Document:

Multicurrency Credit Agreement

 EXHIBIT 4.1 

 
  

 
 MULTICURRENCY
CREDIT AGREEMENT 
 DATED AS OF 

JULY 15, 2010 

AMONG 

ARTHUR J. GALLAGHER & CO., AS A
BORROWER, 
 AND 

THE OTHER BORROWERS PARTY HERETO, 

THE LENDERS PARTY HERETO, 

BANK OF MONTREAL, 

AS ADMINISTRATIVE AGENT, 

 
  

BANK OF AMERICA, N.A. 

CITIBANK N.A. AND 

BARCLAYS BANK PLC, 

AS CO-SYNDICATION AGENTS, 

JPMORGAN CHASE BANK N.A. AND 

U.S. BANK NATIONAL ASSOCIATION 

AS DOCUMENTATION AGENT 

AND 

BMO CAPITAL MARKETS, 

BANK OF AMERICA SECURITIES LLC 

CITIBANK N.A. AND 

BARCLAYS BANK PLC, 

AS JOINT LEAD ARRANGERS AND 

CO-BOOK RUNNERS 

 
  

 

 TABLE OF CONTENTS 

(This Table of Contents is not part of the Agreement) 
  

					
	 	  	 	  	PAGE
	 SECTION 1.
	  	 THE CREDITS
	  	1
			
	 Section 1.1.
	  	 The Revolving Credit Commitments
	  	1
	 Section 1.2.
	  	 Letters of Credit
	  	1
	 Section 1.3.
	  	 Applicable Interest Rates
	  	6
	 Section 1.4.
	  	 Minimum Borrowing Amounts for Revolving Loans
	  	6
	 Section 1.5.
	  	 Manner of Borrowing, and Designating Interest Rates Applicable to, Revolving Loans
	  	7
	 Section 1.6.
	  	 Defaulting Lenders
	  	9
			
	 SECTION 2.
	  	 THE SWING LINE
	  	10
			
	 Section 2.1.
	  	 Swing Loans
	  	10
	 Section 2.2.
	  	 Interest on Swing Loans
	  	10
	 Section 2.3.
	  	 Requests for Swing Loans
	  	11
	 Section 2.4.
	  	 Refunding Loans
	  	11
	 Section 2.5.
	  	 Participations
	  	11
			
	 SECTION 3.
	  	GENERAL PROVISIONS APPLICABLE TO ALL LOANS; REVOLVING
CREDIT COMMITMENT TERMINATIONS AND INCREASES	  	12
			
	 Section 3.1.
	  	 Interest Periods
	  	12
	 Section 3.2.
	  	 Default Rate
	  	13
	 Section 3.3.
	  	 Evidence of Indebtedness
	  	14
	 Section 3.4.
	  	 Maturity of Loans
	  	14
	 Section 3.5.
	  	 Prepayments
	  	15
	 Section 3.6.
	  	 Funding Indemnity for Fixed Rate Loans
	  	15
	 Section 3.7.
	  	 Commitment Terminations
	  	16
	 Section 3.8.
	  	 Increase in Commitments
	  	16
	 Section 3.9.
	  	 Appointment of Company as Agent for Borrowers
	  	17
			
	SECTION 4.	  	FEES; PLACE AND APPLICATION OF PAYMENTS	  	17
			
	 Section 4.1.
	  	 Fees
	  	17
	 Section 4.2.
	  	 Place and Application of Payments
	  	18
			
	SECTION 5.	  	JOINT AND SEVERAL OBLIGORS AND FURTHER ASSURANCES	  	19
			
	 Section 5.1
	  	 Joint and Several Obligors
	  	19
	 Section 5.2
	  	 Guaranties
	  	19
	 Section 5.3.
	  	 Further Assurances
	  	20
	 Section 5.4.
	  	 Release of Borrower or Guarantor
	  	20

  

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	SECTION 6.	  	DEFINITIONS; INTERPRETATION	  	20
			
	 Section 6.1.
	  	Definitions	  	20
	 Section 6.2.
	  	Interpretation	  	33
	 Section 6.3.
	  	Change in Accounting Principles	  	34
			
	SECTION 7.	  	REPRESENTATIONS AND WARRANTIES	  	34
			
	 Section 7.1.
	  	Organization and Qualification	  	34
	 Section 7.2.
	  	Subsidiaries	  	34
	 Section 7.3.
	  	Corporate Authority and Validity of Obligations	  	35
	 Section 7.4.
	  	Use of Proceeds; Margin Stock	  	35
	 Section 7.5.
	  	Financial Reports	  	35
	 Section 7.6.
	  	No Material Adverse Change	  	36
	 Section 7.7.
	  	Full Disclosure	  	36
	 Section 7.8.
	  	Good Title	  	36
	 Section 7.9.
	  	Litigation and Other Controversies	  	36
	 Section 7.10.
	  	Taxes	  	36
	 Section 7.11.
	  	Approvals	  	37
	 Section 7.12.
	  	Affiliate Transactions	  	37
	 Section 7.13.
	  	Investment Company	  	37
	 Section 7.14.
	  	ERISA	  	37
	 Section 7.15.
	  	Compliance with Laws	  	37
	 Section 7.16.
	  	Other Agreements	  	38
	 Section 7.17.
	  	Labor Controversies	  	38
	 Section 7.18.
	  	Insolvency	  	38
	 Section 7.19.
	  	No Default	  	38
	 Section 7.20.
	  	OFAC	  	38
			
	SECTION 8.	  	CONDITIONS PRECEDENT	  	39
			
	 Section 8.1.
	  	Initial Credit Event	  	39
	 Section 8.2.
	  	All Credit Events	  	40
			
	SECTION 9.	  	COVENANTS	  	41
			
	 Section 9.1.
	  	Maintenance of Business	  	41
	 Section 9.2.
	  	Taxes and Assessments	  	41
	 Section 9.3.
	  	Insurance	  	41
	 Section 9.4.
	  	Financial Reports	  	41
	 Section 9.5.
	  	Inspection	  	43
	 Section 9.6.
	  	Net Worth	  	43
	 Section 9.7.
	  	Cash Flow Leverage Ratio	  	43
	 Section 9.8.
	  	Interest Coverage Ratio	  	43
	 Section 9.9.
	  	Liens	  	44
	 Section 9.10.
	  	Acquisitions	  	45
	 Section 9.11.
	  	Mergers, Consolidations and Sales	  	45
	 Section 9.12.
	  	ERISA	  	46

  

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	 Section 9.13.
	  	 Compliance with Laws
	  	46
	 Section 9.14.
	  	 Burdensome Contracts with Affiliates
	  	46
	 Section 9.15.
	  	 No Changes in Fiscal Year
	  	46
	 Section 9.16.
	  	 Change in the Nature of Business
	  	46
	 Section 9.17.
	  	 Assets of Borrowers
	  	47
	 Section 9.18.
	  	 Compliance with OFAC Sanctions Programs
	  	47
			
	SECTION 10.	  	EVENTS OF DEFAULT AND REMEDIES	  	47
			
	 Section 10.1.
	  	 Events of Default
	  	47
	 Section 10.2.
	  	 Non-Bankruptcy Defaults
	  	49
	 Section 10.3.
	  	 Bankruptcy Defaults
	  	50
	 Section 10.4.
	  	 Collateral for Undrawn Letters of Credit
	  	50
	 Section 10.5.
	  	 Notice of Default
	  	51
	 Section 10.6.
	  	 Expenses
	  	51
			
	SECTION 11.	  	CHANGE IN CIRCUMSTANCES	  	51
			
	 Section 11.1.
	  	 Change of Law
	  	51
	 Section 11.2.
	  	 Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, Adjusted LIBOR
	  	51
	 Section 11.3.
	  	 Increased Cost and Reduced Return
	  	52
	 Section 11.4.
	  	 Lending Offices
	  	54
	 Section 11.5.
	  	 Discretion of Lender as to Manner of Funding
	  	54
	 Section 11.6.
	  	 Replacement of Lenders
	  	54
			
	SECTION 12.	  	THE ADMINISTRATIVE AGENT	  	54
			
	 Section 12.1.
	  	 Appointment and Authorization of Administrative Agent
	  	54
	 Section 12.2.
	  	 Administrative Agent and its Affiliates
	  	55
	 Section 12.3.
	  	 Action by Administrative Agent
	  	55
	 Section 12.4.
	  	 Consultation with Experts
	  	55
	 Section 12.5.
	  	 Liability of Administrative Agent; Credit Decision
	  	55
	 Section 12.6.
	  	 Indemnity
	  	56
	 Section 12.7.
	  	 Resignation of Administrative Agent and Successor Administrative Agent
	  	57
	 Section 12.8.
	  	 L/C Issuer and Swing Line Lender
	  	57
	 Section 12.9.
	  	 Designation of Additional Agents
	  	57
			
	SECTION 13.A.	  	JOINT AND SEVERAL OBLIGORS	  	58
			
	 Section 13.1.A.
	  	 Joint and Several Obligors
	  	58
	 Section 13.2.A.
	  	 Unconditional
	  	58
	 Section 13.3.A.
	  	 Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances
	  	59
	 Section 13.4.A.
	  	 Subrogation
	  	59
	 Section 13.5.A.
	  	 Waivers
	  	59
	 Section 13.6.A.
	  	 Limit on Recovery
	  	59

  

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	 Section 13.7.A.
	  	 Stay of Acceleration
	  	60
	 Section 13.8.A.
	  	 Benefit to each Borrower
	  	60
	 Section 13.9.A.
	  	 Borrower Covenants
	  	60
			
	SECTION 13.B.	  	THE GUARANTIES	  	60
			
	 Section 13.1.B.
	  	 The Guaranties
	  	60
	 Section 13.2.B
	  	 Guarantee Unconditional
	  	60
	 Section 13.3.B
	  	 Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances
	  	61
	 Section 13.4.B
	  	 Subrogation
	  	62
	 Section 13.5.B
	  	 Waivers
	  	62
	 Section 13.6.B
	  	 Limit on Recovery
	  	62
	 Section 13.7.B
	  	 Stay of Acceleration
	  	62
	 Section 13.8.B
	  	 Benefit to Guarantors
	  	62
	 Section 13.9.B
	  	 Guarantor Covenants
	  	62
			
	SECTION 14.	  	MISCELLANEOUS	  	62
			
	 Section 14.1.
	  	 Withholding Taxes
	  	62
	 Section 14.2.
	  	 No Waiver of Rights
	  	64
	 Section 14.3.
	  	 Non-Business Day
	  	64
	 Section 14.4.
	  	 Documentary Taxes
	  	65
	 Section 14.5.
	  	 Survival of Representations
	  	65
	 Section 14.6.
	  	 Survival of Indemnities
	  	65
	 Section 14.7.
	  	 Sharing of Set-Off
	  	65
	 Section 14.8.
	  	 Notices
	  	66
	 Section 14.9.
	  	 Counterparts
	  	66
	 Section 14.10.
	  	 Successors and Assigns
	  	66
	 Section 14.11.
	  	 Participants
	  	67
	 Section 14.12.
	  	 Assignments
	  	67
	 Section 14.13.
	  	 Amendments
	  	70
	 Section 14.14.
	  	 Headings
	  	70
	 Section 14.15.
	  	 Legal Fees, Other Costs and Indemnification
	  	70
	 Section 14.16.
	  	 Set Off
	  	71
	 Section 14.17.
	  	 Entire Agreement
	  	71
	 Section 14.18.
	  	 Governing Law
	  	71
	 Section 14.19.
	  	 Currency
	  	71
	 Section 14.20.
	  	 Submission to Jurisdiction; Waiver of Jury Trial
	  	72
	 Section 14.21.
	  	 USA Patriot Act
	  	72
	 Section 14.22.
	  	 Confidentiality
	  	72
	 Section 14.23.
	  	 Severability of Provisions
	  	73
	 Section 14.24.
	  	 Excess Interest
	  	73
	 Section 14.25.
	  	 Construction
	  	73
	 Section 14.26.
	  	 Lender’s and L/C Issuer’s Obligations Several
	  	74

  

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 Exhibits 
  

					
	A	  	-	  	Form of Notice of Payment Request
	B	  	-	  	Notice of Borrowing
	C	  	-	  	Notice of Continuation/Conversion
	D	  	-	  	Form of Revolving Credit Note
	E	  	-	  	Form of Swing Line Note
	F	  	-	  	Form of Commitment Amount Increase Request
	G	  	-	  	Form of Compliance Certificate
	H	  	-	  	Assignment Agreement
	I	  	-	  	Form of Additional Obligor Supplement
	J	  	-	  	Form of Additional Guarantor Supplement

  

			
	SCHEDULE 1	  	Revolving Credit Commitments
	SCHEDULE 1.2(a)	  	Existing L/Cs
	SCHEDULE 7.2	  	Subsidiaries

  

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 MULTICURRENCY CREDIT AGREEMENT

 THIS MULTICURRENCY CREDIT AGREEMENT is entered into as of
July 15, 2010, by and among Arthur J. Gallagher & Co., a Delaware corporation (the “Company”), the Subsidiaries from time to time party to this Agreement as joint and several obligors (such Subsidiaries together with
the Company individually, a “Borrower” and collectively, the “Borrowers”), the several financial institutions from time to time party to this Agreement, as Lenders, and Bank of Montreal, as Administrative Agent as
provided herein. All capitalized terms used herein without definition shall have the same meanings herein as such terms are defined in Section 6.1 hereof. 

PRELIMINARY STATEMENT 

The Borrowers have requested, and the Lenders have agreed to extend, certain credit facilities on the terms and conditions of this
Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

SECTION 1. THE CREDITS. 

Section 1.1. The Revolving Credit Commitments. Subject to the terms and conditions hereof, each Lender, by its acceptance
hereof, severally agrees to make a loan or loans (individually a “Revolving Loan” and collectively for all the Lenders “Revolving Loans”) in U.S. Dollars and Alternative Currencies to the Borrowers from time to time
on a revolving basis in an aggregate outstanding Original Dollar Amount up to the amount of such Lender’s Revolving Credit Commitment, subject to any reductions thereof pursuant to the terms hereof on or after the Effective Date and before the
Termination Date. The sum of the (i) aggregate Original Dollar Amount of Revolving Loans, (ii) the aggregate Original Dollar Amount of Swing Loans, and (iii) the aggregate U.S. Dollar Equivalent of all L/C Obligations at any time
outstanding shall not exceed the Revolving Credit Commitments in effect at such time. Each Borrowing of Revolving Loans shall be made ratably from the Lenders in proportion to their respective Percentages. As provided in Section 1.5(a) hereof,
the Company on behalf of the Borrowers, may elect that each Borrowing of Revolving Loans denominated in U.S. Dollars be either Base Rate Loans or Eurocurrency Loans. All Loans denominated in an Alternative Currency shall be Eurocurrency Loans.
Revolving Loans may be repaid and the principal amount thereof reborrowed before the Termination Date, subject to all the terms and conditions hereof. 

Section 1.2. Letters of Credit. (a) General Terms. Subject to the terms and conditions hereof, as part of the
Revolving Credit, the L/C Issuer shall issue standby or commercial letters of credit (each a “Letter of Credit”) for the account of the Borrowers or for the account of the Borrowers and one or more of their Subsidiaries in
U.S. Dollars or an Alternative Currency in the U.S. Dollar Equivalent of an aggregate undrawn face amount up to the L/C Sublimit. 

 
Notwithstanding anything herein to the contrary, the Existing L/Cs (all of which are listed and described on Schedule 1.2(a) hereto) shall each constitute a “Letter of
Credit” herein for all purposes of the Agreement to the same extent, and with the same force and effect, as if such Existing L/Cs had been issued at the request of the Company on behalf of the Borrowers under the Revolving Credit. Each
Letter of Credit shall be issued by the L/C Issuer in the manner described above, but each Lender shall be obligated to reimburse the L/C Issuer for its Percentage of the amount of each drawing thereunder and, accordingly, each Letter of Credit
shall constitute usage of the Revolving Credit Commitment of each Lender pro rata in an amount equal to its Percentage of the L/C Obligations then outstanding. 

(b) Applications. At any time on or after the Effective Date and before the Termination Date, the L/C Issuer shall, at the request
of the Company on behalf of the Borrowers, issue one or more Letters of Credit in a form satisfactory to the L/C Issuer, with expiration dates no later than the earlier of (i) 12 months from the date of issuance or (ii) 365 days after the
Termination Date, in an aggregate face amount as set forth above, upon the receipt of an application duly executed by the Company on behalf of the Borrowers and, if such Letter of Credit is for the account of one of its Subsidiaries, such Subsidiary
for the relevant Letter of Credit in the form customarily prescribed by the L/C Issuer for the type of Letter of Credit, whether standby or commercial, requested (each an “Application”); provided, that with respect to any
Letter of Credit with an expiration date that is later than the Termination Date, the Borrowers shall deliver to the Administrative Agent no later than 20 days prior to the Termination Date cash collateral in the U.S. Dollar Equivalent of the
full amount then available for drawing under such Letter of Credit. Any such cash collateral required by this Section 1.2(b) shall be held by the Administrative Agent pursuant to the terms of Section 10.4 hereof. Notwithstanding anything
contained in any Application to the contrary (i) the Borrowers’ obligation to pay fees in connection with each Letter of Credit shall be as exclusively set forth in Section 4.1(b) hereof, (ii) except as provided above, at any
time when no Event of Default exists the L/C Issuer will not call for the funding by the Borrowers of any amount under a Letter of Credit before being presented with a drawing thereunder, and (iii) if the L/C Issuer is not timely reimbursed for
the amount of any drawing under a Letter of Credit on the date such drawing is paid, the Borrowers’ obligation to reimburse the L/C Issuer for the amount of such drawing shall bear interest (which the Borrowers hereby promise to pay) from and
after the date such drawing is paid until payment in full thereof at a rate per annum (x) if such Letter of Credit is denominated in U.S. Dollars, equal to the sum of the Applicable Margin for Base Rate Loans plus the Base Rate from time
to time in effect and (y) if such Letter of Credit is denominated in an Alternative Currency, equal to the sum of the Applicable Margin for Eurocurrency Loans plus the rate established pursuant to Section 3.2(c)(iii) hereof for
Eurocurrency Loans denominated in an Alternative Currency. The L/C Issuer will promptly notify the Lenders of each issuance by it of a Letter of Credit. If the L/C Issuer issues any Letters of Credit with expiration dates that are automatically
extended under the terms set forth in such Letter of Credit, then the L/C Issuer will give notice of non-renewal to the beneficiary of such Letter of Credit with a copy to the Company on behalf of the Borrowers before the time necessary to prevent
such automatic extension if before such required notice date (i) the expiration date of such Letter of Credit if so extended would be later than 365 days after the Termination Date, (ii) the Revolving Credit Commitments have been
terminated or (iii) an Event of Default exists and the Required Lenders have given the L/C Issuer instructions not to so permit the extension of the expiration date of such Letter of Credit. The

  

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L/C Issuer agrees to issue amendments to the Letters of Credit increasing the amount, or extending the expiration date, thereof at the request of the Company, on behalf of the Borrowers, subject
to the conditions of Section 8.2 and the other terms of this Section 1.2. Without limiting the generality of the foregoing, the L/C Issuer’s obligation to issue, amend or extend the expiration date of a Letter of Credit is subject to
the conditions of Section 8.2 and the other terms of this Section 1.2 and the L/C Issuer will not issue, amend or extend the expiration date of any Letter of Credit if any Lender notifies the L/C Issuer of any failure to satisfy or
otherwise comply with such conditions and terms and directs the L/C Issuer not to take such action. Notwithstanding anything contained herein to the contrary, the L/C Issuer shall be under no obligation to issue, extend or amend any Letter of Credit
if a default of any Lender’s obligations to fund under Section 1.2(e) exists or any Lender is at such time a Defaulting Lender hereunder, unless cash collateral has been delivered to the Administrative Agent in accordance with
Section 1.6 or the L/C Issuer has entered into arrangements with Borrowers or such Lender satisfactory to the L/C Issuer to eliminate the L/C Issuer’s risk with respect to such Lender. 

(c) The Reimbursement Obligations. Subject to Section 1.2(b) hereof, the obligation of the Borrowers to reimburse the L/C
Issuer for all drawings under a Letter of Credit (a “Reimbursement Obligation”) shall be governed by the Application related to such Letter of Credit, except that, if and as long as no Default or Event of Default exists and the
other conditions in Section 8.2 hereof are satisfied, any Reimbursement Obligation outstanding on account of a drawing under a Letter of Credit shall automatically convert into a Borrowing of Base Rate Loans in the U.S. Dollar Equivalent
of such Reimbursement Obligation on the date such drawing occurs and the L/C Issuer shall notify the Administrative Agent and each Lender thereof, and each Lender shall thereupon fund its Base Rate Loan in such Borrowing in accordance with
Sections 1.1 and 1.5 (except for any requirement that a Borrowing of Base Rate Loans be in a certain amount). If the conditions in Section 8.2 cannot be satisfied with respect to any drawing, then reimbursement of such drawing shall be
made in the U.S. Dollar Equivalent in immediately available funds at the Administrative Agent’s principal office in Chicago, Illinois or such other office as the Administrative Agent may designate in writing to the Company (who shall
thereafter cause to be distributed to the L/C Issuer such amount(s) in like funds) by no later than 1:00 p.m. (Chicago time) on the date when such drawing is paid or, if such drawing was paid after 11:30 a.m. (Chicago time), by the end of such day.
If the Borrowers do not make any such reimbursement payment on the date due and the Participating Lenders fund their participations therein in the manner set forth in Section 1.2(e) below, then all payments thereafter received by the
Administrative Agent in discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with Section 1.2(e) below. 

(d) Obligations Absolute. The Borrowers’ obligation to reimburse L/C Obligations as provided in subsection (c) of this
Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement and the relevant Application under any and all circumstances whatsoever and irrespective of (i) any lack of
validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by the L/C Issuer under a Letter of Credit against presentation of a draft or other document that does not strictly comply with the terms of such Letter of Credit,
or (iv) any 
  

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other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrowers’ obligations hereunder. None of the Administrative Agent, the Lenders, or the L/C Issuer shall have any liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes
beyond the control of the L/C Issuer; provided that the foregoing shall not be construed to excuse the L/C Issuer from liability to the Borrowers to the extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by the Borrowers that are caused by the L/C Issuer’s failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the L/C Issuer (as finally determined by a court of competent
jurisdiction), the L/C Issuer shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which
appear on their face to be in substantial compliance with the terms of a Letter of Credit, the L/C Issuer may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 

(e) The Participating Interests. Each Lender (other than the Lender then acting as L/C Issuer in issuing Letters of Credit), by
its acceptance hereof, severally agrees to purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell to each such Lender (a “Participating Lender”), an undivided percentage participating interest (a
“Participating Interest”), to the extent of its Percentage, in each Letter of Credit issued by, and each Reimbursement Obligation owed to, the L/C Issuer. Upon any failure by the Borrowers to pay any Reimbursement Obligation at the
time required on the date the related drawing is paid, as set forth in Section 1.2(c) above, or if the L/C Issuer is required at any time to return to a Borrower or to a trustee, receiver, liquidator, custodian or other Person any portion of
any payment of any Reimbursement Obligation, each Participating Lender shall, not later than the Business Day it receives a certificate in the form of Exhibit A hereto from the L/C Issuer to such effect, if such certificate is received before
1:00 p.m. (Chicago time), or not later than the following Business Day, if such certificate is received after such time, pay to the Administrative Agent for the account of the L/C Issuer an amount equal to its Percentage of such unpaid or recaptured
Reimbursement Obligation together with interest on such amount accrued from the date the related payment was made by the L/C Issuer to the date of such payment by such Participating Lender at a rate per annum equal to (i) from the date the
related payment was made by the L/C Issuer to the date two Business Days after payment by such Participating Lender is due hereunder, (x) if such Letter of Credit is denominated in U.S. Dollars, the Federal Funds Rate for each such day and
(y) if such Letter of Credit is denominated in an Alternative Currency, at the cost to the Administrative Agent of funding the amount it advanced to fund such Lender’s 

 

 -4- 

 
payment, as determined by the Administrative Agent and (ii) from the date two Business Days after the date such payment is due from such Participating Lender to the date such payment is made
by such Participating Lender, (x) if such Letter of Credit is denominated in U.S. Dollars, the Base Rate in effect for each such day and (y) if such Letter of Credit is denominated in an Alternative Currency, the rate established by
Section 3.2(c) hereof for Eurocurrency Loans denominated in such currency. Each such Participating Lender shall thereafter be entitled to receive its Percentage of each payment received in respect of the relevant Reimbursement Obligation and of
interest paid thereon, with the L/C Issuer retaining its Percentage thereof as a Lender hereunder. 
 The several obligations of
the Participating Lenders to the L/C Issuer under this Section 1.2 shall be absolute, irrevocable and unconditional under any and all circumstances whatsoever (except, without limiting the Borrowers’ obligations under each Application, to
the extent the Borrowers are relieved from their obligation to reimburse the L/C Issuer for a drawing under a Letter of Credit because of the L/C Issuer’s gross negligence or willful misconduct in determining that documents received under the
Letter of Credit comply with the terms thereof) and shall not be subject to any set-off, counterclaim or defense to payment which any Participating Lender may have or have had against any Borrower, the L/C Issuer, any other Lender or any other
Person whatsoever. 
 (f) Indemnification. The Participating Lenders shall, to the extent of their respective
Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the Borrowers) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from the L/C
Issuer’s gross negligence or willful misconduct) that the L/C Issuer may suffer or incur in connection with any Letter of Credit. The obligations of the Participating Lenders under this Section 1.2(f) and all other parts of this
Section 1.2 shall survive termination of this Agreement and of all other L/C Documents. 
 (g) Replacement of the
L/C Issuer. The L/C Issuer may be replaced at any time by written agreement among the Company, the Administrative Agent, the replaced L/C Issuer and the successor L/C Issuer. The Administrative Agent shall notify the Lenders
of any such replacement of the L/C Issuer. At the time any such replacement shall become effective, the Borrowers shall pay all unpaid fees accrued for the account of the replaced L/C Issuer. From and after the effective date of any such
replacement (i) the successor L/C Issuer shall have all the rights and obligations of the L/C Issuer under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term
“L/C Issuer “ shall be deemed to refer to such successor or to any previous L/C Issuer, or to such successor and all previous L/C Issuers, as the context shall require. After the replacement of an L/C Issuer hereunder,
the replaced L/C Issuer shall remain a party hereto and shall continue to have all the rights and obligations of an L/C Issuer under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit. 
 (h) Manner of Requesting a Letter of Credit. The Company, on behalf of
the Borrowers, shall provide at least five (5) Business Days’ advance written notice to the Administrative Agent of each request for the issuance of a Letter of Credit, such notice in each case to be accompanied by an Application for such
Letter of Credit properly completed and 
  

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executed by the Company, on behalf of the Borrowers, and, in the case of an extension or amendment or an increase in the amount of a Letter of Credit, a written request therefor, in a form
acceptable to the Administrative Agent and the L/C Issuer, in each case, together with the fees called for by this Agreement. The Administrative Agent shall promptly notify the L/C Issuer of the Administrative Agent’s receipt of each
such notice (and the L/C Issuer shall be entitled to assume that the conditions precedent to any such issuance, extension, amendment or increase have been satisfied unless notified to the contrary by the Administrative Agent or the Required
Lenders) and the L/C Issuer shall promptly notify the Administrative Agent and the Lenders of the issuance of the Letter of Credit so requested. 

Section 1.3. Applicable Interest Rates. (a) Base Rate Loans. Each Base Rate Loan made or maintained by a Lender
shall bear interest during each Interest Period it is outstanding (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced, continued
or created by conversion from a Eurocurrency Loan until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect, payable
on the last day of its Interest Period and at maturity (whether by acceleration or otherwise). 
 (b) Eurocurrency Loans.
Each Eurocurrency Loan made or maintained by a Lender shall bear interest during each Interest Period it is outstanding (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such
Loan is advanced, continued, or created by conversion from a Base Rate until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin for Eurocurrency Loans plus the Adjusted LIBOR applicable for
such Interest Period, payable on the last day of the Interest Period and at maturity (whether by acceleration or otherwise), and, if the applicable Interest Period is longer than three months, on each day occurring every three months after the
commencement of such Interest Period. There shall not be more than ten Borrowings of Eurocurrency Loans outstanding at any one time. 

(c) Rate Determinations. The Administrative Agent shall determine each interest rate applicable to the Loans and the other
Obligations, and a reasonable determination thereof by the Administrative Agent shall be conclusive and binding except in the case of manifest error or willful misconduct. The Original Dollar Amount of each Eurocurrency Loan denominated in an
Alternative Currency shall be determined or redetermined, as applicable, effective as of the first day of each Interest Period applicable to such Loan. 

Section 1.4. Minimum Borrowing Amounts for Revolving Loans. Each Borrowing of Base Rate Loans shall be in an amount not less
than $1,000,000 and in integral multiples of $100,000, provided that a Borrowing of Base Rate Loans applied to pay a Reimbursement Obligation pursuant to Section 1.2(c) hereof shall be in an amount equal to such Reimbursement Obligation.
Each Borrowing of Eurocurrency Loans shall be in an amount not less than an Original Dollar Amount of $3,000,000 and, if greater, in units of the relevant currency as would have an Original Dollar Amount most closely approximating $500,000 or an
integral multiple thereof. 
  

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 Section 1.5. Manner of Borrowing, and Designating Interest Rates Applicable to,
Revolving Loans. (a) Notice to the Administrative Agent. The Company, on behalf of the Borrowers, shall give notice to the Administrative Agent by no later than 11:00 a.m. (Chicago time) (i) at least four Business Days before
the date on which the Borrowers request the Lenders to advance a Borrowing of Eurocurrency Loans denominated in an Alternative Currency, (ii) at least three Business Days before the date on which the Borrowers request the Lenders to advance a
Borrowing of Eurocurrency Loans denominated in U.S. Dollars and (iii) at least one Business Day before the date on which the Borrowers request the Lenders to advance a Borrowing of Base Rate Loans. The Loans included in each Borrowing shall
bear interest initially at the type of rate specified in such notice of a new Borrowing. Thereafter, the Company, on behalf of the Borrowers, may from time to time elect to change or continue the type of interest rate borne by each Borrowing or,
subject to the minimum amount requirement for each outstanding Borrowing set forth in Section 1.4 hereof, a portion thereof, as follows: (i) if such Borrowing is of Eurocurrency Loans, on the last day of the Interest Period applicable
thereto, the Company may continue all or part of such Borrowing as Eurocurrency Loans for an Interest Period or Interest Periods specified by the Company or, if such Eurocurrency Loan is denominated in U.S. Dollars, convert all or part of such
Borrowing into Base Rate Loans and (ii) if such Borrowing is of Base Rate Loans, on any Business Day, the Company may (subject to the notice requirements set forth herein) convert all or part of such Borrowing into Eurocurrency Loans
denominated in U.S. Dollars or denominated in an Alternative Currency, in each case, for an Interest Period or Interest Periods specified by the Company. The Company shall give all such notices requesting the advance, continuation, or conversion of
a Borrowing to the Administrative Agent by telephone, telecopy or other telecommunication device acceptable to the Administrative Agent (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing).
Notices of the continuation of a Borrowing of Eurocurrency Loans for an additional Interest Period or of the conversion of part or all of a Borrowing of Eurocurrency Loans denominated in U.S. Dollars into Base Rate Loans or of Base Rate Loans into
Eurocurrency Loans denominated in U.S. Dollars must be given by no later than 11:00 a.m. (Chicago time) at least three Business Days before the date of the requested continuation or conversion. Notices of the continuation of a Borrowing of
Eurocurrency Loans denominated in an Alternative Currency must be given no later than 12:00 noon (Chicago time) at least four Business Days before the requested continuation. All such notices concerning the advance, continuation, or conversion
of a Borrowing shall specify the date of the requested advance, continuation or conversion of a Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced, continued, or converted, the type of Loans to comprise
such new, continued or converted Borrowing and, if such Borrowing is to be comprised of Eurocurrency Loans, the currency and the Interest Period applicable thereto and shall be substantially in the form attached hereto as Exhibit B (Notice of
Borrowing) or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable to the Administrative Agent. Upon notice to the Company by the Administrative Agent or the Required Lenders (or, in the case of an
Event of Default under Section 10.1(k) or 10.1(l) hereof with respect to the Company, without notice), no Borrowing of Eurocurrency Loans shall be advanced, continued, or created by conversion if any Default or Event of Default then exists. The
Borrowers agree that the Administrative Agent may rely on any such telephonic or telecopy notice given by any person it in good faith believes is an Authorized Representative of the Company without the necessity of independent investigation, and in
the event any such notice by telephone conflicts with any written confirmation, such telephonic notice shall govern if the Administrative Agent has acted in reliance thereon. 

 

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 (b) Notice to the Lenders. The Administrative Agent shall give prompt telephonic,
telecopy or other telecommunication notice to each Lender of any notice from the Company received pursuant to Section 1.5(a) above. The Administrative Agent shall give notice to the Company and each Lender by like means of the interest rate
applicable to each Borrowing of Eurocurrency Loans and, if such Borrowing is denominated in an Alternative Currency, shall give notice by such means to the Company and each Lender of the Original Dollar Amount thereof. 

(c) Company’s Failure to Notify. Any outstanding Borrowing of Base Rate Loans shall, subject to Section 8.2 hereof,
automatically be continued for an additional Interest Period on the last day of its then current Interest Period unless the Company has notified the Administrative Agent within the period required by Section 1.5(a) that it intends to convert
such Borrowing into a Borrowing of Eurocurrency Loans or notifies the Administrative Agent within the period required by Section 3.5 that it intends to prepay such Borrowing. If the Company fails to give notice pursuant to Section 1.5(a)
above of the continuation or conversion of any outstanding principal amount of a Borrowing of Eurocurrency Loans denominated in U.S. Dollars before the last day of its then current Interest Period within the period required by Section 1.5(a)
and has not notified the Administrative Agent within the period required by Section 3.5 that it intends to prepay such Borrowing, such Borrowing shall automatically be converted into a Borrowing of Base Rate Loans, subject to Section 8.2
hereof. If the Company fails to give notice pursuant to Section 1.5(a) above of the continuation of any outstanding principal amount of a Borrowing of Eurocurrency Loans denominated in an Alternative Currency before the last day of its then
current Interest Period within the period required by Section 1.5(a) and has not notified the Administrative Agent within the period required by Section 3.5 that it intends to prepay such Borrowing, such Borrowing shall automatically be
continued as a Borrowing of Eurocurrency Loans in the same Alternative Currency with an Interest Period of one month, subject to Section 8.2 hereof, including the application of Section 1.5 and the restrictions contained in the definition
of Interest Period. 
 (d) Disbursement of Revolving Loans. Not later than 11:00 a.m. (Chicago time) on the date of any
requested advance of a new Borrowing of Eurocurrency Loans, and not later than 1:00 p.m. (Chicago time) on the date of any requested advance of a new Borrowing of Base Rate Loans, subject to Section 8 hereof, each Lender shall make
available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Administrative Agent in Chicago, Illinois, except that if such Borrowing is denominated in an Alternative Currency each Lender shall,
subject to Section 8 hereof, make available its Loan comprising part of such Borrowing at such office as the Administrative Agent has previously specified in a notice to each Lender, in such funds as are then customary for the settlement of
international transactions in such currency and no later than such local time as is necessary for such funds to be received and transferred to the Company for same day value on the date of the Borrowing. The Administrative Agent shall make the
proceeds of each new Borrowing denominated in U.S. Dollars available to the Company at the Administrative Agent’s principal office in Chicago, Illinois, by depositing such proceeds to the credit of the Company’s operating account

  

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maintained with the Administrative Agent or as the Company and the Administrative Agent may otherwise agree, and the Administrative Agent shall make the proceeds of each new Borrowing denominated
in an Alternative Currency available at such office as the Administrative Agent has previously agreed to with the Company, in each case in the type of funds received by the Administrative Agent from the Lenders. 

(e) Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent shall have been notified by a Lender before
the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Revolving Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent
may assume that such Lender has made such payment when due and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the Company the proceeds of the Loan to be made by such Lender and, if any
Lender has not in fact made such payment to the Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made available to the Company attributable to such Lender together with interest thereon in respect of
each day during the period commencing on the date such amount was made available to the Company and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to (i) from the date the
related advance was made by the Administrative Agent to the date two Business Days after payment by such Lender is due hereunder, at a rate per annum equal to the Federal Funds Rate or, in the case of a Loan denominated in an Alternative Currency,
the cost to the Administrative Agent of funding the amount it advanced to fund such Lender’s Loan, as reasonably determined by the Administrative Agent and (ii) from the date two Business Days after the date such payment is due from such
Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day or, in the case of a Loan denominated in an Alternative Currency, the rate established by Section 3.2(c) for Eurocurrency Loans denominated in
such currency. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the Borrowers will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest
thereon at a rate per annum equal to the interest rate applicable to the relevant Loan, but without such payment being considered a payment or prepayment of a Loan under Section 3.6 hereof, so that the Borrowers will have no liability under
such Section with respect to such payment; provided, that such repayment by the Borrowers shall not be deemed to release or otherwise limit any claims or rights that the Borrowers may have against any Lender for the failure to fund any Loans
hereunder. 
 Section 1.6. Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the
event that any Lender at any time is a Defaulting Lender, then (a) during any Defaulting Lender Period with respect to such Defaulting Lender, such Defaulting Lender shall be deemed not to be a “Lender” for purposes of voting
on any matters (including the granting of any consents or waivers) with respect to any of the Loan Documents and such Defaulting Lender’s Revolving Credit Commitment shall be excluded for purposes of determining “Required
Lenders” (provided that the foregoing shall not permit an increase in such Lender’s Revolving Credit Commitment or an extension of the maturity date of such Lender’s Revolving Loans or other Obligations without such Lender’s
consent); (b) to the extent permitted by applicable law, until such time as the Defaulting Lender Excess with respect to such 

 

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Defaulting Lender shall have been reduced to zero, any voluntary prepayment of the Revolving Loans shall, if the Administrative Agent so directs at the time of making such voluntary prepayment,
be applied to the Revolving Loans of other Lenders as if such Defaulting Lender had no Revolving Loans outstanding; (c) such Defaulting Lender’s Revolving Credit Commitment and outstanding Revolving Loans shall be excluded for purposes of
calculating any facility fee payable to Lenders pursuant to Section 4.1 in respect of any day during any Defaulting Lender Period with respect to such Defaulting Lender, and such Defaulting Lender shall not be entitled to receive any fee
pursuant to Section 4.1 with respect to such Defaulting Lender’s Revolving Credit Commitment in respect of any Defaulting Lender Period with respect to such Defaulting Lender (and any Letter of Credit fee otherwise payable to a Lender who
is a Defaulting Lender shall instead be paid to the L/C Issuer for its use and benefit); (d) the utilization of Revolving Credit Commitment as at any date of determination shall be calculated as if such Defaulting Lender had funded all
Revolving Loans of such Defaulting Lender; and (e) if so requested by the L/C Issuer at any time during the Defaulting Lender Period with respect to such Defaulting Lender, the Borrowers shall deliver to the Administrative Agent cash collateral
in an amount equal to such Defaulting Lender’s Percentage of L/C Obligations then outstanding (to be, held by the Administrative Agent as set forth in Section 10.4 hereof). No Revolving Credit Commitment of any Lender shall be increased or
otherwise affected, and, except as otherwise expressly provided in this Section 1.6, performance by the Borrowers of their obligations hereunder and the other Loan Documents shall not be excused or otherwise modified as a result of the
operation of this Section 1.6. The rights and remedies against a Defaulting Lender under this Section 1.6 are in addition to other rights and remedies which the Borrowers may have against such Defaulting Lender and which the Administrative
Agent or any Lender may have against such Defaulting Lender. 
 SECTION 2. THE SWING
LINE. 
 Section 2.1. Swing Loans. Subject to all of the terms and conditions hereof, as part of the
Revolving Credit, the Swing Line Lender may, in its discretion, make loans in U.S. Dollars to the Borrowers under the Swing Line (individually, a “Swing Loan” and collectively, the “Swing Loans”) which shall
not in the aggregate at any time outstanding exceed the Swing Line Sublimit. The Swing Line Loans may be availed of by the Borrowers from time to time and borrowings thereunder may be repaid and used again during the period beginning on the
Effective Date and ending on the Termination Date; provided that each Swing Loan must be repaid on the last day of the Interest Period applicable thereto. Each Swing Loan shall be in an amount not less than $500,000 and in integral multiples
of $100,000. 
 Section 2.2. Interest on Swing Loans. Each Swing Loan shall bear interest until maturity (whether by
acceleration or otherwise) at a rate per annum equal to (i) the sum of the Base Rate plus the Applicable Margin for Base Rate Loans from time to time in effect (computed on the basis of a year 365 or 366 days, as the case may be, for the
actual number of days elapsed) or (ii) the Quoted Rate (computed on the basis of a year of 360 days for the actual number of days elapsed). Interest on each Swing Loan shall be due and payable on the last day of each Interest Period applicable
thereto, and interest after maturity (whether by lapse of time, acceleration or otherwise) shall be due and payable upon demand. 
  

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 Section 2.3. Requests for Swing Loans. The Company, on behalf of the Borrowers,
shall give the Administrative Agent prior notice (which may be written or oral) no later than 3:00 p.m. (Chicago time) on the date upon which the Company requests that any Swing Loan be made, of the amount and date of such Swing Loan and the
Interest Period selected therefor. The Administrative Agent shall promptly advise the Swing Line Lender of any such notice received from the Company. Within 30 minutes after receiving such notice, the Swing Line Lender shall in its discretion
quote an interest rate to the Company at which the Swing Line Lender would be willing to make such Swing Loan available to the Borrowers for a given Interest Period (the rate so quoted for a given Interest Period being herein referred to as the
“Quoted Rate”). The Borrowers acknowledge and agree that the interest rate quote is given for immediate and irrevocable acceptance, and if the Company does not so immediately accept the Quoted Rate for the full amount requested by
the Borrowers for such Swing Loan, the Quoted Rate shall be deemed immediately withdrawn and such Swing Loan shall bear interest at the rate per annum determined by adding the Applicable Margin for Base Rate Loans to the Base Rate for the Interest
Period selected by the Company. Subject to all of the terms and conditions hereof, the proceeds of such Swing Loan shall be made available to the Company on the date so requested at the offices of the Swing Line Lender in Chicago, Illinois. Anything
contained in the foregoing to the contrary notwithstanding the undertaking of the Swing Line Lender to make Swing Loans shall be subject to all of the terms and conditions of this Agreement; provided that the Swing Line Lender shall be
entitled to assume that the conditions precedent to an advance of any Swing Loan have been satisfied unless notified to the contrary by the Administrative Agent or the Required Lenders. No Lender shall acquire a participation in a Swing Loan
pursuant to this Section 2 if an Event of Default shall have occurred and be continuing at the time such Swing Loan was made and either the Administrative Agent or the Required Lenders shall have notified the Swing Line Lender prior to the time
such Swing Loan was made that such an Event of Default shall have occurred and be continuing. 
 Section 2.4. Refunding
Loans. In its sole and absolute discretion, the Swing Line Lender may at any time, on behalf of the Borrowers (and the Borrowers hereby irrevocably authorize the Swing Line Lender to act on their behalf for such purpose) and with notice to the
Company, request each Lender to make a Revolving Loan in the form of a Base Rate Loan in an amount equal to such Lender’s Percentage of the amount of the Swing Loans outstanding on the date such notice is given. Unless an Event of Default
described in Section 10.1(k) or (l) exists with respect to the Company, regardless of the existence of any other Event of Default, each Lender shall make the proceeds of its requested Revolving Loan available to the Swing Line Lender, in
immediately available funds, at the Swing Line Lender’s principal office in Chicago, Illinois, before 12:00 Noon (Chicago time) on the Business Day following the day such notice is given. The proceeds of such Revolving Loans shall be
immediately applied to repay such outstanding Swing Loans. 
 Section 2.5. Participations. If any Lender refuses or
otherwise fails to make a Revolving Loan when requested by the Swing Line Lender pursuant to Section 2.4 above (because an Event of Default described in Section 10.1(k) or (l) exists with respect to the Borrower or otherwise), such
Lender shall, by the time and in the manner such Revolving Loan was to have been funded to the Swing Line Lender, purchase from the Swing Line Lender an undivided participating interest in the relevant outstanding Swing Loans in an amount equal to
its 
  

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Percentage of the aggregate principal amount of Swing Loans that were to have been repaid with such Revolving Loans, provided no purchase of a participation in a Swing Loan bearing
interest at the Quoted Rate need be made until after expiration of the Interest Period applicable thereto. Each Lender that so purchases a participation in a Swing Loan shall thereafter be entitled to receive its Percentage of each payment of
principal received on the relevant Swing Loan and of interest received thereon accruing from the date such Lender funded to the Swing Line Lender its participation in such Loan. The several obligations of the Lenders under this Section 2.5
shall be absolute, irrevocable and unconditional under any and all circumstances whatsoever and shall not be subject to any set-off, counterclaim or defense to payment which any Lender may have or have had against any Borrower, any other Lender or
any other Person whatsoever. Without limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default or by any reduction or termination of the Revolving Credit Commitment of any Lender, and each
payment made by a Lender under this Section 2.5 shall be made without any offset, abatement, withholding or reduction whatsoever. 

SECTION 3. GENERAL PROVISIONS APPLICABLE TO ALL
LOANS; REVOLVING CREDIT COMMITMENT TERMINATIONS AND INCREASES 

Section 3.1. Interest Periods. As provided in Section 1.5(a) hereof in the case of Revolving Loans and in
Section 2.3 in the case of Swing Loans, at the time of each request to advance, continue, or create by conversion a Borrowing of Loans (other than Base Rate Loans), the Company shall select an Interest Period applicable to such Loans from among
the available options. The term “Interest Period” means the period commencing on the date a Borrowing of Loans is advanced, continued, or created by conversion and ending: (a) in the case of Base Rate Loans, on the last day of
the calendar quarter in which such Borrowing is advanced, continued, or created by conversion (or on the last day of the following quarter if such Loan is advanced, continued or created by conversion on the last day of a calendar quarter),
(b) in the case of Eurocurrency Loans, one, two, three, or six months thereafter and (c) in the case of Swing Loans, on the date one to five days thereafter as mutually agreed by the Swing Line Lender and the Company; provided, however,
that: 
 (a) any Interest Period for a Borrowing of Revolving Loans consisting of Base Rate Loans that
otherwise would end after the Termination Date shall end on the Termination Date; 
 (b) for any Borrowing of
Revolving Loans consisting of Eurocurrency Loans or for any Swing Loan, the Company may not select an Interest Period that extends beyond the Termination Date; 

(c) whenever the last day of any Interest Period would otherwise be a day that is not a Business Day, the last day of such
Interest Period shall be extended to the next succeeding Business Day; provided that, if such extension would cause the last day of an Interest Period for a Borrowing of Eurocurrency Loans to occur in the following calendar month, the last
day of such Interest Period shall be the immediately preceding Business Day; and 
  

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 (d) for purposes of determining an Interest Period for a Borrowing of
Eurocurrency Loans, a month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month; provided, however, that if there is no numerically corresponding day in the month
in which such an Interest Period is to end or if such an Interest Period begins on the last Business Day of a calendar month, then such Interest Period shall end on the last Business Day of the calendar month in which such Interest Period is to end.

 Section 3.2. Default Rate. Notwithstanding anything to the contrary contained herein, while any Event of Default
exists or after acceleration, (x) the Borrowers shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans and Reimbursement Obligations at a rate per annum equal
to, and (y) with respect to any outstanding Letter of Credit, the Borrowers shall pay Letter of Credit fees at a rate per annum equal to: 

(a) for any Base Rate Loan or any Swing Loan bearing interest based on the Base Rate, the sum of two percent
(2.0%) plus the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect; 

(b) for any Swing Loan bearing interest at the Quoted Rate or any Eurocurrency Loan denominated in U.S. Dollars, the sum
of two percent (2.0%) plus the rate of interest in effect thereon at the time of such default until the end of the Interest Period applicable thereto and, thereafter, at a rate per annum equal to the sum of two percent
(2%) plus the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect; 

(c) for any Eurocurrency Loan denominated in an Alternative Currency, the sum of two percent (2.0%) plus the
rate of interest in effect thereon at the time of such default until the end of the Interest Period applicable thereto and, thereafter, at a rate per annum equal to the sum of (i) the Applicable Margin for Eurocurrency Loans plus
(ii) two percent (2.0%) plus (iii) the rate of interest per annum as determined in good faith by the Administrative Agent (rounded upwards, if necessary, to the next higher 1/100,000 of 1%) at which overnight or weekend
deposits (or, if such amount due remains unpaid more than three Business Days, then for such other period of time not longer than one month as the Administrative Agent may elect in good faith) of the relevant Alternative Currency for delivery in
immediately available and freely transferable funds would be offered by the Administrative Agent to major banks in the interbank market upon request of such major banks for the applicable period as determined above and in an amount comparable to the
unpaid principal amount of any such Eurocurrency Loan (or, if the Administrative Agent is not placing deposits in such currency in the interbank market, then the Administrative Agent’s cost of funds in such currency for such period); and

 (d) for any Reimbursement Obligation, the sum of two percent (2.0%) plus the amounts due under
Section 1.2 with respect to such Reimbursement Obligation; and 
  

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 (e) for any Letter of Credit, the sum of two percent (2.0%) plus
the letter of credit fee due under Section 4.1 with respect to such Letter of Credit; 
 provided, however, that in the absence of
acceleration, any adjustments pursuant to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with written notice to the Company (which notice may be revoked at
the direction of the Required Lenders notwithstanding any provision of Section 14.13 requiring the unanimous consent of the Lenders to reduce interest rates). While any Event of Default exists or after acceleration, interest shall be paid on
demand of the Administrative Agent at the request or with the consent of the Required Lenders. 
 Section 3.3. Evidence
of Indebtedness. (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrowers to such Lender resulting from each Loan made by such Lender from time to time,
including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
 (b) The
Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, the type thereof and the Interest Period with respect thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrowers and each Lender’s share thereof. 

(c) The entries maintained in the accounts maintained pursuant to paragraphs (a) and (b) above shall be prima facie
evidence of the existence and amounts of the Obligations therein recorded; provided, however, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrowers to repay the Obligations in accordance with their terms. The Administrative Agent and each Lender agree to promptly provide to the Company copies of such accounts upon the reasonable request of the Company. 

(d) Any Lender may request that its Loans be evidenced by a promissory note or notes in the forms of Exhibit D (in the case of its
Revolving Loans and referred to herein as a “Revolving Credit Note”), or Exhibit E (in the case of its Swing Loans and referred to herein as a “Swing Line Note”), as applicable (the Revolving Credit Notes, and
Swing Line Note being hereinafter referred to collectively as the “Notes” and individually as a “Note”). In such event, the Borrowers shall prepare, execute and deliver to such Lender a Note payable to such Lender
or its registered assigns. Thereafter, the Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 14.12) be represented by one or more Notes payable to the order of the
payee named therein or any assignee pursuant to Section 14.12, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in
subsections (a) and (b) above. 
 Section 3.4. Maturity of Loans. Each Revolving Loan shall mature and
become due and payable by the Borrowers on the Termination Date. Each Swing Loan shall mature and become due and payable by the Borrowers on the last day of the Interest Period applicable thereto or, if earlier, the Termination Date. 

 

 -14- 

 Section 3.5. Prepayments. (a) Optional. The Borrowers may prepay
without premium or penalty and in whole or in part (but, if in part, then: (i) if such Borrowing is of Base Rate Loans, in an amount not less than $1,000,000 and in integral multiples of $100,000 (except in the case of repayments of Base Rate
Loans made under Section 1.2(c) which may be repaid in the full amount of such Base Rate Loans), (ii) if such Borrowing is of Eurocurrency Loans denominated in U.S. Dollars, in an amount not less than $1,000,000 and in integral multiples
of $100,000, (iii) if such Borrowing is denominated in an Alternative Currency, an amount for which the U.S. Dollar Equivalent is not less than $1,000,000 and in integral multiples most closely approximating $100,000 and (iv) in an
amount such that the minimum amount required for a Borrowing pursuant to Section 1.4 hereof remains outstanding) any Borrowing of (x) Eurocurrency Loans denominated in U.S. Dollars upon three Business Days’ prior notice to the
Administrative Agent, (y) Eurocurrency Loans denominated in an Alternative Currency at any time upon four Business Days prior notice by the Company to the Administrative Agent, or (z) Base Rate Loans, at any time with notice delivered to
the Administrative Agent no later than 11:00 a.m. (Chicago time) on the date of prepayment, such prepayment to be made by the payment of the principal amount to be prepaid and accrued interest thereon to the date fixed for prepayment and, in the
case of Eurocurrency Loans, any compensation required by Section 3.6 hereof. Swing Loans bearing interest at the Quoted Rate may only be paid on the last day of the Interest Period then applicable to such Loans. The Administrative Agent will
promptly advise each Lender of any such prepayment notice it receives from the Company. Any amount of Loans paid or prepaid before the Termination Date may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed
again. 
 (b) Mandatory. If at any time the sum of the (i) aggregate U.S. Dollar Equivalent of Revolving Loans,
(ii) the aggregate Original Dollar Amount of Swing Loans, and (iii) the aggregate U.S. Dollar Equivalent of all L/C Obligations at any time outstanding shall exceed 100% of the Revolving Credit Commitments in effect at such time, the
Borrowers shall immediately and without notice or demand pay over to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on such Obligations an aggregate amount sufficient to reduce such outstanding Obligations
to an amount not to exceed 100% of the Revolving Credit Commitments then in effect, with each such prepayment first to be applied to the Revolving Loans and Swing Loans until paid in full with any remaining balance to be held by the Administrative
Agent in the Collateral Account as security for the Obligations owing with respect to the Letters of Credit. 

Section 3.6. Funding Indemnity for Fixed Rate Loans. If any Lender shall incur any loss, cost or expense (including, without
limitation, any loss (including loss of profit), cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or maintain any Fixed Rate Loan or the relending or reinvesting of
such deposits or amounts paid or prepaid to such Lender as a result of: 
 (a) any payment, prepayment or
conversion of a Fixed Rate Loan on a date prior to the last day of its Interest Period, 
  

 -15- 

 (b) any failure (because of a failure to meet the conditions of
Section 8 or otherwise) by the Borrowers to borrow or continue a Fixed Rate Loan, or to convert a Base Rate Loan into a Fixed Rate Loan, on the date specified in a notice given pursuant to Section 1.5(a) or 2.3 or established pursuant to
Section 1.5(c) hereof, or 
 (c) any acceleration of the maturity of a Fixed Rate Loan as a result of the
occurrence of any Event of Default hereunder, 
 then, upon the demand of such Lender, the Borrowers shall pay to such Lender such amount as
will reimburse such Lender for such loss, cost or expense. If any Lender makes such a claim for compensation, it shall provide to the Company, with a copy to the Administrative Agent, a certificate executed by an officer of such Lender setting forth
the amount of such loss, cost or expense in reasonable detail and such certificate shall be conclusive if reasonably determined. 

Section 3.7. Commitment Terminations. The Borrowers shall have the right at any time and from time to time, upon
five (5) Business Days’ prior written notice from the Company to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate the Revolving Credit Commitments without premium or penalty, in
whole or in part, any partial termination to be (i) in an amount not less than $5,000,000, and (ii) allocated ratably among the Lenders in proportion to their respective Percentages, provided that the Revolving Credit Commitments
may not be reduced to an amount less than the sum of the Original Dollar Amount of all Revolving Loans and Swing Loans and the U.S. Dollar Equivalent of all L/C Obligations then outstanding. Any termination of the Revolving Credit Commitments
below the L/C Sublimit or Swing Line Sublimit then in effect shall reduce the L/C Sublimit and Swing Line Sublimit, as applicable, to an amount equal to the reduced aggregate amount of the Revolving Credit Commitments. The Administrative
Agent shall give prompt notice to each Lender of any such termination of the Revolving Credit Commitments. Any termination of the Revolving Credit Commitments pursuant to this Section 3.7 may not be reinstated. 

Section 3.8. Increase in Commitments. The Borrowers may from time to time, on any Business Day after the Effective Date and
prior to the Termination Date so long as no Default or Event of Default exists, increase the aggregate amount of the Revolving Credit Commitments by the Company delivering a Commitment Amount Increase Request at least five (5) Business Days
prior to the desired effective date of such increase (the “Commitment Amount Increase”) identifying an additional Lender (or additional Revolving Credit Commitments for existing Lender(s)) and the amount of its Revolving Credit
Commitment (or additional amount of its Revolving Credit Commitment(s)); provided, however, that (i) the aggregate amount of the Revolving Credit Commitments shall not at any time exceed $600,000,000, and (ii) any increase of the
aggregate amount of the Revolving Credit Commitments shall be in an amount not less than $25,000,000. The effective date of any Commitment Amount Increase shall be agreed upon by the Company, on behalf of the Borrowers, and the Administrative Agent.
Upon the effectiveness thereof, the new Lender(s) (or, if applicable, existing Lender(s)) shall advance Revolving Loans, or the existing Lenders shall make such assignments (which assignments shall not be subject to the requirements set forth in
Section 14.12) of the outstanding Loans and L/C Obligations to the Lenders providing the Commitment Amount Increase so that, after giving effect to such assignments, each Lender (including the Lenders providing the Commitment

  

 -16- 

 
Amount Increase) will hold Loans and L/C Obligations equal to its Percentage of all outstanding Loans and L/C Obligations. It shall be a condition to such effectiveness that (i) either no
Eurocurrency Loans be outstanding on the date of such effectiveness or the Borrowers pay any applicable breakage cost under Section 3.6 incurred by any Lender resulting from the repayment of its Loans and (ii) the Borrowers shall not have
terminated any portion of the Revolving Credit Commitments pursuant to Section 3.7 hereof. The Borrowers agree to pay any reasonable expenses of the Administrative Agent relating to any Commitment Amount Increase. Notwithstanding anything
herein to the contrary, no Lender shall have any obligation to increase its Revolving Credit Commitment and no Lender’s Revolving Credit Commitment shall be increased without its consent thereto, and each Lender may at its option,
unconditionally and without cause, decline to increase its Revolving Credit Commitment. 
 Section 3.9. Appointment of
Company as Agent for Borrowers. Each Borrower irrevocably appoints the Company as its agent hereunder to make requests on such Borrower’s behalf for Borrowings, to select the interest rate to be applicable to such Borrowings, and to take
any other action contemplated by the Loan Documents with respect to credit extended hereunder to the Borrowers. The Administrative Agent and the Lenders shall be entitled to conclusively presume that any action by the Company under the Loan
Documents is taken on behalf of any one or more of the Borrowers whether or not the Company so indicates. 
 SECTION 4.
FEES; PLACE AND APPLICATION OF PAYMENTS. 

Section 4.1. Fees. (a) Facility Fee. For the period from the Effective Date to but not including the Termination
Date, the Borrowers shall pay to the Administrative Agent, for the ratable benefit of the Lenders in accordance with their Percentages, a facility fee accruing at the rate per annum equal to the Applicable Margin for Facility Fee on the average
daily amount of the Revolving Credit Commitments whether or not in use. Such facility fee shall be payable quarterly in arrears on the last day of each calendar quarter in each year (commencing September 30, 2010) and on the Termination Date,
unless the Revolving Credit Commitments are terminated in whole on an earlier date, in which event the fee for the period to but not including the date of such termination shall be paid in whole on the date of such termination. 

(b) Letter of Credit Fees. On the date of issuance or extension, or increase in the amount, of any Letter of
Credit pursuant to Section 1.2 hereof, the Borrowers shall pay to the L/C Issuer for its own account a fronting fee equal to
 1/4 of 1% (0.25%) of the face amount of (or of the
increase in the face amount of) such Letter of Credit. Quarterly in arrears, on the last day of each calendar quarter (commencing September 30, 2010) the Borrowers shall pay to the Administrative Agent, for the ratable benefit of the Lenders in
accordance with their Percentages, a letter of credit fee at a rate per annum equal to the Applicable Margin for Eurocurrency Loans in effect during each day of such quarter applied to the daily average face amount of Letters of Credit outstanding
during such quarter. In addition, the Borrowers shall pay to the L/C Issuer for its own account the L/C Issuer’s standard issuance, drawing, negotiation, amendment, and other administrative fees for each Letter of Credit (whether a Commercial
Letter of Credit or Standby Letter of Credit) as established by the L/C Issuer from time to time. All the standard fees set forth in the preceding sentence shall be retained by the L/C Issuer for its own account (such standard fees referred to in
the clauses (i) and (ii) of the preceding sentence may be established by the L/C Issuer from time to time). 
  

 -17- 

 (c) Closing Fees. On the Effective Date, the Borrowers shall pay to the
Administrative Agent, for the benefit of the Lenders, the upfront fees due to the Lenders as heretofore agreed. 
 (d)
Administrative Agent Fees. The Borrowers shall pay to the Administrative Agent the fees agreed to between the Administrative Agent and the Company pursuant to a separate written letter agreement dated as of May 28, 2010. 

(e) Fee Calculations. All fees payable under this Section 4.1 shall be computed on the basis of a year of 360 days for the
actual number of days elapsed. 
 Section 4.2. Place and Application of Payments. All payments of principal of and
interest on the Loans and the Reimbursement Obligations, and of all other Obligations payable by the Borrowers under this Agreement, shall be made to the Administrative Agent by no later than 1:00 p.m. (Chicago time) on the due date thereof at
the principal office of the Administrative Agent in Chicago, Illinois (or such other location in the State of Illinois as the Administrative Agent may designate to the Company) or, if such payment is on a Reimbursement Obligation, no later than
provided by Section 1.2(c) hereof or, if such payment is to be made in an Alternative Currency, no later than 12:00 noon local time at the place of payment to such office as the Administrative Agent has previously specified in a notice to the
Company for the benefit of the Lender or Lenders entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made (i) in U.S.
Dollars, in immediately available funds at the place of payment, or (ii) in the case of amounts payable hereunder in an Alternative Currency, in such Alternative Currency in such funds then customary for the settlement of international
transactions in such currency, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans and on Reimbursement
Obligations in which the Lenders have purchased Participating Interests ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms
of this Agreement. If the Administrative Agent causes amounts to be distributed to the Lenders in reliance upon the assumption that the Borrowers will make a scheduled payment and such scheduled payment is not so made, each Lender shall, on demand,
repay to the Administrative Agent the amount distributed to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was distributed to such Lender and ending on (but excluding) the date
such Lender repays such amount to the Administrative Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date two (2) Business Days after payment by such Lender is due hereunder, the Federal Funds Rate
for each such day or, in the case of a Loan denominated in an Alternative Currency, the cost to the Administrative Agent of funding the amount it advanced to fund such Lender’s Loan, as reasonably determined by the Administrative Agent and
(ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day or, in the case of a Loan denominated in an Alternative
Currency, the rate established by Section 3.2(c) for Eurocurrency Loans denominated in such currency. 
  

 -18- 

 Anything contained herein to the contrary notwithstanding, all payments and collections
received in respect of the Obligations by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Revolving Credit Commitments as a result of an Event of Default shall be
remitted to the Administrative Agent and distributed as follows: 
 (a) first, to the payment of any outstanding
costs and expenses incurred by the Administrative Agent, in protecting, preserving or enforcing rights under the Loan Documents; 

(b) second, to the payment of the Swing Loans, both for principal and accrued but unpaid interest; 

(c) third, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro
rata in accordance with the aggregate unpaid amounts owing to each holder thereof; 
 (d) fourth, to the
payment of principal on the Loans (other than Swing Loans), unpaid Reimbursement Obligations, together with amounts to be held by the Administrative Agent as collateral security for any outstanding L/C Obligations pursuant to Section 10.4
hereof (until the Administrative Agent is holding an amount of cash equal to the then outstanding amount of all such L/C Obligations), the aggregate amount paid to, or held as collateral security for, the Lenders and L/C Issuer to be
allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; 
 (e)
fifth, to the payment of all other unpaid Obligations to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and 

(f) finally, to the Company, on behalf of the Borrowers, or whoever else may be lawfully entitled thereto. 

SECTION 5. JOINT AND SEVERAL OBLIGORS AND
FURTHER ASSURANCES. 
 Section 5.1 Joint and Several Obligors. The payment and
performance of the Obligations shall at all times be a joint and several obligation of the Company and each other Borrower pursuant to Section 13.A hereof or pursuant to one or more Additional Obligor Supplements delivered to the Administrative
Agent, as the same may be amended, modified or supplemented from time to time. 
 Section 5.2 Guaranties. The
payment and performance of the Obligations shall at all times be guaranteed by each Subsidiary of the Borrower which is not itself a Borrower and is a guarantor under the Note Purchase Agreement (each, a “Guarantor”) pursuant to
Section 13.B hereof or pursuant to one or more Additional Guarantor Supplements delivered to the Administrative Agent, as the same may be amended, modified or supplemented from time to time (individually, a “Guaranty” and,
collectively, the “Guaranties”). 
  

 -19- 

 Section 5.3. Further Assurances. The Company agrees that it shall, and shall
cause each Domestic Subsidiary to, from time to time at the request of the Administrative Agent or the Required Lenders, execute and deliver such documents and do such acts and things as the Administrative Agent or the Required Lenders may
reasonably request in order to provide for the joint and several obligation or guaranties, as applicable, contemplated by this Section 5. In the event the Company or any Subsidiary forms or acquires any direct Material Wholly-Owned Domestic
Subsidiary after the date hereof or any Subsidiary becomes a direct Material Wholly-Owned Domestic Subsidiary after the date hereof or any Subsidiary becomes an obligor or guarantor under the Note Purchase Agreement, the Company shall cause such
direct Material Wholly-Owned Domestic Subsidiary or other Subsidiary to execute an Additional Obligor Supplement or Additional Guarantor Supplement, as applicable, within 50 days after the end of the fiscal quarter of the Company in which such
Subsidiary became a Material Wholly-Owned Domestic Subsidiary or within 3 days after the Subsidiary became an obligor or guarantor under the Note Purchase Agreement, as applicable, and the Company shall also deliver to the Administrative Agent, or
cause such direct Material Wholly-Owned Domestic Subsidiary or other Subsidiary, as applicable, to deliver to the Administrative Agent, at the Company’s cost and expense, such other instruments, documents, notes, certificates, and opinions
reasonably required by the Administrative Agent in connection therewith. 
 Section 5.4. Release of Borrower or
Guarantor. If any Borrower (other than the Company) ceases to be a direct Material Wholly-Owned Domestic Subsidiary as a result of a disposition, dissolution or other transaction not prohibited by the terms hereof, then such Borrower
shall automatically cease to be a Borrower hereunder and shall be released from any of its obligations as a Borrower hereunder. If any Guarantor (a) ceases to be a Subsidiary as a result of a disposition, dissolution or other transaction not
prohibited by the terms hereof, or (b) otherwise ceases to be a Guarantor under the Note Purchase Agreement, then such Guarantor shall automatically cease to be a Guarantor hereunder and shall be released from any of its obligations as a
Guarantor hereunder. The Administrative Agent shall execute and deliver to such departing Borrower or Guarantor or its designee, at the Company’s sole cost and expense, any document or instrument that such departing Borrower or Guarantor or the
Company shall reasonably request to evidence such release, and the Lenders hereby authorize the Administrative Agent to execute and deliver any such document or instrument. 

SECTION 6. DEFINITIONS; INTERPRETATION. 

Section 6.1. Definitions. The following terms when used herein have the following meanings: 

“Account” is defined in Section 10.4(b) hereof. 

“Additional Guarantor Supplement” means an agreement in the form attached hereto as Exhibit J or such other form
acceptable to the Administrative Agent. 
  

 -20- 

 “Additional Obligor Supplement” means an agreement in the form attached
hereto as Exhibit I or such other form acceptable to the Administrative Agent. 
 “Adjusted LIBOR” means a
rate per annum determined in accordance with the following formula: 
  

					
	Adjusted LIBOR =	 	 LIBOR
	  	
		 	1 - Eurocurrency Reserve Percentage	  	

 “Eurocurrency Reserve Percentage” means, for any Borrowing of
Eurocurrency Loans, the daily average for the applicable Interest Period of the maximum rate, expressed as a decimal, at which reserves (including, without limitation, any supplemental, marginal and emergency reserves) are imposed during such
Interest Period by the Board of Governors of the Federal Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or in respect of any other category of liabilities that
includes deposits by reference to which the interest rate on Eurocurrency Loans is determined or any category of extensions of credit or other assets that include loans by non-United States offices of any Lender to United States residents), subject
to any amendments of such reserve requirement by such Board or its successor, taking into account any transitional adjustments thereto. For purposes of this definition, the Eurocurrency Loans shall be deemed to be “eurocurrency
liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D. “LIBOR” means, for an Interest Period for a Borrowing of Eurocurrency Loans,
(a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the average rate of interest per annum (rounded upwards, if necessary, to the nearest
 1/100 of 1%) at which deposits in U.S. Dollars or
the relevant Alternative Currency, as appropriate, in immediately available funds are offered to the Administrative Agent at 11:00 a.m. (London, England time) two Business Days before the beginning of such Interest Period by major banks in the
interbank eurocurrency market for delivery on the first day of and for a period equal to such Interest Period in an amount equal or comparable to the principal amount of the Eurocurrency Loan scheduled to be made as part of such Borrowing.
“LIBOR Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars or the relevant Alternative
Currency, as appropriate, for a period equal to such Interest Period, which appears on the appropriate Reuters Page as of 11:00 a.m. (London, England time) on the day two Business Days before the commencement of such Interest Period.
“Reuters Page” means the display designated on the Reuters Service (or such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’
Association Interest Settlement Rates for deposits of U.S. Dollar (currently displayed on LIBOR01 Page) or of the relevant Alternative Currency. 

“Administrative Agent” means Bank of Montreal in its capacity as administrative agent hereunder for the Lenders and any
successor pursuant to Section 12.7 hereof. 
 “Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied by the Administrative Agent. 
  

 -21- 

 “Affiliate” means any Person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, another Person. A Person shall be deemed to control another Person for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the
direction of, the management and policies of the other Person, whether through the ownership of voting securities, common directors, trustees or officers, by contract or otherwise; provided that, in any event for purposes of this definition,
any Person that owns, directly or indirectly, 10% or more of the securities having the ordinary voting power for the election of directors or governing body of a corporation or 10% or more of the partnership or other ownership interests of any other
Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other Person. 

“Agreement” means this Credit Agreement, as the same may be amended, modified, restated or supplemented from time to
time pursuant to the terms hereof. 
 “Alternative Currency” means any of euros, pounds sterling, and Japanese
yen, and any other currency approved by the Administrative Agent, in each case for so long as such currency is readily available to all the Lenders and is freely transferable and freely convertible to U.S. Dollars and the Reuters Monitor Money Rates
Service (or any successor) reports a LIBOR for such currency for interest periods of one, two, three and six calendar months; provided that if any Lender provides written notice to the Company (with a copy to the Administrative Agent) that
any currency control or other exchange regulations are imposed in the country in which any such Alternative Currency is issued and that in the reasonable opinion of such Lender funding a Loan in such currency is impractical, then such currency shall
cease to be an Alternative Currency hereunder until such time as all the Lenders reinstate such country’s currency as an Alternative Currency. 

“Applicable Margin” means, with respect to Loans, Reimbursement Obligations, and the facility fees and letter of credit
fees payable under Section 4.1 hereof until the first Pricing Date, the rates per annum shown opposite Level III below, and thereafter from one Pricing Date to the next, the Applicable Margin means the rates per annum determined in
accordance with the following schedule: 
  

															
	 LEVEL
	  	 CASH FLOW
LEVERAGE RATIO
 FOR SUCH PRICING
DATE
	  	APPLICABLE
MARGIN FOR 
BASE
RATE LOANS SHALL
BE:	 	 	APPLICABLE
MARGIN
FOR
EUROCURRENCY
LOANS SHALL BE:	 	 	APPLICABLE
MARGIN FOR
LETTER 
OF CREDIT
FEE SHALL BE:	 	 	APPLICABLE
MARGIN FOR
FACILITY 
FEE
SHALL BE:	 
						
	 IV
	  	Greater than or equal to 2.0 to 1.0	  	1.00	% 	 	2.00	% 	 	2.00	% 	 	0.50	% 
						
	 III
	  	Less than 2.0 to 1.0 but greater than or equal to 1.5 to 1.0	  	0.85	% 	 	1.85	% 	 	1.85	% 	 	0.40	% 
						
	 II
	  	Less than 1.5 to 1.0, but greater than or equal to 1.0 to 1.0	  	0.65	% 	 	1.65	% 	 	1.65	% 	 	0.35	% 
						
	 I
	  	Less than 1.0 to 1.0	  	0.45	% 	 	1.45	% 	 	1.45	% 	 	0.30	% 

  

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 For purposes hereof, the term “Pricing Date” means, for any fiscal quarter of the Company
ending on or after the Effective Date, the date on which the Administrative Agent is in receipt of the Company’s most recent financial statements (and, in the case of the year-end financial statements, audit report) for the fiscal quarter then
ended, pursuant to Section 9.4 hereof. The Applicable Margin shall be established based on the Cash Flow Leverage Ratio for the most recently completed fiscal quarter and the Applicable Margin established on a Pricing Date shall remain in
effect until the next Pricing Date. If the Company has not delivered its financial statements by the date such financial statements (and, in the case of the year-end financial statements, audit report) are required to be delivered under
Section 9.4 hereof, until such financial statements and audit report are delivered, the Applicable Margin shall be the highest Applicable Margin (i.e., the Cash Flow Leverage Ratio shall be deemed to be greater than 2.0 to 1.0). If the
Company subsequently delivers such financial statements before the next Pricing Date, the Applicable Margin established by such late delivered financial statements shall take effect from the date of delivery until the next Pricing Date. In all other
circumstances, the Applicable Margin established by such financial statements shall be in effect from the Pricing Date that occurs immediately after the end of the fiscal quarter covered by such financial statements until the next Pricing Date. Each
determination of the Applicable Margin made by the Administrative Agent in accordance with the foregoing shall be conclusive and binding on the Borrowers and the Lenders if reasonably determined. 

“Application” is defined in Section 1.2(b) hereof. 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 14.12 hereof), and accepted by the Administrative Agent, in
substantially the form of Exhibit H or any other form approved by the Administrative Agent. 
 “Authorized
Representative” means those persons shown on the list of officers provided by the Company pursuant to Section 8.1(f) hereof, or on any update of such list provided by the Company to the Administrative Agent, or any further or different
officer of the Company so named by any Authorized Representative of the Company in a written notice to the Administrative Agent. 

“Base Rate” means, for any day, the rate per annum equal to the greatest of: (a) the rate of
interest announced or otherwise established by the Administrative Agent from time to time as its prime commercial rate, or its equivalent, for U.S. Dollar loans to borrowers located in the United States as in effect on such day, with any change
in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being acknowledged and agreed that such rate may not be the Administrative Agent’s
best or lowest rate), (b) the sum of (i) the rate determined by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher
 1/100 of 1%) of the rates per annum quoted to the
Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as 
  

 -23- 

 
soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers selected by the
Administrative Agent for sale to the Administrative Agent at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined, plus
(ii)  1/2 of 1%, and (c) the LIBOR Quoted
Rate for such day plus 1.00%. As used herein, the term “LIBOR Quoted Rate” means, for any day, the rate per annum equal to the quotient of (i) the rate per annum (rounded upward, if necessary, to the next higher one
hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one-month interest period which appears on the LIBOR01 Page as of 11:00 a.m. (London, England time) on such day (or, if such day is not a Business Day, on the
immediately preceding Business Day) divided by (ii) one (1) minus the Eurocurrency Reserve Percentage. 

“Base Rate Loan” means a Revolving Loan bearing interest prior to maturity at a rate specified in Section 1.3(a)
hereof. 
 “Borrower” and “Borrowers” are defined in the first paragraph of this Agreement.

 “Borrowing” means the total of Loans of a single type advanced, continued for an additional Interest Period,
or converted from a different type into such type by the Lenders on a single date and for a single Interest Period. Borrowings of Revolving Loans are made and maintained ratably from each of the Lenders according to their Percentages. A Borrowing
is: “advanced” on the day Lenders advance funds comprising such Borrowing to the Borrowers; “continued” on the date a new Interest Period for the same type of Loans commences for such Borrowing; and
“converted” when such Borrowing is changed from one type of Loan to another, all as requested by the Company pursuant to Section 1.5(a) hereof. Borrowings of Swing Loans are made by the Swing Line Lender in accordance with the
procedures set forth in Section 2 hereof. 
 “Business Day” means any day other than a Saturday or Sunday
on which Lenders are not authorized or required to close in Chicago, Illinois and, if the applicable Business Day relates to the borrowing or payment of a Eurocurrency Loan, on which banks are dealing in deposits in U.S. Dollars in the interbank
market in London, England and Nassau, Bahamas and, if the applicable Business Day relates to the borrowing or payment of a Eurocurrency Loan denominated in an Alternative Currency, on which banks and foreign exchange markets are open for business in
the city where disbursements of or payments on such Loan are to be made and, if such Alternative Currency is the euro or any national currency of a nation that is a member of the European Economic and Monetary Union, which is a TARGET Settlement
Day. 
 “Capital Lease” means any lease of Property which, in accordance with GAAP, would be required to be
capitalized on the balance sheet of the lessee. 
 “Capitalized Lease Obligation” means the amount of the
liability shown on the balance sheet of any Person in respect of a Capital Lease as determined in accordance with GAAP. 

“Cash Flow Leverage Ratio” means, as of any time the same is to be determined, the ratio of (a) Funded Debt as of
the last day of the most recent four fiscal quarters then ended minus Excess Cash as of the last day of the same such period to (b) EBITDA for the same most recent four fiscal quarters then ended. 

 

 -24- 

 “Change in Control” means and includes any of the following: 

(a) any person or group (within the meaning of Sections 13(d)(2) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended) is or becomes the beneficial owner, directly or indirectly, of 50% or more of the Voting Stock of the Company; or 

(b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted
the Board of Directors of the Company, together with any new directors whose election by the Board of Directors of the Company or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then
still in office who either were directors at the beginning of the period or whose election was previously so approved, cease for any reason other than death or disability to constitute at least a majority of the directors then in office; or

 (c) the stockholders of the Company shall approve the sale of all or substantially all of the assets of the
Company or any merger, consolidation, issuance of securities or purchase of assets, the result of which would be the occurrence of any event described in clause (a) or (b) above. 

“Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto. 

“Commercial Letter of Credit” means a Letter of Credit that finances a commercial transaction by paying part or all of
the purchase price for goods against delivery of a document of title covering such goods and any other required documentation. 

“Commitment Amount Increase” is defined in Section 3.8 hereof. 

“Commitment Amount Increase Request” means a Commitment Amount Increase Request in the form of Exhibit F hereto.

 “Company” is defined in the first paragraph of this Agreement. 

“Compliance Certificate” means a written certificate in the form of Exhibit G hereto. 

“Controlled Group” means, with respect to the Company, all members of a controlled group of corporations and all trades
and businesses (whether or not incorporated) under common control which, together with the Company or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code. 

 

 -25- 

 “Credit Event” means the advancing of any Loan, the continuation of or
conversion into a Eurocurrency Loan, or the issuance of, or extension of the expiration date or increase in the amount of, any Letter of Credit. 

“Default” means any event or condition the occurrence of which would, with the passage of time or the giving of notice,
or both, constitute an Event of Default. 
 Defaulting Lender” means any Lender that (a) has failed to fund any
portion of the Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder (herein, a “Defaulted Loan”) within two (2) Business Days of the date required to be funded by
it hereunder unless such failure has been cured or is the subject of a good faith dispute, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within
two (2) Business Days of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, or (c) has become the subject of a bankruptcy or insolvency proceeding or a receiver or conservator has been
appointed for such Lender. 
 “Defaulting Lender Excess” means, with respect to any Defaulting Lender, the
excess, if any, of such Defaulting Lender’s Percentage of the aggregate outstanding principal amount of Loans of all Lenders (calculated as if all Lenders had funded all of their respective Loans) over the aggregate outstanding principal amount
of all Loans funded by such Defaulting Lender. 
 “Defaulting Lender Period” means, with respect to any
Defaulting Lender, the period commencing on the date upon which such Lender first became a Defaulting Lender and ending on the earliest of the following dates: (i) the date on which all Revolving Credit Commitments are cancelled or terminated
and/or the Obligations are declared or become immediately due and payable and (ii) the date on which (a) such Defaulting Lender is no longer insolvent, the subject of a bankruptcy or insolvency proceeding or, if applicable, under the
direction of a receiver or conservator, (b) the Defaulting Lender Excess with respect to such Defaulting Lender shall have been reduced to zero, and (c) such Defaulting Lender shall have delivered to the Company and the Administrative
Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Revolving Credit Commitment. 

“Domestic Subsidiary” means each Subsidiary which is organized under the laws of the United States of America or any
State thereof. 
 “EBIT” means, for any Person and with reference to any period, Net Income for such period
plus all amounts deducted in arriving at such Net Income amount in respect of (a) Interest Expense for such period, (b) federal, state, and local income taxes for such period and (c) to the extent also included in the
corresponding calculation under the Note Purchase Agreement, the expense resulting from any change in estimated acquisition earnout payables, minus to the extent also included in the corresponding calculation under the Note Purchase
Agreement, all amounts included in arriving at such Net Income amount in respect of the income resulting from any change in estimated acquisition earnout payables; provided that there shall be included in such determination for such period
all such amounts attributable to any Person acquired during such period to the extent not subsequently sold or otherwise disposed of during such period but only to the extent also included in the corresponding calculation under the Note Purchase
Agreement. 
  

 -26- 

 “EBITDA” means, for any Person and with reference to any period, EBIT for
such period plus all amounts properly charged for depreciation of fixed assets and amortization of intangible assets during such period on the books of such Person and its subsidiaries; provided that there shall be included in such
determination for such period all amounts properly charged for depreciation of fixed assets and amortization of intangible assets during such period attributable to any Person acquired during such period to the extent not subsequently sold or
otherwise disposed of during such period but only to the extent also included in the corresponding calculation under the Note Purchase Agreement. 

“Effective Date” means the date on which the Administrative Agent has received signed counterpart signature pages of
this Agreement from each of the signatories (or, in the case of a Lender, confirmation that such Lender has executed such a counterpart and dispatched it for delivery to the Administrative Agent) and the documents required by Section 8.1
hereof. 
 “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved
Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent, (ii) the L/C Issuer and Swing Line Lender, and (iii) unless an Event of Default has occurred and is continuing, the
Company (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include any Borrower or any of the Company’s Affiliates or Subsidiaries.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute
thereto. 
 “Eurocurrency Loan” means a Revolving Loan bearing interest prior to maturity at the rate specified
in Section 1.3(b) hereof. 
 “Event of Default” means any of the events or circumstances specified in
Section 10.1 hereof. 
 “Excess Cash” means, as of any date the same is to be determined, all cash on the
books of the Company and its Domestic Subsidiaries which is maintained in accounts located in the United States of America and which is in excess of $25,000,000 excluding restricted cash. 

“Existing Credit Agreement” means the Amended and Restated Multicurrency Credit Agreement dated as of December 19,
2007 among the Company, the other Borrowers party thereto, the Lenders party thereto and Harris N.A., as Administrative Agent. 

“Existing L/Cs” means the outstanding letters of credit issued by Harris N.A. pursuant to the Existing Credit Agreement
prior to the date hereof, all of which are listed and described on Schedule 1.2(a) hereof. 
  

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 “Federal Funds Rate” means the fluctuating interest rate per annum
described in part (x) of clause (b)(i) of the definition of Base Rate. 
 “Fixed Rate Loans” means
Swing Loans bearing interest at the Quoted Rate and Eurocurrency Loans, unless the context in which such term is used shall otherwise require. 

“Funded Debt” means, at any time the same is to be determined, the aggregate of all Indebtedness for Borrowed Money of
the Company and its Subsidiaries on a consolidated basis at such time plus all Indebtedness for Borrowed Money of any other Person which is directly or indirectly guaranteed by the Company or any of its Subsidiaries or which the Company or
any of its Subsidiaries has agreed (contingently or otherwise) to purchase or otherwise acquire or in respect of which the Company or any of its Subsidiaries has otherwise assured a creditor against loss. 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America
applied by the Company and its Subsidiaries on a basis consistent with the preparation of the Company’s most recent financial statements furnished to the Lenders pursuant to Section 7.5 hereof. 

“Guarantor” is defined in Section 5.2 hereof. 

“Guaranty” is defined in Section 5.2 hereof. 

“Indebtedness for Borrowed Money” means for any Person (without duplication) (i) all indebtedness created, assumed
or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (ii) all indebtedness for the deferred purchase price of property or services (other than (a) trade accounts payable
arising in the ordinary course of business which are not more than 90 days past due and (b) obligations to make earn-out payments in cash, debt instruments or preferred stock, pursuant to acquisitions occurring prior to the date of this
Agreement or permitted under this Agreement), (iii) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (iv) all Capitalized Lease
Obligations of such Person and (v) all obligations of such Person on or with respect to letters of credit, bankers’ acceptances and other extensions of credit whether or not representing obligations for borrowed money, excluding, in each
case, indebtedness which is non-recourse to such Person and its subsidiaries. 
 “Interest Coverage Ratio”
means, as of any time the same is to be determined, the ratio of (a) EBIT for the four fiscal quarter period most recently ended to (b) Interest Expense during the same such four fiscal quarter period. 

“Interest Expense” means, for any Person and with reference to any period, the sum of all interest charges (including
imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of such Person and its subsidiaries for such period determined on a consolidated basis in accordance with GAAP excluding
incremental interest charges resulting from consolidation under FIN 46. 
  

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 “Interest Period” is defined in Section 3.1 hereof. 

“L/C Documents” means the Letters of Credit, any draft or other document presented in connection with a drawing
thereunder, the Applications and this Agreement. 
 “L/C Issuer” means Bank of Montreal or any of its
Affiliates and, with respect to the existing L/Cs, Harris N.A. and any Lender or Lenders selected by the Company and reasonably acceptable to the Administrative Agent. 

“L/C Obligations” means the U.S. Dollars Equivalent of the aggregate undrawn face amounts of all outstanding Letters of
Credit and all unpaid Reimbursement Obligations. 
 “L/C Sublimit” means $75,000,000, as such amount may be
reduced pursuant to the terms hereof. 
 “Lender” means and includes each financial institution party hereto
and the other financial institutions from time to time party to this Agreement, including each assignee Lender pursuant to Section 14.12 hereof and, unless the context otherwise requires, the Swing Line Lender. 

“Lending Office” is defined in Section 11.4 hereof. 

“Letter of Credit” is defined in Section 1.2(a) hereof. 

“Lien” means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any
Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement. 

“Loan” means and includes each Revolving Loan and Swing Loan; and the term “type” of Loan refers to its
status as a Revolving Loan or a Swing Loan, or, if a Revolving Loan, to its status as a Base Rate Loan or Eurocurrency Loan. 

“Loan Documents” means this Agreement, the Notes, the Applications, the Letters of Credit, the Additional Guarantor
Supplements, the Additional Obligor Supplements and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith and, in each case, as the same may be amended, modified restated or supplemented from
time to time. 
 “Material” means, with respect to any Subsidiary, a Subsidiary whose assets represent more
than 5% of the assets of the Company and its Subsidiaries on a consolidated basis. 
 “Material Adverse Effect”
means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, condition (financial or otherwise) or prospects of the Company or of the Company and its Subsidiaries taken as a whole, (b) a
material impairment of the ability of the Company and its Subsidiaries, taken as a whole, to perform their obligations under this Agreement, the Notes, the Applications, or the Letters of Credit, as applicable, or (c) a

  

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material adverse effect upon the legality, validity, binding effect or enforceability against the Company and its Subsidiaries, taken as a whole, of this Agreement, the Notes, the Applications,
or the Letters of Credit, as applicable, or the rights and remedies of the Administrative Agent, the L/C Issuer or the Lenders thereunder. 

“Net Income” means, for any Person and with reference to any period, the net income (or net loss) of such Person and its
subsidiaries for such period as computed on a consolidated basis in accordance with GAAP, and, without limiting the foregoing, after deduction from gross income of all expenses and reserves, including reserves for all taxes on or measured by
income. 
 “Net Worth” means, at any time the same is to be determined, the total shareholders’
equity (including capital stock, additional paid-in capital and retained earnings after deducting treasury stock, but excluding minority interests in Subsidiaries) which would appear on the balance sheet of the Company and its Subsidiaries
determined on a consolidated basis in accordance with GAAP; provided, however, that in computing Net Worth, the Company may exclude the effect of stock repurchases aggregating not more than $300,000,000 after the Effective Date so long as
such stock repurchases are approved by the Company’s board of directors. 
 “Non-Borrower Subsidiary”
means any Subsidiary that is not a Borrower. 
 “Note Purchase Agreement” means that certain Amended and
Restated Note Purchase Agreement dated December 19, 2007 among Arthur J. Gallagher & Co. and certain of its Subsidiaries party thereto, as obligors, and the Noteholders party thereto, as amended, restated, supplemented or modified from
time to time. 
 “Notes” is defined in Section 3.3(d) hereof. 

“Obligations” means all obligations of the Borrowers to pay principal and interest on the Loans and the L/C Obligations,
all fees and charges payable hereunder, and all other payment obligations of the Borrowers, and any of them, arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or
indirect, absolute or contingent, and howsoever evidenced, held or acquired. 
 “OFAC” means the United
States Department of Treasury Office of Foreign Assets Control. 
 “OFAC Event” means the event
specified in Section 9.18 hereof. 
 “OFAC Sanctions Programs” means all laws,
regulations, and Executive Orders administered by OFAC, including without limitation, the Bank Secrecy Act, anti-money laundering laws (including, without limitation, the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56 (a/k/a the USA Patriot Act)), and all economic and trade sanction programs administered by OFAC, any and all similar United States federal laws, regulations or Executive Orders, and any
similar laws, regulators or orders adopted by any State within the United States.  
  

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 “OFAC SDN List” means the list of the Specially Designated Nationals
and Blocked Persons maintained by OFAC. 
 “Original Dollar Amount” means the amount of any Obligations
denominated in U.S. Dollars and, in relation to any Loan denominated in an Alternative Currency, the U.S. Dollars Equivalent of such Loan on the day it is advanced or continued for an Interest Period. 

“Participating Interest” is defined in Section 1.2(e) hereof. 

“Participating Lender” is defined in Section 1.2(e) hereof. 

“PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under
ERISA. 
 “Percentage” means, for each Lender, the percentage of the Revolving Credit Commitments
represented by such Lender’s Revolving Credit Commitment or, if the Revolving Credit Commitments have been terminated, the percentage held by such Lender (including through participation interests in L/C Obligations outstanding under the
Revolving Credit and Swing Loans) of the aggregate principal amount of all Revolving Loans, Swing Loans and L/C Obligations then outstanding. 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated
organization or any other entity or organization, including a government or any agency or political subdivision thereof. 

“Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code that either (i) is maintained by a member of the Controlled Group for employees of a member of the Controlled Group or (ii) is maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.

 “Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible
or intangible. 
 “Quoted Rate” is defined in Section 2.3 hereof. 

“Reimbursement Obligation” is defined in Section 1.2(c) hereof. 

“Replaced Lender” is defined in Section 11.6 hereof. 

“Replacement Lender” is defined in Section 11.6 hereof. 

“Required Lenders” means, as of the date of determination thereof, Lenders holding greater than 50% of the Percentages.

  

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 “Responsible Officer” means, with respect to any Borrower, each or any of
its president, chief financial officer, treasurer, chief accounting officer or general counsel. 
 “Revaluation
Date” means, (i) with respect to any Revolving Loan denominated in an Alternative Currency, each date as the Administrative Agent or the Required Lenders shall specify and (ii) with respect to any Letter of Credit denominated in
an Alternative Currency, (a) the date of issuance thereof, (b) the date of each amendment thereto having the effect of increasing the amount thereof, (c) the last day of each calendar month, and (d) each additional date as the
Administrative Agent or the Required Lenders shall specify. 
 “Revolving Credit” means the credit facility for
making Revolving Loans and issuing Letter of Credit described in Sections 1.1 and 1.2 hereof. 
 “Revolving Credit
Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Loans and to participate in Swing Loans and Letters of Credit issued for the account of the Borrowers hereunder in an aggregate principal or face amount at
any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule I attached hereto, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrowers and
the Lenders acknowledge and agree that the Revolving Credit Commitments of the Lenders aggregate $500,000,000 on the date hereof. 

“Revolving Credit Note” is defined in Section 3.3(d) hereof. 

“Revolving Loan” is defined in Section 1.1 hereof. 

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

“Set-Off” is defined in Section 14.7 hereof. 

“Standby Letter of Credit” means a Letter of Credit that is not a Commercial Letter of Credit. 

“Subsidiary” means any corporation or other Person more than 50% of the Voting Stock of which is at the time directly or
indirectly owned by the Company and/or one or more Persons which are themselves Subsidiaries of the Company. 
 “Swing
Line” means the credit facility for making one or more Swing Loans described in Section 2.1 hereof. 

“Swing Line Lender” means Bank of Montreal, acting in its capacity as the Lender of Swing Loans hereunder, or any
successor Lender acting in such capacity appointed pursuant to Section 14.12 hereof. 
 “Swing Line Note”
is defined in Section 3.3(d) hereof. 
  

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 “Swing Line Sublimit” means $50,000,000, as such amount may be reduced
pursuant to the terms hereof. 
 “Swing Loans” is defined in Section 2.1 hereof. 

“TARGET Settlement Day” means any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer
(TARGET) System is open. 
 “Termination Date” means July 15, 2014. 

“Unfunded Vested Liabilities” means, for any Plan at any time, the amount (if any) by which the present value of all
vested nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess
represents a potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. 

“U.S. Dollar Equivalent” means (a) the amount of any Obligation or Letter of Credit denominated in U.S. Dollars,
(b) in relation to any Obligation or Letter of Credit denominated in an Alternative Currency, the amount of U.S. Dollars which would be realized by converting such Alternative Currency into U.S. Dollars at the exchange rate quoted to the
Administrative Agent, at approximately 11:00 a.m. (London time) three Business Days prior (i) to the date on which a computation thereof is required to be made, and (ii) on any Revaluation Date, in each case, by major banks in the
interbank foreign exchange market for the purchase of U.S. Dollars for such Alternative Currency. 
 “U.S.
Dollars” and “$” each means the lawful currency of the United States of America. 
 “Voting
Stock” means, with respect to any Person, the capital stock of any class or classes or other equity interests (however designated) having ordinary voting power for the election of directors or similar governing body of such Person, other
than stock or other equity interests having such power only by reason of the happening of a contingency. 
 “Welfare
Plan” means a “welfare plan”, as defined in Section 3(1) of ERISA. 

“Wholly-Owned” means, with respect to any Subsidiary, a Subsidiary of which all of the issued and outstanding shares of
capital stock (other than directors’ qualifying shares as required by law) or other equity interests are owned by the Company and/or one or more Wholly-Owned Subsidiaries of the Company within the meaning of this definition. 

Section 6.2. Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the
terms defined. The words “hereof”, “herein”, and “hereunder” and words of like import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. All references to time of day herein are references to Chicago, Illinois time unless otherwise specifically provided.  
  

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 Section 6.3. Change in Accounting Principles. If, after the date of this
Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 7.5 hereof and such change shall result in a change in the method of calculation of any financial covenant,
standard or term found in this Agreement, either the Company or the Required Lenders may by notice to the Lenders and the Company, respectively, require that the Lenders and the Borrowers negotiate in good faith to amend such covenants, standards,
and terms so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Company and its Subsidiaries shall be the same as if such change had not been
made. No delay by the Company or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is
amended in accordance with this Section 6.3, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Company
shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of
a change in accounting principles after the date hereof. 
 SECTION 7. REPRESENTATIONS AND
WARRANTIES. 
 The Borrowers hereby represent and warrant to the Administrative Agent and each Lender as follows:

 Section 7.1. Organization and Qualification. The Company is duly organized, validly existing and in good standing
as a corporation under the laws of the State of Delaware, has full corporate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the
business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to be so licensed or qualified could not reasonably be expected to have a Material Adverse Effect.

 Section 7.2. Subsidiaries. Each Subsidiary is duly organized, validly existing and, to the extent applicable, in
good standing under the laws of the jurisdiction in which it is incorporated or organized, as the case may be, has full corporate or limited liability company power to own its Property and conduct its business as now conducted, and is duly licensed
or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to be so licensed or
qualified could not reasonably be expected to have a Material Adverse Effect. Schedule 7.2 hereto identifies as of the Effective Date (i) each Subsidiary, the jurisdiction of its incorporation or organization, as the case may be, the
percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Company and its Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as required by law),
a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding and (ii) each direct Material Wholly-Owned Domestic Subsidiary. All of the outstanding shares
of 
  

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capital stock and other equity interests of each Subsidiary are validly issued and outstanding and, in the case of capital stock, fully paid and nonassessable and all such shares and other equity
interests indicated on Schedule 7.2 as owned by the Company or any of its Subsidiaries are owned, beneficially and of record, by the Company or such Subsidiary free and clear of all Liens. There are no outstanding commitments or other
obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any Subsidiary. 

Section 7.3. Corporate Authority and Validity of Obligations. Each Borrower has full corporate or limited liability company
power and authority to enter into this Agreement and the other Loan Documents to which it is a party, to make the borrowings herein provided for, to issue the Notes in evidence thereof, and to perform all of its obligations hereunder and under the
other Loan Documents to which it is a party. Each Guarantor has full corporate or limited liability company power and authority to enter into this Agreement pursuant to an Additional Guarantor Supplement and perform all of its Obligations hereunder.
Each Loan Document to which any Borrower or any Guarantor is a party has been duly authorized, executed and delivered by such Borrower or such Guarantor, as the case may be, and constitutes the valid and binding obligation of such Borrower or such
Guarantor enforceable in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in equity or at law). No Loan Document, nor the performance or observance by any Borrower or any Guarantor of any of the matters and things herein or therein provided for,
contravenes or constitutes a default under any provision of law or any judgment, injunction, order or decree binding upon any Borrower or any Guarantor or any provision of the charter, articles of incorporation or by-laws (or equivalent
organizational document) of any Borrower or any Guarantor or any covenant, indenture or agreement of or affecting any Borrower or any Guarantor or any of their respective Properties, in each case where such contravention or default, individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect, or result in the creation or imposition of any Lien on any Property of any Borrower or any Guarantor. 

Section 7.4. Use of Proceeds; Margin Stock. The Borrowers shall use the proceeds of the Loans and other extensions of credit
made available hereunder to fund their general corporate and working capital purposes, to refinance existing indebtedness and for such other purposes as are consistent with all applicable laws and the terms hereof. Neither the Company nor any
Subsidiary is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any
Loan or any other extension of credit hereunder will be used to purchase or carry margin stock or used in a manner that violates any provision of Regulation U or X of the Board of Governors of the Federal Reserve System. 

Section 7.5. Financial Reports. The consolidated balance sheet of the Company and its Subsidiaries as at December 31,
2009, and the related consolidated statements of income, retained earnings and cash flows of the Company and its Subsidiaries for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit
report of Ernst & Young LLP, independent public accountants, and the unaudited interim 
  

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consolidated balance sheet of the Company and its Subsidiaries as at March 31, 2010, and the related consolidated statements of income, retained earnings and cash flows of the Company and
its Subsidiaries for the three months then ended, heretofore furnished to the Lenders, fairly present in all material respects the consolidated financial condition of the Company and its Subsidiaries as at said dates and the consolidated results of
their operations and cash flows for the periods then ended in conformity with generally accepted accounting principles applied on a consistent basis (except, in the case of such unaudited statements, for normal year-end audit adjustments). Except as
previously disclosed in writing to the Administrative Agent, neither the Company nor any Subsidiary has contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the
financial statements furnished pursuant to Section 9.4 hereof. 
 Section 7.6. No Material Adverse Change.
Since December 31, 2009, except as previously disclosed in the Company’s Form 10-K filed with the SEC for the year ended December 31, 2009, or the Company’s Form 10-Q filed with the SEC for the quarter ended March 31,
2010, there has been no change in the condition (financial or otherwise) or business prospects of the Company and its Subsidiaries taken as a whole which could reasonably be expected to have a Material Adverse Effect. 

Section 7.7. Full Disclosure. The written statements and information furnished to the Lenders in connection with the
negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to
make the material statements contained herein or therein not misleading, the Lenders acknowledging that as to any projections furnished to the Lenders, the Borrowers only represent that the same were prepared on the basis of information and
estimates the Borrowers believed to be reasonable. 
 Section 7.8. Good Title. The Company and its Subsidiaries each
have good and defensible title to their assets as reflected on the most recent consolidated balance sheet of the Company and its Subsidiaries furnished to the Lenders (except for sales of assets in the ordinary course of business), subject to no
Liens other than such thereof as are permitted by Section 9.9 hereof. 
 Section 7.9. Litigation and Other
Controversies. Except as otherwise disclosed in the Company’s Form 10-K for the year ended December 31, 2009, or the Company’s Form 10-Q for the quarter ended March 31, 2010, there is no litigation, arbitration or
governmental proceeding or labor controversy pending, nor to the knowledge of any Borrower threatened, against the Company or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect. 

Section 7.10. Taxes. All federal, state and other material tax returns required to be filed by the Company and its
Subsidiaries in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Company and its Subsidiaries or upon any of their respective Properties, income or franchises, which are shown to be
due and payable in such returns, have been paid, except for any taxes, assessments, fees or charges being contested in good faith by appropriate proceeding which prevent or stay enforcement of the

  

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matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Company does not know of any proposed additional tax assessment against it or
its Subsidiaries for which adequate provision in accordance with GAAP has not been made on its accounts. Adequate provisions in accordance with GAAP for taxes on the books of the Company and its Subsidiaries have been made for all open years, and
for its current fiscal period. 
 Section 7.11. Approvals. No authorization, consent, license, or exemption from, or
filing or registration with, any court or governmental department, agency or instrumentality, nor any approval or consent of the stockholders of the Company or any other Person, is or will be necessary to the valid execution, delivery or performance
by any Borrower of this Agreement or any other Loan Document, except for such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect. 

Section 7.12. Affiliate Transactions. Neither the Company nor any Subsidiary is a party to any contracts or agreements with
any of its Affiliates (other than transactions between the Company and a Wholly-Owned Subsidiary or between Wholly-Owned Subsidiaries) on terms and conditions which are less favorable to the Company or such Subsidiary than would be usual and
customary in similar contracts or agreements between Persons not affiliated with each other. 
 Section 7.13. Investment
Company. Neither the Company nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

Section 7.14. ERISA. In respect of each Plan, the Company and each other member of its Controlled Group has fulfilled its
obligations under the minimum funding standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any material liability to the PBGC or a Plan under Title IV of ERISA
other than a liability to the PBGC for premiums under Section 4007 of ERISA. Neither the Company nor any Subsidiary has any material contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than liability
for continuation coverage described in article 6 of Title I of ERISA. 
 Section 7.15. Compliance with
Laws. The Company and its Subsidiaries are in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to their Properties or business operations (including, without limitation, the
Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), non-compliance with
which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary has received notice to the effect that its operations are not in compliance with any of the requirements
of applicable federal, state or local environmental, health and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous
waste or substance into the environment, which non-compliance or remedial action, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

 

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 Section 7.16. Other Agreements. Neither the Company nor any Subsidiary is in
default under the terms of any covenant, indenture or agreement of or affecting the Company, any Subsidiary or any of their Properties, which default if uncured could reasonably be expected to have a Material Adverse Effect. 

Section 7.17. Labor Controversies. There are no labor controversies pending or threatened against the Company or any
Subsidiary which could reasonably be expected to have a Material Adverse Effect. 
 Section 7.18. Insolvency. After
giving effect to the execution and delivery of the Loan Documents and the extensions of credit under this Agreement: (a) neither any Borrower nor any Guarantor will (i) be “insolvent,” within the meaning of such term as used in
§101 of the “Bankruptcy Code”, or Section 2 of either the “UFTA” or the “UFCA”, or as defined or used in any “Other Applicable Law” (as those terms are defined below), or (ii) be unable to pay
its debts generally as such debts become due within the meaning of Section 548 of the Bankruptcy Code, Section 4 of the UFTA or Section 6 of the UFCA, or (iii) have an unreasonably small capital to engage in any business or
transaction, whether current or contemplated, within the meaning of Section 548 of the Bankruptcy Code, Section 4 of the UFTA or Section 5 of the UFCA; and (b) the obligations of the Borrowers and the Guarantors under the Loan
Documents and with respect to the Loans and Letters of Credit will not be rendered avoidable under any Other Applicable Law. For purposes of this Section, “Bankruptcy Code” means Title 11 of the United States Code,
“UFTA” means the Uniform Fraudulent Transfer Act, “UFCA” means the Uniform Fraudulent Conveyance Act, and “Other Applicable Law” means any other applicable law pertaining to fraudulent transfers or
obligations voidable by creditors, in each case as such law may be amended from time to time. 
 Section 7.19. No
Default. No Default or Event of Default has occurred and is continuing. 
 Section 7.20. OFAC. (a) The
Company is in compliance with the requirements of all OFAC Sanctions Programs applicable to it, non-compliance with which could reasonably be expected to have a Material Adverse Effect, (b) each Subsidiary of the Company is in compliance with
the requirements of all OFAC Sanctions Programs applicable to such Subsidiary, (c) the Company has provided to the Administrative Agent, the L/C Issuer, and the Lenders all information regarding the Company and its Affiliates and Subsidiaries
requested by the Administrative Agent and necessary for the Administrative Agent, the L/C Issuer, and the Lenders to comply with all applicable OFAC Sanctions Programs, and (d) to the best of the Company’s knowledge, neither the Company
nor any of its Affiliates or Subsidiaries is, as of the date hereof, named on the current OFAC SDN List. 
  

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 SECTION 8. CONDITIONS PRECEDENT. 

The obligation of each Lender to advance, continue, or convert any Loan (other than the continuation of, or conversion into, a Base Rate
Loan), or of the L/C Issuer to issue, extend the expiration date of or increase the amount of any Letter of Credit, shall be subject to the following conditions precedent: 

Section 8.1. Initial Credit Event. The effectiveness of this Agreement shall be subject to the satisfaction prior to or on
the date of this Agreement, of the following conditions: 
 (a) The Administrative Agent (or its counsel) shall
have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature
page of this Agreement) that such party has signed a counterpart of this Agreement; 
 (b) If requested by any
Lender, the Administrative Agent shall have received (i) for each Lender, such Lender’s duly executed Note and (ii) the Swing Line Lender’s duly executed Swing Line Note dated the date hereof; 

(c) The Administrative Agent shall have received for each Lender the favorable written opinion of counsel to the Borrowers
in form and substance satisfactory to the Administrative Agent and its counsel; 
 (d) The Administrative Agent
shall have received (i) an original certificate of good standing for each Borrower (to the extent applicable), certified as of a date not earlier than 30 days prior to the date hereof by the Secretary of State of such party’s jurisdiction
of organization and (ii) certificate or articles of incorporation or formation, together with all amendments thereto, and bylaws and any amendments thereto, for each Borrower, certified by such party’s Secretary or an Assistant Secretary;

 (e) The Administrative Agent shall have received copies of resolutions of each Borrower’s Board of
Directors authorizing the execution and delivery of the Loan Documents to which it is a party and the consummation of the transactions contemplated thereby, together with specimen signatures of the persons authorized to execute such documents on
behalf of such Borrower, all certified in each instance by its Secretary or Assistant Secretary; 
 (f) The
Administrative Agent shall have received a list of the Company’s Authorized Representatives; 
 (g) The
Administrative Agent shall have received the fees required by Section 4.1(c) and 4.1(d) hereof; 
 (h) The
Existing Credit Agreement shall have been terminated and all amounts payable thereunder shall have been paid or shall be paid with the proceeds of the initial Credit Event; 

(i) Each of the representations and warranties set forth in Section 7 hereof shall be true and correct in all
material respects; and 
 (j) All legal matters incident to the execution and delivery of the Loan Documents
shall be reasonably satisfactory to the Lenders. 
  

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 Each Lender that is also a “Lender” under the Existing Credit Agreement
referenced in clause (h) above, by its execution hereof, hereby waives any requirement under Section 3.7 of the Existing Credit Agreement that the Borrowers give prior notice of the termination of the “Revolving Credit
Commitments” thereunder, and agrees that such notice may be given on the same day as such termination is to be effective. In addition, such Lenders and the Borrowers agree that the Existing Credit Agreement shall terminate and all amounts
payable thereunder shall be due and payable on the date hereof. 
 Section 8.2. All Credit Events. As of the time of
each Credit Event hereunder: 
 (a) In the case of a Borrowing of a Revolving Loan, the Administrative Agent
shall have received the notice required by Section 1.5 hereof (including any deemed notice under Section 1.5(c)); in the case of a Swing Loan, the Swing Line Lender shall have received the notice required in Section 2.3 hereof; in the
case of the issuance of any Letter of Credit, the L/C Issuer shall have received a duly completed Application for such Letter of Credit (along with the fees required by Section 4.1(b) hereof); in the case of an extension or increase in the
amount of a Letter of Credit, the L/C Issuer shall have received a written request therefor (along with the fees required by Section 4.1(b) hereof) in a form acceptable to the L/C Issuer; 

(b) Each of the representations and warranties set forth in Section 7 hereof (other than Section 7.6) shall be
true and correct in all material respects as of said time, taking into account any amendments to such Section made after the date of this Agreement in accordance with its provisions, except that if any such representation or warranty relates solely
to an earlier date it need only remain true as of such date; 
 (c) No Default or Event of Default shall have
occurred and be continuing or would occur as a result of such Credit Event; 
 (d) After giving effect to such
Credit Event, the aggregate U.S. Dollar Equivalent of Revolving Loans, Original Dollar Amount of Swing Loans and U.S. Dollar Equivalent of L/C Obligations then outstanding shall not exceed the Revolving Credit Commitments then in effect;
and 
 (e) Such Credit Event shall not violate any order, judgment or decree of any court or other authority or
any provision of law or regulation applicable to the Administrative Agent or any Lender (including, without limitation, Regulation U or X of the Board of Governors of the Federal Reserve System). 

Each request for a Borrowing hereunder and each request for the issuance of, increase in the amount of, or extension of the expiration
date of, a Letter of Credit shall be deemed to be a representation and warranty by the Borrowers on the date of such Credit Event as to the facts specified in paragraphs (a) through (d), both inclusive, of this Section 8.2. 

 

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 SECTION 9. COVENANTS. 

The Borrowers covenant and agree that, so long as any credit is available to or in use by the Borrowers hereunder, except to the extent
compliance in any case is waived in writing pursuant to the terms of Section 14.13 hereof: 
 Section 9.1.
Maintenance of Business. The Company shall, and shall cause each Subsidiary to, preserve and maintain its existence, and preserve and keep in force and effect all licenses, permits and franchises necessary to the proper conduct of its business;
provided, however, that nothing in this Section 9.1 shall prohibit the dissolution, sale, transfer or other disposition of any Subsidiary which is otherwise permitted under Section 9.11 hereof. 

Section 9.2. Taxes and Assessments. The Company shall duly pay and discharge, and shall cause each Subsidiary to duly
pay and discharge, all material taxes, rates, assessments, fees and governmental charges upon or against it or its Properties, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same
are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor. 

Section 9.3. Insurance. The Company shall insure and keep insured, and shall cause each Subsidiary to insure and keep
insured, with responsible insurance companies, all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such
amounts, as are insured by Persons similarly situated and operating like Properties; and the Company shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including employers’ and public liability risks) with
responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Company shall upon written request furnish to the Administrative Agent and any Lender a certificate setting
forth in summary form the nature and extent of the insurance maintained pursuant to this Section. 
 Section 9.4.
Financial Reports. The Company shall, and shall cause each Subsidiary to, maintain a standard system of accounting in accordance with GAAP and shall furnish to the Administrative Agent, each Lender and their duly authorized representatives such
information respecting the business and financial condition of the Company and its Subsidiaries as the Administrative Agent may reasonably request (each Lender to have the right to require the Administrative Agent make such request); and without any
request, the Company will furnish each of the following to the Administrative Agent, with sufficient copies for each Lender (which the Administrative Agent shall promptly distribute to each Lender) or, in lieu of furnishing any such item to the
Administrative Agent, may at such time notify the Administrative Agent that such item has been posted to a website maintained by or on behalf of the Company and accessible to all of the Lenders, such notification to inform the Administrative Agent
of any information necessary to allow the Lenders to access such item: 
 (a) as soon as available, and in any
event within 45 days after the close of each of the first three fiscal quarters of each fiscal year of the Company, a copy of the 

 

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consolidated balance sheet of the Company and its Subsidiaries as of the last day of such period and the consolidated statements of income, retained earnings and cash flows of the Company and its
Subsidiaries for the fiscal quarter and for the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by the Company in
accordance with GAAP (subject to normal year-end adjustments) and certified to by its President, Chief Financial Officer, Vice President and Treasurer, or Chief Accounting Officer; 

(b) as soon as available, and in any event within 90 days after the close of each annual accounting period of the Company,
a copy of the consolidated balance sheet of the Company and its Subsidiaries as of the last day of the period then ended and the consolidated statements of income, retained earnings and cash flows of the Company and its Subsidiaries for the period
then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal year, accompanied by an opinion thereon, unqualified as to scope and going-concern status, of Ernst &
Young LLP or another firm of independent public accountants of recognized national standing, selected by the Company and satisfactory to the Administrative Agent, to the effect that the financial statements have been prepared in accordance with GAAP
and present fairly in accordance with GAAP the consolidated financial condition of the Company and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an
examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing
procedures as were considered necessary in the circumstances; 
 (c) within the period provided in
subsection (b) above, the written statement of the accountants who certified the audit report thereby required that in the course of their audit they have obtained no knowledge of any Default or Event of Default with respect to
Sections 9.6, 9.7 and 9.8, or, if such accountants have obtained knowledge of any such Default or Event of Default, they shall disclose in such statement the nature and period of the existence thereof; 

(d) promptly after receipt thereof, any additional written reports, management letters or other detailed information
contained in writing given to it by its independent public accountants and having a material impact on the consolidated financial condition of the Company and its Subsidiaries; 

(e) promptly after the sending or filing thereof, a copies of all proxy statements, financial statements and reports which
the Company sends to its shareholders, and copies of all regular, periodic and special reports and all registration statements which the Company files with the SEC or with any national securities exchange; 

(f) promptly after knowledge thereof shall have come to the attention of any Responsible Officer of the Company, written
notice of (i) any threatened or pending 
  

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litigation or governmental or arbitration proceeding or labor controversy against the Company or any Subsidiary which could reasonably be expected to have a Material Adverse Effect or
(ii) of the occurrence of any Default or Event of Default hereunder; 
 (g) notice of any Change in Control;
and 
 (h) promptly after the effectiveness thereof (i) true and complete copies of any amendments to the
Note Purchase Agreement and (ii) notice of the addition of any guarantor under the Note Purchase Agreement. 
 Each of the financial
statements furnished to the Administrative Agent and the Lenders pursuant to subsections (a) and (b) of this Section shall be accompanied by a Compliance Certificate signed by the President, the Chief Financial Officer or the Vice
President and Treasurer of the Company to the effect that to the best of such officer’s knowledge and belief no Default or Event of Default has occurred during the period covered by such statements or, if any such Default or Event of Default
has occurred during such period, setting forth a description of such Default or Event of Default and specifying the action, if any, taken by the Borrowers to remedy the same. Such Compliance Certificate shall also (i) set forth the calculations
supporting such statements in respect of Sections 9.6, 9.7 and 9.8 of this Agreement and (ii) contain a calculation of the Cash Flow Leverage Ratio for purposes of determining adjustments (if any) to the Applicable Margins. 

Section 9.5. Inspection. The Company shall, and shall cause each Subsidiary to, permit the Administrative Agent, each Lender
and each of their duly authorized representatives and agents during normal business hours to visit and inspect any of the Properties, corporate books and financial records of the Company and each Subsidiary, to examine and make copies of the books
of accounts and other financial records of the Company and each Subsidiary, and to discuss the affairs, finances and accounts of the Company and each Subsidiary with, and to be advised as to the same by, its officers, employees and independent
public accountants (and by this provision the Company hereby authorizes such accountants to discuss with the Administrative Agent and such Lender the finances and affairs of the Company and of each Subsidiary) at such reasonable times and reasonable
intervals as the Administrative Agent or any such Lender may designate. 
 Section 9.6. Net Worth. The Company shall
not at any time permit its Net Worth to be less than $650,000,000 plus 40% of Net Income for each calendar quarter (if positive for such quarter) completed as of the date of determination, commencing with the calendar quarter ending
September 30, 2010. 
 Section 9.7. Cash Flow Leverage Ratio. The Company shall not at any time permit its Cash
Flow Leverage Ratio to be more than 2.75 to 1.0. 
 Section 9.8. Interest Coverage Ratio. The Company shall not at
any time permit its Interest Coverage Ratio to be less than 4.00 to 1.0. 
  

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 Section 9.9. Liens. The Company shall not, nor shall it permit any Subsidiary
to, create, incur or permit to exist any Lien of any kind on any Property owned by the Company or such Subsidiary; provided, however, that the foregoing shall not apply to nor operate to prevent: 

(a) Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits,
social security obligations, taxes, assessments, statutory obligations or other similar charges, good faith cash deposits in connection with tenders, contracts or leases to which the Company or any Subsidiary is a party or other cash deposits
required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate
proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor; 

(b) mechanics’, workmen’s, materialmen’s, landlords’, carriers’, or other similar Liens arising
in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest; 

(c) judgment liens and judicial attachment liens not constituting an Event of Default under Section 10.1(h) hereof
and the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of liabilities of the Company and its Subsidiaries secured by a pledge of assets
permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of $50,000,000 at any one time outstanding; 

(d) Liens on Property of the Company or any of its Subsidiaries created solely for the purpose of securing purchase money
indebtedness or Capitalized Lease Obligations and, representing or incurred to finance, refinance or refund the purchase price of Property, provided that no such Lien shall extend to or cover other Property of the Company or such Subsidiary
other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the original purchase price of such Property as reduced by repayments of principal thereon; 

(e) leases or subleases granted to others in the ordinary course of business and any interest or title of a lessor under
any lease permitted by this Agreement; 
 (f) customary rights of set off, revocation, refund or chargeback under
deposit agreements or under the Uniform Commercial Code in favor of banks or other financial institution where the Company or any Subsidiary maintains deposits in the ordinary course of business; 

(g) Liens constituting encumbrances in the nature of zoning restrictions, condemnations, easements, encroachments,
covenants, rights of way, minor defects, irregularities and rights or restrictions of record on the title or use of real property, which do not materially detract from the value of such property or materially impair the use thereof in the business
of the Company or any Subsidiary; and 
  

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 (h) Liens other than those permitted by any of the foregoing
subsections (a) through (g) provided such Liens do not at any time secure obligations exceeding 10% of Net Worth as then determined and computed. 

Section 9.10. Acquisitions. The Company shall not, nor shall it permit any Subsidiary to, acquire all or any substantial part
of the assets or business of any other Person or division thereof; provided, however, that the foregoing shall not apply to nor operate to prevent acquisitions of all or substantially all of the assets or business of any other Person or
division thereof, or all or any part of the Voting Stock of or other equity interest in any Person (including as such an acquisition, any action to participate as a joint venturer in any joint venture or as a partner in any partnership), in each
case if and so long as (i) no Default or Event of Default exists or would exist after giving effect to such acquisition, (ii) after giving effect to such acquisition, the Borrowers would have unused Revolving Credit Commitments in excess
of $75,000,000, (iii) the Board of Directors or other governing body of such Person whose Property or Voting Stock or other equity interest is being so acquired has not opposed the terms of such acquisition and (iv) such acquisition
involves a line of business which is complementary to the lines of business in which the Company or the Subsidiary, as the case may be, making such acquisition is engaged on the Effective Date. 

Section 9.11. Mergers, Consolidations and Sales. The Company shall not be a party to any merger or consolidation unless the
Company is the surviving entity and no Default or Event of Default exists or would exist after giving effect to such merger or consolidation. The Company shall not, nor shall it permit any Subsidiary to, sell, transfer, lease or otherwise dispose of
all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; provided, however, that
so long as no Default or Event of Default exists this Section shall not apply to nor operate to prevent: 
 (a)
the sale or lease of inventory in the ordinary course of business; 
 (b) the sale, transfer, lease or other
disposition of Property of the Company and its Subsidiaries to one another in the ordinary course of business; 

(c) the merger of any Subsidiary with or into the Company (with the Company being the surviving entity) or another
existing or newly-formed Subsidiary; 
 (d) the dissolution of any Subsidiary pursuant to a plan of dissolution
requiring the conveyance or distribution of all or substantially all of the assets of such Subsidiary to the Company or to another existing or newly-formed Subsidiary; 

(e) the dissolution, sale or transfer of any Non-Borrower Subsidiary; 

(f) the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only
(and not for the purpose of any bulk sale or securitization transaction); 
  

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 (g) the sale, transfer or other disposition of any tangible personal
property that, in the reasonable business judgment of the Company or its Subsidiary, has become obsolete or worn out, and which is disposed of in the ordinary course of business; 

(h) sales by the Company or its Subsidiaries of assets categorized in the “Corporate” segment (or any successor
thereto) as identified in the Company’s consolidated financial statements filed with the SEC; and 
 (i) any
other sale, transfer, lease or disposition of Property of the Company or any Subsidiary not described in the foregoing clauses (a) through (h) (including any disposition of Property as part of a sale and leaseback transaction) aggregating
for the Company and its Subsidiaries not more than $320,000,000 during the term of this Agreement. 
 Section 9.12.
ERISA. The Company shall, and shall cause each Subsidiary to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result in the imposition
of a Lien against any of its Properties. The Company shall, and shall cause each Subsidiary to, promptly notify the Administrative Agent and each Lender of (i) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan
(other than a reportable event with respect to which the 30 day notice requirement is waived), (ii) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (iii) its
intention to terminate or withdraw from any Plan, and (iv) the occurrence of any event with respect to any Plan which would result in the incurrence by the Company or any Subsidiary of any material liability, fine or penalty, or any material
increase in the contingent liability of the Company or any Subsidiary with respect to any post-retirement Welfare Plan benefit. 

Section 9.13. Compliance with Laws. The Company shall, and shall cause each Subsidiary to, comply in all respects with the
requirements of all federal, state and local laws, rules, regulations, ordinances and orders applicable to or pertaining to their Properties or business operations, non-compliance with which could reasonably be expected to have a Material Adverse
Effect. 
 Section 9.14. Burdensome Contracts with Affiliates. The Company shall not, nor shall it permit any
Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates (other than transactions between the Company and a Wholly-Owned Subsidiary or between Wholly-Owned Subsidiaries) on terms and conditions which are
less favorable to the Company or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other. 

Section 9.15. No Changes in Fiscal Year. Neither the Company nor any Subsidiary shall change its fiscal year from its present
basis without the prior written consent of the Required Lenders, such consent not to be unreasonably withheld. 

Section 9.16. Change in the Nature of Business. The Company shall not, and shall not permit any Subsidiary to, engage in any
business or activity if as a result the general nature of the 
  

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business of the Company and its Subsidiaries taken as a whole would be changed in any material respect from the general nature of the business engaged in by the Company and its Subsidiaries on
the date of this Agreement. 
 Section 9.17. Assets of Borrowers. The Borrowers (other than the Company) shall at
all times maintain an aggregate asset value equal to or greater than the lesser of (a) 80% of the consolidated total assets of the Company and its Subsidiaries or (b) $2,000,000,000. 

Section 9.18. Compliance with OFAC Sanctions Programs. (a) The Company shall at all times comply with the requirements
of all OFAC Sanctions Programs applicable to the Company and shall cause each of its Subsidiaries to comply with the requirements of all OFAC Sanctions Programs applicable to such Subsidiary non-compliance with which could reasonably be expected to
have a Material Adverse Effect. 
 (b) The Company shall provide the Administrative Agent, the L/C Issuer, and the Lenders
promptly after request therefor any information regarding the Company, its Affiliates, and its Subsidiaries necessary for the Administrative Agent, the L/C Issuer, and the Lenders to comply with all applicable OFAC Sanctions Programs and other
similar laws, regulations and orders applicable to any of them; subject however, in the case of Affiliates, to the Company’s ability to provide information applicable to them. 

(c) If the Company obtains actual knowledge or receives any written notice that the Company, any Affiliate or any Subsidiary is named on
the then current OFAC SDN List (such occurrence, an “OFAC Event”), the Company shall promptly (i) give written notice to the Administrative Agent, the L/C Issuer, and the Lenders of such OFAC Event, and (ii) comply with
all applicable laws with respect to such OFAC Event (regardless of whether the party included on the OFAC SDN List is located within the jurisdiction of the United States of America), including the OFAC Sanctions Programs, and the Company hereby
authorizes and consents to the Administrative Agent, the L/C Issuer, and the Lenders taking any and all steps the Administrative Agent, the L/C Issuer, or the Lenders deem necessary, in their sole but reasonable discretion, to avoid violation of all
applicable laws with respect to any such OFAC Event, including the requirements of the OFAC Sanctions Programs (including the freezing and/or blocking of assets and reporting such action to OFAC). 

SECTION 10. EVENTS OF DEFAULT AND REMEDIES. 

Section 10.1. Events of Default. Any one or more of the following shall constitute an Event of Default: 

(a) default (i) in the payment when due of the principal amount of any Loan or Reimbursement Obligation or
(ii) for a period of three (3) Business Days in the payment when due of interest or fees or any part of any other Obligation payable by the Borrowers hereunder or under any other Loan Document; or 

(b) default in the observance or performance of the Borrowers’ obligation to deliver cash collateral for Letters of
Credit as required by Section 1.2(b) hereof; or 
  

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 (c) default for a period of one (1) Business Day in the observance or
performance of the Company’s obligations under Section 9.4 hereof; or 
 (d) default in the observance
or performance of any covenant set forth in Sections 9.6, 9.7, 9.8, 9.10, 9.11, 9.12 or 9.16 hereof; or 

(e) default in the observance or performance of any other provision hereof or of any other Loan Document which is not
remedied within 30 days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Company or (ii) written notice thereof is given to the Company by the Administrative Agent or any
Lender; or 
 (f) (i) any representation or warranty made by the Company herein or in any other Loan Document, or
in any statement or certificate furnished by it pursuant hereto or thereto, or in connection with any Loan or other extension of credit made hereunder, proves untrue in any material respect as of the date of the issuance or making thereof, or
(ii) any representation or warranty made by any Borrower (other than the Company) or Guarantor herein or in any other Loan Document, or in any statement or certificate furnished by it pursuant hereto or thereto, or in connection with any Loan
or other extension of credit made hereunder, proves untrue in any material respect as of the date of the issuance or making thereof and such untruthfulness could reasonably be expected to have a Material Adverse Effect; or 

(g) default shall occur under any evidence of Indebtedness for Borrowed Money issued, assumed or guaranteed by the Company
or any Subsidiary aggregating in excess of $35,000,000, or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the
maturity of any such Indebtedness for Borrowed Money (whether or not such maturity is in fact accelerated), or any such Indebtedness for Borrowed Money shall not be paid when due (whether by lapse of time, acceleration or otherwise); or 

(h) any judgment or judgments, writ or writs, or warrant or warrants of attachment, or any similar process or processes in
an aggregate amount in excess of $50,000,000 shall be entered or filed against the Company or any Subsidiary or against any of their Property which remains unvacated, unbonded, unstayed or unsatisfied for a period of 30 days; or 

(i) the Company or any member of its Controlled Group shall fail to pay when due an amount or amounts aggregating in
excess of $2,000,000 which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of $15,000,000
(collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the Company or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to 
  

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administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against the Company or any member of its Controlled Group to enforce Section 515 or
4219(c)(5) of ERISA and such proceeding shall not have been dismissed within 30 days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated;
or 
 (j) the occurrence of a Change in Control; or 

(k) any Borrower or any Material Subsidiary shall (i) have entered involuntarily against it an order for relief under
the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or
acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under
the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any action in furtherance of any matter described in parts (ii) through
(v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 10.1(l) hereof; or 

(l) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for any Borrower or any
Material Subsidiary or any substantial part of any of its Property, or a proceeding described in Section 10.1(k)(v) shall be instituted against any Borrower or any Material Subsidiary, and such appointment continues undischarged or such
proceeding continues undismissed or unstayed for a period of 60 days; or 
 (m) any Loan Document or any
material provision thereof, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any
Borrower or Guarantor contests in writing the validity or enforceability of any Loan Document or any material provision thereof; or any Borrower or Guarantor denies in writing that it has any or further liability or obligation under any Loan
Document, or purports in writing to revoke, terminate or rescind any Loan Document or any material provision thereof. 

Section 10.2. Non-Bankruptcy Defaults. When any Event of Default other than those described in subsections (k) or
(l) of Section 10.1 hereof has occurred and is continuing, the Administrative Agent shall, if so directed by the Required Lenders, by written notice to the Company: (a) terminate the remaining Revolving Credit Commitments and all
other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); (b) declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all
outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under 

 

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the Loan Documents without further demand, presentment, protest or notice of any kind; and (c) demand that the Borrowers immediately pay to the Administrative Agent, subject to
Section 10.4, the full amount then available for drawing under each or any Letter of Credit, and the Borrowers agree to immediately make such payment and acknowledges and agrees that the Lenders would not have an adequate remedy at law for
failure by the Borrowers to honor any such demand and that the Administrative Agent, for the benefit of the Lenders, shall have the right to require the Borrowers to specifically perform such undertaking whether or not any drawings or other demands
for payment have been made under any Letter of Credit. 
 Section 10.3. Bankruptcy Defaults. When any Event of
Default described in subsections (k) or (l) of Section 10.1 hereof has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents
without presentment, demand, protest or notice of any kind, the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate and the Borrowers shall immediately pay to the Administrative Agent,
subject to Section 10.4, the full amount then available for drawing under all outstanding Letters of Credit, the Borrowers acknowledging that the Lenders would not have an adequate remedy at law for failure by the Borrowers to honor any such
demand and that the Lenders, and the Administrative Agent on their behalf, shall have the right to require the Borrowers to specifically perform such undertaking whether or not any draws or other demands for payment have been made under any of the
Letters of Credit. 
 Section 10.4. Collateral for Undrawn Letters of Credit. (a) If the payment or prepayment
of the amount available for drawing under any or all outstanding Letters of Credit is required under Section 1.2(b), Section 10.2 or Section 10.3 above, the Borrowers shall forthwith pay the amount required to be so prepaid, to be
held by the Administrative Agent as provided in subsection (b) below. 
 (b) All amounts prepaid pursuant to
subsection (a) above shall be held by the Administrative Agent in a separate collateral account (such account, and the credit balances, properties and any investments from time to time held therein, and any substitutions for such account, any
certificate of deposit or other instrument evidencing any of the foregoing and all proceeds of and earnings on any of the foregoing being collectively called the “Account”) as security for, and for application by the Administrative
Agent (to the extent available) to, the reimbursement of any payment under any Letter of Credit then or thereafter made by the Administrative Agent. The Account shall be held in the name of and subject to the exclusive dominion and control of the
Administrative Agent for the benefit of the Administrative Agent, the L/C Issuer and the Lenders. If and when requested by the Company, the Administrative Agent shall invest funds held in the Account from time to time in direct obligations of, or
obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America with a remaining maturity of one year or less, provided that the Administrative Agent is irrevocably authorized to sell
investments held in the Account when and as required to make payments out of the Account for application to amounts due and owing from any Borrower to the Administrative Agent, the L/C Issuer or Lenders; provided, however, that if
(i) the Borrowers shall have made payment of all such obligations referred to in subsection (a) above and (ii) no Letters of Credit remain outstanding hereunder, then the Administrative Agent shall repay to the Company for the benefit
of the Borrowers any remaining amounts held in the Account. 
  

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 Section 10.5. Notice of Default. The Administrative Agent shall give notice to
the Company under Section 10.1(c) hereof promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof. 

Section 10.6. Expenses. The Borrowers agree to pay to the Administrative Agent, for the account of the Administrative Agent
and each Lender, and any other holder of any Obligation outstanding hereunder, all out-of-pocket expenses incurred or paid by the Administrative Agent and such Lender or any such holder, including attorneys’ fees and court costs, in connection
with any Default or Event of Default by any Borrower hereunder or in connection with the enforcement of any of the Loan Documents (including all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy
Code involving any Borrower as a debtor thereunder). 
 SECTION 11. CHANGE IN
CIRCUMSTANCES. 
 Section 11.1. Change of Law. Notwithstanding any other provisions of this Agreement
or any other Loan Document, if at any time after the date hereof any Lender shall determine in good faith that any change in applicable laws, treaties or regulations or in the interpretation thereof makes it unlawful for such Lender to make or
continue to maintain Eurocurrency Loans, such Lender shall promptly give notice thereof to the Administrative Agent (which shall in turn promptly notify the Company and the other Lenders) and such Lender’s obligations to make or maintain
Eurocurrency Loans under this Agreement shall terminate until it is no longer unlawful for such Lender to make or maintain Eurocurrency Loans. The Borrowers shall prepay on the last day of the Interest Period for any such affected Eurocurrency Loan,
or within such earlier period as required by law upon demand from the affected Lender, the outstanding principal amount of any such affected Eurocurrency Loans, together with all interest accrued thereon and all other amounts payable to the affected
Lender with respect thereto; provided, however, subject to all of the terms and conditions of this Agreement, the Company may then elect on behalf of the Borrowers to borrow the principal amount of the affected Eurocurrency Loans from such
Lender by means of Base Rate Loans from such Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender. 

Section 11.2. Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, Adjusted LIBOR. If on or prior to the
first day of any Interest Period for any Borrowing of Eurocurrency Loans: 
 (a) the Administrative Agent
determines that deposits in U.S. Dollars or the applicable Alternative Currency (in the applicable amounts) are not being offered to it in the eurocurrency interbank market for such Interest Period, or that by reason of circumstances affecting the
interbank eurocurrency market adequate and reasonable means do not exist for ascertaining the applicable Adjusted LIBOR, or 
  

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 (b) the Required Lenders determine and so advise the Administrative Agent
that (i) Adjusted LIBOR as determined by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of funding their Eurocurrency Loans or Loan for such Interest Period or (ii) that the making or funding of
Eurocurrency Loans becomes impracticable, 
 then the Administrative Agent shall forthwith give notice thereof to the Company and the Lenders,
whereupon until the Administrative Agent notifies the Company that the circumstances giving rise to such suspension no longer exist, the obligations of the Lenders to make Eurocurrency Loans in the currency so affected shall be suspended.

 Section 11.3. Increased Cost and Reduced Return. (a) If, after the date hereof, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender (or its Lending Office) with any request or directive (whether or not having the force of law but, if not having the force of law, compliance with which is customary in the relevant jurisdiction) of any such authority,
central bank or comparable agency issued after the date hereof: 
 (i) shall subject any Lender (or its Lending
Office) or the L/C Issuer to any tax, duty or other charge with respect to its Eurocurrency Loans, its Notes, its Letters of Credit, or its participation in any thereof, any Reimbursement Obligations owed to it or its obligation to make Eurocurrency
Loans, issue Letters of Credit, or to participate therein, or shall change the basis of taxation of payments to any Lender (or its Lending Office) or the L/C Issuer of the principal of or interest on its Eurocurrency Loans, Letters of Credit, or
participations therein or any other amounts due under this Agreement in respect of its Eurocurrency Loans, Letters of Credit, or participations therein, any Reimbursement Obligations owed to it, or its obligation to make Eurocurrency Loans, issue a
Letter of Credit, or acquire participations therein (except for changes in the rate of tax on the overall net income or profits of such Lender or its Lending Office or the L/C Issuer imposed by the jurisdiction in which such Lender or its lending
office is incorporated, or in which such Lender’s principal executive office or Lending Office is located); or 

(ii) shall impose, modify or deem applicable any reserve, special deposit or similar requirement (including, without
limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to any Eurocurrency Loans any such requirement included in an applicable Eurocurrency Reserve Percentage) against assets of,
deposits with or for the account of, or credit extended by, any Lender (or its Lending Office) or the L/C Issuer or shall impose on any Lender (or its Lending Office) or the L/C Issuer or on the interbank market any other condition affecting its
Eurocurrency Loans, its Notes, its Letters of Credit, or its participation in any thereof, any Reimbursement Obligation owed to it, or its obligation to make Eurocurrency Loans, to issue a Letter of Credit, or to participate therein; 

 

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 and the result of any of the foregoing is to increase the cost to such Lender (or its Lending Office) or the
L/C Issuer of making or maintaining any Eurocurrency Loan, issuing or maintaining a Letter of Credit, or participating therein, or to reduce the amount of any sum received or receivable by such Lender (or its Lending Office) or the L/C Issuer under
this Agreement or under any other Loan Document with respect thereto, by an amount deemed by such Lender or the L/C Issuer to be material, then, within 15 days after demand by such Lender or the L/C Issuer (with a copy to the Administrative Agent),
the Borrowers shall be obligated to pay to such Lender or the L/C Issuer such additional amount or amounts as will compensate such Lender or the L/C Issuer for such increased cost or reduction. In the event any law, rule, regulation or
interpretation described above is revoked, declared invalid or inapplicable or is otherwise rescinded, and as a result thereof a Lender or the L/C Issuer is determined to be entitled to a refund from the applicable authority for any amount or
amounts which were paid or reimbursed by the Borrowers to such Lender or the L/C Issuer hereunder, such Lender or the L/C Issuer shall refund such amount or amounts actually received by such Lender or the L/C Issuer to the Company on behalf of the
Borrowers without interest. 
 (b) If any Lender or the Administrative Agent shall have determined that the adoption, after the
date hereof, of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or in any other applicable capital rules heretofore adopted and issued by any governmental authority), or any change in the interpretation or
administration thereof after the date hereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its Lending Office) or the L/C Issuer or any
corporation controlling such Lender or L/C Issuer with any request or directive issued after the date hereof regarding capital adequacy (whether or not having the force of law but, if not having the force of law, compliance with which is customary
in the applicable jurisdiction) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender’s or L/C Issuer’s capital, or on the capital of any corporation
controlling such Lender or the L/C Issuer, as a consequence of its obligations hereunder to a level below that which such Lender or the L/C Issuer could have achieved but for such adoption, change or compliance (taking into consideration such
Lender’s or L/C Issuer’s policies with respect to capital adequacy) by an amount deemed by such Lender or the L/C Issuer to be material, then from time to time, within 15 days after demand by such Lender or the L/C Issuer (with a copy to
the Administrative Agent), the Borrowers shall pay to such Lender or the L/C Issuer such additional amount or amounts as will compensate such Lender or the L/C Issuer for such reduction. 

(c) Each Lender or the L/C Issuer that determines to seek compensation under this Section 11.3 shall notify the Company and the
Administrative Agent of the circumstances that entitle the Lender or the L/C Issuer to such compensation pursuant to this Section 11.3 and will designate a different Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Lender or the L/C Issuer, be otherwise disadvantageous to such Lender or the L/C Issuer. A certificate of any Lender claiming compensation under this Section 11.3 and setting
forth the additional amount or amounts to be paid to it hereunder shall be conclusive if reasonably determined. The Borrowers shall not be obligated to reimburse, compensate or indemnify any Lender or the L/C Issuer with respect to a claim or any
portion thereof to the extent such claim or portion thereof arose more than 120 days prior to the notice of such claim delivered pursuant to this Section 11.3(c). 
  

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 Section 11.4. Lending Offices. Each Lender may, at its option, elect to make its
Loans hereunder at the branch, office or affiliate specified on the appropriate signature page hereof (each a “Lending Office”) for each type of Loan available hereunder or at such other of its branches, offices or affiliates as it
may from time to time elect and designate in a written notice to the Company and the Administrative Agent. 

Section 11.5. Discretion of Lender as to Manner of Funding. Notwithstanding any other provision of this Agreement, each
Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder shall be made as if each Lender
had actually funded and maintained each Eurocurrency Loan through the purchase of deposits of U.S. Dollars in the eurocurrency interbank market having a maturity corresponding to such Loan’s Interest Period and bearing an interest rate equal to
Adjusted LIBOR for such Interest Period. 
 Section 11.6. Replacement of Lenders. If the Borrowers are required
pursuant to Section 11.3 or Section 14.1 hereof to make any additional payment to any Lender or if any Lender’s obligation to make or continue, or to convert Base Rate Loans into, Eurocurrency Loans shall be suspended pursuant to
Section 11.1 or Section 11.2 hereof, or if any Lender does not timely agree or consent, in writing, to any amendment or consent hereto or waiver of any provision hereof which is timely agreed or consented to by the Required Lenders or any
Lender becomes a Defaulting Lender (any such Lender being hereinafter referred to as a “Replaced Lender”), then in such case, the Company may, upon at least five (5) Business Days’ notice to the Administrative Agent and to
such Replaced Lender, designate a replacement lender (a “Replacement Lender”) acceptable to the Administrative Agent, the L/C Issuer and the Swing Line Lender in their reasonable discretion, to which such Replaced Lender shall,
subject to its receipt (unless a later date for the remittance thereof shall be agreed upon by the Company and the Replaced Lender) of all amounts owed to such Replaced Lender under Section 11.3 or Section 14.1, assign all (but not less
than all) of its rights, obligations, Loans and Revolving Credit Commitment hereunder; provided, that all amounts (including amounts owed pursuant to Section 3.6 hereof) owed by the Borrowers to such Replaced Lender hereunder (except
liabilities which by the terms hereof survive the payment in full of the Loans and termination of this Agreement) shall be paid in full as of the date of such assignment. 

SECTION 12. THE ADMINISTRATIVE AGENT. 

Section 12.1. Appointment and Authorization of Administrative Agent. Each Lender hereby appoints Bank of Montreal as the
Administrative Agent under the Loan Documents and hereby authorizes the Administrative Agent to take such action as the Administrative Agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably incidental thereto. 
  

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 Section 12.2. Administrative Agent and its Affiliates. The Administrative Agent
shall have the same rights and powers under this Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent, and the Administrative Agent and its
affiliates may accept deposits from, lend money to, and generally engage in any kind of business with any Borrower or any Affiliate of any Borrower as if it were not the Administrative Agent under the Loan Documents. The term
“Lender” as used herein and in all other Loan Documents, unless the context otherwise clearly requires, includes the Administrative Agent in its individual capacity as a Lender. References in Section 1 hereof to the
Administrative Agent’s Loans, or to the amount owing to the Administrative Agent for which an interest rate is being determined, refer to the Administrative Agent in its individual capacity as a Lender. 

Section 12.3. Action by Administrative Agent. If the Administrative Agent receives from the Company a written notice of an
Event of Default pursuant to Section 9.4(f) hereof, the Administrative Agent shall promptly give each of the Lenders written notice thereof. The Lenders and the L/C Issuer expressly agree that the Administrative Agent is not acting as a
fiduciary of the Lenders or the L/C Issuer in respect of the Loan Documents, the Borrowers or otherwise, and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Administrative Agent or any of the
Lenders except as expressly set forth herein. The obligations of the Administrative Agent under the Loan Documents are only those expressly set forth therein. Without limiting the generality of the foregoing, the Administrative Agent shall not be
required to take any action hereunder with respect to any Default or Event of Default, except as expressly provided in Sections 10.2 and 10.5 hereof. In no event, however, shall the Administrative Agent be required to take any action in
violation of applicable law or of any provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it shall be first indemnified to
its reasonable satisfaction by the Lenders against any and all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall be entitled to assume that no Default
or Event of Default exists unless notified in writing to the contrary by a Lender or the Company. In all cases in which this Agreement and the other Loan Documents do not require the Administrative Agent to take certain actions, the Administrative
Agent shall be fully justified in using its discretion in failing to take or in taking any action hereunder and thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the
Loan Documents, shall be binding on all the Lenders and the holders of the Obligations. 
 Section 12.4. Consultation
with Experts. The Administrative Agent may consult with legal counsel, independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the
advice of such counsel, accountants or experts. 
 Section 12.5. Liability of Administrative Agent; Credit Decision.
Neither the Administrative Agent nor any of its directors, officers, agents, or employees shall be liable for any action taken or not taken by it in connection with the Loan Documents (i) with the consent or at the request of the Required
Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the Administrative Agent nor any of its directors, officers, agents or 

 

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employees shall be responsible for or have any duty to ascertain, inquire into or verify (i) any statement, warranty or representation made in connection with this Agreement, any other Loan
Document or any Credit Event; (ii) the performance or observance of any of the covenants or agreements of any Borrower or any Subsidiary contained herein or in any other Loan Document; (iii) the satisfaction of any condition specified in
Section 8 hereof, except receipt of items required to be delivered to the Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectibility hereof or of any other Loan
Document or of any other documents or writing furnished in connection with any Loan Document; and the Administrative Agent makes no representation of any kind or character with respect to any such matter mentioned in this sentence. The
Administrative Agent may execute any of its duties under any of the Loan Documents by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, the L/C Issuer, the Borrowers, or any other Person for the default
or misconduct of any such agents or attorneys-in-fact selected with reasonable care. The Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent, certificate, other document or statement (whether written or
oral) believed by it to be genuine or to be sent by the proper party or parties. In particular and without limiting any of the foregoing, the Administrative Agent shall have no responsibility for confirming the accuracy of any Compliance Certificate
or other document or instrument received by it under the Loan Documents. The Administrative Agent may treat the payee of any Obligation as the holder thereof until written notice of transfer shall have been filed with the Administrative Agent signed
by such payee in form satisfactory to the Administrative Agent. Each Lender and the L/C Issuer acknowledges that it has independently and without reliance on the Administrative Agent or any other Lender or the L/C Issuer, and based upon such
information, investigations and inquiries as it deems appropriate, made its own credit analysis and decision to extend credit to the Borrowers in the manner set forth in the Loan Documents. It shall be the responsibility of each Lender and the L/C
Issuer to keep itself informed as to the creditworthiness of the Borrowers and the Administrative Agent shall have no liability to any Lender or the L/C Issuer with respect thereto. 

Section 12.6. Indemnity. The Lenders shall ratably, in accordance with their respective Percentages, indemnify and hold the
Administrative Agent, and its directors, officers, employees, agents and representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions
contemplated thereby, regardless of when asserted or arising, except to the extent they are promptly reimbursed for the same by the Borrowers and except to the extent that any event giving rise to a claim was caused by the gross negligence or
willful misconduct of the party seeking to be indemnified. The obligations of the Lenders under this Section 12.6 shall survive termination of this Agreement. The Administrative Agent shall be entitled to offset amounts received for the account
of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrative Agent, the L/C Issuer, or Swing Line Lender hereunder (whether as fundings of participations, indemnities or otherwise, and with any amounts offset
for the benefit of the Administrative Agent to be held by it for its own account and with any amounts offset for the benefit of the L/C Issuer or Swing Line Lender to be remitted by the Administrative Agent to of for the account of such L/C Issuer
or Swing Line Lender, as applicable), but shall not be entitled to offset against amounts owed to the Administrative Agent, any L/C Issuer or Swing Line Lender by any Lender arising outside of this Agreement and the other Loan Documents. 

 

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 Section 12.7. Resignation of Administrative Agent and Successor Administrative
Agent. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Company. Upon any such notice of resignation of the Administrative Agent, the Required Lenders shall have the right to appoint a
successor Administrative Agent subject, so long as no Event of Default shall have occurred and be continuing, to the consent of the Company. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, which shall be
any Lender hereunder or any commercial bank organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $200,000,000. The retiring Administrative Agent shall continue as
Administrative Agent hereunder until a successor Administrative Agent has accepted appointment as Administrative Agent. Upon the acceptance of its appointment as the Administrative Agent hereunder, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring or removed Administrative Agent under the Loan Documents, and the retiring Administrative Agent shall be discharged from its duties and obligations thereunder. After any
retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 12 and all protective provisions of the other Loan Documents shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent. 
 Section 12.8. L/C Issuer and Swing Line Lender. The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the Swing Line Lender shall act on behalf of the Lenders with respect to the Swing Loans made
hereunder. The L/C Issuer and the Swing Line Lender shall each have all of the benefits and immunities (i) provided to the Administrative Agent in this Section 12 with respect to any acts taken or omissions suffered by the
L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the Applications pertaining to such Letters of Credit or by the Swing Line Lender in connection with Swing Loans made or to be made hereunder as
fully as if the term “Administrative Agent”, as used in this Section 12, included the L/C Issuer and Swing Line Lender with respect to such acts or omissions and (ii) as additionally provided in this Agreement with respect
to such L/C Issuer. 
 Section 12.9. Designation of Additional Agents. The Administrative Agent shall have the
continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as “syndication agents,” “documentation agents,” “arrangers,” or other
designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof. 

 

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 SECTION 13.A. JOINT AND SEVERAL
OBLIGORS. 
 Section 13.1.A. Joint and Several Obligors. To induce the Lenders and the L/C Issuer to
provide the credits described herein and in consideration of benefits expected to accrue to the Borrowers by reason of the Revolving Credit Commitments and for other good and valuable consideration, receipt of which is hereby acknowledged, each
Borrower hereby unconditionally and irrevocably confirms jointly and severally to the Administrative Agent, the Lenders and the L/C Issuer, the due and punctual payment of all present and future Obligations, including, but not limited to, the due
and punctual payment of principal of and interest on the Loans, Notes, the Reimbursement Obligations, and the due and punctual payment of all other Obligations now or hereafter owed by any Borrower under the Loan Documents as and when the same shall
become due and payable, whether at stated maturity, by acceleration, or otherwise, according to the terms hereof and thereof (including all interest, costs, fees, and charges after the entry of an order for relief against any Borrower or such other
obligor in a case under the United States Bankruptcy Code or any similar proceeding, whether or not such interest, costs, fees and charges would be an allowed claim against such Borrower or any such obligor in any such proceeding). In case of
failure by any Borrower punctually to pay any Obligations, each other Borrower hereby unconditionally agrees to make such payment or to cause such payment to be made punctually as and when the same shall become due and payable, whether at stated
maturity, by acceleration, or otherwise. 
 Section 13.2.A. Unconditional. The obligations of each Borrower under
this Section 13.A shall be unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged, or otherwise affected by: 

(a) any extension, renewal, settlement, compromise, waiver, or release in respect of any obligation of any Borrower or of
any other guarantor under this Agreement or any other Loan Document or by operation of law or otherwise; 
 (b)
any modification or amendment of or supplement to this Agreement or any other Loan Document; 
 (c) any change in
the corporate existence, structure, or ownership of, or any insolvency, bankruptcy, reorganization, or other similar proceeding affecting, any Borrower or any of their respective assets, or any resulting release or discharge of any obligation of any
Borrower contained in any Loan Document; 
 (d) the existence of any claim, set-off, or other rights which any
Borrower may have at any time against the Administrative Agent, any Lender, or any other Person, whether or not arising in connection herewith; 

(e) any failure to assert, or any assertion of, any claim or demand or any exercise of, or failure to exercise, any rights
or remedies against any Borrower or any other Person or Property; 
  

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 (f) any application of any sums by whomsoever paid or howsoever realized to
any obligation of any Borrower, regardless of what obligations of the Borrowers remain unpaid; 
 (g) any
invalidity or unenforceability relating to or against any Borrower for any reason of this Agreement or of any other Loan Document or any provision of applicable law or regulation purporting to prohibit the payment by any Borrower of the principal of
or interest on any Loan or any Reimbursement Obligation or any other amount payable under the Loan Documents; or 

(h) any other act or omission to act or delay of any kind by the Administrative Agent, any Lender, or any other Person or
any other circumstance whatsoever that might, but for the provisions of this paragraph, constitute a legal or equitable discharge of the obligations of any Borrower under this Section 13.A. 

Section 13.3.A. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances. Except as provided in
Section 5.3, each Borrower’s obligations under this Section 13.A. shall remain in full force and effect until the Revolving Credit Commitments are terminated, all Letters of Credit have expired, and the principal of and interest on
the Loans, Notes and all other amounts payable by the Borrowers under this Agreement and all other Loan Documents shall have been paid in full. If at any time any payment of the principal of or interest on any Note or any Reimbursement Obligation or
any other amount payable by any Borrower under the Loan Documents is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy, or reorganization of any Borrower, or otherwise, each Borrower’s obligations under this
Section 13.A with respect to such payment shall be reinstated at such time as though such payment had become due but had not been made at such time. 

Section 13.4.A. Subrogation. Each Borrower agrees it will not exercise any rights which it may acquire by way of subrogation
by any payment made hereunder, or otherwise, until all the Obligations shall have been paid in full subsequent to the termination of all the Revolving Credit Commitments and expiration of all Letters of Credit. If any amount shall be paid to a
Borrower on account of such subrogation rights at any time prior to the later of (x) the payment in full of the Obligations and all other amounts payable by any Borrower hereunder and the other Loan Documents and (y) the termination of the
Revolving Credit Commitments and expiration of all Letters of Credit, such amount shall be held in trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the Administrative Agent for the benefit of the
Lenders or be credited and applied upon the Obligations, whether matured or unmatured, in accordance with the terms of this Agreement. 

Section 13.5.A. Waivers. Each Borrower irrevocably waives acceptance hereof, presentment, demand, protest, and any notice not
provided for herein, as well as any requirement that at any time any action be taken by the Administrative Agent, any Lender, or any other Person against any Borrower, any guarantor, or any other Person. 

Section 13.6.A. Limit on Recovery. Notwithstanding any other provision hereof, the right of recovery against each Borrower
under this Section 13.A. shall not exceed $1.00 less than the lowest amount which would render such Borrower’s obligations under this Section 13.A. void or voidable under applicable law, including, without limitation, fraudulent
conveyance law. 
  

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 Section 13.7.A. Stay of Acceleration. If acceleration of the time for payment of
any amount payable by any Borrower under this Agreement or any other Loan Document is stayed upon the insolvency, bankruptcy or reorganization of such Borrower, all such amounts otherwise subject to acceleration under the terms of this Agreement or
the other Loan Documents shall nonetheless be payable by the other Borrowers hereunder forthwith on demand by the Administrative Agent made at the request of the Required Lenders. 

Section 13.8.A. Benefit to each Borrower. All of the Borrowers are engaged in related businesses and integrated to such an
extent that the financial strength and flexibility of each Borrower has a direct impact on the success of each other Borrower. Each Borrower will derive substantial direct and indirect benefit from the extension of credit hereunder. 

Section 13.9.A. Borrower Covenants. Each Borrower shall take such action as the Company is required by this Agreement to
cause such Borrower to take, and shall refrain from taking such action as the Company is required by this Agreement to prohibit such Borrower from taking. 

SECTION 13.B. THE GUARANTIES. 

Section 13.1.B. The Guaranties. To induce the Lenders and the L/C Issuer to provide the credits described herein and in
consideration of benefits expected to accrue to the Borrowers by reason of the Revolving Credit Commitments and for other good and valuable consideration, receipt of which is hereby acknowledged, each Guarantor hereby unconditionally and irrevocably
guarantees jointly and severally to the Administrative Agent, the Lenders and the L/C Issuer, the due and punctual payment of all present and future Obligations, including, but not limited to, the due and punctual payment of principal of and
interest on the Loans, Notes, the Reimbursement Obligations, and the due and punctual payment of all other Obligations now or hereafter owed by any Borrower under the Loan Documents as and when the same shall become due and payable, without set-off
or counterclaim, whether at stated maturity, by acceleration, or otherwise, according to the terms hereof and thereof (including all interest, costs, fees, and charges after the entry of an order for relief against any Borrower or such other obligor
in a case under the United States Bankruptcy Code or any similar proceeding, whether or not such interest, costs, fees and charges would be an allowed claim against such Borrower or any such obligor in any such proceeding). In case of failure by any
Borrower punctually to pay any Obligations guaranteed hereby, each Guarantor hereby unconditionally agrees to make such payment or to cause such payment to be made punctually as and when the same shall become due and payable, whether at stated
maturity, by acceleration, or otherwise, and as if such payment were made by the Borrower. 
 Section 13.2.B. Guarantee
Unconditional. The obligations of each Guarantor under this Section 13.B shall be unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged, or otherwise affected by: 

(a) any extension, renewal, settlement, compromise, waiver, or release in respect of any obligation of any Borrower or of
any other guarantor under this Agreement or any other Loan Document or by operation of law or otherwise; 
  

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 (b) any modification or amendment of or supplement to this Agreement or any
other Loan Document; 
 (c) any change in the corporate existence, structure, or ownership of, or any insolvency,
bankruptcy, reorganization, or other similar proceeding affecting, any Borrower, any other guarantor, or any of their respective assets, or any resulting release or discharge of any obligation of any Borrower or of any other guarantor contained in
any Loan Document; 
 (d) the existence of any claim, set-off, or other rights which any Borrower or any other
guarantor may have at any time against the Administrative Agent, any Lender, or any other Person, whether or not arising in connection herewith; 

(e) any failure to assert, or any assertion of, any claim or demand or any exercise of, or failure to exercise, any rights
or remedies against any Borrower, any other guarantor, or any other Person or Property; 
 (f) any application of
any sums by whomsoever paid or howsoever realized to any obligation of any Borrower, regardless of what obligations of the Borrowers remain unpaid; 

(g) any invalidity or unenforceability relating to or against any Borrower or any other guarantor for any reason of this
Agreement or of any other Loan Document or any provision of applicable law or regulation purporting to prohibit the payment by any Borrower or any other guarantor of the principal of or interest on any Loan or any Reimbursement Obligation or any
other amount payable under the Loan Documents; or 
 (h) any other act or omission to act or delay of any kind by
the Administrative Agent, any Lender, or any other Person or any other circumstance whatsoever that might, but for the provisions of this paragraph, constitute a legal or equitable discharge of the obligations of any Guarantor under this
Section 13.B. 
 Section 13.3.B. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances.
Except as provided in Section 5.3, each Guarantor’s obligations under this Section 13.B. shall remain in full force and effect until the Revolving Credit Commitments are terminated, all Letters of Credit have expired, and the
principal of and interest on the Loans, Notes and all other amounts payable by the Borrowers and the Guarantors under this Agreement and all other Loan Documents shall have been paid in full. If at any time any payment of the principal of or
interest on any Note or any Reimbursement Obligation or any other amount payable by any Borrower or any Guarantor under the Loan Documents is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy, or reorganization of
any Borrower or of any guarantor, or otherwise, each Guarantor’s obligations under this Section 13.B with respect to such payment shall be reinstated at such time as though such payment had become due but had not been made at such time.

  

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 Section 13.4.B. Subrogation. Each Guarantor agrees it will not exercise any
rights which it may acquire by way of subrogation by any payment made hereunder, or otherwise, until all the Obligations shall have been paid in full subsequent to the termination of all the Revolving Credit Commitments and expiration of all Letters
of Credit. If any amount shall be paid to a Guarantor on account of such subrogation rights at any time prior to the later of (x) the payment in full of the Obligations and all other amounts payable by any Borrower hereunder and the other Loan
Documents and (y) the termination of the Revolving Credit Commitments and expiration of all Letters of Credit, such amount shall be held in trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent for the benefit of the Lenders or be credited and applied upon the Obligations, whether matured or unmatured, in accordance with the terms of this Agreement. 

Section 13.5.B. Waivers. Each Guarantor irrevocably waives acceptance hereof, presentment, demand, protest, and any notice
not provided for herein, as well as any requirement that at any time any action be taken by the Administrative Agent, any Lender, or any other Person against any Borrower, another guarantor, or any other Person. 

Section 13.6.B. Limit on Recovery. Notwithstanding any other provision hereof, the right of recovery against each Guarantor
under this Section 13.B. shall not exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations under this Section 13.B. void or voidable under applicable law, including, without limitation, fraudulent
conveyance law. 
 Section 13.7.B Stay of Acceleration. If acceleration of the time for payment of any amount
payable by any Borrower under this Agreement or any other Loan Document is stayed upon the insolvency, bankruptcy or reorganization of such Borrower, all such amounts otherwise subject to acceleration under the terms of this Agreement or the other
Loan Documents shall nonetheless be payable by the Guarantors hereunder forthwith on demand by the Administrative Agent made at the request of the Required Lenders. 

Section 13.8.B Benefit to Guarantors. All of the Guarantors are engaged in related businesses and integrated to such an
extent that the financial strength and flexibility of each Guarantor has a direct impact on the success of each other Guarantor. Each Guarantor will derive substantial direct and indirect benefit from the extension of credit hereunder. 

Section 13.9.B Guarantor Covenants. Each Guarantor shall take such action as the Company is required by this Agreement to
cause such Guarantor to take, and shall refrain from taking such action as the Company is required by this Agreement to prohibit such Guarantor from taking 

SECTION 14. MISCELLANEOUS. 

Section 14.1. Withholding Taxes. (a) Payments Free of Withholding. Except as otherwise required by law and subject
to Section 14.1(b) hereof, each payment by a Borrower 
  

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under this Agreement or the other Loan Documents shall be made without withholding for or on account of any present or future taxes (other than overall net income taxes on the recipient) imposed
by or within the jurisdiction in which such Borrower is domiciled, any jurisdiction from which such Borrower makes any payment, or (in each case) any political subdivision or taxing authority thereof or therein. If any such withholding is so
required, such Borrower shall make the withholding, pay the amount withheld to the appropriate governmental authority before penalties attach thereto or interest accrues thereon and forthwith pay such additional amount as may be necessary to ensure
that the net amount actually received by each Lender, the L/C Issuer and the Administrative Agent free and clear of such taxes (including such taxes on such additional amount) is equal to the amount which that Lender, the L/C Issuer or the
Administrative Agent (as the case may be) would have received had such withholding not been made. If the Administrative Agent, the L/C Issuer or any Lender pays any amount in respect of any such taxes, penalties or interest, the Borrowers shall
reimburse the Administrative Agent, the L/C Issuer or that Lender for that payment on demand in the currency in which such payment was made. If a Borrower pays any such taxes, penalties or interest, it shall deliver official tax receipts evidencing
that payment or certified copies thereof to the Lender, the L/C Issuer or Administrative Agent on whose account such withholding was made (with a copy to the Administrative Agent if not the recipient of the original) on or before the thirtieth day
after payment. 
 (b) U.S. Withholding Tax Exemptions. Each Lender or the L/C Issuer that is not a United States person
(as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Company and the Administrative Agent on or before the earlier of the initial Credit Event and 30 days after the date hereof, two duly completed and signed copies
of either Form W-8BEN (or substantially similar substitute forms) or Form W-8ECI (or substantially similar substitute forms) of the United States Internal Revenue Service certifying such Lender’s or the L/C Issuer’s entitlement to a
complete exemption from United States withholding tax with respect to payments to be made under this Agreement. Thereafter and from time to time, each Lender and the L/C Issuer shall submit to the Company and the Administrative Agent such additional
duly completed and signed copies of one or the other of such Forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may be (i) requested by the Company in a written notice,
directly or through the Administrative Agent, to such Lender and (ii) required under then-current United States law or regulations to avoid or reduce United States withholding taxes on payments in respect of all amounts to be received by such
Lender, including fees, pursuant to the Loan Documents or the Loans. All forms or amendments described in the preceding sentence shall certify that such Lender is entitled to receive payments under this Agreement without deduction or withholding of
any United States federal income taxes, unless an event (including without limitation any change in treaty, law or regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms
inapplicable or which would prevent such Lender from duly completing and delivering any such form or amendment with respect to it and such Lender advises the Company and the Administrative Agent that it is not capable of receiving payments without
any deduction or withholding of United States federal income tax. For any period during which a Lender that is not a United States Person has failed to provide the Company with an appropriate form pursuant to this Section 14.1(b) (unless such
failure is due to a change in treaty, law or regulation, or any change in the interpretation or administration thereof by any 
  

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governmental authority, occurring subsequent to the date on which a form originally was required to be provided), such Lender shall not be entitled to indemnification under this Section 14.1
with respect to taxes imposed by the United States. 
 (c) Inability of Lender to Submit Forms. If any Lender or the L/C
Issuer determines, as a result of any change in applicable law, regulation or treaty, or in any official application or interpretation thereof, that it is unable to submit to the Company or Administrative Agent any form or certificate that such
Lender or the L/C Issuer is obligated to submit pursuant to subsection (b) of this Section 14.1 or that such Lender or the L/C Issuer is required to withdraw or cancel any such form or certificate previously submitted or any such form or
certificate otherwise becomes ineffective or inaccurate, such Lender shall promptly notify the Company and Administrative Agent of such fact and the Lender or the L/C Issuer shall to that extent not be obligated to provide any such form or
certificate and will be entitled to withdraw or cancel any affected form or certificate, as applicable. 
 (d) Tax
Refunds. If the Administrative Agent, the L/C Issuer or a Lender determines that it has received a refund of any taxes as to which it has been indemnified by a Borrower or with respect to which a Borrower has paid additional amounts pursuant to
this Section 14.1, it shall pay over such refund to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 14.1 with respect to the taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent, the L/C Issuer or such Lender and without interest (other than any interest paid by the relevant governmental authority with respect to such refund); provided that such
Borrower, upon the request of the Administrative Agent, the L/C Issuer or such Lender, agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other charges imposed by the relevant governmental authority) to the
Administrative Agent, the L/C Issuer or such Lender in the event the Administrative Agent, the L/C Issuer or such Lender is required to pay such refund to such governmental authority. 

Section 14.2. No Waiver of Rights. No delay or failure on the part of the Administrative Agent, the L/C Issuer or any Lender
or on the part of any holder or holders of any of the Obligations in the exercise of any power or right under any Loan Document shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or partial exercise
thereof preclude any other or further exercise of any other power or right. The rights and remedies hereunder of the Administrative Agent, the L/C Issuer, the Lenders and any holder or holders of any of the Obligations are cumulative to, and not
exclusive of, any rights or remedies which any of them would otherwise have. 
 Section 14.3. Non-Business Day. If
any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable. In the case of any payment of
principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled
date for the payment of interest. 
  

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 Section 14.4. Documentary Taxes. The Borrowers agree that they will pay any
documentary, stamp or similar taxes payable in respect of any Loan Document, including interest and penalties, in the event any such taxes are assessed, irrespective of when such assessment is made and whether or not any credit is then in use or
available hereunder. 
 Section 14.5. Survival of Representations. All representations and warranties made herein or
in any other Loan Documents or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which
they were made as long as any credit is in use or available hereunder. 
 Section 14.6. Survival of Indemnities. All
indemnities and all other provisions relative to reimbursement to the Lenders and the L/C Issuer of amounts sufficient to protect the yield of the Lenders and the L/C Issuer with respect to the Loans and Letters of Credit, including, but not limited
to, Section 3.6, Section 11.3 and Section 14.15 hereof, shall survive the termination of this Agreement and the other Loan Documents and the payment of the Loans and all other Obligations. 

Section 14.7. Sharing of Set-Off. Each Lender agrees with each other Lender which is a party hereto that if such Lender shall
receive and retain any payment, whether by set-off or application of deposit balances or otherwise (“Set-off”), on any of the Loans or Reimbursement Obligations in excess of its ratable share of payments on all such Obligations then
outstanding to the Lenders, then such Lender shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders such amount of the Loans or Reimbursement Obligations, or participations therein, held by each such
other Lenders (or interest therein) as shall be necessary to cause such Lender to share such excess payment ratably with all the other Lenders; provided, however, that if any such purchase is made by any Lender, and if such excess payment or
part thereof is thereafter recovered from such purchasing Lender, the related purchases from the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest.
For purposes of this Section 14.7, amounts owed to or recovered by, the L/C Issuer in connection with Reimbursement Obligations in which Lenders have been required to fund their participation shall be treated as amounts owed to or recovered by
the L/C Issuer as a Lender hereunder. 
  

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 Section 14.8. Notices. Except as otherwise specified herein, all notices under
the Loan Documents shall be in writing (including telecopy or other electronic communication) and shall be given to a party hereunder at its address or telecopier number set forth below or such other address or telecopier number as such party may
hereafter specify by notice to the Administrative Agent and the Borrowers, given by courier, or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan Documents to the Lenders
and the Administrative Agent shall be addressed to their respective addresses, telecopier or telephone numbers set forth in their Administrative Questionnaire, and to any Borrower shall be addressed as follows: 

Arthur J. Gallagher & Co. 

The Gallagher Centre 

Two Pierce Place 

Itasca, Illinois 60143-3141 

Attention: General Counsel 

Telephone: (630) 285-3457 

Telecopy: (630) 285-3483 

with a copy to: 

Arthur J. Gallagher & Co. 

The Gallagher Centre 

Two Pierce Place 

Itasca, Illinois 60143-3141 

Attention: Treasurer 

Telephone: (630) 285-3536 

Telecopy: (630) 285-4272 

Each such notice, request or other communication shall be effective (i) if given by telecopier, when such telecopy is transmitted to
the telecopier number specified in this Section 14.8 or in the relevant Administrative Questionnaire and a confirmation of receipt of such telecopy has been received by the sender, (ii) if given by courier, when delivered or (iii) if
given by any other means, when delivered at the addresses specified in this Section 14.8 or in the relevant Administrative Questionnaire; provided that any notice given pursuant to Section 1 hereof shall be effective only upon
receipt. 
 Section 14.9. Counterparts. This Agreement may be executed in any number of counterpart signature pages,
and by the different parties on different counterparts, each of which when executed shall be deemed an original but all such counterparts taken together shall constitute one and the same instrument. This Agreement will be deemed executed by the
parties hereto when each has signed it and delivered its executed signature page to the Administrative Agent by facsimile transmission, electronic transmission or physical delivery. 

Section 14.10. Successors and Assigns. This Agreement shall be binding upon the Borrowers and their respective successors and
assigns, and shall inure to the benefit of each of the Administrative Agent, L/C Issuer and the Lenders and the benefit of their respective successors and assigns, including any subsequent holder of any Obligation. Except as otherwise

  

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provided herein in connection with any transaction not prohibited by Section 9.11 hereof, neither any Borrower nor any Guarantor may assign any of its rights or obligations under any Loan
Document without the written consent of all of the Lenders. 
 Section 14.11. Participants. Each Lender shall have
the right at its own cost to grant participations (to be evidenced by one or more agreements or certificates of participation) in the Loans made and Reimbursement Obligations and/or Revolving Credit Commitment and/or participations in Swing Loans
held by such Lender at any time and from time to time to one or more Persons; provided that no such participation shall relieve any Lender of any of its obligations under this Agreement, and provided further that no such participant
shall have any rights under this Agreement except as provided in this Section 14.11, and the Administrative Agent shall have no obligation or responsibility to such participant. Any party to which such a participation has been granted shall
have the benefits of Section 3.6 and Section 11.3 hereof but shall not be entitled to receive any greater payment under either such Section than the Lender granting such participation would have been entitled to receive with respect
to the rights transferred. Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Borrowers hereunder
including, without limitation, the right to approve any amendment or modification or waiver of any provision of this Agreement; provided that such participation agreement may provide that such Lender will not agree to any modification,
amendment or waiver of this Agreement that would (A) increase the Revolving Credit Commitment of such Lender if such increase would also increase the participant’s obligations, (B) forgive any amount of or postpone the date for
payment of any principal of or interest on any Loan or Reimbursement Obligation or of any fee payable hereunder in which such participant has an interest or (C) reduce the stated rate at which interest or fees accrue or other amounts payable
hereunder in which such participant has an interest. The Borrowers authorize each Lender to disclose to any participant or prospective participant under this Section 14.11 any financial or other information pertaining to the Borrowers, subject
to Section 14.21 hereof. 
 Section 14.12. Assignments. (a) Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions: 
 (i) Minimum Amounts. (A) In the case of
an assignment of the entire remaining amount of the assigning Lender’s Revolving Credit Commitment and the Loans and participation interest in L/C Obligations at the time owing to it or in the case of an assignment to a Lender, an Affiliate of
a Lender or an Approved Fund, no minimum amount need be assigned; and (B) in any case not described in subsection (a)(i)(A) of this Section, the aggregate amount of the Revolving Credit Commitment (which for this purpose includes Loans and
participation interest in L/C Obligations outstanding thereunder) or, if the Revolving Credit Commitment is not then in effect, the principal outstanding balance of the Loans and participation interest in L/C Obligations of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if “Effective Date” is specified in the Assignment and

  

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Acceptance, as of the Effective Date) shall not be less than $5,000,000 in the case of any assignment in respect of the Revolving Credit, unless each of the Administrative Agent and, so long as
no Event of Default has occurred and is continuing, the Company otherwise consents (each such consent not to be unreasonably withheld or delayed); 

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Revolving Credit Commitment assigned. 

(iii) Required Consents. No consent shall be required for any assignment except to the extent required by
Section 14.12(a)(i)(B) and, in addition: 
 (a) the consent of the Company (such consent not to be
unreasonably withheld) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that
the Company shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; 

(b) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required
for assignments if such assignment is to a Person that is not a Lender with a Commitment in respect of such facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; 

(c) the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and 

(d) the consent of the Swing Line Lender (such consent not to be unreasonably withheld or delayed) shall be required for
any assignment that increases the obligation of the assignee to participate in exposure under one or more Swing Loans (whether or not then outstanding). 

(iv) Assignment and Acceptance. The parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 

(v) No Assignment to Company or Affiliates. No such assignment shall be made to the Company or any of its
Affiliates or Subsidiaries. 
  

 -68- 

 (vi) No Assignment to Natural Persons. No such assignment shall be
made to a natural person. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 14.12(b) hereof,
from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 14.6 and 14.15 with respect to facts
and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with Section 14.11 hereof. 
 (b)
Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at one of its offices in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register
shall be conclusive, and the Borrowers, the Administrative Agent, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

(c) Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any such pledge or grant to a Federal Reserve Bank, and this Section shall not apply to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall
release a Lender from any of its obligations hereunder or substitute any such pledgee or secured party for such Lender as a party hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve
Bank) to further transfer all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement. 

(d) Notwithstanding anything to the contrary herein, if at any time the Swing Line Lender assigns all of its Revolving Credit Commitments
and Loans pursuant to subsection (a) above, the Swing Line Lender may terminate the Swing Line. In the event of such termination of the Swing Line, the Company shall be entitled to appoint another Lender to act as the successor Swing Line
Lender hereunder (with such Lender’s consent); provided, however, that the failure of the Company to appoint a successor shall not affect the resignation of the Swing Line Lender. If the Swing Line Lender terminates the Swing Line, it
shall retain all of the rights of the Swing Line Lender provided hereunder with respect to Swing Loans made by it and 

 

 -69- 

 
outstanding as of the effective date of such termination, including the right to require Lenders to make Revolving Loans or fund participations in outstanding Swing Loans pursuant to
Section 2.5 hereof. 
 Section 14.13. Amendments. Any provision of the Loan Documents may be amended or waived
if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrowers, (b) the Required Lenders, and (c) if the rights or duties of the Administrative Agent, the L/C Issuer or the Swing Line Lender are affected
thereby, the Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable; provided that: 

(i) no amendment or waiver pursuant to this Section 14.13 shall (A) increase the Revolving Credit Commitment of
any Lender without the consent of such Lender or (B) forgive, or reduce the amount of, or postpone any fixed date for payment of, any principal of or interest on any Loan or Reimbursement Obligation or any fee payable hereunder without the
consent of the Lender to which such payment is owing or which has committed to make such Loan or Letter of Credit (or participate therein) hereunder; and 

(ii) no amendment or waiver pursuant to this Section 14.13 shall, unless signed by each Lender, extend the
Termination Date, change any provision of Section 8, Section 10.1(a), Section 11, this Section 14.13, or the definition of Required Lenders, or release any Borrower or any Guarantor (except as set forth in Section 5.4
hereof), or affect the number of Lenders required to take any action under the Loan Documents. 
 Section 14.14.
Headings. Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement. 

Section 14.15. Legal Fees, Other Costs and Indemnification. The Borrowers agree to pay all reasonable costs and expenses of
the Administrative Agent in connection with the preparation and negotiation of the Loan Documents, including without limitation, the reasonable fees and disbursements of Chapman and Cutler LLP, counsel to the Administrative Agent, in connection
with the preparation and execution of the Loan Documents, and any amendment, waiver or consent related hereto, whether or not the transactions contemplated herein are consummated. The Borrowers further agree to indemnify each Lender, the L/C Issuer,
the Administrative Agent, and their respective directors, officers and employees (each such Person an “Indemnitee”) against all losses, claims, damages, penalties, judgments, liabilities and related expenses (including, without
limitation, all expenses of litigation or preparation therefor, whether or not the indemnified Person is a party thereto) which any of them may incur or reasonably pay arising out of or relating to any Loan Document or any of the transactions
contemplated thereby or the direct or indirect application or proposed application of the proceeds of any Loan or Letter of Credit, other than those which arise from the gross negligence or willful misconduct of the party claiming indemnification.
The Borrowers, upon demand by the Administrative Agent, the L/C Issuer or a Lender at any time, shall reimburse the Administrative Agent, the L/C Issuer or Lender for any reasonable legal or other expenses incurred in connection with investigating
or defending against any of the foregoing except if the same is directly due to the gross negligence or willful misconduct of the party to be indemnified. To the extent permitted by applicable law,

  

 -70- 

 
no party to this Agreement shall assert, and each such Person hereby waives, any claim against any other party to this Agreement or any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or the other Loan Documents or any agreement or instrument contemplated hereby or thereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. The obligations of the parties under this Section shall survive the termination of this Agreement. 

Section 14.16. Set Off. In addition to any rights now or hereafter granted under the Loan Documents or applicable law and not
by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default, each Lender, the L/C Issuer and each subsequent holder of any Obligation and each of their respective Affiliates is hereby authorized by
each Borrower and each Guarantor at any time or from time to time, without notice to such Borrower, such Guarantor or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits
(general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts or premium trust accounts, and in whatever currency denominated) and any other
indebtedness at any time held or owing by that Lender, the L/C Issuer or that subsequent holder or Affiliate to or for the credit or the account of such Borrower or such Guarantor, whether or not matured, against and on account of the Obligations of
such Borrower or such Guarantor to that Lender, the L/C Issuer or that subsequent holder or Affiliate under the Loan Documents, including, but not limited to, all claims of any nature or description arising out of or connected with the Loan
Documents, irrespective of whether or not (a) that Lender, the L/C Issuer or that subsequent holder or Affiliate shall have made any demand hereunder or (b) the principal of or the interest on the Loans or Notes and other amounts due
hereunder shall have become due and payable pursuant to Section 8 and although said obligations and liabilities, or any of them, may be contingent or unmatured. 

Section 14.17. Entire Agreement. The Loan Documents constitute the entire understanding of the parties thereto with respect
to the subject matter thereof and any prior or contemporaneous agreements, whether written or oral, with respect thereto are superseded thereby. 

Section 14.18. Governing Law. This Agreement and the other Loan Documents, and the rights and duties of the parties hereto,
shall be construed and determined in accordance with the internal laws of the State of Illinois. 
 Section 14.19.
Currency. To the fullest extent permitted by law, the obligation of each Borrower and each Guarantor in respect of any amount due in U.S. Dollars or an Alternative Currency (the “relevant currency”) under this Agreement shall,
notwithstanding any payment in any other currency (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the relevant currency that the Person entitled to received such payment may, in accordance with normal
banking procedures, purchase with the sum paid in such other currency (after any premium and costs of exchange) on the Business Day immediately following the day on which such Person receives such payment. If the amount of the relevant currency so
purchased is less than the sum originally due to such Person in the relevant currency, the relevant Borrower or Guarantor, as applicable, agrees, as a separate obligation and notwithstanding any

  

 -71- 

 
such judgment, to indemnify such Person against such loss, and if the amount of the specified currency so purchased exceeds the sum of (a) the amount originally due to the relevant Person in
the specified currency plus (b) any amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Person under Section 14.7 hereof, such Person agrees to remit such excess to the relevant
Borrower or Guarantor, as applicable. 
 Section 14.20. Submission to Jurisdiction; Waiver of Jury Trial. Each
Borrower hereby submits to the nonexclusive jurisdiction of the United States District Court for the Northern District of Illinois and of any Illinois State court sitting in the City of Chicago for purposes of all legal proceedings arising out of or
relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby. Each Borrower irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the
venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. EACH BORROWER, THE
ADMINISTRATIVE AGENT, THE L/C ISSUER AND EACH LENDER HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED THEREBY. 
 Section 14.21. USA Patriot Act. Each Lender and
the L/C Issuer that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrowers that pursuant to the
requirements of the Act, it is required to obtain, verify, and record information that identifies each Borrower, which information includes the name and address of each Borrower and other information that will allow such Lender or the L/C Issuer to
identify each Borrower in accordance with the Act. 
 Section 14.22. Confidentiality. Each Lender agrees to
maintain in confidence and not to disclose without the Company’s consent (other than to its employees, affiliates, auditors, counsel or other professional advisors, or to another Lender, each of which shall also be bound by this
Section 14.22) any information concerning the Company or any Subsidiaries furnished pursuant to this Agreement and not previously disclosed in any filing made by the Company with the SEC; provided that any Lender may disclose any such
information (a) that has become generally available to the public, (b) if required or appropriate in any report, statement or testimony submitted to any regulatory body having or claiming to have jurisdiction over such Lender or any stock
exchange on which the equity of such Lender is registered, (c) if required or appropriate in response to any summons or subpoena or in connection with any litigation, (d) in order to comply with any law, order, regulation or ruling
applicable to such Lender, or (e) to any prospective or actual participant under Section 14.11 or 14.12 hereof in connection with any contemplated or actual transfer of a participating or other interest in such Lender’s rights or
obligations hereunder; provided, that (i) such actual or prospective transferee executes an agreement with such Lender containing provisions substantially identical to those contained in this Section 14.22 and (ii) in the case
of any disclosure under subsection (c) above, such Lender shall (to the extent permitted by applicable law) notify the Company of such disclosure so that the Company may seek an appropriate protective order or waive such Lender’s
compliance with the provisions of this Section, it being understood that if the Company has no right to obtain such a protective order or if the Company does not commence procedures to obtain such a protective order within ten Business Days of the
receipt of such notice, such Lender’s compliance with this Section shall be deemed to have been waived with respect to such disclosure. 
  

 -72- 

 Section 14.23. Severability of Provisions. Any provision of any Loan
Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law,
and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement
or the other Loan Documents invalid or unenforceable. 
 Section 14.24. Excess Interest. Notwithstanding any
provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be
charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess Interest”). If any Excess Interest
is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrowers nor any guarantor or endorser shall be
obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding
principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrowers, or (iii) any combination of the foregoing, (d) the
interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the “Maximum Rate”), and this Agreement and the
other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrowers nor any guarantor or endorser shall have any action against the
Administrative Agent or any Lender for any damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest on any of Obligations is calculated at the Maximum Rate
rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Obligations shall remain at the Maximum Rate until the Lenders have received the amount
of interest which such Lenders would have received during such period on the Obligations had the rate of interest not been limited to the Maximum Rate during such period. 

Section 14.25. Construction. The parties acknowledge and agree that the Loan Documents shall not be construed more favorably
in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. 

 

 -73- 

 Section 14.26. Lender’s and L/C Issuer’s Obligations Several. The
obligations of the Lenders and L/C Issuer hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders or L/C Issuer pursuant hereto shall be deemed to constitute the Lenders and
L/C Issuer a partnership, association, joint venture or other entity. 
 [Signature Pages Follow.] 

 

 -74- 

 This Multicurrency Credit Agreement is entered into between us for the uses and purposes
hereinabove set forth as of the date first above written. 
  

			
	BORROWERS
	
	ARTHUR J. GALLAGHER & CO.
		
	By	 	         /s/ Jack H. Lazzaro

		 	Name: Jack H. Lazzaro
		 	Title: Vice President and Treasurer
	
	ARTHUR J. GALLAGHER & CO. (ILLINOIS)
	 ARTHUR J. GALLAGHER BROKERAGE & RISK
MANAGEMENT SERVICES, LLC

	RISK PLACEMENT SERVICES, INC.
	GALLAGHER BASSETT SERVICES, INC.
	GALLAGHER BENEFIT SERVICES, INC.
	 ARTHUR J. GALLAGHER RISK MANAGEMENT
SERVICES, INC.

	ARTHUR J. GALLAGHER SERVICE COMPANY
		
	By	 	         /s/ Jack H. Lazzaro

		 	Name: Jack H. Lazzaro
		 	Title: Treasurer of each of the foregoing entities

  

					
		  	S-1	  	[Multicurrency Credit Agreement]

			
	 BANK OF MONTREAL, individually as a Lender,
as L/C Issuer, Swing Line
Lender and as Administrative Agent

		
	By	 	         /s/ Gregory F. Tomczyk

		 	Name: Gregory F. Tomczyk
		 	Title: Vice President

  

					
		  	S-2	  	[Multicurrency Credit Agreement]

			
	CITIBANK, N.A.
		
	By	 	         /s/ Peter Bickford

		 	Name: Peter Bickford
		 	Title: Vice President

  

					
		  	S-3	  	[Multicurrency Credit Agreement]

			
	BARCLAYS BANK PLC
		
	By	 	         /s/ Jonathan J. Bush

		 	Name: Jonathan J. Bush
		 	Title: Director

  

					
		  	S-4	  	[Multicurrency Credit Agreement]

			
	JPMORGAN CHASE BANK, N.A.
		
	By	 	         /s/ Thomas A. Kiepura

		 	Name: Thomas A. Kiepura
		 	Title: Senior Vice President

  

					
		  	S-5	  	[Multicurrency Credit Agreement]

			
	RBS CITIZENS, NATIONAL ASSOCIATION
		
	By	 	         /s/ R. Jane Westrich

		 	Name: R. Jane Westrich
		 	Title: Senior Vice President

  

					
		  	S-6	  	[Multicurrency Credit Agreement]

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By	 	         /s/ David Bendel

		 	Name: David Bendel
		 	Title: Director

  

					
		  	S-7	  	[Multicurrency Credit Agreement]

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By	 	         /s/ Navneet Khanna

		 	Name: Navneet Khanna
		 	Title: Vice President

  

					
		  	S-8	  	[Multicurrency Credit Agreement]

			
	BANK OF AMERICA, N.A.
		
	By	 	         /s/ Thomas P. Sullivan

		 	Name: Thomas P. Sullivan
		 	Title: Senior Vice President

  

					
		  	S-9	  	[Multicurrency Credit Agreement]

			
	THE PRIVATEBANK AND TRUST COMPANY
		
	By	 	         /s/ Jeff Lezotte

		 	Name: Jeff Lezotte
		 	Title: Managing Director

  

					
		  	S-10	  	[Multicurrency Credit Agreement]

			
	COMERICA BANK
		
	By	 	         /s/ Timothy O’Rourke

		 	Name: Timothy O’ Rourke
		 	Title: Vice President

  

					
		  	S-11	  	[Multicurrency Credit Agreement]

			
	THE NORTHERN TRUST COMPANY
		
	By	 	         /s/ Chris McKean

		 	Name: Chris McKean
		 	Title: Vice President

  

					
		  	S-12	  	[Multicurrency Credit Agreement]

			
	CAPITAL ONE, N.A.
		
	By	 	         /s/ Lewis H. Gissel III

		 	Name: Lewis H. Gissel III
		 	Title: Senior Vice President

  

					
		  	S-13	  	[Multicurrency Credit Agreement]

 EXHIBIT A 

NOTICE OF PAYMENT REQUEST 

 

			
	[Name of Lender]	  	[Date]
	[Address]	  	

 Attention: 

Reference is made to the Multicurrency Credit Agreement, dated as of July 15, 2010 among Arthur J. Gallagher & Co. and
the other Borrowers party thereto, the Lenders named therein, and Bank of Montreal, as Administrative Agent (the “Credit Agreement”). Capitalized terms used herein and not defined herein have the meanings assigned to them in
the Credit Agreement. [The Borrowers have failed to pay their Reimbursement Obligation in the amount of $            . Your Lender’s Percentage of the unpaid Reimbursement
Obligation is $            ] or [The L/C Issuer has been required to return a payment by the Borrowers of a Reimbursement Obligation in the amount of
$            . Your Lender’s Percentage of the returned Reimbursement Obligations is $            .]

  

							
	Very truly yours,	 	
		
	  
	 	,
		 	as L/C Issuer	 	
			
	By	 	  
	 	
		 	Title	 	  
	 	

 EXHIBIT B 

NOTICE OF BORROWING 

Date:                     ,
         
  

	To:	Bank of Montreal, as Administrative Agent for the Lenders parties to the Multicurrency Credit Agreement dated as of July 15, 2010 (as extended, renewed, amended or
restated from time to time, the “Credit Agreement”), among Arthur J. Gallagher & Co., (the “Company”) and the other Borrowers (collectively with the Company, the “Borrowers”) party thereto,
the Lenders party thereto and the Administrative Agent 

 Ladies and Gentlemen: 

The undersigned, Arthur J. Gallagher & Co., refers to the Credit Agreement, the terms defined therein being used herein as
therein defined, and hereby gives you notice irrevocably, pursuant to Section 1.5 of the Credit Agreement, of the Borrowing specified below: 

1. The Business Day of the proposed Borrowing is
                    ,         . 

2. The aggregate amount and currency of the proposed Borrowing is
                    . 

3. The Borrowing is to be comprised of              of
[Base Rate] [Eurocurrency] Loans. 
 [4. The duration of the Interest Period for the Eurocurrency Loans
included in the Borrowing shall be              months.] 

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed
Borrowing, before and after giving effect thereto and to the application of the proceeds therefrom: 
 (a) the
representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct as though made on and as of such date (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date); and 
 (b) no Default or Event of Default has occurred and
is continuing or would result from such proposed Borrowing. 
  

					
	ARTHUR J. GALLAGHER & CO.
		
	By	 	  

		 	Name	 	  

		 	Title	 	  

 EXHIBIT C 

NOTICE OF CONTINUATION/CONVERSION 

Date:                     ,
         
  

	To:	Bank of Montreal, as Administrative Agent for the Lenders parties to the Multicurrency Credit Agreement dated as of July 15, 2010 (as extended, renewed, amended or
restated from time to time, the “Credit Agreement”), among Arthur J. Gallagher & Co., (the “Company”) and the other Borrowers (collectively with the Company, the “Borrowers”) party thereto,
the Lenders party thereto and the Administrative Agent 

 Ladies and Gentlemen: 

The undersigned, Arthur J. Gallagher & Co., refers to the Credit Agreement, the terms defined therein being used herein as
therein defined, and hereby gives you notice irrevocably, pursuant to Section 1.5 of the Credit Agreement, of the [conversion] [continuation] of the Loans specified herein, that: 

1. The conversion/continuation Date is
                    ,         . 

2. The aggregate amount and currency of the Loans to be [converted] [continued] is
                    . 

3. The Loans are to be [converted into] [continued as] [Eurocurrency] [Base Rate] Loans. 

4. [If applicable:] The duration of the Interest Period for the Loans included in the [conversion]
[continuation] shall be              months. 
 The
undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the proposed conversion/continuation date, before and after giving effect thereto and to the application of the proceeds therefrom:

 (a) the representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are
true and correct as though made on and as of such date (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date); provided, however, that this condition shall
not apply to the conversion of an outstanding Eurodollar Loan to a Base Rate Loan; and 
 (b) no Default or Event
of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation]. 
  

					
	ARTHUR J. GALLAGHER & CO.
		
	By	 	  

		 	Name	 	  

		 	Title	 	  

 EXHIBIT D 

REVOLVING CREDIT NOTE 

                    ,
         
 FOR VALUE RECEIVED, each
of the undersigned (collectively, the “Borrowers”), promises to pay to the order of                      (the
“Lender”) on the Termination Date of the hereinafter defined Credit Agreement, at the principal office of Bank of Montreal, in Chicago, Illinois, (or in the case of Eurocurrency Loans denominated in an Alternative Currency, at such
office as the Administrative Agent has previously notified the Company) in the currency of such Loan in accordance with Section 4.2 of the Credit Agreement, the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the
Borrower pursuant to the Credit Agreement, together with interest on the principal amount of each Revolving Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

 The Lender shall record on its books or records or on a schedule attached to this Note, which is a part hereof, each
Revolving Loan made by it pursuant to the Credit Agreement, together with all payments of principal and interest and the principal balances from time to time outstanding hereon, whether the Revolving Loan is a Base Rate Loan or a Eurocurrency Loan,
the currency thereof and the interest rate and Interest Period applicable thereto, provided that prior to the transfer of this Note all such amounts shall be recorded on a schedule attached to this Note. The record thereof, whether shown on
such books or records or on a schedule to this Note, shall be prima facie evidence of the same, provided, however, that the failure of the Lender to record any of the foregoing or any error in any such record shall not limit or
otherwise affect the obligation of the Borrowers to repay all Revolving Loans made to it pursuant to the Credit Agreement together with accrued interest thereon. 

This Note is one of the Notes referred to in the Amended and Restated Multicurrency Credit Agreement dated as of July 15, 2010,
among the Borrowers, Bank of Montreal, as Administrative Agent, and the lenders from time to time party thereto (said Multicurrency Credit Agreement, as amended, modified or restated from time to time, being referred to herein as the “Credit
Agreement”), and this Note and the holder hereof are entitled to all the benefits provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note,
except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement. 
 Prepayments may be made hereon
and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement. 

This Note shall be governed by and construed in accordance with the internal laws of the State of Illinois. 

 The Borrowers hereby jointly and severally promise to pay all reasonable costs and expenses
(including attorneys’ fees) suffered or incurred by the holder hereof in collecting this Note or enforcing any rights in any collateral therefor, all as more particularly provided in the Credit Agreement. The Borrowers hereby waive demand,
presentment, protest or notice of any kind hereunder except as expressly provided in the Credit Agreement. 
  

					
	ARTHUR J. GALLAGHER & CO.
		
	By	 	  

		 	Jack H. Lazzaro
		 	Its: Vice President and Treasurer
	
	 ARTHUR J. GALLAGHER & CO.
(ILLINOIS)

	 ARTHUR J. GALLAGHER BROKERAGE & RISK
MANAGEMENT SERVICES, LLC

	 RISK PLACEMENT SERVICES, INC.

	 GALLAGHER BASSETT SERVICES, INC.

	 GALLAGHER BENEFIT SERVICES, INC.

	 ARTHUR J. GALLAGHER RISK MANAGEMENT
SERVICES, INC.

	 ARTHUR J. GALLAGHER SERVICE COMPANY

		
	By	 	  

		 	Name:	 	Jack H. Lazzaro
		 	Title:	 	Treasurer of each of the foregoing entities

  

 -2- 

 EXHIBIT E 

SWING LINE NOTE 

 

			
	$            	  	                    ,
        

 On the Termination Date, for value received, each of the
undersigned (collectively, the “Borrowers”), promises to pay to the order of                      (the
“Lender”), at the principal office of Bank of Montreal in Chicago, Illinois, the principal sum of (i)              and 00/100 Dollars
($            ), or (ii) such lesser amount as may at the time of the maturity hereof, whether by acceleration or otherwise, be the aggregate unpaid principal amount of all
Swing Loans owing from the Borrowers to the Lender pursuant to the Credit Agreement hereinafter mentioned. 
 This Note
evidences Swing Loans made and to be made to the Borrowers by the Lender pursuant to that certain Multicurrency Credit Agreement dated as of July 15, 2010 among the Borrowers, Bank of Montreal, as Administrative Agent, and the lenders from time
to time party thereto (said Amended and Restated Multicurrency Credit Agreement, as amended, modified or restated from time to time, being referred to herein as the “Credit Agreement”), and the Borrowers hereby jointly and severally
promise to pay interest at the office specified above on each Swing Loan evidenced hereby at the rates and times specified therefor in the Credit Agreement. 

Each Swing Loan made by the Lender to the Borrowers against this Note, any repayment of principal hereon and the interest rates
applicable thereto shall be endorsed by the holder hereof on the reverse side of this Note or recorded on the books and records of the holder hereof (provided that such entries shall be endorsed on the reverse side hereof prior to any
negotiation hereof) and the Borrowers agree that in any action or proceeding instituted to collect or enforce collection of this Note, the entries so endorsed on the reverse side hereof or recorded on the books and records of the Lender shall be
prima facie evidence of the unpaid balance of this Note and the interest rates applicable thereto. 
 This Note is issued
by the Borrowers under the terms and provisions of the Credit Agreement, and this Note and the holder hereof are entitled to all of the benefits and security provided for thereby or referred to therein, to which reference is hereby made for a
statement thereof. This Note may be declared to be, or be and become, due prior to its expressed maturity as specified in the Credit Agreement, and certain prepayments are required to be made hereon, all in the events, on the terms and with the
effects provided in the Credit Agreement. All capitalized terms used herein without definition shall have the same meaning herein as such terms have in the Credit Agreement. 

This Note shall be construed in accordance with, and governed by, the internal laws of the State of Illinois without regard to principles
of conflict of law. 

 The Borrowers hereby jointly and severally promise to pay all reasonable costs and expenses
(including attorneys’ fees) suffered or incurred by the holder hereof in collecting this Note or enforcing any rights in any collateral therefor, all as more particularly provided in the Credit Agreement. The Borrowers hereby waive demand,
presentment, protest or notice of any kind hereunder except as expressly provided in the Credit Agreement. 
  

					
	ARTHUR J. GALLAGHER & CO.
		
	By	 	  

		 	Jack H. Lazzaro
		 	Its: Vice President and Treasurer
	
	 ARTHUR J. GALLAGHER & CO.
(ILLINOIS)

	 ARTHUR J. GALLAGHER BROKERAGE & RISK
MANAGEMENT SERVICES, LLC

	 RISK PLACEMENT SERVICES, INC.

	 GALLAGHER BASSETT SERVICES, INC.

	 GALLAGHER BENEFIT SERVICES, INC.

	 ARTHUR J. GALLAGHER RISK MANAGEMENT
SERVICES, INC.

	 ARTHUR J. GALLAGHER SERVICE COMPANY

		
	By	 	  

		 	Name:	 	Jack H. Lazzaro
		 	Title:	 	Treasurer of each of the foregoing entities

  

 -2- 

 EXHIBIT F 

COMMITMENT AMOUNT INCREASE REQUEST 

                    ,
20     
 Bank of Montreal, 

as Administrative Agent (the “Administrative Agent”) 

for the Lenders referred to below 

115 South LaSalle Street 
 Chicago, Illinois
60603 
 Attention: Agency Services 
  

			
	Re:	  	 Multicurrency Credit Agreement dated as of July 15, 2010 (together with all amendments, if any,
hereafter from time to time made thereto, the “Credit Agreement”) among Arthur J, Gallagher & Co., (the “Company”) and the other Borrowers (collectively with the Company, the “Borrowers”)
party thereto, the Lenders party thereto and the Administrative Agent

 Ladies and Gentlemen: 

In accordance with the Credit Agreement, the Company, on behalf of the Borrowers, hereby requests that the Administrative Agent consent
to an increase in the aggregate Revolving Credit Commitments (the “Commitment Amount Increase”), in accordance with Section 3.8 of the Credit Agreement, to be effected by [an increase in the Revolving Credit Commitment of
[name of existing Lender(s)] [and] [the addition of [each of] [name of each new Lender] (the [each a] “New Lender”) as a Lender under the terms of the Credit Agreement]. Capitalized terms used herein without
definition shall have the same meanings herein as such terms have in the Credit Agreement. 
 After giving effect to such
Commitment Amount Increase, the Revolving Credit Commitment of the [Lender(s)] [New Lenders] shall be [$            .] [as follows: 

 

			
	LENDER/NEW LENDER	  	 REVOLVING CREDIT

COMMITMENT AMOUNT

	  
	  	$            
	  
	  	$            ]

[Include paragraphs 1-4 for a New Lender] 

 1. The New Lender hereby confirms that it has received a copy of the Loan Documents and the
exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. The [Each] New Lender
acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit
analysis and decisions relating to the Credit Agreement. The [Each] New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the creditworthiness of the Borrowers or any
other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor. 

2. Except as otherwise provided in the Credit Agreement, effective as of the date of acceptance hereof by the Administrative Agent, the
[each] New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations of a “Lender” under the Credit Agreement as if it were an original signatory
thereto and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto. 

3. The [Each] New Lender hereby advises you that administrative details with respect to its Loans and Revolving Credit Commitments
are set forth in its Administrative Questionnaire. 
 [4. The [Each] New Lender has delivered, if appropriate, to the Company
and the Administrative Agent (or is delivering to the Company and the Administrative Agent concurrently herewith) the tax forms referred to in Section 4.1 of the Credit Agreement.]* 

THIS AGREEMENT SHALL BE DEEMED TO
BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS. 

The Commitment Amount Increase shall be effective when the executed consent of the Administrative Agent is received or otherwise in
accordance with Section 3.8, of the Credit Agreement, but not in any case prior to                     ,
        . It shall be a condition to the effectiveness of the Commitment Amount Increase that all expenses referred to in Section 3.8 of the Credit Agreement shall have been paid. 

The Company hereby certifies that no Default or Event of Default has occurred and is continuing. 

 

	*	Insert bracketed paragraph if New Lender is organized under the law of a jurisdiction other than the United States of America or a state thereof.

  

 -2- 

 Please indicate the Administrative Agent’s consent to such Commitment Amount Increase
by signing the enclosed copy of this letter in the space provided below. 
  

					
	Very truly yours,
	
	 ARTHUR J. GALLAGHER & CO., on behalf of the
Borrowers

		
	By	 	  

		 	Name:	 	
 

					
		 	Title:	 	
 

					
	
	[NEW BANK/BANK INCREASING COMMITMENT]
		
	By:	 	  

		 	Name:	 	
 

					
		 	Title:	 	  

The undersigned hereby consents 
 on this
     day of                     , 

         to the above-requested Commitment 

Amount Increase. 
  

					
	 BANK OF MONTREAL, as Administrative Agent,
L/C Issuer and Swing Line
Lender

		
	By:	 	  

		 	Name:	 	  

					
		 	Title:	 	  

  

 -3- 

 EXHIBIT G 

COMPLIANCE CERTIFICATE 

This Compliance Certificate is furnished to Bank of Montreal as Administrative Agent pursuant to the Multicurrency Credit Agreement,
dated as of July 15, 2010 among Arthur J. Gallagher & Co. (the “Company”) and the other Borrowers party thereto (collectively with the Company, the “Borrowers”), the Lenders signatory thereto and
Bank of Montreal, as Administrative Agent (the “Credit Agreement”). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement. 

THE UNDERSIGNED HEREBY CERTIFIES THAT: 

1. I am the duly elected
                                        
of the Company; 
 2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be
made under my supervision, a detailed review of the financial condition of the Company and its Subsidiaries during the accounting period covered by the attached financial statements; 

3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any
condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth below;

 4. The financial statements required by Section 9.4 of the Credit Agreement and being furnished to you
concurrently with this certificate are, to the best of my knowledge, fairly present in all material respects the consolidated financial conditions of the Company and its Subsidiaries as of the dates and for the periods covered thereby; and

 5. The Attachment hereto sets forth financial data and computations evidencing the Borrowers’ compliance
with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. 

6. During the most recently ended fiscal quarter of the Company, no Subsidiary became a direct Material Wholly-Owned
Domestic Subsidiary [except for                     ]. 

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period
during which it has existed and the action which the Borrowers have taken, are taking, or proposes to take with respect to each such condition or event: 
  

	
	  

	  

	  

	  

 The foregoing certifications, together with the computations set forth in the Attachment
hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this              day of
             20    . 
  

					
	  

	  
	 	,	 	  

	(Type or Print Name)	 		 	(Title)

  

 -2- 

 ATTACHMENT TO COMPLIANCE
CERTIFICATE 
 ARTHUR J. GALLAGHER & CO.

 Compliance Calculations for Multicurrency Credit Agreement 

Dated as of July 15, 2010 

Calculations as of
                    , 20     

($000) 
  

 
  

 

								
	A.	 	NET WORTH (SECTION 9.6)	  		
				
		 	1.	  	Net Worth as defined	  	$	                    
				
		 	2.	  	Base Net Worth as prescribed	  	$	650,000
				
		 	3.	  	 40% Cumulative positive consolidated quarterly

Net Income (commencing with fiscal quarter ending 9/30/10)
	  	$	                    
				
		 	4.	  	 Minimum Net Worth required as of this date

(line A2 + A3)
	  	$	                    
				
		 	5.	  	Borrowers are in compliance? (Line A1 3 line A4)	  	 	Yes/No
			
	B.	 	CASH FLOW LEVERAGE RATIO (SECTION 9.7) 	  		
				
		 	1.	  	Indebtedness representing borrowed money (excluding non-recourse debt)	  	$	                    
				
		 	2.	  	Capitalized Lease Obligations	  	$	                    
				
		 	3.	  	Guarantees	  	$	                    
				
		 	4.	  	Letters of Credit	  	$	                    
				
		 	5.	  	All other obligations defined as Funded Debt	  	$	                    
				
		 	6.	  	Total Funded Debt (sum of lines B1 through B5)	  	$	                    
				
		 	7.	  	Excess Cash as defined	  	$	                    
				
		 	8.	  	Line B6 minus line B7	  	$	                    
				
		 	9.	  	Net Income as defined	  	$	                    
				
		 	10.	  	Amounts deducted in arriving at Net Income in respect to	  		
				
		 		  	(a) Interest Expense as defined	  	$	                    

									
					
		  		  	(b)	 	Federal, state and local income tax expense	  	$                     
					
		  		  	(c)	 	Depreciation of fixed assets and amortization of intangible assets	  	$                     
					
		  		  	(d)	 	Expense related to the change in estimated earnout payables	  	$                     
				
		  	11.	  	Amounts included in arriving at Net Income in respect to income related to the change in estimated earnout payables	  	$                     
				
		  	12.	  	Sum of lines B9, B10(a), B10(b) and B10(c) minus B11 (“EBITDA”)	  	$                     
				
		  	13.	  	Adjusted Cash Flow Leverage Ratio (ratio of line B8 to line B12)	  	             : 1
				
		  	14.	  	Adjusted Cash Flow Leverage Ratio allowed as of this date	  	2.75 : 1
				
		  	15.	  	Borrowers are in compliance? (Circle yes or no)	  	Yes/No
			
	 C.
	  	INTEREST COVERAGE RATIO (SECTION 9.8)	  	
				
		  	1.	  	Net Income as defined	  	$                     
				
		  	2.	  	Amounts deducted in arriving at Net Income in respect to	  	
					
		  		  	(a)	 	Interest Expense as defined	  	$                     
					
		  		  	(b)	 	Federal, state and local income tax expense	  	$                     
					
		  		  	(c)	 	Expense related to the change in estimated earnout payables	  	$                     
				
		  	3.	  	Amounts included in arriving at Net Income in respect to income related to the change in estimated earnout payables	  	$                     
				
		  	4.	  	Sum of lines C1, C2(a) and C2(b) minus C3 (“EBIT”)	  	$                     
				
		  	5.	  	Interest Expense as defined	  	$                     
				
		  	6.	  	Interest Coverage Ratio (ratio of line C3 to line C5)	  	             : 1.0
				
		  	7.	  	Interest Coverage Ratio allowed as of this date	  	4.00 : 1.0
				
		  	8.	  	Borrowers are in compliance? (Circle yes or no)	  	Yes/No

  

 -2- 

 EXHIBIT H 

ASSIGNMENT AND ACCEPTANCE 

Dated
                    , 20         

Reference is made to the Multicurrency Credit Agreement dated as of July 15, 2010 (as extended, renewed, amended or restated from
time to time, the “Credit Agreement”) among Arthur J. Gallagher & Co. (the “Company”) and the other Borrowers party thereto (collectively with the Company, the “Borrowers”), the
Lenders and Bank of Montreal, as Administrative Agent for the Lenders. Terms defined in the Credit Agreement are used herein with the same meaning. 

                     
                    (the “Assignor”) and
                                        
(the “Assignee”) agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, the amount and specified percentage interest as shown on Schedule I hereto of the Assignor’s rights and obligations under the Credit Agreement as of the Effective Date (as defined
below), including, without limitation, the Assignor’s Revolving Credit Commitment as in effect on the Effective Date and the Revolving Loans, if any, owing to the Assignor on the Effective Date and the Assignor’s Percentage of any
outstanding L/C Obligations and Swing Loans, if any. 
 2. The Assignor (i) represents and warrants that it is the legal
and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim, lien, or encumbrance of any kind; (ii) 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; and (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrowers or any Subsidiary or the performance or observance by the Borrowers or any
Subsidiary of any of their respective obligations under the Credit Agreement or any other instrument or document furnished pursuant thereto. 

3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered to the Lenders pursuant to Section 9.4(a) and Section 9.4(b) thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and
Acceptance; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Assignor 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; (iii) appoints and authorizes the Administrative Agent to take such action as Administrative Agent on its behalf and to exercise such powers under the Credit
Agreement and the other Loan Documents as are delegated to the 

 
Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (iv) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender; and (v) specifies as its lending offices (and address for notices) the offices set forth on its Administrative Questionnaire. 

4. As consideration for the assignment and sale contemplated in Section 1 hereof, the Assignee shall pay to the Assignor on the
Effective Date in Federal funds the amount agreed upon between them. It is understood that commitment and/or Letter of Credit fees accrued to the date hereof with respect to the interest assigned hereby are for the account of the Assignor and such
fees accruing from and including the date hereof are for the account of the Assignee. Each of the Assignor and the Assignee hereby agrees that if it receives any amount under the Credit Agreement which is for the account of the other party hereto,
it shall receive the same for the account of such other party to the extent of such other party’s interest therein and shall promptly pay the same to such other party. 

5. The effective date for this Assignment and Acceptance shall be
                    , 20         (the “Effective Date”). Following the
execution of this Assignment and Acceptance, it will be delivered to the Company for its acceptance, to the extent required by the Credit Agreement, and to the Administrative Agent for acceptance and recording by the Administrative Agent.

 6. Upon such acceptance and recording, as of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement. 
 7. Upon such acceptance and recording, from and after the Effective
Date, the Administrative Agent shall make all payments under the Credit Agreement in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees with respect thereto) to the
Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement for periods prior to the Effective Date directly between themselves. 

8. In accordance with Section 14.12 of the Credit Agreement, the Assignor and the Assignee request and direct that the
Administrative Agent prepare and cause the Borrowers to execute and deliver to the Assignee a Revolving Credit Note payable to the Assignee in the amount of its Revolving Credit Commitment and to the Assignor a new Revolving Credit Note in the
amount of its Revolving Credit Commitment, in each case, after giving effect to this assignment. 
 9. This Assignment and
Acceptance shall be governed by, and construed in accordance with, the laws of the State of Illinois. 
  

 -2- 

			
	[ASSIGNOR]
		
	By:	 	  

		 	Title:
	
	[ASSIGNEE]
		
	By:	 	  

		 	Title:

 Accepted and consented this 

         day of
                    ,          

 

			
	ARTHUR J. GALLAGHER & CO., on behalf of the Borrowers
		
	By:	 	  

	Title:	 	  

Accepted and consented to this 

         day of
                    ,          

 

			
	 BANK OF MONTREAL, as Administrative Agent, L/C Issuer and Swing Line
Lender

		
	By:	 	  

	Title:	 	  

  

 -3- 

 SCHEDULE I 

TO 

ASSIGNMENT AND ACCEPTANCE 

The Assignee hereby purchases and assumes from the Assignor the following interest in and to all of the Assignor’s rights and
obligations under the Credit Agreement as of the Effective Date: 
  

							
	 FACILITY ASSIGNED

	  	 AGGREGATE

REVOLVING CREDIT

COMMITMENTS FOR

ALL LENDERS
	  	 AMOUNT OF
REVOLVING
 CREDIT COMMITMENT

ASSIGNED
	  	 PERCENTAGE
ASSIGNED
 OF AGGREGATE

REVOLVING CREDIT
COMMITMENTS

				
	 Revolving Credit
	  		  		  	

 EXHIBIT I 

ADDITIONAL OBLIGOR SUPPLEMENT 

                    ,
20     
  

			
	BANK OF MONTREAL, as Administrative Agent for the Lenders named in the Multicurrency Credit Agreement dated as of July 15, 2010,
among Arthur J. Gallagher & Co. and each other Borrower party thereto (collectively, the “Borrowers”), the Lenders from time to time party thereto, and the Administrative Agent (the “Credit Agreement”)
	  	

 Ladies and Gentlemen: 

Reference is made to the Credit Agreement described above. Terms not defined herein which are defined in the Credit Agreement shall have
for the purposes hereof the meaning provided therein. 
 The undersigned, [name of new Borrower], a [jurisdiction of
incorporation or organization] hereby elects to be a “Borrower” for all purposes of the Credit Agreement, effective from the date hereof. The undersigned confirms that the representations and warranties set forth in
Section 7 of the Credit Agreement are true and correct in all material respects as and to the extent that they apply to the undersigned as of the date hereof and the undersigned shall comply with each of the covenants set forth in
Section 9 of the Credit Agreement applicable to it. 
 Without limiting the generality of the foregoing, the undersigned
hereby agrees to perform all the obligations of a Borrower under, and to be bound in all respects by the terms of, the Credit Agreement, including without limitation Section 13.A. thereof, to the same extent and with the same force and effect
as if the undersigned were a signatory party thereto. 
 The undersigned acknowledges that this Agreement shall be effective
upon its execution and delivery to the Administrative Agent, and it shall not be necessary for the Administrative Agent or any Lender to execute this Agreement or any other acceptance hereof. This Agreement shall be construed in accordance with and
governed by the internal laws of the State of Illinois. 
  

					
	Very truly yours,
	
	[NAME OF NEW BORROWER]
		
	By	 	  

		 	Name	 	  

		 	Title	 	  

 EXHIBIT J 

ADDITIONAL GUARANTOR SUPPLEMENT 

                    ,
20     
  

			
	BANK OF MONTREAL, as Administrative Agent for the Lenders named in the Multicurrency Credit Agreement dated as of July 15, 2010,
among Arthur J. Gallagher & Co. and the other Borrowers party thereto, the Guarantors referred to therein, the Lenders from time to time party thereto, and the Administrative Agent (the “Credit Agreement”)	  	

 Ladies and Gentlemen: 

Reference is made to the Credit Agreement described above. Terms not defined herein which are defined in the Credit Agreement shall have
for the purposes hereof the meaning provided therein. 
 The undersigned, [name of Subsidiary Guarantor], a
[jurisdiction of incorporation or organization] hereby elects to be a “Guarantor” for all purposes of the Credit Agreement, effective from the date hereof. The undersigned confirms that the representations and
warranties set forth in Section 7 of the Credit Agreement are true and correct in all material respects as and to the extent that they apply to the undersigned as of the date hereof and the undersigned shall comply with each of the covenants
set forth in Section 9 of the Credit Agreement applicable to it. 
 Without limiting the generality of the
foregoing, the undersigned hereby agrees to perform all the obligations of a Guarantor under, and to be bound in all respects by the terms of, the Credit Agreement, including without limitation Section 13.B thereof, to the same extent and with
the same force and effect as if the undersigned were a signatory party thereto. 
 The undersigned acknowledges that this
Agreement shall be effective upon its execution and delivery to the Administrative Agent, and it shall not be necessary for the Administrative Agent or any Lender to execute this Agreement or any other acceptance hereof. This Agreement shall be
construed in accordance with and governed by the internal laws of the State of Illinois. 
 Very truly yours, 

 

					
	[NAME OF GUARANTOR]
		
	By	 	  

		 	Name	 	  

		 	Title	 	  

 SCHEDULE 1 

REVOLVING CREDIT COMMITMENTS 

 

				
	 NAME OF LENDER
	  	REVOLVING CREDIT
COMMITMENT
		
	 Bank of Montreal
	  	$	67,500,000
		
	 Citibank, N.A.
	  	$	62,500,000
		
	 Barclays Bank PLC
	  	$	62,500,000
		
	 Bank of America, N.A.
	  	$	62,500,000
		
	 JPMorgan Chase Bank, N.A.
	  	$	50,000,000
		
	 U.S. Bank National Association
	  	$	50,000,000
		
	 Wells Fargo Bank, National Association
	  	$	40,000,000
		
	 RBS Citizens, National Association
	  	$	25,000,000
		
	 The PrivateBank and Trust Company
	  	$	25,000,000
		
	 Comerica Bank
	  	$	25,000,000
		
	 The Northern Trust Company
	  	$	15,000,000
		
	 Capital One, N.A.
	  	$	15,000,000
		
	 TOTAL
	  	$	500,000,000

 SCHEDULE 1.2(a) 

EXISTING LETTERS OF CREDIT 

 

							
	 LETTER OF
CREDIT
 NUMBER
	  	 STATED MATURITY

DATE
	  	 STATED

AMOUNT
	  	 BENEFICIARY

				
	 HACH19163OS
	  	20-DEC-10	  	3,700,000.00	  	Artex Insurance Company Ltd
				
	 HACH19449OS
	  	1-OCT-10	  	4,402,236.00	  	Hartford Fire Insurance Company
				
	 HACH195107OS
	  	1-OCT-10	  	5,852,000.00	  	Arch Insurance Company
				
	 HACH61696OS
	  	21-DEC-10	  	2,000,000.00	  	Comerica Bank

 SCHEDULE 7.2 

SUBSIDIARIES 

Those companies which are indented represent Subsidiaries of the entity under which they are indented. Except for directors’
qualifying shares, 100% of the Voting Stock of each of the Subsidiaries listed below, other than those indicated by footnote, is owned of record or beneficially by its indicated parent. Direct Material Wholly-Owned Domestic Subsidiaries appear in
bold face type. 
  

			
	 NAME
	  	 STATE OR OTHER
JURISDICTION
OF
INCORPORATION

		
	 Arthur J. Gallagher & Co.
	  	Delaware
		
	 Arthur J. Gallagher Latin America, LLC
	  	Illinois
		
	 Arthur J. Gallagher Brasil Corretora de Resseguros S.A.
	  	Brazil
		
	 Arthur J. Gallagher Service Company
	  	Delaware
		
	 Arthur J. Gallagher & Co. (Illinois)
	  	Illinois
		
	 Gallagher Mauritius Holdings
	  	Mauritius
		
	 Gallagher Offshore Support Services Private Limited
	  	India
		
	 Third Group Services, LLC
	  	Delaware
		
	 Arthur J. Gallagher Brokerage & Risk Management Services, LLC
	  	Delaware
		
	 Arthur J. Gallagher Risk Management Services, Inc.
	  	Illinois
		
	 Arthur J. Gallagher & Co. Insurance Brokers of California, Inc.
	  	California
		
	 Charity First Insurance Services, Inc.
	  	California
		
	 Commonwealth Premium Finance Corporation
	  	Kentucky
		
	 Artex Risk Solutions, Inc.
	  	Delaware
		
	 Western Litigation, Inc.
	  	Texas
		
	 Arthur J. Gallagher & Co. (Canada) Ltd.
	  	Canada
		
	 AJG Canada ULC
	  	Canada
		
	 AJG North America ULC
	  	Canada
		
	 Gallagher Lambert Group
	  	Canada
		
	 Gallagher Lambert Group, Inc
	  	Canada
		
	 Gallagher Lambert Quebec, ULC
	  	Canada
		
	 Risk Placement Services, Inc.
	  	Illinois

			
	 NAME
	  	 STATE OR OTHER
JURISDICTION
OF
INCORPORATION

		
	 Edwin M. Rollins Company
	  	North Carolina
		
	 Arthur J. Gallagher & Co. (Bermuda) Limited
	  	Bermuda
		
	 Arthur J. Gallagher Management (Bermuda) Limited
	  	Bermuda
		
	 Artex Risk Solutions, Inc. (Cayman) Limited
	  	Cayman Islands
		
	 SEG Insurance
Ltd.1
	  	Bermuda
		
	 Artex Intermediaries, Ltd.
	  	Bermuda
		
	 Artex Risk Solutions (Bermuda) Ltd.
	  	Bermuda
		
	 Protected Insurance Company
	  	Bermuda
		
	 Gallagher Holdings (UK) Limited
	  	England
		
	 Arthur J. Gallagher (UK) Limited
	  	England
		
	 Strand Underwriting Limited
	  	England
		
	 Risk Management Partners Ltd.
	  	England
		
	 Alesco Risk Management Services,
Ltd.2
	  	England
		
	 Arthur J. Gallagher Asia Limited
	  	Hong Kong
		
	 Gallagher Holdings Two (UK) Limited
	  	England
		
	 OIM Underwriting Limited
	  	England
		
	 Risk & Reward Group (Holdings) Limited
	  	England
		
	 Arthur J. Gallagher Australasia Holdings Pty Ltd.
	  	Australia
		
	 Australis Group (Underwriting ) Pty Ltd.
	  	Australia
		
	 Interpacific Underwriting Agencies Pty Ltd.
	  	Australia
		
	 Arthur J. Gallagher Reinsurance Australasia Pty Ltd.
	  	Australia
		
	 Arthur J. Gallagher (Aus) Pty Ltd.
	  	Australia
		
	 Gallagher Bassett Services, Inc.
	  	Delaware
		
	 Gallagher Bassett of New York, Inc.
	  	New York
		
	 Gallagher Bassett International Ltd. (UK)
	  	England
		
	 Gallagher Bassett Canada Inc.
	  	Canada
		
	 Gallagher Bassett Services Pty Ltd.
	  	Australia

  

	1
	 76% of the Common Stock of this subsidiary is owned by two third parties. 

	2
	 25% of the Common Stock of this subsidiary is owned by the management group. 

 

 -2- 

			
	 NAME
	  	STATE OR OTHER
JURISDICTION 
OF
INCORPORATION
		
	 Gallagher Bassett Services Workers Compensation Victoria Pty Ltd.
	  	Australia
		
	 Gallagher Bassett Services NZ Pty Ltd.
	  	Australia
		
	 AJG Financial Services, Inc.
	  	Delaware
		
	 AJG Investments, Inc.
	  	Delaware
		
	 AJG Coal, Inc.
	  	Delaware
		
	 AJG RFC LLC
	  	Delaware
		
	 Gallagher Clean Energy, LLC.
	  	Delaware
		
	 Gallagher Holdings Bermuda Company Limited.
	  	Bermuda
		
	 MG Advanced Coal Technolgies-1 LLC
	  	Delaware
		
	 Advanced Energy Systems
LLC3
	  	Delaware
		
	 Gallagher Benefit Services, Inc.
	  	Delaware
		
	 GBS Retirement Services, Inc.
	  	New York
		
	 GBS Insurance and Financial Services, Inc.
	  	Delaware
		
	 GBS Administrators, Inc.
	  	Washington
		
	 GBS Investment Consulting, LLC
	  	Delaware

  

	3	 15% of the
Membership Interests of this subsidiary is owned by an unrelated party. 

  

 -3-Renewal Annual Information Form dated March 31, 2010

 Exhibit 4.1 

Nova Scotia Power Incorporated 

2009 Renewal Annual Information Form 

March 31, 2010 

 

 

 Table of Contents 

 

			
	 INTRODUCTION
	  	1
		
	 CORPORATE STRUCTURE
	  	1
	 Name and Incorporation
	  	1
	 Inter-corporate Relationship
	  	1
		
	 GENERAL DEVELOPMENT OF THE BUSINESS
	  	1
	 Three Year History
	  	1
	 Return on Equity Decision
	  	1
	 Status of Fuel Adjustment Mechanism as of December 31, 2009
	  	2
	 2010 FAM Rate Adjustment
	  	2
	 No Base Rate Increase in 2010
	  	2
	 Integrated Resource Plan Filed with UARB
	  	3
	 In Stream Tidal Demonstration Project
	  	3
	 Nuttby Mountain Wind Project
	  	3
	 Point Tupper Wind Development
	  	4
	 UARB Approves NSPI Energy Expenditures
	  	4
	 Rate Decision in 2008
	  	4
	 Income Tax Recovery (2008)
	  	5
	 2007 Rate Decisions and Fuel Adjustment Mechanism
	  	5
	 Income Tax Recovery (2007)
	  	5
	 Financing Activity
	  	6
		
	 NARRATIVE DESCRIPTION OF THE BUSINESS
	  	6
	 General
	  	6
	 Area Served
	  	7
	 Energy Sources
	  	7
	 Transmission and Distribution
	  	7
	 System Operations and Generation
	  	8
	 New Head Office
	  	9
	 Regulatory Matters
	  	9
	 Employee Relations
	  	10
	 Environmental Matters
	  	10
	 Taxation
	  	10
	 Risk Factors
	  	10
	 Legal Proceedings and Regulatory Actions
	  	11
	 No Interest of Management and Others in Material Transactions
	  	11
	 Material Contracts
	  	11
	 Management’s Discussion and Analysis
	  	11
	 Dividends
	  	11
		
	 CAPITAL STRUCTURE
	  	12
	 Common Shares Issued To Emera
	  	13
	 Series C First Preferred Shares
	  	13
	 Series D First Preferred Shares
	  	13
	 Ratings
	  	14
		
	 MARKET FOR SECURITIES
	  	16
	 Trading Price and Volume
	  	16
	 Common Shares Issued To Emera
	  	16

  

 i 

			
	 TRANSFER AGENT AND REGISTRAR
	  	16
		
	 DIRECTORS AND OFFICERS
	  	16
	 Directors
	  	16
	 Audit, Nominating and Corporate Governance Committee
	  	18
	 Audit and Non-Audit Services Pre-Approval Process
	  	20
	 Certain Proceedings
	  	20
	 Auditors’ Fees
	  	21
	 Executive Officers
	  	21
		
	 EXPERTS
	  	23
	 Interest of Experts
	  	23
		
	 ADDITIONAL INFORMATION
	  	23
		
	 FORWARD LOOKING INFORMATION
	  	24
		
	 APPENDIX “A” – AUDIT COMMITTEE CHARTER
	  	I

 Note: The information presented in
this Annual Information Form is as of December 31, 2009 unless otherwise specified. 
  

 ii 

 INTRODUCTION 

Nova Scotia Power Incorporated (“NSPI” or the “Company”) is an electricity generation, transmission and distribution company with
$3.4 billion of assets providing service to 486,000 customers in the province of Nova Scotia. NSPI operates as a monopoly in its service territory. The essential nature of the services provided, the monopoly position, and the regulated market
structure mean that NSPI can generally be expected to produce stable earnings streams within regulated ranges. 
 For more information on the
business operations of the Company, see “Narrative Description of the Business” below. 
 CORPORATE STRUCTURE 

 Name and Incorporation 
 NSPI
was incorporated under the name International Engineering Services Limited on July 13, 1984 pursuant to the Companies Act (Nova Scotia). On May 11, 1992, its name was changed to Nova Scotia Power Incorporated. NSPI’s principal,
head and registered office is located at Barrington Tower, Scotia Square, 1894 Barrington Street, Halifax, Nova Scotia, B3J 2W5. 
 NSPI is the
largest operating subsidiary of Emera Incorporated (“Emera”), a company incorporated under the laws of Nova Scotia. NSPI and its predecessor companies have been producing and supplying electricity in Nova Scotia for more than 80 years.

 Inter-corporate Relationship 

NSPI is the primary electricity supplier in Nova Scotia and is a wholly-owned subsidiary of Emera, a Canadian energy holding company. 

GENERAL DEVELOPMENT OF THE BUSINESS 

Three Year History 
 Return on Equity
Decision 
 In January 2010, NSPI reached an agreement with stakeholders on its calculation of regulated return on equity (“ROE”).
The agreement establishes that NSPI will continue to use actual capital structure, actual equity and actual net earnings to calculate actual annual regulated ROE. The agreement further provides NSPI with flexibility in amortizing the pre-2003 income
tax regulatory asset, allowing NSPI to recognize additional amortization amounts in current periods and reducing amounts in future periods. Accordingly, effective December 31, 2009, NSPI recognized an additional discretionary $10 million of
regulatory amortization expense to allow flexibility relating to future customer rate requirements. The agreement was approved by the Nova Scotia Utility and Review Board (the “UARB”). The UARB has set, as a condition, that NSPI will
maintain its average regulated annual common equity at a level no higher than 40% in 2010 and until the next general rate case. 

 Status of Fuel Adjustment Mechanism as of December 31, 2009 

By way of background, the UARB established a fuel adjustment mechanism (the “FAM”) for NSPI in December 2007. The FAM took effect on
January 1, 2009, and includes a formal regulatory process to make annual rate adjustments starting in 2010 that reflect actual increases or decreases in the cost of fuel during the previous year. For more information on the establishment and
mechanics of the FAM, see “2007 Rate Decisions and Fuel Adjustment Mechanism” below. 
 For the year ended December 31, 2009,
actual fuel costs were less than amounts recovered from customers. The difference has been recorded as an expense and accrued to a FAM regulatory liability. NSPI’s fuel expense profile, along with market fluctuations, will impact the FAM
throughout 2010. As a consequence, the FAM balance is subject to change. 
 NSPI has recognized a future income tax recovery related to the FAM
based on NSPI’s applicable statutory income tax rate. 
 As at December 31, 2009, NSPI’s FAM regulatory liability was $9.9
million (2008 - not applicable because the FAM was not in effect in 2008), and the related future income tax asset was $3.4 million (2008 - not applicable). The FAM regulatory liability includes amounts recognized as a fuel adjustment and associated
interest carrying costs included in financing charges. The fuel adjustment includes fuel-related foreign exchange gains and losses that are reported as part of financing charges. 

2010 FAM Rate Adjustment 
 On
November 13, 2009, NSPI asked the UARB to approve a reduction in the fuel costs customers will pay in 2010 under the FAM. The UARB approved the request on December 9, 2009, as a result of which residential customers will see a rate
decrease of 1.4% starting January 1, 2010. For commercial customers, the decrease will range from 1.4 to 2.1%, and 2.0 to 3.3% for industrial customers, depending on rate class. The total rebate to customers was forecast to be approximately $22
million. 
 This forecast reduction will remain in place during 2010 and be adjusted as part of the filing late in 2010, where actual 2009 year
end results will be incorporated in 2011 fuel expense calculations. 
 No Base Rate Increase in 2010 

Changes to base electricity rates, if any, take place separately from FAM adjustments. In mid-2009, NSPI announced that the Company did not plan to
request any increase in base rates for 2010. NSPI has accordingly produced a business plan for 2010 to avoid an increase in 2010 base electricity rates. 
  

 2 

 Integrated Resource Plan Filed with UARB 

On November 30, 2009, NSPI filed the 2009 Integrated Resource Plan (the “IRP”) update as requested by the UARB. The IRP is a stakeholder
driven forecasting and planning tool used to develop long-term plans for meeting Nova Scotia’s electricity requirements. The IRP update process was completed by NSPI, working jointly with UARB staff and consultants, and with stakeholders
representing residential customers, industry, government, and environmental organizations. 
 The 2009 IRP update reflects changes in
assumptions about the economy, the environment, fuel pricing and electricity demand based on stakeholder consensus. The 2009 update follows the direction of the 2007 IRP, identifying three areas important to Nova Scotia’s resource planning over
the next 25 years, namely: 
  

	1.	Conservation and energy efficiency programs; 

  

	2.	Renewable energy sources such as wind, hydro, and biomass; and 

  

	3.	Continued investments in NSPI’s existing facilities. 

The 2009 update uses a 25-year load forecast to model the long-term electricity demand for Nova Scotia. Based on these forecasts, various scenarios are
developed to help determine the ways to meet that demand in a cost-effective, environmentally and regulatory-compliant manner. NSPI is completing construction of the Tufts Cove Generating Station waste heat recovery project in 2010, which was a key
element of the 2007 IRP. This project will see the conversion of two natural gas fired generators from simple cycle to combined cycle by installing a turbine to capture waste heat, producing 50 megawatts of new generation. 

NSPI has developed an updated IRP action plan and will provide annual status reports to the UARB and stakeholders on the action items. 

In Stream Tidal Demonstration Project 

In September 2009, NSPI and OpenHydro Group Limited (“OpenHydro”), an Irish renewable energy company that designs and manufactures marine
turbines for harnessing energy from tidal currents, announced a project to deploy a 1 mega-watt (“MW”) tidal turbine in the Bay of Fundy, Nova Scotia. This 10 metre in-stream tidal turbine was installed on November 12, 2009 and will
be tested for up to 2 years. The testing will focus on the environmental impact and durability of the turbine as well as its energy production capability. NSPI has invested $10 million in the project. The project with OpenHydro is part of
NSPI’s long term approach to explore cleaner, greener energy sources. 
 Emera, NSPI’s parent company, owns an 8.20% equity interest
in OpenHydro. 
 Nuttby Mountain Wind Project 

In April 2009, NSPI purchased the development rights for a proposed 22 turbine, 45 MW wind farm located at Nuttby Mountain, Nova Scotia. The Nuttby
Mountain project development rights were owned by EarthFirst Nuttby Inc., a subsidiary of EarthFirst 
  

 3 

 
Canada Inc. The development rights included land leases and transmission interconnection rights as well as Provincial environmental approval. On September 11, 2009 NSPI filed a capital work
order application and on November 30, 2009 the UARB approved the construction of the Nuttby Mountain Wind Project for inclusion in NSPI’s rate base. Construction of the wind farm commenced in early December 2009 and NSPI plans to complete
the project in late 2010 at an expected cost of approximately $120 million. A turbine supply agreement with ENERCON Canada Inc. for the supply and construction of the 22 wind turbines was executed in late December 2009. 

Point Tupper Wind Development 
 In
November 2009, NSPI signed a project operating agreement regarding the construction and operation of a 23 MW wind farm in Richmond County, Nova Scotia. NSPI will own less than 50% of the project with an independent power producer managing, operating
and maintaining the site. The Point Tupper Wind Farm is among the power purchase agreements signed by NSPI with independent power producers to meet Provincial regulations. The agreement provides the financial support to the project, which remains an
important element in NSPI’s plan to achieve compliance with the Province’s 2011 Renewable Energy Standards. The capital investment of approximately $30 million is subject to the approval of the UARB. 

UARB Approves NSPI Energy Expenditures 

In early April 2009, NSPI filed a plan for energy conservation and efficiency programs for 2010 with the UARB, and in early June 2009 the UARB held a
public hearing on NSPI’s application. The filed programs benefitted from the input of a stakeholder advisory group that included the Ecology Action Center, Conserve Nova Scotia, the UARB-appointed Consumer Advocate, and representatives of
customer groups. 
 The UARB’s August 4, 2009 decision approved a $23 million expenditure by NSPI in conservation programs. A method
of allocating and recovering that expenditure was agreed to by stakeholders representing the majority of customers, and approved by the Board. Rates to recover the costs of conservation and energy efficiency programs are adjusted annually in a
manner similar to the FAM. On October 15, 2009, the UARB approved an adjustment to rates effective 2010 to recover the costs of the 2010 programs. 

Rate Decision in 2008 
 On May 27,
2008, NSPI filed an application with the UARB requesting an increase in electricity rates effective January 1, 2009.
 On
September 15, 2008, NSPI announced that a settlement agreement had been reached with customer group representatives concerning the 2009 electricity rates, subject to review and approval by the UARB. 

On November 5, 2008, the UARB announced its decision to approve this settlement. The decision meant most NSPI customers, including residential and
commercial customers, experienced a rate increase of 9.4% on January 1, 2009. The overall average increase 
  

 4 

 
across all classes was 9.3%. Rates were set for 2009 using a 9.35% ROE and a common equity component of 37.5%.

Income Tax Recovery (2008) 
 During 2008,
NSPI accelerated the deduction of capitalized expenses pertaining to the 2007 tax year. As a result, in 2008 NSPI recorded an income tax recovery of $6.5 million. NSPI will continue to use this methodology in future years. 

2007 Rate Decisions and Fuel Adjustment Mechanism 

In February 2007 the UARB approved an average increase in electricity rates for NSPI of 3.8% effective April 1, 2007. The rate increase was part of a
rate settlement agreement between NSPI and key stakeholders. NSPI’s ROE range remained at 9.3% to 9.8%. A central provision of the settlement was the agreement in principle that the UARB should establish a fuel adjustment mechanism (defined
above as the “FAM”) for NSPI. 
 In December 2007, the UARB issued a decision that conditionally approved and established achievable
conditions for the implementation of the FAM, effective January 1, 2009, with the first rate adjustment under the FAM occurring on January 1, 2010. The UARB will oversee the FAM, including review of all fuel costs, contracts and
transactions. NSPI’s allowed ROE reduced by 0.2%, reducing its allowed earnings band to between 9.1% and 9.6%, with rates set at 9.35%. 

The FAM is subject to an incentive, with NSPI retaining or absorbing 10% of the over or under recovered amount, less the difference between the incentive
threshold and the base fuel cost, to a maximum of $5 million. 
 Income Tax Recovery (2007) 

During 2007, NSPI filed amended tax returns for 2000 to 2004 related to the deductibility of previously capitalized overhead expenses. Canada Revenue
Agency (“CRA”) audited and approved the amended filings for these years. In 2008, NSPI amended its 2005 and 2006 tax returns on the same basis as was used for the 2000 to 2004 years. The amendments have since been processed by CRA. All
material amounts relating to these prior year adjustments were recorded in the 2007 financial statements of NSPI. This resulted in an income tax recovery of $25.4 million in Q3 2007, of which $14.6 million was recorded as a reduction of other assets
and the remaining $10.8 million was recorded as a reduction of income tax expense. In addition, in Q4 2007, NSPI recorded refund interest of $8.6 million, $1.8 million of which was recorded as a reduction of other assets and the remaining $6.8
million was recorded as a reduction of financing charges. NSPI used this methodology in filing its 2007 return and will continue to use this methodology when filing future income tax returns. 

 

 5 

 Financing Activity 

In 2009, NSPI had a debt shelf prospectus and a prospectus supplement (collectively, the “Prospectus”), which together allowed for the issuance
of up to an aggregate of $400,000,000 of either debentures or medium term notes. On December 12, 2008 and January 20, 2009, NSPI made its first and second issues of medium term notes under the Prospectus, representing $150,000,000 and
$50,000,000 respectively in (re-opened) 5.75% Series T notes. On July 27, 2009, NSPI made a further (new) issue of medium term notes under the Prospectus, representing $200,000,000 in 5.95% Series W Notes and bringing the medium term notes
issued under the Prospectus to a total $400,000,000, the maximum issuable under the Prospectus. 
 The Prospectus expired in February, 2010 and
NSPI intends to replace it in the first half of 2010 with a new shelf prospectus and prospectus supplement allowing for the issuance of up to an aggregate of $500,000,000 of debentures, medium term notes, or first or second preferred shares.

 NSPI has established the following available credit facilities: 

 

							
	 	  	 Matures
	  	Maximum 
Amount
(millions of dollars)	 
	 Short-term
	  		  			
	 Operating Credit facility, including support for commercial paper program
	  	June 2010	  	$
	500.0
	1 

  

	1
	 As of December 31, 2009, $264,800,000 was available. 

NARRATIVE DESCRIPTION OF THE BUSINESS 

General 
 NSPI is the primary electricity
supplier in Nova Scotia, providing over 95% of the electricity generation, transmission and distribution in the province. The Company owns 2,293 MW of generating capacity. Approximately 53% is fired by solid fuel; oil and natural gas together
comprise another 29% of capacity; and hydro, wind and biomass production provide approximately 18%. In addition, NSPI has contracts to purchase renewable energy from independent power producers (“IPP”). These IPP’s own 137 MW of wind
and biomass fuelled generation capacity. A further 212 MW of renewable capacity is being built directly or purchased under long-term contracts by NSPI, of which 163 MW are expected to be in service by the end of 2010. NSPI also owns approximately
5,000 kilometres of transmission facilities, and approximately 27,000 kilometres of distribution facilities. The Company has a workforce of approximately 1,900 people. 

NSPI is a public utility as defined in the Public Utilities Act (Nova Scotia) (the “Public Utilities Act”) and is subject to regulation
under the Public Utilities Act by the UARB. The Public Utilities Act gives the UARB oversight authority with respect to NSPI’s operations and expenditures. Electricity rates for NSPI’s customers are also subject to UARB approval. NSPI is
not subject to a mandatory annual rate review process, but rather participates in hearings from time to time, which may be at NSPI’s or the regulator’s 

 

 6 

 
request. Since January 2009, NSPI has been operating with a FAM for fuel expense recovery, which is subject to UARB review and approval. 

Electric sales volume is primarily driven by general economic conditions, population and weather. Electricity rates change as new regulatory decisions
are implemented. For certain large industrial customers, rates may change annually based on a cost-based rate formulae approved by the UARB. Residential and commercial electricity sales are seasonal in Nova Scotia, with Q1 and Q4 the strongest
periods, as a result of colder weather, and fewer daylight hours in the winter season. For information describing the revenue generated for the two years ended December 2009 and December 2008, see the “Electric Revenue” section of
NSPI’s Management Discussion and Analysis (the “MD&A”) for the year ended December 31, 2009. 
 Changes to base
electricity rates, if any, take place separately from FAM adjustments. On May 1, 2009, NSPI announced that the Company did not plan to request any increase in base rates for 2010. Accordingly, NSPI has not sought an increase in 2010 base
electricity rates. 
 For the year ended December 31, 2009, actual fuel costs were less than amounts recovered from customers. The
difference has been recorded as an expense and accrued as a FAM regulatory liability. NSPI’s fuel expense profile, along with market fluctuations, will impact the FAM during 2010. As a consequence, the FAM balance is subject to change.

 Area Served 
 Nova Scotia is
the most populous of the four Atlantic Provinces of Canada and covers 55,284 square kilometres of land and freshwater. As reported by Statistics Canada, Nova Scotia’s population was estimated at 938,200 as of July 1, 2009, or 2.78 percent
of Canada’s population. 
 Energy Sources 

NSPI’s energy sources for its electric energy generation are coal, petroleum coke, natural gas, heavy fuel oil, hydroelectric energy, light fuel oil
(gas turbine), biomass and wind. NSPI also purchases electric energy from neighbouring markets outside Nova Scotia and independent power producers in Nova Scotia. 

Comparative costs of fuel sources fluctuate from year to year. For information describing the percentage of total electric energy generated by fuel
source and for information related to the cost of electricity generation, see the “Fuel Expense” section of NSPI’s MD&A for the year ended December 31, 2009. 

Transmission and Distribution 
 NSPI
transmits and distributes electricity from its generating stations to its customers. NSPI’s transmission system consists of approximately 5,000 km of transmission lines including major substations at Lingan, Woodbine, Port Hastings, Hopewell,
Onslow, Brushy Hill, and Bridgewater connected solely to transmission lines and its distribution system. The distribution system consists of 

 

 7 

 
approximately 27,000 km of distribution lines and distribution supply substations. 

System Operations and Generation 
 The
NSPI system control centre, located in Halifax, co-ordinates and controls the electric generation and transmission facilities with the goal of providing a reliable and secure electricity supply while maintaining economy of operations. The system
control centre is linked to the generating stations and other key parts of the system by the SCADA (Supervisory Control and Data Acquisition) system, a voice and data communications network. 

Through an interconnection agreement with Énergie NB Power, NSPI’s system has access to other regional power systems and the rest of the
interconnected North American bulk power systems. This interconnection of power systems enhances the cost effectiveness, efficiency, reserve capacity and reliability of all participating power systems. The interconnection agreement also provides
both utilities with an alternative source of power, subject to availability and the requirements of the supplier. 
 NSPI is a member of the
Northeast Power Coordinating Council, Inc. (“NPCC”), a body whose primary role is promoting the reliability of the interconnected power systems throughout the northeastern United States and eastern Canada. NSPI’s system complies with
NPCC criteria for the design and operation of interconnected power systems. 
 NSPI has the following generating facilities: 

 

	 	•	 	 Four solid-fuel generating stations located at Lingan, Point Tupper, Trenton, and Point Aconi; 

 

	 	•	 	 One heavy-fuel oil and/or natural gas-fired facility and two gas-fired combustion turbines at Tufts Cove generating station;

  

	 	•	 	 Three gas turbine facilities located at Burnside, Tusket, and Victoria Junction; 

 

	 	•	 	 33 hydro plants located on 17 river systems throughout Nova Scotia, including Wreck Cove, the Halifax area, the Annapolis Valley and western Nova
Scotia; 

  

	 	•	 	 Annapolis Tidal Power Station. 

NSPI also contracts with independent power producers and has its own wind power capacity. 

With the exception of Point Aconi, all of NSPI’s solid-fuel-fired generating stations can also burn heavy fuel oil, subject to oil delivery and
storage constraints. This dual-fired capacity provides some security if solid-fuel supplies are interrupted. 
 For further details see the
“Fuel for Generation and Purchased Power” section of the MD&A. 
  

 8 

 New Head Office 

Construction commenced in 2009 on NSPI’s new downtown office building at the former Lower Water Street Generating Station, in Halifax. The head
offices of Emera and NSPI will relocate to this location on Lower Water Street when the building opens in 2011. 
 Regulatory Matters 

 Electricity Rates & Return on Equity 

NSPI is regulated under a cost of service model, with rates set to cover prudently incurred costs of providing electricity service to customers, and
provide a fair return to investors. 
 For further details, see “Return on Equity Decision”, “Status of Fuel Adjustment Mechanism
as of December 31, 2009”, “2010 FAM Rate Adjustment”, “No Base Rate Increase in 2010”, “UARB Approves NSPI Energy Expenditures”, “Rate Decision in 2008” and “2007 Rate Decisions and Fuel
Adjustment Mechanism” under the heading “General Development of the Business” above. 
 Capital Expenditures 

The Public Utilities Act allows NSPI to file an Annual Capital Expenditure Plan (the “Capital Plan”) with the UARB for approval. Once approved
by the UARB, items for individual projects expenditures forecast not to exceed $1 million do not require further UARB approval. Items included in the Capital Plan for $1 million or more and items not included in the Capital Plan which exceed $25,000
require individual UARB approval. The 2010 capital expenditure program is currently under review by the UARB. 
 NSPI’s rate base includes
net utility plant in service, construction work in progress, deferred charges and credits, an allowance for materials and supplies and an allowance for working capital. The net utility plant in service consists of the utility plant at its original
cost less accumulated depreciation. 
 The UARB prescribes depreciation rates and accounting policies. Depreciation rates are reviewed
periodically. During 2003, following completion of a depreciation study, and a negotiated agreement with stakeholders, the UARB approved a $20 million increase in annual depreciation expense, to be phased in over four years beginning in 2004. In its
2005 Rate Application decision, the UARB deferred the second year of the phase-in by one year. In the 2006 Rate Application decision, the UARB approved resumption of the phase-in of depreciation rates. The settlement approved by the UARB on
February 5, 2007 delayed further phase-in of depreciation rates until the next general rate application. In its November 5, 2008 decision, the UARB approved the third stage of the phase-in effective January 1, 2009. 

 

 9 

 Employee Relations 

NSPI had approximately 1,900 employees on December 31, 2009, approximately fifty percent of whom are unionized. There have been no labour disruptions
since 1975. In August 2007, NSPI reached an agreement with approximately 900 unionized employees, replacing the contract that expired on July 31, 2007. The new agreement is for 56 months and will expire in March 2012. 

Environmental Matters 
 NSPI is subject
to environmental regulation at both the federal and provincial levels. NSPI is in material compliance with current environmental regulations. 

In mid 2009 the Province of Nova Scotia set greenhouse gas (GHG) emission limits covering the period from 2010 to 2020. This makes Nova Scotia the first
jurisdiction in Canada to have “hard caps” for GHG emissions. The GHG target requires a reduction of 25% from 2010 levels by the year 2020. 

The provincial regulations for renewable energy require 25% of the energy to be produced from renewable sources by 2015, including the 10% which exists
in Nova Scotia today. NSPI has completed the installation of mercury abatement systems at three of its solid fuel generating stations to ensure compliance with environmental regulations which became effective on January 1, 2010. 

Over the last several years, NSPI has been working on a plan to enable it to meet or exceed new government targets. While the government’s target
for GHG emissions is aggressive, it is in line with the Company’s planning. NSPI is fully engaged to achieve this target, and is working cooperatively with government and other stakeholders to meet Nova Scotia’s Renewable Energy Standards
(the “RES”) and the GHG emission limits. 
 All required permits are in place for NSPI’s generating stations. These permits are
generally for a ten year period but can be subject to review, variation, or suspension by the Minister of Environment (Nova Scotia). 
 The UARB
has authorized required environmental expenditures and the recovery of those expenditures through rates. The UARB has confirmed that it will approve costs associated with environmental compliance required by law within the rates customers pay for
electricity. 
 For further information, see the “Environment” section of the MD&A. 

Taxation 
 See the “Provincial
Grants and Taxes” and “Income Taxes” sections of the MD&A. 
 Risk Factors 

See the “Risk Management and Financial Instruments” and “Business Risks” sections of the MD&A. 

 

 10 

 LEGAL PROCEEDINGS AND REGULATORY ACTIONS 

There are no legal proceedings that individually or together involve claims against NSPI for damages totalling 10% or more of the current assets of NSPI,
exclusive of interest and costs. 
 NO INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS 

None of the following persons or companies, namely (a) a Director or Officer of NSPI; (b) a person or company that is the direct or indirect
beneficial owner of, or who exercises control or direction over, more than 10% of any class or series of NSPI’s outstanding voting securities, or (c) an associate or affiliate of any person or company named in (a) or (b), had a
material interest in any transaction involving NSPI within NSPI’s last three completed financial years or during the current financial year that has materially affected or will materially affect NSPI. 

MATERIAL CONTRACTS 
 NSPI
has no material contracts other than those entered into in the ordinary course of its business. 
 MANAGEMENT’S
DISCUSSION AND ANALYSIS 
 The MD&A for the financial year ended December 31, 2009 is incorporated herein by reference. 

DIVIDENDS 
 Any dividend
payments will be at the Board of Directors’ discretion based upon earnings and capital requirements and such other factors as the Board of Directors may consider relevant. 

Each Series C First Preferred Share was entitled to a $1.225 per share per annum fixed cumulative preferential cash dividend, as and when declared by the
Board of Directors, accruing from the date of issue and payable quarterly on the first day of January, April, July and September of each year. On April 1, 2009, NSPI redeemed all of the outstanding Series C First Preferred Shares. After the
redemption, the former holdings of the Series C First Preferred Shares were no longer entitled to dividends. 
 Each Series D First Preferred
share is entitled to a $1.475 per share per annum fixed cumulative preferential cash dividend, as and when declared by the Board of Directors, accruing from the date of issue and payable quarterly on the 15th day of January, April, July and October
of each year. 
  

 11 

 The Board of Directors approved payment of the following dividends during the last three completed fiscal
years: 
  

									
	 Shares
	  	Fiscal Year	  	 Record Date
	  	 Date Paid
	  	Dividend (per
share)
	 Series C First Preferred
	  	2009	  	 December 18, 2008

March 18, 2009
	  	 January 1, 2009

April 1, 2009
	  	0.30625
 0.30625

					
		  	2008	  	 December 18, 2007

March 18, 2008

June 17, 2008

September 17, 2008
	  	 January 1, 2008

April 1, 2008
 July
1, 2008
 October 1, 2008
	  	0.30625
 0.30625

0.30625
 0.30625

					
		  	2007	  	 December 18, 2006

March 16, 2007

June 17, 2007

September 17, 2007
	  	 January 1, 2007

April 1, 2007
 July
1, 2007
 October 1, 2007
	  	0.30625
 0.30625

0.30625
 0.30625

					
	 Series D First Preferred
	  	2009	  	 January 1, 2009

April 1, 2009
 June
1, 2009
 October 1, 2009
	  	 January 15, 2009

April 15, 2009

July 15, 2009

October 15, 2009
	  	0.36875
 0.36875

0.36875
 0.36875

					
		  	2008	  	 December 31, 2007

April 1, 2008
 June
30, 2008
 October 1, 2008
	  	 January 15, 2008

April 15, 2008

July 15, 2008

October 15, 2008
	  	0.36875
 0.36875

0.36875
 0.36875

					
		  	2007	  	 December 29, 2006

March 30, 2007

June 29, 2007

October 1, 2007
	  	 January 15, 2007

April 15, 2007

July 15, 2007

October 15, 2007
	  	0.36875
 0.36875

0.36875
 0.36875

 NSPI paid dividends on its common shares which are all held, directly and indirectly, by Emera Inc., as follows: in 2009 -
$126 million; in 2008 - $75 million; and in 2007 - $193 million. 
 On February 10, 2010, the Board of Directors approved a quarterly
dividend of $0.36875 per Series D First Preferred Share, payable on or after April 15, 2010, to the Series D First Preferred Shareholders of record on April 1, 2010. 

CAPITAL STRUCTURE 
 The
authorized capital of NSPI consists of an unlimited number of First Preferred Shares, Second Preferred Shares and Common Shares, all without nominal or par value. The Preferred Shares rank in priority to the Common Shares. All of the outstanding
Preferred Shares and Common Shares of NSPI are fully paid and non-assessable. The Series C First Preferred Shares were listed on The Toronto Stock Exchange (the “TSX”) under the symbol NSI.PR.C until their redemption on April 1, 2009,
and the outstanding Series D First Preferred Shares are listed on the TSX under the symbol NSI.PR.D. All of the Common Shares of NSPI are owned directly or indirectly by Emera. The Common Shares carry one vote per share and, subject to the prior
rights of holders of the Preferred Shares, each Common Share entitles the holder to share rateably in any dividends or other distributions to the shareholders. The Preferred Shares do not carry the right to vote except in certain circumstances.

  

 12 

 NSPI’s issued share capital as at December 31, 2009 is $1,069,659,098 comprised as follows:

  

				
	 Common Shares (106.8 million, 100% owned directly or indirectly by Emera)
	  	$	934,659,098
		
	 Series D First Preferred Shares (5.4 million issued and outstanding)
	  	$	135,000,000

 Common Shares Issued To
Emera 
 Effective December 15, 2009, Emera, NSPI’s parent company, invested $4,052,500 in tax losses in NSPI in exchange for
405,250 new common shares issued by NSPI, which are reflected in the issued share capital as at December 31, 2009 set out above. 

Series C First Preferred Shares 
 On
April 1, 2009, pursuant to a notice issued to the holders of the Series C First Preferred Shares, NSPI redeemed all of its outstanding Series C First Preferred Shares for a redemption price of $25.00 per share. 

Series D First Preferred Shares 
 NSPI
has issued and outstanding 5.4 million 5.90% Cumulative Redeemable First Preferred Shares, Series D (“Series D First Preferred Shares”). Each Series D First Preferred Share is entitled to a $1.475 (5.90%) per share per annum
fixed cumulative preferential dividend, as and when declared by the NSPI Board of Directors, accruing from the date of issue and payable quarterly on the fifteenth day of January, April, July and October of each year. Subject to the provisions of
the Companies Act (Nova Scotia), on and after October 15, 2015, Series D First Preferred Shares are redeemable by NSPI on prior notice, in whole or in part, at $25.00 per Series D First Preferred Share, plus accrued and unpaid dividends.

 Subject to the approval of The Toronto Stock Exchange, commencing October 15, 2015, NSPI also has the option to exchange the Series D
First Preferred Shares into that number of Emera common shares determined by dividing $25.00, together with accrued and unpaid dividends, by the greater of $2.00 and 95% of the weighted average trading price of the Emera common shares on The Toronto
Stock Exchange for the twenty trading days ending on the last trading day on or before the fourth trading day immediately prior to the time of exchange (“Market Price”). 

On and after January 15, 2016, upon sixty-five days’ prior notice and prior to any dividend payment date, each Series D First Preferred Share
will be exchangeable, at the option of the holder, into that number of Emera common shares determined by dividing $25.00, together with accrued and unpaid dividends, by the greater of $2.00 and the Market Price. This exchange right of the holder is
subject to the right of NSPI to redeem for cash on the exchange date, or cause the holders to sell on the exchange date to substitute purchasers found by NSPI, all or any part of such Series D First Preferred Shares, on the payment of $25.00 per
share, together with accrued and unpaid dividends. 
  

 13 

 Ratings 

NSPI has the following credit ratings: 
  

													
	 	  	 DBRS
	  	 Moody’s
	  	 S&P

	 	  	 2009
	  	 2008
	  	 2009
	  	2008	  	 2009
	  	 2008

	 Corporate
	  	N/A	  	N/A	  	Baa1	  	Baa1	  	BBB+	  	BBB
	 Senior unsecured debt
	  	A (low)	  	A (low)	  	Baa1	  	Baa1	  	BBB+	  	BBB
	 Preferred Shares
	  	Pfd-2 (low)	  	Pfd-2 (low)	  	N/A	  	N/A	  	P-2 (Low)	  	P-3 (high)
	 Commercial paper
	  	R-1 (low)	  	R-1 (low)	  	P-2	  	P-2	  	A-1 (Low)	  	A-2 (Cdn)

 NSPI’s debt has been rated by
Dominion Bond Rating Service Limited (“DBRS”), Moody’s Investors Service (“Moody’s”), and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) (collectively the
“Rating Agencies” and each a “Rating Agency”). Ratings are intended to provide investors with an independent measure of the credit quality of an issue of securities. 

DBRS 
 The rating of A (low) from DBRS
with respect to senior unsecured debt is characterized as “satisfactory credit quality” and is the third highest of ten available rating categories. 

The rating of Pfd-2 (low) from DBRS with respect to NSPI’s preferred shares is characterized as “satisfactory credit quality” and is the
second highest of six available rating categories. 
 The rating of R-1 (low) from DBRS with respect to NSPI’s commercial paper is
characterized as “satisfactory credit quality” and is the third highest of ten available rating categories. 
 There were no changes
in DBRS ratings for NSPI in 2008 and 2009. 
 Moody’s 

The rating of Baa1 from Moody’s with respect to corporate and senior unsecured debt is characterized as “moderate credit risk” and is the
fourth highest of nine available rating categories. 
 In Q4 2009 Moody’s issued a credit opinion for NSPI. In the report Moody states that
NSPI’s stable ratings outlook reflects Moody’s belief that any weakening of NSPI’s credit metrics during 2009 and 2010 will be temporary and that by 2011, NSPI will generate cash flows within its historical ranges. 

 

 14 

 The rating of P-2 from Moody’s with respect to commercial paper is characterized as “a strong
ability to repay short term debt obligations” and is the second highest of four available rating categories. 
 In March 2010, and with
NSPI’s concurrence, Moody’s withdrew its corporate rating of NSPI and its rating of NSPI’s senior unsecured debt and commercial paper. 

S&P 
 The rating of BBB+ obtained in
respect of the corporate and senior unsecured debt from S&P is characterized as “exhibiting adequate protection parameters” and is the fourth highest of ten available rating categories. 

The rating of P-2 (Low) from S&P with respect to NSPI’s preferred shares corresponds to S&P’s debt rating scale criteria for BBB-.

 The rating of A-1 (Low) from S&P with respect to NSPI’s commercial paper indicates the obligor’s capacity to meet its financial
commitment on the obligation is strong. 
 In Q3 2009 S&P raised the long term corporate ratings for NSPI from BBB to BBB+. The upgrade
reflects what S&P views as the successful introduction of a fuel adjustment mechanism at NSPI and expected improvements in the company’s liquidity. The stable outlook for NSPI reflects S&P’s expectation that key credit metrics will
modestly improve in 2010. 
 The credit ratings assigned by the Rating Agencies are not recommendations to buy, sell or hold securities inasmuch
as such ratings do not comment as to relevant price or suitability for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a
Rating Agency in the future if in its judgment circumstances so warrant. 
  

 15 

 MARKET FOR SECURITIES 

Trading Price and Volume 
 NSPI’s
Common Shares are directly or indirectly owned by Emera and are not publicly traded. NSPI’s Series D First Preferred Shares are listed and posted for trading on the TSX under the symbol “NSI.PR.D”. The trading volume for the Series D
First Preferred Shares and their high and low price for each month of 2009 are set out below: 
 NSPI Preferred Series
“D” 
  

							
	 2009
	  	High	  	Low	  	Volume
	 January
	  	27.0	  	25.0	  	200,800
	 February
	  	26.55	  	25.55	  	39,060
	 March
	  	29.46	  	26.5	  	33,640
	 April
	  	30.0	  	27.5	  	27,004
	 May
	  	30.24	  	29.0	  	14,240
	 June
	  	29.9	  	27.75	  	29,256
	 July
	  	27.75	  	25.3	  	60,549
	 August
	  	29.49	  	26.6	  	49,388
	 September
	  	30.22	  	26.99	  	9,816
	 October
	  	29.28	  	27.10	  	38,500
	 November
	  	28.60	  	27.85	  	6,700
	 December
	  	28.61	  	28.00	  	61,100
		  		  		  	 
	 Total
	  		  		  	570,053
		  		  		  	 

 Common Shares Issued To Emera 

Effective December 15, 2009, Emera, NSPI’s parent company, invested $4,052,500 in tax losses in NSPI in exchange for 405,250 new common shares
issued by NSPI. 
 TRANSFER AGENT AND REGISTRAR 

Computershare Trust Company of Canada (“Computershare”) acts as NSPI’s transfer agent and registrar. The registers of transfers of
securities of NSPI are located at Computershare’s principal offices in Vancouver, Calgary, Winnipeg, Toronto, Montreal and Halifax. 

DIRECTORS AND OFFICERS 

Directors 
 The following sets out, as of
December 31, 2009, for each Director the name, principal occupation for the past five (5) years, municipality of residence and the date of appointment. Directors are elected annually and hold office until the next annual shareholders’
meeting. 
 Wesley G. Armour: Mr. Armour is the President and Chief Executive Officer of Armour Transportation
Systems, which provides trucking, warehousing, and courier services in Atlantic Canada. Mr. Armour became a Director in November 2005 and is a member of the Audit, Nominating and Corporate Governance Committee and a member of the Management
Resources, Compensation, Environment, Safety and Security Committee. Mr. Armour lives in Moncton, New Brunswick. 
  

 16 

 Robert R. Bennett: Mr. Bennett was appointed President and Chief Executive
Officer in June 2008. From September 2007 to June 2008, he served as Executive Vice-President, Revenue and Sustainability. From September 2005 to June 2007, he served as President and Chief Operating Officer of Bangor Hydro-Electric Company
(“Bangor Hydro”). Before that he held the position of Vice President and General Manager from January 5, 2005, and General Manager Transmission & Distribution Asset Management from June 3, 2002, both with Bangor Hydro.
Mr. Bennett resides in Halifax, Nova Scotia. 
 George A. Caines, Q.C.: Mr. Caines is a partner with the Halifax
office of the law firm Stewart McKelvey. Mr. Caines has been a Director of the Company since April 1995. He assumed the position of Chair of the Board effective May 6, 2009. Mr. Caines lives in Halifax, Nova Scotia. 

R. Irene d’Entremont, C.M.: Mrs. d’Entremont is President of ITG Information Management Inc., business and
management services consultants. She lives in Yarmouth, Nova Scotia, became a Director of the Company in April 1995, and is currently the Chair of the Management Resources, Compensation, Environment, Safety and Security Committee.
Mrs. d’Entremont is also a member of the Audit, Nominating and Corporate Governance Committee. 
 James D.
Eisenhauer: Mr. Eisenhauer is Chairman and Chief Executive Officer of ABCO Group Limited, which has holdings in manufacturing and distribution activities. Mr. Eisenhauer became a Director in September 2008 and is a member of the Audit,
Nominating and Corporate Governance Committee and a member of the Management Resources, Compensation, Environment, Safety and Security Committee. Mr. Eisenhauer lives in Lunenburg, Nova Scotia. 

Christopher G. Huskilson: Mr. Huskilson has been a Director and the President and Chief Executive Officer of Emera since
November 2004. He is also Chair of Bangor Hydro, a Director of NSPI and serves as the Chair or as a Director of a number of other Emera affiliated companies. Mr. Huskilson has held a number of positions within NSPI and its predecessor, Nova
Scotia Power Corporation, since June 1980. Mr. Huskilson lives in Wellington, Nova Scotia. 
 John T. McLennan:
Mr. McLennan has been a Director of the Company since April 2005, and was Chair of the Board from May 2006 to May 6, 2009. Mr. McLennan is a member of the Management Resources, Compensation, Environment, Safety and Security Committee,
and the Audit, Nominating and Corporate Governance Committee. Mr. McLennan was the Vice-Chair and Chief Executive Officer of Allstream Inc. from May 2000 to June 2004. He currently sits on the Board of Jazz Air Holding GP Inc. and Amdocs Ltd.
Mr. McLennan lives in Mahone Bay, Nova Scotia.  
 Derek Oland, O.C.: Mr. Oland has been a Director of
NSPI since April 1992 and was Chairman of NSPI from April 1995 to May 2006. He is a member of the Management Resources, Compensation, Environment, Safety and Security Committee, and 

 

 17 

 
the Audit, Nominating and Corporate Governance Committee. Mr. Oland is Executive Chairman of Moosehead Breweries Limited. Mr. Oland is Chairman of the New Brunswick Business Council and
the Wallace McCain Institute for Business Leadership. He lives in New River Beach, New Brunswick. 
 Marie Rounding:
Ms. Rounding currently serves as Counsel to Gowling Lafleur Henderson LLP, where she is a member of the National Energy and Infrastructure Industry Group. She became a Director in January 2007. Ms. Rounding is the former President and
Chief Executive Officer of the Canadian Gas Association (from 1998 to 2003) and the former Chair of the Ontario Energy Board (1992 to 1998). She was Senior Advisor to Elenchus Research Associates, an energy consulting company from 2003 to 2006.
Ms. Rounding is a member of the Management Resources, Compensation, Environment, Safety and Security Committee, and the Audit, Nominating and Corporate Governance Committee. She assumed the position of Chair of the Audit, Nominating and
Corporate Governance Committee on May 4, 2009. Ms. Rounding lives in Toronto, Ontario. 
 NSPI has an Audit, Nominating and Corporate
Governance Committee and a Management Resources, Compensation, Environment, Safety and Security Committee. The membership of each of these Committees is indicated above. 

Audit, Nominating and Corporate Governance Committee 

The Audit, Nominating and Corporate Governance Committee of the Company is composed of the following six members, all of whom are independent Directors:
Marie Rounding (Chair), Wesley G. Armour, Jim Eisenhauer, Irene d’Entremont, John McLennan and Derek Oland. The responsibilities and duties of the Committee are set out in the Committee’s current Charter, a copy of which is attached as
Appendix “A” to this Annual Information Form. 
 The Board of Directors believes that the composition of the Committee reflects a high
level of financial literacy and experience. Each member of the Committee has been determined by the Board to be “independent” and “financially literate” as such terms are defined under Canadian securities laws. The Board has made
these determinations based on the education and breadth and depth of experience of each member of the Committee. The following is a description of the education and experience of each member of the Committee that is relevant to the performance of
her or his responsibilities as a member of the Audit Committee. 
 Marie Rounding currently serves as Counsel to Gowling Lafleur Henderson LLP,
a leading Canadian law firm, where she is a member of the National Energy and Infrastructure Industry Group. She is the former President and Chief Executive Officer of the Canadian Gas Association. Prior to that, she served over six years as Chair
of the Ontario Energy Board, the quasi-judicial body that regulates that province’s electricity and natural gas sectors. She is also a former Chair of the Canadian Association of Members of Public Utility Tribunals (CAMPUT). She is a Director
of Ontario Power Generation Inc. In addition, she is a member of Independent Review Committees for investment funds managed by Sentry Select Capital Inc. and Vertex One Asset Management Inc. 

 

 18 

 
Ms. Rounding has graduated from the Directors Education Program and Financial Literacy Program, both jointly sponsored by the Institute of Corporate Directors, and the Rotman School of
Management Corporate Governance College. She is also designated an Institute-certified director, ICD.D. 
 Mr. Armour is the President and
Chief Executive Officer of Armour Transportation Systems, which provides trucking, warehousing, and courier services in Atlantic Canada. With over 40 years of experience in the transportation industry, Mr. Armour is Past President and a current
Director of the Atlantic Provinces Trucking Association, as well as Past President, Past Chairman of the Board and a current Director of the Canadian Trucking Alliance. He has also served as treasurer for the Canadian Trucking Association and the
Atlantic Provinces Trucking Association. Mr. Armour is a graduate of the Saint John Institute of Technology (Business Administration). 

Mrs. d’Entremont is President of ITG Information Management Inc., business and management services consultants. She is past President of M.I.T.
Electronics Inc. of Yarmouth, Nova Scotia, a research and development company in the manufacturing of electronics products for the marine industry. She has held several directorships, including having served as a Director of the Atlantic Canada
Opportunities Agency, Marine Atlantic Inc., the Nova Scotia Advisory Board of Colleges and Universities, and Nova Scotia Business Development Corporation where she chaired the Finance Committee. Mrs. d’Entremont was a member of the Law
Commission of Canada from 2000 to 2006. She has served on the Board of the Aerospace and Defence Industries Association of Nova Scotia since 2004. She has served as President of the Yarmouth Chamber of Commerce, Chair of the Nova Scotia Chamber of
Commerce, Chair of the Atlantic Provinces Chamber of Commerce, and has been a member of the Canadian Chamber of Commerce. From 1999 to 2002, Mrs. d’Entremont served as a member of the Revenue Canada E-Commerce Technical Advisory Committee.
In 1995, she received an Honorary Doctor of Commerce Degree from Saint Mary’s University in Halifax. 
 James D. Eisenhauer is Chairman and
Chief Executive Officer of ABCO Group Limited, which has holdings in manufacturing and distribution activities. Mr. Eisenhauer is a graduate of both the Nova Scotia Technical College and Dalhousie University. He is a Professional Engineer and a
Fellow of the Institute of Chartered Accountants of Nova Scotia. Mr. Eisenhauer has 30 years of industry experience, and has served on Boards of Directors in both the private and public sectors. He is presently a Board Member of Atlantic
Industries Limited (Chair of the Audit Committee), Vice-Chair of the Board of Nova Scotia Business Inc. (and former Chair of the Investment Committee), and a Board Member of Composites Atlantic Limited. 

Mr. McLennan is the former Vice-Chair and Chief Executive Officer of Allstream Inc. (formerly AT&T Canada), a telecommunications company. He
holds Bachelor of Science, Master of Science and Honorary Doctorate of Science degrees from Clarkson University in New York. Mr. McLennan was President and Chief Executive Officer of Bell Canada, and before that he was President of Bell Ontario
from 1993 to 1994. From 1990 to 1993, he served as President and Chief Executive Officer of BCE Mobile Communications Inc. Mr. McLennan served as President and Chief Executive Officer at Cantel Inc. and he is the founder and was

  

 19 

 
President of Jenmark Consulting Inc. He also served as Executive Vice President of Mitel Communications Inc. Mr. McLennan currently sits on the board of directors of Jazz Air Holding GP Inc.
and Amdocs Ltd. 
 Mr. Oland is the Executive Chairman of Moosehead Breweries Limited, and was the Chairman of the Board of Emera and NSPI.
He is a graduate of the University of New Brunswick with a Bachelor of Business Administration, and the Harvard Business School’s Owner/President Management Program. Mr. Oland is a retired member of the audit committees of Royal &
Sun Alliance Insurance Company of Canada and was the Chairman of The Johnson Corporation and Unifund Assurance Company. 
 Audit and
Non-Audit Services Pre-Approval Process 
 The Committee is responsible for the oversight of the work of the external auditors. As part of
this responsibility, the Committee is required to pre-approve the audit and non-audit services performed by the external auditors in order to assure that they do not impair the external auditors’ independence from the Company. Accordingly, the
Committee has adopted an Audit and Non-Audit Pre-Approval Policy, which sets forth the procedures and the conditions pursuant to which services proposed to be performed by the external auditors may be pre-approved. 

Unless a type of service has received the pre-approval of the Committee it will require specific pre-approval by the Committee if it is to be provided by
the external auditors. Any proposed services exceeding the pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Committee. 

The Committee considers whether the provision of any service raises an issue regarding the independence of the external auditors. 

Certain Proceedings 
 To the knowledge of
the Company, none of the Directors of the Company: 
  

	1.	are, as at the date of this Annual Information Form, or have been, within ten years before the date of this Annual Information Form, a director, chief executive officer
or chief financial officer of any company that: 

  

	 	(a)	was subject to a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities
legislation that was in effect for a period of more than 30 consecutive days (an “Order”) that was issued while the Director was acting in the capacity as director, chief executive officer or chief financial officer; or

  

	 	(b)	was subject to an Order that was issued after the Director ceased to be a director, chief executive officer or chief financial officer and which resulted from an event
that occurred while that person was acting in the capacity as director, chief executive officer of chief financial officer, 

  

 20 

	 	2.	are, as at the date of this Annual Information Form, or have been within ten years before the date of this Annual Information Form, a director or executive officer of
any company that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or
instituted any proceedings, arrangements or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or 

  

	 	3.	have, within the ten years before the date of this Annual Information Form, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency,
or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed nominee, except as follows: 

John T. McLennan was the Chief Executive Officer of AT&T Canada when AT&T Canada filed for protection under the
Companies’ Creditors Arrangement Act on October 15, 2002. 
 Auditors’ Fees 

The aggregate fees billed by Grant Thornton LLP, the Company’s auditors, during the fiscal years ended December 31, 2009 and 2008 were as
follows: 
  

							
	 Service Fee
	  	2009	  	2008
	 Audit Fees
	  	$	194,450	  	$	186,699
	 Audit-related Fees
	  	$	51,120	  	$	85,605
	 Tax Fees
	  	$	13,250	  	$	6,500
	 All Other Fees
	  	 	Nil	  	 	Nil
		  	 	 	  	 	 
	 Total
	  	$	261,820	  	$	278,804
		  	 	 	  	 	 

 Audit-related Fees for NSPI relate to accounting and disclosure
consultations, services associated with securities offerings, French translation and other specified attest services. 
 Tax Fees are for tax
compliance on corporation income tax returns. 
 Executive Officers 

The Executive Officers of NSPI as of December 31, 2009 were as follows: 

Mr. Robert R. Bennett was appointed President and Chief Executive Officer in June 2008. From September 2007 to June 2008 he
served as Executive Vice-President, Revenue and Sustainability. From September 2005 to June 2007, he served as President and Chief Operating Officer of Bangor Hydro. He held the position of Vice President and General Manager of Bangor
Hydro from January 5, 2005 to September 2005, and prior to that he served as General Manager Transmission & Distribution Asset Management of Bangor Hydro. He resides in Halifax, Nova Scotia. 

 

 21 

 Ms. Sarah MacDonald was Vice President Human Resources and has served as an Officer of
the Company since September 2008. From 2004 to the present, she has also served as the Vice President Human Resources with Emera. Ms. MacDonald resides in Halifax, Nova Scotia. 

Ms. Nancy G. Tower was Chief Financial Officer and has served as an Officer of the Company since 2005. In 2004, she was
Vice President Customer Operations. Ms. Tower resides in Halifax, Nova Scotia. 
 Mr. Richard C. Janega was
appointed Executive Vice President and Chief Operating Officer in July 2008. From September 2007 to July 2008 he served as Vice President Operations. From April 2007 to September 2007 he served as Vice President Power
Production. From 2004 to April 2007 he served as General Manager of Power Production. Mr. Janega resides in Bedford, Nova Scotia. 

Mr. Robin McAdam was appointed Executive Vice President Sustainability in January 2009, with overall responsibility for increasing
the use of renewable and low carbon fuel for generation. Prior to that he served as President of Emera Brunswick Pipeline Company Ltd. (“EBPC”) since 2007, and he continues to serve as a member of the EBPC Board of Directors. Since joining
Emera in 1998, Robin has worked on various M&A initiatives and greenfield development projects for Emera-affiliated companies. Mr. McAdam resides in Halifax, Nova Scotia. 

Mr. Alan Richardson was appointed Vice President Integrated Customer Services in November 2009. He served as Vice President
Commercial Operations from September 2007 until this appointment. From February 2005 until February 2007, he was General Manager Customer Service. Mr. Richardson was appointed Interim General Manager Strategy Advancement in September 2003, and
prior to that, held the position of Director Business Development with Emera Energy starting in January 2002. Mr. Richardson resides in Lower Sackville, Nova Scotia. 

Mr. Mark Savory was appointed Vice President Technical and Construction Services in October 2008. He has also served as Vice
President, Engineering and Construction of Emera since February 2008. From July 2006 to February 2008, he was Director, Asset Management with Emera. From December 2003 to July 2006 he was Director, Control Centre, NSPI.
Mr. Savory resides in Lower Sackville, Nova Scotia. 
 Mr. Richard J. Smith was Vice President Corporate Insurance
and Asset Protection, a position he has held since September 2008. Before that Mr. Smith was Corporate Secretary and has been an Officer of the Company since 1992. Mr. Smith resides in Halifax, Nova Scotia. 

Mr. James Spurr was General Counsel since April 2008. From September 2007 to April 2008, he served as Assistant General Counsel and
Vice President Government Relations with Emera. Prior to September 2007, he was Associate General Counsel at Encana Corporation. Mr. Spurr resides in Halifax, Nova Scotia. 

 

 22 

 Mr. Stephen Aftanas was appointed Corporate Secretary in September 2008. From June 2007
to September 2008 he held the position of Associate Corporate Secretary. From March 2006 to June 2007 he held the position of Associate General Counsel. Prior to that he served as Senior Solicitor. Mr. Aftanas resides in Halifax, Nova
Scotia. 
 No Directors or Executive Officers own preferred shares of NSPI. All of NSPI’s common shares are held directly or indirectly by
Emera. No insider of NSPI has an interest in transactions material to NSPI. 
 EXPERTS 

Interest of Experts 
 Grant Thornton LLP
are auditors of NSPI. None of the partners or staff of Grant Thornton LLP beneficially own, directly or indirectly, any securities in NSPI. 

ADDITIONAL INFORMATION 

Additional Information relating to NSPI may be found on SEDAR at www.sedar.com. Additional financial information is provided in NSPI’s financial
statements and MD&A for the year ended December 31, 2009. 
 NSPI will provide to any person upon request to the Corporate Secretary,
NSPI, P.O. Box 910, Halifax, N.S., B3J 2W5, telephone (902) 428-6096 or fax (902) 428-6171: 
  

	 	(a)	when the securities of NSPI are in the course of a distribution pursuant to a short form prospectus or a preliminary short form prospectus filed in respect of a
distribution of its securities the following information: 

  

	 	(i)	a copy of this Annual Information Form together with any document, or the pertinent pages of any document, incorporated by reference in this Annual Information Form;

  

	 	(ii)	a copy of the comparative consolidated financial statements of NSPI for the most recently completed financial year for which financial statements have been filed,
together with the auditors’ report thereon, and a copy of any interim financial statements of NSPI for any period after its most recently completed financial year; 

 

	 	(iii)	a copy of any other documents that are incorporated by reference into the preliminary short form prospectus or the short form prospectus and are not required to be
provided under (i) to (iii) above; or 

  

	 	(b)	or at any other time, one copy of any of the documents referred to in (a)(i) to (iii) above. 

 

 23 

 FORWARD LOOKING INFORMATION 

This Annual Information Form, including the documents incorporated herein by reference, contains forward-looking information which
reflects management’s expectations regarding the future growth, results of operations, performance, business prospects and opportunities of NSPI, and may not be appropriate for other purposes. The words “anticipates”,
“believes”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “might”, “plans”, “projects”, “schedule”, “should”,
“will”, “would” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects NSPI
management’s current beliefs and is based on information currently available to NSPI’s management. 
 The
forward-looking information in this Annual Information Form, including the documents incorporated herein by reference, includes, but is not limited to, statements regarding: the expected timing of regulatory decisions; forecasted gross capital
expenditures; the nature, timing and costs associated with certain capital projects; the expected impacts on NSPI of the downturn in the global economy; estimated energy consumption rates; expectations related to annual operating cash flows; the
expectation that NSPI will continue to have reasonable access to long-term capital in the near to medium terms; expected debt maturities and repayments; expectations about increases in interest expense and/or fees associated with credit facilities;
and no material adverse credit rating actions being expected in the near term. The forecasts and projections that make up the forward-looking information are based on assumptions which include, but are not limited to: the receipt of applicable
regulatory approvals and requested rate decisions; no significant operational disruptions or environmental liability due to a catastrophic event or environmental upset caused by severe weather, other acts of nature or other major event; the
continued ability to maintain transmission and distribution systems to ensure their continued performance; no severe and prolonged downturn in economic conditions; sufficient liquidity and capital resources; the continued ability to hedge exposures
to fluctuations in interest rates, foreign exchange rates and commodity prices; no significant variability in interest rates; the continued competitiveness of electricity pricing when compared with other alternative sources of energy; the continued
availability of commodity supply; the absence of significant changes in government energy plans and environmental laws that may materially affect the operations and cash flows of NSPI; maintenance of adequate insurance coverage; the ability to
obtain and maintain licences and permits; no material decrease in market energy sales prices; favourable labour relations; and sufficient human resources to deliver service and execute the capital program. 

The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially
from historical results or results anticipated by the forward-looking information. Factors which could cause results or events to differ from current expectations include, but are not limited to: regulatory risk; operating and maintenance risks;
unanticipated maintenance and other expenditures; economic conditions; availability and price of energy and other commodities; capital resources and liquidity risk; weather and seasonality; commodity price risk; competitive pressures; construction;
derivative 
  

 24 

 
financial instruments and hedging availability and cost of financing; interest rate risk; counterparty risk; competitiveness of electricity; commodity supply; performance of counterparties,
partners, contractors and suppliers in fulfilling their obligations; environmental risks; insurance coverage risk; foreign exchange; an unexpected outcome of legal proceedings currently against NSPI; regulatory and government decisions including
changes to environmental, financial reporting and tax legislation; licences and permits; loss of service area; market energy sales prices; labour relations; and availability of labour and management resources. 

For additional information with respect to NSPI’s risk factors, reference should be made to the section of this Annual Information
Form entitled “Risk Factors”. 
 READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS AS
ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THE PLANS, EXPECTATIONS, ESTIMATES OR INTENTIONS EXPRESSED IN THE FORWARD-LOOKING STATEMENTS. ALL FORWARD-LOOKING INFORMATION IN THIS ANNUAL INFORMATION FORM AND IN THE DOCUMENTS INCORPORATED HEREIN BY
REFERENCE IS QUALIFIED IN ITS ENTIRETY BY THE ABOVE CAUTIONARY STATEMENTS AND, EXCEPT AS REQUIRED BY LAW, NSPI UNDERTAKES NO OBLIGATION TO REVISE OR UPDATE ANY FORWARD-LOOKING INFORMATION AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

  

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 APPENDIX “A” – AUDIT COMMITTEE CHARTER 

NOVA SCOTIA POWER INCORPORATED 

AUDIT COMMITTEE CHARTER 
  

	1.	Purpose 

 There shall be a
committee of the Board of Directors (the “Board”) of Nova Scotia Power Inc. (“NSPI”) which shall be known as the Audit Committee (the “Committee”). The Committee shall assist the Board in discharging its oversight
responsibilities concerning: 
  

	 	•	 	 the integrity of NSPI’s financial statements; 

  

	 	•	 	 NSPI’s internal control systems; 

  

	 	•	 	 the internal audit and assurance process; 

  

	 	•	 	 the external audit process; 

  

	 	•	 	 NSPI’s compliance with legal and regulatory requirements; and 

 

	 	•	 	 any other duties set out in this Charter or delegated to the Committee by the Board. 

 

	2.	Composition 

  

	 	(i)	NSPI’s Articles of Association require that the Committee shall be comprised of no less than three directors none of whom may be officers or employees of NSPI nor
may they be an officer or employee of any affiliate of NSPI. In addition, all members of the Committee shall be independent as required by applicable legislation. 

 

	 	(ii)	The Board shall appoint members to the Committee who are financially literate, as required by applicable legislation, which at a minimum requires that Committee members
have the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be
raised by NSPI’s financial statements. 

  

	 	(iii)	Committee members shall be appointed at the Board meeting following the election of Directors at NSPI’s annual shareholders’ meeting and membership may be
based upon the recommendation of the Nominating and Corporate Governance Committee. 

  

	 	(iv)	Pursuant to NSPI’s Articles of Association, the Board may appoint, remove, or replace any member of the Committee at any time, and a member of the Committee shall
cease to be a member of the Committee upon ceasing to be a Director. Subject to the foregoing, each member of the Committee shall hold office as such until the next annual meeting of shareholders after the member’s appointment to the Committee.

	 	(v)	The Secretary of the Committee shall advise NSPI’s internal and external auditors of the names of the members of the Committee promptly following their election.

  

	3.	Responsibilities 

Financial Reporting 
  

	 	(a)	The Committee shall be responsible for reviewing and recommending to the Board for approval: 

 

	 	(i)	the audited annual financial statements of NSPI, all related Management Discussion and Analysis, and earnings press releases; 

 

	 	(ii)	any documents containing NSPI’s audited financial statements including NSPI’s Annual Report; and, 

 

	 	(iii)	the quarterly financial statements, all related Management Discussion and Analysis, and earnings press releases. 

 

	 	(b)	The Committee shall satisfy itself that adequate procedures are in place for the review of public disclosure of financial information and the Committee shall assess the
adequacy of these procedures. 

 External Auditors 

 

	 	(i)	The Committee shall evaluate and recommend to the Board the external auditor to be nominated for the purpose of preparing or issuing the auditor’s report or
performing other audit, review, or attest services for NSPI, as well as the compensation of such external auditors. The Committee shall not recommend the same external auditor as is being recommended for Emera Inc. 

 

	 	(ii)	Once appointed, the external auditor shall report directly to the Committee, and the Committee shall oversee the work of the external auditor concerning the preparation
or issuance of the auditor’s report or the performance of other audit, review or attest services for NSPI. 

  

	 	(iii)	The Committee shall be responsible for resolving disagreements between management and the external auditor concerning financial reporting. 

 

 II 

 Non-Audit Services 

 

	 	(i)	The Committee shall be responsible for reviewing and pre-approving all non-audit services to be provided to NSPI, or any of its subsidiaries, by the external auditor.

  

	 	(ii)	The Committee shall be permitted to establish specific policies and procedures concerning the performance of non-audit services so long as the requirements of
applicable legislation are satisfied. 

  

	 	(iii)	In accordance with the policies and procedures established by the Committee, and applicable legislation, the Committee may delegate the pre-approval of non-audit
services to a member of the Committee or a sub-committee thereof. 

 Hiring Policies 

The Committee shall be responsible for reviewing and approving NSPI’s hiring policy concerning partners or employees, as well as
former partners and employees, of the present or former external auditors of NSPI. 
 Pension Plans 

The Committee shall review management controls and processes concerning the administration of investment activities, financial reporting,
and funding of the plans. 
 Other Responsibilities 

The Committee shall: 
  

	 	(i)	review any investment issues or policies which may arise from time to time until a committee is established by the Board to specifically deal with such issues;

  

	 	(ii)	perform such other duties and exercise such powers as may be directed or delegated to the Committee by the Board; and 

 

	 	(iii)	receive confirmation of compliance with the Nova Scotia Utilities and Review Board (“UARB”) Code of Conduct Guidelines as may be in place from time to time,
including receiving copies of any independent report from third parties on same. 

  

	4.	Internal Controls 

Pursuant to NSPI’s Articles of Association the Committee shall: 

 

	 	(i)	ensure that appropriate internal control procedures are in place and the Committee may examine and consider such other matters, and meet with such persons, in
connection with the internal or external audit of NSPI’s accounts, which the Committee in its discretion determines to be advisable; 

  

 III 

	 	(ii)	have the authority to communicate directly with the internal and external auditors; 

 

	 	(iii)	have the right to inspect all records of NSPI or its affiliates and may elect to discuss such records, or any matters relating to the financial affairs of NSPI with the
officers or auditors of NSPI and its affiliates; and 

  

	 	(iv)	review any investments or transactions that could adversely affect the well being of NSPI which the internal or external auditor, or any officer of NSPI, may bring to
the attention of the Committee. 

  

	5.	Complaints 

 The Committee
shall ensure that procedures exist relating to the receipt, retention, and treatment of complaints which may be received concerning accounting, internal accounting controls, or auditing matters, and in particular, the Committee shall be responsible
for the establishment of procedures concerning the confidential, anonymous submission of concerns by NSPI’s employees relating to questionable accounting or auditing matters. 

 

	6.	Experts and Advisors 

 The
Committee may, in consultation with the Chairman of the Board, engage and compensate any outside adviser that it determines necessary in order to carry out its duties. 
  

	7.	Internal Auditor 

 The
chief internal auditor shall report directly to the Committee. The Committee shall oversee the appointment, replacement, or termination of the chief internal auditor. 
  

	8.	Chair 

 Pursuant to
NSPI’s Articles of Association, the Committee shall choose one of its members to act as Chair of the Committee, which person shall not be the Chair of Emera Inc.’s Audit Committee. In selecting a Committee Chair, the Committee may consider
any recommendation made by the Nominating and Corporate Governance Committee. 
  

	9.	Secretary and Minutes 

The Corporate Secretary of NSPI shall act as the Secretary of the Committee. The Minutes of the Committee will be in writing and duly
entered into NSPI’s records and the Minutes shall be circulated to all members of the Committee. The Secretary shall maintain all Committee records. 
  

 IV 

	10.	Meetings 

  

	 	(i)	Meetings of the Committee may be called by the Chair or at the request of any member. 

 

	 	(ii)	The timing and location of meetings of the Committee, and the calling of and procedure at any such meeting, shall be determined from time to time by the Committee.

  

	 	(iii)	NSPI’s internal and external auditors shall be notified of all meetings of the Committee and shall have the right to appear before and be heard by the Committee.

  

	 	(iv)	NSPI’s internal or external auditors may request the Chair of the Committee to consider any matters which the internal or external auditors believe should be
brought to the attention of the Committee or the Board. 

  

	11.	Quorum 

 Two members of
the Committee present in person, by teleconferencing, or by videoconferencing, or by a combination thereof, will constitute a quorum. 
  

	12.	Board Relationships and Reporting 

The Committee shall: 
  

	 	(i)	oversee the appropriate disclosure of the Committee’s Charter as well as other information concerning the Committee which is required to be disclosed by applicable
legislation in NSPI’s Annual Information Form and any other applicable disclosure documents. 

  

	 	(ii)	as required, regularly report to the Board on Committee activities, issues, and related recommendations. 

 

	13.	Limitation on Authority 

Nothing articulated herein is intended to assign to the Committee the Board’s responsibility to oversee NSPI’s compliance with
applicable laws or regulations or to expand applicable standards of liability under statutory or regulatory requirements for the Directors or the members of the Committee. 
  

 V

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