Section 2.11(c), provided that such Lender shall not be obligated to pay interest as provided in Sections 2.11(c)(i) and
(ii) until and commencing from the date of receipt of notice from Agent of a drawing. 
 (d) With respect to any
unreimbursed drawing that is not converted into a Domestic Rate Loan to Borrowers in whole or in part as contemplated by Section 2.11(b), because of Borrowers’ failure to satisfy the conditions set forth in Section 8.2
(other than any notice requirements) or for any other reason, Borrowers shall be deemed to have incurred from Agent a borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing
shall be due and payable on demand (together with interest) and shall bear interest at a rate per annum equal to the Revolving Interest Rate applicable to Domestic Rate Loans. Each Lender’s payment to Agent pursuant to
Section 2.11(c) shall be deemed to be a payment in respect of its participation in such Letter of Credit Borrowing and shall constitute a “Participation Advance” from such Lender in satisfaction of its Participation
Commitment under this Section 2.11. 
 (e) Each Lender’s Participation Commitment shall continue until the last
to occur of any of the following events: (x) Agent ceases to be obligated to issue or cause to be issued Letters of Credit hereunder; (y) no Letter of Credit issued or created hereunder remains outstanding and uncancelled and (z) all
Persons (other than Borrowers) have been fully reimbursed for all payments made under or relating to Letters of Credit. 

2.12 Repayment of Participation Advances. 
 (a) Upon (and only upon) receipt by Agent for its account of immediately available funds from Borrowers (i) in reimbursement of any payment made by Agent under the Letter of Credit with respect to
which any Lender has made a Participation Advance to Agent, or (ii) in payment of interest on such a payment made by Agent under such a Letter of Credit, Agent will pay to each Lender, in the same funds as those received by Agent, the amount of
such Lender’s Commitment Percentage of such funds, except Agent shall retain the amount of the Commitment Percentage of such funds of any Lender that did not make a Participation Advance in respect of such payment by Agent. 

(b) If Agent is required at any time to return to any Borrower, or to a trustee, receiver, liquidator, custodian, or any official in any
insolvency proceeding, any portion of the payments made by Borrowers to Agent pursuant to Section 2.12(a) in reimbursement of a payment made under the Letter of Credit or interest or fee thereon, each Lender shall, on demand of Agent,
forthwith return to Agent the amount of its Commitment Percentage of any amounts so returned by Agent plus interest at the Federal Funds Effective Rate. 
 2.13 Documentation. Each Borrower agrees to be bound by the terms of the Letter of Credit Application and by Agent’s interpretations of any Letter of Credit issued on behalf of such
Borrower and by Agent’s written regulations and customary practices relating to letters of credit, though Agent’s interpretations may be different from such Borrower’s own. In the event of a conflict between the Letter of Credit
Application and this Agreement, this Agreement shall govern. It is understood and agreed that, except in the case of gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment),
Agent shall not be liable for any error, negligence and/or mistakes, whether of omission or commission, in following Borrowing Agent’s or any Borrower’s instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto. 

  
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 2.14 Determination to Honor Drawing Request. In determining whether to honor
any request for drawing under any Letter of Credit by the beneficiary thereof, Agent shall be responsible only to determine that the documents and certificates required to be delivered under such Letter of Credit have been delivered and that they
comply on their face with the requirements of such Letter of Credit and that any other drawing condition appearing on the face of such Letter of Credit has been satisfied in the manner so set forth. 

2.15 Nature of Participation and Reimbursement Obligations. Each Lender’s obligation in accordance with this Agreement
to make the Revolving Advances or Participation Advances as a result of a drawing under a Letter of Credit, and the obligations of Borrowers to reimburse Agent upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable,
and shall be performed strictly in accordance with the terms of this Section 2.15 under all circumstances, including the following circumstances: 
 (i) any set-off, counterclaim, recoupment, defense or other right that such Lender may have against Agent, any Borrower or any other Person for any reason whatsoever; 

(ii) the failure of any Borrower or any other Person to comply, in connection with a Letter of Credit Borrowing, with the
conditions set forth in this Agreement for the making of a Revolving Advance, it being acknowledged that such conditions are not required for the making of a Letter of Credit Borrowing and the obligation of Lenders to make Participation Advances
under Section 2.11; 
 (iii) any lack of validity or enforceability of any Letter of Credit;

 (iv) any claim of breach of warranty that might be made by Borrower or any Secured Party against the
beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment, counterclaim, cross claim, defense or other right that any Borrower or any Secured Party may have at any time against a beneficiary, any successor beneficiary or
any transferee of any Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), any Secured Party or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any
unrelated transaction (including any underlying transaction between any Borrower or any Subsidiaries of such Borrower and the beneficiary for which any Letter of Credit was procured); 

(v) the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or
the form of or lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in
connection with any Letter of Credit, or the transport of any property or provisions of services relating to a Letter of Credit, in each case even if Agent or any of Agent’s Affiliates has been notified thereof; 

(vi) payment by Agent under any Letter of Credit against presentation of a demand, draft or certificate or other document
that does not comply with the terms of such Letter of Credit; 

  
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 (vii) the solvency of, or any acts or omissions by, any beneficiary of any
Letter of Credit, or any other Person having a role in any transaction or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of any property or services relating to a
Letter of Credit; 
 (viii) any failure by Agent or any of Agent’s Affiliates to issue any Letter of Credit
in the form requested by Borrowing Agent, unless Agent has received written notice from Borrowing Agent of such failure within three (3) Business Days after Agent has furnished Borrowing Agent a copy of such Letter of Credit and such error is
material and no drawing has been made thereon prior to receipt of such notice; 
 (ix) any Material Adverse
Effect on any Credit Party; 
 (x) any breach of this Agreement or any other Loan Document by any party thereto;

 (xi) the occurrence or continuance of an insolvency proceeding with respect to any Credit Party; 

(xii) the fact that a Default or Event of Default has occurred and is continuing; 

(xiii) the fact that the Term has expired or this Agreement or the Obligations hereunder have been terminated; and

 (xiv) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

 2.16 Indemnity. In addition to amounts payable as provided in Section 16.5, each Borrower hereby
agrees to protect, indemnify, pay and save harmless Agent and any of Agent’s Affiliates that have issued a Letter of Credit and all other Indemnitees from and against any and all claims, demands, liabilities, damages, taxes, penalties,
interest, judgments, losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel) that Agent or any of Agent’s Affiliates and all other Indemnitees may incur or
be subject to as a consequence, direct or indirect, of the issuance of any Letter of Credit, other than as a result of (A) the gross negligence or willful misconduct of Agent or such Indemnitee as determined by a final and non-appealable
judgment of a court of competent jurisdiction or (b) the wrongful dishonor by Agent or any of Agent’s Affiliates or such Indemnitee of a proper demand for payment made under any Letter of Credit, except if such dishonor resulted from any
Governmental Act. 
 2.17 Liability for Acts and Omissions. As between Borrowers and Agent and Secured Party, each
Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the respective foregoing, Agent shall not be responsible
for: (a) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if Agent has been notified thereof); (b) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter
of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or ineffective for any reason; (c) the failure of the beneficiary of any such Letter of Credit, or any other party to which
such Letter of Credit may be transferred, to comply fully with any conditions required in order 

  
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to draw upon such Letter of Credit or any other claim of any Borrower against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among any Borrower and
any beneficiary of any Letter of Credit or any such transferee; (d) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, facsimile, telegraph, telex or otherwise, whether or not they be in
cipher; (e) errors in interpretation of technical terms; (f) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (g) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (h) any consequences arising from causes beyond the control of Agent, including any Governmental Acts, and none of the
above shall affect or impair, or prevent the vesting of, any of Agent’s, its attorneys’, officers’, directors’, Affiliates’, employees’ or agents’ rights or powers hereunder. Notwithstanding the foregoing, nothing
in the preceding sentence shall relieve Agent from liability for Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment) in connection with actions or omissions
described in such clauses (a) through (h) of the preceding sentence. In no event shall Agent or Agent’s Affiliates be liable to any Borrower for any indirect, consequential, incidental, punitive, exemplary or special damages or
expenses (including attorneys’ fees), or for any damages resulting from any change in the value of any property relating to a Letter of Credit. 
 Without limiting the generality of the foregoing, Agent and each of its Affiliates (i) may rely on any oral or other communication reasonably believed by Agent or such Affiliate to have been
authorized or given by or on behalf of the applicant for a Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms and conditions of the relevant Letter of Credit;
(iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to reimbursement to
the same extent as if such presentation had initially been honored, together with any interest paid by Agent or its Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon
receipt of such statement (even if such statement indicates that a draft or other document is being delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in any way with the
relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on Agent
or its Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each an “Order”) and honor any drawing in
connection with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit fail to conform in any way with such Letter of Credit. 

In furtherance and extension and not in limitation of the specific provisions set forth above, any action taken or omitted by Agent under
or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted without gross negligence (as determined by a court of competent jurisdiction in a final non-appealable judgment),
shall not put Agent under any resulting liability to any Borrower or any Lender. 
 2.18 Additional Payments. Any
sums expended by any Secured Party due to any Borrower’s failure to perform or comply with its obligations under this Agreement or any other Loan Document including any Borrower’s obligations under Sections 4.2, 4.4,
4.12, 4.13, 4.14 and 6.1, may be charged to Borrowers’ Account as a Revolving Advance and added to the Obligations. 

  
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 2.19 Manner of Borrowing and Payment. 

(a) Each borrowing of Revolving Advances shall be advanced according to the applicable Commitment Percentages of Lenders. 

(b) Each payment (including each prepayment) by any Borrower on account of the principal of and interest on the Revolving Advances, shall
be applied to the Revolving Advances pro rata according to the applicable Commitment Percentages of Lenders. Except as expressly provided herein, all payments (including prepayments) to be made by any Borrower on account of principal,
interest and fees shall be made without set off or counterclaim and shall be made to Agent on behalf of Secured Parties to the Payment Office, in each case on or prior to 1:00 P.M., New York time, in Dollars and in immediately available funds.

 (i) Notwithstanding anything to the contrary contained in Sections 2.19(a) and (b) hereof,
commencing with the first Business Day following the Closing Date, each borrowing of Revolving Advances shall be advanced by Agent and each payment by any Borrower on account of Revolving Advances shall be applied first to those Revolving Advances
advanced by Agent. On or before 1:00 P.M., New York time, on each Settlement Date commencing with the first Settlement Date following the Closing Date, Agent and Lenders shall make certain payments as follows: (1) if the aggregate amount of new
Revolving Advances made by Agent during the preceding Week (if any) exceeds the aggregate amount of repayments applied to outstanding Revolving Advances during such preceding Week, then each Lender shall provide Agent with funds in an amount equal
to its applicable Commitment Percentage of the difference between (w) such Revolving Advances and (x) such repayments and (2) if the aggregate amount of repayments applied to outstanding Revolving Advances during such Week exceeds the
aggregate amount of new Revolving Advances made during such Week, then Agent shall provide each Lender with funds in an amount equal to its applicable Commitment Percentage of the difference between (y) such repayments and (z) such
Revolving Advances. 
 (ii) Each Lender shall be entitled to earn interest at the Revolving Interest Rate on
outstanding Advances that it has funded. 
 (iii) Promptly following each Settlement Date, Agent shall submit to
each Lender a certificate with respect to payments received and Advances made during the Week immediately preceding such Settlement Date. Such certificate of Agent shall be conclusive in the absence of manifest error. 

(c) If any Lender or Participant (a “benefited Lender”) shall at any time receive any payment of all or part of its
Advances, or interest thereon, or receive any Collateral in respect thereof (whether voluntarily or involuntarily or by set-off) in a greater proportion than any such payment to and Collateral received by any other Lender, if any, in respect of such
other Lender’s Advances, or interest thereon, and such greater proportionate payment or receipt of Collateral is not expressly permitted hereunder, such benefited Lender shall purchase for cash from the other Lenders a participation in such
portion of each such other Lender’s Advances, or shall provide such other Lender with the benefits of any such Collateral, or the proceeds thereof, as shall be necessary to cause such benefited Lender to share the excess payment or benefits of
such Collateral or proceeds ratably with each of the other Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such benefited Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery, but without interest. Each Lender so purchasing a portion of another Lender’s Advances may exercise all rights of payment (including rights of set-off) with respect
to such portion as fully as if such Lender were the direct holder of such portion. 

  
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 (d) Unless Agent has been notified by telephone, confirmed in writing, by any Lender that
such Lender will not make the amount that would constitute its applicable Commitment Percentage of the Advances available to Agent, Agent may (but shall not be obligated to) assume that such Lender shall make such amount available to Agent on the
next Settlement Date and, in reliance upon such assumption, make available to Borrowers a corresponding amount. Agent will promptly notify Borrowing Agent of its receipt of any such notice from a Lender. If such amount is made available to Agent on
a date after such next Settlement Date, such Lender shall pay to Agent on demand an amount equal to the product of (i) the daily average Federal Funds Rate (computed on the basis of a year of 360 days) during such period as quoted by Agent,
times (ii) such amount, times (iii) the number of days from and including such Settlement Date to the date on which such amount becomes immediately available to Agent. A certificate of Agent submitted to any Lender with respect to any
amounts owing under this paragraph (e) shall be conclusive, in the absence of manifest error. If such amount is not in fact made available to Agent by such Lender within three (3) Business Days after such Settlement Date, Agent shall be
entitled to recover such an amount, with interest thereon at the rate per annum then applicable to such Revolving Advances hereunder, on demand from Borrowers; provided, however, that Agent’s right to such recovery shall
not prejudice or otherwise adversely affect Borrowers’ rights (if any) against such Lender. 
 2.20 Mandatory
Prepayments. 
 (a) Subject to Section 4.3, when any Credit Party sells or otherwise disposes of any Collateral
other than Inventory in the Ordinary Course of Business, Borrowers shall repay the Advances in an amount equal to the net proceeds of such sale (i.e., gross proceeds less the reasonable costs of such sales or other dispositions), such repayments to
be made promptly but in no event more than one (1) Business Day following receipt of such net proceeds, and until the date of payment, such proceeds shall be held in trust for Agent. The foregoing shall not be deemed to be implied consent to
any such sale otherwise prohibited by the terms and conditions hereof. Such repayments shall be applied to the Revolving Advances in such order as Agent may determine, subject to Borrowers’ ability to reborrow Revolving Advances in accordance
with the terms. 
 (b) When any Credit Party receives any Extraordinary Receipts, Borrowers shall repay the Advances in
an amount equal to such Extraordinary Receipts, such repayments to be made promptly but in no event more than one (1) Business Day following receipt thereof, and until the date of repayment, all such amounts shall be held in trust for Agent.
Such repayments will be applied to the Revolving Advances in such order as Agent may determine, subject to Borrowers’ ability to reborrow Revolving Advances in accordance with the terms hereof. 

2.21 Use of Proceeds. 
 (a) Borrowers shall apply the proceeds of Advances to (i) repay in full existing indebtedness owed to Wells Fargo Bank, National Association, (ii) pay fees and expenses relating to this
transaction, and (iii) provide for its working capital and other general corporate needs and reimburse drawings under Letters of Credit. 
 (b) Without limiting the generality of Section 2.21(a), neither any Borrower, any other Credit Party, nor any other Person which may in the future become a Credit Party, intends to use nor
shall they use any portion of the proceeds of the Advances, directly or indirectly, for any purpose in violation of the Trading with the Enemy Act. 

  
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 2.22 Defaulting Lender. 

(a) Notwithstanding anything to the contrary contained herein, in the event any Lender (x) has refused (which refusal constitutes a
breach by such Lender of its obligations under this Agreement) to make available its portion of any Advance or (y) notifies either Agent or Borrowing Agent that it does not intend to make available its portion of any Advance (if the actual
refusal would constitute a breach by such Lender of its obligations under this Agreement) (each, a “Lender Default”), all rights and obligations hereunder of such Lender (a “Defaulting Lender”) as to which a Lender
Default is in effect and of the other parties hereto shall be modified to the extent of the express provisions of this Section 2.22 while such Lender Default remains in effect. 

(b) Advances shall be incurred pro rata from Lenders (the “Non-Defaulting Lenders”) that are not Defaulting
Lenders based on their respective Commitment Percentages, and no Commitment Percentage of any Lender or any pro rata share of any Advances required to be advanced by any Lender shall be increased as a result of such Lender Default. Amounts
received in respect of principal of any type of Advances shall be applied to reduce the applicable Advances of each Lender (other than any Defaulting Lender) pro rata based on the aggregate of the outstanding Advances of that type of all
Lenders at the time of such application; provided, that, Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for the Defaulting Lender’s benefit, nor shall a Defaulting Lender be entitled to the
sharing of any payments hereunder (including any principal, interest or fees). Amounts payable to a Defaulting Lender shall instead be paid to or retained by Agent. Agent may hold and, in its sole discretion, re-lend to a Borrower the amount of such
payments received or retained by it for the account of such Defaulting Lender. 
 (c) A Defaulting Lender shall not be entitled
to give instructions to Agent or to approve, disapprove, consent to or vote on any matters relating to this Agreement and the other Loan Documents. All amendments, waivers and other modifications of this Agreement and the other Loan Documents may be
made without regard to a Defaulting Lender and, for purposes of the definition of “Required Lenders”, a Defaulting Lender shall be deemed not to be a Lender and not to have Advances outstanding. 

(d) Other than as expressly set forth in this Section 2.22, the rights and obligations of a Defaulting Lender (including the
obligation to indemnify Agent) and the other parties hereto shall remain unchanged. Nothing in this Section 2.22 shall be deemed to release any Defaulting Lender from its obligations under this Agreement and the other Loan Documents,
shall alter such obligations, shall operate as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice any rights that any Borrower or any Secured Party may have against any Defaulting Lender as a result of any default by
such Defaulting Lender hereunder. 
 (e) In the event a Defaulting Lender retroactively cures to the satisfaction of Agent the
breach that caused a Lender to become a Defaulting Lender, such Defaulting Lender shall no longer be a Defaulting Lender and shall be treated as a Lender under this Agreement. 

  
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 ARTICLE III 
 INTEREST AND FEES 
 3.1 Interest. Interest on Advances shall
be payable in arrears on the first day of each month with respect to Domestic Rate Loans and, with respect to Eurodollar Rate Loans, at the end of each Interest Period or, for Eurodollar Rate Loans with an Interest Period in excess of three months,
at the earlier of (a) each three months from the commencement of such Eurodollar Rate Loan or (b) the end of the Interest Period. Interest charges shall be computed on the actual principal amount of Advances outstanding during the month at
a rate per annum equal to the applicable Revolving Interest Rate. Whenever, subsequent to the date of this Agreement, the Alternate Base Rate is increased or decreased, the Revolving Interest Rate for Domestic Rate Loans shall be similarly
changed without notice or demand of any kind by an amount equal to the amount of such change in the Alternate Base Rate during the time such change or changes remain in effect. The Eurodollar Rate shall be adjusted with respect to Eurodollar Rate
Loans without notice or demand of any kind on the effective date of any change in the Reserve Percentage as of such effective date. Upon and after the occurrence of an Event of Default, and during the continuation thereof, at the option of Agent or
at the direction of Required Lenders, upon notice to the Borrowing Agent (provided that no notice shall be required if an Event of Default has occurred under Section 10.6 or any event described in Section 11.1(a)(iii) has occurred), the
Obligations shall bear interest at the rate applicable thereto plus two percent (2.0%) per annum or, if no rate is otherwise applicable thereto, two percent (2.0%) per annum (as applicable, the “Default
Rate”). 
 3.2 Letter of Credit Fees. 

(a) Borrowers shall pay (x) to Agent, for the ratable benefit of Lenders, fees for each Letter of Credit for the period from and
excluding the date of issuance of same to and including the date of expiration or termination, equal to the average daily face amount of each outstanding Letter of Credit multiplied by a per annum rate equal to the Applicable Margin for
Eurodollar Rate Loans, such fees to be calculated on the basis of a 360-day year for the actual number of days elapsed and to be payable quarterly in arrears on the first day of each quarter and on the last day of the Term, and (y) to the
Issuer, a fronting fee of one quarter of one percent (0.25%) per annum, multiplied by the Maximum Undrawn Amount of each Letter of Credit, together with any and all administrative, issuance, amendment, payment and negotiation charges with
respect to Letters of Credit and all fees and expenses as agreed upon by the Issuer and Borrowing Agent in connection with any Letter of Credit, including in connection with the opening, amendment or renewal of any such Letter of Credit and any
acceptances created thereunder and shall reimburse Agent for any and all fees and expenses, if any, paid by Agent to the Issuer (all of the foregoing fees, the “Letter of Credit Fees”). All such charges shall be deemed earned in
full on the date when the same are due and payable hereunder and shall not be subject to rebate or pro-ration upon the termination of this Agreement for any reason. Any such charge in effect at the time of a particular transaction shall be the
charge for that transaction, notwithstanding any subsequent change in the Issuer’s prevailing charges for that type of transaction. All Letter of Credit Fees payable hereunder shall be deemed earned in full on the date when the same are due and
payable hereunder and shall not be subject to rebate or pro-ration upon the termination of this Agreement for any reason. Upon and after the occurrence of an Event of Default, and during the continuation thereof, at the election of Agent or Required
Lenders, upon notice to the Borrowing Agent (provided that no notice shall be required if an Event of Default has occurred under Section 10.6 or any event described in Section 11.1(a)(iii) has occurred), the Letter of Credit Fees described
in Section 3.2(a)(i) shall be increased by an additional two percent (2%) per annum. 

  
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 (b) Upon the occurrence and during the continuance of an Event of Default, upon demand
(provided that no demand shall be required if an Event of Default has occurred under Section 10.6 or any event described in Section 11.1(a)(iii) has occurred), Borrowers will cause cash to be deposited and maintained in an account with
Agent, as cash collateral, in an amount equal to one hundred and five percent (105%) of the Maximum Undrawn Amount of all outstanding Letters of Credit, and each Borrower hereby irrevocably authorizes Agent, in its discretion, on such
Borrower’s behalf and in such Borrower’s name, to open such an account and to make and maintain deposits therein, or in an account opened by such Borrower, in the amounts required to be made by such Borrower, out of the proceeds of
Receivables or other Collateral or out of any other funds of such Borrower coming into any Secured Party’s possession at any time. Agent will invest such cash collateral (less applicable Reserves) in such short-term money-market items as to
which Agent and such Borrower mutually agree and the net return on such investments shall be credited to such account and constitute additional cash collateral. No Borrower may withdraw amounts credited to any such account without written consent of
Agent, to be given or withheld in its sole discretion, except upon the occurrence of all of the following: (x) payment and performance in full of all Obligations, (y) expiration of all Letters of Credit and (z) termination of this
Agreement. 
 3.3 [Intentionally Omitted.] 

3.4 Fee Letter. Borrowers shall pay the amounts required to be paid in the Fee Letter in the manner and at the times
required by the Fee Letter. 
 3.5 Computation of Interest and Fees. Subject to Section 3.6, interest
and fees hereunder shall be computed on the basis of a year of 360 days and for the actual number of days elapsed. If any payment to be made hereunder becomes due and payable on a day other than a Business Day, the due date thereof shall be extended
to the next succeeding Business Day and interest thereon shall be payable at the applicable Revolving Interest Rate during such extension. All fees payable under this Agreement and the other Loan Documents will be deemed earned in full on the date
when same is due and payable and will not be subject to rebate or proration upon termination of this Agreement for any reason. 

3.6 Maximum Charges. In no event whatsoever shall interest and other charges charged hereunder exceed the highest rate
permissible under Applicable Law. In the event interest and other charges as computed hereunder would otherwise exceed the highest rate permitted under law, such excess amount shall be first applied to any unpaid principal balance owed by Borrowers,
and if the then remaining excess amount is greater than the previously unpaid principal balance, Lenders shall promptly refund such excess amount to Borrowers and the provisions hereof shall be deemed amended to provide for such permissible rate.

 3.7 Increased Costs. In the event that any Applicable Law, treaty or regulation enacted after the Closing Date,
or any change therein or in the interpretation or application of any Applicable Law, treaty or regulation (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and all rules and regulations promulgated
thereunder) after the Closing Date, or compliance by any Lender (for purposes of this Section 3.7, the term “Lender” shall include Agent or any Lender and any corporation or bank controlling Agent or any Lender) and the office
or branch where Agent or any Lender (as so defined) makes or maintains any Eurodollar Rate Loans as of the Closing Date with any request or directive enacted after the Closing Date (whether or not having the force of law) from any central bank or
other financial, monetary or other authority, shall: 
 (a) subject Agent or any Lender to any tax of any kind whatsoever with
respect to this Agreement or any other Loan Document or change the basis of taxation of payments to Agent or any 

  
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Lender of principal, fees, interest or any other amount payable hereunder or under any other Loan Documents (except for changes in the rate of tax on the overall net income of Agent or any Lender
by the jurisdiction in which it maintains its principal office); 
 (b) impose, modify or hold applicable any reserve, special
deposit, assessment or similar requirement against assets held by, or deposits in or for the account of, advances or loans by, or other credit extended by, any office of Agent or any Lender, including pursuant to Regulation D of the Board of
Governors of the Federal Reserve System; or 
 (c) impose on Agent or any Lender or the London interbank Eurodollar market any
other condition with respect to this Agreement or any other Loan Document; 
 and the result of any of the foregoing is to increase the cost to
Agent or any Lender of making, renewing or maintaining its Advances hereunder by an amount that Agent or such Lender deems to be material or to reduce the amount of any payment (whether of principal, interest or otherwise) in respect of any of the
Advances by an amount that Agent or such Lender deems to be material, then, in any case Borrowers shall promptly pay Agent or such Lender, upon its demand, such additional amount as will compensate Agent or such Lender (on an after-tax basis) for
such additional cost or such reduction, as the case may be; provided that the foregoing shall not apply to increased costs that are reflected in the Eurodollar Rate, as the case may be. Agent or such Lender shall certify the amount of such
additional cost or reduced amount to Borrowing Agent, and such certification shall be conclusive absent manifest error. 

3.8 Basis for Determining Interest Rate Inadequate or Unfair. In the event that Agent or any Lender has determined that:

 (a) reasonable means do not exist for ascertaining the Eurodollar Rate for any Interest Period; or 

(b) Dollar deposits in the relevant amount and for the relevant maturity are not available in the London interbank Eurodollar market,
with respect to an outstanding Eurodollar Rate Loan, a proposed Eurodollar Rate Loan, or a proposed conversion of a Domestic Rate Loan into a Eurodollar Rate Loan, 
 then Agent shall give Borrowing Agent prompt written, telephonic or telegraphic notice of such determination. If such notice is given, (i) any such requested Eurodollar Rate Loan shall be made as a
Domestic Rate Loan, unless Borrowing Agent shall notify Agent no later than 10:00 a.m. (New York City time) two (2) Business Days prior to the date of such proposed borrowing, that its request for such borrowing shall be cancelled or made as an
unaffected type of Eurodollar Rate Loan, (ii) any Domestic Rate Loan or Eurodollar Rate Loan that was to have been converted to an affected type of Eurodollar Rate Loan shall be continued as or converted into a Domestic Rate Loan, or, if
Borrowing Agent shall notify Agent, no later than 10:00 a.m. (New York City time) two (2) Business Days prior to the proposed conversion, shall be maintained as an unaffected type of Eurodollar Rate Loan, and (iii) any outstanding affected
Eurodollar Rate Loans shall be converted into a Domestic Rate Loan, or, if Borrowing Agent shall notify Agent, no later than 10:00 a.m. (New York City time) two (2) Business Days prior to the last Business Day of the then current Interest
Period applicable to such affected Eurodollar Rate Loan, shall be converted into an unaffected type of Eurodollar Rate Loan, on the last Business Day of the then current Interest Period for such affected Eurodollar Rate Loans. Until such notice has
been withdrawn, Lenders will have no obligation to make an affected type of Eurodollar Rate Loan or maintain outstanding affected Eurodollar Rate Loans and no Borrower shall have the right to convert a Domestic Rate Loan or an unaffected type of
Eurodollar Rate Loan into an affected type of Eurodollar Rate Loan. 

  
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 3.9 Capital Adequacy. 

(a) In the event that Agent or any Lender has determined that any Applicable Law, rule, regulation or guideline regarding capital
adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Body, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by Agent or any
Lender (for purposes of this Section 3.9, the term “Lender” shall include Agent or any Lender and any corporation or bank controlling Agent or any Lender) and the office or branch where Agent or any Lender (as so defined) makes
or maintains any Eurodollar Rate Loans with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of
return on Agent or any Lender’s capital as a consequence of its obligations hereunder to a level below that which Agent or such Lender could have achieved but for such adoption, change or compliance (taking into consideration Agent’s and
each Lender’s policies with respect to capital adequacy) by an amount deemed by Agent or any Lender to be material, then, from time to time, Borrowers shall pay upon demand to Agent or such Lender such additional amount or amounts as will
compensate Agent or such Lender (on an after-tax basis) for such reduction. In determining such amount or amounts, Agent or such Lender may use any reasonable averaging or attribution methods. The protection of this Section 3.9 shall be
available to Agent and each Lender regardless of any possible contention of invalidity or inapplicability with respect to the Applicable Law, regulation or condition. 
 (b) A certificate of Agent or such Lender setting forth such amount or amounts as shall be necessary to compensate Agent or such Lender with respect to Section 3.9(a) when delivered to
Borrowing Agent shall be conclusive absent manifest error. 
 3.10 Gross Up for Taxes. If any Borrower shall be
required by Applicable Law to withhold or deduct any taxes from or in respect of any sum payable under this Agreement or any of the other Loan Documents to Agent, or any Secured Party, assignee of any Secured Party, or Participant (each,
individually, a “Payee” and collectively, the “Payees”), (a) the sum payable to such Payee or Payees, as the case may be, shall be increased as may be necessary so that, after making all required withholding or
deductions, the applicable Payee or Payees receives an amount equal to the sum it would have received had no such withholding or deductions been made (the “Gross-Up Payment”), (b) such Borrower shall make such withholding or
deductions, and (c) such Borrower shall pay the full amount withheld or deducted to the relevant taxation authority or other authority in accordance with Applicable Law. Notwithstanding the foregoing, no Borrower shall be obligated to make any
portion of the Gross-Up Payment that is attributable to any withholding or deductions that would not have been paid or claimed had the applicable Payee or Payees properly claimed a complete exemption with respect thereto pursuant to
Section 3.11. 
 3.11 Withholding Tax Exemption. 

(a) Each Payee that is not incorporated under the Laws of the United States of America or a state thereof (and, upon the written request
of Agent, each other Payee) agrees that it will deliver to Borrowing Agent and Agent two (2) duly completed appropriate valid Withholding Certificates (as defined under §1.1441-1(c)(16) of the Income Tax Regulations
(“Regulations”)) certifying its status (i.e., U.S. or foreign Person) and, if appropriate, making a claim of reduced, or exemption from, U.S. withholding tax on the basis of an income tax treaty or an exemption provided by the Code.
The term “Withholding Certificate” means a Form W-9; a Form W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and certifications as required under §1.1441-1(e)(2) and/or (3) of the Regulations; a statement
described in §1.871-14(c)(2)(v) of the Regulations; or any other certificates under the Code or Regulations that certify or establish the status of a payee or beneficial owner as a U.S. or foreign Person. 

  
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 (b) Each Payee required to deliver to Borrowing Agent and Agent a valid Withholding
Certificate pursuant to Section 3.11(a) shall deliver such valid Withholding Certificate as follows: (A) each Payee that is a party hereto on the Closing Date shall deliver such valid Withholding Certificate at least five
(5) Business Days prior to the first date on which any interest or fees are payable by any Borrower hereunder for the account of such Payee; (B) each Payee shall deliver such valid Withholding Certificate at least five (5) Business
Days before the effective date of such assignment or participation (unless Agent in its sole discretion shall permit such Payee to deliver such Withholding Certificate less than five (5) Business Days before such date in which case it shall be
due on the date specified by Agent). Each Payee that so delivers a valid Withholding Certificate further undertakes to deliver to Borrowing Agent and Agent two (2) additional copies of such Withholding Certificate (or a successor form) on or
before the date that such Withholding Certificate expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent Withholding Certificate so delivered by it, and such amendments thereto or extensions or
renewals thereof as may be reasonably requested by Borrowing Agent or Agent. 
 (c) Notwithstanding the submission of a
Withholding Certificate claiming a reduced rate of or exemption from U.S. withholding tax required under Section 3.11(b), Agent shall be entitled to withhold United States federal income taxes at the full 30% withholding rate if in its
reasonable judgment it is required to do so under the due diligence requirements imposed upon a withholding agent under §1.1441-7(b) of the Regulations. Further, Agent is indemnified under §1.1461-1(e) of the Regulations against any claims
and demands of any Payee for the amount of any tax it deducts and withholds in accordance with regulations under §1441 of the Code. 
 3.12 Replacement of Lenders. If any Lender (an “Affected Lender”) (a) makes demand upon any Credit Party for (or if any Credit Party is otherwise required to pay)
amounts pursuant to Section 3.7 or 3.9, (b) is unable to make or maintain Eurodollar Rate Loans as a result of a condition described in Section 2.2(g), or (c) is a Defaulting Lender, Borrowing Agent may,
within thirty (30) days of receipt of such demand, notice (or the occurrence of such other event causing any Credit Party to be required to pay such compensation or causing Section 2.2(g) to be applicable), or Lender Default, as the
case may be, by notice (a “Replacement Notice”) in writing to Agent and such Affected Lender (i) request the Affected Lender to cooperate with Borrowers in obtaining a replacement Lender satisfactory to Agent and Borrowers (a
“Replacement Lender”); (ii) request the non-Affected Lenders to acquire and assume all of the Affected Lender’s Revolving Advances and Commitment Percentage as provided herein, but none of such Lenders shall be under an
obligation to do so; or (iii) designate a Replacement Lender approved by Agent, such approval not to be unreasonably withheld or delayed. If any satisfactory Replacement Lender is obtained, and/or if any one or more of the non-Affected Lenders
agrees to acquire and assume all of the Affected Lender’s Revolving Advances and Commitment Percentage, then such Affected Lender shall assign, in accordance with Section 16.3, all of its Advances and Commitment Percentage and other
rights and obligations under this Agreement and the other Loan Documents to such Replacement Lender or non-Affected Lenders, as the case may be, in exchange for payment of the principal amount so assigned and all interest and fees accrued on the
amount so assigned, plus all other Obligations then due and payable to the Affected Lender; provided, however, that (A) such assignment shall be without recourse, representation or warranty and shall be on terms and
conditions reasonably satisfactory to such Affected Lender and such Replacement Lender and/or non-Affected Lenders, as the case may be, and (B) prior to any such assignment, Borrowers shall have paid to such Affected Lender all amounts properly
demanded and unreimbursed under Section 3.7 and 3.9. Upon the effective date of such assignment, Borrowers shall issue replacement Revolving Credit Notes to such Replacement Lender and/or non-Affected Lenders, as the case may be,
and such institution(s) shall become a “Lender” for all purposes under this Agreement and the other Documents. 

  
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 ARTICLE IV 
 COLLATERAL: GENERAL TERMS 
 4.1 Security Interest in the
Collateral. To secure the prompt payment and performance to Agent and each Secured Party of the Obligations, each Credit Party hereby assigns, pledges and grants to Agent for its benefit and for the ratable benefit of each Secured Party a
continuing security interest in and to and Lien on all of its Collateral, whether now owned or existing or hereafter acquired or arising and wheresoever located. Each Credit Party shall mark its books and records as may be necessary or appropriate
to evidence, protect and perfect Agent’s security interest and shall cause its financial statements to reflect such security interest. Each Credit Party shall promptly provide Agent with written notice of all commercial tort claims as provided
in Section 4.2(b), such notice to contain the case title together with the applicable court and a brief description of the claim(s). Upon delivery of each such notice, such Credit Party shall be deemed to hereby grant to Agent a security
interest and lien in and to such commercial tort claims and all proceeds thereof. 
 4.2 Perfection of Security
Interest. 
 (a) Each Credit Party shall take all action that may be necessary or desirable, or that Agent may reasonably
request, so as at all times to maintain the validity, perfection, enforceability and priority of Agent’s security interest in and Lien on the Collateral or to enable Agent to protect, exercise or enforce its rights hereunder and in the
Collateral, including: (i) promptly discharging all Liens other than Permitted Encumbrances; (ii) using commercially reasonable efforts to obtain Lien Waiver Agreements; (iii) delivering to Agent, endorsed or accompanied by such
instruments of assignment as Agent may specify, and stamping or marking, in such manner as Agent may specify, all chattel paper, instruments, letters of credit and advices thereof and documents evidencing or forming a part of the Collateral, except,
so long as no Default or Event of Default has occurred and is continuing, for such chattel paper, instruments, letters of credit and related documents having an aggregate value for all such items of less than $250,000; (iv) entering into
warehousing, lockbox and other custodial arrangements pursuant to this Agreement in form and substance reasonably satisfactory to Agent; and (v) executing and delivering financing statements, control agreements (to the extent required
hereunder), instruments of pledge, mortgages, notices and assignments, in each case in form and substance reasonably satisfactory to Agent, relating to the creation, validity, perfection, maintenance or continuation of Agent’s security interest
and Lien under the Uniform Commercial Code or other Applicable Law. By its signature hereto, each Credit Party hereby authorizes Agent to file against such Credit Party, one or more financing, continuation or amendment statements pursuant to the
Uniform Commercial Code in form and substance satisfactory to Agent (which statements may have a description of collateral that is broader than that set forth herein, including a description of “all assets” or words of similar import). All
reasonable and documented out of pocket charges, expenses and fees Agent may incur in doing any of the foregoing, and any local taxes relating thereto, shall be charged to Borrowers’ Account as a Revolving Advance of a Domestic Rate Loan and
added to the Obligations, or, at Agent’s option, shall be paid to Agent for its benefit and for the ratable benefit of Secured Parties immediately upon demand. 
 (b) The Credit Parties shall (i) promptly notify Agent in writing upon acquiring or otherwise obtaining any Collateral after the date hereof consisting of (x) deposit accounts required to be
subject to Agent’s control pursuant to Section 4.21, and (y) investment property, letter-of-credit rights, tangible chattel paper or electronic chattel paper (as such terms are defined from time to time in the UCC)

  
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and, upon the request of Agent in the case of the foregoing clauses (x) and (y), promptly execute such other documents, and do such other acts or things deemed appropriate by Agent to
deliver to Agent control with respect to such Collateral, provided that such action shall only be required with respect to Collateral of the type described in clause (y) having an aggregate value in excess of $25,000 for all such Collateral;
(ii) promptly notify Agent in writing upon acquiring or otherwise obtaining any Collateral after the date hereof consisting of documents or instruments and, upon the request of Agent, promptly execute such other documents, and do such other
acts or things deemed appropriate by Agent to deliver to Agent possession of such documents which are negotiable and instruments having an aggregate value in excess of $25,000, and, with respect to nonnegotiable documents, to have such nonnegotiable
documents issued in the name of Agent; (iii) with respect to Collateral in the possession of a third party, other than certificated securities and goods covered by a document, obtain an acknowledgment from the third party that it is holding the
Collateral for the benefit of Agent; (iv) promptly notify Agent in writing upon incurring or otherwise obtaining a commercial tort claim after the date hereof asserted against any third party, of the details thereof in the form of an amendment
to Schedule 5.26 hereto, and do such other acts or things deemed appropriate by Agent to give Agent a security interest in such commercial tort claim; (v) not change its state of incorporation or organization or type of organization;
(vi) not change its legal name without providing Agent with at least 30 days’ prior written notice (or such longer period as Agent shall agree in its sole discretion); and (vii) reimburse Agent for all expenses, including reasonable
attorney’s fees and charges (including time charges of attorneys who are employees of Agent), incurred by Agent in seeking to collect or enforce any rights in respect of such Collateral. 

4.3 Disposition of Collateral. Each Credit Party will safeguard and protect all Collateral for Agent’s general account
and make no disposition thereof whether by sale, lease or otherwise except (a) the sale of Inventory in the Ordinary Course of Business and (b) the disposition or transfer of obsolete and worn-out Equipment in the Ordinary Course of
Business during any fiscal year having an aggregate fair market value of not more than $200,000 and only to the extent that the proceeds of which are remitted to Agent to be applied pursuant to Section 2.20. 

4.4 Preservation of Collateral. Following the occurrence and during the continuance of a Default or Event of Default, in
addition to the rights and remedies set forth in Section 11.1, Agent: (a) may at any time take such steps as Agent deems necessary to protect Agent’s interest in and to preserve the Collateral, including the hiring of such
security guards or the placing of other security protection measures as Agent may deem appropriate; (b) may employ and maintain at any of any Credit Party’s premises a custodian who shall have full authority to do all acts necessary to
protect Agent’s interests in the Collateral; (c) may lease warehouse facilities to which Agent may move all or part of the Collateral; (d) may use any Credit Party’s owned or leased lifts, hoists, trucks and other facilities or
equipment for handling or removing the Collateral; and (e) shall have, and is hereby granted, a right of ingress and egress to the places where the Collateral is located, and may proceed over and through any of Credit Party’s owned or
leased property. Each Credit Party shall cooperate fully with all of Agent’s efforts to preserve the Collateral and will take such actions to preserve the Collateral as Agent may direct. All of Agent’s reasonable and documented out of
pocket expenses of preserving the Collateral, including any expenses relating to the bonding of a custodian, shall be charged to Borrowers’ Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations.

 4.5 Ownership of Collateral. 
 (a) With respect to the Collateral, at the time the Collateral becomes subject to Agent’s security interest: (i) each Credit Party shall be the sole owner of and fully authorized and able to
sell, transfer, pledge and/or grant a first priority security interest in each and every item of the its respective Collateral to Agent; and, except for Permitted Encumbrances the Collateral shall be free and

  
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clear of all Liens and encumbrances whatsoever; (ii) each Loan Document executed by each Credit Party or delivered to Agent or any Secured Party in connection with this Agreement shall be
true and correct in all material respects; (iii) all signatures and endorsements of each Credit Party that appear on such documents and agreements shall be genuine and each Credit Party shall have full capacity to execute same; and
(iv) each Credit Party’s Equipment (other than vehicles and Equipment out for repair) and Inventory (other than sample Inventory and other immaterial items of Collateral held by employees of the Credit Parties for marketing and sales
purposes) shall be located in the United States as set forth on Schedule 4.5 or in transit to or between such locations or to a customer; provided that the Credit Parties may amend Schedule 4.5 by delivery of such amended
schedule to the Agent at the time of acquisition of any new location in the United States. 
 (b) (i) There is no location at
which any Credit Party has any Inventory (except for Inventory in transit and sample Inventory and other immaterial items of Collateral held by employees of the Credit Parties for marketing and sales purposes) other than those locations listed on
Schedule 4.5; (ii) Schedule 4.5 contains a correct and complete list, as of the Closing Date, of the legal names and addresses of each warehouse at which Inventory of any Credit Party is stored; none of the receipts received by
any Credit Party from any warehouse states that the goods covered thereby are to be delivered to bearer or to the order of a named Person or to a named Person and such named Person’s assigns; (iii) Schedule 4.5 sets forth a correct
and complete list as of the Closing Date of (A) each place of business of each Credit Party and (B) the chief executive office of each Credit Party; and (iv) Schedule 4.5 sets forth a correct and complete list as of the Closing
Date of the location, by state and street address, of all Real Property owned or leased by each Credit Party, together with the names and addresses of any landlords. 
 4.6 Defense of Secured Parties’ Interests. Until (a) payment and performance in full of all of the Obligations (other than Inchoate Obligations) and (b) termination of this
Agreement, Agent’s interests in the Collateral shall continue in full force and effect. During such period no Credit Party shall, without Agent’s prior written consent, pledge, sell (except to the extent permitted in
Section 4.3), assign, transfer, create or suffer to exist a Lien upon or encumber or allow or suffer to be encumbered in any way except for Permitted Encumbrances, any part of the Collateral. Each Credit Party shall defend Agent’s
interests in the Collateral against any and all Persons whatsoever. At any time following demand by Agent for payment of all Obligations in accordance with this Agreement, Agent shall have the right to take possession of the indicia of the
Collateral and the Collateral in whatever physical form contained, including: labels, stationery, documents, instruments and advertising materials. If Agent exercises this right to take possession of the Collateral, the Credit Parties shall, upon
demand, assemble it in the best manner possible and make it available to Agent at a place reasonably convenient to Agent. In addition, with respect to all Collateral, Secured Parties shall be entitled to all of the rights and remedies set forth
herein and further provided by the Uniform Commercial Code or other Applicable Law. Each Credit Party shall and, after the occurrence and during the continuance of a Default or Event of Default, Agent may, at its option, instruct all suppliers,
carriers, forwarders, warehousers or others receiving or holding cash, checks, Inventory, documents or instruments in which Agent holds a security interest to deliver same to Agent and/or subject to Agent’s order and if they shall come into any
Credit Party’s possession, they, and each of them, shall be held by such Credit Party in trust as Agent’s trustee, and such Credit Party will immediately deliver them to Agent in their original form together with any necessary endorsement.

 4.7 Books and Records. Each Credit Party shall (a) keep proper books of record and account in which full,
true and correct entries will be made of all dealings or transactions of or in relation to its business and affairs; (b) set up on its books accruals with respect to all taxes, assessments, charges, levies and claims; and (c) on a
reasonably current basis set up on its books, from its earnings, allowances against doubtful Receivables, advances and investments and all other proper accruals (including by reason of 

  
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enumeration, accruals for premiums, if any, due on required payments and accruals for depreciation, obsolescence, or amortization of properties), which should be set aside from such earnings in
connection with its business. All determinations pursuant to this subsection shall be made in accordance with, or as required by, GAAP consistently applied in the opinion of such independent public accountant as shall then be regularly engaged by
the Credit Parties. 
 4.8 Financial Disclosure. Each Credit Party hereby irrevocably authorizes and directs all
accountants and auditors employed by such Credit Party at any time during the Term to exhibit and deliver to Agent and each Lender copies of any of such Credit Party’s financial statements, trial balances or other accounting records of any sort
in the accountant’s or auditor’s possession, and to disclose to Agent and each Lender any information such accountants may have concerning such Credit Party’s financial status and business operations. Each Credit Party hereby
authorizes all Governmental Bodies to furnish to Agent and each Lender copies of reports or examinations relating to such Credit Party, whether made by such Credit Party or otherwise; however, Agent and each Lender will attempt to obtain such
information or materials directly from such Credit Party prior to obtaining such information or materials from such accountants or Governmental Bodies. 
 4.9 Compliance with Laws. Each Credit Party shall comply with all Applicable Laws with respect to the Collateral or any part thereof or to the operation of such Credit Party’s business
the non-compliance with which could reasonably be expected to have a Material Adverse Effect. The assets of the Credit Parties at all times shall be maintained in accordance with the requirements of all insurance carriers that provide insurance with
respect to the assets of the Credit Parties so that such insurance shall remain in full force and effect. 
 4.10
Inspections and Appraisals. Agent and each Lender shall have access to and the right to audit, check, inspect and, subject to applicable confidentiality restrictions, make abstracts and copies from each Credit Party’s books, records,
audits, correspondence and all other papers relating to the Collateral and the operation of each Credit Party’s business. Agent and its agents may enter upon any premises of any Credit Party at any time during business hours and at any other
reasonable time, and from time to time, for the purpose of inspecting the Collateral and any and all records pertaining thereto and the operation of such Credit Party’s business. Agent shall have the right to obtain appraisals of the Collateral
through one or more appraisers acceptable to Agent at any time and from time to time and the Credit Parties agree to reimburse Agent for all charges, costs and expenses of Agent in connection therewith. In addition to the foregoing, Agent shall have
the right to conduct desktop appraisals semi-annually. 
 4.11 Insurance. The assets and properties of each Credit
Party at all times shall be maintained in accordance with the requirements of all insurance carriers that provide insurance with respect to the assets and properties of such Credit Party so that such insurance shall remain in full force and effect.
Each Credit Party shall bear the full risk of any loss of any nature whatsoever with respect to the Collateral. At each Credit Party’s own cost and expense in amounts and with carriers acceptable to Agent, each Credit Party shall (a) keep
all its insurable properties and properties in which such Credit Party has an interest insured against the hazards of fire, flood, sprinkler leakage, those hazards covered by extended coverage insurance and such other hazards, and for such amounts,
as is customary in the case of companies engaged in businesses similar to such Credit Party’s including business interruption insurance; (b) maintain a bond in such amounts as is customary in the case of companies engaged in businesses
similar to such Credit Party insuring against larceny, embezzlement or other criminal misappropriation of insured’s officers and employees who may either singly or jointly with others at any time have access to the assets or funds of such
Credit Party either directly or through authority to draw upon such funds or to direct generally the disposition of such assets; (c) maintain public and product liability insurance against claims for personal injury, death or property damage
suffered by others; (d) maintain all such worker’s 

  
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compensation or similar insurance as may be required under the laws of any state or jurisdiction in which such Credit Party is engaged in business; (e) furnish Agent with (i) copies of
all policies and evidence of the maintenance of such policies by the renewal thereof as soon as practicable before any expiration date therefor and in any event not less than ten (10) days’ prior to such expiration date, and
(ii) appropriate loss payable endorsements in form and substance satisfactory to Agent, naming Agent as a co-insured and loss payee as its interests may appear with respect to all insurance coverage referred to in clauses (a) and
(b) above, and providing (A) that all proceeds thereunder shall be payable to Agent, (B) no such insurance shall be affected by any act or neglect of the insured or owner of the property described in such policy, and (C) that
such policy and loss payable clauses may not be cancelled, amended or terminated unless at least ten (10) days’ prior written notice is given to Agent for any cancellation, amendment or termination of such policy resulting from nonpayment
of premiums and at least thirty (30) days’ prior written notice is given to Agent for any other reason for cancellation, amendment or termination of such policy. In the event of any loss thereunder, the carriers named therein hereby are
directed by Agent and the applicable Credit Party to make payment for such loss to Agent and not to such Credit Party and Agent jointly. If any insurance losses are paid by check, draft or other instrument payable to any Credit Party and Agent
jointly, Agent may endorse such Credit Party’s name thereon and do such other things as Agent may deem advisable to reduce the same to cash. Agent is hereby authorized to adjust and compromise claims under insurance coverage referred to in
clauses (a) and (b) above. All loss recoveries received by Agent upon any such insurance may be applied to the Obligations, in such order as Agent in its sole discretion shall determine. Any surplus shall be paid by Agent to the Credit
Parties or applied as may be otherwise required by law. Any deficiency thereon shall be paid by the Credit Parties to Agent, on demand. 
 4.12 Failure to Pay Insurance. 
 (a) If any Credit Party fails to
obtain insurance as hereinabove provided, or to keep the same in force, Agent, if Agent so elects, may obtain such insurance and pay the premium therefor on behalf of such Credit Party, and charge Borrowers’ Account therefor as a Revolving
Advance of a Domestic Rate Loan and such expenses so paid shall be part of the Obligations; provided that Agent shall use commercially reasonable efforts to notify Borrowing Agent of the foregoing. 

(b) Unless the Credit Parties provide Agent with evidence of the insurance coverage required by this Agreement, Agent may purchase
insurance at the expense of the Credit Parties to protect Agent’s and the Lenders’ interests in the Collateral. This insurance may, but need not, protect the Credit Parties’ interests. The coverage that Agent purchases may not pay any
claim that is made against the Credit Parties in connection with the Collateral. The Credit Parties may later cancel any insurance purchased by Agent, but only after providing Agent with evidence that the Credit Parties have obtained insurance as
required by this Agreement. If Agent purchases insurance for the Collateral, the Credit Parties will be responsible for the costs of that insurance, including interest and any other charges that may be imposed with the placement of the insurance,
until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to the amount of the Obligations. The costs of the insurance may be more than the cost of the insurance the Credit Parties may be
able to obtain. 
 (c) The premiums and other costs of any insurance obtained by Agent pursuant to this Section 4.12
may be charged to Borrowers’ Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations. 
 4.13 Payment of Taxes. Each Credit Party will pay, when due, to the extent lawfully levied or assessed upon such Credit Party or any of the Collateral, all real and personal property taxes,
assessments and Charges, all franchise and federal taxes, assessments and Charges, all state and local taxes, 

  
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assessments and Charges in excess of $250,000 in the aggregate, and all employment, social security benefits, withholding, and sales taxes, in each case, other than those being Properly
Contested. If any tax by any Governmental Body is or may be imposed on or as a result of any transaction between any Credit Party and any Secured Party that any Secured Party may be required to withhold or pay or if any taxes, assessments, or other
Charges remain unpaid after the date fixed for their payment, or if any claim shall be made that, in any Secured Party’s opinion, may possibly create a valid Lien on the Collateral, Agent may without notice to the Credit Parties pay the taxes,
assessments or other Charges and each Credit Party hereby indemnifies and holds each Indemnitee harmless in respect thereof. Agent will not pay any taxes, assessments or Charges to the extent that any applicable Credit Party has Properly Contested
those taxes, assessments or Charges. The amount of any payment by Agent under this Section 4.13 shall be charged to Borrowers’ Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations and, until
the Credit Parties shall furnish Agent with an indemnity therefor (or supply Agent with evidence satisfactory to Agent that due provision for the payment thereof has been made), Agent may hold without interest any balance standing to Borrowers’
credit and Agent shall retain its security interest in and Lien on any and all Collateral held by Agent. 
 4.14
Payment of Leasehold Obligations. Each Credit Party shall at all times pay, when and as due, its rental obligations under all leases under which it is a tenant, and shall otherwise comply, in all material respects, with all other terms of
such leases and keep them in full force and effect and, at Agent’s request will provide evidence of having done so. 

4.15 Receivables. 
 (a) Nature of Receivables. Each Credit Party represents and warrants that each of the Receivables (without representing that any such Receivable is an Eligible Receivable except to the extent
otherwise expressly so represented pursuant to the Loan Documents) shall be, (i) as of the date of creation thereof, a bona fide and valid account representing a bona fide indebtedness incurred by the Customer therein named, for a fixed sum as
set forth in the invoice relating thereto (provided that immaterial or unintentional invoice errors shall not be deemed to be a breach hereof) with respect to an absolute sale or lease and delivery of goods upon stated terms of a Credit
Party, or work, labor or services theretofore rendered by a Credit Party and (ii) due and owing in accordance with the applicable Credit Party’s standard terms of sale without known dispute, setoff or counterclaim, except as may be stated
on the most recently delivered Borrowing Base Certificate; provided that if any such dispute, setoff or counterclaim arises between delivery of Borrowing Base Certificates in an aggregate amount greater than $500,000, the Credit Parties shall
have disclosed the same to Agent in writing. 
 (b) Solvency of Customers. Each Customer, to the best of each Credit
Party’s knowledge based on such Credit Party’s use and review of customary credit checks and other similar inspections with respect to such Customer, as of the date each Receivable is created, is not subject to any insolvency proceeding
and is and will be able to pay all Receivables on which the Customer is obligated in full when due or with respect to such Customers of any Credit Party who are not so able such Credit Party has set up on its books and in its financial records bad
debt reserves adequate to cover such Receivables. 
 (c) Location of Credit Parties. Each Credit Party’s chief
executive office is located at 2027 Harpers Way, Torrance, California. Until written notice is given to Agent by Borrowing Agent of any other office at which any Credit Party keeps its records pertaining to Receivables (including collection
thereof), all such records shall be kept at such executive office; provided that duplicate copies thereof may be kept at other locations of the Credit Parties and their Subsidiaries. 

  
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 (d) Collection of Receivables. Until any Credit Party’s authority to do so is
terminated by Agent (which notice Agent may give at any time following the occurrence and during the continuance of a Default or Event of Default ), each Credit Party will, at such Credit Party’s sole cost and expense, but on Agent’s
behalf and for Agent’s account, collect as Agent’s property and in trust for Agent all amounts received on Receivables, and shall not commingle such collections with any Credit Party’s funds or use the same except to pay Obligations.
Each Credit Party shall deposit in the Blocked Account or, upon request by Agent, deliver to Agent, in original form and on the date of receipt thereof, all checks, drafts, notes, money orders, acceptances, cash and other evidences of Indebtedness.

 (e) Notification of Assignment of Receivables. After the occurrence and during the continuance of a Default or Event
of Default, Agent shall have the right to send notice of the assignment of, and Agent’s security interest in and Lien on, the Receivables to any and all Customers or any third party holding or otherwise concerned with any of the Collateral.
Thereafter, Agent shall have the sole right, if it has made such election, to collect the Receivables, take possession of the Collateral, or both. Agent’s actual collection expenses, including stationery and postage, telephone and telegraph,
secretarial and clerical expenses and the charges of any collection personnel used for collection, may be charged to Borrowers’ Account and added to the Obligations. 
 (f) Power of Agent to Act on Credit Parties’ Behalf. Agent shall have the right to receive, endorse, assign and/or deliver in the name of Agent or any Credit Party any and all checks, drafts
and other instruments for the payment of money relating to the Receivables, and each Credit Party hereby waives notice of presentment, protest and non-payment of any instrument so endorsed. Each Credit Party hereby constitutes Agent or Agent’s
designee as such Credit Party’s attorney with power (i) to endorse such Credit Party’s name upon any notes, acceptances, checks, drafts, money orders or other evidences of payment or Collateral; (ii) to sign such Credit
Party’s name on any invoice or bill of lading relating to any of the Receivables, drafts against Customers, assignments and verifications of Receivables; (iii) to send verifications of Receivables to any Customer; (iv) to sign such
Credit Party’s name on all financing statements or any other documents or instruments deemed necessary or appropriate by Agent to preserve, protect, or perfect Agent’s interest in the Collateral and to file same; (v) to demand payment
of the Receivables; (vi) to enforce payment of the Receivables by legal proceedings or otherwise; (vii) to exercise all of such Credit Party’s rights and remedies with respect to the collection of the Receivables and any other
Collateral; (viii) to settle, adjust, compromise, extend or renew the Receivables; (ix) to settle, adjust or compromise any legal proceedings brought to collect Receivables; (x) to prepare, file and sign such Credit Party’s name
on a proof of claim in bankruptcy or similar document against any Customer; (xi) to prepare, file and sign such Credit Party’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection with the
Receivables; and (xii) to do all other acts and things necessary to carry out this Agreement; provided, however, that Agent shall only exercise the rights described in clauses (vi) through (ix), inclusive upon the occurrence
and during the continuance of a Default or Event of Default. All acts of said attorney or designee are hereby ratified and approved, and said attorney or designee shall not be liable for any acts of omission or commission nor for any error of
judgment or mistake of fact or of law, unless done maliciously or with gross (not mere) negligence (as determined by a court of competent jurisdiction in a final non-appealable judgment); this power being coupled with an interest is irrevocable
while any of the Obligations (other than Inchoate Obligations) remain unpaid. Agent shall have the right at any time following the occurrence and during the continuance of an Event of Default or Default, to change the address for delivery of mail
addressed to any Credit Party to such address as Agent may designate and to receive, open and dispose of all mail addressed to any Credit Party. 
 (g) No Liability. No Secured Party shall, under any circumstances or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the settlement,

  
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collection or payment of any of the Receivables or any instrument received in payment thereof, or for any damage resulting therefrom. Following the occurrence and during the continuance of an
Event of Default or Default Agent may, without notice or consent from any Credit Party, sue upon or otherwise collect, extend the time of payment of, compromise or settle for cash, credit or upon any terms any of the Receivables or any other
securities, instruments or insurance applicable thereto and/or release any obligor thereof. Agent is authorized and empowered to accept following the occurrence and during the continuance of an Event of Default or Default the return of the goods
represented by any of the Receivables, without notice to or consent by any Credit Party, all without discharging or in any way affecting any Credit Party’s liability hereunder. 

(h) Establishment of a Lockbox Account, Dominion Account. All proceeds of Collateral and all Extraordinary Receipts shall be
deposited by Borrowers into either (i) a lockbox account, dominion account or such other “blocked account” (“Blocked Accounts”) established at a bank or banks (each such bank, a “Blocked Account
Bank”) pursuant to an arrangement with such Blocked Account Bank as may be selected by Borrowing Agent and be acceptable to Agent or (ii) depository accounts (“Depository Accounts”) established at Agent for the deposit
of such proceeds. Each applicable Borrower, Agent and each Blocked Account Bank shall enter into a deposit account control agreement in form and substance satisfactory to Agent directing such Blocked Account Bank to transfer such funds so deposited
to Agent, either to any account maintained by Agent at said Blocked Account Bank or by wire transfer to appropriate account(s) of Agent. All funds deposited in such Blocked Accounts shall immediately become the property of Agent and Borrowing Agent
shall obtain the agreement by such Blocked Account Bank to waive any offset rights against the funds so deposited. No Secured Party assumes any responsibility for such blocked account arrangement, including any claim of accord and satisfaction or
release with respect to deposits accepted by any Blocked Account Bank thereunder. All deposit accounts and investment accounts of each Credit Party and its Subsidiaries are set forth on Schedule 4.15(h). 

(i) Adjustments. No Credit Party will, without Agent’s consent, compromise or adjust any Receivables (or extend the time for
payment thereof) or accept any returns of merchandise or grant any additional discounts, allowances or credits thereon except for compromises, adjustments, returns, discounts, credits and allowances in the Ordinary Course of Business. 

4.16 Inventory. All Inventory held for sale or lease by any Credit Party has been and will be manufactured and maintained
in all material respects in compliance with all requirements of each Governmental Body that has regulatory authority over such Inventory or the use or sale thereof. To the extent Inventory held for sale or lease has been produced by any Credit
Party, it has been and will be produced by such Credit Party in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder. 

4.17 Maintenance of Equipment. The Equipment shall be maintained in good operating condition and repair (reasonable wear
and tear excepted) and all necessary replacements of and repairs thereto shall be made so that the value and operating efficiency of the Equipment shall be maintained and preserved. The Credit Parties shall use or operate the Equipment in compliance
in all material respects with Applicable Law. Each Credit Party shall have the right to sell Equipment to the extent expressly set forth in Section 4.3. 
 4.18 Exculpation of Liability. Nothing herein contained shall be construed to constitute Agent or any Lender as any Credit Party’s agent for any purpose whatsoever, nor shall Agent or
any Lender be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless of the cause thereof. No Secured Party,

  
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whether by anything herein or in any assignment or otherwise, assumes any of any Credit Party’s obligations under any contract or agreement assigned to Agent or such Lender, and no Secured
Party shall be responsible in any way for the performance by any Credit Party of any of the terms and conditions thereof. 

4.19 Environmental Matters. 
 (a) The Credit Parties shall ensure that the Real Property and all operations and businesses conducted thereon remains in compliance with all Environmental Laws except as could not individually or in the
aggregate reasonably be expected to have a Material Adverse Effect, and they shall not place or permit to be placed any Hazardous Substances on any Real Property except as permitted by Applicable Law or appropriate Governmental Bodies except as
could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect. 
 (b) The Credit Parties
shall establish and maintain a system to assure and monitor continued compliance in a reasonable manner with all applicable Environmental Laws, which system shall include periodic reviews of such compliance. 

(c) The Credit Parties shall (i) employ in connection with the use of the Real Property appropriate technology necessary to maintain
compliance with any applicable Environmental Laws and (ii) dispose of any and all Hazardous Waste generated at the Real Property only at facilities and with carriers that maintain valid permits under RCRA and any other applicable Environmental
Laws. The Credit Parties shall use their best efforts to obtain certificates of disposal, such as hazardous waste manifest receipts, from all treatment, transport, storage or disposal facilities or operators employed by the Credit Parties in
connection with the transport or disposal of any Hazardous Waste generated at the Real Property, except, in each case, as could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect. 

(d) In the event any Credit Party obtains, gives or receives notice of any material Release or threat of material Release of a reportable
quantity of any Hazardous Substances on, at, under or from the Real Property or any other property (any such event being hereinafter referred to as a “Hazardous Discharge”) or receives any written notice of violation, request for
information or notification that it is potentially responsible for investigation or cleanup of environmental conditions at the Real Property, demand letter or complaint, order, citation, or other written notice with regard to any Hazardous Discharge
or violation of Environmental Laws affecting the Real Property or any Credit Party’s interest therein (any of the foregoing is referred to herein as an “Environmental Complaint”) from any Person, including any Governmental Body
responsible in whole or in part for environmental matters in the state in which the Real Property is located or the United States Environmental Protection Agency (any such person or entity hereinafter the “Authority”), then
Borrowing Agent shall, within five (5) Business Days, give written notice of same to Agent detailing facts and circumstances of which any Credit Party is aware giving rise to the Hazardous Discharge or Environmental Complaint. Such information
is to be provided to allow Agent to protect its security interest in and Lien on the Real Property and the Collateral and is not intended to create nor shall it create any obligation upon Agent or any Lender with respect thereto. 

(e) Borrowing Agent shall promptly forward to Agent copies of any written request for information, notification of potential liability,
demand letter relating to any Credit Party’s potential material liability under Environmental Laws, including potential responsibility with respect to the investigation or cleanup of Hazardous Substances at any other site owned, operated or
used by any Credit Party to dispose of Hazardous Substances and shall continue to forward copies of material 

  
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correspondence between any Credit Party and the Authority regarding such claims to Agent until the claim is settled. Borrowing Agent shall promptly forward to Agent copies of all documents and
reports concerning a Hazardous Discharge that any Credit Party is required to file under any Environmental Laws, except as to such Hazardous Discharges as could not reasonably be expected to have a Material Adverse Effect. Such information is to be
provided solely to allow Agent to protect Agent’s security interest in and Lien on the Real Property and the Collateral. 

(f) The Credit Parties shall respond promptly to any Hazardous Discharge or Environmental Complaint and take all necessary action under
Environmental Laws in order to safeguard the health of any Person and to avoid subjecting the Collateral or Real Property to any Lien. If any Credit Party shall fail to respond promptly to any material Hazardous Discharge or Environmental Complaint
or any Credit Party shall fail to comply with any of the requirements of any Environmental Laws in all material respects, Agent on behalf of Lenders may, but without the obligation to do so, for the sole purpose of protecting Agent’s interest
in the Collateral: (A) give such notices or (B) enter onto the Real Property (or authorize third parties to enter onto the Real Property) and take such actions as Agent (or such third parties as directed by Agent) deem reasonably necessary
or advisable, to clean up, remove, mitigate or otherwise deal with any such Hazardous Discharge or Environmental Complaint. All reasonable costs and expenses incurred by Secured Parties (or such third parties) in the exercise of any such rights,
including any sums paid in connection with any judicial or administrative investigation or proceedings, fines and penalties, together with interest thereon from the date expended at the Default Rate for Domestic Rate Loans constituting Revolving
Advances shall be paid upon demand by the Credit Parties, and until paid shall be added to and become a part of the Obligations secured by the Liens created by the terms of this Agreement or any other agreement between any Secured Party and any
Credit Party. 
 (g) Promptly upon the written request of Agent from time to time, the Credit Parties shall provide Agent, at
the Credit Parties’ expense, with an environmental site assessment or environmental audit report prepared by an environmental engineering firm acceptable in the reasonable opinion of Agent, to assess with a reasonable degree of certainty the
existence of a Hazardous Discharge and the potential costs in connection with the investigation, abatement, cleanup, removal and monitoring of any Hazardous Substances found on, under, at, from or within the owned Real Property. Any report or
investigation of such Hazardous Discharge proposed and acceptable to an appropriate Authority that is charged to oversee the clean-up of such Hazardous Discharge shall be acceptable to Agent. If such estimates, individually or in the aggregate,
exceed $25,000, Agent shall have the right to require the Credit Parties to post a bond, letter of credit or other security reasonably satisfactory to Agent to secure payment of these costs and expenses. 

(h) The Credit Parties shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their respective employees, agents,
directors and officers harmless from and against all loss, liability, damage and expense, claims, costs, fines and penalties, including attorney’s fees, suffered or incurred by Agent or Lenders under or on account of any Environmental Laws,
including the assertion of any Lien thereunder, with respect to any Hazardous Discharge, the presence of any Hazardous Substances affecting the Real Property, whether or not the same originates or emerges from the Real Property or any contiguous
real estate, including any loss of value of the Real Property as a result of the foregoing except to the extent such loss, liability, damage and expense is attributable to any Hazardous Discharge resulting from actions on the part of any Secured
Party. The Credit Parties’ obligations under this Section 4.19 shall arise upon the discovery of the presence of any Hazardous Substances at the Real Property, whether or not any Governmental Body has taken or threatened any action
in connection with the presence of any Hazardous Substances. The Credit Parties’ obligation and the indemnifications hereunder shall survive the termination of this Agreement. 

  
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 (i) For purposes of Sections 4.19 and 5.7, all references to Real Property
shall be deemed to include all of each Credit Party’s right, title and interest in and to its currently owned and leased premises. 
 4.20 Financing Statements. Except as respects the financing statements filed by Agent and the financing statements described on Schedule 1.2, no financing statement covering any of
the Collateral or any proceeds thereof is on file in any public office. 
 4.21 Deposit and Investment Accounts.
Borrowers agree not to maintain any deposit or investment accounts other than accounts held at or through Agent, except that Borrowers may maintain the accounts set forth on Schedule 4.15(h) (as so updated from time to time) that
are (a) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrowers’ employees (including any “rabbi trust” account used in connection with such
purposes) and identified to Agent by Borrowers as such, or (b) subject to a control agreement in favor of Agent from the holder of such account, giving Agent a first-priority security interest in such account, in form and substance satisfactory
to Agent; provided, that, notwithstanding the foregoing, all deposit accounts of the Credit Parties (other than (x) deposit accounts of the type described in the foregoing clause (a) and (y) the Limited Purpose Deposit Account
to the extent such deposit account is in compliance with the requirements set forth in the definition thereof) shall be maintained at PNC no later than ninety (90) days following the Closing Date (or such later date as Agent shall agree in its
sole discretion) other than deposit accounts at Comerica Bank that comply with the foregoing clause (b). On each Business Day that amounts received in the Limited Purpose Deposit Account (other amounts of the type described in clause (b) of the
definition thereof deposited therein by VMC) since the last date of transfer required by this sentence (or the Closing Date, in the case of the first such transfer) are equal to or in excess of $250,000 in the aggregate, the Borrowers shall transfer
on such Business Day all such amounts to the collection account of VMC maintained at PNC. 
 4.22 New and Newly
Registered Intellectual Property. If any Credit Party (a) obtains ownership of any patent registered with the United States Patent and Trademark Office, trademark registered with the United States Patent and Trademark Office, or copyright
registered with the United States Copyright Office, or (b) submits a registered application for any patent or any trademark, then such Credit Party shall, concurrently with the delivery of the Compliance Certificate for the relevant period,
provide written notice thereof to Agent and shall execute such intellectual property security agreements and other documents and take such other actions (including recording or allowing Agent to record such intellectual property security agreements
with the United States Copyright Office or the United States Patent and Trademark Office, as applicable) as Agent shall request in its Permitted Discretion to perfect and maintain a first priority perfected security interest in favor of Agent.
No Credit Party shall register any copyrights or mask works in the United States Copyright Office, unless such Credit Party shall: (i) not less than five (5) Business Days prior to making the relevant filings, provide Agent written notice
of such Credit Party’s filing of an application to register such copyrights or mask works together with a copy of the application to be filed with the United States Copyright Office (excluding exhibits thereto); (ii) execute an
intellectual property security agreement and such other documents and take such other actions as Agent may request in its Discretion to perfect and maintain a first priority perfected security interest in favor of Agent in the copyrights or mask
works intended to be registered with the United States Copyright Office; and (iii) record or allow Agent to record such intellectual property security agreement with the United States Copyright Office. Each Credit Party shall promptly provide
to Agent evidence of the recording of the intellectual property security agreement necessary for Agent to perfect and maintain a first priority perfected security interest in such property. 

  
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 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 
 Each Credit Party represents and warrants
to Secured Parties as follows: 
 5.1 Authority. Each Credit Party has full power, authority and legal right to
enter into this Agreement and the other Loan Documents and to perform all its respective Obligations hereunder and thereunder. This Agreement and the other Loan Documents have been duly executed and delivered by each Credit Party, and this Agreement
and the other Loan Documents constitute the legal, valid and binding obligation of such Credit Party enforceable in accordance with their terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or
similar laws affecting creditors’ rights generally. The execution, delivery and performance of this Agreement and of the other Loan Documents (a) are within such Credit Party’s corporate powers, have been duly authorized by all
necessary corporate action, are not in contravention of law or the terms of such Credit Party’s by-laws, certificate of incorporation or other applicable documents relating to such Credit Party’s formation or to the conduct of such Credit
Party’s business or of any material agreement or undertaking to which such Credit Party is a party or by which such Credit Party is bound, (b) will not conflict with or violate any law or regulation, or any judgment, order or decree of any
Governmental Body, (c) will not require the Consent of any Governmental Body or any other Person, except those Consents set forth on Schedule 5.1, all of which will have been duly obtained, made or compiled with prior to the Closing Date
and that are in full force and effect, (d) will not conflict with, nor result in any breach in any of the provisions of or constitute a default under any material agreement, charter document, instrument, by-law, operating agreement or other
material instrument to which such Credit Party is a party or by which it or its property is a party or by which it may be bound, and (e) will not result in the creation of any Lien (except Permitted Encumbrances) upon any asset of such Credit
Party under the provisions of any agreement, charter document, instrument, by-law, operating agreement or other instrument to which such Credit Party is a party or by which it or its property is a party or by which it may be bound. 

5.2 Formation and Qualification. 
 (a) Each Credit Party is duly incorporated and in good standing under the laws of its state of incorporation, as listed on Schedule 5.2(a) and is qualified to do business and is in good standing as
of the Closing Date in the states listed on Schedule 5.2(a), which constitute all states in which qualification and good standing are necessary for such Credit Party to conduct its business and own its property where the failure to be so
qualified could reasonably be expected to have a Material Adverse Effect on such Credit Party. Each Credit Party has delivered to Agent true and complete copies of its certificate of incorporation and by-laws and will notify Agent of any amendment
or changes thereto not less than 30 days prior to each such amendment. 
 (b) The only Subsidiaries of each Credit Party are
listed on Schedule 5.2(b). 
 5.3 Survival of Representations and Warranties. All representations and
warranties of such Credit Party contained in this Agreement and the other Loan Documents shall be true, correct, and complete, in all material respects (except that any such representation or warranty already qualified or modified by materiality in
the text thereof shall be true, correct and complete in all respects), and shall survive the execution, delivery and acceptance thereof by the parties thereto and the closing of the transactions described therein or related thereto. 

  
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 5.4 Tax Returns. Each Credit Party’s federal tax identification number,
as of the Closing Date, is set forth on Schedule 5.4. Each Credit Party has filed all material federal, state and local tax returns and other reports each is required by law to file and has paid all taxes, assessments, fees and other
governmental charges that are due and payable. Federal, state and local income tax returns of each Credit Party have been examined and reported upon by the appropriate taxing authority or closed by applicable statute and satisfied for all fiscal
years prior to and including the fiscal year ending January 31, 2004. The provision for taxes on the books of each Credit Party is adequate for all years not closed by applicable statutes, and for its current fiscal year, and no Credit Party
has any knowledge of any deficiency or additional assessment in connection therewith not provided for on its books. 
 5.5
Financial Statements. 
 (a) The pro forma balance sheet of Borrowers on a Consolidated Basis (the “Pro Forma
Balance Sheet”) furnished to Agent on the Closing Date reflects the consummation of the transactions contemplated by and under this Agreement (collectively, the “Transactions”) and fairly reflects the financial condition of
Borrowers on a Consolidated Basis as of the Closing Date after giving effect to the Transactions, and has been prepared in accordance with GAAP, consistently applied. The Pro Forma Balance Sheet has been certified by the Vice President Finance of
Borrowing Agent as fairly presenting, in all material respects, the financial condition of the Borrowers as of the date thereof. All financial statements referred to in this subsection 5.5(a), including the related schedules and notes thereto, have
been prepared, in accordance with GAAP, except as may be disclosed in such financial statements and except for the absence of footnotes and customary year-end adjustments. 
 (b) The twelve-month cash flow projections of Borrowers on a Consolidated Basis and their projected balance sheets as of the Closing Date, copies of which are annexed to the Financial Condition
Certificate (the “Projections”) were prepared by the Vice President Finance of VMC, in good faith based upon assumptions believed by the Borrowers to be reasonable at the time made (it being understood that such projections are
subject to uncertainties and contingencies and that no assurance can be given that any particular projections will be realized). The cash flow Projections together with the Pro Forma Balance Sheet, are referred to as the “Pro Forma Financial
Statements”. 
 and 
 (c) The consolidated and consolidating (if applicable) balance sheets of Borrowers, their Subsidiaries and such other Persons described therein (including the accounts of all Subsidiaries for the
respective periods during which a subsidiary relationship existed) as of November 30, 2011, and the related statements of income, changes in stockholder’s equity, and changes in cash flow for the period ended on such date, all accompanied
by reports thereon containing opinions without qualification by independent certified public accountants, copies of which have been delivered to Agent, have been prepared in accordance with GAAP, as in effect from time to time (except as expressly
noted therein and except for changes in application in which such accountants concur and present fairly the financial position of Borrowers and their Subsidiaries at such date and the results of their operations for such period). Since
January 31, 2011 there has been no change in the condition, financial or otherwise, of Borrowers or their Subsidiaries as shown on the consolidated balance sheet as of such date which individually or in the aggregate could reasonably be
expected to have a Materially Adverse Effect. 
 5.6 Entity Names. No Credit Party has changed its corporate name
or used a trade name in the past five years and does not sell Inventory under any other name, nor has any Credit Party been the surviving corporation of a merger or consolidation or acquired all or substantially all of the assets of any Person
during the preceding five (5) years, in each case except as set forth on Schedule 5.6. 

  
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 5.7 O.S.H.A. and Environmental Compliance. 

(a) Each Credit Party has duly complied with, and its facilities, business, assets, property, leaseholds, Real Property and Equipment are
in compliance in all material respects with, the provisions of the Federal Occupational Safety and Health Act, the Environmental Protection Act, RCRA and all other Environmental Laws; there have been no outstanding citations, notices or orders of
non-compliance issued to any Credit Party or relating to its business, assets, property, leaseholds or Equipment under any such laws, rules or regulations other than, in each case, such non-compliance as count not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. 
 (b) Each Credit Party has been issued all required federal, state
and local licenses, certificates or permits relating to all applicable Environmental Laws other than those the failure of which to obtain could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

 (c) There are no visible signs of releases, spills, discharges, leaks or disposal (collectively referred to as
“Releases”) of Hazardous Substances at, upon, under or within any Real Property or any premises leased by any Credit Party that could individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

 5.8 Solvency; No Litigation, Violation, Indebtedness or Default. 

(a) The Credit Parties, taken as a whole, are solvent, able to pay their debts as they mature, have capital sufficient to carry on their
businesses and all businesses in which they are about to engage, and (i) as of the Closing Date, the fair present saleable value of their assets, taken as a whole, calculated on a going concern basis, is in excess of the amount of its
liabilities and (ii) subsequent to the Closing Date, the fair saleable value of their assets (calculated on a going concern basis), taken as a whole, will be in excess of the amount of its liabilities. 

(b) Except as disclosed in Schedule 5.8(b), no Credit Party has (i) any pending or threatened (in writing to any Credit
Party) litigation, arbitration, actions or proceedings that could reasonably be expected to have a Material Adverse Effect, and (ii) any indebtedness for borrowed money other than the Obligations and Funded Debt set forth on Schedule 7.8
hereof. 
 (c) No Credit Party is in violation of any applicable statute, law, rule, regulation or ordinance in any respect that
could reasonably be expected to have a Material Adverse Effect, nor is any Credit Party in violation of any order of any court, Governmental Body or arbitration board or tribunal. 

(d) No Credit Party or member of the Controlled Group maintains or contributes, or has any obligation to contribute to, or liability
under, any Pension Benefit Plan, any Multiemployer Plan or any Multiple Employer Plan other than (x) on the Closing Date, those listed on Schedule 5.8(d) hereto and (y) thereafter, as permitted under this Agreement. Further,
(i) each Credit Party and each member of the Controlled Group has met all applicable minimum funding requirements under the Pension Funding Rules in respect of each Pension Benefit Plan and no waiver of the Pension Funding Rules has been
applied for or obtained in the past five years; (ii) each Pension Benefit Plan which is intended to be a qualified plan under Section 401(a) of the Code as currently in effect has been determined by the Internal Revenue Service to be
qualified under Section 401(a) of the Code and the trust related thereto is exempt from federal income tax under Section 501(a) of the Code; (iii) no Credit Party or member of the Controlled Group has incurred any liability to the
PBGC other than for the payment of premiums, and there are no premium payments which have become due which are unpaid; (iv) no Pension Benefit Plan 

  
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has been terminated by the plan administrator thereof nor by the PBGC for which there is any unsatisfied material liability, and there is no occurrence which would reasonably be expected to cause
the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Benefit Plan; (v) except as would not reasonably be expected to have a Material Adverse Effect, the present value of the aggregate benefit liabilities under each
Pension Benefit Plan sponsored, maintained or contributed to by any Credit Party or any member of the Controlled Group (determined as of the end of the most recent plan year on the basis of the actuarial assumptions specified for funding purposes in
the most recent actuarial valuation for such Pension Benefit Plan), did not exceed the aggregate current fair market value of the assets of such Pension Benefit Plan; (vi) except as would not reasonably be expected to have a Material Adverse
Effect, no Credit Party or member of the Controlled Group has breached any of the responsibilities, obligations or duties imposed on it by ERISA with respect to any Plan; (vii) except as would not reasonably expected to have a Material Adverse
Effect, no Credit Party or member of the Controlled Group has nor any fiduciary of, nor any trustee to, any Plan, has engaged in a “prohibited transaction” described in Section 406 of the ERISA or Section 4975 of the Code;
(viii) no Termination Event has occurred and no Credit Party or member of the Controlled Group has taken any action which would reasonably be expected to constitute or result in a Termination Event; (ix) each Credit Party and each member
of the Controlled Group have made all material contributions due and payable with respect to each Plan; (x) no Credit Party or member of the Controlled Group has withdrawn, completely or partially, from any Multiemployer Plan so as to incur any
unsatisfied liability under the Multiemployer Pension Plan Amendments Act of 1980 and there exists no fact which would reasonably be expected to result in any such liability; and (xi) no Credit Party or any member of the Controlled Group has
received notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA. 

5.9 Patents, Trademarks, Copyrights and Licenses. All patents and patent applications registered with the United States
Patent and Trademark Office, trademarks and trademark applications registered with the United States Patent and Trademark Office, copyrights and copyright applications registered with the United States Copyright Office are set forth on Schedule
5.9, are valid and have been duly registered or filed with all appropriate Governmental Bodies and constitute all of the intellectual property rights that are necessary for the operation of the business of the Credit Parties, to the knowledge of
the Credit Parties, there is no objection to or pending challenge to the validity of any such patent, trademark, or copyright, and no Credit Party is aware of any grounds for any such challenge, except as set forth in Schedule 5.9. Each
patent, patent application, patent license, trademark, trademark application, trademark license, service mark, service mark application, service mark license, design rights, copyright, copyright application and copyright license that is necessary to
the conduct of the business of the Credit Parties and their Subsidiaries and owned or held by any Credit Party and all trade secrets used by any Credit Party consist of original material or property developed by such Credit Party, was lawfully
acquired by such Credit Party from the proper and lawful owner thereof or is otherwise lawfully licensed or used by the Credit Parties. With respect to all software used by any Credit Party (other than commercially available off-the-shelf software),
such Credit Party is in possession of all source and object codes related to each piece of software or is the beneficiary of a source code escrow agreement, each such source code escrow agreement being listed on Schedule 5.9. 

5.10 Licenses and Permits. Except as set forth in Schedule 5.10, each Credit Party (a) is in compliance with
and (b) has procured and is now in possession of, all licenses or permits required by any applicable federal, state, provincial or local law, rule or regulation for the operation of its business in each jurisdiction wherein it is now conducting
or proposes to conduct business and where the failure to procure such licenses or permits could reasonably be expected to have a Material Adverse Effect. 

  
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 5.11 Default of Indebtedness; No Default. Upon the contemporaneous repayment
in full and termination of VMC’s Wells Fargo Credit Facility, no Credit Party is in default in the payment of the principal of or interest on any Indebtedness or under any instrument or agreement under or subject to which any Indebtedness has
been issued and no event has occurred under the provisions of any such instrument or agreement that, in each case, with or without the lapse of time or the giving of notice, or both, constitutes or could constitute an Event of Default hereunder.

 5.12 No Default. No Credit Party is in default in the payment or performance of any of its material contractual
obligations and no default thereunder has occurred, in each case that with or without the lapse of time or the giving of notice, or both, constitutes or could constitute an Event of Default hereunder. 

5.13 No Burdensome Restrictions. No Credit Party is party to any contract or agreement the performance of which could
reasonably be expected to have a Material Adverse Effect. Each Credit Party has heretofore delivered or made available to Agent true and complete copies of all material contracts to which it is a party or to which it or any of its properties is
subject. No Credit Party has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that is not a Permitted
Encumbrance. 
 5.14 No Labor Disputes. No Credit Party is involved in any material labor dispute; there are no
material strikes or walkouts or union organization of any Credit Party’s employees threatened or in existence and no labor contract is scheduled to expire during the Term other than as set forth on Schedule 5.14. 

5.15 Margin Regulations. No Credit Party is engaged, nor will it engage, principally or as one of its important activities,
in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal
Reserve System as now and from time to time hereafter in effect. No part of the proceeds of any Advance will be used for “purchasing” or “carrying” “margin stock” as defined in Regulation U of such Board of Governors.

 5.16 Investment Company Act. No Credit Party is an “investment company” registered or required to be
registered under the Investment Company Act of 1940, as amended, nor is it controlled by such a company. 
 5.17
Disclosure. No representation or warranty made by any Credit Party in this Agreement or in any other Loan Document or in any financial statement, report, certificate or any other document furnished in connection herewith or therewith
contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading as of the time it was made or deemed made or delivered; provided that any Credit
Party’s representation and warranty as to any forecast, projection or other statement regarding future performance, future financial results or other future development is limited to the fact that such forecast, projection or statement was
prepared in good faith on the basis of information and assumptions that such Credit Party believed to be reasonable as of the date such material was prepared (it being understood that the projections are subject to uncertainties and contingencies,
many of which are beyond such Credit Party’s control, and that no assurance can be given that the projections will be realized). There is no fact known to any Credit Party or which reasonably should be known to such Credit Party that such
Credit Party has not disclosed to Agent in writing with respect to the transactions contemplated by this Agreement that could reasonably be expected to have a Material Adverse Effect. 

  
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 5.18 Swaps. No Credit Party is a party to, nor will it be a party to, any swap
agreement whereby such Credit Party has agreed or will agree to swap interest rates or currencies unless same provides that damages upon termination following an event of default thereunder are payable on an unlimited “two-way basis”
without regard to fault on the part of either party. 
 5.19 Conflicting Agreements. No provision of any mortgage,
indenture, contract, agreement, judgment, decree or order binding on any Credit Party or affecting the Collateral conflicts with, or requires any Consent that has not already been obtained to, or would in any way prevent the execution, delivery or
performance of, the terms of this Agreement or the other Loan Documents. 
 5.20 Application of Certain Laws and
Regulations. No Credit Party is subject to any law, statute, rule or regulation that regulates the incurrence of any Indebtedness that is not applicable to businesses generally, including laws, statutes, rules or regulations relative to common
or interstate carriers or to the sale of electricity, gas, steam, water, telephone, telegraph or other public utility services. 

5.21 Business and Property of Credit Parties. Upon and after the Closing Date, the Credit Parties do not propose to engage
in any business other than as set forth in Section 7.9 the business of manufacturing to supplying equipment and furniture to schools and activities necessary to conduct the foregoing. On the Closing Date, each Credit Party will own all
the property and possess all of the rights and Consents necessary for the conduct of the business of such Credit Party. 

5.22 Section 20 Subsidiaries. No Credit Party intends to use and shall not use any portion of the proceeds of the
Advances, directly or indirectly, to purchase during the underwriting period, or for 30 days thereafter, Ineligible Securities being underwritten by a Section 20 Subsidiary. 

5.23 Anti-Terrorism Laws. 
 (a) General. No Credit Party (nor to the knowledge of any Credit Party, any Affiliate of any Credit Party) is in violation of any Anti-Terrorism Law or engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 
 (b) Executive Order No. 13224. Neither any Credit Party (nor to the knowledge of any Credit Party, any Affiliate of any Credit Party) nor its respective agents acting or benefiting in any
capacity in connection with the Advances or other transactions hereunder, is any of the following (each a “Blocked Person”): 
 (i) a Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224; 

(ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is
otherwise subject to the provisions of, the Executive Order No. 13224; 
 (iii) a Person or entity with
which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; 

(iv) a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order No. 13224; 

  
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 (v) a Person or entity that is named as a “specially designated
national” on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list, or 

(vi) a Person or entity who is affiliated or associated with a Person or entity listed above. 

Neither any Credit Party nor to the knowledge of any Credit Party, any of its agents acting in any capacity in connection with the Advances or other
transactions hereunder (1) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (2) deals in, or otherwise engages in any transaction relating
to, any property or interests in property blocked pursuant to the Executive Order No. 13224. 
 5.24 Trading with
the Enemy. No Credit Party has engaged, nor does it intend to engage, in any business or activity prohibited by the Trading with the Enemy Act. 
 5.25 Ricoh Financing Statement. The Liens evidenced by UCC-1 Financing Statement No. 2009 3342604 filed with the Delaware Secretary of State on October 16, 2009 naming Ricoh
Americas Corporation (“Ricoh”), as secured party, and VMC, as debtor, only encumber office Equipment leased by VMC from Ricoh. 
 5.26 Commercial Tort Claims. No Credit Party holds any commercial tort claim it has asserted in excess of $250,000, except as set forth on Schedule 5.26. 

ARTICLE VI 

AFFIRMATIVE COVENANTS 
 Each Credit Party shall, until indefeasible payment in full in cash (or other immediately available funds) of the Obligations (other than Inchoate Obligations) and termination of this Agreement:

 6.1 Payment of Fees. With respect to Borrowers, pay to Agent, without duplication: (a) all fees and other
amounts required to be paid pursuant to this Agreement and the other Loan Documents, as and when the same become due; and (b) ON DEMAND all usual and customary fees and expenses that Agent incurs in connection with (i) the forwarding of
Advance proceeds and (ii) the establishment and maintenance of any Blocked Accounts or Depository Accounts as provided for in Section 4.15(h). Agent may, without making demand, charge Borrowers’ Account for all such fees and
expenses. 
 6.2 Conduct of Business and Maintenance of Existence and Assets. (a) Conduct its business
according to good business practices and maintain all of its properties useful or necessary in its business in good working order and condition (reasonable wear and tear excepted and except as may be disposed of or sold in accordance with the terms
of this Agreement), including all licenses, patents, copyrights, design rights, trade names, trade secrets and trademarks and take all actions necessary to enforce and protect the validity of any intellectual property right or other right included
in the Collateral; (b) keep in full force and effect its existence and comply with the laws and regulations governing the conduct of its business where the failure to do so could reasonably be expected to have a Material Adverse Effect; and
(c) make all such reports and pay all such franchise and other taxes and license fees and do all such other acts and things as may be lawfully required to maintain its rights, licenses, leases, powers and franchises under the laws of the United
States or any political subdivision thereof except where failure to do so could not reasonably be expected to have a Material Adverse Effect. 

  
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 6.3 Violations. Promptly notify Agent in writing of any violation of any law,
statute, regulation or ordinance of any Governmental Body, or of any agency thereof, applicable to any Credit Party that could reasonably be expected to have a Material Adverse Effect. 

6.4 Government Receivables. Take all steps necessary to protect Agent’s interest in the Collateral under the Federal
Assignment of Claims Act, the Uniform Commercial Code and all other applicable state or local statutes or ordinances, and deliver to Agent appropriately endorsed, any instrument or chattel paper connected with, any Receivable arising out of
contracts between any Credit Party and the United States, any state or any department, agency or instrumentality of any of them; provided, that such actions shall only be required under such applicable state or local statutes or ordinances
(i) at Agent’s request and (ii) with respect to a Receivable in excess of $500,000. 
 6.5 Financial
Covenants. 
 (a) Tangible Net Worth. Have as of each fiscal quarter of the Borrowers ending as of the date set forth
below a Tangible Net Worth for such fiscal quarter end in an amount not less than the amount set forth opposite such fiscal quarter end. 
  

					
	 Fiscal Quarter End
	  	Minimum Tangible Net Worth	 
	 January 31, 2012
	  	$	28,177,000	  
	 April 30, 2012
	  	$	24,654,000	  
	 July 31, 2012
	  	$	32,351,000	  
	 October 31, 2012
	  	$	37,468,000	  
	 January 31, 2012
	  	$	32,122,000	  

 (b) Fixed Charge Coverage Ratio. Cause to be maintained a Fixed Charge Coverage Ratio of not less
than 1.10 to 1.00 (i) for the two consecutive fiscal quarter period of the Borrowers ending July 30, 2012, (ii) for the three consecutive fiscal quarter period of the Borrowers ending October 31, 2012, and
(iii) for each consecutive four fiscal quarter period of the Borrowers ending thereafter. 
 (c) Minimum
EBITDA. Cause to be maintained, for the applicable consecutive fiscal month period ending as of the applicable fiscal month end set forth below, EBITDA as of such fiscal month end of not less than the amount set forth opposite the respective
fiscal month period below: 
  

					
	 Fiscal Month Period and Fiscal Month End
	  	EBITDA	 
	 Fiscal month ending December 2011
	  	$	(2,268,000	) 
	 Two consecutive fiscal months ending January 2012
	  	$	(6,006,000	) 
	 Fiscal month ending February 2012
	  	$	(1,896,000	) 
	 Two consecutive fiscal months ending March 2012
	  	$	(2,970,000	) 
	 Three consecutive fiscal months ending April 2012
	  	$	(3,294,000	) 
	 Four consecutive fiscal months ending May 2012
	  	$	(2,588,000	) 
	 Five consecutive fiscal months ending June 2012
	  	$	 1,683,000	  
	 Six consecutive fiscal months ending July 2012
	  	$	6,894,000	  
	 Seven consecutive fiscal months ending August 2012
	  	$	12,147,000	  
	 Eight consecutive fiscal months ending September 2012
	  	$	12,563,000	  
	 Nine consecutive fiscal months ending October 2012
	  	$	13,328,000	  
	 Ten consecutive fiscal months ending November 2012
	  	$	11,462,000	  
	 Eleven consecutive fiscal months ending December 2012
	  	$	9,988,000	  
	 Twelve consecutive fiscal months ending January 2013
	  	$	9,172,000	  

  
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 6.6 Execution of Supplemental Instruments. Execute and deliver to Agent from
time to time, upon demand, such supplemental agreements, statements, assignments and transfers, or instructions or documents relating to the Collateral, and such other instruments as Agent may reasonably request, in order that the full intent of
this Agreement may be carried into effect. 
 6.7 Payment of Indebtedness. Pay, discharge or otherwise satisfy at
or before maturity (subject, where applicable, to specified grace periods and, in the case of the trade payables, to normal payment practices) all its obligations and liabilities of whatever nature, except when the failure to do so could not
reasonably be expected to have a Material Adverse Effect or when the amount or validity thereof is currently being Properly Contested, subject at all times to any applicable subordination arrangement in favor of any Secured Party. 

  
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 6.8 Standards of Financial Statements. Cause all financial statements referred
to in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12, 9.13 and 9.14 as to which GAAP is applicable to fairly present in all material respects the financial condition and results of operations of
the Borrowers and their Subsidiaries (subject, in the case of interim financial statements, to normal year-end audit adjustments and the absence of footnotes) and to be prepared in reasonable detail and in accordance with GAAP applied consistently
throughout the periods reflected therein (except as concurred in by such reporting accountants or officer, as the case may be, and disclosed therein). 
 6.9 Post-Closing Covenants. 
 (a) On or before
the sixtieth (60th) day following the Closing Date
(or such later date as Agent shall agree in its sole discretion): 
 (i) cause Patent No. D471729 (App.
No. 29147210 for “Four Legged Chair”), Trademark Reg. No. 0,740,021 (MARTEST), and Trademark Reg. No. 4,040,857 (PLANSCAPE) the chain of title records in the Patent and Trademark Office to properly reflect VMC as the registered
owner of all such Intellectual Property; and 
 (ii) deliver to Agent, in form and substance satisfactory to
Agent, a Phase II environmental assessment in respect of the Real Property of Borrowers located at 1265 Bruce Street, Conway, AR 72034. 
 (b) On or before the ninetieth (90th) day following the Closing Date (or such later date as Agent shall agree in its sole discretion) deliver to Agent a credit card processor agreement in form and substance acceptable to Agent for
(i) credit card receivables processed by Discover and (ii) credit card receivables processed by American Express. 

(c) No later than thirty (30) days after Agent’s written request therefor (or such later date as Agent shall agree in its sole
discretion), deliver each of the following items, in form and substance satisfactory to Agent and Lenders, with respect to the Real Property of Borrowers located at 1265 Bruce Street, Conway, AR 72034: 

(i) an executed Mortgage in respect of such Real Property; 

(ii) a survey for such Real Property; and 

(iii) a fully paid mortgagee title insurance policy, in standard ALTA form, issued by a title insurance company reasonably
satisfactory to Agent, in an amount equal to not less than the fair market value of such Real Property, insuring such Mortgage to create a valid Lien on such Real Property with no exceptions that Agent shall not have approved in writing and no
survey exceptions. 

  
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 ARTICLE VII 
 NEGATIVE COVENANTS 
 No Credit Party shall, until indefeasible payment in
full in cash (or other immediately available funds) of the Obligations (other than Inchoate Obligations) and termination of this Agreement: 
 7.1 Merger, Consolidation, Acquisition and Sale of Assets. 
 (a)
Enter into any merger, consolidation or other reorganization with or into any other Person or acquire all or a substantial portion of the assets or Equity Interests of any Person or permit any other Person to consolidate with or merge with it,
except for (i) any merger, consolidation or reorganization between the Credit Parties, provided that any Borrower must be the surviving entity of any such merger, consolidation or reorganization to which it is a party or (ii) any merger,
consolidation or reorganization between a Credit Party and Subsidiaries of such Credit Party that are not Credit Parties so long as such Credit Party is the surviving entity of any such merger. 

(b) Sell, lease, transfer or otherwise dispose of any of its properties or assets, except (i) sales, leases, transfers and
dispositions permitted by Section 4.3 and (ii) any other sales, leases, transfers or dispositions expressly permitted by this Agreement. 
 7.2 Creation of Liens. Create or suffer to exist any Lien or transfer upon or against any of its property or assets now owned or hereafter acquired, except Permitted Encumbrances
provided that nothing herein constitutes an admission by any Secured Party that a Permitted Encumbrance has priority over any Lien in favor of Agent or any other Secured Party, and Agent and the other Secured Parties reserve their rights to
assert such priority as against any Permitted Encumbrance. 
 7.3 Guarantees. Become liable upon the obligations
or liabilities of any Person by assumption, endorsement or guaranty thereof or otherwise (other than to Secured Parties) except (a) as disclosed on Schedule 7.3, (b) guarantees made in the Ordinary Course of Business in respect of
(i) performance bonds (other than performance bonds in respect of sales of school furniture), surety or appeal bonds, notary public bonds and bonds in support of Borrowers’ prior self-insurance program up to an aggregate amount of $250,000
and (ii) unsecured bid bonds and unsecured performance bonds in respect of sales of school furniture, (c) the endorsement of checks in the Ordinary Course of Business and (d) guarantees in respect of Indebtedness otherwise permitted
hereunder. 
 7.4 Investments. Purchase or acquire obligations or Equity Interests of, or any other interest in,
any Person, or make any investments, advances, loans or extensions of credit to any Person, including any Parent, Subsidiary or Affiliate (each, an “Investment”) except with respect to: 

(a) the following cash equivalents (i) obligations issued or guaranteed by the United States of America or any agency thereof,
(ii) commercial paper with maturities of not more than 180 days and a published rating of not less than A-1 or P-1 (or the equivalent rating), (iii) certificates of time deposit and bankers’ acceptances having maturities of not more
than 180 days and repurchase agreements backed by United States government securities of a commercial bank if (x) such bank has a combined capital and surplus of at least $500,000,000, or (y) its debt obligations, or those of a holding
company of which it is a Subsidiary, are rated not less than A (or the equivalent rating) by a nationally recognized investment rating agency, (iv) bonds and other fixed income instruments (including tax-exempt bonds) rated investment grade
from companies or public entities, and mutual funds that invest substantially all of their assets in such bonds and other fixed income instruments, either owned directly by a Credit Party or managed on a Credit Party’s behalf by any nationally
recognized investment advisor who or which has assets under management in excess of $500,000,000, (v) repurchase agreements or similar arrangements with banks which have capital and surplus of not less than $500,000,000, (vi) U.S. money
market funds that invest solely in obligations issued or guaranteed by the United States of America or an agency thereof and (vii) mutual funds or money market funds that invest substantially all of their assets in instruments described in the
subsections above; 

  
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 (b) advances to officers, directors and employees of the Credit Parties in an aggregate
amount not to exceed $25,000 at any time outstanding, for travel, entertainment, relocation and other purposes in the Ordinary Course of Business and consistent with past practice; 

(c) Investments of Borrowers in any Guarantor and Investments of any Subsidiary in any Credit Party; 

(d) Investments received in satisfaction of judgments or pursuant to any plan or reorganization or similar arrangement upon the
bankruptcy or insolvency of trade creditors or account debtors; 
 (e) guarantees permitted by Section 7.3;

 (f) Investments existing as of the date hereof and set forth on Schedule 7.4 and any replacements, renewals or
extensions of any such Investments; provided that the amount of any such Investment is not increased at the time of such replacement, renewal or extension of such Investment except by an amount equal to a reasonable premium or other
reasonable amount paid in respect of the underlying obligations and fees and expenses reasonably incurred in connection with such replacement, renewal or extension; 
 (g) Investments in respect of prepaid expenses, negotiable instruments held for collection or lease, utility, workers’ compensation, in each case in the Ordinary Course of Business; 

(h) Investments pursuant to employee wage and benefit plans for the benefit of the Credit Parties’ employees (including any
“rabbi trust” account used in connection with such purposes); and 
 (i) additional Investments not exceeding $50,000
in the aggregate outstanding at any time. 
 7.5 [Intentionally Omitted.]  

7.6 Capital Expenditures. Contract for, purchase or make any expenditure or commitments for Capital Expenditures in any
fiscal year in an aggregate amount for all Borrowers in excess of $4,000,000. 
 7.7 Dividends. Declare, pay or
make any dividend or distribution on any shares of the common stock or preferred stock of any Credit Party (other than dividends or distributions payable in its stock, or split-ups or reclassifications of its stock, including, in respect of
VMC’s Rights Plan) or apply any of its funds, property or assets to the purchase, redemption or other retirement of any common or preferred stock, or of any options to purchase or acquire any such shares of common or preferred stock of any
Credit Party (collectively, “Restricted Payments”), except that: 
 (a) each Subsidiary may make Restricted Payments
to any Credit Party that owns an Equity Interest in such Subsidiary; 
 (b) each Credit Party and Subsidiary may purchase,
redeem or otherwise acquire Equity Interests issued by it solely with the proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests; and 

  
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 (c) each Borrower and Subsidiary may purchase (i) Equity Interests in any Credit Party
or options with respect to Equity Interests in any Credit Party held by directors, employees or management of any Borrower or any of its Subsidiaries (or their estates or authorized representatives) in connection with the death, disability or
termination of employment of any such directors, employees or management and (ii) Equity Interests in any Credit Party for the purpose of holding such Equity Interest for future issuance under an employee stock plan. 

7.8 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness (exclusive of trade debt) except in respect
of:: 
 (a) the Obligations; 
 (b) Indebtedness in respect of Capital Expenditures permitted under Section 7.6; 
 (c) without duplication, guarantees of any Credit Party or Subsidiary in respect of Indebtedness of the Borrowers expressly permitted hereunder; 

(d) intercompany Indebtedness between the Credit Parties; 
 (e) Indebtedness of any Credit Party or Subsidiary thereof incurred in the Ordinary Course of Business in respect of bank guarantees, letters of credit or similar instruments to support local regulatory
requirements; 
 (f) Indebtedness disclosed on Schedule 7.8 and any permitted Refinancing Indebtedness in respect
thereof; 
 (g) additional unsecured Indebtedness in an aggregate principal amount not to exceed $500,000 at any time
outstanding; 
 (h) Indebtedness in respect of Capitalized Lease Obligations not in excess of $150,000 in the aggregate at any
time outstanding, solely to the extent arising due to changes imposed subsequent to the Closing Date by GAAP requiring leases characterized as operating leases as of the Closing Date (or any renewal or replacement thereof) to be recharacterized as a
Capital Lease Obligation; in the aggregate at any time outstanding; 
 (i) Guarantees permitted under Section 7.3;
and 
 (j) other Indebtedness incurred in the Ordinary Course of Business or arising as result of operations of the Credit
Parties in the Ordinary Course of Business, in each case not constituting Funded Debt and not otherwise prohibited under this Agreement or any other Loan Document. 
 7.9 Nature of Business. Substantially change the nature of the business in which it is presently engaged or any business substantially related or incidental thereto or any reasonable
extension thereof, as determined in good faith by the Credit Parties. 
 7.10 Transactions with Affiliates.
Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or lease any property to, or otherwise enter into any transaction or deal with, any Affiliate, except transactions on an arm’s-length basis on terms and
conditions no less favorable than terms and conditions that would have been obtainable from a Person other than an Affiliate, except: 

  
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 (a) any contract, agreement or business arrangement between Credit Parties; and 

(b) reasonable and customary director, officer and employee compensation (including bonuses) and other benefits (including retirement,
health, stock option and other benefit plans, any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans) and
reasonable and customary indemnification and reimbursement arrangements with respect to such Persons, in each case incurred in the Ordinary Course of Business and consistent in all material respects with past practice. 

7.11 [Intentionally Omitted.]  
 7.12 Subsidiaries. 
 (a) Form or acquire any Subsidiary unless
(i) such Subsidiary is not a Foreign Subsidiary and such Subsidiary expressly joins in this Agreement as a borrower or becomes a Guarantor of the Obligations and grants a security interest in its assets (subject to the same exceptions and
limitations as the security interest granted by the Credit Parties hereunder) and becomes jointly and severally liable for the obligations of Borrowers hereunder, under the Revolving Credit Notes and under any other agreement between any Borrower
and Agent or Lenders, in each case pursuant to a joinder agreement acceptable to Agent, and (ii) Agent shall have received all documents, including legal opinions, it may reasonably require to establish compliance with each of the foregoing
conditions. 
 (b) Enter into any partnership, joint venture or similar arrangement. 

7.13 Fiscal Year and Accounting Changes. Change, without the prior written consent of Agent to be given or withheld in its
sole discretion, its fiscal year end from January 31 or make any change (a) in accounting treatment and reporting practices except as required by GAAP or the Securities Act or (b) in tax reporting treatment except as required by law.

 7.14 Pledge of Credit. Now or hereafter pledge any Secured Party’s credit on any purchases or for any
purpose whatsoever or use any portion of any Advance in or for any business other than such Credit Party’s business as conducted on the date of this Agreement. 
 7.15 Amendment of Articles of Incorporation, By-Laws. Amend, modify or waive any term or material provision of its Certificate of Incorporation or By-Laws in a manner adverse to Agent or any
other Secured Party in any material respect (including, without limitation of those amendments which may be adverse to the Secured Parties, any such amendment that changes the manner in which members of the board of directors are elected, vacancies
on such board are filled, the number of members that may constitute such board (or any provision pursuant to which the number of members may be increased or decreased) or the manner in which any class of shares is entitled to vote or the manner in
which the weight of such vote is calculated, including, in all cases any amendment to Article IX of the Certificate of Incorporation of VMC, shall, in each case, be materially adverse to Agent and the Lenders). 

7.16 Compliance with ERISA. (a)(i) Maintain, or permit any member of the Controlled Group to maintain, or (ii) become
obligated to contribute to, or permit any member of the Controlled Group to become obligated to contribute to, any Pension Benefit Plan, other than those Pension Benefit Plans disclosed on Schedule 5.8(d) or those Pension Benefit Plans for
which the Agent has provided its prior written consent; (b) engage, or permit any member of the Controlled Group to engage, in any non-exempt “prohibited transaction”, as that term is defined in section 406 of ERISA and
Section 4975 of the Code that could reasonably expected to have a Material Adverse Effect, (c) fail to satisfy, or permit any 

  
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member of the Controlled Group to fail to satisfy, the minimum funding standards of the Pension Funding Rules, (d) except as could not reasonably be expected to have a Material Adverse
Effect terminate, or permit any member of the Controlled Group to terminate, any Pension Benefit Plan where such event could result in any liability of any Credit Party or any member of the Controlled Group or the imposition of a lien on the
property of any Credit Party or any member of the Controlled Group pursuant to Section 430(k) of the Code or Section 4068 of ERISA, (e) incur, or permit any member of the Controlled Group to incur, any withdrawal liability to any
Multiemployer Plan that could reasonably be expected to have a Material Adverse Effect; (f) fail promptly to notify Agent of the occurrence of any Termination Event that could reasonably be expected to have a Material Adverse Effect,
(g) fail to comply, or permit a member of the Controlled Group to fail to comply, with the requirements of ERISA or the Code or other Applicable Laws in respect of any Plan, that could reasonably be expected to have a Material Adverse Effect or
(h) postpone or delay, or allow any member of the Controlled Group to postpone or delay, any funding requirement under the Pension Funding Rules with respect of any Pension Benefit Plan. 

7.17 Prepayment of Funded Debt. At any time, directly or indirectly, prepay any Funded Debt (other than the Obligations),
or repurchase, redeem, retire or otherwise acquire any Funded Debt of any Credit Party, in an amount not in excess of $150,000 in the aggregate in any fiscal year of the Borrowers. 

7.18 Anti-Terrorism Laws. No Credit Party shall, until satisfaction in full of the Obligations and termination of this
Agreement, nor shall it permit agent to: 
 (a) Conduct any business or engage in any transaction or dealing with any Blocked
Person, including the making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person. 
 (b) Deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order No. 13224. 

(c) Engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in the Executive Order No. 13224, the USA PATRIOT Act or any other Anti-Terrorism Law. The Credit Parties shall deliver to Lenders any certification or other evidence requested from time to time by any
Lender in its sole discretion, confirming the Credit Parties’ compliance with this Section 7.18. 
 7.19
Membership/Partnership Interests. Treat or permit any of its Subsidiaries to (a) treat its limited liability company membership interests or partnership interests, as the case may be, as securities as contemplated by the definition
of “security” in Section 8-102(15) and by Section 8-103 of Article 8 of Uniform Commercial Code or (b) certificate its limited liability company membership interests or partnership interests, as the case may be, unless, in
each case, such certificates are contemporaneously with such treatment delivered to Agent together with an endorsement in blank. 
 7.20 Trading with the Enemy Act. Engage in any business or activity in violation of the Trading with the Enemy Act. 
 7.21 Clean Down. Commencing in calendar year 2012, permit Undrawn Availability to be less than $6,000,000 for a period of 60 consecutive days during the last fiscal quarter of each fiscal
year of Borrowers. 
 7.22 Leases. Enter as lessee into any lease arrangement for real or personal property
(unless capitalized and permitted under Section 7.6) if after giving effect thereto, aggregate annual rental payments for all leased property would exceed $10,000,000 in any one fiscal year in the aggregate for all Borrowers. 

  
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 ARTICLE VIII 
 CONDITIONS PRECEDENT 
 8.1 Conditions to Initial Advances.
The agreement of Lenders to make the initial Advances requested to be made on the Closing Date , and of Agent to issue or cause to be issued any Letter(s) of Credit to be issued on the Closing Date, if any, is subject to the satisfaction, or
waiver by Agent, immediately prior to or concurrently with the making of such Advances, of the following conditions precedent: 

(a) Loan Documents. Agent shall have received (i) the Revolving Credit Notes duly executed and delivered by an authorized
officer of each Borrower, and (ii) each other Loan Document to be delivered on the Closing Date executed and delivered by each of the parties thereto; 
 (b) Filings, Registrations and Recordings. Each document (including any Uniform Commercial Code financing statement) required by this Agreement, any related agreement or under law or reasonably
requested by Agent to be filed, registered or recorded is in form appropriate for filing, registration and recordation, as applicable, in order to create, in favor of Agent, a perfected, first priority security interest in or lien upon the
Collateral shall have been properly filed, registered or recorded in each jurisdiction in which the filing, registration or recordation thereof is so required or requested, and Agent shall have received an acknowledgment copy, or other evidence
satisfactory to it, of each such filing, registration or recordation and satisfactory evidence of the payment of any necessary fee, tax or expense relating thereto; 
 (c) Corporate Proceedings of Borrowers. Agent shall have received a copy of the resolutions in form and substance reasonably satisfactory to Agent, of the Board of Directors of each Borrower
authorizing (i) the execution, delivery and performance of this Agreement, the Revolving Credit Notes, each Mortgage, and any related agreements, (collectively the “Documents”) and (ii) the granting by each Borrower of the
security interests in and liens upon the Collateral in each case certified by the Secretary or an Assistant Secretary of each Borrower as of the Closing Date; and, such certificate shall state that the resolutions thereby certified have not been
amended, modified, revoked or rescinded as of the date of such certificate; 
 (d) Incumbency Certificates of Borrowers.
Agent shall have received a certificate of the Secretary or an Assistant Secretary of each Borrower, dated the Closing Date, as to the incumbency and signature of the officers of each Borrower executing this Agreement, the other Loan Documents, any
certificate or other documents to be delivered by it pursuant hereto, together with evidence of the incumbency of such Secretary or Assistant Secretary; 
 (e) Corporate Proceedings of Guarantors. Agent shall have received a copy of the resolutions in form and substance reasonably satisfactory to Agent, of the Board of Directors of each Guarantor
authorizing the execution, delivery and performance of the Guaranty and each other Loan Document to which it is a party certified by the Secretary or an Assistant Secretary of each Guarantor as of the Closing Date; and, such certificate shall state
that the resolutions thereby certified have not been amended, modified, revoked or rescinded as of the date of such certificate; 

  
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 (f) Incumbency Certificates of Guarantors. Agent shall have received a certificate of
the Secretary or an Assistant Secretary of each Guarantor, dated the Closing Date, as to the incumbency and signature of the officers of each Guarantor executing this Agreement, any certificate or other documents to be delivered by it pursuant
hereto, together with evidence of the incumbency of such Secretary or Assistant Secretary; 
 (g) Certificates. Agent
shall have received a copy of the Articles or Certificate of Incorporation of each Borrower and each Guarantor, and all amendments thereto, certified by the Secretary of State or other appropriate official of its jurisdiction of Incorporation
together with copies of the By-Laws of each Borrower and each Guarantor and all agreements of each Borrower’s and each Guarantor’s shareholders certified as accurate and complete by the Secretary of each Borrower and such Guarantor;

 (h) Good Standing Certificates. Agent shall have received good standing certificates for each Borrower and each
Guarantor dated not more than 30 days prior to the Closing Date, issued by the Secretary of State or other appropriate official of each Borrower’s and each Guarantor’s jurisdiction of incorporation and each jurisdiction where the failure
to be so qualified could reasonably be expected to have a Material Adverse Effect; 
 (i) Legal Opinion. Agent shall have
received the executed legal opinion of Gibson, Dunn & Crutcher LLP in form and substance reasonably satisfactory to Agent, which shall cover such matters incident to the transactions contemplated by this Agreement, the other Loan Documents,
and related agreements as Agent may reasonably require and each Credit Party hereby authorizes and directs such counsel to deliver such opinions to Agent and Lenders; 
 (j) No Litigation. (i) No litigation, investigation or proceeding before or by any arbitrator or Governmental Body shall be continuing or threatened in writing against any Borrower or any
Guarantor or against the officers or directors of any Borrower or any Guarantor (A) in connection with this Agreement, the other Loan Documents or any of the transactions contemplated thereby and that, in the reasonable opinion of Agent, is
deemed material or (B) that could, in the reasonable opinion of Agent, have a Material Adverse Effect; and (ii) no injunction, writ, restraining order or other order of any nature materially adverse to any Borrower or any Guarantor or the
conduct of its business or inconsistent with the due consummation of the Transactions shall have been issued by any Governmental Body; 
 (k) Financial Condition Certificates. Agent shall have received an executed Financial Condition Certificate in the form of Exhibit 8.1(k) (the “Financial Condition
Certificate”). 
 (l) Collateral Examination. Agent shall have completed Collateral examinations and received
appraisals, the results of which shall be in form and substance satisfactory to Agent in its Permitted Discretion, of the Receivables, Inventory, General Intangibles, Real Property, Leasehold Interest and Equipment of each Borrower and all books and
records in connection therewith; 
 (m) Fees. Agent shall have received all fees payable to Agent and Lenders on or prior
to the Closing Date hereunder, including pursuant to Article III hereof; 
 (n) Pro Forma Financial Statements.
Agent shall have received a copy of the Projections and Pro Forma Financial Statements, which shall demonstrate the ability of Borrowers to service their Indebtedness and perform all their Obligations hereunder and otherwise which must be
satisfactory in all respects to Agent; 

  
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 (o) Insurance. Agent shall have received in form and substance satisfactory to Agent,
certified copies of Borrowers’ casualty insurance policies, together with loss payable endorsements on Agent’s standard form of loss payee endorsement naming Agent as loss payee, and certified copies of Borrowers’ liability insurance
policies, together with endorsements naming Agent as a co-insured and lender loss payee, as may be required by Agent, and if any Real Property is located in an area designated as a flood hazard area by any Governmental Body, the Borrowers will
provide the Agent, at the Borrowers’ expense, a policy of flood insurance in an amount equal to the lesser of (i) the value of the applicable Real Property to be insured and (ii) the maximum amount available under the federal flood
insurance program; 
 (p) Title Insurance. Agent shall have received fully paid mortgagee title insurance policies (or
binding commitments to issue title insurance policies, marked to Agent’s satisfaction to evidence the form of such policies to be delivered with respect to the Mortgage delivered on the Closing Date), in standard ALTA form, issued by a title
insurance company reasonably satisfactory to Agent, each in an amount equal to not less than the fair market value of the Real Property subject to a Mortgage on the Closing Date, insuring such Mortgage to create a valid Lien on the applicable Real
Property with no exceptions that Agent shall not have approved in writing and no survey exceptions; 
 (q) Environmental
Reports. Agent shall have received all environmental studies and reports prepared by independent environmental engineering firms with respect to all Real Property owned or leased by any Credit Party, including, Phase I environmental assessments
and satisfactory flood certifications; 
 (r) Payment Instructions. Agent shall have received written instructions from
Borrowing Agent directing the application of proceeds of the initial Advances made pursuant to this Agreement; 
 (s) Blocked
Accounts. Agent shall have received duly executed agreements establishing the Blocked Accounts or Depository Accounts with financial institutions acceptable to Agent for the collection or servicing of the Receivables and proceeds of the
Collateral; 
 (t) Consents. Agent shall have received any and all Consents necessary to permit the effectuation of the
transactions contemplated by this Agreement and the other Loan Documents; and, Agent shall have received such Consents and waivers of such third parties as might assert claims with respect to the Collateral, as Agent and its counsel shall deem
necessary; 
 (u) No Adverse Material Change. (i) since January 31, 2011, there shall not have occurred any
event, condition or state of facts that could reasonably be expected to have a Material Adverse Effect and (ii) no representations made or information supplied to Agent or Lenders shall have been proven to be inaccurate or misleading in any
material respect; 
 (v) Leasehold Agreements. Agent shall have received landlord, mortgagee or warehouseman agreements
satisfactory to Agent with respect to all premises leased by the Credit Parties at which Inventory and books and records are located; 
 (w) Mortgages. Agent shall have received in form and substance satisfactory to Lenders (i) an executed Mortgage in respect of the Credit Parties’ Real Property located at 1701 Sturgis
Road, Conway, Arkansas and (ii) title policies and (ii) surveys, for such Real Property; 

  
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 (x) Contract Review. Agent shall have reviewed (i) all material contracts of the
Credit Parties including leases, union contracts, labor contracts, vendor supply contracts, license agreements and distributorship agreements and (ii) all agreements with trade vendors including terms of sales provided to the Credit Parties and
any remaining past due amounts owed to vendors, and such contracts and agreements, shall be satisfactory in all respects to Agent; 
 (y) Closing Certificate. Agent shall have received a closing certificate signed by the Vice President Finance of each Credit Party dated as of the date hereof, stating that (i) all
representations and warranties set forth in this Agreement and the other Loan Documents are true and correct in all respects on the Closing Date (ii) the Credit Parties are on such date in compliance with all the terms and provisions set forth
in this Agreement and the other Loan Documents and (iii) on such date (after giving effect to the repayment and termination of VMC’s Wells Fargo Credit Facility) no Default or Event of Default has occurred or is continuing; 

(z) Borrowing Base. Agent shall have received a Borrowing Base Certificate from Borrowers that the aggregate amount of Eligible
Receivables and Eligible Inventory is sufficient in value and amount to support Advances in the amount requested by Borrowers on the Closing Date; 
 (aa) Undrawn Availability. After giving effect to the initial Advances hereunder, Borrowers shall have Undrawn Availability (after payment of all fees and transaction expenses in connection with
the Loan Documents, and subtraction of all trade payables aged beyond 60 days past due) of at least $5,500,000; and 
 (bb)
Compliance with Laws. Agent shall be reasonably satisfied that each Credit Party is in compliance with all pertinent federal, state, local or territorial regulations, including those with respect to the Federal Occupational Safety and Health
Act, the Environmental Protection Act, ERISA and the Trading with the Enemy Act. 
 (cc) Repayment of Indebtedness. Agent
shall have received a copy of a payoff letter and lien releases in respect of the Indebtedness of Borrowers outstanding under the Second Amended and Restated Credit Agreement, dated as of March 12, 2008, between VMC and Wells Fargo, National
Association (as in effect on the date hereof, “VMC’s Wells Fargo Credit Facility”), and all Indebtedness and commitments to lend thereunder shall be paid in full and terminated, as applicable, on the Closing Date substantially
contemporaneously with the initial Advances made hereunder. 
 (dd) Corporate. Agent shall be reasonably satisfied with
the legal and capital structure of the Credit Parties and their respective Subsidiaries. 
 (ee) Other. All
(i) corporate and other proceedings, and all documents, instruments and other legal matters in connection with the Transactions shall be satisfactory in form and substance to Agent and its counsel, and (ii) documents, instruments and
agreements required to be delivered by or on behalf of Borrowers and Guarantors pursuant to the “closing checklist” provided by Agent in connection with this Agreement shall be delivered in form and substance satisfactory to Agent and its
counsel. 

  
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 8.2 Conditions to Each Advance. The agreement of Lenders to make any Advance
requested to be made on any date (including the initial Advance), and of Agent to issue or cause to be issued any Letter of Credit requested to be issued on any date (including the Closing Date), is subject to the satisfaction of the following
conditions precedent as of the date such Advance is made: 
 (a) Representations and Warranties. Each of the
representations and warranties made by any Credit Party in or pursuant to this Agreement, the other Loan Documents and any related agreements to which it is a party, and each of the representations and warranties contained in any certificate,
document or financial or other statement furnished at any time under or in connection with this Agreement, the other Loan Documents or any related agreement shall be true and correct in all material respects (except that any such representation or
warranty that is already qualified or modified by materiality shall be true and correct in all respects) on and as of such date as if made on and as of such date, except for those representations and warranties that relate solely to an earlier date,
in which case such representation or warranty shall be true and correct in all material respects as of such date; 
 (b) No
Default. No Event of Default or Default shall have occurred and be continuing on such date, or would exist after giving effect to the Advances requested to be made, on such date; 

(c) No Material Adverse Effect. No Material Adverse Effect shall have occurred on or prior to such date, or would result after
giving effect to the Advances requested to be made on such date; 
 Provided, however, that, notwithstanding Sections
8.2(a), (b) and (c), Agent, in its sole discretion, may continue to make Advances notwithstanding the existence of an Event of Default or Default and that any Advances so made shall not be deemed a waiver of any such Event of
Default or Default and shall not obligate any Secured Party to make any future Advances; and 
 (d) Maximum Advances. In
the case of any type of Advance requested to be made, after giving effect thereto, the aggregate amount of such type of Advance shall not exceed the maximum amount of such type of Advance permitted under this Agreement. 

Each request for an Advance by any Borrower hereunder shall constitute a representation and warranty by each Borrower as of the date of
such Advance that the conditions contained in this subsection shall have been satisfied. 
 ARTICLE IX 

INFORMATION AS TO CREDIT PARTIES 
 Until indefeasible payment in full in cash (or other immediately available funds) of the Obligations (other than Inchoate Obligations) and termination of this Agreement, each Credit Party shall, or
(except with respect to Section 9.11) shall cause Borrowing Agent on its behalf to: 
 9.1 Disclosure of
Material Matters. Immediately upon learning thereof, report to Agent all matters materially adversely affecting the value, enforceability or collectibility of any portion of the Collateral in excess of $100,000 in the aggregate (other than
Inventory held by employees of the Credit Parties for marketing and sales purposes not in excess of $10,000 in the aggregate), including any Credit Party’s reclamation or repossession of, or the return to any Credit Party of, a material amount
of goods or claims or disputes asserted by any Customer or other obligor. 
 9.2 Schedules. During the Peak
Season, deliver to Agent on or before Wednesday of each week (or as frequently as Agent shall require during the existence of a Default) as and for the prior week (a) accounts receivable ageings inclusive of reconciliations to the general
ledger, (b) accounts payable schedules inclusive of reconciliations to the general ledger, (c) Inventory reports and (d) a Borrowing 

  
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Base Certificate in form and substance satisfactory to Agent (which shall be calculated as of the last day of the prior week and which shall not be binding upon Agent or restrictive of
Agent’s rights under this Agreement). At all times other than during the Peak Season, deliver to Agent on or before the fifteenth (15th) day of each month (or as frequently as Agent shall require during the existence of a Default) as and
for the prior month (a) accounts receivable ageings inclusive of reconciliations to the general ledger, (b) accounts payable schedules inclusive of reconciliations to the general ledger, (c) Inventory reports and (d) a Borrowing
Base Certificate in form and substance satisfactory to Agent (which shall be calculated as of the last day of the prior month and which shall not be binding upon Agent or restrictive of Agent’s rights under this Agreement). Borrowers shall also
deliver to Agent on or before Wednesday of each week (or as frequently as Agent shall require during the existence of a Default) as and for the prior week, a report of the sales and collections activity for such week. In addition, each Borrower will
deliver to Agent at such intervals as Agent may require: (i) confirmatory assignment schedules, (ii) copies of Customer’s invoices, (iii) evidence of shipment or delivery, and (iv) such further schedules, documents and/or
information regarding the Collateral as Agent may require including trial balances and test verifications. Agent shall have the right to confirm and verify all Receivables by any manner and through any medium it considers advisable and may do
whatever it deems reasonably necessary to protect its interests hereunder. The items to be provided under this Section 9.2 are to be in form satisfactory to Agent and executed by Borrowing Agent and delivered to Agent from time to time
solely for Agent’s convenience in maintaining records of the Collateral, and any Borrower’s failure to deliver any of such items to Agent shall not affect, terminate, modify or otherwise limit Agent’s Lien with respect to the
Collateral. 
 9.3 Environmental Reports. Furnish Agent, concurrently with the delivery of the financial
statements referred to in Sections 9.7 and 9.8, with a Compliance Certificate stating (to the best of his knowledge) that each Credit Party is in compliance in all material respects with all federal, state and local Environmental Laws. To the
extent any Credit Party is not in compliance with the foregoing laws, the certificate shall set forth with specificity all areas of non-compliance and the proposed action such Credit Party will implement in order to achieve full compliance.

 9.4 Litigation. Promptly notify Agent in writing of any claim, litigation, suit or administrative proceeding
affecting any Credit Party, whether or not the claim is covered by insurance, and of any litigation, suit or administrative proceeding, which in any such case adversely affects the Collateral or that could reasonably be expected to have a Material
Adverse Effect. 
 9.5 Material Occurrences. Promptly notify Agent in writing upon the occurrence of (a) any
Event of Default or Default; (b) any event, development or circumstance whereby any financial statements or other reports furnished to Agent fail in any material respect to present fairly, in accordance with GAAP consistently applied (after
giving effect to any reconciliation required to accompany such financial statements pursuant to Section 1.1), the financial condition or operating results of any Borrower as of the date of such statements; (c) any accumulated
retirement plan funding deficiency which, if such deficiency continued for two plan years and was not corrected as provided in Section 4971 of the Code, could subject any Credit Party to a tax imposed by Section 4971 of the Code;
(d) each and every default by any Credit Party that might result in the acceleration of the maturity of any Funded Debt, including the names and addresses of the holders of such Funded Debt with respect to which there is a default existing or
with respect to which the maturity has been or could be accelerated, and the amount of such Funded Debt; and (e) any other development in the business or affairs of any Credit Party that could reasonably be expected to have a Material Adverse
Effect; in each case describing the nature thereof and the action the Credit Parties propose to take with respect thereto. 

  
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 9.6 Government Receivables. Upon request of Agent, provide Agent with a
listing of all Receivables that arise out of contracts between any Credit Party and the United States, any state, or any department, agency or instrumentality of any of them, in such reasonable detail as Agent may require. 

9.7 Annual Financial Statements. Furnish Agent and Lenders within ninety (90) days after the end of each fiscal year
of VMC, financial statements of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis including statements of income and stockholders’ equity and cash flow from the beginning of the current fiscal year to
the end of such fiscal year and the balance sheet as at the end of such fiscal year, all prepared in accordance with GAAP consistently applied, and in reasonable detail and reported upon without a “going concern” or like qualification by
an independent certified public accounting firm selected by Borrowers and satisfactory to Agent (the “Accountants”). The report of the Accountants shall be prepared in accordance with generally accepted accounting standards. In
addition, the reports shall be accompanied by a Compliance Certificate. 
 9.8 Quarterly Financial Statements.
Furnish Agent and Lenders within forty five (45) days after the end of (i) each fiscal quarter (other than the fourth fiscal quarter), an unaudited balance sheet of Borrowers and their Subsidiaries on a consolidating (if applicable) and
consolidated basis and unaudited statements of income and stockholders’ equity and cash flow of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis reflecting results of operations from the beginning of
the fiscal year to the end of such quarter and for such quarter, prepared on a basis consistent with prior practices and fairly representing the financial condition of the Borrowers in all material respects, subject to normal and recurring year end
adjustments and to the absence of footnotes and (ii) the fourth fiscal quarter a summary of the last three month’s profits and losses, and cash flow. The reports shall be accompanied by a Compliance Certificate. 

9.9 Monthly Financial Statements. Furnish Agent and Lenders within thirty (30) days after the end of each month, an
unaudited balance sheet of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis and unaudited statements of income and stockholders’ equity and cash flow of Borrowers and their Subsidiaries on a
consolidating (if applicable) and consolidated basis reflecting results of operations from the beginning of the fiscal year to the end of such month and for such month, prepared on a basis consistent with prior practices and fairly representing the
financial condition of the Borrowers in all material respects, subject to normal and recurring year end adjustments and to the absence of footnotes. The reports shall be accompanied by a Compliance Certificate. 

9.10 Other Reports. Furnish Agent as soon as available, but in any event within ten (10) days after the issuance
thereof, (a) with copies of such financial statements, reports and returns as each Borrower shall send to its stockholders, (b) with copies of each annual report, proxy or financial statement or other report or communication sent to the
shareholders of Borrowers, and copies of all annual, regular, periodic and special reports and registration statements which Borrowers may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, and not otherwise
required to be delivered to Lenders pursuant to other provisions of this Section, and (c) with copies of any other report or other document that was filed by Borrower or any of its Subsidiaries with any Governmental Authority; 

9.11 Additional Information. Furnish Agent with such additional information as Agent shall reasonably request in order to
enable Agent to determine whether the terms, covenants, provisions and conditions of this Agreement and the Revolving Credit Notes have been complied with by the Credit Parties including, without the necessity of any request by Agent,
(a) copies of all environmental audits and reviews, (b) at least thirty (30) days prior thereto, notice of any Credit Party’s opening of any new office or place of business or any Credit Party’s closing of any existing
office or place of business (other than home offices of individual marketing and sales employees and regional sales managers of the Credit 

  
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Parties), and (c) promptly upon any Credit Party’s learning thereof, notice of any labor dispute to which any Credit Party may become a party, any strikes or walkouts relating to any of
its plants or other facilities, and the expiration of any labor contract to which any Credit Party is a party or by which any Credit Party is bound. 
 9.12 Projected Operating Budget. Commencing with fiscal year 2012, furnish Agent and Lenders, (a) no later than thirty (30) days prior to the beginning of each Borrower’s
fiscal years a draft of, and (b) no later than thirty (30) days after the beginning of each such fiscal years a final board of directors approved, month by month projected operating budget and cash flow of Borrowers and their Subsidiaries
on a consolidating (if applicable) and consolidated basis for such fiscal year (including an income statement for each month and a balance sheet as at the end of the last month in each fiscal quarter), such projections, in the case of the foregoing
clause (b), to be accompanied by a certificate signed by the President or Vice President Finance of each Borrower to the effect that such projections have been prepared on the basis of sound financial planning practice consistent with past budgets
and financial statements and that such officer has no reason to question the reasonableness of any material assumptions on which such projections were prepared. 
 9.13 Variances From Operating Budget. Furnish Agent, concurrently with the delivery of the financial statements referred to in Section 9.7 and each quarterly report, a written
report summarizing all material variances from budgets submitted by Borrowers pursuant to Section 9.12 and a discussion and analysis by management with respect to such variances. 

9.14 Notice of Suits, Adverse Events. Furnish Agent with prompt written notice of: (a) any lapse or other termination
of any Consent issued to any Credit Party by any Governmental Body or any other Person that is material to the operation of any Credit Party’s business; (b) any refusal by any Governmental Body or any other Person to renew or extend any
such Consent; and (c) copies of any periodic or special reports filed by any Credit Party with any Governmental Body or Person, if such reports indicate any material change in the business, operations, affairs or condition of any Credit Party,
or if copies thereof are requested by Lender; and (d) copies of any material notices and other communications from any Governmental Body or Person that specifically relate to any Credit Party. 

9.15 ERISA Notices and Requests. Furnish Agent with prompt written notice in the event that (a) any Credit Party or
any member of the Controlled Group knows or has reason to know that a Termination Event has occurred, together with a written statement describing such Termination Event and the action, if any, which any Credit Party or any member of the Controlled
Group has taken, is taking, or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, Department of Labor or PBGC with respect thereto, (b) any Credit Party or any member of the
Controlled Group knows or has reason to know that a prohibited transaction (as defined in Sections 406 of ERISA and 4975 of the Code) that could reasonably be expected to have a Material Adverse Effect has occurred together with a written statement
describing such transaction and the action which such Credit Party or such member of the Controlled Group (as applicable) has taken, is taking or proposes to take with respect thereto, (c) a funding waiver request has been filed with respect to
any Pension Benefit Plan together with all communications received by any Credit Party or any member of the Controlled Group with respect to such request, (d) any increase in the benefits of any frozen Pension Benefit Plan as set forth in
Schedule 5.8(d), (e) any Credit Party or any member of the Controlled Group shall receive from the PBGC a notice of intention to terminate a Pension Benefit Plan or to have a trustee appointed to administer a Pension Benefit Plan,
together with copies of each such notice, (f) any Credit Party or any member of the Controlled Group shall receive any unfavorable determination letter from the Internal Revenue Service regarding the qualification of a Pension Benefit Plan
under Section 401(a) of the Code, together with copies of each such letter; (g) any Credit Party or any member of the Controlled Group shall 

  
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receive a notice regarding the imposition of withdrawal liability with respect to a Multiemployer Plan, together with copies of each such notice; (h) any Credit Party or any member of the
Controlled Group shall fail to make a required installment or any other required payment under the Pension Funding Rules on or before the due date for such installment or payment; (i) any Credit Party or any member of the Controlled Group knows
that (i) a Multiemployer Plan has been terminated, (ii) the administrator or plan sponsor of a Multiemployer Plan intends to terminate a Multiemployer Plan, or (iii) the PBGC has instituted or will institute proceedings under
Section 4042 of ERISA to terminate a Multiemployer Plan. The Credit Parties shall promptly deliver to Agent all information required to be reported to the PBGC under Section 4010 of ERISA and such other documents or governmental reports or
filings related to any Pension Benefit Plan as Agent shall reasonably request. Promptly following an request therefor, the Credit Parties shall deliver to the Agent copies of any documents or notices described in Sections 101(j), (k) or
(l) of ERISA that any Credit Party or any member of the Controlled Group may request with respect to any Pension Benefit Plan or Multiemployer Plan, as applicable; provided, that, if any Credit Party or any member of the
Controlled Group has not requested such documents or notices from the administrator or sponsor of the applicable Pension Benefit Plan or Multiemployer Plan, then the applicable Credit Party or the applicable member of the Controlled Group shall,
upon request by Agent, promptly make a request for such documents or notices from such administrator or sponsor and shall provide copies of such documents and notices to Agent promptly after receipt thereof. 

9.16 Additional Documents. Execute and deliver to Agent, upon request, such documents and agreements as Agent may, from
time to time, reasonably request to carry out the purposes, terms or conditions of this Agreement. 
 ARTICLE X

 EVENTS OF DEFAULT 
 The occurrence of any one or more of the following events shall constitute an “Event of Default”: 
 10.1 Nonpayment. Failure by any Borrower to pay any principal or interest on the Obligations when due, whether due at maturity or by reason of acceleration pursuant to the terms of this
Agreement or by notice of intention to prepay, or by required prepayment or failure to pay any other liabilities or make any other payment, fee or charge provided for herein or in any other Loan Document when due; 

10.2 Breach of Representation. Any representation or warranty made or deemed made by any Credit Party in this Agreement,
any other Loan Document or in any related agreement, certificate, document or financial or other statement furnished at any time in connection herewith or therewith shall prove to have been incorrect in any material respect or when taken together
with all such other information delivered under the Loan Documents, misleading in any material respect (except, in each case, that any such representation or warranty that is already qualified or modified by materiality shall be true and correct in
all respects) on the date when made or deemed to have been made; 
 10.3 Noncompliance. Except as otherwise
provided in Section 10.1, failure or neglect of any Credit Party to perform, keep or observe any term, provision, condition or covenant: 
 (a) contained in Sections 4.3, 4.5, 4.6, 4.7, 4.11, 4.21, 6.5, 6.6, 6.7, Sections 7.1 through 7.22 or Sections 9.7, 9.8, 9.9, 9.12 and 9.13; 

  
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 (b) contained in Sections 9.1 through 9.15 (other than Sections 9.7,
9.8, 9.9, 9.12 and 9.13), which remains unremedied for a period of five (5) Business Days; 

(c) contained in any other provisions of this Agreement or any of the other Loan Documents, which remains unremedied for a period of
thirty (30) days after the earlier of (x) knowledge of such failure by any Credit Party, or (y) written notice of such failure to Borrowing Agent by Agent or any Lender; 

10.4 Judicial Actions. Issuance of a notice of Lien, levy, assessment, injunction or attachment against any Credit
Party’s Inventory, Receivables or other property having an aggregate value in excess of $250,000 that is not stayed or lifted within thirty (30) days; 
 10.5 Judgments. Any judgment or judgments are rendered against any Credit Party for an aggregate amount in excess of $250,000 and (a) enforcement proceedings shall have been commenced
by a creditor upon such judgment, (b) there shall be any period of thirty (30) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, shall not be in effect, or (c) any such
judgment results in the creation of a Lien upon any of the Collateral (other than a Permitted Encumbrance); 
 10.6
Bankruptcy. Any Credit Party shall: (a) apply for, consent to or suffer the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or of all or a substantial part of
its property; (b) make a general assignment for the benefit of creditors; (c) commence a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect); (d) be adjudicated a bankrupt or insolvent;
(e) file a petition seeking to take advantage of any other law providing for the relief of debtors; (f) acquiesce to, or fail to have dismissed, within thirty (30) days, any petition filed against it in any involuntary case under such
bankruptcy laws; or (g) take any action for the purpose of effecting any of the foregoing; 
 10.7 Inability to
Pay. Any Credit Party shall admit in writing its inability, or be generally unable, to pay its debts as they become due or cease operations of its present business; 
 10.8 Affiliate Actions. Any Affiliate of any Credit Party (a) violates any Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, (b) shall, or its respective agents acting or benefiting in any capacity in connection with the Advances or other transactions
hereunder, shall be a Blocked Person, (c) (i) conducts any business or engages in any transaction or dealing with any Blocked Person, including the making or receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, (ii) deals in, or otherwise engages in, any transaction relating to, any property or interests in property blocked pursuant to the Executive Order No. 13224, or (iii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in the Executive Order No. 13224, the USA PATRIOT Act or any other Anti-Terrorism Law. 

10.9 Lien Priority. Any Lien created hereunder or provided for hereby or under any related agreement for any reason ceases
to be or is not a valid and perfected Lien having a first priority interest; 
 10.10 Cross Default. A default of
the obligations of any Credit Party shall occur under (i) any agreement to which it is a party in respect of Funded Debt in excess of $200,000 in the aggregate for all such Persons, or (ii) any other agreement to which it is a party that
materially adversely affects its condition, affairs or prospects (financial or otherwise), in each case which default is not cured within any applicable grace period; 

  
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 10.11 Breach of Guaranty. Termination or breach of any Guaranty or Guarantor
Security Agreement or similar agreement executed and delivered to Agent in connection with the Obligations of any Borrower, or if any Guarantor attempts to terminate, challenges (in writing) the validity of, or its liability under, any such Guaranty
or Guaranty Security Agreement or similar agreement; 
 10.12 Change of Control. Any Change of Control shall
occur; 
 10.13 Invalidity. Any material provision of this Agreement or any other Loan Document shall, for any
reason, cease to be valid and binding on any Credit Party, or any Credit Party shall so claim in writing to Agent or any Lender; 
 10.14 Licenses. (a) Any Governmental Body shall (i) revoke, terminate, suspend or adversely modify any license, permit, patent trademark or trade name of any Credit Party, or
(ii) commence proceedings to suspend, revoke, terminate or adversely modify any such license, permit, trademark, trade name or patent and such proceedings shall not be dismissed or discharged within sixty (60) days, or (iii) schedule
or conduct a hearing on the renewal of any license, permit, trademark, trade name or patent necessary for the continuation of any Credit Party’s business and the staff of such Governmental Body issues a report recommending the termination,
revocation, suspension or material, adverse modification of such license, permit, trademark, trade name or patent; or (b) any agreement that is necessary or material to the operation of any Credit Party’s business shall be revoked or
terminated and not replaced by a substitute acceptable to Agent within thirty (30) days after the date of such revocation or termination, and such revocation or termination and non-replacement could, in each case of this
Section 10.15, reasonably be expected to have a Material Adverse Effect; 
 10.15 Seizures. Any
portion of the Collateral shall be seized or taken by a Governmental Body, or Credit Party or the title and rights of any Credit Party that is the owner of any material portion of the Collateral shall have become the subject matter of claim,
litigation, suit or other proceeding that might, in the opinion of Agent, upon final determination, result in impairment or loss of the security provided by this Agreement or the other Loan Documents; 

10.16 Operations. The operations of any Credit Party’s manufacturing facility are interrupted at any time for more
than (a) five (5) consecutive days during the Peak Season or (b) fifteen (15) consecutive days at any other time, in each case unless such Credit Party shall (i) be entitled to receive for such period of interruption,
proceeds of business interruption insurance sufficient to assure that its per diem cash needs during such period is at least equal to its average per diem cash needs for the consecutive six month period immediately preceding the initial date of
interruption and (ii) receive such proceeds in the amount described in clause (a) preceding not later than thirty (30) days following the initial date of any such interruption; provided, however, that
notwithstanding the provisions of clauses (i) and (ii) of this section, an Event of Default shall be deemed to have occurred if such Credit Party shall be receiving the proceeds of business interruption insurance for a period
of thirty (30) consecutive days; or 
 10.17 Pension Plans. Any failure by any Credit Party to comply with
the requirements of Sections 7.16 or 9.15 hereof, determined without regard to any materiality limitation or threshold set forth therein, shall occur or exist with respect to any Pension Benefit Plan and, as a result of such event or
condition, together with all other such events or conditions, any Credit Party or any member of the Controlled Group shall incur, or in the opinion of Agent be reasonably likely to incur, a liability to a Pension Benefit Plan or the PBGC (or both)
which, in the reasonable judgment of Agent, would be reasonably likely to result in aggregate liability to the Credit Parties (or any of them) of $250,000 or more; or 

  
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 10.18 Section 6.5 Covenants. Any covenant in Section 6.5
becomes inapplicable due to the failure of such covenant to apply by its terms in a future period, and the Borrowers and Agent fail to come to an agreement acceptable to Agent in its sole discretion to amend the covenant to apply to future periods.

 ARTICLE XI 
 LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT 
 11.1 Rights and
Remedies. 
 (a) Upon the occurrence of (i) an Event of Default pursuant to Section 10.6 all Obligations
shall be immediately due and payable and this Agreement and the obligation of Lenders to make Advances shall be deemed terminated; and, (ii) any of the other Events of Default and at any time thereafter (such Event of Default not having
previously been waived), at the option of Required Lenders all Obligations shall be immediately due and payable and Lenders shall have the right to terminate this Agreement and to terminate the obligation of Lenders to make Advances and (iii) a
filing of a petition against any Credit Party in any involuntary case under any state or federal bankruptcy laws, all Obligations shall be immediately due and payable and the obligation of Lenders to make Advances hereunder and the obligation of
Agent to issue or cause the issuance of any Letter of Credit will be terminated other than as may be agreed to by Agent and Lenders and approved by an appropriate order of the bankruptcy court or other governmental Body having jurisdiction over such
Credit Party in connection therewith in form and substance satisfactory to Agent and Lenders in their sole discretion. Upon the occurrence of any Event of Default, Agent shall have the right to exercise any and all rights and remedies provided for
herein, under the other Loan Documents, under the Uniform Commercial Code and at law or equity generally, including the right to foreclose the security interests granted herein and to realize upon any Collateral by any available judicial procedure
and/or to take possession of and sell any or all of the Collateral with or without judicial process. Agent may enter any of any Credit Party’s premises or other premises without legal process and without incurring liability to any Credit Party
therefor, and Agent may thereupon, or at any time thereafter, in its discretion without notice or demand, take the Collateral and remove the same to such place as Agent may deem advisable and Agent may require the Credit Parties to make the
Collateral available to Agent at a convenient place. With or without having the Collateral at the time or place of sale, Agent may sell the Collateral, or any part thereof, at public or private sale, at any time or place, in one or more sales, at
such price or prices, and upon such terms, either for cash, credit or future delivery, as Agent may elect. Except as to that part of the Collateral that is perishable or threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Agent shall give the Credit Parties reasonable notification of such sale or sales, it being agreed that in all events written notice mailed to Borrowing Agent at least ten (10) days prior to such sale or sales is reasonable
notification. At any public sale Agent or any Secured Party may bid for and become the purchaser, and Agent, any Secured Party or any other purchaser at any such sale thereafter shall hold the Collateral sold absolutely free from any claim or right
of whatsoever kind, including any equity of redemption and all such claims, rights and equities are hereby expressly waived and released by each Credit Party. In connection with the exercise of the foregoing remedies, including the sale of
Inventory, Agent is granted a perpetual non-revocable, royalty free, nonexclusive license and Agent is granted permission to use all of each Credit Party’s (a) trademarks, trade styles, trade names, patents, patent applications,
copyrights, service marks, licenses, franchises and other proprietary rights that are used or useful in connection with Inventory for the purpose of marketing, advertising for sale and selling or otherwise disposing of such Inventory and
(b)

  
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Equipment for the purpose of completing the manufacture of unfinished goods. The cash proceeds realized from the sale of any Collateral shall be applied to the Obligations in the order set forth
in Section 11.5. Non-cash proceeds will only be applied to the Obligations as they are converted into cash. If any deficiency shall arise, the Credit Parties shall remain liable to Secured Party therefor. 

(b) To the extent that Applicable Law imposes duties on Agent to exercise remedies in a commercially reasonable manner, each Credit Party
acknowledges and agrees that it is not commercially unreasonable for Agent (i) to fail to incur expenses reasonably deemed significant by Agent to prepare Collateral for disposition or otherwise to complete raw material or work in process into
finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party
consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Customers or other Persons obligated on Collateral or to remove Liens on or any adverse claims
against Collateral, (iv) to exercise collection remedies against Customers and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of
Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same business as any Credit Party, for expressions of interest in
acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by
utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather
than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure Agent against risks of loss, collection or disposition of Collateral or
to provide to Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to
assist Agent in the collection or disposition of any of the Collateral. Each Credit Party acknowledges that the purpose of this Section 11.1(b) is to provide non-exhaustive indications of what actions or omissions by Agent would not be
commercially unreasonable in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this
Section 11.1(b). Without limitation upon the foregoing, nothing contained in this Section 11.1(b) shall be construed to grant any rights to any Credit Party or to impose any duties on Agent that would not have been granted or
imposed by this Agreement or by Applicable Law in the absence of this Section 11.1(b). 
 11.2
Agent’s Discretion. Agent shall have the right in its sole discretion to determine which rights, Liens, security interests or remedies Agent may at any time pursue, relinquish, subordinate, or modify or to take any other action with
respect thereto and such determination will not in any way modify or affect any of Secured Party rights hereunder. 
 11.3
Setoff. Subject to Section 14.12, in addition to any other rights that Agent or any other Secured Party may have under Applicable Law, upon the occurrence of an Event of Default hereunder, Agent and such Secured Party shall
have a right, immediately and without notice of any kind, to apply any Credit Party’s property held by Agent and such Secured Party to reduce the Obligations. 
 11.4 Rights and Remedies not Exclusive. The enumeration of the foregoing rights and remedies is not intended to be exhaustive and the exercise of any rights or remedy shall not preclude the
exercise of any other right or remedies provided for herein or otherwise provided by law, all of which shall be cumulative and not alternative. 

  
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 11.5 Allocation of Payments After Event of Default. Notwithstanding any other
provisions of this Agreement to the contrary, after the occurrence and during the continuance of an Event of Default, all amounts collected or received by Agent on account of the Obligations or any other amounts outstanding under any of the Loan
Documents or in respect of the Collateral may, at Agent’s discretion, be paid over or delivered as follows: 
 FIRST, to
the payment of all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of Agent in connection with enforcing its rights and the rights of Secured Parties under this Agreement and the other Loan Documents and any
protective advances made by Agent with respect to the Collateral under or pursuant to the terms of this Agreement; 
 SECOND, to
payment of any fees owed to Agent; 
 THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including
reasonable attorneys’ fees) of each of Lenders to the extent owing to such Lender pursuant to the terms of this Agreement; 

FOURTH, to the payment of all of the Obligations consisting of accrued fees and interest; 

FIFTH, to the payment of the outstanding principal amount of the Obligations (including the payment or cash collateralization of any
outstanding Letters of Credit); 
 SIXTH, to all other Obligations and other obligations that have become due and payable under
the Loan Documents or otherwise and not repaid pursuant to clauses “FIRST” through “FIFTH” above; and 

SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to receive such surplus. 

In carrying out the foregoing, (i) amounts received shall be applied in the numerical order provided until exhausted prior to
application to the next succeeding category; (ii) each of Lenders shall receive (so long as it is not a Defaulting Lender) an amount equal to its pro rata share (based on the proportion that the then outstanding Advances held by such
Lender bears to the aggregate then outstanding Advances) of amounts available to be applied pursuant to clauses “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent that any amounts available for
distribution pursuant to clause “FIFTH” above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by Agent in a cash collateral account and applied (A) first, to reimburse the
Issuer from time to time for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types described in clauses “FIFTH” and “SIXTH” above in
the manner provided in this Section 11.5. 
 ARTICLE XII 

WAIVERS AND JUDICIAL PROCEEDINGS 
 12.1 Waiver of Notice. Each Credit Party hereby waives notice of non-payment of any of the Receivables, demand, notice of acceleration, notice of intent to accelerate, presentment, protest
and notice thereof with respect to any and all instruments, notice of acceptance hereof, notice of loans or advances made, credit extended, Collateral received or delivered, or any other action taken in reliance hereon, and all other demands and
notices of any description, except such as are expressly provided for herein. 

  
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 12.2 Delay. No delay or omission on Agent’s or any Secured Party’s
part in exercising any right, remedy or option shall operate as a waiver of such or any other right, remedy or option or of any Default or Event of Default. 
 12.3 Jury Waiver; California Judicial Reference. 
 (a) EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES TO THE MAXIMUM EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR THERETO OR ANY OF THEM WITH RESPECT TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT OR SUCH OTHER LOAN DOCUMENT
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

(b) IN THE EVENT THAT ANY SUCH ACTION IS COMMENCED OR MAINTAINED IN ANY COURT IN THE STATE OF CALIFORNIA, AND THE WAIVER OF JURY TRIAL
SET FORTH IN SECTION ABOVE IS NOT ENFORCEABLE, AND EACH PARTY TO SUCH ACTION DOES NOT SUBSEQUENTLY WAIVE IN AN EFFECTIVE MANNER UNDER CALIFORNIA LAW ITS RIGHT TO A TRIAL BY JURY, THE PARTIES HERETO HEREBY ELECT TO PROCEED AS FOLLOWS: 

(i) WITH THE EXCEPTION OF THE ITEMS SPECIFIED IN CLAUSE (II) BELOW, ANY CONTROVERSY, DISPUTE OR CLAIM (EACH, A
“CONTROVERSY”) BETWEEN THE PARTIES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT WILL BE RESOLVED BY A REFERENCE PROCEEDING IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 638, ET SEQ. OF THE
CALIFORNIA CODE OF CIVIL PROCEDURE (“CCP”), OR THEIR SUCCESSOR SECTIONS, WHICH SHALL CONSTITUTE THE EXCLUSIVE REMEDY FOR THE RESOLUTION OF ANY CONTROVERSY, INCLUDING WHETHER THE CONTROVERSY IS SUBJECT TO THE REFERENCE PROCEEDING.
EXCEPT AS OTHERWISE PROVIDED ABOVE, VENUE FOR THE REFERENCE PROCEEDING WILL BE IN ANY COURT IN WHICH VENUE IS APPROPRIATE UNDER APPLICABLE LAW (THE “COURT”). 

(ii) THE MATTERS THAT SHALL NOT BE SUBJECT TO A REFERENCE ARE THE FOLLOWING: (A) NON-JUDICIAL FORECLOSURE OF ANY
SECURITY INTERESTS IN REAL OR PERSONAL PROPERTY; (B) EXERCISE OF SELF HELP REMEDIES (INCLUDING SET-OFF); (C) APPOINTMENT OF A RECEIVER; AND (D) TEMPORARY, PROVISIONAL OR ANCILLARY REMEDIES (INCLUDING WRITS OF ATTACHMENT, WRITS OF

  
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POSSESSION, TEMPORARY RESTRAINING ORDERS OR PRELIMINARY INJUNCTIONS). THIS AGREEMENT DOES NOT LIMIT THE RIGHT OF ANY PARTY TO EXERCISE OR OPPOSE ANY OF THE RIGHTS AND REMEDIES DESCRIBED IN
CLAUSES (A) AND (B) OR TO SEEK OR OPPOSE FROM A COURT OF COMPETENT JURISDICTION ANY OF THE ITEMS DESCRIBED IN CLAUSES (C) AND (D). THE EXERCISE OF, OR OPPOSITION TO, ANY OF THOSE ITEMS DOES NOT WAIVE THE
RIGHT OF ANY PARTY TO A REFERENCE PURSUANT TO THIS AGREEMENT. 
 (iii) THE REFEREE SHALL BE A RETIRED JUDGE OR
JUSTICE SELECTED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES. IF THE PARTIES DO NOT AGREE WITHIN TEN (10) DAYS OF A WRITTEN REQUEST TO DO SO BY ANY PARTY, THEN, UPON REQUEST OF ANY PARTY, THE REFEREE SHALL BE SELECTED BY THE PRESIDING JUDGE OF
THE COURT (OR HIS OR HER REPRESENTATIVE). A REQUEST FOR APPOINTMENT OF A REFEREE MAY BE HEARD ON AN EX PARTE OR EXPEDITED BASIS, AND THE PARTIES AGREE THAT IRREPARABLE HARM WOULD RESULT IF EX PARTE RELIEF IS NOT GRANTED. 

(iv) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE REFEREE SHALL DETERMINE THE MANNER IN WHICH THE REFERENCE
PROCEEDING IS CONDUCTED INCLUDING THE TIME AND PLACE OF HEARINGS, THE ORDER OF PRESENTATION OF EVIDENCE, AND ALL OTHER QUESTIONS THAT ARISE WITH RESPECT TO THE COURSE OF THE REFERENCE PROCEEDING. ALL PROCEEDINGS AND HEARINGS CONDUCTED BEFORE THE
REFEREE, EXCEPT FOR TRIAL, SHALL BE CONDUCTED WITHOUT A COURT REPORTER, EXCEPT THAT WHEN ANY PARTY SO REQUESTS, A COURT REPORTER WILL BE USED AT ANY HEARING CONDUCTED BEFORE THE REFEREE, AND THE REFEREE WILL BE PROVIDED A COURTESY COPY OF THE
TRANSCRIPT. THE PARTY MAKING SUCH A REQUEST SHALL HAVE THE OBLIGATION TO ARRANGE FOR THE COURT REPORTER. SUBJECT TO THE REFEREE’S POWER TO AWARD COSTS TO THE PREVAILING PARTY, THE CREDIT PARTIES WILL PAY THE COST OF THE REFEREE AND ALL COURT
REPORTERS. 
 (v) THE REFEREE SHALL BE REQUIRED TO DETERMINE ALL ISSUES IN ACCORDANCE WITH EXISTING APPLICABLE
CASE LAW AND STATUTORY LAW. THE RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW IN THE COURT WILL BE APPLICABLE TO THE REFERENCE PROCEEDING. THE REFEREE SHALL BE EMPOWERED TO ENTER EQUITABLE AS WELL AS LEGAL RELIEF, ENTER EQUITABLE ORDERS THAT
WILL BE BINDING ON THE PARTIES AND RULE ON ANY MOTION THAT WOULD BE AUTHORIZED IN A COURT PROCEEDING. THE REFEREE SHALL ISSUE A DECISION AT THE CLOSE OF THE REFERENCE PROCEEDING WHICH DISPOSES OF ALL CLAIMS OF THE PARTIES THAT ARE THE SUBJECT OF THE
REFERENCE. PURSUANT TO CCP SECTION 644, SUCH DECISION SHALL BE ENTERED BY THE COURT AS A JUDGMENT OR AN ORDER IN THE SAME MANNER AS IF THE ACTION HAD BEEN TRIED BY THE COURT AND ANY SUCH DECISION WILL BE FINAL, BINDING AND CONCLUSIVE. THE PARTIES
RESERVE THE RIGHT TO APPEAL FROM THE 

  
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FINAL JUDGMENT OR ORDER OR FROM ANY APPEALABLE DECISION OR ORDER ENTERED BY THE REFEREE. THE PARTIES RESERVE THE RIGHT TO FINDINGS OF FACT, CONCLUSIONS OF LAWS, A WRITTEN STATEMENT OF DECISION,
AND THE RIGHT TO MOVE FOR A NEW TRIAL OR A DIFFERENT JUDGMENT, WHICH NEW TRIAL, IF GRANTED, IS ALSO TO BE A REFERENCE PROCEEDING UNDER THIS PROVISION. 
 (vi) NEITHER THE INCLUSION OF THIS SECTION 12.3, NOR ANY REFERENCE TO CALIFORNIA LAW CONTAINED HEREIN SHALL BE DEEMED TO AFFECT OR LIMIT IN ANY WAY THE PARTIES’ CHOICE OF NEW YORK LAW. 

ARTICLE XIII 
 EFFECTIVE DATE AND TERMINATION 
 13.1 Term. This Agreement,
which shall inure to the benefit of and shall be binding upon the respective successors and permitted assigns of each Credit Party, Agent and each Secured Party, shall become effective on the date hereof and shall continue in full force and effect
until December 22, 2014 (the “Term”) unless sooner terminated as herein provided. Borrowers may terminate this Agreement at any time upon not less than sixty (60) days’ nor more than ninety (90) days’ prior
written notice upon payment in full of the Obligations (other than Inchoate Obligations). 
 13.2 Termination. The
termination of the Agreement shall not affect any Borrower’s, Agent’s or any other Secured Party’s rights, or any of the Obligations having their inception prior to the effective date of such termination, and the provisions hereof
shall continue to be fully operative until all transactions entered into, rights or interests created or Obligations (other than Inchoate Obligations) have been fully and indefeasibly paid, disposed of, concluded or liquidated. The security
interests, Liens and rights granted to Agent and Secured Party hereunder and the financing statements filed hereunder shall continue in full force and effect, notwithstanding the termination of this Agreement or the fact that Borrowers’ Account
may from time to time be temporarily in a zero or credit position, until all of the Obligations (other than Inchoate Obligations) of each Borrower have been indefeasibly paid and performed in full after the termination of this Agreement or each
Borrower has furnished Agent and Lenders with an indemnification satisfactory to Agent and Lenders with respect thereto. Accordingly, each Borrower waives any rights that it may have under the Uniform Commercial Code to demand the filing of
termination statements with respect to the Collateral, and Agent shall not be required to send such termination statements to each Borrower, or to file them with any filing office, unless and until this Agreement has been terminated in accordance
with its terms and all Obligations (other than Inchoate Obligations) have been indefeasibly paid in full in immediately available funds. All representations, warranties, covenants, waivers and agreements contained herein shall survive termination
hereof until all Obligations (other than Inchoate Obligations) are indefeasibly paid and performed in full. In the event of the payoff or refinancing of all outstanding Obligations contemporaneously with the termination of all Commitments hereunder,
Agent shall confirm the payoff of the Obligations on the date so paid and the termination of the Commitments on the date so terminated in a customary payoff letter satisfactory to Agent in its reasonable discretion 

  
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 ARTICLE XIV 
 REGARDING AGENT 
 14.1 Appointment. Each Lender hereby
designates PNC to act as Agent for such Lender under this Agreement and the other Loan Documents. Each Lender hereby irrevocably authorizes Agent to take such action on its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto and Agent shall hold all
Collateral, payments of principal and interest, fees (except the fees set forth in the Fee Letter), charges and collections (without giving effect to any collection days) received pursuant to this Agreement, for the ratable benefit of Secured
Parties. Agent may perform any of its duties hereunder by or through its agents or employees. As to any matters not expressly provided for by this Agreement (including collection of the Revolving Credit Notes) Agent shall not be required to exercise
any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding;
provided, however, that Agent shall not be required to take any action that exposes Agent to liability or that is contrary to this Agreement or the other Loan Documents or Applicable Law unless Agent is furnished with an
indemnification reasonably satisfactory to Agent with respect thereto. 
 14.2 Nature of Duties. Agent shall have
no duties or responsibilities except those expressly set forth in this Agreement and the other Loan Documents. Neither Agent nor any of its officers, directors, employees or agents shall be (i) liable for any action taken or omitted by them as
such hereunder or in connection herewith, unless caused by their gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), or (ii) responsible in any manner for
any recitals, statements, representations or warranties made by any Credit Party or any officer thereof contained in this Agreement, or in any of the other Loan Documents 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 of the other Loan Documents or for the value, validity, effectiveness, genuineness, due execution, enforceability or sufficiency of this Agreement, or any of
the other Loan Documents or for any failure of any Credit Party to perform its obligations hereunder. Agent shall not be under any obligation to any Secured Party 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 of the other Loan Documents, or to inspect the properties, books or records of any Credit Party. The duties of Agent as respects the Advances to Borrowers shall be mechanical and
administrative in nature; Agent shall not have by reason of this Agreement a fiduciary relationship in respect of any Secured Party; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon Agent
any obligations in respect of this Agreement except as expressly set forth herein. 
 14.3 Lack of Reliance on Agent
and Resignation. Independently and without reliance upon Agent or any other Secured Party, each Secured Party has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of each Credit
Party in connection with the making and the continuance of the Advances hereunder and the taking or not taking of any action in connection herewith, and (ii) its own appraisal of the creditworthiness of each Credit Party. Agent has no duty or
responsibility, either initially or on a continuing basis, to provide any Secured Party with any credit or other information with respect thereto, whether coming into its possession before making of the Advances or at any time or times thereafter
except as shall be provided by the Credit Parties pursuant to the terms hereof. Agent shall not be responsible to any Secured Party for any recitals, statements, information, representations or warranties herein or in any agreement, document,
certificate or a statement 

  
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delivered in connection with or for the execution, effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any other Loan Document, or of the
financial condition of any Credit Party, or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or the other Loan Documents or the financial condition of any
Credit Party, or the existence of any Event of Default or any Default. 
 Agent may resign on sixty (60) days’ written notice to each
of Lenders and Borrowing Agent and upon such resignation, the Required Lenders will promptly designate a successor Agent reasonably satisfactory to Borrowers: provided that no consent or approval of Borrowers will be required hereunder if a
Default or Event of Default has occurred and is continuing at the time of such designation. 
 Any such successor Agent shall succeed to the
rights, powers and duties of Agent, and the term “Agent” means such successor agent effective upon its appointment, and the former Agent’s rights, powers and duties as Agent shall be terminated, without any other or further act or
deed on the part of such former Agent. After any Agent’s resignation as Agent, the provisions of this Article XIV shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.

 14.4 Certain Rights of Agent. If Agent shall request instructions from Lenders with respect to any act or
action (including failure to act) in connection with this Agreement or any other Loan Document, Agent shall be entitled to refrain from such act or taking such action unless and until Agent has received instructions from the Required Lenders; and
Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing, Secured Parties shall not have any right of action whatsoever against Agent as a result of its acting or refraining from acting hereunder in
accordance with the instructions of the Required Lenders. 
 14.5 Reliance. Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, order or other document or telephone message believed by it to be genuine and correct and to
have been signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to this Agreement and the other Loan Documents and its duties hereunder, upon advice of counsel selected by it. Agent may employ agents
and attorneys-in-fact and shall not be liable for the default or misconduct of any such agents or attorneys-in-fact selected by Agent with reasonable care. 
 14.6 Notice of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder or under the other Loan Documents, unless Agent
has received notice from a Lender or Borrowing Agent referring to this Agreement or the other Loan Documents, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that Agent
receives such a notice, Agent shall give notice thereof to Secured Parties. Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders; provided, that, unless and
until Agent has received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of Secured
Parties. 
 14.7 Indemnification. To the extent Agent is not reimbursed and indemnified by Borrowers, each Lender
will reimburse and indemnify Agent in proportion to its respective portion of the Advances (or, if no Advances are outstanding, according to its Commitment Percentage), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against Agent in performing its duties hereunder, or in any way relating to or arising out of
this Agreement or any 

  
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other Loan Document; provided that, Lenders shall not be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from Agent’s gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment). 

14.8 Agent in its Individual Capacity. With respect to the obligation of Agent to lend under this Agreement, the Advances
made by it shall have the same rights and powers hereunder as any other Lender and as if it were not performing the duties as Agent specified herein; and the term “Lender” or any similar term shall, unless the context clearly otherwise
indicates, include Agent in its individual capacity as a Lender. Agent may engage in business with any Credit Party as if it were not performing the duties specified herein, and may accept fees and other consideration from any Credit Party for
services in connection with this Agreement or otherwise without having to account for the same to Secured Parties. 
 14.9
Delivery of Documents. To the extent Agent receives financial statements required under Sections 9.7, 9.8, 9.9, 9.12 and 9.13 or Borrowing Base Certificates from any Borrower pursuant to the terms of
this Agreement that any Borrower is not obligated to deliver to each Lender, Agent will promptly furnish such documents and information to Secured Parties. 
 14.10 Borrowers’ Undertaking to Agent. Without prejudice to their respective obligations to Secured Parties under the other provisions of this Agreement, each Borrower hereby undertakes
with Agent to pay to Agent from time to time on demand all amounts from time to time due and payable by it for the account of Secured Parties or any of them pursuant to this Agreement to the extent not already paid. Any payment made pursuant to any
such demand shall pro tanto satisfy the relevant Borrower’s obligations to make payments for the account of Secured Parties or the relevant one or more of them pursuant to this Agreement. 

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

14.12 Other Agreements. Each of the Lenders agrees that it shall not, without the express consent of Agent, and that it
shall, to the extent it is lawfully entitled to do so, upon the request of Agent, set off against the Obligations, any amounts owing by such Lender to any Credit Party or any deposit accounts of any Credit Party now or hereafter maintained with such
Lender. Anything in this Agreement to the contrary notwithstanding, each of Lenders further agrees that it shall not, unless specifically requested to do so by Agent, take any action to protect or enforce its rights arising out of this Agreement or
the other Loan Documents, it being the intent of Lenders that any such action to protect or enforce rights under this Agreement and the other Loan Documents shall be taken in concert and at the direction or with the consent of Agent or Required
Lenders. 

  
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 ARTICLE XV 
 BORROWING AGENCY; GUARANTY 
 15.1 Borrowing Agency
Provisions. 
 (a) Each Borrower hereby irrevocably designates Borrowing Agent to be its attorney and agent and in such
capacity to borrow, sign and endorse notes, and execute and deliver all instruments, documents, writings and further assurances now or hereafter required hereunder, on behalf of such Borrower or Borrowers, and hereby authorizes Agent to pay over or
credit all loan proceeds hereunder in accordance with the request of Borrowing Agent. 
 (b) The handling of this credit
facility as a co-borrowing facility with a borrowing agent in the manner set forth in this Agreement is solely as an accommodation to Borrowers and at their request. Neither Agent nor any Lender shall incur liability to Borrowers as a result
thereof. To induce Agent and Lenders to do so and in consideration thereof, each Borrower hereby indemnifies Agent and each Lender and holds Agent and each Lender harmless from and against any and all liabilities, expenses, losses, damages and
claims of damage or injury asserted against Agent or any Lender by any Person arising from or incurred by reason of the handling of the financing arrangements of Borrowers as provided herein, reliance by Agent or any Lender on any request or
instruction from Borrowing Agent or any other action taken by Agent or any Lender with respect to this Section 15.1 except due to willful misconduct or gross (not mere) negligence by the indemnified party (as determined by a court of
competent jurisdiction in a final and non-appealable judgment). 
 (c) All Obligations shall be joint and several, and each
Borrower shall make payment upon the maturity of the Obligations by acceleration or otherwise, and such obligation and liability on the part of each Borrower shall in no way be affected by any extensions, renewals and forbearance granted to Agent or
any Lender to any Borrower, failure of Agent or any Lender to give any Borrower notice of borrowing or any other notice, any failure of Agent or any Lender to pursue or preserve its rights against any Borrower, the release by Agent or any Lender of
any Collateral now or thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by Agent or any Lender to the other Borrowers or any
Collateral for such Borrower’s Obligations or the lack thereof. Each Borrower waives all suretyship defenses. 
 15.2
Joint and Several Liability of Borrowers. Each Borrower hereby agrees as follows. 
 (a) Each Borrower is accepting
joint and several liability hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by Agent and the Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower
and in consideration of the undertakings of the other Borrowers to accept joint and several liability for the Obligations. 

(b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including any Obligations arising under this Section 15.2), it being the intention of each Borrower and the
parties hereto that all the Obligations shall be the joint and several obligations of each Borrower without preferences or distinction among them. 

  
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 (c) If and to the extent that any Borrower shall fail to make any payment with respect to
any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will make such payment with respect to, or perform, such Obligation. 

(d) The Obligations of each Borrower under the provisions of this Section 15.2 constitute the absolute and unconditional,
full recourse Obligations of each Borrower enforceable against each Borrower to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of this Agreement or any other circumstances whatsoever.

 15.3 Guaranty. 
 (a) Guaranty. Each Guarantor hereby absolutely and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether
at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of any and all of the Obligations, whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses or otherwise,
of Borrowers and the other Credit Parties to the Secured Parties, arising hereunder or under any other Loan Document (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys’ fees
and expenses incurred by the Secured Parties in connection with the collection or enforcement thereof). Agent’s books and records showing the amount of the Obligations shall be admissible in evidence in any action or proceeding, and shall be
binding upon each Guarantor, and conclusive for the purpose of establishing the amount of the Obligations. This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Obligations or any instrument or
agreement evidencing any Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the Obligations which might otherwise constitute a
defense to the obligations of any Guarantor under this Guaranty, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing. 

(b) Limitation of Guaranty. Any term or provision of this Section 15.3 or any other provision in this Agreement or any
other Loan Document to the contrary notwithstanding, the maximum aggregate amount for which any Guarantor shall be liable hereunder shall not exceed the maximum amount for which such Guarantor shall be liable without rendering this Guaranty or any
other Loan Document, as it relates to such Guarantor, subject to avoidance under Applicable Law relating to fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act and
Section 548 of the Bankruptcy Code or any comparable provisions of Applicable Law (collectively, “Fraudulent Transfer Laws”). Any analysis of the provisions of this Guaranty for purposes of Fraudulent Transfer Laws shall take
into account the right of contribution established in clause (c) of Section 15.3 and, for purposes of such analysis, give effect to any discharge of intercompany debt as a result of any payment made under any Guaranty made
pursuant to this Section. 
 (c) Right of Contribution. To the extent that any Guarantor shall be required hereunder to
pay any portion of any guaranteed Obligation exceeding the greater of (i) the amount of the value actually received by such Guarantor and its Subsidiaries from the Advances and the other Obligations and (ii) the amount such Guarantor would
otherwise have paid if such Guarantor had paid the aggregate amount of the guaranteed Obligations (excluding the amount the amount paid by Borrowers) in the same proportion as such Guarantor’s net worth on the date enforcement is sought
hereunder bears to the aggregate net worth of all the Guarantors on such date, then such Guarantor shall be reimbursed by such other Guarantors for the amount of such excess, pro rata, based on the respective net worth of such Guarantors on such
date. 

  
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 (d) Rights of Secured Parties. Each Guarantor consents and agrees that the Secured
Parties may, at any time and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof: (i) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for
payment or the terms of the Obligations or any part thereof; (ii) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Obligations; (iii) apply
such security and direct the order or manner of sale thereof as Agent and the Lenders in their sole discretion may determine; and (iv) release or substitute one or more of any endorsers or other guarantors of any of the Obligations. Without
limiting the generality of the foregoing, each Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of any Guarantor under this Guaranty or which, but for this provision, might
operate as a discharge of such Guarantor. 
 (e) Obligations Independent. The obligations of each Guarantor hereunder are
those of primary obligor, and not merely as surety, and are independent of the Obligations and the obligations of any other guarantor, and a separate action may be brought against any Guarantor to enforce this Guaranty whether or not Borrowers or
any other Credit Party or any other person or entity is joined as a party. 
 (f) Subrogation. No Guarantor shall
exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until all of the Obligations and any amounts payable under this Guaranty have been indefeasibly
paid and performed in full and all of the commitments of the Lenders hereunder have been terminated. If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the
Secured Parties and shall forthwith be paid to the Secured Parties to reduce the amount of the Obligations, whether matured or unmatured. 
 (g) Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all Obligations now or hereafter existing and shall remain in full force and effect until all Obligations
and any other amounts payable under this Guaranty are indefeasibly paid in full in cash and all of the commitments of the Lenders hereunder have been terminated. Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or
be revived, as the case may be, if any payment by or on behalf of Borrowers or any Guarantor or any other Credit Party is made, or any of the Secured Parties exercises its right of setoff, in respect of the Obligations and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by any of the Secured Parties in their discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any insolvency proceeding or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Secured Parties are in
possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction. The obligations of each Guarantor under this paragraph shall survive termination of this Guaranty. 

(h) Stay of Acceleration. If acceleration of the time for payment of any of the Obligations is stayed, in connection with any case
commenced by or against any Credit Party under any insolvency proceeding, or otherwise, all such amounts shall nonetheless be payable by such Credit Party immediately upon demand by the Secured Parties. 

(i) Condition of Borrowers. Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means
of, obtaining from Borrowers and the other Credit Parties and any other guarantor such information concerning the financial condition, business and operations of Borrowers and any such other guarantor as such Guarantor requires, and that none of the
Secured Parties 

  
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has any duty, and such Guarantor is not relying on the Secured Parties at any time, to disclose to such Guarantor any information relating to the business, operations or financial condition of
Borrowers or any other Credit Party or any other guarantor (each Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same). 

15.4 Waivers and Agreements. 
 (a) Except as otherwise expressly provided in this Agreement, each Credit Party hereby waives notice of acceptance of its joint and several liability, notice of any Advances or Letters of Credit issued
under or pursuant to this Agreement, notice of the occurrence of any Default, Event of Default, or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by Agent or Lenders under or in respect of any
of the Obligations, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all demands, notices and other formalities of every kind in connection with this Agreement (except as otherwise
provided in this Agreement). Each Credit Party hereby waives all rights that it may have now or in the future under any statute, at common law, in equity or otherwise, to compel Agent or Lenders to marshal assets or to proceed against any other
Credit Party, other Person or security for the payment or performance of any Obligations before, or as a condition to, proceeding against such Credit Party. Each Credit Party waives all defenses available to a surety, guarantor or accommodation
co-obligor other than payment in full of all Obligations. Each Credit Party hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the
Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by Agent or Lenders at any time or times in respect of any default by any Credit Party in the performance or satisfaction of any term,
covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of
any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Credit Party. Without limiting the generality of the foregoing, each Credit Party assents to any other action or delay in acting or failure
to act on the part of Agent or any Lender with respect to the failure by any Credit Party to comply with any of its respective Obligations, including, without limitation, any failure strictly or diligently to assert any right or to pursue any remedy
or to comply fully with applicable laws or regulations thereunder, which might, but for the provisions of this Section 15.4 afford grounds for terminating, discharging or relieving any Credit Party, in whole or in part, from any of its
Obligations under this Section 15.4, it being the intention of each Credit Party that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of each Credit Party under this Section 15.4 shall not be
discharged except by performance and then only to the extent of such performance. The Obligations of each Credit Party under this Section 15.4 shall not be diminished or rendered unenforceable by any winding up, reorganization,
arrangement, liquidation, reconstruction or similar proceeding with respect to any Credit Party or Agent or any Lender. 
 (b)
Each Credit Party represents and warrants to Agent and Lenders that such Credit Party is currently informed of the financial condition of the other Credit Parties and of all other circumstances which a diligent inquiry would reveal and which bear
upon the risk of nonpayment of the Obligations. Each Credit Party further represents and warrants to Agent and Lenders that such Credit Party has read and understands the terms and conditions of this Agreement and the other Loan Documents. Each
Credit Party hereby covenants that such Credit Party will continue to keep informed of the other Borrowers’ financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of
nonpayment or nonperformance of the Obligations. 

  
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 (c) Each Credit Party waives, to the maximum extent permitted by law, all rights and
defenses that such Credit Party may have because the Obligations are or become secured by Real Property. This means, among other things: (i) Agent and Lenders may collect from such Credit Party without first foreclosing on any Real Property or
personal property Collateral pledged by any other Credit Party and (ii) if Agent or any Lender forecloses on any Real Property pledged by any Credit Party: (A) the amount of the Obligations may be reduced only by the price for which such
Collateral is sold at the foreclosure sale, even if such Collateral is worth more than the sale price; and (B) Agent and Lenders may collect from such Credit Party even if Agent or Lenders, by foreclosing on any such Real Property, has
destroyed any right such Credit Party may have to collect from the other Credit Parties. This is an unconditional and irrevocable waiver of any rights and defenses such Credit Party may have because the Obligations are secured by Real Property.
These rights and defenses include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure or any comparable statutes. 

(d) Each Credit Party understands and acknowledges that if the Secured Parties foreclose judicially or nonjudicially against any Real
Property security for the Obligations, that foreclosure could impair or destroy any ability that such Credit Party may have to seek reimbursement, contribution, or indemnification from any other Credit Party or others based on any right such Credit
Party may have of subrogation, reimbursement, contribution, or indemnification for any amounts paid by such Credit Party under this Agreement. Each Credit Party further understands and acknowledges that in the absence of this paragraph, such
potential impairment or destruction of such Credit Party’s rights, if any, may entitle such Credit Party to assert a defense to this Agreement based on Section 580d of the California Code of Civil Procedure as interpreted in Union Bank v.
Gradsky, 265 Cal. App. 2d 40 (1968). By executing this Agreement, each Credit Party freely, irrevocably, and unconditionally: (i) waives and relinquishes that defense and agrees that such Credit Party will be fully liable under this Agreement
even though the Secured Parties may foreclose, either by judicial foreclosure or by exercise of power of sale, any deed of trust securing the Obligations; (ii) agrees that such Credit Party will not assert that defense in any action or
proceeding which the Secured Parties may commence to enforce this Agreement; (iii) acknowledges and agrees that the rights and defenses waived by such Credit Party in this Agreement include any right or defense that such Credit Party may have
or be entitled to assert based upon or arising out of any one or more of Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure or Section 2848 of the California Civil Code; and (iv) acknowledges and agrees that the
Secured Parties are relying on this waiver in creating the Obligations, and that this waiver is a material part of the consideration which the Secured Parties are receiving for creating the Obligations. 

(e) Each Credit Party waives any right or defense it may have at law or equity, including California Code of Civil Procedure
Section 580a, to a fair market value hearing or action to determine a deficiency judgment after a foreclosure. As provided in Section 16.1 hereof, this Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York. The foregoing provisions are included solely out of an abundance of caution and shall not be construed to mean that any of the above referenced provisions of California law are in any way applicable to this Agreement or the
Obligations. 
 (f) Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem appropriate,
including realization upon Collateral by judicial foreclosure or non-judicial sale or enforcement, without affecting any rights and remedies under this Agreement. If, in taking any action in connection with the exercise of any rights or remedies,
Agent or any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency judgment against any Credit Party or other Person, whether because of any Applicable Laws pertaining to “election of remedies” or
otherwise, each Credit Party consents to such action and waives any claim based upon it, even if the action may result in loss of 

  
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any rights of subrogation that any Credit Party might otherwise have had, whether under Section 580(d) of the California Code of Civil Procedure, any comparable statute, or otherwise. Any
election of remedies that results in denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Credit Party shall not impair any other Credit Party’s obligation to pay the full amount of the Obligations.
Each Credit Party waives all rights and defenses arising out of an election of remedies, such as non-judicial foreclosure with respect to any security for the Obligations, even though that election of remedies destroys such Credit Party’s
rights of subrogation against any other Person. Agent may bid all or a portion of the Obligations at any foreclosure or trustee’s sale or at any private sale, and the amount of such bid need not be paid by Agent but shall be credited against
the Obligations. The amount of the successful bid at any such sale, whether Agent or any other Person is the successful bidder, shall be conclusively deemed to be the fair market value of the Collateral, and the difference between such bid amount
and the remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations, notwithstanding that any present or future law or court decision may have the effect of reducing the amount of any deficiency claim to
which Agent or any Lender might otherwise be entitled but for such bidding at any such sale. 
 (g) The provisions of this
Section 15.4 are made for the benefit of Agent, Lenders and their respective successors and assigns, and may be enforced by it or them from time to time against any Credit Party as often as occasion therefor may arise and without
requirement on the part of Agent, any Lender, any of their respective successors or assigns first to marshal any of its or their claims or to exercise any of its or their rights against any Credit Party or to exhaust any remedies available to it or
them against any Credit Party or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 15.4 shall remain in effect until all of the
Obligations shall have been paid in full in accordance with the terms of this Agreement. If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or returned by Agent or
any Lender upon the insolvency, bankruptcy or reorganization of any Credit Party, or otherwise, the provisions of this Section 15.4 will forthwith be reinstated in effect, as though such payment had not been made. 

(h) Until the Obligations (other than Inchoate Obligations) have been paid in full in cash or cash collateralized in accordance with the
terms hereof and all of the commitments of the Lenders hereunder have been terminated, each Credit Party hereby agrees that it will not enforce any of its rights of contribution or subrogation against any other Credit Party with respect to any
liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to Agent or any Lender with respect to any of the Obligations or any collateral security therefor until such time as all of the Obligations (other
than Inchoate Obligations) have been paid in full in cash. Any claim which any Credit Party may have against any other Credit Party with respect to any payments to Agent or any Lender hereunder or under any other Loan Documents are hereby expressly
made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations (other than Inchoate Obligations) and, in the event
of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Credit Party, its debts or its assets, whether voluntary or involuntary, all such Obligations
shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Credit Party therefor. 

(i) Each Credit Party hereby agrees that, after the occurrence and during the continuance of any Default or Event of Default, the payment
of any amounts due with respect to the indebtedness or other obligations owing by any Credit Party to any other Credit Party is hereby subordinated to the prior payment in full in cash of the Obligations (other than Inchoate Obligations) in
accordance with the terms of this Agreement. Each Credit Party hereby agrees that after the occurrence 

  
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and during the continuance of any Default or Event of Default, such Credit Party will not demand, sue for or otherwise attempt to collect any indebtedness of any other Credit Party owing to such
Credit Party until the Obligations (other than Inchoate Obligations) shall have been paid in full in cash. If, notwithstanding the foregoing sentence, any Credit Party shall collect, enforce or receive any amounts in respect of such indebtedness,
such amounts shall be collected, enforced and received by such Credit Party as trustee for Agent, and such Credit Party shall deliver any such amounts to Agent for application to the Obligations in accordance with the terms of this Agreement.

 (j) Each Credit Party expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution
of any other claim that such Credit Party may now or hereafter have against the other Credit Parties or other Person directly or contingently liable for the Obligations hereunder, or against or with respect to the other Credit Parties’ property
(including any property that is Collateral for the Obligations), arising from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the Obligations. 

ARTICLE XVI 
 MISCELLANEOUS 
 16.1 Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of New York. Any judicial proceeding brought against any Credit Party with respect to any of the Obligations,
this Agreement, the other Loan Documents or any related agreement may be brought in any court of competent jurisdiction in the City of New York, Borough of Manhattan, State of New York, United States of America, and, by execution and delivery of
this Agreement, each Credit Party accepts for itself and in connection with its properties, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any judgment rendered thereby in
connection with this Agreement. Each Credit Party hereby waives personal service of any and all process upon it and consents that all such service of process may be made by registered mail (return receipt requested) directed to the Borrowing Agent
at its address set forth in Schedule A and service so made shall be deemed completed five (5) days after the same has been so deposited in the mails of the United States of America, or, at Agent’s option, by service upon Borrowing
Agent, which each Credit Party irrevocably appoints as such Credit Party’s agent for the purpose of accepting service within the State of New York. Nothing herein shall affect the right to serve process in any manner permitted by law or shall
limit the right of Agent or any Secured Party to bring proceedings against any Credit Party in the courts of any other jurisdiction. Each Credit Party waives any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Each Credit Party waives the right to remove any judicial proceeding brought against such Credit Party in any state court to any federal court. Any
judicial proceeding by any Credit Party against any Secured Party or any other Indemnitee involving, directly or indirectly, any matter or claim in any way arising out of, related to or connected with this Agreement or any related agreement, shall
be brought only in a federal or state court located in the City of New York, Borough of Manhattan, State of New York, United States of America; provided, that the Credit Parties may bring counterclaims in any other court in which the original
claim was brought by Agent or any Secured Party. 
 16.2 Entire Understanding. 

(a) This Agreement and the documents executed concurrently herewith contain the entire understanding between the Credit Parties, Agent
and each Secured Party and supersede all prior agreements and understandings, if any, relating to the subject matter hereof. Any promises, 

  
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representations, warranties or guarantees not herein contained and hereinafter made shall have no force and effect unless in writing, signed by each Credit Party’s, Agent’s and each
Lender’s respective officers. Neither this Agreement nor any portion or provisions hereof may be changed, modified, amended, waived, supplemented, discharged, cancelled or terminated orally or by any course of dealing, or in any manner other
than by an agreement in writing, signed by the party to be charged. Each Credit Party acknowledges that it has been advised by counsel in connection with the execution of this Agreement and other Loan Documents and is not relying upon oral
representations or statements inconsistent with the terms and provisions of this Agreement. 
 (b) The Required Lenders, Agent
with the consent in writing of the Required Lenders, and the Credit Parties may, subject to the provisions of this Section 16.2(b), from time to time enter into written supplemental agreements to this Agreement or the other Loan
Documents executed by the Credit Parties, for the purpose of adding or deleting any provisions or otherwise changing, varying or waiving in any manner the rights of Lenders, Agent or the Credit Parties thereunder or the conditions, provisions or
terms thereof or waiving any Event of Default thereunder, but only to the extent specified in such written agreements; provided, however, that no such supplemental agreement shall, without the consent of all Lenders: 

(i) increase the Commitment Percentage, the maximum dollar commitment of any Lender or the Maximum Revolving Advance
Amount (or any component thereof). 
 (ii) extend the maturity of any Revolving Credit Notes or the due date for
any amount payable hereunder, or decrease the rate of interest or reduce any fee payable by Borrowers to Lenders pursuant to this Agreement. 
 (iii) alter the definition of the term Required Lenders or alter, amend or modify this Section 16.2(b). 
 (iv) release any Collateral during any calendar year (other than in accordance with the provisions of this Agreement) having an aggregate value in excess of $250,000. 

(v) change the rights and duties of Agent. 

(vi) permit any Revolving Advance to be made if after giving effect thereto the total of Revolving Advances outstanding
hereunder would exceed the Formula Amount for more than sixty (30) consecutive Business Days or exceed one hundred and ten percent (110%) of the Formula Amount. 

(vii) increase the Advance Rates above the Advance Rates in effect on the Closing Date. 

(viii) release any Guarantor. 
 Any such supplemental agreement shall apply equally to each Secured Party and shall be binding upon the Credit Parties, Secured Parties and all future holders of the Obligations. In the case of any
waiver, the Credit Parties and Secured Parties shall be restored to their former positions and rights, and any Event of Default waived shall be deemed to be cured and not continuing, but no waiver of a specific Event of Default shall extend to any
subsequent Event of Default (whether or not the subsequent Event of Default is the same as the Event of Default that was waived), or impair any right consequent thereon. 

  
 97 

 In the event that Agent requests the consent of a Lender pursuant to this
Section 16.2 and such Lender shall not respond or reply to Agent in writing within five (5) days of delivery of such request, such Lender shall be deemed to have consented to the matter that was the subject of the request. In the
event that Agent requests the consent of a Lender pursuant to this Section 16.2 and such consent is denied, then PNC may, at its option, require such Lender to assign its interest in the Advances to PNC or to another Lender or to any
other Person designated by Agent (the “Designated Lender”), for a price equal to (i) the then outstanding principal amount thereof plus (ii) accrued and unpaid interest and fees due such Lender, which interest and fees
shall be paid when collected from Borrowers. In the event PNC elects to require any Lender to assign its interest to PNC or to the Designated Lender, PNC will so notify such Lender in writing within forty five (45) days following such
Lender’s denial, and such Lender will assign its interest to PNC or the Designated Lender no later than five (5) days following receipt of such notice pursuant to a Commitment Transfer Supplement executed by such Lender, PNC or the
Designated Lender, as appropriate, and Agent. 
 Notwithstanding (a) the existence of a Default or Event of Default,
(b) that any of the other applicable conditions precedent set forth in Section 8.2 have not been satisfied or (c) any other provision of this Agreement, Agent may at its discretion and without the consent of Required Lenders,
voluntarily permit the sum of the outstanding Revolving Advances and the Maximum Undrawn Amount at any time to exceed ten percent (10%) of the Formula Amount for up to sixty (60) consecutive Business Days (the “Out-of-Formula
Loans”); provided, that, such outstanding Advances do not exceed the Maximum Revolving Advance Amount. If Agent is willing in its sole and absolute discretion to make such Out-of-Formula Loans, such Out-of-Formula Loans shall
be payable on demand and shall bear interest at the Default Rate for Revolving Advances ; provided that, if Lenders do make Out-of-Formula Loans, neither Agent nor Lenders shall be deemed thereby to have changed the limits of
Section 2.1(a). For purposes of this paragraph, the discretion granted to Agent hereunder shall not preclude involuntary overadvances that may result from time to time due to the fact that the Formula Amount was unintentionally exceeded
for any reason, including Collateral previously deemed to be either “Eligible Receivables” or “Eligible Inventory”, as applicable, becomes ineligible, collections of Receivables applied to reduce outstanding Revolving Advances
are thereafter returned for insufficient funds or overadvances are made to protect or preserve the Collateral. In the event Agent involuntarily permits the outstanding Revolving Advances to exceed the Formula Amount by more than ten percent (10%),
Agent shall use its efforts to have Borrowers decrease such excess in as expeditious a manner as is practicable under the circumstances and not inconsistent with the reason for such excess. Revolving Advances made after Agent has determined the
existence of involuntary overadvances shall be deemed to be involuntary overadvances and shall be decreased in accordance with the preceding sentence. 
 In addition to (and not in substitution of) the discretionary Revolving Advances permitted above in this Section 16.2, Agent is hereby authorized by Borrowers and Lenders, from time to time in
Agent’s sole discretion, (A) after the occurrence and during the continuation of a Default or Event of Default, or (B) at any time that any of the other applicable conditions precedent set forth in Section 8.2 have not
been satisfied, to make Revolving Advances to Borrowers on behalf of Lenders that Agent, in its reasonable business judgment, deems necessary or desirable (a) to preserve or protect the Collateral, or any portion thereof, (b) to enhance
the likelihood of, or maximize the amount of, repayment of the Advances and other Obligations, or (c) to pay any other amount chargeable to Borrowers pursuant to the terms of this Agreement; provided, that at any time after giving effect
to any such Revolving Advances the outstanding Revolving Advances do not exceed one hundred and ten percent (110%) of the Formula Amount. 
 16.3 Successors and Assigns; Participations; New Lenders. 

  
 98 

 (a) This Agreement shall be binding upon and inure to the benefit of the Credit Parties,
Agent, each Secured Party, all future holders of the Obligations and their respective successors and assigns, except that no Credit Party may assign or transfer any of its rights or obligations under this Agreement without the prior written consent
of Agent and each Lender. 
 (b) Each Credit Party acknowledges that in the regular course of commercial banking business one or
more Lenders may at any time and from time to time sell participating interests in the Advances to other financial institutions (each such transferee or purchaser of a participating interest, a “Participant”). Each Participant may
exercise all rights of payment (including rights of set-off) with respect to the portion of such Advances held by it or other Obligations payable hereunder as fully as if such Participant were the direct holder thereof; provided that
Borrowers shall not be required to pay to any Participant more than the amount that it would have been required to pay to Lender that granted an interest in its Advances or other Obligations payable hereunder to such Participant had such Lender
retained such interest in the Advances hereunder or other Obligations payable hereunder; and provided, further, that in no event shall Borrowers be required to pay any such amount arising from the same circumstances and with respect to the
same Advances or other Obligations payable hereunder to both such Lender and such Participant. Each Borrower hereby grants to any Participant a continuing security interest in any deposits, moneys or other property actually or constructively held by
such Participant as security for the Participant’s interest in the Advances. 
 (c) Any Lender, with the consent of Agent
(which shall not be unreasonably withheld or delayed), may sell, assign or transfer all or any part of its rights and obligations under or relating to Revolving Advances under this Agreement and the other Loan Documents to one or more Eligible
Assignees and one or more Eligible Assignees may commit to make Advances hereunder (each a “Purchasing Lender”), in minimum amounts of not less than $5,000,000 (or its entire interest, if less), pursuant to a Commitment Transfer
Supplement, executed by a Purchasing Lender, the transferor Lender, and Agent and delivered to Agent for recording. Upon such execution, delivery, acceptance and recording, from and after the transfer effective date determined pursuant to such
Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall be a party hereto and, to the extent provided in such Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder with a Commitment Percentage as
set forth therein, and (ii) the transferor Lender thereunder shall, to the extent provided in such Commitment Transfer Supplement, be released from its obligations under this Agreement, the Commitment Transfer Supplement creating a novation for
that purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of such Purchasing Lender and the resulting adjustment of the Commitment Percentages
arising from the purchase by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under this Agreement and the other Loan Documents. Each Borrower hereby consents to the addition of such Purchasing
Lender and the resulting adjustment of the Commitment Percentages arising from the purchase by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under this Agreement and the other Loan Documents.
Borrowers shall execute and deliver such further documents and do such further acts and things in order to effectuate the foregoing. 
 (d) Any Lender, with the consent of Agent (which shall not be unreasonably withheld or delayed), may directly or indirectly sell, assign or transfer all or any portion of its rights and obligations under
or relating to Revolving Advances under this Agreement and the other Loan Documents to an entity, whether a corporation, partnership, trust, limited liability company or other entity that (i) is engaged in making, purchasing, holding or
otherwise investing in bank loans and similar extensions of credit in the ordinary course of its business and (ii) is administered, serviced or managed by the assigning Lender or an Affiliate of such Lender (a “Purchasing CLO”
and together with each Participant and 

  
 99 

 
Purchasing Lender, each a “Transferee” and collectively the “Transferees”), pursuant to a Commitment Transfer Supplement modified as appropriate to reflect the
interest being assigned (“Modified Commitment Transfer Supplement”), executed by any intermediate purchaser, the Purchasing CLO, the transferor Lender, and Agent as appropriate and delivered to Agent for recording. Upon such
execution and delivery, from and after the transfer effective date determined pursuant to such Modified Commitment Transfer Supplement, (i) Purchasing CLO thereunder shall be a party hereto and, to the extent provided in such Modified
Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder and (ii) the transferor Lender thereunder shall, to the extent provided in such Modified Commitment Transfer Supplement, be released from its obligations
under this Agreement, the Modified Commitment Transfer Supplement creating a novation for that purpose. Such Modified Commitment Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect
the addition of such Purchasing CLO. Each Borrower hereby consents to the addition of such Purchasing CLO. Borrowers shall execute and deliver such further documents and do such further acts and things in order to effectuate the foregoing.

 (e) Agent shall maintain at its address a copy of each Commitment Transfer Supplement and Modified Commitment Transfer
Supplement delivered to it and a register (the “Register”) for the recordation of the names and addresses of each Lender and the outstanding principal, accrued and unpaid interest and other fees due hereunder. The entries in the
Register shall be conclusive, in the absence of manifest error, and each Borrower, Agent and Lenders may treat each Person whose name is recorded in the Register as the owner of the Advance recorded therein for the purposes of this Agreement. The
Register shall be available for inspection by Borrowing Agent or any Lender at any reasonable time and from time to time upon reasonable prior notice. Agent shall receive a fee in the amount of $3,500 payable by the applicable Purchasing Lender
and/or Purchasing CLO upon the effective date of each transfer or assignment (other than to an intermediate purchaser) to such Purchasing Lender and/or Purchasing CLO. 
 (f) Each Credit Party authorizes each Lender to disclose to any Transferee and any prospective Transferee any and all financial information in such Lender’s possession concerning such Credit Party
that has been delivered to such Lender by or on behalf of such Credit Party pursuant to this Agreement or in connection with such Lender’s credit evaluation of such Credit Party. 

16.4 Application of Payments. Agent shall have the continuing and exclusive right to apply or reverse and re-apply any
payment and any and all proceeds of Collateral to any portion of the Obligations. To the extent that any Credit Party makes a payment or Agent or any Secured Party receives any payment or proceeds of the Collateral for any Credit Party’s
benefit, which are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver, custodian or any other party under any bankruptcy law, common law or equitable
cause, then, to such extent, the Obligations or part thereof intended to be satisfied shall be revived and continue as if such payment or proceeds had not been received by Agent or such Secured Party. 

16.5 Indemnity. Each Credit Party shall indemnify each Indemnitee from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including fees and disbursements of counsel) that may be imposed on, incurred by, or asserted against any Indemnitee in any
claim, litigation, proceeding or investigation instituted or conducted by any Governmental Body or instrumentality or any other Person with respect to any aspect of, or any transaction contemplated by, or referred to in, or any matter related to,
this Agreement or the other Loan Documents, whether or not any Indemnitee is a party thereto, except to the extent that any of the foregoing arises out of the gross (not mere) negligence or willful misconduct of the party being indemnified (as
determined by a court of competent jurisdiction in a final and non-

  
 100

 
appealable judgment). Without limiting the generality of the foregoing, this indemnity shall extend to any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses and disbursements of any kind or nature whatsoever (including fees and disbursements of counsel) asserted against or incurred by any Indemnitees by any Person under any Environmental Laws or similar laws by reason of any Credit Party’s
or any other Person’s failure to comply with laws applicable to solid or hazardous waste materials, including Hazardous Substances and Hazardous Waste, or other Toxic Substances. Additionally, if any taxes (excluding taxes imposed upon or
measured solely by the net income of Agent and Lenders, but including any intangibles taxes, stamp tax, recording tax or franchise tax) shall be payable by any Secured Party or the Credit Parties on account of the execution or delivery of this
Agreement, or the execution, delivery, issuance or recording of any of the Loan Documents, or the creation or repayment of any of the Obligations hereunder, by reason of any Applicable Law now or hereafter in effect, the Credit Parties will pay (or
will promptly reimburse Secured Parties for payment of) all such taxes, including interest and penalties thereon, and will indemnify and hold the indemnitees described above in this Section 16.5 harmless from and against all liability in
connection therewith. 
 16.6 Notice. Any notice or request hereunder may be given to Borrowing Agent or any
Credit Party or to Agent or any Lender at their respective addresses set forth in Schedule A or at such other address as may hereafter be specified in a notice designated as a notice of change of address under this Section 16.6.
Any notice, request, demand, direction or other communication (for purposes of this Section 16.6 only, a “Notice”) to be given to or made upon any party hereto under any provision of this Loan Agreement shall be given or
made by telephone or in writing (which includes by means of electronic transmission (i.e., “e-mail” or.pdf) or facsimile transmission or by setting forth such Notice on a site on the World Wide Web (a “Website Posting”) if
Notice of such Website Posting (including the information necessary to access such site) has previously been delivered to the applicable parties hereto by another means set forth in this Section 16.6) in accordance with this
Section 16.6. Any such Notice must be delivered to the applicable parties hereto at the addresses and numbers set forth under their respective names on Schedule A or in accordance with any subsequent unrevoked Notice from any such
party that is given in accordance with this Section 16.6. Any Notice shall be effective: 
 (a) In the case of
hand-delivery, when delivered; 
 (b) If given by mail, four days after such Notice is deposited with the United States Postal
Service, with first-class postage prepaid, return receipt requested; 
 (c) In the case of a telephonic Notice, when a party is
contacted by telephone, if delivery of such telephonic Notice is confirmed no later than the next Business Day by hand delivery, a facsimile or electronic transmission, a Website Posting or an overnight courier delivery of a confirmatory Notice
(received at or before noon on such next Business Day); 
 (d) In the case of a facsimile transmission, when sent to the
applicable party’s facsimile machine’s telephone number, if the party sending such Notice receives confirmation of the delivery thereof from its own facsimile machine; 

(e) In the case of electronic transmission, when actually received; 

(f) In the case of a Website Posting, upon delivery of a Notice of such posting (including the information necessary to access such site)
by another means set forth in this Section 16.6; and 

  
 101

 (g) If given by any other means (including by overnight courier), when actually received.

 Any Lender giving a Notice to Borrowing Agent or any Credit Party shall concurrently send a copy thereof to Agent, and Agent
shall promptly notify the other Lenders of its receipt of such Notice. 
 16.7 Survival. The obligations of the
Credit Parties under Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h), and 16.5 and the obligations of Lenders under Section 14.7, shall survive termination of this Agreement and the other Loan Documents
and payment in full of the Obligations. 
 16.8 Severability. If any part of this Agreement is contrary to,
prohibited by, or deemed invalid under Applicable Laws or regulations, such provision shall be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be
given effect so far as possible. 
 16.9 Expenses. All reasonable and documented out-of-pocket costs and expenses,
including reasonable attorneys’ fees (including the allocated costs of in-house counsel, one primary counsel to Agent and, if necessary, one local counsel in any relevant jurisdiction) and disbursements incurred by Agent on its behalf or on
behalf of Secured Parties, including all costs and expenses incurred (and including in or in connection with or anticipation of an insolvency proceeding, reorganization, or any similar proceeding): (a) in all efforts made to enforce payment of
any Obligation or effect collection of any Collateral, or (b) in connection with the entering into, modification, amendment, administration and enforcement of this Agreement and the other Loan Documents or any consents or waivers hereunder or
thereunder and all related agreements, documents and instruments, or (c) in instituting, maintaining, preserving, enforcing and foreclosing on Agent’s security interest in or Lien on any of the Collateral, or maintaining, preserving or
enforcing any of Agent’s or any Lender’s rights hereunder and under the other Loan Documents and under all related agreements, documents and instruments, whether through judicial proceedings or otherwise, or (d) in defending or
prosecuting any actions or proceedings arising out of or relating to Agent’s or any Lender’s transactions with any Credit Party, or (e) in connection with any advice given to Agent or any Lender with respect to its rights and
obligations under this Agreement and under the other Loan Documents and all related agreements, documents and instruments, may be charged to Borrowers’ Account and shall be part of the Obligations, or (f) in connection with any inspections
or appraisal conducted pursuant to Section 4.10, provided that absent the occurrence and continuation of an Event of Default, only four collateral appraisals (other than desk top appraisals) during any 12 month period following the
Closing Date shall be at the expense of the Borrowers. 
 16.10 Injunctive Relief. Each Credit Party recognizes
that, in the event such Credit Party fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, or threatens to fail to perform, observe or discharge such obligations or liabilities, any remedy at law may
prove to be inadequate relief to Secured Parties; therefore, Agent, if Agent so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving that actual damages are not an adequate
remedy. 
 16.11 Consequential Damages. Neither Agent nor any Lender, nor any agent or attorney for any of them,
shall be liable to any Credit Party (or any Affiliate of any such Person) for indirect, punitive, exemplary or consequential damages arising from any breach of contract, tort or other wrong relating to the establishment, administration or collection
of the Obligations or as a result of any transaction contemplated under this Agreement or any other Loan Document. 

  
 102

 16.12 Captions. The captions at various places in this Agreement are intended
for convenience only and do not constitute and shall not be interpreted as part of this Agreement. 
 16.13
Counterparts; Facsimile Signatures. This Agreement may be executed in any number of and by different parties hereto on separate counterparts, all of which, when so executed, shall be deemed an original, but all such counterparts shall
constitute one and the same agreement. Any signature delivered by a party by facsimile or other similar form of electronic transmission shall be deemed to be an original signature hereto. 

16.14 Construction. The parties acknowledge that each party and its counsel have reviewed this Agreement and that the
normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments, schedules or exhibits thereto. 

16.15 Confidentiality; Sharing Information. 
 Agent, each Lender and each Transferee shall hold all non-public information obtained by Agent, such Lender or such Transferee pursuant to the requirements of this Agreement in accordance with
Agent’s, such Lender’s and such Transferee’s customary procedures for handling confidential information of this nature; provided, however, that Agent, each Lender and each Transferee may disclose such confidential
information (a) to its examiners, Affiliates, outside auditors, counsel and other professional advisors, (b) to Agent, any Lender or to any prospective Transferees, (c) as required or requested by any Governmental Body or
representative thereof or pursuant to legal process, and (d) in connection with the enforcement of its rights under this Agreement and the other Loan Documents; provided, further that (i) unless specifically prohibited by
Applicable Law or court order, Agent, each Lender and each Transferee shall use its reasonable best efforts prior to disclosure thereof, to notify the applicable Credit Party of the applicable request for disclosure of such non-public information
(A) by a Governmental Body or representative thereof (other than any such request in connection with an examination of the financial condition of a Lender or a Transferee by such Governmental Body) or (B) pursuant to legal process and
(ii) in no event shall Agent, any Lender or any Transferee be obligated to return any materials furnished by any Credit Party other than those documents and instruments in possession of Agent or any Lender in order to perfect its Lien on the
Collateral once the Obligations have been paid in full and this Agreement has been terminated. 
 Each Credit Party acknowledges that from time
to time financial advisory, investment banking and other services may be offered or provided to such Credit Party or one or more of its Affiliates (in connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each Credit Party hereby authorizes each Lender to share any information delivered to such Lender by such Credit Party and its Subsidiaries pursuant to this Agreement, or in connection with the decision of such Lender
to enter into this Agreement, to any such Subsidiary or Affiliate of such Lender, it being understood that any such Subsidiary or Affiliate of any Lender receiving such information shall be bound by the provisions of this Section 16.15
as if it were a Lender hereunder. Such authorization shall survive the repayment of the other Obligations and the termination of this Agreement. 
 16.16 Publicity. Each Credit Party and each Lender hereby authorizes Agent to make appropriate announcements of the financial arrangement entered into among the Credit Parties, Agent and
Lenders, including announcements that are commonly known as tombstones, in such publications and to such selected parties as Agent shall in its sole and absolute discretion deem appropriate. No Lender may make any such announcement without the prior
written consent of Agent, such consent to be given or withheld in Agent’s sole and absolute discretion. 

  
 103

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

[Signature Pages Follow; Remainder of Page Intentionally Left Blank] 

  
 104

 Each of the parties has signed this Agreement as of the day and year first above written.

  

			
	BORROWERS:
	
	 VIRCO MFG. CORPORATION,

a Delaware corporation

		
	 By:
	 	 /s/ Robert E. Dose

	 Name:
	 	Robert E. Dose
	 Title:
	 	Vice President Finance,
		 	Treasurer and Secretary
	
	 VIRCO INC.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Robert E. Dose

	 Name:
	 	Robert E. Dose
	 Title:
	 	Vice President Finance,
		 	Treasurer and Secretary

 
			
	 PNC BANK, NATIONAL ASSOCIATION,

	 as Lender and as Agent

		
	 By:
	 	 /s/ Jeanette Vandenbergh

	 Name:
	 	Jeanette Vandenbergh
	 Title:
	 	Vice President
	
	 Commitment Percentage: 100%

 Exhibit 1.2(a) 

 

																			
	Borrowing Base Certificate	  	PNCBANK

 

																															
	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	Report No.	 	  	 
	 	  	 	 	 	 	 	 	 	 	 	Inventory	 	 	 	 	 	 	 	  	 	 	  	 
	Collateral Status	  	A/R	 	 	RM	 	 	WIP	 	 	WIP - ATS	 	 	FG	 	 	Total
Inventory	 	  	Total	 	  	 
	 1. Beginning Collateral (Line 4 prior report)
	  				 				 				 				 				 				  				  	
	 2. Additions to Collateral (New Billings Increases and Adjustments)
	  				 				 				 				 				 				  				  	
	 3. Deductions to Collateral
	  				 				 				 				 				 				  				  	
	 4. Total Collateral
	  				 				 				 				 				 	 	—  	  	  	 	—  	  	  	
	 5. Less Ineligible Collateral
	  				 				 				 	 	—  	  	 				 	 	—  	  	  	 	—  	  	  	
	 6. Total Eligible Collateral
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	
						
	Loan Status	  	A/R	 	 	Inventory	 	 	 	 	  	Total	 	  	 
	 7. Advance Percentage or Credit Limit
	  	 	85	% 	 	 	30.0	% 	 	 	5.1	% 	 	 	5.3	% 	 	 	54.1	% 	 				  				  	
	 8. Collateral Value (Elg. Coll. X Adv %)
	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	
	 9. Previous Loan Balance (Prior Line 13)
	  				 				 				 				 				 				  				  	
	 10. Less: A) Net Collections
	  				 				 				 				 				 				  				  	
	  B) Adjustments
	  				 				 				 				 				 				  				  	
	  C) Other
	  				 				 				 				 				 				  				  	
	 11. Subtotal for Loan Balance
	  				 				 				 				 				 				  				  	
	 12. Additional A) Request for Funds
	  				 				 				 				 				 				  				  	
	       Loan B) Return Items
	  				 				 				 				 				 				  				  	
	       Increases C) Other
	  				 				 				 				 				 				  				  	
	 13. New Loan Balance
	  				 				 				 				 				 				  				  	
	 14. Letters of Credit Outstanding
	  				 				 				 				 				 				  				  	
	 15. Collateral Available for Loan
	  	 	—  	  	 				 				 				 				 	 	—  	  	  	 	—  	  	  	Borrowing Base Loan
		  				 				 				 				 				 				  	 	—  	  	  	Availability

To induce PNC Bank, National Association (“PNC Bank”) to grant advances or other financial accomodations to us pursuant to the terms of our
Credit and Security Agreement dated as of                      with PNC Bank, as the same may be extended, amended, and/or restated from time to time
(“Credit Agreement”), we hereby certify, represent and warrant the following to PNC Bank, all as of the date hereof: (1) the foregoing statements of our accounts receivable and/or inventory collateral described above are true and
complete; (2) the total eligible collateral described in line 6 above represents only Qualified Accounts and Qualified Inventory, as those terms are defined in the Credit Agreement; (3) we are in compliance with all of the terms and
provisions of the Credit Agreement; and (4) there exists no Default or Event of Default under the Credit Agreement. 
  

					
	For PNC Bank Use	  		  	
			
		  	DATE	  	  

	Checked By                      Date
                    .	  		  	
		  	BORROWER	  	  

	Approved By                      Date
                    .	  		  	
		  	BY	  	

 Exhibit 1.2(b) 

Form of Compliance Certificate 
 COMPLIANCE CERTIFICATE 
 Dated
            , 20     
 This COMPLIANCE
CERTIFICATE is executed and delivered under and pursuant to the terms of that certain Revolving Credit and Security Agreement, dated as of December 22, 2011 (as such agreement may be amended, restated, or otherwise modified from time to time,
the “Credit Agreement”), among VIRCO MFG. CORPORATION, a Delaware corporation (“Borrowing Agent”), VIRCO INC., a Delaware corporation (together with Borrowing Agent and each other Person that becomes a party thereto
as a borrower pursuant to Section 7.12 of the Credit Agreement, collectively “Borrowers”), the Persons from time to time party thereto as a guarantor pursuant to Section 7.12 of the Credit Agreement, the financial
institutions that are now or that hereafter become a party thereto (collectively, “Lenders” and individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as administrative agent for
Lenders (PNC, in such capacity, “Agent”). Initially capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement. 

The undersigned, duly appointed and acting [Vice President Finance] [Treasurer] [Controller] of Borrowing Agent, being duly
authorized, hereby delivers this Compliance Certificate to Agent and Lenders solely in [his/her] capacity as [Vice President Finance] [Treasurer] [Controller] and on behalf of the Credit Parties and not in [his/her] individual
capacity, pursuant to Section [9.7][9.8][9.9]of the Credit Agreement. 
 1. Borrowing Agent hereby delivers to Agent
and each Lender [check as applicable]: 
  

	 	 ̈	the fiscal year end audited financial statements of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis and the statements,
reports and/or other management letters thereon from the Accountants to the extent required by Section 9.7 of the Credit Agreement, dated as of [        
    ,         ], which financial statements were prepared in accordance with GAAP applied on a basis consistent with prior practices and in reasonable detail and reported upon without
a “going concern” or like qualification by the Accountants; 

  

	 	 ̈	an unaudited fiscal quarter end balance sheet of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis and unaudited statements of
income and stockholders’ equity and cash flow of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis reflecting results of operations from the beginning of the fiscal year to the end of such quarter and
for such quarter, to the extent required by Section 9.8(i) of the Credit Agreement, dated as of [            ,         ], internally
prepared in accordance with GAAP (as applicable) on a basis consistent with prior practices and fairly representing the financial condition of Borrowers in all material respects, subject to normal and recurring year end adjustments and to the
absence of footnotes; 

  

	 	 ̈	for the fourth fiscal quarter, a summary of the last three month’s profits and losses, and cash flow of Borrowers and their Subsidiaries to the extent required by
Section 9.8(ii) of the Credit Agreement; or 

	 	 ̈	an unaudited month end balance sheet of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis and unaudited statements of income
and stockholders’ equity and cash flow of Borrowers and their Subsidiaries on a consolidating (if applicable) and consolidated basis reflecting results of operations from the beginning of the fiscal year to the end of such month and for such
month, to the extent required by Section 9.9 of the Credit Agreement, dated as of [            ,         ], prepared in accordance with
GAAP (as applicable) on a basis consistent with prior practices and fairly representing the financial condition of Borrowers in all material respects, subject to normal and recurring year end adjustments and to the absence of footnotes that
individually and in the aggregate are not material to Borrowers’ business. 

 2.
Borrowing Agent hereby certifies that, to the best of the applicable officer’s knowledge [check as
applicable]1: 

 

	 	 ̈	The Credit Parties are in compliance in all material respects with all federal, state and local Environmental Laws as of the date of this Compliance Certificate.

  

	 	 ̈	The Credit are not in compliance in all material respects with all federal, state and local Environmental Laws as of the date of this Compliance Certificate. The
specific area(s) of non-compliance and the Credit Parties’ proposed action the Credit Parties will implement to achieve full compliance is listed in Exhibit A. 

3. The undersigned officer certifies to Agent and Lenders that, except as may have been previously or concurrently disclosed to Agent in
writing by Borrowing Agent, each of the representations and warranties made by any Credit Party (or by the Borrowing Agent on their behalf) in or pursuant to the Credit Agreement, the other Loan Documents and any related agreements, and each of the
representations and warranties contained in any certificate, document or financial or other statement furnished at any time under or in connection with the Credit Agreement, the other Loan Documents or any related agreement are true and correct in
all material respects on and as of the date of this Compliance Certificate as if made on and as of such date (except to the extent such representations and warranties relate specifically to an earlier date, in which case, such representations and
warranties are be true and correct in all material respects as of such earlier date); provided that any Credit Party’s representation and warranty as to any forecast, projection or other statement regarding future performance, future financial
results or other future development is limited to the fact that such forecast, projection or statement was prepared in good faith on the basis of information and assumptions that such Credit Party believed to be reasonable as of the date such
material was prepared (it being understood that the projections are subject to uncertainties and contingencies, many of which are beyond such Credit Party’s control, and that no assurance can be given that the projections will be realized).

  
  

	1 	 To be included in Compliance Certificates delivered in connection with the financial statements referred to in Sections 9.7 and 9.8.

 4. The undersigned certifies to Agent and each Lender that, to [his/her] actual
knowledge obtained in the reasonably diligent performance of [his/her] duties, as of the date of this Compliance Certificate, except as previously or concurrently disclosed to Agent in writing by Borrowing Agent, the Credit Parties are in
compliance with the following negative covenants as indicated by circling yes/no under the “Complies” column below: 
  

									
	 Negative Covenants
	  	Complies?	 
	 Section 7.4 — Investments
	  	 	Yes	  	  	 	No	  
	 Section 7.6 — Capital Expenditures
	  	 	Yes	  	  	 	No	  
	 Section 7.7 — Dividends
	  	 	Yes	  	  	 	No	  
	 Section 7.8 — Indebtedness
	  	 	Yes	  	  	 	No	  
	 Section 7.10 — Transactions with Affiliates
	  	 	Yes	  	  	 	No	  

 5. The undersigned officer hereby certifies to Agent and each Lender that, to [his/her] actual
knowledge obtained in the reasonably diligent performance of [his/her] duties [check as applicable]: 
  

	 	 ̈	No Default or Event of Default exists as of the date hereof or existed during the period covered by the financial statements referenced in paragraph 1 of this
Compliance Certificate, except as previously or concurrently disclosed to Agent in writing by Borrowing Agent. 

  

	 	 ̈	One or more Defaults or Events of Default exist as of the date hereof or existed during the period covered by the financial statements referenced in paragraph 1
of this Compliance Certificate that have not been previously or concurrently disclosed to Agent in writing by Borrowing Agent. Included within Exhibit B attached hereto is a written description specifying each such Default or Event of
Default, its nature, when it occurred, whether it is continuing as of the date hereof and the steps being taken by the Credit Parties with respect thereto. Except as so specified, no other Default or Event of Default exists as of the date hereof.

 6. Attached hereto as Exhibit C is a true and accurate calculation setting forth information that
demonstrates compliance (or non-compliance) with the covenants set forth in Section 6.5 of the Credit Agreement as of the end of the most recent test period. The undersigned officer certifies that Borrowers are in compliance with the following
financial covenants as indicated by circling yes/no under the “Complies” column below: 
  

																	
	 Financial Covenants
	  	Required	 	  	Actual	 	  	Complies	 
	 Section 6.5(a) — Tangible Net Worth
	  	> $	        	  	  	 	            	  	  	 	Yes	  	  	 	No	  
	 Section 6.5(b) — Fixed Charge Coverage Ratio 1.10 to 1.02
	  				  	 	    to    	  	  	 	Yes	  	  	 	No	  
	 Section 6.5(c) — Minimum EBITDA
	  	> $	        	  	  	 	            	  	  	 	Yes	  	  	 	No	  

  

	2 	 Although the Fixed Charge Coverage Ratio covenant does not commence until July 30, 2012, Borrowers will report the Fixed Charge Coverage Ratio for
informational purposes for the fiscal period ending April 30, 2012. 

  

 IN WITNESS WHEREOF, the undersigned officer of Borrowing Agent has duly executed this
Compliance Certificate solely in [his/her] capacity as [Vice President Finance] [Treasurer] [Controller] and on behalf of the Credit Parties and not in [his/her] individual capacity, as of the date first written above.

  

	
	  

	[Name], [Vice President Finance] [Treasurer]
	[Controller] of VIRCO MFG. CORPORATION

 EXHIBIT A 
 to 
 COMPLIANCE CERTIFICATE 

dated 

            , 20     

The following is attached to and made a part of the above referenced Compliance Certificate. 

[specify non-compliance with Environmental Laws and proposed action] 

 EXHIBIT B 
 to 
 COMPLIANCE CERTIFICATE 

dated 

            , 20     

[specify Defaults or Events of Defaults] 

 EXHIBIT C 
 to 
 COMPLIANCE CERTIFICATE 

dated 

            , 20     

[attach calculations] 

 Exhibit 2.1(a) 

Form of Revolving Credit Note 
 REVOLVING CREDIT NOTE 
  

			
	$        	 	            , 20    

 This REVOLVING CREDIT NOTE (this “Note”) is executed and delivered under and pursuant to
the terms of that certain Revolving Credit and Security Agreement, dated as of the date hereof (as such agreement may be amended, restated, or otherwise modified from time to time, the “Credit Agreement”), among VIRCO MFG.
CORPORATION, a Delaware corporation (“Borrowing Agent”), VIRCO INC., a Delaware corporation (together with Borrowing Agent and each other Person that becomes a party thereto as a borrower pursuant to Section 7.12 of the Credit
Agreement, each a “Borrower”, and collectively “Borrowers”), the Persons from time to time party thereto as a guarantor pursuant to Section 7.12 of the Credit Agreement, the financial institutions that are now
or that hereafter become a party thereto (collectively, “Lenders” and individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as administrative agent for Lenders (PNC, in such
capacity, “Agent”). Initially capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement. 
 FOR VALUE RECEIVED, Borrowers hereby promise to pay to the order of                     , at the office
of Agent specified in the Credit Agreement or at such other place as Agent may from time to time designate, in accordance with the Credit Agreement, to Borrowing Agent in writing: 

(i) the principal sum of $        , or such other amount thereof as may be from
time to time advanced hereunder and pursuant to the terms of the Credit Agreement (the “Principal Amount”), subject to acceleration pursuant to the terms of the Credit Agreement; and 

(ii) interest on the Principal Amount of this Note from time to time outstanding until such Principal Amount is paid in
full at the applicable Revolving Interest Rate in accordance with the provisions of the Credit Agreement. In no event, however, shall interest exceed the maximum interest rate permitted by Applicable Law. Upon the occurrence and during the
continuation of an Event of Default, in accordance with the terms of the Credit Agreement, interest may be payable at the Default Rate. 
 This Note is a Revolving Credit Note under and as defined in the Credit Agreement and is secured by the Liens granted pursuant to the Credit Agreement and the other Loan Documents, is entitled to the
benefits of the Credit Agreement and the other Loan Documents, and is subject to all of the agreements, terms, and conditions therein contained. 
 This Note is subject to mandatory prepayment and may be voluntarily prepaid, in whole or in part, on the terms and conditions set forth in the Credit Agreement. 

If an Event of Default under Section 10.6 of the Credit Agreement occurs, this Note shall immediately become due and payable,
without notice on demand, together with reasonable and documented attorneys’ fees if the collection hereof is placed in the hands of an attorney to obtain or enforce payment hereof and if any other Event of Default occurs and is continuing,
this Note may, as provided in the Credit Agreement, be declared to be immediately due and payable, without notice on demand, in each case together with expenses and costs as provided in the Credit Agreement. 

  
 1 

 This Note shall be governed by and construed in accordance with the Applicable Law
pertaining in the State of New York, other than those conflict of law provisions that would defer to the substantive laws of another jurisdiction. This governing law election has been made in reliance (at least in part) on Section 5-1401 of the
General Obligations Law of the State of New York (as and to the extent applicable), and other Applicable Law. Any judicial proceeding brought by or against any Borrower with respect to any of the Obligations, the Credit Agreement, this Note, the
other Loan Documents or any related agreement may be brought in any court of competent jurisdiction in the City of New York, Borough of Manhattan, State of New York, United States of America, and, by execution and delivery of this Note, each
Borrower accepts, for itself and in connection with its properties, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any judgment rendered thereby in connection with this
Note. Each Borrower waives any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Each Borrower waives the right
to remove any judicial proceeding brought against any other party in any state court to any federal court. Any judicial proceeding by any party against any other Indemnitee involving, directly or indirectly, any matter or claim in any way arising
out of, related to or connected with this Note or any related agreement, shall be brought only in a federal or state court located in the City of New York, Borough of Manhattan, County of New York, State of New York. Without limiting the
applicability of any other provision of the Credit Agreement, the terms of Section 12.3 of the Credit Agreement are incorporated herein, mutatis mutandis, and shall apply to and govern this Note. 

Each Borrower expressly waives, to the extent not prohibited by law, the requirements of any presentment, demand, protest, notice of
protest, notice of intent to accelerate, notice of acceleration, or any other notice of any kind except as expressly provided in the Credit Agreement. 
 IN WITNESS WHEREOF, each Borrower has duly executed this Note as of the date first written above. 
  

			
	VIRCO MFG. CORPORATION,
	a Delaware corporation
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 VIRCO INC.,

a Delaware corporation

		
	By:	 	  

	Name:	 	
	Title:	 	

  
 2 

 Exhibit 8.1(k) 

Form of Financial Condition Certificate 
 FINANCIAL CONDITION CERTIFICATE 
 Dated
            , 20     
 This FINANCIAL CONDITION
CERTIFICATE is executed and delivered under and pursuant to the terms of that certain Revolving Credit and Security Agreement, dated as of the date hereof (as such agreement may be amended, restated, or otherwise modified from time to time, the
“Credit Agreement”), among VIRCO MFG. CORPORATION, a Delaware corporation (“Borrowing Agent”), VIRCO INC., a Delaware corporation (together with Borrowing Agent and each other Person that becomes a party thereto as
a borrower pursuant to Section 7.12 of the Credit Agreement, collectively “Borrowers”), the Persons from time to time party thereto as a guarantor pursuant to Section 7.12 of the Credit Agreement, the financial
institutions that are now or that hereafter become a party thereto (collectively, “Lenders” and individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as administrative agent for
Lenders (PNC, in such capacity, “Agent”). Initially capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement. 

Pursuant to Section 8.1(k) of the Credit Agreement, the undersigned, duly appointed and acting Vice President Finance of Borrowing
Agent, being duly authorized, hereby delivers this Financial Condition Certificate to Agent and Lenders and hereby certifies, solely in [his/her] capacity as Vice President Finance and on behalf of the Credit Parties and not in
[his/her] individual capacity, pursuant the Credit Agreement, that to (a) [his/her] actual knowledge or (b) the knowledge that [he/she] would have obtained if engaged in the good faith and reasonably diligent
performance of [his/her] duties, as of the date hereof: 
 (i) The pro forma balance sheet of Borrowers on a Consolidated
Basis (the “Pro Forma Balance Sheet”) furnished to Agent as of the Closing Date reflects the consummation of the transactions contemplated by and under the Credit Agreement (collectively, the “Transactions”) and
fairly reflects the financial condition of Borrowers on a Consolidated Basis as of the Closing Date after giving effect to the Transactions, and has been prepared in accordance with GAAP, consistently applied, except as may be disclosed in such
financial statement. 
 (ii) The twelve-month operating statement projections of Borrowers on a Consolidated Basis and their
projected balance sheets as of the Closing Date, copies of which are annexed to hereto as Exhibit 5.5(b) (the “Projections”), were prepared by the Vice President Finance of Borrowing Agent, in good faith based upon
assumptions believed by Borrowers to be reasonable at the time made (it being understood that such projections are subject to uncertainties and contingencies and that no assurance can be given that any particular projection will be realized).

 (iii) After giving effect to the Transactions, the Credit Parties, taken as a whole, are solvent, able to pay their debts as
they mature, have capital sufficient to carry on their businesses and all businesses in which they are about to engage, and as of the Closing Date, the fair present saleable value of their assets, taken as a whole, calculated on a going concern
basis, is in excess of the amount of their liabilities. 
 (iv) Each of the representations and warranties made by each Credit
Party in or pursuant to the Credit Agreement and the other Loan Documents, and each of the representations and warranties contained in any certificate, document or financial or other statement furnished under or in

  
 1 

 
connection with the Credit Agreement or the other Loan Documents are true and correct in all material respects on and as of the date hereof (except to the extent any such representation or
warranty is already qualified by a materiality qualifier in which case it is true and correct in all respects); provided that any Credit Party’s representation and warranty as to any forecast, projection or other statement regarding future
performance, future financial results or other future development is limited to the fact that such forecast, projection or statement was prepared in good faith on the basis of information and assumptions that such Credit Party believed to be
reasonable as of the date such material was prepared (it being understood that the projections are subject to uncertainties and contingencies, many of which are beyond such Credit Party’s control, and that no assurance can be given that the
projections will be realized). 
 (v) As of the Closing Date, since January 31, 2011, there has been no change in the
condition, financial or otherwise, of the Credit Parties that individually or in the aggregate has had a Material Adverse Effect. 
 IN WITNESS WHEREOF, the undersigned officer of Borrowing Agent has duly executed this Financial Condition Certificate solely in [his/her] capacity as Vice President Finance and on behalf of the
Credit Parties and not in [his/her] individual capacity, as of the date first written above. 
  

	
	  

	[Name], Vice President Finance of VIRCO MFG. CORPORATION

  
 2 

 Exhibit 5.5(b) 

Projections 
 (See attached.)

  
 3 

 Exhibit 16.3 

Form of Commitment Transfer Supplement 
 COMMITMENT TRANSFER SUPPLEMENT 
 This COMMITMENT TRANSFER SUPPLEMENT is
dated as of             , 20    by and among                     (the
“Transferor Lender”), each Purchasing Lender executing this Commitment Transfer Supplement (each, a “Purchasing Lender”), and PNC BANK, NATIONAL ASSOCIATION, (“PNC”) as administrative agent (PNC, in
such capacity, “Agent”) for Lenders (as defined below) under the Credit Agreement (as defined below). 

WHEREAS, this Commitment Transfer Supplement is being executed and delivered in accordance with Section 16.3 of the Revolving
Credit and Security Agreement, dated as December 22, 2011(as such agreement may be amended, restated, or otherwise modified from time to time, the “Credit Agreement”), among VIRCO MFG. CORPORATION, a Delaware corporation, VIRCO
INC., a Delaware corporation (together with each other Person that becomes a party thereto as a borrower pursuant to Section 7.12 of the Credit Agreement, collectively “Borrowers”), the Persons from time to time party thereto
as a guarantor pursuant to Section 7.12 of the Credit Agreement, the financial institutions that are now or that hereafter become a party thereto (collectively, “Lenders” and individually a “Lender”) and
Agent; 
 WHEREAS, each Purchasing Lender wishes to become a Lender party to the Credit Agreement; and 

WHEREAS, the Transferor Lender is selling and assigning to each Purchasing Lender, rights, obligations and commitments under the Credit
Agreement. 
 NOW, THEREFORE, the parties hereto hereby agree as follows: 

1. Initially capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement. 

2. Upon receipt by Agent of four (4) counterparts of this Commitment Transfer Supplement, to each of which is attached a fully
completed Schedule I, and each of which has been executed by the Transferor Lender and Agent, Agent will transmit to the Transferor Lender and each Purchasing Lender a Transfer Effective Notice, substantially in the form of Schedule II
to this Commitment Transfer Supplement (a “Transfer Effective Notice”). Such Transfer Effective Notice shall set forth, inter alia, the date on which the transfer effected by this Commitment Transfer Supplement shall become
effective (the “Transfer Effective Date”), which date shall not be earlier than the first Business Day following the date such Transfer Effective Notice is received. From and after the Transfer Effective Date, each Purchasing Lender
shall be a Lender party to the Credit Agreement for all purposes thereof. 
 3. At or before 12:00 Noon (New York City Time) on
the Transfer Effective Date each Purchasing Lender shall pay to the Transferor Lender, in immediately available funds, an amount equal to the purchase price, as agreed between the Transferor Lender and such Purchasing Lender (the “Purchase
Price”), of the portion of the Advances being purchased by such Purchasing Lender (such Purchasing Lender’s “Purchased Percentage”) of the outstanding Advances and other amounts owing to the Transferor Lender under the
Credit Agreement and the Revolving Credit Note. Effective upon receipt by the Transferor Lender of the Purchase Price from a Purchasing Lender, the Transferor Lender hereby 

  
 1 

 
irrevocably sells, assigns, and transfers to such Purchasing Lender, without recourse, representation or warranty, and each Purchasing Lender hereby irrevocably purchases, takes and assumes from
the Transferor Lender, such Purchasing Lender’s Purchased Percentage of the Advances and other amounts owing to the Transferor Lender under the Credit Agreement, together with all instruments, documents and collateral security pertaining
thereto. 
 4. The Transferor Lender has made arrangements with each Purchasing Lender with respect to (a) the portion, if
any, to be paid, and the date or dates for payment, by the Transferor Lender to such Purchasing Lender of any fees heretofore received by the Transferor Lender pursuant to the Credit Agreement prior to the Transfer Effective Date, and (b) the
portion, if any, to be paid and the date or dates for payment, by such Purchasing Lender to the Transferor Lender of fees or interest received by such Purchasing Lender pursuant to the Credit Agreement from and after the Transfer Effective Date.

 5. All principal payments that would otherwise be payable from and after the Transfer Effective Date to or for the account of
the Transferor Lender pursuant to the Credit Agreement shall, instead, be payable to or for the account of the Transferor Lender and the Purchasing Lender, as the case may be, in accordance with their respective interests as reflected in this
Commitment Transfer Supplement. 
 6. All interest, fees and other amounts that would otherwise accrue for the account of the
Transferor Lender from and after the Transfer Effective Date pursuant to the Credit Agreement shall, instead, accrue for the account of, and be payable to, the Transferor Lender and the Purchasing Lender, as the case may be, in accordance with their
respective interests as reflected in this Commitment Transfer Supplement. In the event that any amount of interest, fees or other amounts accruing prior to the Transfer Effective Date was included in the Purchase Price paid by any Purchasing Lender,
the Transferor Lender and each Purchasing Lender will make appropriate arrangements for payment by the Transferor Lender to such Purchasing Lender of such amount upon receipt thereof from Borrowers. 

7. Concurrently with the execution and delivery hereof, the Transferor Lender will provide to each Purchasing Lender copies of the Credit
Agreement and all related documents delivered to the Transferor Lender. 
 8. Each of the parties to this Commitment Transfer
Supplement agrees that at any time and from time to time, upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to
effect the purposes of this Commitment Transfer Supplement. 
 9. By executing and delivering this Commitment Transfer
Supplement, the Transferor Lender and each Purchasing Lender confirm to and agree with each other and Agent and Lenders as follows: (a) other than the representation and warranty that it is the legal and beneficial owner of the interest being
assigned hereby free and clear of any adverse claim, the Transferor Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant thereto; (b) the Transferor Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition of Borrowers or the performance or observance by Borrowers of any of their Obligations under the Credit Agreement or any other instrument or document furnished pursuant
hereto; (c) each Purchasing Lender confirms that it has received a copy of the Credit Agreement, together with copies of such financial statements and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Commitment Transfer Supplement; (d) each Purchasing Lender will, independently and without reliance 

  
 2 

 
upon Agent, the Transferor 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 the Credit Agreement; (e) each Purchasing Lender appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement as are delegated to Agent by the terms
thereof; (f) each Purchasing Lender agrees that it will perform all of its respective obligations as set forth in the Credit Agreement to be performed by each as a “Lender”; and (g) each Purchasing Lender represents and warrants
to the Transferor Lender, the other Lenders, Agent and Borrowers that it is either (i) entitled to the benefits of any income tax treaty with the United States of America that provides for an exemption from the United States withholding tax on
interest and other payments made by Borrowers under the Credit Agreement and the Loan Documents or (ii) is engaged in trade or business within the United States of America. 

10. Each Purchasing Lender: (a) represents and warrants to the Transferor Lender, the other Lenders, Agent and Borrowers that under
applicable law and treaties no tax will be required to be withheld by Borrowers with respect to any payments to be made to the Purchasing Lender under the Credit Agreement; (b) agrees to furnish (if the Transferor Lender is organized under the
laws of any jurisdiction other than the U.S. or any state thereof) to Agent and Borrowers prior to the time that Agent or Borrowers are required to make any payment of principal, interest, or fees to the Purchasing Lender under the Credit Agreement,
duplicate executed originals of either U.S. Internal Revenue Service Form W-8ECI or U.S. Internal Revenue Service Form W-8BEN (wherein the Purchasing Lender claims entitlement to the benefits of a tax treaty that provides for a complete exemption
from U.S. federal income withholding tax on all payments hereunder) and agrees to provide new Forms W-8ECI or W-8BEN upon the expiration of any previously delivered form or comparable statements in accordance with applicable U.S. laws and
regulations and any amendments thereto, duly executed and completed by the Purchasing Lender; and (c) agrees to comply with all applicable U.S. laws and regulations and any amendments thereto with regard to such withholding tax exemption.

 11. Schedule I hereto sets forth the revised Commitment Percentages of the Transferor Lender and the Commitment
Percentage of each Purchasing Lender, as well as administrative information with respect to each Purchasing Lender. 
 12. This
Commitment Transfer Supplement shall be governed by and construed in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of New York. 

IN WITNESS WHEREOF, the parties hereto have caused this Commitment Transfer Supplement to be executed by their respective duly authorized
offices on the date set forth above. 
  

			
	  

	as the Transferor Lender
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

	as a Purchasing Lender

  
 3 

			
	By:	 	  

	Name:	 	
	Title:	 	
	
	 PNC BANK, NATIONAL ASSOCIATION,
 as Agent

		
	By:	 	  

	Name:	 	
	Title:	 	

  
 4 

 SCHEDULE I 
 TO 
 COMMITMENT TRANSFER SUPPLEMENT 

LIST OF OFFICES, ADDRESSES FOR NOTICE AND COMMITMENT AMOUNTS 

 

					
	[Transferor Lender]	  	Revised Commitment Amount	  	$            
		  	Revised Commitment Percentage	  	        %
	[Purchasing Lender]	  	Commitment Amount	  	$            
		  	Commitment Percentage	  	        %

 Addresses for Notices: 
  

			
	  

	
	  

	
	  

		
	Attention:	 	  

	Telephone:	 	  

	Telecopier:	 	  

 SCHEDULE II 
 TO 
 COMMITMENT TRANSFER SUPPLEMENT 

[Form of Transfer Effective Notice] 
 To:                     , as the Transferor Lender 

and 

                    , as a Purchasing
Lender: 
 The undersigned, as Agent under the Revolving Credit and Security Agreement, dated as December 22, 2011 (as such
agreement may be amended, restated, or otherwise modified from time to time, the “Credit Agreement”), among VIRCO MFG. CORPORATION, a Delaware corporation, VIRCO INC., a Delaware corporation, each other Person that becomes a party
thereto as a borrower pursuant to Section 7.12 of the Credit Agreement, the Persons from time to time party thereto as a guarantor pursuant to Section 7.12 of the Credit Agreement, the financial institutions that are now or that hereafter
become a party thereto (collectively, “Lenders”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as administrative agent for Lenders (PNC, in such capacity, “Agent”), acknowledges receipt of four
(4) executed counterparts of a completed Commitment Transfer Supplement in the form attached hereto. Initially capitalized terms used but not defined herein have the respective meanings set forth in such Commitment Transfer Supplement.

 Pursuant to such Commitment Transfer Supplement, you are advised that the Transfer Effective Date will be
            , 20    . 
  

			
	 PNC BANK, NATIONAL ASSOCIATION,

as Agent

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 ACCEPTED FOR RECORDATION 
 IN REGISTER:                      

[ATTACH COMMITMENT TRANSFER SUPPLEMENT] 

 Schedule A 
 Notice Address 
  

			
	Notice Address for Agent:
	
	PNC Bank, National Association
	Two North Lake Avenue, Suite 440
	Pasadena, California 91101
	Attention:	  	Relationship Manager (Virco Mfg. Corporation)
	Telephone:	  	(626) 432-7546
	Facsimile:	  	(626) 432-4589
	
	with a copy (which shall not constitute notice) to:
	
	PNC Bank, National Association
	PNC Agency Services
	PNC Firstside Center
	500 First Avenue, 4th Floor
	Pittsburgh, Pennsylvania 15219
	Attention:	  	Lisa Pierce
	Telephone:	  	(412) 762-6442
	Facsimile:	  	(412) 762-8672
	
	with an additional copy to:
	
	McGuireWoods LLP
	1800 Century Park East, 8th Floor
	Los Angeles, California 90067
	Attention:	  	Matthew J. Wrysinski, Esq.
	Telephone:	  	(310) 315-8294
	Facsimile:	  	(310) 956-3194
	
	Notice Address for Credit Parties:
	
	Virco Mfg. Corporation
	2027 Harpers Way
	Torrance, California 90501
	Attention:	  	Robert E. Dose
		  	VP Finance
	Facsimile:	  	(310)533-1906
	Attention:	  	Robert E. Dose
		
	Virco Inc.	  	
	2027 Harpers Way
	Torrance, California 90501
	Attention:	  	Robert E. Dose
		  	VP Finance
	Facsimile:	  	(310)533-1906
	Attention:	  	Robert E. Dose

 Schedule 1.2 
 Permitted Encumbrances 
 Liens evidenced by the following UCC-1 Financing Statements:

  

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	 SECURED PARTY
	  	 FILE NO./

FILE DATE

	Virco Mfg. Corporation	  	DE SOS	  	 General Electric Capital Corporation

2400 E. Katella

Avenue, Suite 800

Anaheim, CA 92806
	  	 Initial
 4047750 7
 02/20/04

				
		  		  		  	 Amendment
 4047750 7
 03/03/04

				
		  		  		  	 Continuation
 2008 3916259
 11/24/08

				
	Virco Mfg. Corporation	  	DE SOS	  	 General Electric Capital Corporation

7700 Irvine Center

Drive, Suite 400

Irvine, CA 92618
	  	 Initial
 4047790 3
 02/20/04

				
		  		  		  	 Amendment
 4053985 0
 02/26/04

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	SECURED PARTY	  	 FILE NO./

FILE DATE

		  		  		  	 Continuation
 2008 3916267
 11/24/08

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Wells Fargo Equipment Finance, Inc.
 733 Marquette Avenue,
 Suite 700

Minneapolis,

MN 55402
	  	 Initial
 2008 3225370
 09/18/08

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Wells Fargo Equipment Finance, Inc.
 733
Marquette Avenue,
 Suite 700
 Minneapolis,
 MN 55402
	  	 Initial
 2008 3225412
 09/18/08

				
		  		  		  	 Amendment
 2008 4317416
 12/18/08

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Wells Fargo Equipment Finance, Inc.
 733
Marquette Avenue,
 Suite 700
 Minneapolis,
 MN 55402
	  	 Initial
 2008 3758677
 11/10/08

				
		  		  		  	 Amendment
 2009 0805975
 03/13/09

  
 2 

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	SECURED PARTY	  	 FILE NO./

FILE DATE

	 Virco Mfg. Corporation
	  	DE SOS	  	Air Liquide Industrial US LP
 801 W. North Carrier
 Grand Prairie,

TX 75050
	  	 Initial
 2009 1636254
 05/22/09

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Comerica Bank
 1508 West

Mockingbird Lane

MC 6583
 Dallas,
Texas 75235
	  	 Initial
 2009 2341995
 07/22/09

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Ricoh Americas Corporation
 1111 Old Eagle
School Road
 Wayne, PA 19087
	  	 Initial
 2009 3342604
 10/16/09

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Toyota Motor Credit Corporation
 PO Box
3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1212947
 04/08/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Toyota Motor Credit Corporation

PO Box 3457

Torrance, CA 90510-345
	  	 Initial
 2010 1501562
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	Toyota Motor Credit Corporation
 PO Box
3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1501836
 04/29/10

  
 3 

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	 SECURED PARTY
	  	 FILE NO./

FILE DATE

	 Virco Mfg. Corporation
	  	DE SOS	  	 Toyota Motor Credit Corporation

PO Box 3457

Torrance, CA 90510-345
	  	 Initial
 2010 1502149
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1502271
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1502461
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1502750
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1503014
 04/29/10

				
	 Virco Mfg. Corporation
	  	DE SOS	  	 Business World Inc.
 PO Box 609
 Cedar Rapids, IA 52406
	  	 Initial
 2010 2351322
 07/07/10

  
 4 

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	SECURED PARTY	  	 FILE NO./

FILE DATE

	 Virco Mfg. Corporation
	  	DE SOS	  	Toyota Motor Credit Corporation

PO Box 3457

Torrance, CA 90510-345
	  	 Initial
 2011 0424690
 02/04/11

				
		  		  		  	 Amendment
 2011 0439342
 02/07/11

				
	 Virco Inc.
	  	DE SOS	  	Dell Financial Services, L.P.
 122234 N.
IN-35
 Bldg B
 Austin, TX 78753
	  	 Initial
 5142095 0
 05/09/05

				
		  		  		  	 Continuation
 5142095 0
 04/13/10

				
		  		  	Dell Financial Services L.L.C
 Mail Stop
PS2DF-23
 One Dell Way
 Round Rock,
 TX 78682
	  	 Amendment
 5142095 0
 07/20/10

				
	 Virco Inc.
	  	DE SOS	  	Toyota Motor Credit Corporation
 PO Box
3457
 Torrance, CA 90510-345
	  	 Initial
 2007 1860096
 05/14/07

				
	 Virco Inc.
	  	DE SOS	  	Greatamerica Leasing Corporation

PO Box 609
 Cedar
Rapids, IA 52406-060
	  	 Initial
 2008 1777992
 05/22/08

  
 5 

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	 SECURED PARTY
	  	 FILE NO./

FILE DATE

	 Virco Inc.
	  	DE SOS	  	 GFC Leasing, A Division of Gordon

Flesch Co., Inc.

2101 W. Beltline Hwy
 Madison, WI 53713
	  	 Initial
 2008 3676382
 10/31/08

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510-345
	  	 Initial
 2010 1214760
 04/08/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503352
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503592
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503691
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503774
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503873
 04/29/10

  
 6 

							
	 CREDIT PARTY
	  	 JURISDICTION
	  	 SECURED PARTY
	  	 FILE NO./

FILE DATE

	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1503964
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1504012
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Toyota Motor Credit Corporation
 PO Box 3457
 Torrance, CA 90510
	  	 Initial
 2010 1504087
 04/29/10

				
	 Virco Inc.
	  	DE SOS	  	 Komatsu Financial, L.P.
 1701 W. Golf Road,
 Suite 300

Rolling Meadows, IL 60008
	  	 Initial
 2011 4134097
 10/17/11

  
 7 

 Schedule 4.5 
 Locations of Equipment/Inventory 
 Chief Executive Office 

2027 Harpers Way 
 Torrance, CA 90501 

Owned Locations 
 1701 Sturgis Road

 Conway, AR 72034 
 1265 Bruce Street

 Conway, AR 72034 
 Leased
Locations 
  

					
	 Credit Party
	  	 Leased Location
	 	 Landlord

	Virco Mfg. Corporation	  	 2027 Harpers Way

Torrance, CA 90501
	 	 Starboard Distribution Center, LLC
 c/o Prologis
 17777 Center Court Drive N.
 Suite 100
 Cerritos, CA 90703
 Attn: Maribel Castro

			
	Virco Mfg. Corporation	  	 1655 Amity Road
 Conway,
AR 72034
	 	 Dewayne Davis
 PO Box
2027
 Edwards, CO 81632

 Third Party Locations 
  

					
	 Credit Party
	  	 Third Party Location
	 	 Third Party

	Virco Mfg. Corporation	  	 2250 East Cherry Industrial Circle
 Long Beach, CA 90805
	 	 Medway Plastics Corp.

2250 East Cherry Industrial Circle
 Long Beach,
CA 90805

			
	Virco Mfg. Corporation	  	 434 W. 164th St.

Gardena, CA 90248
	 	 Decor Plating, Inc.
 434
W. 164th St.
 Gardena, CA 90248

			
	Virco Mfg. Corporation	  	 2701 N. San Fernando Road

Los Angeles, CA 90065
	 	 Valley Plating Works, Inc.
 2701 N. San Fernando Road
 Los Angeles, CA 90065

 Other 
 Sample inventory, computers and cell phones held at regional sales offices. 

  
 9 

 Schedule 4.15(h) 

Deposit and Investment Accounts 
 Provided to Agent. 

  
 10 

 Schedule 4.19 

Real Property 
  

			
	 Property Location
	  	 Owned/Leased

	 2027 Harpers Way
 Torrance, CA 90501
	  	Leased
	 1701 Sturgis Road
 Conway, AR 72034
	  	Owned
	 1265 Bruce Street
 Conway, AR 72034
	  	Owned
	 1655 Amity Road
 Conway, AR 72034
	  	Leased

  
 11 

 Schedule 5.1 
 Consents 
 Consent of the Board of Directors of Virco Mfg. Corporation. 

Consent of the Board of Directors of Virco Inc. 

  
 12 

 Schedule 5.2(a) 

States of Qualification and Good Standing 
  

					
	 Company
	  	 State of Incorporation
	  	 States of Qualification

	Virco Mfg. Corporation	  	Delaware	  	Delaware, California, Arkansas
	Virco Inc.	  	Delaware	  	Delaware, California, Arkansas

  
 13 

 Schedule 5.2(b) 

Subsidiaries 
 Virco Inc.
is a wholly-owned subsidiary of Virco Mfg. Corporation. 

  
 14 

 Schedule 5.4 
 Federal Tax Identification Numbers 
 Provided to Agent. 

  
 15 

 Schedule 5.6 
 Prior Names 
 On January 31, 2011, Virco Mgmt Corporation, a 100% wholly owned
subsidiary of Virco Mfg. Corporation was liquidated and all assets transferred to Virco Mfg. Corporation. 

  
 16 

 Schedule 5.8(b) 

Litigation 
 None.

  
 17 

 Schedule 5.8(d) 

Plans 
 Virco Employees
Retirement Plan 
 Virco Important Performers Master Plan 
 Retirement Plan for Non-Employee Directors of Virco Mfg. Corporation 
 Virco Mfg. Corporation
401(k) Plan 

  
 18 

 Schedule 5.9 
 Intellectual Property 
 Provided to Agent. 

  
 19 

 Schedule 5.10 
 Licenses and Permits 
 None. 

  
 20 

 Schedule 5.14 
 Labor Disputes 
 None. 

  
 21 

 Schedule 5.26 
 Commercial Tort Claims 
 None. 

  
 22 

 Schedule 7.3 
 Guarantees 
 None. 

  
 23 

 Schedule 7.4 
 Investments 
 Virco Mfg. Corporation’s investment in all the capital stock of Virco
Inc. 

  
 24 

 Schedule 7.8 
 Indebtedness 
 $24,000 to be paid to CRX Limited pursuant to that certain Patent Purchase
Agreement dated as of December 16, 2003 by and between Virco Mgmt. Corporation (as predecessor in interest of Virco Mfg. Corporation) and CRX limited. 

  
 25Purchase and Settlement Agreement

 Exhibit 10.1 
 Execution Version 
 PURCHASE AND SETTLEMENT AGREEMENT

 This PURCHASE AND SETTLEMENT AGREEMENT (this “Agreement”), is made and entered into as of
December 19, 2011, by and between Mattersight Corporation, a Delaware corporation (the “Company”), and TCV III (GP), TCV III (Q), L.P., TCV III, L.P., TCV III Strategic Partners, L.P., TCV IV, L.P. and TCV IV Strategic
Partners, L.P. (collectively the “Sellers” and individually referred to as a “Seller”). 

WHEREAS, the Sellers collectively own 1,872,805 shares (the “Shares”) of 7% Series B Convertible Preferred Stock, par
value $0.01 per share, of the Company (the “Series B Stock”); 
 WHEREAS, the Company entered into that certain
Acquisition Agreement dated as of March 17, 2011 providing for the sale of assets used in the Integrated Contact Solutions Business Unit (the “Asset Sale”) to a subsidiary of TeleTech Holdings, Inc.; 

WHEREAS, the Company and the Sellers held differing views regarding the effect of the closing of the Asset Sale under the Certificate of
Designations for the Series B Stock; 
 WHEREAS, the parties submitted their dispute to arbitration in the Court of Chancery of
the State of Delaware (the “Arbitration”); 
 WHEREAS, the parties wish to settle the dispute and terminate the
Arbitration; 
 WHEREAS, in connection with the settlement of the dispute and termination of the Arbitration, the Sellers wish
to sell to the Company, and the Company wishes to purchase from the Sellers, the Shares, upon the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, the parties hereby agree as follows: 
 1. Purchase and Sale 

(a) Purchase Price. Upon the terms and subject to the conditions of this Agreement, the Sellers agree to sell the Shares to the
Company, and the Company agrees to repurchase the Shares from the Sellers. The purchase price (the “Purchase Price”) payable in respect of each of the Shares shall equal the sum of (i) $5.10 per share plus an amount equal to
the accrued but unpaid dividends on the Series B Stock as of the Closing Date (the “Per Share Cash Amount”) and (ii) $3.50 per share (the “Per Share Deferred Amount”), payable as follows: 

(i) The aggregate Per Share Cash Amount shall be paid by the Company to the Sellers on the Closing Date in cash by wire
transfer of immediately available funds to the account(s) designated prior to the Closing Date by the Sellers. 

(ii) The aggregate Per Share Deferred Amount shall be paid by the Company through the execution and delivery to the
Sellers on the Closing Date of promissory notes in the form attached hereto as Exhibit A (the “Notes”). 

 (b) Closing. 

(i) Timing. The purchase and sale of the Shares shall occur on December 20, 2011 (the “Closing
Date”). 
 (ii) Deliveries. On the Closing Date: (A) the Sellers shall deliver to the
Company one or more original stock certificates representing the Shares, together with an original duly executed stock power for each stock certificate authorizing transfer of the Shares to the Company, in form and substance reasonably satisfactory
to the Company; (B) the Company shall pay to each Seller its pro rata share of the aggregate Per Share Cash Amount, as set forth on Schedule I attached hereto; and (C) the Company shall deliver to each Seller an original duly
executed Note, representing such Seller’s pro rata share of the aggregate Per Share Deferred Amount, as set forth in Schedule I attached hereto. 
 (c) Legend Removal. In the event any Seller requests that the Company remove the restrictive legends from the shares of common stock, par value $0.01 per share, of the Company owned by any
such Seller as of the date hereof, the Company agrees to instruct the transfer agent to remove such legends upon receipt of an opinion of counsel to the Seller to the effect that the removal of such legends is in compliance with all applicable state
and federal securities laws. 
 2. Representations of the Sellers. The Sellers severally represent and warrant to, and covenant and agree with,
the Company as of the date hereof and as of the Closing Date, as follows: 
 (a) Power and Authority. The Sellers have
all requisite power and authority to execute and deliver this Agreement and to perform their obligations under this Agreement. 

(b) Binding Obligations. This Agreement constitutes the legal, valid, and binding obligation of the Sellers, enforceable against
each Seller in accordance with its terms. 
 (c) No Violation. The execution, delivery, and performance of this Agreement
by the Sellers does not and shall not conflict with, violate, or cause a breach of any agreement, contract, or instrument to which any Seller is a party or any judgment, order, or decree to which any Seller is subject. 

(d) Title. The Shares include all Series B Stock owned by the Sellers. The Sellers own beneficially and of record and have good
and marketable title to the Shares as set forth on Schedule I hereto, free and clear of all liens, charges, claims, security agreements, equities, options, pledges, and encumbrances. On the Closing Date, the Company will acquire good title to
the Shares, free and clear of all liens, charges, claims, security agreements, equities, options, pledges, and encumbrances. 

(e) Acquisition of Notes Entirely for Own Account. The Notes are being issued to Sellers in reliance upon the Sellers’
representations to the Company, which by execution of this Agreement by the Sellers the Sellers hereby confirm, that the Notes to be acquired by the Sellers will be acquired for investment for each Seller’s own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof, and that each Seller has no present 

  
 2 

 
intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Sellers further represent that they do not presently have any contract,
undertaking, agreement, or arrangement with any person to sell, transfer, or grant participations to such person or to any third person, with respect to the Notes. 
 (f) Access to Information. The Sellers have had an opportunity to ask the Company and its officers questions and receive answers regarding the Company’s business, management, and financial
affairs, and the terms and conditions of the purchase of the Shares, including the terms and conditions of the Notes, and have had full access to such other information concerning the Company and its operations and financial performance as the
Sellers have requested. The Sellers acknowledge that they have completed to their satisfaction their own due diligence investigation with respect to all of the facts, laws, and circumstances material to this Agreement or any provision hereof.

 (g) Restricted Securities. The Sellers understand that the Notes have not been, and will not be, registered under the
Securities Act of 1933, as amended (the “Act”), by virtue of §4(2) of the Act and the provisions of Regulation D promulgated thereunder which depends upon, among other things, the bona fide nature of the investment intent and
the accuracy of the Sellers’ representations as expressed herein. The Sellers understand that the Notes are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Sellers
must hold the Notes indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Sellers acknowledge
that the Company has no obligation to register or qualify the Notes for resale. The Sellers further acknowledge that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Notes, and requirements relating to the Company which are outside of the Sellers’ control, and which the Company is under no obligation and may not be able to satisfy.

 (h) No Public Market. The Sellers understand that no public market now exists for the Notes, and that no public market
may ever exist for the Notes. 
 (i) Legends. The Sellers understand that the Notes, and any securities issued in respect
of or exchange for the Notes, will bear the following legend: 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN
ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SAID ACT. IN ADDITION, THE TRANSFERABILITY OF THE SECURITIES REPRESENTED HEREBY IS RESTRICTED AS SET FORTH IN SECTION 3 HEREOF. 

  
 3 

 (j) Accredited Investor. Each of the Sellers is an “Accredited Investor” as
defined in Rule 501(a) of Regulation D of the Securities and Exchange Act of 1934, as amended. 
 (k) Sophisticated
Party. Each of the Sellers (i) is a sophisticated entity with respect to the sale of the Shares and receipt of the Notes, (ii) has adequate information concerning the business and financial condition of Company to make an informed
decision regarding the sale of the Shares and receipt of the Notes and (iii) has independently and without reliance upon the Company, and based on such information as each Seller has deemed appropriate, made its own analysis and decision to
enter into this Agreement, except that the Sellers have relied upon the Company’s express representations, warranties, covenants, agreements, and indemnities in this Agreement. The Sellers acknowledge that the Company has not given the
Sellers any investment advice, credit information, or opinion on whether the sale of the Shares or receipt of the Notes are prudent. 
 3.
Representations of the Company. 
 The Company represents and warrants to, and covenants and agrees with the Sellers, as of the
date hereof and as of the Closing Date as follows: 
 (a) Corporate Power and Authority. The Company has all requisite
corporate power and authority, and has obtained all approvals and consents required to enter into, to execute and deliver this Agreement and the Notes, and to perform its obligations under this Agreement and the Notes. The Board of Directors of the
Company has duly approved this Agreement and the Notes and has duly authorized the execution, delivery and performance of this Agreement and the Notes. No other corporate proceedings on the part of the Company are necessary to approve and authorize
the execution and delivery of this Agreement and the Notes by the Company, and the consummation of the transactions contemplated hereby or thereby. 
 (b) Binding Obligations. This Agreement constitutes, and upon its execution and delivery by the Company, each of the Notes will constitute, a legal, valid, and binding obligation of the Company,
enforceable against the Company in accordance with its terms. 
 (c) No Violation. The execution, delivery, and
performance of this Agreement and the Notes by the Company does not and shall not (a) conflict with, violate, or cause a breach of, (b) constitute a default under or give any person or entity the right to exercise any remedy under or to
accelerate the maturity or performance of or to cancel, terminate or modify, or (c) require any authorization, consent, approval, exemption or other action by or notice to any court or other governmental body under, the provisions of the
certificate of incorporation or bylaws of the Company or any agreement, contract, or instrument to which the Company is a party or by which any of its assets or bound or by which any of its assets are affected, or any applicable law, statute, rule
or regulation, or any judgment, order, or decree to which the Company is subject. 
 (d) Proceedings. There is no pending
or threatened action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, investigative or informal) against the Company that challenges, or may have the effect of preventing, delaying, making
illegal or otherwise interfering with, any of the transactions hereunder. 

  
 4 

 (e) Certain Transactions. The Company is not currently in discussions regarding, or
receipt of any pending or current proposal with respect to, (1) a merger, consolidation, business combination, recapitalization, liquidation, dissolution or similar transaction of the Company, (2) any sale of a majority of the capital
stock of the Company, or (3) any other similar transaction or series of transactions that would result in the Company ceasing to be registered. 
 4. Release. 
 (a) Seller Release. In further consideration of the
agreements provided for pursuant to this Agreement, and as a material inducement therefor, effective as of the Closing Date, the Sellers and their respective affiliates, subsidiaries, officers, directors, partners, members, equity holders,
employees, predecessors, successors, assigns, heirs, representatives, agents, insurers, and attorneys (collectively, the “Seller Parties”), do hereby release, remise, and forever discharge the Company and its affiliates,
subsidiaries, officers, directors, equity holders, employees, predecessors, successors, assigns, heirs, representatives, agents, insurers, and attorneys (collectively, the “Company Parties”) from any and all causes of action, sums
of money, damages, attorneys’ fees, costs, losses, liabilities, accountings, claims, costs, awards, judgments, and demands whatsoever (whether known or unknown, disclosed or undisclosed, asserted or unasserted, direct or indirect, absolute or
contingent, accrued or unaccrued, and whether due or to become due, in law or equity, contract or tort, or otherwise), arising from the beginning of time up to and including the Closing Date, which the Seller Parties ever had, now have, or hereafter
can, shall, or may have against the Company Parties relating to the Shares and the Sellers’ ownership of such Shares, including without limitation, the matters that are the subject of the Arbitration. 

(b) Company Release. In further consideration of the agreements provided for pursuant to this Agreement, and as a material
inducement therefor, effective as of the Closing Date, the Company Parties do hereby release, remise, and forever discharge the Seller Parties from any and all causes of action, sums of money, damages, attorneys’ fees, costs, losses,
liabilities, accountings, claims, costs, awards, judgments, and demands whatsoever (whether known or unknown, disclosed or undisclosed, asserted or unasserted, direct or indirect, absolute or contingent, accrued or unaccrued, and whether due or to
become due, in law or equity, contract or tort, or otherwise), arising from the beginning of time up to and including the Closing Date, which the Company Parties ever had, now have, or hereafter can, shall, or may have against the Seller Parties
relating to the Shares and the Sellers’ ownership of such Shares, including without limitation, the matters that are the subject of the Arbitration. 
 (c) Exclusions. It is expressly understood and agreed that the releases in Sections 4(a) and 4(b) above, constitute general releases and shall be interpreted liberally to
effectuate the maximum protection to the released parties allowed by law; provided, however, that nothing contained herein shall be deemed to release any of the Company Parties or Seller Parties, as applicable, from claims arising
from, in connection with, or related to (a) any breach of the terms and conditions of this Agreement, (b) any claims arising under the Notes, or (c) any causes of action, sums of money, damages, attorneys’ fees, costs, losses,
liabilities, accountings, claims, or demands whatsoever (in law or equity, contract or tort, or otherwise), arising after the Closing Date. 

  
 5 

 (d) No Admission of Wrongdoing. Each Party agrees that no term of this Agreement, or
any aspect of its negotiation or performance, including, without limitation, any purchase or sale referenced herein, shall be deemed an admission of liability or wrongdoing by any Party, such liability or wrongdoing being expressly denied.

 5. Termination. 

(a) Arbitration. On or prior to December 27, 2011, the Parties jointly shall submit a letter to the Honorable Leo E. Strine,
Jr. of the Court of Chancery of Delaware terminating the arbitration captioned TCV III, G.P. et al v. Mattersight Corporation, Arbitration No. 002-CS. 
 (b) Dispute Resolution Agreement. On the Closing Date, the Dispute Resolution Agreement dated April 26, 2011 between the Company and the Sellers shall terminate in accordance with
Section 14 of the Dispute Resolution Agreement. 
 6. Miscellaneous 

(a) Fees and Expenses. Whether or not the transactions contemplated by this Agreement shall be consummated, each of the parties
hereto shall pay the fees and expenses of its own counsel, accountants, and other experts and all other expenses incurred by it in connection with the negotiation, preparation, execution, and delivery of this Agreement and the consummation of the
transactions contemplated hereby and all other matters incident thereto; provided, however, that in any action to enforce or interpret the terms of this Agreement, the prevailing party (or parties) shall be entitled to an award of reasonable
attorneys’ fees and costs. 
 (b) Modification and Waiver. No amendment or modification of the terms or provisions
of this Agreement shall be binding unless the same shall be in writing and duly executed by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof. No
delay on the part of any party in exercising any right, power, or privilege hereunder shall operate as a waiver thereof. 
 (c)
Severability. In case any provision in this Agreement shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

(d) No Implied Rights. Nothing herein express or implied, is intended to or shall be construed to confer upon or give to any
person, firm, corporation, or legal entity, other than the parties hereto and their affiliates, any interests, rights, remedies, or other benefits with respect to or in connection with any agreement or provision contained herein or contemplated
hereby. 
 (e) No Presumption Against Drafter. Each of the parties hereto has jointly participated in the negotiation and
drafting of this Agreement. In the event of an ambiguity or a question of intent arises, this Agreement shall be construed as if drafted jointly by each of the parties hereto and no presumptions or burdens of proof shall arise favoring any party by
virtue of authorship of any of the provisions of this Agreement. 

  
 6 

 (f) Additional Documents. The Sellers and the Company agree to take any such actions
and execute any additional documentation necessary or desirable to carry out the purposes of this Agreement. 
 (g)
Notices. All notices, requests, demands and other communications regarding this Agreement shall be in writing and delivered in person, sent by facsimile, sent by electronic mail or sent by Registered or Certified U.S. Mail, Postage Prepaid,
Return Receipt Requested, and properly addressed as follows: 
 To the Company: 

Mattersight Corporation 
 200 South Wacker Drive 
 Suite 820 

Chicago, IL 60606 
 Fax: (775) 252-9987 
 Attention: Kelly D. Conway 

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

Winston & Strawn LLP 
 35 West Wacker Drive 
 Chicago, IL 60601 

Fax: (312) 558-5700 
 Attention: Steven J. Gavin, Esq. 
 To Sellers: 

Technology Crossover Ventures 
 528 Ramona Street 
 Palo Alto, California 94301 

Fax: (650) 614-8222 
 Attention: Carla S. Newell 
 With a copy (which shall not
constitute notice) to: 
 Richards, Layton & Finger, P.A. 

920 N. King Street 
 Wilmington, Delaware 19801 
 Fax: (302) 498-7772 

Attention: Gregory V. Varallo 
 Any notice so addressed shall be deemed to be given: if delivered by hand, on the date of such delivery; if sent by facsimile, on the date of proof of transmission; if sent by electronic mail, on the date
of proof of receipt; if mailed by overnight courier, on the first business day following the date of such mailing; and if mailed by registered or certified mail, on the third business day after the date of such mailing. 

  
 7 

 (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware. 
 (i) Waiver of Jury Trial. THE COMPANY AND THE SELLERS HEREBY IRREVOCABLY WAIVE ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 (j) Consent to Jurisdiction,
Etc. Each of the Company and the Sellers agree that any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement shall be brought only to the exclusive jurisdiction
of the Courts of Chancery of the State of Delaware or, if under applicable law exclusive jurisdiction over the matter is vested in the federal courts, the federal courts located in the State of Delaware, and each of the Company and the Sellers
hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action, or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have
to the laying of the venue of any such suit, action, or proceeding in any such court or that any such suit, action, or proceeding which is brought in any such court has been brought in an inconvenient forum. The Company and the Sellers agree that,
after a legal dispute is before a court as specified in this Section 6(i), and during the pendency of such dispute before such court, all actions, suits, or proceedings with respect to such dispute or any other dispute, including without
limitation, any counterclaim, cross-claim, or interpleader, shall be subject to the exclusive jurisdiction of such court. Process in any such suit, action, or proceeding may be served on either the Company or the Sellers anywhere in the world,
whether within or without the jurisdiction of any such court. Each of the Company and the Sellers hereto agrees that a final judgment in any action, suit, or proceeding described in this Section 6(i) after the expiration of any period permitted
for appeal and subject to any stay during appeal shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable laws. 

(k) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but
all of which shall constitute one and the same instrument. 
 (l) Entire Agreement. This Agreement represents the entire
agreement and understandings between the parties concerning the purchase and sale of the Shares pursuant hereto and supersedes and replaces any and all prior agreements and understandings. 

(m) Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the
parties hereto. The parties acknowledge that they: (i) have read this Agreement; (ii) have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice; (iii) understand the
terms and consequences of this Agreement and of the release it contains; and (iv) are fully aware of the legal and binding effect of this Agreement. 

  
 8 

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

			
	MATTERSIGHT CORPORATION
		
	By:	 	/s/ Kelly D. Conway
	Name: Kelly D. Conway
	Title: President and Chief Executive Officer

  

			
	 TCV III (GP)

By: Technology Crossover Management III,
 LLC,
its general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

  

			
	 TCV III (Q), L.P.
 By: Technology Crossover Management III,
 LLC, its general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

  

			
	 TCV III, L.P.

By: Technology Crossover Management III,
 LLC,
its general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

  

			
	 TCV III Strategic Partners, L.P.
 By: Technology Crossover Management III,
 LLC, its general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

 
			
	 TCV IV, L.P.

By: Technology Crossover Management IV,
 LLC, its
general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

  

			
	 TCV IV Strategic Partners, L.P.
 By: Technology Crossover Management IV,
 LLC, its general partner

		
	By:	 	/s/ Frederic D. Fenton
	Name: Frederic D. Fenton
	Title: Attorney-in-Fact

 Schedule I 

 

													
	Seller	  	Number of Shares of
Series B Stock
held
by Seller	 	  	Pro Rata Share of
Aggregate 
Per Share
Cash Amount1	 	  	Pro Rata Share of
Aggregate
Per
Share Deferred
Amount2	 
	 TCV III (GP)
	  	 	2,285	  	  	$	12,043.24	  	  	$	7,997.50	  
	 TCV III (Q), L.P.
	  	 	288,422	  	  	$	1,520,147.38	  	  	$	1,009,477.00	  
	 TCV III, L.P.
	  	 	10,852	  	  	$	57,196.19	  	  	$	37,982.00	  
	 TCV III Strategic Partners, L.P.
	  	 	13,057	  	  	$	68,817.79	  	  	$	45,699.50	  
	 TCV IV, L.P.
	  	 	1,501,673	  	  	$	7,914,667.66	  	  	$	5,255,855.50	  
	 TCV IV Strategic Partners, L.P.
	  	 	56,516	  	  	$	297,871.35	  	  	$	197,806.00	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 TOTAL
	  	 	1,872,805	  	  	$	9,870,743.61	  	  	$	6,554,817.50	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	1 	 Represents $5.10 per share plus an amount equal to the accrued but unpaid dividends on the Series B Stock through December 19, 2011.

	2 	 Represents $3.50 per share

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