Document:

Second Amended and Restated Loan and Security Agreement

 Exhibit 10.1 
  
 SECOND AMENDED AND RESTATED 
 LOAN AND
SECURITY AGREEMENT 
  
 DATED
AS OF OCTOBER 31, 2005 
  
 BY AND AMONG 
  
 MODUSLINK CORPORATION, SALESLINK LLC AND 
 SALESLINK MEXICO HOLDING CORP. AS BORROWERS, 
  
 THE LENDERS 
  
 AND 
  
 LASALLE BANK
NATIONAL ASSOCIATION, 
 AS AGENT FOR THE
LENDERS 

 TABLE OF CONTENTS  
  

					
	1.	  	DEFINITIONS AND INTERPRETATIONS	  	1
	1.1	  	Definitions	  	1
	1.2	  	Accounting Terms	  	18
	1.3	  	Other Terms	  	18
	1.4	  	Interpretation	  	18
	1.5	  	Multiple Borrowers	  	19
			
	2.	  	LOANS; GENERAL TERMS	  	19
	2.1	  	Revolving Line of Credit	  	19
	2.2	  	Evidence of Debt	  	20
	2.3.1	  	Loan Accounts; Commitment Increase Option; Amount and Maintenance of Loans; Interest Rate Not Determined	  	20
	2.4	  	Interest Rate	  	21
	2.5	  	Borrowing Procedures	  	21
	2.6	  	General Provisions	  	22
	2.7	  	Conversion Options; Continuance	  	22
	2.8	  	Requirements of Law	  	23
	2.9	  	Illegality	  	25
	2.10	  	Indemnity	  	25
	2.11	  	Conditions Precedent	  	26
	2.12	  	Non-Use Fee	  	28
	2.13	  	Letters of Credit	  	28
			
	3.	  	PAYMENTS	  	34
	3.1	  	Making of Payments	  	34
	3.2	  	Payment Terms	  	35
	3.3	  	Lockbox; Collection of Accounts and Payments	  	36
	3.4	  	Application of Payments and Collections	  	37
	3.5	  	Records	  	38
	3.6	  	Due Date Extension	  	38
			
	4.	  	COLLATERAL; GENERAL TERMS	  	38
	4.1	  	Security Interest	  	38
	4.2	  	Disclosure of Security Interest	  	38
	4.3	  	Special Collateral	  	38
	4.4	  	Further Assurances	  	39
	4.5	  	Inspection	  	39
	4.6	  	Location of Collateral	  	39
	4.7	  	Agent’s Payment of Claims Asserted Against Borrowers	  	40
	4.8	  	Letter of Credit Rights	  	40
	4.9	  	Commercial Tort Claims	  	40
	4.10	  	Electronic Chattel Paper and Transferable Records	  	40
	4.11	  	Continuation of Security Interest	  	40

  

 i 

					
	5.	  	COLLATERAL; ACCOUNTS AND COLLATERAL MAINTENANCE	  	41
	5.1	  	Verification of Accounts and Inventory	  	41
	5.2	  	Assignments, Records and Accounts and Inventory Report	  	41
	5.3	  	Notice Regarding Disputed Accounts	  	41
	5.4	  	Sale or Encumbrance of Accounts	  	41
	5.5	  	Equipment	  	41
	5.6	  	Notice of Loss; Prohibition on Sale or Disposition	  	41
	5.7	  	Compliance with Buy Back Agreements	  	42
			
	6.	  	WARRANTIES AND REPRESENTATIONS	  	42
	6.1	  	General Warranties and Representations	  	42
	6.2	  	Account Warranties and Representations	  	45
	6.3	  	Automatic Warranty and Representation and Reaffirmation of Warranties and Representations	  	46
	6.4	  	Survival of Warranties and Representations	  	46
			
	7.	  	COVENANTS AND CONTINUING AGREEMENTS	  	47
	7.1	  	Financial Covenants	  	47
	7.2	  	Affirmative Covenants	  	47
	7.3	  	Negative Covenants	  	51
	7.4	  	Contesting Charges	  	53
	7.5	  	Payment of Charges	  	54
	7.6	  	Insurance; Payment of Premiums	  	54
	7.7	  	Survival of Obligations Upon Termination of Agreement	  	55
			
	8.	  	EVENTS OF DEFAULT; RIGHTS AND REMEDIES	  	55
	8.1	  	Event of Default	  	55
	8.2	  	Effect of Event of Default	  	57
	8.3	  	Remedies	  	57
	8.4	  	Notice	  	58
	8.5	  	Default Interest Rate	  	59
	8.6	  	Preservation of Rights	  	59
	8.7	  	Distributions	  	59
	8.8	  	Method of Adjustment	  	60
			
	9.	  	AGENT	  	60
	9.1	  	Appointment and Authorization	  	60
	9.2	  	Delegation of Duties	  	60
	9.3	  	Liability of Agent	  	61
	9.4	  	Reliance by Agent	  	61
	9.5	  	Notice of Default	  	61
	9.6	  	Credit Decision	  	62
	9.7	  	Indemnification	  	62
	9.8	  	Agent in Individual Capacity	  	63
	9.9	  	Successor Agent	  	63

  

 ii 

					
	10.	  	MISCELLANEOUS	  	64
	10.1	  	Appointment of Agent as Each Borrower’s Lawful Attorney-In-Fact	  	64
	10.2	  	Modification of Agreement; Sale of Notes; Participations	  	64
	10.3	  	Attorneys’ Fees and Expenses; Agent and Each Lender’s Out-of-Pocket Expenses	  	65
	10.4	  	No Setoff; Right to Charge Accounts	  	66
	10.5	  	Severability	  	66
	10.6	  	Parties; Entire Agreement	  	67
	10.7	  	Conflict of Terms	  	67
	10.8	  	Waiver by Borrowers	  	67
	10.9	  	Waiver and Governing Law	  	67
	10.10	  	Notice	  	68
	10.11	  	Section Titles, Etc.	  	69
	10.12	  	Mutilated, Destroyed, Lost and Stolen Notes	  	69
	10.13	  	Customer Identification—USA Patriot Act Notice	  	70
			
	11.	  	CROSS-GUARANTY	  	70
	11.1	  	Cross-Guaranty	  	70
	11.2	  	Waivers by Borrowers	  	70
	11.3	  	Benefit of Guaranty	  	70
	11.4	  	Subordination of Subrogation, Etc.	  	71
	11.5	  	Election of Remedies	  	71
	11.6	  	Limitation	  	71
	11.7	  	Contribution with Respect to Guaranty Obligations	  	72
	11.8	  	Liability Cumulative	  	72

  

 iii 

 EXHIBITS 
  

			
	 Exhibit A (§1.1)
	  	Form of Master Letter of Credit Agreement
	 Exhibit B (§2.2 )
	  	Form of Second Amended and Restated Revolving Credit Note
	 Exhibit C (§2.11(A)(vii))
	  	Form of Opinion of Borrowers’ Counsel
	 Exhibit D (§2.11(A)(ix))
	  	Form of Amended and Restated ModusLink Pledge Agreement
	 Exhibit E (§2.11(A)(x))
	  	Form of Amended and Restated Intercreditor (Subordination) Agreement
	 Exhibit F (§2.11(C))
	  	Form of Landlord Waiver
	 Exhibit G (§7.2(C)(ii))
	  	Form of Financial Condition and Compliance Certificate
	 Exhibit H (§7.2)(C)(iv))
	  	Form of Borrowing Base Certificate

  
 SCHEDULES 
  

			
	 Schedule 1.1.1
	  	Commercial Tort Claims
	 Schedule 1.1.2
	  	Eligible Collateral Locations
	 Schedule 1.1.3
	  	Existing Permitted Debt
	 Schedule 1.1.4
	  	Existing Permitted Liens
	 Schedule 2.1
	  	Revolving Credit Commitments
	 Schedule 6.1(B)
	  	Fictitious Names
	 Schedule 6.1(I)
	  	Litigation; Indebtedness; Guarantees
	 Schedule 6.1(K)
	  	Collateral
	 Schedule 6.1(R)
	  	Subsidiaries
	 Schedule 6.1(T)
	  	Collateral
	 Schedule 6.1(V)
	  	Intellectual Property

  

 iv 

 SECOND AMENDED AND RESTATED 
 LOAN AND SECURITY AGREEMENT 
  
 THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is made as of the 31st day of October, 2005 by and among MODUSLINK CORPORATION, a Delaware corporation
(“ModusLink”), SALESLINK LLC, a Delaware limited liability company (“SalesLink”) and SALESLINK MEXICO HOLDING CORP., a Delaware corporation (“SalesLink Mexico”) (each herein called a
“Borrower” and collectively, the “Borrowers”), the lenders party hereto (herein collectively called the “Lenders” and each individually called a “Lender”) and LASALLE BANK NATIONAL
ASSOCIATION, as a Lender and as Agent for Lenders. 
  
 WHEREAS,
Lenders and Borrowers are parties to that certain First Amended and Restated Loan and Security Agreement dated as of December 31, 2004, as amended by (i) that certain Consent and First Amendment to First Amended and Restated Loan and
Security Agreement dated as of June 30, 2005 and (ii) that certain Second Amendment to First Amended and Restated Loan and Security Agreement dated as of September 30, 2005 (the “Existing Loan Agreement”); 

 
 WHEREAS, Borrowers desire to refinance the debt owed to Lenders
under the Existing Loan Agreement (the “Existing Debt”), and Lenders are willing to refinance the Existing Debt upon the terms and conditions set forth in this Agreement; and 
  
 WHEREAS, in conjunction with refinancing the Existing Debt, Borrowers
desire to borrow additional funds and obtain other financial accommodations from Lenders, and Lenders are willing to make certain loans and provide other financial accommodations to Borrowers upon the terms and conditions set forth in this
Agreement. 
  
 NOW, THEREFORE, in consideration of the
terms and conditions contained herein, and of any loans or extension of credit previously, now or to be made to or for the benefit of Borrowers by Lenders, the parties agree as follows: 
  

	 	1.	DEFINITIONS AND INTERPRETATIONS. 

  

	 	1.1	Definitions. When used in this Agreement, the following terms shall have the following meanings: 

  
 “Accounts” shall mean all accounts
(including without limitation all right to payment for services rendered or goods sold or leased), contract rights, leases, chattel paper, instruments, life insurance policies, notes and documents, whether now owned or to be acquired by any
Borrower. 
  
 “Account
Debtor” shall mean any Person who is or who may become obligated to any Borrower under, with respect to, or on account of an Account. 

 “Accounts and Inventory Report” shall mean a report delivered to
Agent by Borrowers, in accordance with Section 7.2(C)(iv)(a), consisting of (i) a trial balance of all Accounts existing as of the last day of the month preceding the date of such Accounts and Inventory Report, specifying for each Account
Debtor obligated on the Accounts, such Account Debtor’s name and outstanding balance, (ii) an aging of such Accounts, (iii) a list of all billings booked in advance as of such day, (iv) an inventory listing and (v) any other
information reasonably required by Agent. 
  
 “Affiliate” shall mean any and all Persons which, in the reasonable judgment of Agent, directly or indirectly, own or control, are controlled by or are under common control with a Borrower, and any and all Persons
from whom, in the reasonable judgment of Agent, a Borrower has not or is not likely to exhibit independence of decision or action. For the purpose of this definition and where otherwise applicable herein, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. For purposes of this Agreement, no Borrower shall
be deemed to be an Affiliate of any other Borrower. 
  
 “Agent” shall mean LaSalle in its capacity as administrative, collateral and documentation agent for all of the Lenders and not in its individual capacity, and its successor appointed pursuant to Section 9.9.

  
 “Agent-Related
Persons” shall mean Agent and any successor agent arising under Section 9.9, together with their respective Affiliates and the officers, directors, employees, agents and attorneys-in-fact of such Persons and its Affiliates.

  
 “Aggregate Revolving Credit
Commitment” shall mean the combined Revolving Credit Commitments of Lenders then in effect, which initially shall be $55,000,000, as such amount may be increased pursuant to this Agreement. 
  
 “Allocable Amount” shall have the
meaning ascribed to it in Section 11.7. 
  
 “Ancillary Agreements” shall mean all Security Documents and all agreements, instruments and documents, including without limitation, notes, guaranties, mortgages, deeds of trust, chattel mortgages, pledges, powers
of attorney, consents, assignments, contracts, notices, security agreements, leases, financing statements, environmental indemnity agreement, subordination agreements, trust account agreements and all other written matter whether previously, now, or
to be executed by or on behalf of a Borrower or any other Person or delivered to Agent or any Lender with respect to this Agreement. 
  

 2 

 “Applicable Margin” shall mean the percentage interest rate per
annum based upon the Senior Leverage Ratio set forth in the Compliance Certificate delivered by Borrowers to Lender pursuant to Section 7.2(C)(ii), as indicated in the following chart: 
  

							
	 Senior Leverage Ratio

	  	Prime Margin

	 	LIBOR
Margin

	 	Letter of Credit
Margin

	Greater than or equal to 2.50:1.00	  	0%	 	1.75%	 	1.75%
	Greater than or equal to 1.50:1.00, but less than 2.50:1.00	  	0%	 	1.50%	 	1.50%
	Less than 1.50:1.00	  	0%	 	1.25%	 	1.25%

  
 “Assignment Agreement” shall have the meaning ascribed to it in Section 10.2. 
  
 “Availability” shall mean at any time, the lesser of (i) the Aggregate Revolving Credit Commitment and
(ii) the Borrowing Base, as determined on the basis of the most recent Borrowing Base Certificate. 
  
 “Balance Sheet Leverage Ratio” shall mean as of any day the ratio of (i) the consolidated Indebtedness
minus the aggregate amount outstanding pursuant to the CMGI Notes to (ii) consolidated Tangible Capital Funds. 
  
 “Borrowing Base” shall have the meaning ascribed to it in Section 2.1. 
  
 “Borrowing Base Certificate” shall
have the meaning ascribed to it in Section 7.2(C)(iv)(b). 
  
 “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which (i) commercial banks in the State of Illinois or the Commonwealth of Massachusetts or (ii) the
New York Stock Exchange, are required or authorized by law to remain closed; provided that when used in connection with a LIBOR Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollars in
the London interbank market. 
  
 “Buy
Back Agreement” shall mean an agreement between a Borrower and a customer of such Borrower pursuant to which such customer agrees to purchase from such Borrower any Inventory that is in excess of such Borrower’s then current
requirements or which is obsolete, at a price that is not less than 100% of the original purchase price of such Inventory. 
  
 “Capital Expenditures” shall mean for any period, the sum of all expenditures during that period that are or are
to be included in “additions to property, plant or equipment” or a comparable item in the statement of cash flows of each Borrower, net of the amount of any reimbursement payments made to any Borrower by any third party, other than any
Affiliate of a Borrower, in connection with any such expenditures. 
  

 3 

 “Capital Funds” shall mean the total of (i) each
Borrower’s shareholder or member equity, as applicable, plus (ii) Subordinated Debt of each Borrower, both determined on a consolidated basis in accordance with generally accepted accounting principals consistently applied.

  
 “Capitalized Lease
Obligations” shall mean for any period the amounts payable with respect to leases of tangible or intangible property of any character, however denoted, which is required by generally accepted accounting principles to be reflected as a
liability on the face of the balance sheet. 
  
 “Cash and Cash Equivalents” shall mean cash and other instruments that can be promptly, and in no event less than two (2) Business Days, converted into cash without the payment of a material monetary penalty or
other material cost. 
  
 “Cash
Collateral Account” shall mean a deposit account maintained with Agent, which deposit account and all the funds deposited therein will be subject to a first priority security interest in favor of Agent, for its benefit and the benefit
of Lenders, upon such terms as are required by Agent, into which Borrowers deposit funds required to be deposited by them pursuant to Section 2.13(B), Section 3.2(B) and Section 8.1(B). Borrowers shall not have access to funds
deposited in the Cash Collateral Account. 
  
 “Cash Collateralized Letter of Credit” shall mean those Letters of Credit that are secured by Borrowers’ deposits to the Cash Collateral Account as required pursuant to Section 2.13(B), Section 3.2(B)
and Section 8.1(B). 
  
 “Charges” shall mean all national, federal, state, county, city, municipal, or other governmental (including, without limitation, the Pension Benefit Guaranty Corporation) taxes, levies, assessments, charges, Liens,
claims or encumbrances upon or relating to (i) the Collateral, (ii) the Liabilities, (iii) Borrowers’ employees, payroll, income or gross receipts, (iv) Borrowers’ ownership or use of any of its assets or (v) any
other aspect of Borrowers’ respective businesses. 
  
 “Closing” shall have the meaning ascribed to it in Section 2.11(A). 
  
 “CMGI” shall mean CMGI, Inc., a Delaware corporation. 
  
 “CMGI Notes” shall mean
(i) that certain Secured Demand Note dated as of August 2, 2004 executed by Obligor in favor of Creditor in the principal amount of $25,000,000, (ii) that certain Secured Promissory Note dated as of December
    , 2004 executed by Obligor in favor of Creditor in the principal amount of $10,000,000 and (iii) that certain Secured Promissory Note dated as of December     , 2004 executed by Obligor
in favor of Creditor in the principal amount of $17,151,705 and (iv) any other promissory notes executed by any Borrower in favor of CMGI. 
  

 4 

 “Collateral” shall mean all of the Property and interests in
Property described in Section 4.1 and all other Property and interests in Property which shall, from time to time, secure any part of the Liabilities. 
  
 “Commercial Tort Claims” shall mean commercial tort claims of any Borrower, including those specifically
identified on Schedule 1.1.1 to this Agreement, as it may be amended from time to time. 
  
 “Commitment” means, for each Lender, its Revolving Credit Commitment then in effect. 
  
 “Commitment Increase Option” shall
have the meaning ascribed to it in Section 2.3(B). 
  
 “Compliance Certificate” shall have the meaning ascribed to it in Section 7.2(C)(ii). 
  
 “Default” shall mean any event or condition which, with the passage of time or the giving of notice or both, would
constitute an Event of Default. 
  
 “Dollars” and the symbol “$” shall mean the lawful currency of the United States of America. 
  
 “EBITDA” shall mean with reference to any period (i) consolidated net income (or net deficit) of Borrowers
and their respective Subsidiaries for such period as computed in accordance with generally accepted accounting principles consistently applied, plus (ii) (a) Interest Expense without duplication, it being understood that Interest Expense
shall not include interest that is paid in kind for such period, (b) all amounts deducted in arriving at such net income (or net deficit) in respect of federal, state and local income taxes for such period, (c) all amounts properly charged
for depreciation of fixed assets and amortization of intangible assets during such period on the books of such Persons, (d) all restructuring charges recognized by Borrowers during Borrowers’ fiscal year 2006 up to a maximum amount of
$8,000,000 and during each fiscal year of Borrowers thereafter, up to a maximum of $6,500,000 which are related to any transactions consented to by the Lenders. 
  
 “Eligible Collateral Location” shall mean the locations identified on Schedule 1.1.2
attached hereto, together with such other locations as to which Agent may, from time to time, agree, subject to Section 4.6 and such reasonable conditions as Agent may determine appropriate, including the execution and filing of appropriate
financing statements and the obtaining of any lien waivers from any bailee, warehouseman, landlord, mortgagee or similarly situated Person who may have a Lien in or upon any Inventory at such location. 
  

 5 

 “Eligible Inventory” means the aggregate amount of all Inventory
(including raw materials) of Borrowers and their Subsidiaries that is subject to a Buy Back Agreement, valued on the first-in, first-out method of inventory valuation, less any inventory: 
  
 (i) which is damaged, or not of merchantable quality, or has
any defects that would affect the market value of such inventory; or 
  
 (ii) which is located in Minnesota or New Jersey, unless a Borrower has qualified to do business in such State and has filed appropriate notices of business activities reports (or other appropriate filings) with the
appropriate state authorities for the then current year; or 
  
 (iii) which is consigned, in transit or the subject of a bill in lading or other title document; or 
  
 (iv) which is not located at an Eligible Collateral Location; or 
  
 (v) which Agent in its reasonable discretion determines not to treat as Eligible Inventory, including
without limitation due to age, type, category or quantity (Agent shall notify Borrowers of any such determination within a reasonable time after it has been made); or 
  

 (vi) which fails to meet or violates any warranty, representation or covenant contained in this Agreement or any related
document or instrument relating to such Inventory; or 
  
 (vii) which is subject to any Lien or security interest except in favor of Agent; or 
  
 (viii) which is produced in violation of the Fair Labor Standards Act or is packaging or shipping material or general supplies; or

  
 (ix) which is not in good condition or does
not meet in all material respects all material standards imposed by any Person having regulatory authority over such goods or their use and/or sale, is damaged, is not currently saleable in the normal course of business or is saleable but requires
repairs, repackaging or other cost and expense (other than normal and customary stocking costs). 
  
 Borrowers agree that work in process inventory shall not be included in Eligible Inventory. Notwithstanding anything to the contrary
herein, no Inventory owned by any Borrower or Subsidiary located outside of the United States shall be Eligible Inventory until such time as Agent shall have received evidence satisfactory to it, in its reasonable discretion, of the creation,
perfection and the relative priority of a security interest in such Inventory in favor of Agent including an opinion of counsel to that effect acceptable to Agent in its reasonable discretion. 
  

 6 

 “Eligible Receivables” means the aggregate amount of all accounts
of each Borrower and its Subsidiaries arising in the ordinary course of such Borrower’s or Subsidiary’s business as presently conducted, valued at the lowest of invoice (adjusted for credits, returns or the like), book value or the amount
reasonably expected by such Borrower or Subsidiary to be collected from the particular Account Debtor(s), less any accounts and related amounts: 
  
 (i) which remain fully or partially unpaid for more than ninety (90) days after their respective invoice dates except as contemplated
by (xvi) below; or 
  
 (ii) which are not
due and payable in full in accordance with such Borrower’s credit and collection policy as disclosed by such Borrower to Agent; provided that regardless of the terms of such credit and collection policy, no Eligible Receivable shall have a
payment term which is greater than sixty (60) days from the date of its related invoice; or 
  
 (iii) which are owed by a particular Account Debtor if fifty percent (50%) or more of the balance owing by such Account Debtor has
not been paid within 90 days of the invoice date; or 
  
 (iv) with respect to which the Account Debtor is another Borrower or is a partner, shareholder, director, officer, employee, or agent of any such Borrower or is a Subsidiary or other Affiliate; or 
  
 (v) with respect to which payment by the Account Debtor is
or may be conditional, and accounts commonly known as “bill and hold” or accounts with a similar or like arrangement; or 
  
 (vi) with respect to which the Account Debtor is not a resident or citizen of or otherwise located in the United States of America, or
with respect to which the Account Debtor is not subject to service of process in the United States of America, unless such Borrower has furnished Agent with a letter of credit or account receivable insurance in at least the amount of the account
acceptable as to form, substance and issuer to Agent in its sole discretion; notwithstanding the foregoing, up to $7,500,000 of Tilburg Receivables shall be considered Eligible Receivables if, but for this subsection (vi), such Tilburg Receivables
would otherwise be considered Eligible Receivables; or 
  
 (vii) with respect to which the Account Debtor is the United States of America or any department, agency or instrumentality thereof, unless all necessary steps are taken to comply with the Assignment of Claims Act of 1940, as amended, and
all other necessary steps to perfect Agent’s security interest in such account have been completed to Agent’s satisfaction; or 
  

 7 

 (viii) with respect to which such Borrower is or may become liable to the Account Debtor
for goods sold or services rendered by such Account Debtor to Borrower; or 
  
 (ix) with respect to which the goods giving rise thereto have not been shipped and delivered to and accepted as satisfactory by the Account Debtor thereof or with respect to which the services performed giving rise
thereto have not been completed and accepted as satisfactory by the Account Debtor; or 
  
 (x) arising from a “sale on approval” or “sale or return”; or 
  
 (xi) which are subject to any Lien or security interest
except in favor of Agent, or are “bonded” or similar accounts; or 
  
 (xii) which are owed by an Account Debtor which has a dispute with such Borrower, or as to which any adverse claim, dispute or litigation relates (including without limitation any claim that any amounts are not owed
to such Borrower), but only in the amount of such adverse claim, dispute or litigation; or 
  
 (xiii) which are owed by an Account Debtor which is located in Minnesota or New Jersey, unless such Borrower has qualified to do business
in such State and has filed appropriate notices of business activities reports (or other appropriate filings) with the appropriate state authorities for the then current year; or 
  
 (xiv) which are owed by an Account Debtor which (a) has filed a petition or (b) is subject to an
involuntary petition under any section or chapter of the United States Bankruptcy Code or any similar law or regulation or has made a general assignment for the benefit of its creditors; or 
  
 (xv) which fails to meet or violates any warranty,
representation or covenant (subject to any applicable grace or cure period) contained in this Agreement or any related document or instrument relating directly to Accounts; or 
  
 (xvi) which Agent deems, in its reasonable discretion, to be doubtful in their collection. 
  
 Notwithstanding anything to the contrary herein,
(i) except as otherwise provided in subsection (vi) above, no Accounts which are owed to any Subsidiary that is not a resident of the United States shall be Eligible Receivables until such time as Agent shall have received evidence
satisfactory to it, in its reasonable discretion, of the creation, perfection and the relative priority of a security interest in such Accounts in favor of 

  

 8 

 Agent including an opinion of counsel to that effect acceptable to Agent in its reasonable discretion and
(ii) if the aggregate amount of all Accounts owed by a particular Account Debtor exceed 37.5% of Eligible Receivables after giving effect to subsections (i)-(xvi) above, than all Accounts in excess of such amount shall be excluded as
Eligible Receivables. 
  
 “Environmental Laws” means all applicable federal, state or local statutes, laws, ordinances, codes, rules, regulations and guidelines (including consent decrees and administrative orders) relating to public health
and safety and protection of the environment. 
  
 “Equipment” shall mean all of Borrowers’ and their respective Subsidiaries’ now owned and to be acquired equipment and fixtures, including without limitation, furniture, machinery, vehicles and trade
fixtures, together with any and all accessories, parts, appurtenances, substitutions and replacements. 
  
 “Equipment Debt” shall mean up to $5,000,000 in consolidated Indebtedness of Borrowers related to Borrowers’
equipment. 
  
 “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Default” shall mean the occurrence or existence of any one or more of the events described in Section 8.1. 
  
 “Financials” shall mean those financial statements of Borrowers and their respective
Subsidiaries delivered to Agent pursuant to Section 7.2(C). 
  
 “Fixed Charge Coverage Ratio” shall mean for any period the ratio of (i) the aggregate amount of (a) EBITDA for such period minus (b) Capital Expenditures for such period
to (ii) the aggregate amount of (x) Interest Expense for such period plus (y) payments made by Borrowers to CMGI with respect to Subordinated Debt for such period plus (z) payments made by Borrowers with respect to
Capitalized Lease Obligations for such period. 
  
 “General Intangibles” shall mean all contract rights, choses in action, general intangibles, causes of action and all other intangible personal property of Borrowers and their respective Subsidiaries of every kind
and nature (other than Accounts) now owned or to be acquired by Borrowers and their respective Subsidiaries. Without in any way limiting the generality of the foregoing, General Intangibles specifically includes, without limitation, all corporate or
other business records, deposit accounts, inventions, designs, patents, patent applications, trademarks, trademark applications, service marks, service mark applications, trade names, trade secrets, goodwill, copyrights, registrations, licenses,
leasehold interests, franchises and tax refund claims owned by a Borrower or its Subsidiaries and all letters of credit, banker’s acceptances, guarantee claims, security interests or other security held by or granted to a Borrower or its
Subsidiaries to secure 

  

 9 

 
payment by an Account Debtor of any Accounts, letter of credit rights, payment intangibles, supporting obligations, Commercial Tort Claims, software and such
other assets as Agent determines to be intangible in its sole and absolute discretion. 
  
 “Indebtedness” shall mean all of Borrowers’ or their respective Subsidiaries’ liabilities, obligations
and indebtedness to all Persons of any and every kind and nature, whether primary, secondary, direct, indirect, absolute, contingent, fixed or otherwise, previously, now or to be owing, due or payable, however evidenced, created, incurred, acquired
or owing and however arising, whether under written or oral agreement, by operation of law or otherwise. Without in any way limiting the generality of the foregoing, Indebtedness specifically includes (i) the Liabilities, (ii) all
obligations or liabilities of any Person that are secured by any Lien, claim, encumbrance, or security interest upon property owned by a Borrower or a Subsidiary, even though such Borrower or such Subsidiary has not assumed or become liable for the
payment thereof, (iii) all obligations or liabilities created or arising under any lease of real or personal property (including Capitalized Lease Obligations, but excluding operating leases), or conditional sale or other title retention
agreement with respect to property used or acquired by a Borrower or a Subsidiary, even though the rights and remedies of the lessor, seller or lender, thereunder are limited to repossession of such property, (iv) all unfunded pension fund
obligations and liabilities and (v) deferred Taxes. 
  
 “Indebtedness for Borrowed Money” shall mean for any Person (without duplication) (i) all Indebtedness created, assumed or incurred in any manner by such Person representing money borrowed
(including but not limited to the issuance of debt securities), (ii) all Indebtedness for the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than
sixty (60) days past due), (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. 
  
 “Indemnified Liabilities” shall have
the meaning ascribed to it in Section 9.7. 
  
 “Intercreditor (Subordination) Agreement” shall mean the Amended and Restated Intercreditor (Subordination) Agreement described in Section 2.11(A)(xi). 
  
 “Interest Expense” shall mean for
any period the sum of all interest charges on Indebtedness (including imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of Borrowers and their respective Subsidiaries for such
period determined in accordance with generally accepted accounting principles. 
  
 “Interest Payment Date” shall mean: (i) (a) with respect to any Prime Rate Loan, the first Business Day
of each calendar month and the date of any conversion of 

  

 10 

 
such Prime Rate Loan into a LIBOR Loan and (b) with respect to any LIBOR Loan, the last day of the applicable Interest Period; and (ii) for Prime
Rate Loans and LIBOR Loans accrued interest shall be payable upon (a) the Revolving Credit Termination Date and (b) the date on which each such Loan is paid in full or otherwise satisfied. 
  
 “Interest Period” shall mean with
respect to any LIBOR Loan (a) initially, the period commencing on the initial date of borrowing as set forth in the Notice of Borrowing or the conversion date, as the case may be, with respect to such LIBOR Loan and ending one, two or three
months thereafter, as selected by Borrowers in the Notice of Borrowing or Notice of Conversion and (b) thereafter, each period commencing on and including the first day of the next Interest Period applicable to such LIBOR Loan and ending one,
two or three months thereafter, as selected by Borrowers in the Notice of Continuance described in Section 2.7(B); provided that the foregoing provisions relating to Interest Periods are subject to the following: 
  
 (i) If any Interest Period would otherwise end on a day
which is not a Business Day, that Interest Period shall be extended to the next succeeding Business Day except if the result of such extension would be for such Interest Period to end in another calendar month in which event such Interest Period
shall end on the immediately preceding Business Day; 
  
 (ii) any Interest Period of a LIBOR Loan made pursuant to the Revolving Credit Facility that would otherwise extend beyond the Revolving Credit Termination Date shall end on the Revolving Credit Termination Date; 
  
 (iii) if Borrowers fail to give notice of the length of the
Interest Period they request with respect to the LIBOR Loan, Borrowers shall be deemed to have selected a LIBOR Loan of one (1) month; and 
  
 (iv) any Interest Period pertaining to a LIBOR Loan that begins on the last Business Day of a calendar month (or a day for which there is
no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month. 
  
 “Interest Rate” shall mean the interest rate determined in accordance with Section 2.4. 
  
 “Inventory” shall mean all goods,
inventory, merchandise, finished goods, component goods, packaging materials and other personal property including, without limitation, goods in transit, wherever located and whether now owned or to be acquired by any Borrower or any Subsidiary
which is or may at any time be held for sale or lease, furnished under any contract of service or held as raw materials, work in process, supplies or materials used or consumed in Borrowers’ and their respective Subsidiaries’ business, and
all such property the sale or other disposition of which has given rise to Accounts and which has been returned to or repossessed or stopped in transit by a Borrower. The parties hereto agree that all goods in possession of any Borrower in such
Borrower’s capacity as a bailee shall not be considered Inventory hereunder. 
  

 11 

 “Issuance Request” shall have the meaning ascribed to it in
Section 2.13(E). 
  
 “Issuing
Lender” shall mean LaSalle in its capacity as issuer of any Letter of Credit. 
  
 “LaSalle” shall mean LaSalle Bank National Association. 
  
 “Letter of Credit” shall mean any
letter of credit issued by the Issuing Lender for the account of a Borrower in accordance with Section 2.13. 
  
 “Letter of Credit Expiry Date” shall mean, with respect to any Letter of Credit, the date which is the earlier of
(i) one (1) year after the date of issuance thereof or (ii) one (1) year after the Revolving Credit Termination Date. 
  
 “Letter of Credit Fees” shall have the meaning ascribed to it in Section 2.13(G). 
  
 “Letter of Credit Obligations” shall
mean, as at the time of determination thereof, the sum of (a) the Reimbursement Obligations then outstanding and (b) the aggregate then undrawn face amount of the then outstanding Letters of Credit. 
  
 “Liabilities” shall mean all of
Borrowers’ and their respective Subsidiaries’ liabilities, obligations and indebtedness to Agent or any Lender of any and every kind and nature, whether primary, secondary, direct, absolute, contingent, fixed or otherwise (including,
without limitation, interest, charges, expenses, attorneys’ fees and other sums chargeable to a Borrower or its Subsidiaries by Agent or any Lender, future advances made to or for the benefit of a Borrower and obligations of performance),
whether arising under this Agreement, under any of the Ancillary Agreements or acquired by Agent or any Lender from any other source, whether previously, now or to be owing, arising, due, or payable from a Borrower or its Subsidiaries to Agent or
any Lender, however evidenced, created, incurred, acquired or owing and however arising, whether under written or oral agreement, operation of law or otherwise. 
  
 “LIBOR Loan” shall mean any Loan (or portion thereof) bearing interest at the LIBOR
Rate, as designated by Borrowers in a Notice of Borrowing, Notice of Conversion or Notice of Continuance. 
  
 “LIBOR Rate” shall mean a rate of interest equal to the per annum rate of interest at which United States dollar
deposits in an amount comparable to the principal balance of Loans and for a period equal to the relevant Interest Period are offered in the London Interbank Eurodollar market at 11:00 a.m. (London time) two Business Days prior to the commencement
of each Interest Period, as displayed in the Bloomberg Financial Markets system, or other authoritative source selected by Agent in its sole 

  

 12 

 
discretion, divided by a number determined by subtracting from 1.00 the maximum reserve percentage for determining reserves to be maintained by member banks
of the Federal Reserve System for Eurocurrency liabilities, such rate to remain fixed for such Interest Period. Agent’s determination of the LIBOR Rate shall be conclusive, absent manifest error. 
  
 “Lien” means any mortgage, pledge or
lease of, security interest in or lien, charge, restriction or encumbrance on any Property of the Person involved in favor of or which secures any obligation to, any other Person. 
  
 “Loan” shall mean any advance made by Lenders to Borrowers under the Revolving
Credit Facility. 
  
 “Loan
Fee” shall mean $90,000.00. 
  
 “Long Term Debt” shall mean any Indebtedness with a maturity of over one year from any date of determination. 
  
 “Master Letter of Credit Agreement” shall mean with respect to the issuance of Letters of Credit, a Master Letter
of Credit Agreement substantially in the form of Exhibit A hereto as such form may be amended by LaSalle from time to time. 
  
 “Material Adverse Effect” shall mean (a) a material adverse change in, or a material adverse effect upon, the
financial condition, operations, assets, business, properties or prospects of the Borrowers taken as a whole, (b) a material impairment of the ability of any Borrower to perform any of its obligations under this Agreement or any Ancillary
Agreement or (c) a material adverse effect upon any substantial portion of the Collateral or upon the legality, validity, binding effect or enforceability against any Borrower of this Agreement or any Ancillary Agreement. 
  
 “ModusLink Pledge Agreement” shall
mean the Amended and Restated ModusLink Pledge Agreement described in Section 2.11(A)(x). 
  
 “Non-Funding Lender” shall have the meaning ascribed to it in Section 3.1(B). 
  
 “Notes” shall mean, collectively,
each Second Amended and Restated Revolving Credit Note to be executed and delivered by Borrowers to each Lender on the Closing and which are described in Section 2.2. 
  
 “Notice of Borrowing” shall mean a Notice of Borrowing described in
Section 2.5. 
  
 “Notice of
Continuance” shall mean a Notice of Continuance described in Section 2.7(B). 
  

 13 

 “Notice of Conversion” shall mean a Notice of Conversion
described in Section 2.7(A). 
  
 “Participant” shall mean any Person, now or at any time or times to be, participating with any Lender in the Loans made by such Lender to Borrowers pursuant to this Agreement and the Ancillary Agreements. 

 
 “Percentage” shall mean, as to
any Lender, the percentage (calculated to the ninth decimal place) which such Lender’s Revolving Credit Commitment is of the Aggregate Revolving Credit Commitments, as reflected in the records of Agent. If the Revolving Credit Commitments have
terminated, such Lender’s “Percentage” of the Revolving Credit Commitments shall be deemed to be the percentage which the aggregate amount of such Lender’s outstanding Revolving Credit Loans to Borrowers plus all Reimbursement
Obligations of Borrowers to such Lender is of the aggregate amount of all of Lenders’ outstanding Revolving Credit Loans to Borrowers plus the aggregate amount of all Reimbursement Obligations of Borrowers to all of the Lenders.

  
 “Permitted Debt”
shall mean: 
  
 (i) the Liabilities; 

 
 (ii) current unsecured Indebtedness arising in the
ordinary course of business of Borrowers and their respective Subsidiaries, including trade payables, utility costs, payroll and benefit obligations, accrued tax liabilities and other non-extraordinary accounts payable but excluding Indebtedness for
Borrowed Money; 
  
 (iii) the Subordinated Debt;

  
 (iv) Indebtedness incurred by Borrowers to
any Person at a time no Default or Event of Default exists constituting Capitalized Lease Obligations; 
  
 (v) the Equipment Debt; and 
  
 (vi) such other Indebtedness outstanding on the date hereof and described on Schedule 1.1.3 attached hereto. 
  
 “Permitted Liens” shall mean:

  
 (i) Liens and encumbrances in favor of Agent,
whether granted under or established by this Agreement, the Ancillary Agreements or otherwise; 
  
 (ii) subject to Section 7.4, Liens for taxes, assessments or other governmental charges incurred by a Borrower or its Subsidiaries in
the ordinary course of business and for which no interest, late charge or penalty is attaching or which are being contested in good faith by appropriate proceedings diligently pursued and for which adequate reserves in accordance with generally
accepted accounting principles shall have been set aside on its books; 
  

 14 

 (iii) Liens, not delinquent, incurred by a Borrower or its Subsidiaries in the ordinary
course of business created by statute in connection with worker’s compensation, unemployment insurance, social security, old age pensions (subject to the applicable provisions of this Agreement) and similar statutory obligations; 
  
 (iv) Liens incurred by a Borrower or its Subsidiaries in
favor of mechanics, materialmen, carriers, warehousemen, landlords or repairmen or other like statutory or common law Liens securing obligations incurred in good faith in the ordinary course of business that are not overdue for a period of more than
fifteen (15) days or which are being contested in good faith; 
  
 (v) pledges and deposits to secure the performance of bids, tenders, trade contracts (other than for borrowed money), leases (other than capital leases), utility purchase obligations, statutory obligations, surety and
appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 
  
 (vi) easements, rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business and encumbrances
consisting of zoning restrictions, easements, licenses, restrictions on the use of property or minor imperfections in title thereto which, in the aggregate, are not material in amount, and which do not, in the aggregate, materially detract from the
value of the property of any Borrower or Subsidiary or materially interfere with the ordinary conduct of the business of any Borrower or Subsidiary; 
  
 (vii) Liens and encumbrances related to Equipment Debt; and 
  

 (viii) any existing Liens and encumbrances identified in Schedule 1.1.4 hereto to secure Indebtedness outstanding as of the
date hereof. 
  
 “Person”
shall mean any individual, sole proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization, association, corporation, institution, entity, party or government (whether national, federal, state, county,
city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department). 
  
 “Post-Termination Letter of Credit” shall the meaning ascribed to it in Section 2.13(B)(ii). 
  
 “Prime Rate” shall mean the rate per
annum equal to the prime rate of interest announced by LaSalle from time to time as its “prime rate.” Changes in interest charged under this Agreement on Prime Rate Loans, shall take effect on the date of each 

  

 15 

 
change in the Prime Rate, without further notice from LaSalle. The Prime Rate is not necessarily the lowest rate of interest charged by LaSalle in connection
with extensions of credit. 
  
 “Prime
Rate Loan” shall mean any Loan (or portion thereof) bearing interest at the Prime Rate, as designated by Borrowers in the Notice of Borrowing, Notice of Conversion or Notice of Continuance. 
  
 “Property” shall mean any and all
rights, titles and interests in and to any and all property whether real or personal, tangible (including cash) or intangible and wherever situated and whether now owned or hereafter acquired. 
  
 “Reimbursement Obligations” shall
mean all amounts owed by any Borrower to the Issuing Lender or any other Lender (whether or not evidenced by any note or instrument), direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, representing
the principal of and interest on payments made by the Issuing Lender or any other Lender under or in connection with any Letter of Credit, including but not limited to, all unpaid drawings, fees, premiums, expenses, attorneys’ fees,
accountants’ fees, capital adequacy charges, increased costs and similar costs and expenses owed or payable under this Agreement or any Letters of Credit, including but not limited to, the fees set forth in Section 2.13. 
  
 “Reportable Event” shall have the
meaning ascribed to it in Section 6.1(O). 
  
 “Required Lenders” shall mean Lenders (other than Non-Funding Lenders) having aggregate percentages of (i) so long as there are fewer than three Lenders, all Lenders or (ii) if there are three or more
Lenders, 66-2/3% or more, or if the Commitments have been terminated 66-2/3% of the aggregate outstanding principal amount of the outstanding Loans and Reimbursement Obligations. 
  
 “Revolving Credit Commitment” shall mean with respect to each Lender
(i) initially, the amount set forth opposite such Lender’s name in Schedule 2.1 under the heading “Initial Revolving Credit Commitments” and (ii) if the Borrowers exercise the Commitment Increase Option pursuant to the terms
of Section 2.3(B) hereto, the amount set forth opposite such Lender’s name in Schedule 2.1 under the heading “Final Revolving Credit Commitments.” 
  

 “Revolving Credit Facility” shall have the meaning ascribed to it in Section 2.1. 

 
 “Revolving Credit Termination
Date” shall mean October 31, 2008. 
  
 “Security Documents” shall mean this Agreement, that certain First Amended and Restated Trademark Security Agreement dated as of December 31, 2004 by and between the Agent (as agent for the Lenders) and
ModusLink and all other agreements, instruments, documents, financing statements, warehouse receipts, bills of lading, 

  

 16 

 
notices of assignment, schedules, assignments, mortgages and other written matter necessary or requested by Agent to create, perfect and maintain perfected
Agent’s security interest in the Collateral. 
  
 “Senior Debt” shall mean as of any measurement date the aggregate amount of (i) all outstanding Loans under the Revolving Credit Facility and (ii) the Letter of Credit Obligations. 
  
 “Senior Leverage Ratio” shall mean
as of any measurement date the ratio of (i) consolidated Senior Debt to (ii) consolidated EBITDA calculated on a trailing twelve month basis. 
  
 “Solvent” shall mean with respect to any Person on a particular date, that on such date (a) the fair salable
value of its property is greater than the fair present value of its liabilities (including for purposes of this definition all liabilities whether reflected on a balance sheet prepared or otherwise and whether direct or indirect, fixed or
contingent, secured or unsecured, disputed or undisputed); (b) the present fair salable value of its assets is not less than the amount that will be required to pay the probable liability on its debts as they become absolute and matured;
(c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d) such Person is not engaged in a business or
transaction, and is not about to engage in a business or transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities (such as litigation, guarantees and pension plan
liabilities) at any time shall be computed as the amount which, in light of all the facts and circumstances existing at the time, represents the amount which can be reasonably be expected to become an actual or matured liability (less any insurance
proceeds and proceeds from any third party indemnity that can reasonably be expected to be collected to offset such actual or matured liability). 
  
 “Special Collateral” shall have the meaning ascribed to it in Section 4.3. 
  
 “Subordinated Debt” shall mean all
Indebtedness which is expressly subordinated to Agent, including without limitation, Indebtedness subordinated by the Amended and Restated Intercreditor (Subordination) Agreement, containing subordination provisions which are satisfactory to Agent
in its sole discretion. 
  
 “Subsidiary” shall mean any corporation, partnership, limited liability company or other legal entity of which a Borrower owns directly or indirectly 50% or more of the outstanding voting stock or interests, or of
which a Borrower has effective control by contract or otherwise. 
  
 “Tangible Capital Funds” shall mean (i) the total of each Borrower’s shareholder or member equity, as applicable, plus (ii) the aggregate amount outstanding pursuant to
the CMGI Notes, both determined on a consolidated basis in accordance with generally accepted accounting principles consistently applied minus the sum of (a)

  

 17 

 
all assets which would be classified as intangible assets under generally accepted accounting principles, including, without limitation, cash value of life
insurance policies, loan origination fees, goodwill, patents, trademarks, trade names, copyrights, franchises, rights to refunds from Taxes and deferred charges (including, without limitation, unamortized debt discount and expense, organization
costs and deferred research and development expense) and similar assets, and (b) prepaid assets and assets designated as “other” on Borrowers’ consolidated balance sheet, all determined on a consolidated basis. 
  
 “Taxes” shall mean for any fiscal
year the federal, state, local and foreign taxes payable by each Borrower and their Subsidiaries. 
  
 “Tilburg Receivables” shall mean all accounts receivable of Hewlett-Packard Company, a Delaware corporation owed
to ModusLink B.V., a corporation organized under the laws of the Netherlands, f/k/a Modus Media International B.V. (“ModusLink B.V.”) or ModusLink Tilburg B.V., a corporation organized under the laws of the Netherlands, f/k/a
SalesLink International B.V., f/k/a Logistical Processing B.V. (“Tilburg B.V.”) which result from the operations of ModusLink B.V. or Tilburg B.V. in Tilburg, Netherlands and Apeldoorn, Netherlands as indicated on the most recent
Borrowing Base Certificate. 
  
 “UCC” shall have the meaning ascribed to it in Section 1.3. 
  
 1.2 Accounting Terms. Any accounting terms used in this Agreement which are not specifically defined shall
have the meanings customarily given them in accordance with generally accepted accounting principles. 
  
 1.3 Other Terms. All other terms, whether or not capitalized, contained in this Agreement which are not
otherwise defined in this Agreement shall, unless the context indicates otherwise, have the meanings provided for by the Uniform Commercial Code of the State of Illinois (the “UCC”) in effect from time to time, to the extent the
same are used or defined therein. 
  

 1.4 Interpretation. In this Agreement and each Ancillary Agreement, unless a clear contrary
intention appears: 
  
 (i) the singular number
includes the plural number and vice versa; 
  
 (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by such documents, and reference to a Person in a particular capacity excludes such Person
in any other capacity; 
  
 (iii) reference to
either gender includes the other gender; 
  

 18 

 (iv) reference to any agreement (including this Agreement and the Schedules and Exhibits
and the Ancillary Agreements) documents or instruments means such agreement, document or instrument as amended, modified, supplemented or replaced from time to time in accordance with the terms thereof and, if applicable, the terms hereof and the
Ancillary Agreements, and reference to any promissory note includes any promissory note which is an extension or renewal thereof or a substitute or replacement therefor; 
  

 (v) reference to any law, rule, regulation, order, decree, requirement, policy, guideline, directive or interpretation
means as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect on the determination date, including rules and regulations promulgated thereunder; 
  
 (vi) reference to any Article, Section, paragraph, clause, other subdivision, Schedule or Exhibit means such
Article, Section, paragraph, clause or other subdivision of this Agreement or Schedule or Exhibit to this Agreement; 
  
 (vii) “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this
Agreement as a whole and not to any particular Article, Section or other provision hereof; 
  
 (viii) “including” (and with correlative meaning “include”) means including without limiting the generality of any
description preceding such term; 
  
 (ix)
relative to the determination of any period of time, “from” means “from and including” and “to” means “to but excluding”; and 
  
 (x) references herein to any Subsidiary shall apply only during such times as a Borrower has any Subsidiary.

  
 1.5 Multiple
Borrowers. The term “Borrowers” refers to more than one corporation. The Borrowers hereby designate ModusLink to act on behalf of the Borrowers for all purposes under this Agreement, including, without limitation, the requesting of
Loans hereunder, and the reduction of any Commitment. Notice when given to ModusLink shall be sufficient notice to the Borrowers. Any document delivered to ModusLink shall be considered delivered to each of the Borrowers. 
  
 2. LOANS; GENERAL TERMS. 
  
 2.1 Revolving Line of
Credit. Each Lender with a Revolving Credit Commitment, severally and not jointly agrees, on the terms and conditions hereinafter set forth, to make available for Borrowers’ use, from time to time until the Revolving Credit Termination
Date, upon request of the Borrowers in accordance with Section 2.5, certain Loans under a revolving line of credit (the “Revolving Credit Facility”) in an aggregate amount not to exceed at any time outstanding the then
applicable Revolving Credit Commitment of such Lender; provided that the aggregate amount of Loans plus 

  

 19 

 
Letter of Credit Obligations under the Revolving Credit Facility outstanding at any one time shall not exceed the lesser of: 
  
 (A) the Aggregate Revolving Credit Commitment then in effect; and

  
 (B) (i) 80% of Eligible Receivables plus (ii) 50% of
Eligible Inventory (such amount referred to herein as the “Borrowing 
 Base”). 
  
 During such period and subject to Section 3.2(B), the Revolving Credit
Facility may be utilized by borrowing, repaying and reborrowing the Loans thereunder. 
  
 2.2 Evidence of Debt. The Revolving Credit Facility and the Loans made by each Lender to Borrowers thereunder shall be evidenced by a Revolving Credit Note payable to the
order of such Lender, which note shall be in the form attached hereto as Exhibit B. 
  
 2.3 Loan Accounts; Commitment Increase Option; Amount and Maintenance of Loans; Interest Rate Not Determined. 
  
 (A) Loan Account. Agent, on behalf of Lenders, shall record on its books and records the amount of
each Loan made, the interest rate applicable, all payments of principal and interest thereon and the principal balance thereof from time to time outstanding, and such record shall, absent demonstrable error be conclusive evidence of the amount of
the Loans made by Lenders to Borrowers and the interest and payments thereon. Any failure to record or any error in doing so shall, however, limit or otherwise affect the obligation of Borrowers hereunder (and under any Note) to pay any amount owing
with respect to the Loans. 
  
 (B) Commitment
Increase Option. Provided that no Default or Event of Default has occurred and is continuing and subject to the terms and conditions of this Agreement, Borrowers may elect to increase the Aggregate Revolving Credit Commitment to $60,000,000, but
not less than $60,000,000, by delivery to Agent at least ten (10) Business Days’ prior to the effectiveness thereof, of irrevocable written notice of such election, which notice must be in form and substance acceptable to Agent (a
“Commitment Increase Option”). After the exercise of such Commitment Increase Option, the Aggregate Revolving Credit Commitment shall remain at $60,000,000 until the Revolving Credit Termination Date. 
  
 (C) Amount and Maintenance of Loans. The Loans may be
made and maintained as (i) Prime Rate Loans, (ii) LIBOR Loans, or (iii) a combination of Prime Rate Loans and LIBOR Loans. The aggregate principal amount of each LIBOR Loan, whether new, converted or continued, shall not be less than
$500,000. More than one borrowing may occur on the same date, but at no time shall there be outstanding more than five LIBOR Loans in the aggregate. The amount of any Loan is also subject to the limits contained in Section 2.1. No Loan shall be
made at any time a Default or Event of Default shall exist. 
  

 20 

 (D) Inability to Determine Interest Rate. In the event, and on each occasion, that
on the day two Business Days prior to the commencement of any Interest Period for a LIBOR Loan, Agent shall have determined in good faith (which determination shall be conclusive and binding upon Borrowers) that currency deposits in the amount of
such LIBOR Loan are not generally available in the London Interbank market, or that the rate at which such currency deposits are being offered will not adequately and fairly reflect the cost to Agent of maintaining the principal amount of such LIBOR
Loan during such Interest Period, Agent shall promptly, after such determination shall have been made, give facsimile notice of such determination to Borrowers and Lenders, and, until Agent shall notify Borrowers and Lenders that the circumstances
giving rise to such notice no longer exist, any request by Borrowers for the making of, conversion to or continuation of a LIBOR Loan shall be deemed to be a request for a Prime Rate Loan. Agent shall use its reasonable efforts to notify Borrowers
of a change in the circumstances causing the LIBOR Loan to be unavailable but shall not incur any liability for any failure so to notify Borrowers. 
  
 2.4 Interest Rate. Unless otherwise provided in a writing evidencing such Liabilities, Borrowers agree,
jointly and severally, to pay Agent, for the benefit of each Lender, interest on the outstanding principal balance of the Loans from time to time at a rate equal to (i) with respect to Prime Rate Loans, the Prime Rate and (ii) with respect
to LIBOR Loans, the LIBOR Rate plus the Applicable Margin. The records of Agent as to the interest rate applicable to a particular advance shall be binding and conclusive absent manifest error. Interest shall be payable from the date of such advance
of the Loan to the day of repayment of such advance. Interest shall be computed on the basis of a year of 360 days and actual days elapsed and shall be payable as provided in Section 3.2. Agent, for the ratable benefit of each Lender, reserves
the right to charge Borrowers’ checking account(s) for accrued interest on the applicable Interest Payment Date. In no contingency or event whatsoever shall the rate or amount of interest paid by Borrowers under this Agreement or any of the
Ancillary Agreements exceed the maximum amount permissible under any law which a court of competent jurisdiction shall, in a final determination, deem applicable. In the event that such a court determines that Agent or any Lender has received
interest under this Agreement or under any Ancillary Agreement in excess of the maximum amount permitted by such law, (i) Agent or such Lender shall apply such excess to any unpaid principal owed by Borrowers to such Lender under the Revolving
Credit Facility or, if the amount of such excess exceeds the unpaid balance of such principal on the Revolving Credit Facility, such Lender shall promptly refund such excess interest to Borrowers and (ii) the provisions of this Agreement shall
be deemed amended to provide for such permissible rate. All sums paid, or agreed to be paid, by Borrowers which are, or to be may be construed to be, compensation for the use, forbearance or detention of money shall, to the extent permitted by
applicable law, be amortized, prorated, spread and allocated throughout the term of all such indebtedness until the indebtedness is paid in full. 
  
 2.5 Borrowing Procedures. In order to effect a Loan under the Revolving Credit Facility, an authorized
officer of each of the Borrowers shall give Agent irrevocable written notice (in form and substance acceptable to Agent) or irrevocable telephone notice (immediately confirmed by such written notice by facsimile) not later than 11:00 a.m., Chicago
time, on (i) the proposed borrowing date in the case of Prime Rate Loans and (ii) the second 

  

 21 

 
Business Day prior to the proposed borrowing date in the case of LIBOR Loans (the “Notice of Borrowing”). Borrowers hereby authorize Agent
and each Lender to extend advances and make Loans to Borrowers based on written or telephone notice from an authorized officer of Borrowers. Each Notice of Borrowing shall specify the principal amount of the Loan to be made pursuant to such
borrowing and the date of such borrowing (which shall be a Business Day), that the Loans are under the Revolving Credit Facility, whether the Loans being made pursuant to such borrowing are to be maintained as Prime Rate Loans or LIBOR Loans and, if
LIBOR Loans, the initial Interest Period to be applicable thereto. Promptly after receipt of such request, Agent shall advise each Lender thereof. Not later than 2:30 p.m., Chicago time, on the date of a proposed borrowing, each Lender shall provide
Agent, at the principal office of Agent in Chicago, with immediately available funds equal to such Lender’s pro rata share of the borrowing, and subject to receipt by Agent of the documents required under Section 2.11(B) with respect to
such borrowing, if any are required, Agent shall pay over such funds received by it to Borrowers on the requested borrowing date. 
  
 2.6 General Provisions. 
  
 (A) One Loan. All Loans and advances by each Lender to Borrowers under this Agreement and the
Ancillary Agreements shall constitute one loan and all indebtedness and obligations of Borrowers to all of the Lenders under this Agreement and the Ancillary Agreements shall constitute one general obligation secured by the Collateral. The parties
hereto acknowledge that this Agreement constitutes a replacement of the Existing Loan Agreement, and all references to the Existing Loan Agreement shall be deemed a reference to this Agreement. 
  
 (B) Events of Default. Each Lender may, in its sole
discretion, refrain from making any Loans or extensions of credit to Borrowers under this Agreement or any Ancillary Agreement after the occurrence and during the continuation of an Event of Default. 
  
 2.7 Conversion Options;
Continuance. 
  
 (A) Conversion
Requirements. Provided that no Default or Event of Default has occurred and is continuing and subject to the terms and conditions of this Agreement, Borrowers may elect from time to time to convert a Prime Rate Loan, or any portion thereof, to a
LIBOR Loan by Borrowers giving Agent at least two Business Days’ prior irrevocable written notice of conversion, which notice must be in form and substance acceptable to Agent and received by Agent prior to 11:00 a.m. (Chicago time) (the
“Notice of Conversion”). If the date on which a Prime Rate Loan is to be converted to a LIBOR Loan is not a Business Day, then such conversion shall be made on the next succeeding Business Day, and during the period from such date
to such succeeding Business Day, such Prime Rate Loan shall bear interest as if it were a Prime Rate Loan. All or any part of outstanding borrowings may be converted as provided herein. Subject to the terms and conditions of this Agreement,
Borrowers may convert a LIBOR Loan into a Prime Rate Loan by Borrowers giving Agent a Notice of Conversion not later than 11:00 a.m. (Chicago time) on the desired conversion date. Promptly upon receipt of each Notice of Conversion, Agent shall
advise each Lender thereof. 
  

 22 

 (B) Continuance. Any LIBOR Loan may be continued as such, in whole or in part,
upon the expiration of an Interest Period with respect thereto if Borrowers gives Agent irrevocable written notice of continuance which notice must be in form and substance acceptable to Agent and received by Agent prior to 11:00 a.m. (Chicago
time), at least two Business Days prior to the date of expiration of the Interest Period expiring with respect to the LIBOR Loan which is requested to be continued, specifying (i) the LIBOR Loan, or portion thereof, requested to be continued;
(ii) the date of expiration of the Interest Period expiring with respect to the LIBOR Loan, or portion thereof, which is requested to be continued; and (iii) the length of the Interest Period with respect to such LIBOR Loan, or portion
thereof, after the continuation thereof (the “Notice of Continuance”); provided that no LIBOR Loans may be continued as such when any Default or Event of Default has occurred and is continuing, but shall be automatically converted
to a Prime Rate Loan on the last day of the Interest Period for such Loan. If Borrowers do not comply with the notice provisions of this clause (B), such LIBOR Loan shall be automatically converted to a Prime Rate Loan upon the expiration of the
Interest Period with respect thereto. Promptly upon receipt of each Notice of Continuance, Agent shall advise each Lender thereof. 
  
 (C) Restatement of Representations and Warranties. Any Notice of Conversion or Notice of Continuance delivered pursuant to this
Section 2.7 shall be deemed to be a representation that all of the representations and warranties of Borrowers contained in this Agreement shall then be true and correct as if made on such date, except to the extent that such representations
and warranties expressly relate to an earlier date, and that no Default or Event of Default shall have occurred and be continuing. 
  
 2.8 Requirements of Law. 
  
 (A) Increased Costs. Notwithstanding any other provisions herein, in the event that the introduction
of or any change in any law, rule, regulation, treaty or directive or in the interpretation or application thereof, or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other
governmental authority, agency or instrumentality or regulatory body: 
  
 (i) subjects such Lender to any tax of any kind whatsoever with respect to this Agreement, the Notes, the Ancillary Agreement or the Loans made hereunder, or changes the basis of taxation of payments to such Lender of
principal, interest or any other amount payable hereunder (except for changes in the rate of tax imposed on the overall net income of such Lender by the United States, any state or subdivision thereof); 
  
 (ii) imposes, modifies, holds applicable any reserve,
special deposit, compulsory loan or similar requirement against assets held by, or deposits or 

  

 23 

 
other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such
Lender (which is not otherwise included in the determination of the LIBOR Rate hereunder); or 
  
 (iii) imposes on any Lender or the London interbank market any other condition affecting this Agreement or the LIBOR Loans made by such
Lender; 
  
 and the result of any of the foregoing is to increase
the cost to such Lender of agreeing to make, making, continuing or maintaining or participating in LIBOR Loans, or to reduce any amount receivable thereunder or to increase the withholding taxes payable then, in any such case, Borrowers agree,
jointly and severally, to pay such Lender, within fifteen (15) days after demand by such Lender, any additional amounts necessary to compensate such Lender on an after-tax basis for such additional cost or reduced amount receivable or increased
withholding taxes payable which such Lender deems to be material as determined by such Lender with respect to this Agreement, the Notes, the other Ancillary Agreements or the Loans made hereunder. 
  
 (B) Capital Adequacy. In the event that any Lender shall have
determined that the adoption of any law, rule, regulation, treaty or guideline regarding capital adequacy, or any change in any of the foregoing or in the interpretation or application of any of the foregoing or compliance by such Lender with any
request or directive regarding capital adequacy (whether or not having the force of law) from any central bank or other governmental authority, agency or instrumentality or regulatory body, does or shall have the effect of reducing the rate of
return on such Lender’s or its parent’s capital as a consequence of its obligations under this Agreement to a level below that which such Lender or such parent could have achieved but for such adoption, change, or compliance (taking into
consideration such Lender’s or such parent’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, after submission by such Lender to Borrowers of a written request therefor,
Borrowers agree, jointly and severally, to pay to such Lender, within fifteen (15) days after its demand, such additional amount or amounts as will compensate such Lender or such parent on an after-tax basis for such reduction; provided that
such Lender is charging such amounts to similarly situated borrowers. 
  
 (C) Certificate for Claim. If any Lender or its parent becomes entitled to claim any additional amounts pursuant to this Section 2.8, it shall promptly notify Borrowers, Agent and the other Lenders of the event by reason of
which it has become so entitled. A certificate setting forth in reasonable detail any additional amounts payable pursuant to the foregoing sentence submitted by such Lender or its parent shall be conclusive and binding on Borrowers in the absence of
manifest error. The provisions of this Section 2.8 shall survive the repayment of the Loans and the termination of this Agreement. 
  
 (D) No Waiver. Failure on the part of any Lender or its parent to demand compensation for any increased costs or reduction in amounts received or
receivable or 

  

 24 

 
reduction in return on capital with respect to any period shall not constitute a waiver of such party’s right to demand compensation with respect to
such period or any other period. The protection of this Section 2.8 shall be available to such party regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation, guideline or other change or condition
which shall have occurred or been imposed; provided that if such party shall have recouped any amount therefore paid to it by Borrowers under this Section 2.8, such Lender shall pay to Borrowers an amount equal to the net recoupment so received
by such party, as determined in good faith by such party. 
  
 (E)
Replacement of Lenders. If any Lender determines in accordance with Section 2.9 that, due to illegality, it is unable to make or maintain a LIBOR Loan or requests compensation under this Section 2.8, or if any Lender becomes a
Non-Funding Lender, then Borrowers may, at their sole expense and effort, upon notice to such Lender and Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in
Section 10.2), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if such Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of Agent, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans (and unpaid Reimbursement Obligations), accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or Borrowers (in the case of all other amounts) and (iii) in the case of any such assignment resulting from
a claim for compensation under this Section 2.8 such assignment will result in a reduction of such compensation. 
  
 2.9 Illegality. Any Lender may make or maintain LIBOR Loans at or for the credit of any branch, subsidiary
or affiliate office inside or outside the United States or any international banking facility within the United States, as such Lender may elect from time to time. Notwithstanding any other provisions herein, if any law, rule, regulation, treaty or
directive or any change therein or in the interpretation or application thereof, shall make it unlawful for such Lender to maintain LIBOR Loans as contemplated by this Agreement, the agreement of such Lender to make or maintain LIBOR Loans shall
terminate and all outstanding LIBOR Loans shall be converted automatically to Prime Rate Loans, on the last day of the then current Interest Period or within such earlier period as required by law. 
  
 2.10 Indemnity. Borrowers
agree, jointly and severally, to indemnify any Lender and to hold such Lender harmless from any cost, loss or expense which such Lender may sustain or incur as a consequence of (i) Borrowers making a payment or prepayment of principal or
interest on any LIBOR Loan (including, without limitation, through a conversion to the same or a different type of Loan or pursuant to Sections 2.3(C) and 2.9 above) on a day which is not the last day of an Interest Period with respect thereto,
(ii) any failure by Borrowers to borrow or convert any Loan hereunder after a Notice of Borrowing or Notice of Conversion has been given (in the case of LIBOR Loans), (iii) default by Borrowers in making any prepayment after Borrowers have
given a notice of prepayment and (iv) any acceleration of the maturity of the 

  

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Loans in accordance with the terms of this Agreement, including, but not limited to, any such reasonable cost, loss or expense arising in liquidating the
Loans and from interest or fees payable by such Lender to lenders of funds obtained by it in order to maintain the Loans hereunder. The provisions of this Section 2.10 shall survive the repayment of the Loans and the termination of this
Agreement. 
  
 2.11
Conditions Precedent. The obligations of each Lender to make Loans hereunder are subject to the following conditions precedent: 
  
 (A) Effectiveness of Agreement. On or prior to the effective date of this Agreement (hereinafter called the
“Closing”), Borrowers shall have delivered or caused to be delivered to Agent, each in form and substance satisfactory to Agent, the following: 
  
 (i) The Notes, which shall be duly executed by each Borrower; 
  
 (ii) Certified (as of the date of the Closing) copies of
resolutions of each Borrower authorizing the execution, delivery and performance of this Agreement, the Notes, and each other document to be delivered pursuant hereto; 
  

 (iii) Certificates (dated the date of the Closing) (a) of each of ModusLink’s and SalesLink Mexico’s
corporate secretary (or assistant secretary or other officer serving a similar function and authorized to execute such certificate) as to the incumbency and signatures of the officers of each of ModusLink and SalesLink Mexico signing this Agreement,
the Notes and each other document to be delivered by ModusLink and SalesLink Mexico pursuant to this Agreement and (b) of SalesLink’s secretary (or other officer serving a similar function and authorized to execute such certificate) as to
the incumbency and signatures of the officers of SalesLink signing this Agreement, the Notes and each other document to be delivered by SalesLink pursuant to this Agreement. 
  
 (iv) A copy of (a) each of ModusLink’s and SalesLink Mexico’s certificate of incorporation
and by-laws, together with a certificate (dated the date of the Closing) of each of ModusLink’s and SalesLink’s corporate secretary (or assistant secretary or other officer serving a similar function and authorized to execute such
certificate), as applicable, to the effect that such certificate and by-laws have not been amended since the date each document became effective and (b) SalesLink’s certificate of formation and operating agreement, together with a
certificate (dated the date of the Closing) of SalesLink’s secretary (or other officer serving a similar function and authorized to execute such certificate) to the effect that such certificate and operating agreement have not been amended
since the date each document became effective; 
  
 (v) For each Borrower, certificates, as of the most recent dates practicable, of the Secretary of State of such Borrower’s state of organization and the Secretary of State of each state in which each Borrower is qualified as a foreign
corporation or limited liability company, or in which it intends to do business following the receipt of proceeds of the Loans, as to the good standing of such Borrower; 
  

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 (vi) Uniform Commercial Code, tax lien, bankruptcy and judgment searches concerning each
Borrower from all offices and jurisdictions deemed appropriate by Agent in Agent’s sole discretion, showing no other filing of record with respect to the Collateral granted hereunder other than any financing statement filed by Agent;

  
 (vii) An opinion of counsel to Borrowers in
substantially the form of Exhibit C attached hereto; 
  
 (viii) Certificates of insurance in the form set forth in Section 7.6 or otherwise acceptable to Agent; 
  
 (ix) An Amended and Restated ModusLink Pledge Agreement (a “ModusLink Pledge Agreement”) in the form of Exhibit D
attached hereto; 
  
 (x) An Amended and Restated
Intercreditor (Subordination) Agreement (an “Intercreditor (Subordination) Agreement”) in the form of Exhibit E attached hereto; 
  
 (xi) Payment by Borrowers to the Agent, for the ratable benefit of Lenders, of the Loan Fee. 
  
 (xii) Such other documents as Agent shall reasonably
determine to be necessary or desirable. 
  
 (B)
Additional Advances. At the time of (1) the effectiveness of this Agreement and (2) of each disbursement under the Revolving Credit Facility after the effectiveness of this Agreement: 
  
 (i) Each Borrower must be in full compliance with all of the
terms and conditions of this Agreement and the Ancillary Agreements, and no Default or Event of Default shall have occurred and be continuing; 
  
 (ii) No material adverse change shall have occurred in the business, assets, operations, financial or other condition of any Borrower or
in Borrowers collective ability to pay the Loans since the date of this Agreement or since the Closing, as applicable; 
  
 (iii) Each Borrower shall have good and marketable title to and ownership of the Collateral owned by it. The Collateral shall be free from
any security interest, Lien or encumbrance except the Permitted Liens and no financing statement concerning the Collateral, excepting any filed on behalf of Agent and those listed on Schedule 1.1.4, is on file in any public office; 
  

 27 

 (iv) Each of the representations and warranties set forth in Section 6 shall be true
and correct as of such time; and 
  
 (v) After
giving effect to the requested advance, the aggregate principal amount of all Loans outstanding under the Revolving Credit Facility shall not exceed the then current Availability. 
  
 (C) Landlord Waivers. Borrowers agree, (i) for sixty (60) days from the date hereof, to use
commercially reasonable best efforts to obtain a duly and fully executed Landlord Waiver with respect to each Eligible Collateral Location in the form of Exhibit F attached hereto or otherwise acceptable to Agent (a “Landlord
Waiver”) and (ii) to use commercially reasonable efforts to obtain a duly executed Landlord Waiver for each Eligible Collateral Location for which an Landlord Waiver has not been obtained thereafter. 
  
 2.12 Non-Use Fee. Borrowers
agree, jointly and severally, to pay to Agent, for the ratable benefit of Lenders, with respect to the Revolving Credit Facility, for the period commencing on the date hereof and continuing through the Revolving Credit Termination Date, a non-use
fee at the rate of 0.35% per annum on the amount of the average daily unused portion of the Aggregate Revolving Credit Commitment. Such non-use fee shall be payable by Borrowers, jointly and severally, in arrears on the last Business Day of
each calendar quarter and on the Revolving Credit Termination Date. The non-use fee shall be computed on the basis of the actual number of days elapsed in a year of 360 days. 
  
 2.13 Letters of Credit. 
  
 (A) Issuance of Non-Cash Collateralized Letters of
Credit. From and after the date hereof, upon the execution by Borrowers and the Issuing Lender of a Master Letter of Credit Agreement in form and substance acceptable to the Issuing Lender, the Issuing Lender agrees, upon the terms and
conditions set forth in this Agreement, to issue at the request and for the account of Borrowers or any designee of Borrowers, one or more Letters of Credit; provided that the Issuing Lender shall not be under any obligation to issue, and shall not
issue, any Letter of Credit if (a) any order, judgment or decree of any governmental authority with jurisdiction over the Issuing Lender shall purport by its terms to enjoin or restrain such Issuing Lender from issuing such Letter of Credit, or
any law or governmental rule, regulation, policy, guideline or directive (whether or not having the force of law) from any governmental authority with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain
from, the issuance of Letters of Credit in particular or shall impose upon the Issuing Lender with respect to any Letter of Credit any restriction or reserve or capital requirement (for which the Issuing Lender is not otherwise compensated) or any
unreimbursed loss, cost or expense which was not applicable, in effect and known to the Issuing Lender as of the date of this Agreement and which the Issuing Lender in good faith deems material to it (the Issuing Lender shall promptly notify
Borrowers of any event which, in the judgment of the Issuing Lender, would preclude the issuance of a Letter of Credit pursuant to this clause); 

  

 28 

 
(b) one or more of the conditions to such issuance contained in Section 2.11 is not then satisfied; or (c) after giving effect to such issuance,
the aggregate outstanding amount of the Letter of Credit Obligations would exceed the Aggregate Revolving Credit Commitment. Except with respect to a Cash Collateralized Letter of Credit, in no event shall: (a) the aggregate amount of the
Letter of Credit Obligations at any time exceed the Aggregate Revolving Credit Commitment; (b) the sum at any time of (1) the aggregate amount of Letter of Credit Obligations and (2) the aggregate principal balance of all outstanding
Loans issued pursuant to the Revolving Credit Facility exceed the then current Availability; (c) the expiration date of any Letter of Credit (including, without limitation, Letters of Credit issued with an automatic “evergreen”
provision providing for renewal absent advance notice by Borrowers or the Issuing Lender), or the date for payment of any draft presented thereunder and accepted by the Issuing Lender, be later than the Letter of Credit Expiry Date; and (d) the
sum at any time of the aggregate amount of Letter of Credit Obligations exceed $20,000,000.00. 
  
 (B) Issuance of Cash Collateralized Letters of Credit. 
  
 (i) Pre-Termination Cash Collateralized Letters of Credit. In the event Borrowers request the
issuance of any Letter(s) of Credit with that would, if issued, result in the sum of (1) the aggregate amount of Letter of Credit Obligations and (2) the aggregate principal amount of Loans outstanding under the Revolving Credit Facility
to exceed the then current Availability, Borrowers may request that the Issuing Lender issue a Cash Collateralized Letter of Credit provided that Borrowers, jointly and severally, deposit cash in an amount equal to such excess in the Cash Collateral
Account at least five (5) Business Days prior to the issuance of any such Cash Collateralized Letter of Credit. To the extent that one or more Cash Collateralized Letter(s) of Credit expire (and are not drawn upon) and are not extended or are
otherwise terminated without any continuing liability to Agent, the Issuing Lender or Lenders, which results in the sum of (i) the aggregate principal amount of Loans outstanding under the Revolving Credit Facility plus (ii) the aggregate
amount of Letter of Credit Obligations being equal to or less than the Availability as of such date, Agent shall refund the cash held in the Cash Collateral Account with respect to such Cash Collateralized Letter of Credit to the Borrowers within
five (5) Business Days less any Letter of Credit Fees applicable thereto. In addition, following any such deposit of cash in the Cash Collateral Account, at any time and from time to time that the sum of (i) the aggregate principal amount
of Loans outstanding under the Revolving Credit Facility plus (ii) the aggregate principal amount of Letter of Credit Obligations becomes equal to or less than the sum of (x) the Availability plus (y) the amount of cash held in the
Cash Collateral Account as of such date, Agent shall refund to the Borrowers within (5) Business Days a sum of cash held in the Cash Collateral Account equal to such excess less any Letter of Credit Fees applicable thereto. Any deposit made to
the Cash Collateral Account pursuant to this Section 2.13(B)(i) shall be used exclusively to facilitate the issuance of Cash Collateralized Letters of Credit requested hereunder and shall not affect the Availability or Borrowing Base.

  

 29 

 (ii) Post-Termination Letters of Credit. In the event any Letter of Credit issued
under Section 2.13(A) or 2.13(B)(i) exists on, and has an expiration date that is later than the Revolving Credit Termination Date (each a “Post-Termination Letter of Credit”), at least five (5) Business Days prior to the
Revolving Credit Termination Date, Borrowers, jointly and severally, shall deposit in the Cash Collateral Account available funds free and clear of all Liens in an amount equal to the face amount of such Post-Termination Letter of Credit. In no
event may a Post-Termination Letter of Credit be renewed or include an automatic “evergreen” provision providing for renewal. Upon the expiration of any such Post-Termination Letter of Credit, Agent shall refund to the Borrowers within
five (5) Business Days after such expiration any undrawn funds deposited pursuant to this Section 2.13(B)(ii) associated with such Post-Termination Letter of Credit less any Letter of Credit Fees applicable thereto. Any deposit made to the
Cash Collateral Account pursuant to this Section 2.13(B)(ii) shall not affect the Availability or Borrowing Base. 
  
 (C) Participating Interests. Immediately upon the issuance by the Issuing Lender of a Letter of Credit in accordance with
Section 2.13(A) or Section 2.13(B), each Lender shall be deemed to have irrevocably and unconditionally purchased and received from the Issuing Lender, without recourse, representation or warranty, an undivided participation interest equal
to its Percentage of the face amount of such Letter of Credit and each draw paid by the Issuing Lender thereunder, including, without limitation any Cash Collateralized Letter of Credit or Post Termination Letter of Credit. Each Lender’s
obligation to pay its proportionate share of all draws under the Letters of Credit (including, without limitation, any Cash Collateralized Letter of Credit or Post Termination Letter of Credit), absent gross negligence or willful misconduct by the
Issuing Lender in honoring any such draw, shall be absolute, unconditional and irrevocable and in each case shall be made without counterclaim or set-off by such Lender. 
  

 (D) Letter of Credit Reimbursement Obligations. 
  
 (i) (a) Borrowers, jointly and severally, agree to pay to the Issuing Lender (1) on each date that
any amount is drawn under each Letter of Credit a sum (and interest on such sum as provided in clause (2) below) equal to the amount so drawn plus all other charges and expenses with respect thereto or in the applicable Master Letter of Credit
Agreement and (2) interest on any and all amounts remaining unpaid under this Section 2.13 until payment in full at the Prime Rate plus 2.00% per annum. Borrowers agree to pay to the Issuing Lender the amount of all Reimbursement
Obligations owing in respect of any Letter of Credit immediately when due, under all circumstances, including, without limitation, any of the following circumstances: (w) any lack of validity or enforceability of this Agreement or any Ancillary
Agreements executed pursuant 

  

 30 

 
hereto; (x) the existence of any claim, set-off, defense or other right which Borrowers may have at any time against a beneficiary named in a Letter of
Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), any Lender or any other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transaction between the Borrowers and the beneficiary named in any Letter of Credit); (y) the validity, sufficiency or genuineness of any document which the Issuing Lender has determined in good
faith complies on its face with the terms of the applicable Letter of Credit, even if such document should later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue or
inaccurate in any respect; or (z) the surrender or material impairment of any security for the performance or observance of any of the terms hereof. 
  
 (ii) Notwithstanding any provisions to the contrary in any Master Letter of Credit Agreement, Borrowers agree, jointly and severally, to
reimburse the Issuing Lender for amounts which the Issuing Lender pays under such Letter of Credit no later than the time specified in this Agreement. If Borrowers do not pay any such Reimbursement Obligations when due, Borrowers shall be deemed to
have immediately requested that Lenders make a Prime Rate Loan under this Agreement in a principal amount equal to such unreimbursed Reimbursement Obligations. Agent shall promptly notify Lenders of such deemed request and, without the necessity of
compliance with the requirements of Sections 2.1 and 2.11, each Lender shall make available to Agent its Loan in the manner prescribed for Prime Rate Loans. The proceeds of such Loans shall be paid over by Agent to the Issuing Lender for the account
of Borrowers in satisfaction of such unreimbursed Reimbursement Obligations, which shall thereupon be deemed satisfied by the proceeds of, and replaced by, such Prime Rate Loan. 
  
 (iii) If the Issuing Lender makes a payment on account of any Letter of Credit and is not concurrently
reimbursed therefore by Borrowers and if for any reason a Prime Rate Loan may not be made pursuant to Section 2.13(D)(ii), then as promptly as practical during normal banking hours on the date of its receipt of such notice or, if not
practicable on such date, not later than noon (Chicago time) on the Business Day immediately succeeding such date of notification, each Lender shall deliver to Agent for the account of the Issuing Lender, in immediately available funds, the purchase
price for such Lender’s interest in such unreimbursed Reimbursement Obligations, which shall be an amount equal to such Lender’s pro-rata share of such payment. Each Lender shall, upon demand by the Issuing Lender, pay the Issuing Lender
interest on such Lender’s pro-rata share of such draw from the date of payment by the Issuing Lender on account of such Letter of Credit until the date of delivery of such funds to the Issuing Lender by such Lender at a rate per annum, computed
for actual days elapsed based on a 360-day year, equal to the federal funds rate for such period; provided that such payments shall be made by such Lender only in the event and to the extent that the Issuing Lender is not reimbursed in full by
Borrowers for interest on the amount of any draw on the Letters of Credit. 
  

 31 

 (iv) At any time after the Issuing Lender has made a payment on account of any Letter of
Credit and has received from any other Lender such Lender’s pro-rata share of such payment, the Issuing Lender shall, forthwith upon its receipt of any reimbursement (in whole or in part) by Borrowers for such payment, or of any other amount
from Borrowers or any other Person in respect of such payment (including, without limitation, any payment of interest or penalty fees and any payment under any collateral account agreement of the Borrowers or any Ancillary Agreements executed
pursuant hereto but excluding any transfer of funds from any other Lender pursuant to Section 2.13(D)(ii)), transfer to such other Lender such other Lender’s ratable share of such reimbursement or other amount; provided that interest shall
accrue for the benefit of such Lender from the time the Issuing Lender has made a payment on account of any Letter of Credit; provided further that, in the event that the receipt by the Issuing Lender of such reimbursement or other amount is found
to have been a transfer in fraud of creditors or a preferential payment under the Bankruptcy Code or is otherwise required to be returned, such Lender shall promptly return to the Issuing Lender any portion thereof previously transferred by the
Issuing Lender to such Lender, but without interest to the extent that interest is not payable by the Issuing Lender in connection therewith. 
  
 (E) Procedure for Issuance. Prior to the issuance of each Letter of Credit, and as a condition of such issuance, including, without
limitation any Cash Collateralized Letter of Credit or Post-Termination Letter of Credit, Borrowers shall deliver to the Issuing Lender (with a copy to Agent) a Master Letter of Credit Agreement signed by the Borrowers, together with such other
documents or items as may be required pursuant to the terms thereof, and the proposed form and content of such Letter of Credit shall be reasonably satisfactory to the Issuing Lender. Except as provided in Section 2.13(B), each Letter of Credit
shall be issued no earlier than two (2) Business Days after delivery of the foregoing documents, which delivery may be by Borrowers to the Issuing Lender by facsimile transmission, telex or other electronic means followed by delivery of executed
originals within five days thereafter. The documents so delivered shall be in compliance with the requirements set forth in Section 2.13(A) or Section 2.13(B), as the case may be, and shall specify therein (i) the stated amount of the Letter of
Credit requested, (ii) the effective date of issuance of such requested Letter of Credit, which shall be a Business Day, (iii) the date on which such requested Letter of Credit is to expire, (iv) the entity for whose benefit the requested Letter of
Credit is to be issued, which shall be a Borrower, (v) the aggregate amount of Letter of Credit Obligations which are outstanding and which will be outstanding after giving effect to the requested Letter of Credit issuance and (vi) that the
requested Letter of Credit is to be a Cash Collateralized Letter of Credit, if applicable. The delivery of the foregoing documents and information shall constitute an “Issuance Request” for purposes of this Agreement. Subject to the
terms and conditions of Section 2.13(A) or Section 2.13(B), as the case may be, and provided that the applicable conditions set forth 
  

 32 

 in Section 2.11 hereof have been satisfied, the Issuing Lender shall, on the requested date, issue a Letter of Credit on
behalf of Borrowers in accordance with the Issuing Lender’s usual and customary business practices. In addition, any amendment of an existing Letter of Credit shall be deemed to be an issuance of a new Letter of Credit and shall be subject to
the requirements set forth above. The Issuing Lender shall give Agent prompt written notice of the issuance of any Letter of Credit. 
  
 (F) Nature of Lenders’ Obligations. 
  

(i) As between Borrowers and Lenders, Borrowers assume all risks of the acts and omissions of, or misuse of the Letters of Credit by,
the respective beneficiaries of the Letters of Credit. In furtherance and not in limitation of the foregoing, Lenders shall not be responsible for (a) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted
by any party in connection with the application for an issuance of a Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (b) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (c) the failure
of the beneficiary of a Letter of Credit to comply fully with conditions required to be satisfied by any Person other than the Issuing Lender in order to draw upon such Letter of Credit (other than a failure to satisfy documentary conditions to
drawing where payment of the Letter of Credit despite such failure would constitute gross negligence or willful misconduct of the Issuing Lender); (d) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, facsimile transmission, telex or otherwise; (e) the misapplication by the beneficiary of a Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (f) any consequences arising from causes beyond control of
the Issuing Lender. 
  
 (ii) In furtherance and
extension and not in limitation of the specific provisions hereinabove set forth (including in Section 2.13(D)), any action taken or omitted by the Issuing Lender under or in connection with the Letters of Credit or any related certificates, if
taken or omitted in good faith, shall not put Agent or any Lender under any resulting liability to Borrowers or relieve Borrowers of any of its obligations hereunder to the Issuing Lender or any such Person. 
  
 (G) Compensation for Letters of Credit. Borrowers
shall pay to Agent (for the benefit of the Issuing Lender and the other Lenders) on the first Business Day of each calendar quarter, in arrears, any processing, issuance, amendment or other similar fees customarily charged in connection with Letters
of Credit, together with the Issuing Lender’s out-of-pocket costs of issuing and servicing letters of credit plus an amount equal to the product of (i) the face amount of each Letter of Credit issued and (ii) the Applicable Margin (the
“Letter of Credit Fees”). All Letter of Credit Fees shall be computed on the basis of the actual number of days elapsed in a year of 360 days. 
  

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	3.	PAYMENTS. 

  

	 	3.1	Making of Payments. 

  
 (A) All payments and prepayments of principal, or interest on, the Notes shall be made by Borrowers to Agent in immediately available
funds for the account of the holders of the Notes pro rata according to the respective unpaid amounts of principal or interest, as the case may be, owed to such holders. Payment of the Loan Fee and all payments of non-use fees shall be made by
Borrowers to Agent for the account of Lenders pro-rata according to their respective Percentages. All such payments shall be made to Agent at its office in Chicago, not later than 12:30 p.m. Chicago time, on the date due, and funds received after
that hour shall be deemed to have been received by Agent on the next succeeding Business Day. Agent shall, on the Business Day a payment is deemed to be received in collected funds by it, remit to each Lender or other holder of a Note its share of
such payment. 
  
 (B) Unless Borrowers or a
Lender, as the case may be, notify Agent prior to the date on which it is scheduled to make payment to Agent of (i) in the case of a Lender, the proceeds of a Loan under the Revolving Credit Facility or (ii) in the case of Borrowers, a payment of
principal, interest or fees to Agent for the account of Lenders, that it does not intend to make such payment, Agent may assume that such payment has been made. Agent may, but shall not be obligated to, make the amount of such payment available to
the intended recipient in reliance upon such assumption. If Borrowers have not in fact made such payment to Agent, Lenders shall, on demand by Agent, repay to Agent the amount so made available together with interest thereon in respect of each day
during the period commencing on the date such amount was so made available by Agent until the date Agent recovers such amount at a rate per annum equal to the federal funds rate for such day. If any Lender has not in fact made such payment to Agent
(such a Lender herein called a “Non-Funding Lender”), such Non-Funding Lender or Borrowers shall, on demand by Agent, repay to Agent the amount so made available together with interest thereon in respect of each day during the
period commencing on the date such amount was so made available by Agent until the date Agent recovers such amount at a rate per annum equal to (i) in the case of payment by a Non-Funding Lender, an amount equal to $200 plus the federal funds
effective rate for such day or (ii) in the case of payment by Borrowers, the interest rate applicable to the relevant Loan (it being understood and agreed that prior to making a request pursuant to this clause (ii) Agent will use its best efforts to
request that Lenders (other than a Non-Funding Lender) reallocate such amount among Lenders (other than a Non-Funding Lender) subject to Section 2.1. 
  

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	 	3.2	Payment Terms. 

  
 (A) General. All of the Liabilities shall be paid to Agent at the address set forth in Section 10.10. Subject to the remainder
of this Section 3.2 and Section 8.2, the Liabilities will be payable as follows: 
  
 (i) accrued interest shall be payable in arrears on the applicable Interest Payment Date; 
  
 (ii) fees, costs, expenses and similar charges shall be
payable as and when provided for in this Agreement or the Ancillary Agreements; and 
  
 (iii) the then outstanding principal balance of the Revolving Credit Facility shall be payable in full on the Revolving Credit Termination
Date. 
  
 Except as otherwise set forth herein (including, but
not limited to Section 2.10 hereof), Borrowers may prepay all or any portion of the Loans upon notice from Borrowers to Agent at least one (1) day before the date of prepayment, without penalty or premium, at any time and from time to
time; provided that all prepayments of principal shall include interest accrued to the date of prepayment on the principal amount being prepaid. After maturity (whether upon acceleration or otherwise) of any Liabilities, accrued interest on such
Liabilities shall be payable upon demand. 
  
 Borrowers shall
have the right to terminate this Agreement provided that the Liabilities have been repaid in full, by prepayment in accordance with this Section 3.2(A) or otherwise, provided that Borrowers shall deliver to Agent written notice of such
termination at least three (3) Business Days before such termination shall take effect. 
  
 (B) Mandatory Prepayment. Borrowers shall not permit the sum of (i) the aggregate amount of Letter of Credit Obligations plus
(ii) the aggregate principal amount of Loans outstanding at any time to exceed the then current Availability. Borrowers agree, jointly and severally, to make such payments to Agent on the Loans which are necessary to cure any such excess within
two (2) Business Days after the occurrence thereof. To the extent that any payment made under the previous sentence is insufficient to cause the Letter of Credit Obligations to be equal to or less then the Availability, Borrowers agree, jointly
and severally, to immediately deposit with Agent an amount of cash equal to the entire Letter of Credit Obligation with respect to one or more Letters of Credit which are causing the deficiency (which, for this purpose, shall be deemed to be Cash
Collateralized Letters of Credit) in the Cash Collateral Account. To the extent that one or more Cash Collateralized Letter(s) of Credit expire (and are not drawn upon) and are not extended or are otherwise terminated without any liability to Agent,
the Issuing Lender or Lenders, which results in the sum of (i) the aggregate principal amount of Loans outstanding plus (ii) the aggregate amount of Letter of Credit Obligations being equal to or less than the Availability as of such date,
Agent shall refund the cash held in the Cash Collateral Account with respect to such Cash Collateralized Letter of Credit to the Borrowers within five (5) Business Days less any 
  

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 Letter of Credit Fees applicable thereto. In addition, following any such deposit of cash in the Cash Collateral Account,
at any time and from time to time that the sum of (i) the aggregate principal amount of Loans outstanding plus (ii) the aggregate principal amount of Letter of Credit Obligations becomes equal to or less than the sum of (x) the
Availability plus (y) the amount of cash held in the Cash Collateral Account as of such date, Agent shall refund to the Borrowers within (5) Business Days a sum of cash held in the Cash Collateral Account equal to such excess less any
Letter of Credit Fees applicable thereto. No Lender shall be under an obligation to make Loans or to issue any Letter of Credit during the period that any such excess described in the first sentence of this Section 3.2(B) exists or would result
from the making of an additional Loan under the Revolving Credit Facility or issuing an additional Letter of Credit. 
  

	3.3	Lockbox; Collection of Accounts and Payments. 

  
 (A) Lockbox. Borrowers shall maintain a special account as a lockbox in Borrowers’ names with Agent, upon such terms as are required by Agent,
to which Borrowers and their domestic Subsidiaries will cause all Account Debtors to send all remittances on Accounts and all customers party to Buy Back Agreements to send all remittances related to any purchases by such customers pursuant to such
Buy Back Agreements. If received directly by a Borrower or a domestic Subsidiary, such Borrower or domestic Subsidiary will immediately deposit in such special account all remittances and proceeds of the Collateral in the identical form in which
such payment was made, whether by cash or check. Borrowers agree that upon the occurrence and during the continuation of a Default or an Event of Default, all payments made to such special account or otherwise received by Agent, whether on the
Accounts, on any Buy Back Agreement or as proceeds of any other Collateral or otherwise, will be the sole and exclusive property of Agent for the benefit of Agent and Lenders and will be applied on account of the Liabilities. So long as no Default
or an Event of Default has occurred and is continuing, Borrowers shall be entitled to direct the use of the funds maintained in such special account in accordance with the terms of this Agreement. Two (2) Business Days after Agent’s
receipt of good funds, Agent will credit (conditional upon final collection) all payments received through the special account to the Liabilities. Each Borrower, its Subsidiaries and any Affiliates, shareholders, directors, officers, employees,
agents of such Borrower and its Subsidiaries and all Persons acting for or in concert with such Borrower shall, acting as trustee for Agent, receive, as the sole and exclusive property of Agent for the benefit of Agent and Lenders, any monies,
checks, notes, drafts or any other payments relating to or proceeds of Accounts, Buy Back Agreements or other Collateral which come into their possession or under their control and immediately upon receipt, shall remit the same or cause the same to
be remitted, in kind, to Agent, at Agent’s address set forth in Section 10.10. Borrowers agree, jointly and severally, to pay to Agent any and all reasonable fees, costs and expenses (if any) which Agent incurs in connection with opening
and maintaining the special account and depositing for collection by Agent any check or item of payment received or delivered to Agent on account of the Liabilities. 
  

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	 	(B)	Limitation of Liability. 

  
 (i) Agent shall have no liability to Borrowers other than that imposed upon it by law for its failure to exercise ordinary care with
respect to the lockbox established hereunder. Establishment of and substantial compliance with the procedures set forth herein or in other documents related to the lockbox by Agent shall be deemed to constitute the exercise of ordinary care. A mere
inadvertence or honest mistake of judgment will not constitute a failure to exercise ordinary care, and in no case will be deemed wrongful. Agent shall not be liable for consequential, indirect or special damages, even if it has been advised of the
possibility that they exist. Agent shall have no liability for mail not bearing a complete and proper address. 
  
 (ii) Agent shall not be liable for failure to perform any services under this Agreement within the time provided therefore in the event
and to the extent that such failure arises out of war, terrorism, civil commotion, an act of God, accident, interruption of power supplies or other utility or service, strikes or lockouts, delay in transportation, legislative action, government
regulations or interferences, or any other event beyond Agent’s control. 
  
 (iii) In the event Agent becomes involved in controversies or litigation with any third party or parties involving or relating to the services provided for herein to Borrowers, Borrowers agree, jointly and severally,
to indemnify Agent against any claims, costs, damages and liabilities, including reasonable attorneys’ fees and court costs incurred by or asserted against Agent to or by such third party or parties, excluding claims, costs, damages and
liabilities resulting from Agent’s gross negligence or willful misconduct. This indemnity shall survive the termination of this Agreement. 
  
 3.4 Application of Payments and Collections. Subject to the rights of the Borrowers to direct funds under
Section 3.3(A), Borrowers irrevocably waive the right to direct the application of payments and collections received by Agent and/or any Lender from or on behalf of Borrowers, and Borrowers agree that Agent shall have the continuing exclusive right
to apply and reapply any and all such payments and collections against the Liabilities in such manner as Agent may deem appropriate, notwithstanding any entry by Agent upon any of its books and records. To the extent that Borrowers make a payment or
payments to Agent or Agent receives any payment or proceeds of the Collateral for Borrowers’ benefit, which payment(s) or proceeds are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a
trustee, receiver or any other party under any bankruptcy act, state or federal law, common law or equitable cause, then to the extent of such payment or proceeds received, the Liabilities intended to be satisfied shall be revived and shall continue
in full force and effect, as if such payments or proceeds had not been received by Agent. Interest shall be payable out of the first collections received with respect to any proceeds of Collateral. 
  

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 3.5 Records. All advances to Borrowers, and all other
debits and credits provided for in this Agreement, shall be evidenced by entries made by Agent in its internal data control systems showing the date, amount and reason for each such debit or credit. 
  
 3.6 Due Date Extension. If any
payment of principal or interest with respect to any of the Loans, or of any fees, falls due on a day which is not a Business Day, then such due date shall be extended to the immediately following Business Day (unless, in the case of a LIBOR Loan,
such immediately following Business Day is the first Business Day of a calendar month, in which case such due date shall be the immediately preceding Business Day) and, in the case of principal, additional interest shall accrue and be payable for
the period of any such extension. 
  

	4.	COLLATERAL; GENERAL TERMS. 

  
 4.1 Security Interest. To secure the prompt payment to each Lender of the Liabilities, each Borrower grants
to Agent, for the benefit of Agent and Lenders, a continuing security interest in and to all of such Borrower’s Property including the following Property and interest in Property of such Borrower, whether now owned or existing or to be acquired
or arising and wherever located: (i) all Accounts, Inventory, Equipment, General Intangibles, tax refunds, chattel paper, instruments, letters of credit, investment property, including, without limitation, stocks, bonds, interests in limited
liability companies, partnership interests, securities, certificates of deposit, mutual fund shares, securities entitlements, including, without limitation, all of each Borrower’s rights to any securities account, any free credit balance or
other money owing by any securities intermediary with respect to such account, all securities and commodities held by Agent or any of its Affiliates, all commodity contracts held by any Borrower and all commodity accounts held by any Borrower,
documents and documents of title evidencing or issued with respect to any of the foregoing; (ii) all of such Borrower’s deposit accounts (general or special) with and credits and other claims against Agent or any Lender; (iii) all of
such Borrower’s now owned or to be acquired monies, and any and all other property of such Borrower now or to be coming into the actual possession, custody or control of Agent, any Lender or any agent or affiliate of any Lender in any way or
for any purpose (whether for safekeeping, deposit, custody, pledge, transmission, collection or otherwise); (iv) all insurance proceeds of or relating to any of the foregoing; (v) all of such Borrower’s books and records, including
without limitation customer lists, credit files, computer programs, printouts and other materials, relating to any of the foregoing; (vi) the Cash Collateral Account; and (vii) all accessions and additions to, substitutions for, and
replacements, products and proceeds of any of the foregoing. 
  
 4.2 Disclosure of Security Interest. Each Borrower shall make appropriate entries upon its financial statements and books and records disclosing Agent’s security interest in the Collateral
of such Borrower. 
  
 4.3
Special Collateral. Immediately upon receipt by a Borrower of any Collateral that is evidenced or secured by an agreement, chattel paper, instrument or document, including, without limitation, promissory notes, documents of title and
warehouse receipts (the “Special Collateral”), such Borrower shall deliver the original thereof to Agent or to such agent of Agent as Agent shall designate, together with appropriate endorsements, or other specific evidence (in form
and substance acceptable to Agent) of assignment thereof to Agent. 
  

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 4.4 Further Assurances. Each Borrower hereby irrevocably
authorizes Agent at any time, and from time to time, to file in any jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all assets of each such Borrower or words of similar effect,
regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the jurisdiction wherein such financing statement or amendment is filed or (ii) as being of an equal or
lesser scope or within greater detail and (b) contain any other information required by Section 5 of Article 9 of the Uniform Commercial Code of the jurisdiction wherein such financing statement or amendment is filed regarding the
sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether such Borrower is an organization, the type of organization and any organization identification number issued to such Borrower and
(ii) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates. Each Borrower agrees to
furnish any such information to Agent promptly upon request. Each Borrower further ratifies and affirms its authorization for any financing statements and/or amendments thereto, previously filed by Agent in any jurisdiction. 
  
 4.5 Inspection. Each Borrower
agrees to permit Agent and its duly authorized representatives and agents, upon prior notice, during normal business hours, and if no Default or Event of Default has occurred and is continuing, no more than once per calendar year, to visit and
inspect any of the Collateral of such Borrower, corporate books and financial records of such Borrower, to examine and make copies of the books of accounts and other financial records of such Borrower, and to discuss the affairs, finances and
accounts of such Borrower with, and to be advised as to the same by, its officers, employees and independent public accounts (and by this provision such Borrower hereby authorizes such accountants to discuss with Agent the finances and affairs of
such Borrower); provided that after the occurrence of and during the continuance of an Event of Default, such inspections may occur during normal business hours without notice and at such times and intervals as Agent may designate. 
  
 4.6 Location of Collateral.
Borrowers’ chief executive office, principal places of business and all other offices and locations of the Collateral and books and records related thereto (including, without limitation, computer programs, printouts and other computer
materials and records concerning the Collateral) are set forth on Schedule 1.1.2. Borrowers shall not remove their respective books and records or the Collateral from any Eligible Collateral Location (except to another Eligible Collateral Location
and except for removal of items of Inventory upon sale in accordance with Section 5.6) and shall not change the location of their chief executive office, open any new offices (provided that an employee of any Borrower working from such
employee’s home shall not be deemed to be opening a new office) or relocate any of their respective books and records or the Collateral except within the continental United States of America with at least thirty (30) days’ prior
written notice thereof to Agent. 
  

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 4.7 Agent’s Payment of Claims Asserted Against
Borrowers. Agent may, but shall not be obligated to, at any time or times, in its sole discretion, and without waiving any Event of Default or waiving or releasing any obligation, liability or duty of Borrowers under this Agreement or the
Ancillary Agreements, pay, acquire or accept an assignment of any security interest, Lien, claim or other encumbrance asserted by any Person against the Collateral. All sums paid by Agent under this Section 4.7, including all costs, fees
(including without limitation reasonable attorney’s and paralegals’ fees and court costs), expenses and other charges relating thereto, shall be payable by Borrowers, jointly and severally, to Agent on demand and shall be additional
Liabilities secured by the Collateral. 
  

 4.8 Letter of Credit Rights. If any Borrower at any time is a beneficiary under a letter of
credit now or hereafter issued in favor of such Borrower, such Borrower shall promptly notify Agent thereof and, at the request and option of Agent, such Borrower shall, pursuant to an agreement in form and substance satisfactory to Agent, either
(i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to Agent of the proceeds of any drawing under the letter of credit or (ii) arrange for Agent to become the transferee beneficiary of the
letter of credit, with Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be applied as provided in this Agreement. 
  
 4.9 Commercial Tort Claims. If any Borrower shall at any time hold or acquire
a Commercial Tort Claim, the Borrower shall immediately notify Agent in writing signed by such Borrower of the details thereof and grant to Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory to Agent. 
  
 4.10 Electronic Chattel Paper and Transferable Records. If any Borrower at any time holds or acquires an interest in any electronic chattel paper or any “transferable
record”, as that term is defined in Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or in §16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such Borrower
shall promptly notify Agent thereof and, at the request of Agent, shall take such action as Agent may reasonably request to vest in Agent control under Section 9-105 of the UCC of such electronic chattel paper or control under Section 201
of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. Agent agrees with Borrowers that
Agent will arrange, pursuant to procedures reasonably satisfactory to Agent and so long as such procedures will not result in Agent’s loss of control, for such Borrower to make alterations to the electronic chattel paper or transferable record
permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or §16 of the Uniform Electronic Transactions Act for a party in control to make
without loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Borrower with respect to such electronic chattel paper or transferable record. 
  
 4.11 Continuation of Security
Interest. Borrowers agree and confirm that nothing in this Agreement shall be construed to release, cancel, terminate or otherwise adversely affect all or any part of any Lien or other encumbrance granted with respect to the loans under the
Existing Loan Agreement and such security shall continue to secure the Liabilities. 
  

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 5. COLLATERAL; ACCOUNTS AND COLLATERAL MAINTENANCE. 
  
 5.1 Verification of Accounts and
Inventory. Any of Agent’s officers, employees or agents shall have the right, at any time or times following the occurrence and during the continuation of a Default or an Event of Default, in Agent’s or Borrowers’ name or in
the name of a firm of independent certified public accountants acceptable to Agent, during normal business hours, to verify the validity, amount or any other matters relating to any Accounts and Inventory by mail, telephone, telecopy or otherwise,
provided that Agent’s officers, employees or agents give one (1) day advance notice to any party subject to Agent’s account verification activities that are conducted on the premises of such party. 
  
 5.2 Assignments, Records and Accounts
and Inventory Report. Each Borrower shall keep accurate and complete records of its Accounts. Borrowers shall deliver to Agent, upon demand, a copy of (and after the occurrence of and during the continuance of an Event of Default, the
original of) all documents relating to the Accounts and such other matters and information relating to the status of then existing Accounts as Agent shall reasonably request. 
  
 5.3 Notice Regarding Disputed Accounts. Borrowers shall give Agent prompt
notice of any dispute in excess of $5,000,000 in respect of any Account. Each such notice shall identify any such disputed Account and disclose with respect thereto, in reasonable detail, the reason for the dispute, all claims related thereto and
the amount in controversy. Agent shall promptly notify each Lender of receipt of such a notice. 
  
 5.4 Sale or Encumbrance of Accounts. No Borrower shall, without the prior written consent of Agent, sell,
transfer, grant a security interest in or otherwise dispose of or encumber any of its Accounts to any Person other than Agent, except for the Permitted Liens. 
  

5.5 Equipment. Each Borrower shall keep and maintain in good operating condition (normal wear and tear
excepted), and repair and make all necessary replacements and renewals to, the Equipment so that the value and operating efficiency thereof shall at all times be maintained and preserved, and keep such Equipment only at an Eligible Collateral
Location. 
  
 5.6 Notice of
Loss; Prohibition on Sale or Disposition. Borrowers shall immediately notify Agent of any material loss or depreciation in value of the Collateral. Borrowers shall not sell, transfer or otherwise dispose of any Collateral; provided that
until notice is given by Agent to Borrowers, Borrowers may sell Inventory in the ordinary course of business substantially in the same manner as now conducted, but a sale in the ordinary course of business shall not include any transfer or sale in
satisfaction, partial or complete, of a debt owed by a Borrower; provided further that Borrowers may transfer Collateral other than Inventory so long as the aggregate sales price of such Collateral sold during any 12 month period shall not exceed
$5,000,000. 
  

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 5.7 Compliance with Buy Back Agreements. Each Borrower
shall fully comply with all terms and conditions of any Buy Back Agreements to which such Borrower is a party. 
  
 6. WARRANTIES AND REPRESENTATIONS. 
  
 6.1 General Warranties and Representations. Each Borrower warrants and represents to Agent and Lenders that:

  
 (A) (i) ModusLink is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and its state issued organizational identification number is 2831732, (ii) SalesLink is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware and its state issued organizational identification number is 2721217 and (iii) SalesLink Mexico is a corporation duly organized, existing and in good standing under the laws of the state of Delaware
and its state issued organizational number is 3111152. Each Borrower is qualified or licensed as a foreign corporation to do business in all other states in which the laws thereof require such Borrower to be so qualified or licensed except where a
lack of such qualification or licensing will not have a Material Adverse Effect on the business, operations or financial condition of such Borrower; 
  
 (B) Such Borrower has not used, during the five (5) year period preceding the date of this Agreement, and on the date hereof does not
intend to use, any other corporate or fictitious name, except as disclosed in Schedule 6.1(B); 
  
 (C) Such Borrower has the right and power and is duly authorized and empowered to enter into, execute, deliver and perform this Agreement
and the Ancillary Agreements; 
  
 (D) The
execution, delivery and performance by such Borrower of this Agreement and the Ancillary Agreements shall not, by its execution or performance, the lapse of time, the giving of notice or otherwise, constitute a violation of any applicable law, rule,
regulation, judgment, order or decree applicable to such Borrower or its assets or constitute a breach of any provision contained in such Borrower’s charter or by-laws or contained in any material agreement, instrument, indenture or other
document to which such Borrower is now a party or by which it or any of its property is bound; 
  
 (E) Such Borrower’s use of the proceeds of any advances made by each Lender hereunder are, and will continue to be, legal and proper
corporate uses (duly authorized by its board of directors, in accordance with any applicable law, rule or regulation) and such uses are consistent with all applicable laws, rules and regulations, as in effect as of the date hereof; 
  
 (F) Such Borrower has, and is current and in good standing
with respect to, all material governmental approvals, permits, certificates, inspections, consents and franchises necessary to conduct and to continue to conduct its business and its intended business and to own or lease and operate its properties
as now owned or leased and operated by it; 
  

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 (G) None of such approvals, permits, certificates, consents or franchises contains any
term, provision, condition or limitation more burdensome than such as are generally applicable to Persons engaged in the same or similar business as such Borrower; 
  
 (H) Such Borrower now has capital sufficient to carry on its business and transactions and all businesses
and transactions in which it is about to engage and is now able to pay its debts as they mature and such Borrower now owns property the fair saleable value of which is greater than the amount required to pay such Borrower’s debts; 

 
 (I) Except as disclosed in the Financials, (i) there
is no litigation, suit, action, proceeding, inquiry or investigation pending or, to the best of such Borrower’s knowledge, threatened against such Borrower which if unfavorably determined would materially adversely affect the transactions
contemplated hereby, or such Borrower’s property, assets, operations or condition (financial or otherwise) (except as shown on Financials and on Schedule 6.1(I)) and (ii) such Borrower has no Indebtedness and has not guaranteed the
obligations of any other Person (except for Permitted Debt); 
  
 (J) (i) There are no strikes, work stoppages, labor disputes decertification petitions, union organizing efforts, grievances or other claims pending or, to such Borrower’s knowledge, threatened in writing,
between such Borrower and any of its employees, other than employee grievances arising in the ordinary course of business which, in the aggregate, would not have a Material Adverse Effect on such Borrower and (ii) to the best of such
Borrower’s knowledge, such Borrower has no obligation under any collective bargaining agreement or any material employment agreement. To such Borrower’s knowledge, there is no organizing activity pending or threatened in writing by any
labor union or group of employees. There are no representation proceedings pending or threatened with the National Labor Relations Board or other applicable governmental authority, and no labor organization or group of employees has made a pending
demand for recognition. There are no material complaints or charges pending or, to such Borrower’s knowledge, threatened to be filed with any governmental authority or arbitrator based on, arising out of, in connection with or otherwise
relating to the employment or termination of employment by such Borrower of any individual or group of individuals which, if decided adversely to such Borrower, would have a Material Adverse Effect on such Borrower; 
  
 (K) Such Borrower has good, indefeasible and merchantable
title to and ownership of its Collateral, free and clear of all Liens, claims, security interests and other encumbrances, except those of Agent and Permitted Liens; 
  
 (L) Such Borrower is not in violation of any applicable statute, rule, regulation or ordinance of any
governmental entity, including, without limitation, the 

  

 43 

 
United States of America, any state, city, town, municipality, county or of any other jurisdiction, or of any agency thereof, in any respect materially and
adversely affecting the Collateral or such Borrower’s business, property, assets, operations or condition, financial or other; 
  
 (M) Such Borrower is not in default under any indenture, loan agreement, mortgage, material lease, trust deed, deed of trust or other
similar agreement relating to the borrowing of monies to which it is a party or by which it or any of its Property is bound; 
  
 (N) The Financials fairly present in all material respects the assets, liabilities and financial condition and results of operations of
such Borrower and such other Persons as are described therein as of the stated dates; there are no omissions or other facts or circumstances which are or may be material and there (i) has been no material and adverse change in the assets,
liabilities or financial or other condition of such Borrower or any such Person since the date of the Financials and (ii) exists no equity or long term investments in or outstanding advances to any Person not reflected in the Financials;

  
 (O) No Borrower has received a notice to the
effect that it is not in full compliance with any of the requirements of ERISA and the regulations promulgated thereunder and, to the best of its knowledge, there exists no event described in Section 4043 of ERISA, excluding subsections
4043(b)(2) and 4043(b)(3) (a “Reportable Event”); 
  
 (P) Such Borrower has filed all federal, state and local tax returns and other reports (taking into account any extension of time to file granted to or obtained on behalf of Borrower), or has been included in
consolidated returns or reports filed by an Affiliate, which such Borrower is required by law, rule or regulation to file and all Charges that are due and payable have been paid, except for Charges being contested in good faith and for which
adequate reserves are being maintained; 
  
 (Q)
Such Borrower’s execution and delivery of this Agreement and the Ancillary Agreements do not directly or indirectly violate or result in any violation of the Securities Exchange Act of 1934, as amended, or any regulations issued pursuant
thereto, including without limitation, Regulation U, T or X of the Board of Governors of the Federal Reserve System (12 CFR 221, 207, 220 and 224, respectively) and Borrower does not own or intend to purchase or carry any “margin
security,” as defined in such Regulations; 
  
 (R) Except as set forth on Schedule 6.1(R), as of the date of this Agreement such Borrower has no Subsidiaries and does not own an equity interest in any other Person; 
  

 44 

 (S) Such Borrower has no knowledge of any fact or circumstance which would impair the
validity or collectibility of any material amount of its Accounts or General Intangibles; 
  
 (T) None of such Borrower’s Collateral has been pledged or sold to any other Person or otherwise encumbered, such Borrower is the
owner of its Collateral free of all Liens and encumbrances except those of Agent and except for the Permitted Liens and no financing statement has been filed concerning the Collateral, except any filed on behalf of Agent and those relating to
Permitted Liens; 
  
 (U) To the best of such
Borrower’s knowledge, each property (including underlying ground water), operation and facility that such Borrower operates or controls is in compliance with all statutes, judicial or administrative orders, licenses, permits and governmental
rules and regulations applicable to them, including, without limitation, Environmental Laws, the noncompliance with which is reasonably likely to have a Material Adverse Effect on the financial condition, continued operations or Property of such
Borrower; 
  
 (V) Such Borrower possesses
adequate copyrights, patents, trademarks, trade secrets and computer software to conduct its business and all such intellectual property (other than computer software and trade secrets) in the possession of such Borrower as of the date of this
Agreement is listed on Schedule 6.1(V); and 
  
 (W) Neither such Borrower nor any Affiliate of such Borrower is in any way associated with or related to The Lake Group, Inc., d/b/a Pacific Direct, Lake Graphics and Elan Resources, which filed bankruptcy in the Northern District of
California Case No. 93-30351. 
  

 6.2 Account Warranties and Representations. Each Borrower warrants and represents to Agent and
each Lender that such Agent and such Lender may rely on all statements, warranties and representations made by such Borrower on or with respect to any Accounts and Inventory Report and, unless otherwise indicated in writing by such Borrower, that:

  
 (A) Such Borrower’s Accounts are
genuine, are in all respects what they purport to be, are not reduced to a judgment and, if evidenced by any instrument, item of chattel paper, agreement, contract or documents, are evidenced by only one executed original instrument, item of chattel
paper, agreement, contract or document, which original has been endorsed and delivered to Agent; 
  
 (B) Such Borrower’s Accounts represent undisputed, bona fide transactions completed in accordance with the terms and provisions
contained in any related documents; 
  

 45 

 (C) The amounts shown on any Accounts and Inventory Report, and all invoices and
statements delivered to Agent with respect to any Account, are actually and absolutely owing to such Borrower and are not contingent for any reason; 
  
 (D) Except as may be disclosed on such Accounts and Inventory Report, there are no setoffs, counterclaims or disputes existing or asserted
with respect to any Accounts included on an Accounts and Inventory Report, and such Borrower has not made any agreement with any Account Debtor for any deduction from such Account, except for discounts or allowances allowed by such Borrower in the
ordinary course of its business for prompt payment, which discounts and allowances have been disclosed to Agent and are reflected in the calculation of the invoice related to such Account; 
  
 (E) To the best of such Borrower’s knowledge, there are
no facts, events or occurrences which in any way impair the validity or enforcement of any of the Accounts or tend to reduce the amount payable thereunder from the amount of the invoice shown on any Accounts and Inventory Report, and on all
contracts, invoices and statements delivered to Agent with respect thereto; 
  
 (F) To the best of such Borrower’s knowledge, all Account Debtors are Solvent and had the capacity to contract at the time any contract or other document giving rise to or evidencing the Accounts was executed;
and 
  
 (G) To the best of such Borrower’s
knowledge, there are no proceedings or actions which are threatened in writing or pending against any Account Debtor which might result in any material adverse change in such Account Debtor’s financial or other condition. 
  
 6.3 Automatic Warranty and
Representation and Reaffirmation of Warranties and Representations. Each request for a Loan made by Borrowers pursuant to this Agreement or the Ancillary Agreements shall constitute (i) an automatic warranty and representation by
Borrowers to Agent and each Lender that there does not then exist a Default or an Event of Default and (ii) a reaffirmation as of the date of such request of all of the warranties and representations of each Borrower contained in this Agreement
and in the Ancillary Agreements. 
  

 6.4 Survival of Warranties and Representations. Each Borrower covenants, warrants and
represents to Agent and each Lender that all representations and warranties of such Borrower contained in this Agreement and the Ancillary Agreements shall be true at the time of such Borrower’s execution of this Agreement and the Ancillary
Agreements, and shall survive the execution, delivery and acceptance by the parties and the closing of the transactions described in this Agreement. 
  

 46 

	7.	COVENANTS AND CONTINUING AGREEMENTS. 

  
 7.1 Financial Covenants. 
  
 (i) Balance Sheet Leverage Ratio. Borrowers shall maintain, as of the last day of each fiscal quarter
following the date of this Agreement through and including the date of termination of this Agreement, a Balance Sheet Leverage Ratio of not more than 2.75:1.0. 
  

(ii) Minimum Capital Funds. Borrowers shall maintain Capital Funds of not less than $330,000,000 as of the last day of each
fiscal quarter following the date of this Agreement. 
  
 (iii) Fixed Charge Coverage Ratio. From the date of this Agreement until the Revolving Credit Termination Date, Borrowers and their Subsidiaries (on a consolidated basis) shall maintain a minimum Fixed Charge Coverage Ratio of
2.50:1.0 as of the last day of each fiscal quarter. The Fixed Charge Coverage Ratio shall be calculated on a trailing twelve month basis. 
  
 7.2 Affirmative Covenants. Each Borrower covenants, unless at any time the Required Lenders shall otherwise
expressly consent in writing, it shall: 
  
 (A)
Fees and Costs. Pay to Agent on demand, any and all reasonable fees, costs or expenses which Agent or any Lender incurs arising out of or in connection with (i) the forwarding to Borrowers, or any other Person on behalf of Borrowers, by
Agent of proceeds of Loans made to Borrowers pursuant to this Agreement and (ii) the depositing for collection by Agent, of any check or item of payment received or delivered to Agent on account of the Liabilities; 
  
 (B) Insurance. At its sole cost and expense, keep and
maintain the Collateral, its other assets and its business insured in such amounts and against loss or damage by fire, theft, explosion, sprinklers and all other hazards and risks (including business interruption) as is ordinarily insured against by
other owners or users of such properties in similar businesses and notify Agent promptly of any event or occurrence causing a material loss or decline in value of the Collateral and the estimated (or actual, if available) amount of such loss or
decline; 
  
 (C) Financial Reports. Keep
books of account and prepare financial statements and furnish to Agent and each Lender the following (all of the foregoing and following to be kept and prepared in accordance with generally accepted accounting principles applied on a basis
consistent with the Financials, unless Borrowers’ independent certified public accountants concur in any changes therein and such changes are disclosed to Agent and are consistent with then generally accepted accounting principles): 

 

 47 

 (i) as soon as available, but not later than ninety (90) days after the close of each
fiscal year of Borrowers, (a) financial statements of Borrowers and Subsidiaries prepared on a consolidated basis (including a balance sheet, statement of income and retained earnings and cash flow, all with supporting footnotes) as at the end of
such year and for the year then ended, all in reasonable detail as requested by Agent and audited by a firm of independent certified public accountants of recognized standing selected by Borrowers and approved by Agent, together with an unqualified
opinion thereon from such certified public accountants and (b) internally prepared financial statements of Borrowers and Subsidiaries prepared on a consolidated basis by business line for the last quarter of such fiscal year of Borrowers, together
with a calculation sheet related thereto, signed by an authorized officer of each Borrower; 
  
 (ii) as soon as available, but not later than forty-five (45) days after the end of each fiscal quarter of Borrowers a Financial
Condition and Compliance Certificate (“Compliance Certificate”) in the form of Exhibit G attached hereto for such period; 
  
 (iii) as soon as available, but no later than thirty (30) days after the end of each month of each fiscal year of Borrowers,
internally prepared consolidated financial statements of Borrowers and Subsidiaries (including a balance sheet, statement of income and retained earnings and cash flow) as at the end of and for the portion of Borrowers’ fiscal year then
elapsed, all in reasonable detail as requested by Agent and certified by Borrowers’ principal financial officer as prepared in accordance with generally accepted accounting principles and fairly presenting in all material respects the financial
position and results of operations of Borrowers and Subsidiaries for such period (subject to normal year-end audit adjustments and omission of footnotes); 
  
 (iv) within thirty (30) days after the last day of each month of each fiscal year of Borrowers, (a) an Accounts and Inventory Report;
provided that in the event loans outstanding under the Revolving Credit Facility are less than $5,000,000, Borrowers shall not be required to provide the information set forth in (iv) of the definition of Accounts and Inventory Report and (b) a
properly completed and executed certificate (“Borrowing Base Certificate”), in the form of Exhibit H attached hereto or in such other form as Agent deems acceptable, setting forth a calculation of the Borrowing Base as at the last
day of such month; 
  
 (v) as soon as available
upon request of Agent, but no later than thirty (30) days after such request, pro forma financial projections for Borrowers and Subsidiaries prepared on a consolidated basis for the then current fiscal quarter; 
  
 (vi) prior to the beginning of each fiscal year, annual
projections for Borrowers and Subsidiaries prepared on a consolidated basis for the upcoming fiscal year; 
  

 48 

 (vii) such other data and information (financial and otherwise) as Agent or any Lender,
from time to time, may reasonably request, bearing upon or related to the Collateral, Borrowers’ or any Affiliate’s financial condition or results of its operations, or the financial condition of any Person who is a guarantor of any of the
Liabilities; 
  
 (D) Litigation and Other
Events. Notify Agent, promptly upon such Borrower’s learning of: (i) the institution or threat of any litigation, suit, action, inquiry, investigation or administrative proceeding which, if adversely determined, could reasonably be expected
to materially and adversely affect the operations, financial condition or business of such Borrower or any Affiliate or which may affect Agent’s security interest in the Collateral; (ii) the occurrence of an Event of Default or Default; (iii)
any Borrower’s use of any other corporate or fictitious name other than as currently used; (iv) any Borrower’s formation of any Subsidiary; or (v) any Borrower’s obtaining any copyrights, patents, trademarks and similar intellectual
property; 
  
 (E) Bank Accounts; Compensating
Balances. Maintain all of its primary bank accounts and its primary banking relationship with Agent. Without affecting such obligation to maintain such balances, if such Borrower fails to maintain such balances, then on the last day of such
calendar quarter of each year such Borrower shall pay to Agent in arrears, immediately upon demand, a reasonable fee in lieu of balances as determined by Agent which may be charged at Agent’s option to any bank account of any Borrower with
Agent. Neither the maintenance of balances nor payment of any fees shall obligate Agent or any Lender to make any advances under the Revolving Credit Facility. Any balances in bank accounts and fees shall compensate, and be deemed to compensate,
Agent for the cost incurred by Agent in being prepared to respond to requests for credit under the Revolving Credit Facility and for costs incurred by Agent in processing and servicing such accounts; 
  
 (F) Reserve Costs. Upon demand by Agent or by any
Lender, reimburse Agent or such Lender for any reasonable additional costs incurred by Agent or such Lender if at any time after the date of this Agreement any law, regulation, treaty or any change in any law, regulation, treaty or the
interpretation thereof by any governmental agency, central bank or other fiscal, monetary or other authority having jurisdiction of Agent or such Lender shall impose, modify or deem applicable any reserve (except reserve requirements taken into
account by Agent or such Lender in calculating the Interest Rate) and/or special deposit requirement against Agent or such Lender or impose any other condition with respect to the loans or other financial accommodations the result of which is to
increase the cost to Agent or such Lender in making or maintaining the Loans or to reduce the amount of principal or interest received or receivable by Agent or such Lender with respect to the Liabilities. Such Borrower’s reimbursement
obligation shall apply only to those costs which directly result from the imposition of such requirement and shall begin as of the date of any such change in law, treaty, rule or regulation. Notwithstanding the preceding, such Borrower shall not be
required to pay any such additional costs which could be avoided by Agent or such Lender with the exercise of reasonable conduct and diligence; 
  

 49 

 (G) Existence and Status. Maintain and preserve and cause each Subsidiary to
maintain and preserve its existence as a limited partnership, limited liability company or corporation, as applicable, in its state of formation and all rights, privileges, licenses, copyrights, trademarks, trade names, franchises and other
authority to the extent material and necessary for the conduct of its business in the ordinary course as conducted from time to time. Such Borrower shall not take any action or suffer any action to be taken by others and will not permit any
Subsidiary to take any action or suffer any action which will alter, change or destroy its status as a limited partnership, limited liability company or corporation; 
  
 (H) Use of Proceeds. Use proceeds of the Loans as follows: to finance working capital of Borrowers
and their Subsidiaries (whether within or outside of the United States); 
  
 (I) Environmental Covenant. (a) Use and operate and cause each Subsidiary to use and operate all of its facilities and properties in material compliance with all Environmental Laws, keep all necessary
permits, approvals, certificates, licenses and other authorizations relating to environmental matters in effect and remain in material compliance therewith, and handle all hazardous substances and waste in material compliance with all applicable
Environmental Laws; (b) immediately notify Agent and each Lender and provide copies upon receipt of all written claims, complaints, notices or inquiries relating to the condition of its, or any Subsidiary’s, facilities and properties or
compliance with Environmental Laws, and shall (i) promptly cure and have dismissed with prejudice to the satisfaction of Agent any actions and proceedings relating to compliance with Environmental Laws or (ii) contest any such actions or
proceedings in good faith by appropriate proceedings and establish adequate reserves therefor; and (c) provide such information and certifications which Agent may reasonably request from time to time to evidence compliance with this subsection;

  
 (J) Field Audits. Each fiscal year,
Borrowers shall permit Agent, during normal business hours and upon no less than three (3) Business Days’ notice, to inspect the Inventory, other tangible assets and/or other business operations of each Borrower and its Subsidiaries, to
perform appraisals of the Equipment of each Borrower and its Subsidiaries, and to inspect, audit, check and make copies of, and extracts from, the books, records, computer data, computer programs, journals, orders, receipts, correspondence and other
data relating to Inventory, Accounts and any other Collateral, the results of which must be satisfactory to the Bank in the Bank’s reasonable discretion. All such inspections or audits by the Bank shall be at the Borrowers’ expense (which
shall be reasonable), provided that so long as no Default or Event of Default has occurred and is continuing, Borrowers shall not be required to reimburse Agent for inspections or audits more frequently than once each twelve-month period. The
Borrowers acknowledge that the next field audit conducted by Agent pursuant to this Section 7.2(J) may occur prior to April     , 2006 at Agent’s sole discretion; and 
  

 50 

 (K) Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply in all
material respects with all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could not reasonably be expected to have a Material Adverse Effect; (b) without limiting clause
(a) above, ensure that no person who owns a controlling interest in or otherwise controls such Borrower is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, executive order or regulation or (ii) a person designated under Section 1(b),
(c) or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar executive orders, (c) without limiting clause (a) above, comply with all applicable Bank Secrecy Act
(“BSA”) and anti-money laundering laws and regulations and (d) pay prior to delinquency, all taxes and other governmental charges against it or any Collateral, as well as claims of any kind which, if unpaid, could become
a Lien on any of its property; provided that the foregoing shall not require any Borrower to pay any such tax or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings and shall set aside on its books
adequate reserves with respect thereto in accordance with GAAP and, in the case of a claim which could become a Lien on any Collateral, such contest proceedings shall stay the foreclosure of such Lien or the sale of any portion of the collateral to
satisfy such claim. 
  
 7.3
Negative Covenants. Each Borrower covenants that, unless at any time the Required Lenders shall otherwise expressly consent in writing, it shall not: 
  
 (A) Capital Expenditures. Collectively with the other Borrowers, make Capital Expenditures in an
amount greater than $35,000,000 in any fiscal year; 
  
 (B) Mergers and Acquisitions. (i) Liquidate, dissolve or merge or consolidate with or acquire any Person, (ii) permit any Subsidiary to liquidate, dissolve or merge or consolidate with or acquire any Person or
(iii) lose control (as such term is defined in the definition of “Affiliate”) of any Subsidiary, except that any Borrower may merge or consolidate with any other Borrower; 
  
 (C) Investments. (i) Except in respect of other
Borrowers and other than in the ordinary course of its business, make any investment in the securities of any Person other than to a Subsidiary as permitted under Section 7.2(H) or (ii) use or permit any proceeds of the Loans to be used,
either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying” any margin stock (such Borrower will furnish to Agent upon request, a statement in conformity with the requirements of
Federal Reserve Form U-1 referred to in Regulation U of the Federal Reserve Board); 
  
 (D) Loans. Make any loans or other advances of money (other than salary) to any other Borrower, or any Affiliate, officers,
directors, employees or agents of Affiliates or such Borrower or to any other Person, except for (i) such loans or advances 
  

 51 

 to employees in the ordinary course of business consistent with past practice or
(ii) loans or advances to any other Borrower that are subordinated to the Liabilities on terms satisfactory to Agent; 
  
 (E) Capital Structure and Business. Make any material change in such Borrower’s capital structure or in any of its business
objectives, purposes and operations; 
  
 (F)
Affiliate Transactions. Enter into, or be a party to, any transaction with any Affiliate or partner, shareholder, director or officer of such Borrower or an Affiliate, except in the ordinary course of and pursuant to the reasonable
requirements of such Borrower’s business and upon fair and reasonable terms which are fully disclosed to Agent and are no less favorable to such Borrower than could be obtained in a comparable arm’s length transaction with a Person not an
Affiliate or partner, shareholder, director or officer of such Borrower or an Affiliate; 
  
 (G) Adverse Transactions. (i) Enter or permit any Subsidiary to enter into any transaction which materially and adversely
affects the Collateral or such Borrower’s ability to repay Agent or any Lender the Liabilities or (ii) permit or agree to any extension, compromise or settlement or make any change or modification of any kind or nature with respect to any
Account, including any of the terms relating thereto, except in accordance with such Borrower’s current credit collection policy as disclosed to Agent and each Lender or in accordance with such Borrower’s past practices in the ordinary
course of business; 
  
 (H) Guarantees.
Except with respect to guarantees issued by ModusLink in connection with vendor contracts entered into by any Subsidiary in the ordinary course of business which could not reasonably be expected to have a Material Adverse Effect, guarantee or
otherwise, in any way, become liable with respect to the obligations or liabilities of any other Person, except by endorsement of instruments or items of payment for deposit to the general account of such Borrower or for delivery to Agent on account
of the Liabilities; 
  
 (I) Other Liens;
Transfer of Assets. Except for Permitted Liens and as otherwise expressly permitted in this Agreement or in the Ancillary Agreements, pledge, mortgage, grant a security interest in or permit to exist a Lien on, encumber, assign, sell, lease,
license or otherwise dispose of or transfer, whether by sale, merger, consolidation, liquidation, dissolution, or otherwise, any of such Borrower’s assets or permit any domestic Subsidiary to pledge, mortgage, grant a security interest in or
permit to exist a Lien on, encumber, assign, sell or otherwise dispose of or transfer, whether by sale, merger, consolidation, liquidation, dissolution or otherwise, any of such Subsidiary’s assets; 
  
 (J) Other Indebtedness. Incur or permit any domestic
Subsidiary to incur any Indebtedness other than Permitted Debt; 
  

 52 

 (K) Asset Purchase. Collectively with the other Borrowers, make any purchase or
otherwise acquire or permit any domestic Subsidiary to acquire all or substantially all or a substantial portion of the assets of any Person (or any division or line of business of any Person) in excess of $5,000,000 in any fiscal year. 

 
 (L) Organic Documents. Amend or otherwise modify
any material term of its certificate of limited partnership or agreement of limited partnership or charter and by-laws or other organic document, as applicable, in effect on the date hereof or on the date of its later formation except for
amendments, modifications or waivers that are not adverse in any way to Agent or Lenders; 
  
 (M) Restriction on Redemptions and Dividend Distributions. (i) Directly or indirectly purchase, redeem or otherwise acquire or
retire any interest of any shareholder of such Borrower, (ii) make or declare any partial or full liquidating distributions to any shareholder of such Borrower with respect to such shareholder’s interest in such Borrower or (iii) make
or declare any dividends or distributions to such Borrower’s equity holders; 
  
 (N) Restrictions on Activities for SalesLink Mexico. Until such time as SalesLink Mexico shall provide Agent with evidence of
insurance required by Section 7.2(B) hereof, SalesLink Mexico shall conduct no operations other than to hold the stock certificates of any Subsidiary of SalesLink Mexico; or 
  
 (O) Payments to CMGI. Make any payment to CMGI for the account of any accrued intercompany payables
or pursuant to the CMGI Notes; provided, however, that if no Default or Event of Default exists and, after giving effect to any such payment to CMGI, the Borrowers would have a positive cash flow as reflected on the Financials determined on a
consolidated basis in accordance with generally accepted accounting principles consistently applied, such Borrower may make payments to CMGI for the account of accrued intercompany payables or pursuant to the applicable provisions of the CMGI Notes,
both in accordance with the Intercreditor (Subordination) Agreement. 
  
 (P) Negative Pledge of Ownership Interests. Pledge, mortgage, grant a security interest in or permit to exist a Lien on, encumber, assign, sell, lease, license or otherwise dispose of or transfer, whether by
sale, merger, consolidation, liquidation, dissolution, or otherwise, any of such Borrower’s ownership interests in any Subsidiary of such Borrower (whether in the form of shares of stock, limited liability company interests, or otherwise).

  
 7.4 Contesting
Charges. Notwithstanding anything to the contrary in this Agreement, a Borrower may dispute any Charges without prior payment thereof, so long as such non-payment will not cause a Lien except a Permitted Lien to attach to such
Borrower’s assets, and provided that such Borrower shall give Agent and each Lender prompt notice of such dispute and shall be diligently contesting the same in good faith and by an appropriate proceeding and there is no danger of a loss or
forfeiture of any of the Collateral and provided 
  

 53 

 further that, if such disputed Charges are potentially or actually in excess of $10,000 in the aggregate, such Borrower
shall give Agent and each Lender such additional collateral and assurances as Agent and such Lender, in their sole discretion, deems necessary under the circumstances, immediately upon demand by Agent and such Lender. 
  
 7.5 Payment of Charges. Subject
to the provisions of Section 7.4, a Borrower shall pay promptly when due all of the Charges. In the event such Borrower, at any time or times, shall fail to pay the Charges or to promptly obtain the satisfaction of such Charges, such Borrower
shall promptly so notify Agent and each Lender and Agent and such Lender may, without waiving or releasing any obligation or liability of such Borrower under this Agreement or any Event of Default, in its sole discretion, at any subsequent time or
times, make such payment or any part thereof (but shall not be obligated so to do), or obtain such satisfaction and take any other action which Agent or such Lender deems advisable. All sums so paid by Agent or any Lender and any expenses, including
reasonable attorneys’ fees, court costs, expenses and other related charges, shall be payable by such Borrower to Agent or such Lender upon demand and shall be additional Liabilities. 
  
 7.6 Insurance; Payment of
Premiums. All policies of insurance on the Collateral or otherwise required under this Agreement shall be in form and amount satisfactory to Agent and with insurers reasonably recognized as adequate by Agent. Borrowers shall deliver to Agent
the original (or a certified copy) of each policy of insurance, or, in lieu thereof, certificates of such policies of insurance satisfactory to Agent, and evidence of payment of all premiums therefor and shall deliver renewals of all such policies
to Agent at least thirty (30) days prior to their expiration dates. Such policies of insurance shall contain an endorsement, in form and substance acceptable to Agent, showing all losses payable to Agent for the benefit of each Lender. Such
endorsement shall provide that the insurance companies will give Agent at least thirty (30) days’ prior written notice before any such policy shall be altered or canceled and that no act or default of Borrowers or any other Person shall
affect the right of Agent to recover under such policy in case of loss or damage. Each Borrower hereby directs all insurers under such policies to pay all proceeds directly to Agent after the occurrence of an Event of Default. Each Borrower
irrevocably makes, constitutes and appoints Agent (and all officers, employees or agents designated by Agent) as such Borrower’s true and lawful attorney and agent-in-fact for the purpose of making, settling and adjusting claims under such
policies (provided that Agent shall consult with such Borrower prior to finally making, settling or adjusting claims under such policies), endorsing the name of such Borrower in writing or by stamp on any check, draft, instrument or other item of
payment for the proceeds of such policies and for making all determinations and decisions with respect to such policies. If such Borrower shall fail to obtain or maintain any of the policies required by this Section 7.6 or to pay any premium
relating thereto, then Agent or any Lender, without waiving or releasing any obligation or Event of Default by such Borrower hereunder, may (but shall be under no obligation to do so) obtain and maintain such policies of insurance and pay such
premiums and take any other action which Agent or such Lender deems advisable. All sums so disbursed by Agent or any Lender, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable by
Borrowers to Agent or such Lender upon demand and shall be additional Liabilities. 
  

 54 

 7.7 Survival of Obligations Upon Termination of Agreement.
Except as otherwise expressly provided for in this Agreement and in the Ancillary Agreements, no termination or cancellation (regardless of cause or procedure) of this Agreement or the Ancillary Agreements shall in any way affect or impair the
powers, obligations, duties, rights, and liabilities of Borrowers or Agent or any Lender in any way with respect to (i) any transaction or event occurring prior to such termination or cancellation, (ii) the Collateral or (iii) any of
the undertakings, agreements, covenants, warranties and representations of Borrowers or Agent or any Lender contained in this Agreement or the Ancillary Agreements. All such undertakings, agreements, covenants, warranties and representations shall
survive such termination or cancellation. 
  
 8. EVENTS OF DEFAULT; RIGHTS AND REMEDIES. 
  
 8.1 Event of Default. The occurrence of any one or more of the following events shall constitute an Event of
Default under this Agreement: 
  
 (A)
(i) Borrowers fail to pay, within five (5) days after the same shall be due and payable or be declared due and payable, any part of the Liabilities or (ii) a Borrower is in default in the payment of Indebtedness in the aggregate in
excess of $2,500,000 beyond any applicable cure period or (iii) any Subsidiary is in default on its Indebtedness in the aggregate in excess of $2,500,000 beyond any applicable cure period; or 
  
 (B) Borrowers or any guarantor of the Liabilities fails or
neglects to perform, keep or observe (i) any term, provision, condition or covenant contained in Sections 7.1, 7.2 or 7.3 of this Agreement and such failure continues unremedied for a period of ten (10) days or (ii) any other term,
provision, condition or covenant contained in this Agreement or in the Ancillary Agreements, which is required to be performed, kept or observed by a Borrower or guarantor, and such failure continues unremedied for a period of ten (10) days.
Notwithstanding the foregoing, the applicable cure period for the Events of Defaults set forth in this Section 8.1(B) shall be ninety (90) days provided that (a) Borrowers have deposited Cash or Cash Equivalents in the Cash Collateral
Account in an amount equal to the outstanding principal amount of the Loans as of the date of such deposit within ten (10) days of the initial occurrence of such Event of Default and (b) Borrowers maintain a balance in the Cash Collateral
Account of not less than the outstanding principal amount of the Loans until such Event of Default has been cured; or 
  
 (C) The occurrence of any default (subject to any applicable cure periods) under (i) any of the Ancillary Agreements or (ii) any
document evidencing or securing any Subordinated Debt with a principal amount in excess of $2,500,000; or 
  
 (D) Any statement, warranty, representation, report, financial statement or certificate made or delivered by a Borrower, any of its
officers, employees or agents, to Agent or any Lender is not true and correct in any material respect on the date it was made or delivered or deemed re-made; or 
  

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 (E) There shall occur any material uninsured damage to or loss, theft or destruction of
any of the Collateral in excess of $2,500,000; or 
  
 (F) The Collateral or any of Borrowers’ other assets or any assets of any domestic Subsidiary are attached, seized, levied upon or subjected to a writ or distress warrant, or come within the possession of any receiver, trustee,
custodian or assignee for the benefit of creditors and the same is not cured within ten (10) days; or an application is made by any Person for the appointment of a receiver, trustee, or custodian for any of the Collateral or any of
Borrowers’ other assets or any assets of any domestic Subsidiary and the same is not dismissed within sixty (60) days after such application; or 
  
 (G) An application is made by a Borrower for the appointment of a receiver, trustee or custodian for any of the Collateral or any of such
Borrower’s other assets; or an application is made by any domestic Subsidiary or any guarantor of the Liabilities, for the appointment of a receiver, trustee or custodian for any of such domestic Subsidiary’s or such guarantor’s
assets; or any case or proceeding is filed by or against a Borrower, any domestic Subsidiary or any such guarantor for its dissolution, liquidation, or termination; or a Borrower ceases to conduct its business as now conducted or is enjoined,
restrained or in any way prevented by court order from conducting all or any material part of its business affairs; or 
  
 (H) A notice of Lien, levy or assessment is filed of record with respect to all or any substantial portion of a Borrower’s assets or
any domestic Subsidiary’s assets by the United States, or any department, agency or instrumentality, or by any state, county, municipal or other governmental agency including, without limitation, the Pension Benefit Guaranty Corporation, or any
taxes or debts owing to any of the foregoing becomes a Lien or encumbrance upon the Collateral or any of a Borrower’s other assets or upon any domestic Subsidiary’s assets and such Lien or encumbrance is not released within sixty
(60) days after its creation; or 
  
 (I)
Judgment(s) is or are rendered against a Borrower or any domestic Subsidiary in the aggregate in excess of $2,500,000 and such Person fails to either discharge the judgment or commence appropriate proceedings to appeal such judgment(s) within the
applicable appeal period or, after such appeal is filed, such Person fails to diligently prosecute such appeal or such appeal is denied; or 
  
 (J) A petition under any section or chapter of the United States Bankruptcy Code or any similar law or regulation is filed by or against a
Borrower, any domestic Subsidiary or any guarantor of the Liabilities, and, if filed against a Borrower, any domestic Subsidiary or any such guarantor, is not dismissed within sixty (60) days after filing; or a Borrower, any domestic Subsidiary
or any such guarantor makes an assignment for the benefit of its creditors; or a Borrower or any domestic Subsidiary becomes insolvent, fails generally to pay its debts as they become due or admits its inability to pay its debts as they become due;
or 
  

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 (K) If any Borrower adopts a profit sharing or pension plan governed by ERISA, and such
Borrower fails within fifteen (15) days after the occurrence of any of the following events, to furnish Agent and each Lender with appropriate notice thereof: (i) the happening of a Reportable Event with respect to any profit sharing or
pension plan governed by ERISA (such notice shall contain the statement of the chief financial officer of a Borrower setting forth details as to such Reportable Event and the action which such Borrower proposes to take with respect thereto and a
copy of the notice of such Reportable Event to the Pension Benefit Guaranty Corporation), (ii) the termination of any such plan, (iii) the appointment of a trustee by an appropriate United States District Court to administer any such plan
or (iv) the institution of any proceedings by the Pension Benefit Guaranty Corporation to terminate any such plan or to appoint a trustee to administer any such plan; or 
  
 (L) If any Borrower adopts a profit sharing or pension plan governed by ERISA, and such Borrower fails to:
(i) notify Agent and each Lender promptly upon receipt by such Borrower of any notice of the institution of any proceeding or other actions which may result in the termination of any profit sharing or pension plan; or (ii) acquire and
maintain, when available, the contingent employer liability coverage insurance provided for under Section 4023 of ERISA in an amount satisfactory to the Required Lenders; or 
  
 (M) This Agreement or any Ancillary Agreement shall be repudiated or become unenforceable or incapable of
performance, in whole or in part; or 
  
 (N) Any
Person(s) presently not in control of a Borrower shall obtain control directly or indirectly of such Borrower. 
  
 8.2 Effect of Event of Default. If (a) any Event of Default described in Section 8.1(J) shall
occur, the Commitments (if they have not theretofore terminated) shall immediately terminate and all Notes shall become immediately due and payable, all without presentment, demand, protest or notice of any kind, or any action by Agent or any of the
Lenders; and (b) any other Event of Default shall occur (other than an Event of Default described in Section 8.1(J)), Agent may (and upon written request of the Required Lenders, shall) declare the Commitments (if they have not theretofore
terminated) to be terminated and all Notes to be due and payable, whereupon the Commitments (if they have not theretofore terminated) shall immediately terminate and all Notes shall become immediately due and payable, all without presentment,
demand, protest or notice of any kind. Agent shall promptly advise Borrowers and each Lender of any such declaration, but failure to do so shall not impair the effect of such declaration. 
  
 8.3 Remedies. Upon and after the occurrence of an Event of Default, Agent
shall have all of the following rights and remedies: 
  
 (A) All of the rights and remedies of a secured party under the Illinois Uniform Commercial Code or other applicable law, all of which rights and remedies shall be cumulative and non-exclusive, to the greatest extent permitted by law, and
in addition to any other rights and remedies contained in this Agreement and in any of the Ancillary Agreements; 
  

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 (B) The right to (i) peacefully enter upon the premises of each Borrower or any
other place or places where the Collateral is located and kept, without any obligation to pay rent to such Borrower or any other person, through self-help and without judicial process or first obtaining a final judgment or giving such Borrower
notice and opportunity for a hearing on the validity of Agent’s and each Lender’s claim, and remove the Collateral from such premises and places, for such time as Agent and each Lender may require to collect or liquidate the Collateral
and/or (ii) require each Borrower to assemble and deliver the Collateral to Agent at a place to be designated by Agent; 
  
 (C) The right to (i) open each Borrower’s mail and collect any and all amounts due from Account Debtors, (ii) notify
Account Debtors that the Accounts have been assigned to Agent and that Agent has a security interest therein and (iii) direct such Account Debtors to make all payments due from them upon the Accounts, including the Special Collateral, directly
to Agent or to a lock box designated by Agent. Agent shall promptly furnish each Borrower with a copy of any such notice sent and each Borrower hereby agrees that any such notice in Agent’s sole discretion, may be sent on Agent’s
stationery, in which event, each Borrower shall, upon demand, co-sign such notice with Agent; and 
  
 (D) The right to sell, lease or to otherwise dispose of all or any Collateral in its then condition, or after any further manufacturing or
processing thereof, at public or private sale or sales, with such notice as provided in Section 8.4, in lots or in bulk, for cash or on credit, all as Agent, in its sole discretion, may deem advisable. At any such sale or sales of the
Collateral, the Collateral need not be in view of those present and attending the sale, nor at the same location at which the sale is being conducted. Agent shall have the right to conduct such sales on each Borrower’s premises or elsewhere and
shall have the right to use each Borrower’s premises without charge by Borrowers or their Affiliates for such sales for such time or times as Agent may see fit, subject to the rights of any landlord to such premises. Agent is granted a license
or other right to use, without charge, each Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks and advertising matter, or any property of a similar nature, as it pertains to the Collateral,
in advertising for sale and selling any Collateral and each Borrower’s rights under all licenses and all franchise agreements shall inure to Agent’s benefit but Agent shall have no obligations thereunder. Agent may purchase all or any part
of the Collateral at public or, if permitted by law, private sale and, in lieu of actual payment of such purchase price, may setoff the amount of such price against the Liabilities. The proceeds realized from the sale of any Collateral shall be
applied as set forth in Section 8.7. If any deficiency shall arise, Borrowers shall remain liable to Agent and each Lender for the amount of such deficiency. 
  
 8.4 Notice. Each Borrower agrees that any notice required to be given by Agent
or any Lender of a sale, lease, other disposition of any of the Collateral or any other intended 
  

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 action by Agent or such Lender, which is personally delivered to such Borrower or which is deposited in the United States
mail, postage prepaid and duly addressed to such Borrower at the address set forth in Section 10.10, at least ten (10) days prior to any such public sale, lease or other disposition or other action being taken, or prior to the time after
which any private sale of the Collateral is to be held, shall constitute commercially reasonable and fair notice to such Borrower. 
  
 8.5 Default Interest Rate. To compensate Agent and each Lender for additional unreimbursed costs resulting
from the occurrence of an Event of Default, including without limitation, acts associated with the uncertainty of future funding and additional supervisory and administrative efforts, upon the occurrence of and during the continuance of an Event of
Default and after notice thereof is given to Borrowers at the direction of the Required Lenders, the Liabilities shall continue to bear interest, calculated daily on the basis of a 360-day year at the per annum rate set forth in Section 2.4
above, plus additional post-default interest of two percent (2%) per year until the Liabilities are paid in full. 
  
 8.6 Preservation of Rights. No delay or omission of Agent or any Lender to exercise any right under this
Agreement or any Ancillary Agreement shall impair such right or be construed to be a waiver of any Event of Default or an acquiescence therein, and the making of a Loan notwithstanding the existence of an Event of Default or the inability of
Borrowers to satisfy the conditions precedent to such Loan shall not constitute any waiver or acquiescence. Any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and
no waiver, amendment or other variation of the terms, conditions or provisions of this Agreement or any Ancillary Agreement whatsoever shall be valid unless in writing signed by the Required Lenders, and then only to the extent in such writing
specifically set forth. All remedies contained in this Agreement or any Ancillary Agreement or by law afforded shall be cumulative and all shall be available to Agent and Lenders until the Liabilities have been paid in full. 
  
 8.7 Distributions. Agent shall
distribute all proceeds and other amounts received by it with respect to Collateral: 
  
 First, to the payment of any amounts owed to it under Section 10.3 or under any Ancillary Agreement executed pursuant hereto
and any expenses incurred by Agent in connection with the maintenance, preservation or protection of any Collateral; 
  
 Second, to all Lenders pro rata according to the then outstanding amount of Liabilities held by each such Lender; and 

 
 Third, if any balance remains after the
Liabilities have been paid in full, to Borrowers. 
  
 Each Lender shall apply any payment so received from Agent, 
  
 First, to unpaid accrued interest, if any, on its Liabilities until paid in full; 
  

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 Second, to the unpaid premium, if any, on its Liabilities; 
  
 Third, to the unpaid principal of its Liabilities
until paid in full; and 
  
 Fourth, to its
other Liabilities; 
  
 provided that any Lender which receives any
payment on account of the Borrowers’ contingent obligations under a Letter of Credit shall hold such payment as cash collateral for such contingent obligation (and shall have no obligation to pay interest thereon), and, following any reduction
of the stated amount of such Letter of Credit or termination thereof, shall return to Agent for distribution pursuant to this Section 8.7 any amounts in excess of the Borrowers’ contingent obligations not used to reimburse such Lender.

  
 8.8 Method of
Adjustment. If any Lender shall obtain any payment with respect to its Liabilities in excess of its (or their) pro rata share pursuant to Section 8.7, it shall be deemed to have received such excess on behalf of all Lenders and shall
promptly deliver such excess to Agent for distribution in accordance with Section 8.7. If for any reason payments to Agent in the preceding sentence shall be determined by Agent to be improper or not advisable, then such Lender shall purchase
from each Lender receiving less than its pro rata share, such participation in its Liabilities as shall be necessary for such purchasing Lender to share the excess payment received pro rata with such other Lenders; provided that if all or any
portion of such excess payment be thereafter recovered from such purchasing Lender, the purchase shall be rescinded to the extent of such recovery, but without interest or premium; and, provided further that the nonperformance by any Lender of its
obligation under this Section 8.8 shall not excuse any other Lender hereunder. 
  
 9. AGENT. 
  
 9.1 Appointment and Authorization. Each Lender hereby irrevocably (subject to Section 9.9) appoints, designates and authorizes Agent to take such action on its behalf
under the provisions of this Agreement and each other Ancillary Agreement and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Ancillary Agreement, together with such powers
as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Ancillary Agreement, Agent shall not have any duties or responsibilities except those expressly set forth
herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Ancillary
Agreement or otherwise exist against Agent. 
  

 9.2 Delegation of Duties. Agent may execute any of its duties under this Agreement or any
other Ancillary Agreement by or through its agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall not be responsible for the negligence or misconduct of any
agent or attorney-in-fact that it selects with reasonable care. 
  

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 9.3 Liability of Agent. No Agent-Related Persons shall
(i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Ancillary Agreement or the transactions contemplated hereby (except for its own gross negligence or willful
misconduct) or (ii) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by Borrowers or any Affiliate of Borrowers, or any officer thereof, contained in this Agreement or in any other
Ancillary Agreement, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Ancillary Agreement, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Ancillary Agreement, or for any failure of the Borrowers or any other party to any Ancillary Agreement to perform its obligations hereunder or thereunder. No Agent-Related
Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Ancillary Agreement, or to inspect the properties,
books or records of Borrowers or any of Borrowers’ Subsidiaries or Affiliates. 
  
 9.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to Borrowers), independent accountants and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Ancillary Agreement unless it
shall first receive such advice or concurrence of the Required Lenders and, if it so requests, confirmation from Lenders of their obligation to indemnify Agent against any and all liability and expense which may be incurred by it by reason of taking
or continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Ancillary Agreement in accordance with a request or consent of the Required Lenders (unless
the consent of all Lenders is required in such case, in which case unanimous consent of Lenders) and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. For purposes of determining
compliance with the conditions specified in Section 2.11 or in any comparable provision of any amendment hereto, each Lender that has executed this Agreement or such amendment shall be deemed to have consented to, approved or accepted, or to be
satisfied with, each document or other matter either sent by an Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to the Lender. 

 
 9.5 Notice of Default. Agent
shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to Agent for the account of Lenders, unless
Agent shall have received written notice from a Lender or Borrowers referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. Agent will notify Lenders of its receipt of
any such notice. Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 8; provided that unless and until Agent has received any 
  

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 such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable or in the best interest of Lenders. 
  
 9.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any
representation or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrowers and their Subsidiaries, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any
Lender. Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of Borrowers and their Subsidiaries, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to
enter into this Agreement and to extend credit to Borrowers hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the Ancillary Agreements, and to make such investigations as it deems necessary to inform itself as
to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrowers. Except for notices, reports and other documents expressly herein required to be furnished to Lenders by Agent, Agent shall not have
any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of Borrowers which may come into the possession of any
of the Agent-Related Persons. 
  
 9.7 Indemnification. Lenders shall indemnify upon demand any Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrowers and without limiting the obligation of Borrowers to
do so), pro rata, from and against any and all Indemnified Liabilities; provided that no Lender shall be liable for the payment to Agent or any Agent-Related Persons of any portion of such Indemnified Liabilities resulting solely from such
Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including reasonable fees of attorneys for Agent)
incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Ancillary Agreement, or any document contemplated by or referred to herein, to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrowers. To the extent that Agent or any
Agent-Related Person shall thereafter be reimbursed by or on behalf of Borrowers for any amount paid by the Banks pursuant to this Section 9.7, such Person shall reimburse each Lender for its ratable share of any such amount. The undertaking in
this Section 9.7 shall survive the expiration or termination of the Commitments and payment of the Loans and other liabilities of Borrowers hereunder and the resignation or replacement of Agent. For the purposes of this Section 9.7,
“Indemnified Liabilities” shall mean: any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including 
  

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 reasonable fees of attorneys for Agent) of any kind or nature whatsoever which may at any time (including at any time
following repayment of the Loans and the termination, resignation or replacement of Agent or replacement of any Lender) be imposed on, incurred by or asserted against any such Agent Related Person in any way relating to or arising out of this
Agreement or any document contemplated by or referred to herein, or the transactions contemplated hereby, or any action taken or omitted by any such Agent Related Person under or in connection with any of the foregoing, including with respect to any
investigation, litigation or proceeding (including (i) any case, action or proceeding before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or
relief of debtors or (ii) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors;
undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code or appellate proceeding) related to or arising out of this Agreement or the Loans or the use of the proceeds thereof, whether or not any Agent-Related Person, any
Lender or any of their respective officers, directors, employees, counsel, agents or attorneys-in-fact is a party thereto. 
  
 9.8 Agent in Individual Capacity. LaSalle and its Affiliates may make loans to, issue Letters of Credit for
the account of, accept deposits from and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with Borrowers and their Subsidiaries and Affiliates as though it were not Agent hereunder and without notice
to or consent of Lenders. Lenders acknowledge that, pursuant to such activities, Agent or its Affiliates may receive information regarding Borrowers or their Affiliates (including information that may be subject to confidentiality obligations in
favor of Borrowers or such Subsidiaries) and acknowledge that Agent shall be under no obligation to provide such information to them. With respect to their Loans, Agent and its Affiliates shall have the same rights and powers under this Agreement as
any other Lender and may exercise the same as though such Agent were not an Agent, and the terms Lender and Lenders include Agent and its Affiliates, to the extent applicable, in their individual capacities. 
  
 9.9 Successor Agent. Agent may
resign as the Agent upon 30 days’ notice to Lenders. If Agent resigns under this Agreement, the Required Lenders shall, with the prior written consent of Borrowers, appoint from among Lenders a successor agent for Lenders. If no successor agent
is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with Lenders and with the prior written consent of Borrowers, a successor agent from among Lenders. Upon the acceptance of its appointment as
successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term Agent shall mean such successor agent and the retiring Agent’s appointment, powers and duties as an Agent
shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement. If
no successor agent has accepted appointment as an Agent by the date which is 30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and Lenders shall
perform all of the duties of an Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. 
  

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 10. MISCELLANEOUS. 
  
 10.1 Appointment of Agent as Each
Borrower’s Lawful Attorney-In-Fact. Each Borrower irrevocably designates, makes, constitutes and appoints Agent (and all persons designated by Agent) as such Borrower’s true and lawful attorney and agent-in-fact and Agent, or
Agent’s agent, may, without notice to such Borrower: 
  
 (A) At any time after the occurrence of and during the continuance of an Event of Default, endorse by writing or stamp each Borrower’s name on any checks, notes, drafts or any other payment relating to and/or
proceeds of the Collateral which come into the possession of Agent or under Agent’s control and deposit the same to the account of Agent for application to the Liabilities; 
  
 (B) At any time after the occurrence of and during the continuance of an Event of Default, in each
Borrower’s or Agent’s name: (i) demand payment of the Collateral; (ii) enforce payment of the Collateral, by legal proceedings or otherwise; (iii) exercise all of each Borrower’s rights and remedies with respect to the
collection of the Collateral; (iv) settle, adjust, compromise, extend or renew the Accounts and the Special Collateral; (v) settle, adjust or compromise any legal proceedings brought to collect the Collateral; (vi) if permitted by
applicable law, sell or assign the Collateral upon such terms, for such amounts and at such time or times as Agent deems advisable; (vii) satisfy and release the Accounts and Special Collateral; (viii) take control, in any manner, of any
item of payment or proceeds referred to in Section 3.3; (ix) prepare, file and sign each Borrower’s name on any proof of claim in bankruptcy or similar document against any Account Debtor; (x) prepare, file and sign each
Borrower’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection with the Collateral; (xi) do all acts and things necessary, in Agent’s sole discretion, to fulfill each Borrower’s
obligations under this Agreement; (xii) endorse by writing or stamp the name of each Borrower upon any chattel paper, document, instrument, invoice, freight bill, bill of lading or similar document or agreement relating to the Collateral; and
(xiii) use the information recorded on or contained in any data processing equipment and computer hardware and software relating to the Collateral to which each Borrower has access; and 
  
 (C) At any time after the occurrence of and during the
continuance of an Event of Default, notify the post office authorities to change the address for delivery of Borrower’s mail to an address designated by Agent and receive, open and dispose of all mail addressed to each Borrower. 
  
 10.2 Modification of Agreement; Sale of
Notes; Participations. No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or the Notes shall in any event be effective unless the same shall be in writing and signed and delivered by Lenders
having an aggregate Percentage of not less than the aggregate Percentage expressly designated herein with respect thereto or, in the absence of such designation as to any provision of this Agreement or the Notes, by the Required Lenders, and then
any such amendment, modification, waiver or consent shall be effective only in the specific instance and 
  

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 for the specific purpose for which given. No amendment, modification, waiver or consent shall extend or increase the
amount of the Commitments, extend the final maturity of the Notes, reduce the principal thereof (other than pursuant to Section 2.1), reduce the fees hereunder or the rate of interest payable with respect to the Notes, reduce the aggregate
Percentage required to effect an amendment, modification, waiver or consent, reduce the amount of or extend the date for the mandatory payments on the Notes, modify the definition of Borrowing Base, amend this Section 10.2 or permit any
assignment by Borrowers of their obligations or rights hereunder or amend any covenants contained in Sections 7.1, 7.2 or 7.3, without the consent of the Required Lenders in each instance. No provision of this Agreement relating to Agent shall be
amended, modified or waived without the consent of Agent. No provision of Section 2.13 shall be amended, modified or waived without the consent of the Issuing Lender. No Borrower may sell, assign, transfer or otherwise dispose of all or any
portion of this Agreement or the Ancillary Agreements, including, without limitation, such Borrower’s right, title, interest, remedies, powers, or duties. Each Borrower consents to any Lender’s participation, sale, assignment, transfer or
other disposition, at any time or times, of this Agreement or the Ancillary Agreements, including, without limitation, such Lender’s right, title, interest, remedies, powers, or duties. Each Borrower consents to any Lender’s pledge of its
rights under this Agreement, any Note issued hereunder or any Ancillary Agreement to the Federal Reserve Bank. Any Lender shall have the right to sell, assign or transfer all or part of any Note to one or more banks or other financial institutions,
or to grant participations to one or more banks or other financial institutions, in or to any Loan hereunder and any Note held by such Lender upon three (3) days prior written notice to Borrowers (and if no Default or Event of Default has
occurred and is continuing with the prior written consent of Borrowers) and Agent together with, in the case of assignments only, execution and delivery to Agent and the Borrowers of an Assignment Agreement in the form acceptable to Agent in its
reasonable discretion (“Assignment Agreement”) and payment of a $5,000 fee to Agent for processing such assignment. Borrowers hereby consent to the disclosure of any information obtained by Agent or any Lender in connection herewith
to any bank or other financial institution to which any Lender now or hereafter has sold, assigned or transferred, or sold or proposed to sell, assign or transfer, all or any part of any Note or any participation interest in any Loan or Note. Upon
the sale, transfer or assignment of all or a portion of any Note pursuant to one or more Assignment Agreements, Borrowers shall, upon the request of the assigning Lender, execute a new note or notes in a form substantially similar to the Note or
Notes so replaced. Each such transferee shall be deemed to be a Lender under this Agreement. Each transferee of any Note shall take such Note subject to the provisions of this Agreement and to any request made, waiver or consent given or other
action taken hereunder prior to the receipt by Agent and Borrowers of written notice of such transfer. Each Lender represents that it is the present intention of such Lender to acquire each Note drawn to its order for its own account and not with a
view to the distribution or sale thereof, subject, nevertheless, to the necessity that such Lender remain in control at all times of the disposition of property held by it for its own account; it being understood that the foregoing representation
shall not affect the character of the Loans as commercial lending transactions. 
  
 10.3 Attorneys’ Fees and Expenses; Agent and Each Lender’s Out-of-Pocket Expenses. If, at any time or times, whether prior or subsequent to the date of this
Agreement and regardless of the existence of a Default or an Event of Default, Agent and each Lender incurs reasonable legal or other costs and expenses or employs counsel, accountants or other professionals for advice or other representation or
services in connection with: 
  

 65 

 (A) The preparation, negotiation and execution of this Agreement, all Ancillary
Agreements, any amendment of or modification of this Agreement or the Ancillary Agreements; 
  
 (B) Any litigation, contest, dispute, suit, proceeding or action (whether instituted by Agent, any Lender, a Borrower or any other Person)
in any way relating to the Collateral, this Agreement, the Ancillary Agreements or Borrowers’ affairs; 
  
 (C) Any attempt to enforce any rights of Agent or any Lender against a Borrower or any other Person which may be obligated to Agent or
such Lender by virtue of this Agreement or the Ancillary Agreements, including, without limitation, the Account Debtors; 
  
 (D) Any attempt to inspect, verify, protect, collect, sell, liquidate or otherwise dispose of any of the Collateral; or 
  
 (E) Any inspection, verification, protection, collection,
sale, liquidation or other disposition of any of the Collateral, including without limitation, Agent’s periodic field audits and audits of a Borrower’s books and records; 
  
 then, in any such event, the reasonable attorneys’ and paralegals’ fees and expenses arising from such services
and all reasonably incurred expenses, costs, charges and other fees of or paid by Agent (or any Lender after the occurrence of and during the continuation of an Event of Default) in any way or respect arising in connection with or relating to any of
the events or actions described in this Section 10.3 shall be payable by Borrowers, jointly and severally, to Agent (or any Lender after the occurrence of and during the continuation of an Event of Default) upon demand and shall be additional
Liabilities. Without limiting the generality of the foregoing, such expenses, costs, charges and fees may include accountants’ fees, costs and expenses; court costs, fees and expenses; photocopying and duplicating expenses; court reporter fees,
costs and expenses; long distance telephone charges; courier charges; telegram and telecopy charges. 
  
 10.4 No Setoff; Right to Charge Accounts. All payments due to Agent or any Lender shall be made in
immediately available funds, without setoff or counterclaim. At Agent’s or any Lender’s sole discretion, Agent or such Lender may charge against any demand account of a Borrower all or any part of the Liabilities which are due and payable.

  
 10.5
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  

 66 

 10.6 Parties; Entire Agreement. This Agreement and the
Ancillary Agreements shall be binding upon and inure to the benefit of the respective successors and assigns of each Borrower, Agent and each Lender. Each Borrower’s successors and assigns shall include, without limitation, a trustee, receiver
or debtor-in-possession of or for such Borrower. Nothing contained in this Section 10.6 shall be deemed to modify Section 10.2. This Agreement is the complete statement of the agreement by and among Borrowers, Agent and each Lender and
supersedes all prior negotiations, understandings and representations between them with respect to the subject matter of this Agreement. 
  
 10.7 Conflict of Terms. The provisions of the Ancillary Agreements are incorporated in this Agreement by
this reference. Except as otherwise provided in this Agreement and except as otherwise provided in the Ancillary Agreement, by specific reference to the applicable provision of this Agreement, if any provision contained in this Agreement is in
conflict with, or inconsistent with, any provision in any Ancillary Agreement, the provision contained in this Agreement shall govern and control. 
  
 10.8 Waiver by Borrowers. Except as otherwise provided for in this Agreement, each Borrower waives
(i) presentment, demand and protest, notice of protest, notice of presentment, default, non-payment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract rights, documents,
instruments, chattel paper and guaranties at any time held by Agent or any Lender on which such Borrower may in any way be liable and hereby ratifies and confirms whatever Agent or such Lender may do in this regard; (ii) all rights to notice
and a hearing prior to Agent’s or any Lender’s taking possession or control of, or Agent’s or any Lender’s replevy, attachment or levy upon the Collateral or any bond or security which might be required by any court prior to
allowing Agent or any Lender to exercise any of Agent’s or any Lender’s remedies; and (iii) the benefit of all valuation, appraisement, extension and exemption laws. Each Borrower acknowledges that it has been advised by its own
counsel with respect to this Agreement and the transactions evidenced by this Agreement. 
  
 10.9 Waiver and Governing Law. THE LOANS EVIDENCED HEREBY HAVE BEEN MADE, AND THIS AGREEMENT HAS BEEN DELIVERED, AT CHICAGO, ILLINOIS, AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS. EACH BORROWER (i) WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR
RELATED TO THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS; (ii) IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN COOK COUNTY, ILLINOIS, OVER ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY MATTER ARISING
FROM OR RELATED TO THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS; (iii) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT SUCH BORROWER MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING;
(iv) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE 
  

 67 

 CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW; AND (v) AGREES NOT TO INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST AGENT, ANY LENDER OR ANY OF AGENT’S OR LENDER’S DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR PROPERTY, CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS IN ANY COURT OTHER THAN ONE LOCATED IN COOK COUNTY, ILLINOIS. EACH BORROWER WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER PROCESS OR PAPERS ISSUED IN ANY ACTION OR PROCEEDING TO ENFORCE
OR DEFEND ANY MATTER ARISING FROM OR RELATED TO THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT, OR OTHER PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH
BORROWER AT THE ADDRESS SET FORTH IN SECTION 10.10. SHOULD SUCH BORROWER FAIL TO APPEAR OR ANSWER ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SERVED WITHIN THIRTY (30) DAYS AFTER THE RECEIPT THEREOF, IT SHALL BE DEEMED IN DEFAULT AND AN ORDER
AND/OR JUDGMENT MAY BE ENTERED AGAINST IT AS DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS. NOTHING IN THIS PARAGRAPH SHALL AFFECT OR IMPAIR LENDER’S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR
LENDER’S RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST SUCH BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 10.10 Notice. Except as otherwise provided in this Agreement, any notice required shall be in writing and
shall be deemed to have been validly served, given or delivered upon (i) delivery in person, by messenger or overnight courier service, (ii) the day after transmission by facsimile, (iii) or five (5) Business Days after deposit
in the United States certified or registered mails, with proper postage prepaid, addressed to the party to be notified as follows: 
  
 (a) If to Agent, at: 
  
 LaSalle Bank National Association 
 135 South LaSalle 
 Chicago, Illinois 60603 
 Attention: David Bacon 
 Fax: (312) 904-0409 
  
 with a copy to: 
  
 Ungaretti & Harris LLP 
 3500 Three First National Plaza 
 Chicago, Illinois 60602 
 Attention: Gary I. Levenstein 
 Fax: (312) 977-4405 
  

 68 

 (b) If to Borrowers, at: 
  
 ModusLink Corporation 
 SalesLink LLC 
 SalesLink Mexico Holding Corp. 
 c/o ModusLink Corporation 
 1100 Winter Street, Suite 4600 
 Waltham, Massachusetts 02451 
 Attention: Chief Financial Officer 
 Fax: (617) 886-4550 
  
 with a copy to: 
  
 BRL Law Group LLC 
 31 St. James Avenue 
 Boston, Massachusetts 02116 
 Attention: Thomas B. Rosedale 
 Fax: (617) 399-6930 
  
 (c) If to any Lender, addressed to such Lender at the address shown below its signature as its domestic office addressor to such other address or facsimile number as each party may designate for itself by like notice.

  
 10.11 Section Titles,
Etc. The section titles and table of contents, if any, contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. All Exhibits
and Schedules which are referred to herein or attached hereto are incorporated by reference. 
  
 10.12 Mutilated, Destroyed, Lost and Stolen Notes. If any mutilated Note is surrendered to the Borrowers, the Borrowers shall execute therefor a new Note with the same
principal amount, containing identical terms and provisions. If there shall be delivered to the Borrowers (a) evidence to its satisfaction of the destruction, loss or theft of any Note and (b) such security or indemnity as may be required
by them to hold the Borrowers and any agent of the Borrowers harmless, then, in the absence of notice to the Borrowers that such Note has been acquired by a bona fide purchaser, the Borrowers shall execute and deliver, in lieu of any such destroyed,
lost or stolen Note or in exchange for such Note, a new Note with the same principal amount, containing identical terms and provisions. Upon the issuance of any new Note under this Section 10.12, the Borrowers may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. Every new Note, issued pursuant to this Section 10.12 in lieu of any destroyed, lost or stolen Note,
shall constitute an original contractual obligation of the Borrowers, whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement. 
  

 69 

 10.13 Customer Identification—USA Patriot Act Notice.
Each Lender and LaSalle (for itself and not on behalf of any other party) hereby notifies the Borrowers that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the
“Patriot 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 LaSalle, as
applicable, to identify each Borrower in accordance with the Patriot Act. 
  

 11. CROSS-GUARANTY. 
  

11.1 Cross-Guaranty. Each Borrower hereby agrees that such Borrower is jointly and severally liable for,
and hereby absolutely and unconditionally guarantees to Agent and each Lender and their respective successors and assigns, the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and performance of, all Liabilities
owed or hereafter owing to Agent and each Lender by each other Borrower. Each Borrower agrees that its guaranty obligation hereunder is a continuing guaranty of payment and performance and not of collection, that its obligations under this
Section 11 shall not be discharged until payment and performance, in full, of the Liabilities has occurred, and that its obligations under this Section 11 shall be absolute and unconditional, irrespective of, and unaffected by, the
genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other Ancillary Agreement or any other agreement, document or instrument to which any Borrower is or may become a party; the absence of
any action to enforce this Agreement (including this Section 11) or any other Ancillary Agreement or the waiver or consent by Agent and each Lender with respect to any of the provisions thereof; the existence, value or condition of, or failure
to perfect its Lien against, any security for the Liabilities or any action, or the absence of any action, by Agent and each Lender in respect thereof (including the release of any such security); the insolvency of any Borrower; or any other action
or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor. Each Borrower shall be regarded, and shall be in the same position, as principal debtor with respect to the Liabilities guaranteed
hereunder. 
  
 11.2 Waivers
by Borrowers. Each Borrower expressly waives all rights it may have now or in the future under any statute, or at common law, or at law or in equity, or otherwise, to compel Agent or any Lender to marshal assets or to proceed in respect of
the Liabilities guaranteed hereunder, against any other party or against any security for the payment and performance of the Liabilities before proceeding against, or as a condition to proceeding against, such Borrower. It is agreed among each
Borrower, Agent and each Lender that the foregoing waivers are of the essence of the transaction contemplated by this Agreement and the Ancillary Agreements and that, but for the provisions of this Section 11.2 and such waivers, Agent and
Lenders would decline to enter into this Agreement. 
  

 11.3 Benefit of Guaranty. Each Borrower agrees that the provisions of this Section 11.3
are for the benefit of Agent and each Lender and their respective successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other Borrower and Agent or any Lender, the obligations of such other
Borrower under this Agreement and the Ancillary Agreements. 
  

 70 

 11.4 Subordination of Subrogation, Etc. Notwithstanding
anything to the contrary in this Agreement or in any Ancillary Agreement, and except as set forth in Section 11.7, each Borrower hereby expressly and irrevocably subordinates to payment of the Liabilities any and all rights at law or in equity
to subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all defenses available to a surety, guarantor or accommodation co-obligor until the Liabilities are indefeasibly paid in full in cash. Each Borrower
acknowledges and agrees that this subordination is intended to benefit Agent and each Lender and shall not limit or otherwise affect such Borrower’s liability hereunder or the enforceability of this Section 11, and that Agent, each Lender
and their respective successors and assigns are intended third party beneficiaries of the waivers and agreements set forth in this Section 11.4. 
  
 11.5 Election of Remedies. If Agent or any Bank may, under applicable law, proceed to realize its benefits
under this Agreement or any Ancillary Agreement giving Agent or such Lender a Lien upon any Collateral, whether owned by any Borrower or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement, Agent or any Lender
may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of its rights and remedies under this Section 11. If, in the exercise of any of its rights and remedies, Agent or any Lender shall forfeit
any of its rights or remedies, including its right to enter a deficiency judgment against any Borrower or any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, each Borrower hereby
consents to such action by Agent or such Lender and waives any claim based upon such action, even if such action by Agent or such Lender shall result in a full or partial loss of any rights of subrogation that each Borrower might otherwise have had
but for such action by Agent or such Lender. Any election of remedies that results in the denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s
obligation to pay the full amount of the Liabilities. In the event Agent or any Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or this Agreement or any Ancillary Agreements, Agent or such Lender
may bid all or less than the amount of the Liabilities and the amount of such bid need not be paid by Agent or such Lender but shall be credited against the Liabilities. The amount of the successful bid at any such sale, whether Agent, such Lender
or any other party is the successful bidder, shall be conclusively deemed to be the fair market value of the Collateral and the difference between such bid amount and the remaining balance of the Liabilities shall be conclusively deemed to be the
amount of the Liabilities guaranteed under this Section 11, notwithstanding that any present or future law or court decision or ruling may have the effect of reducing the amount of any deficiency claim to which Agent or any Lender might
otherwise be entitled but for such bidding at any such sale. 
  

 11.6 Limitation. Notwithstanding any provision herein contained to the contrary, each
Borrower’s liability under this Section 11 (which liability is in any event in addition to amounts for which such Borrower is primarily liable under Section 2) shall be limited to an amount not to exceed as of any date of
determination the greater of: (i) the net amount of all Loans advanced to any other Borrower under this Agreement and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower; and (ii) the amount that could be
claimed by Agent and Lenders from such Borrower under this Section 11 without rendering such claim 
  

 71 

 voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform
Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among other things, such Borrower’s right of contribution and indemnification from each other Borrower under
Section 11.7. 
  
 11.7
Contribution with Respect to Guaranty Obligations. To the extent that any Borrower shall make a payment under this Section 11 of all or any of the Liabilities (other than Loans made directly to that Borrower) (a “Guarantor
Payment”) that exceeds the amount such Borrower would otherwise have paid if each Borrower had paid the aggregate Liabilities satisfied by such Guarantor Payment in the same proportion that such Borrower’s “Allocable Amount”
(as defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible
payment in full in cash of the Liabilities and termination of the Commitments) such Borrower shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the amount of such excess, pro
rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment. As of any date of determination, the “Allocable Amount” of any Borrower shall be equal to the maximum amount of the claim that
could then be recovered from such Borrower under this Section 11 without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law. This Section 11.7 is intended only to define the relative rights of Borrowers and nothing set forth in this Section 11.7 is intended to or shall impair the obligations of
Borrowers, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Agreement, including this Section 11.7. Nothing contained in this Section 11.7 shall limit the
liability of any Borrower to pay the Loans made directly or indirectly to that Borrower and accrued interest, fees and expenses with respect thereto for which such Borrower shall be primarily liable. The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of the Borrower to which such contribution and indemnification is owing. The rights of the indemnifying Borrowers against other Borrower under this Section 11.7 shall be
exercisable upon the full and indefeasible payment of the Liabilities and the termination of the Commitments. 
  
 11.8 Liability Cumulative. The liability of Borrowers under this Section 11 is in addition to and
shall be cumulative with all liabilities of each Borrower to Agent and each Lender under this Agreement and the Ancillary Agreements to which such Borrower is a party or in respect of any Liabilities or obligation of the other Borrowers, without any
limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary. 
  
 [signature page attached] 
  

 72 

 IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first written above.

  
 BORROWERS: 
  

							
	MODUSLINK CORPORATION
a Delaware corporation	 	 	 	 SALESLINK LLC
 a Delaware limited liability company

			
	By: /s/ Thomas Oberdorf	 	 	 	By: /s/ Thomas Oberdorf
	Name:	 	Thomas Oberdorf	 	 	 	Name: Thomas Oberdorf
	Title:	 	Chief Financial Officer and Treasurer	 	 	 	Title: Chief Financial Officer and Treasurer

  

			
	 SALESLINK MEXICO HOLDING CORP.
 a Delaware
corporation

	
	By: /s/ Thomas Oberdorf
	Name:	 	Thomas Oberdorf
	Title:	 	Treasurer

			
	LENDERS:
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 as a
Lender and as Agent

	
	By: /s/ David Bacon
	Name:	 	David Bacon
	Title:	 	Vice President
	
	 Address
 LaSalle Bank National Association
 135 South LaSalle
 Chicago, Illinois 60603
 Attention: David Bacon
 Fax: (312) 904-0409

	
	 CITIZENS BANK OF MASSACHUSETTS,
 as a Lender

	
	 By: /s/ Amy LeBlanc Hackett

	Name: Amy LeBlanc Hackett
	Title: VP
	
	 Address
 Citizens Bank of
Massachusetts
 53 State Street
 8th Floor
 Boston, Massachusetts 02109
 Attention: Amy LeBlanc Hackett
 Fax: (617) 742-9548

 Exhibit A (§1.1) 
  
 Form of Master Letter of Credit Agreement 

 MASTER LETTER OF CREDIT AGREEMENT 
 Dated as of December 31, 2004 
 THIS MASTER LETTER OF CREDIT AGREEMENT (this
“Agreement”) is issued by the undersigned applicant (the “Applicant”) in favor of LaSalle Bank National Association (together with its affiliates as set forth in Section 11.8, the
“Bank”). 
 The Applicant may from time to time request that the Bank issue letters of credit for the account of the Applicant. The
Applicant agrees that, except as provided below, any such letter of credit shall be subject to the terms and provisions of this Agreement, and the Applicant further agrees with and for the benefit of the Bank as follows: 
 SECTION 1 CERTAIN DEFINITIONS. When used herein the following terms shall have the following meanings (such definitions to be applicable to both the singular and plural
forms of such terms): 
 Application means, at any time, an application (which shall be in writing, including by facsimile, or made by electronic
transmission) for a letter of credit to be issued by the Bank, specifying (a) the requested issuance date, the amount, the beneficiary and the expiration date of such letter of credit, (b) the documentary requirements for drawing
thereunder and (c) such other information as the Bank may reasonably request. 
 Business Day means any day on which the Bank is open for
commercial banking business at its principal office in Chicago, Illinois. 
 Event of Default means any of the events
described in Section 9.1. 
 Item means any draft, order, instrument, demand or other document drawn or presented, or to be drawn or
presented, under any Letter of Credit. 
 ISP means at any time the most recent International Standby Practices issued by the Institute for
International Banking Law & Practice, Inc. 
 Letter of Credit means any letter of credit issued (including any letter of credit issued prior
to the date hereof) by the Bank for the account of the Applicant (including any letter of credit issued jointly for the account of the Applicant and any other Person), in each case as amended or otherwise modified from time to time, but
excluding any letter of credit that is issued pursuant to an Application which expressly provides that such letter of credit is not issued pursuant to this Agreement. A letter of credit issued by the Bank pursuant to an Application from the
Applicant (either individually or together with any other Person) shall be a Letter of Credit hereunder even if another Person is named as the “Applicant” or “Account Party” in such letter of credit. 
 Liabilities means all obligations of the Applicant to the Bank and its successors and assigns, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing or due or to become due, arising out of or in connection with this Agreement, any Letter of Credit, any Application or any instrument or document delivered in connection herewith or
therewith. 
 Person means any natural person, corporation, partnership, trust, limited liability company, association, governmental authority or
unit, or any other entity, whether acting in an individual, fiduciary or other capacity. 
 Prime Rate means the rate per annum established by the
Bank from time to time as its “Prime Rate” for commercial customers. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. 
 UCC means at any time the Uniform Commercial Code as in effect in the State of Illinois. 
 UCP means at any time the most recent Uniform Customs and Practice for Documentary Credits issued by the International Chamber of Commerce. 
 Unmatured Event of Default means any event which if it continues uncured will, with lapse of time or notice or both, constitute an Event of Default. 

SECTION 2 LETTER OF CREDIT PROCEDURES. 
 2.1 Issuance of Letters of Credit. Subject to the terms and conditions of this Agreement, the Bank may from time to time, in its sole and complete discretion, issue Letters of Credit for the account of the Applicant; provided
that the terms and provisions of each Letter of Credit and the Application therefor shall be satisfactory to the Bank in its discretion. 
 2.2
Applications. Not later than three Business Days prior to the date of the proposed issuance of a Letter of Credit (or such later date as the Bank shall agree), the Applicant shall deliver an Application for such Letter of Credit to the Bank.
An Application may be sent by facsimile, by United Sates mail, by overnight courier, by electronic transmission using the system provided by the Bank, by personal delivery or by any other means acceptable to the Bank. 
 2.3 Form of Letters of Credit. (a) The Applicant authorizes the Bank to set forth the terms of each Application in the Letter of Credit corresponding to such
Application (and in any amendment thereto) in such language as the Bank deems appropriate, with such variations from such terms as the Bank may in its discretion determine to be necessary (which determination shall be conclusive) and not materially
inconsistent with such Application. The Bank may, but shall not be obligated to, request the Applicant to review the form of a Letter of Credit prior to issuance thereof, in which case the Applicant shall be deemed to have approved the form of such
Letter of Credit. With respect to any other Letter of Credit, the Applicant agrees that such Letter of Credit shall be conclusively presumed to be in proper form unless the Applicant notifies the Bank in writing of any inconsistency in such Letter
of Credit within three Business Days of its issuance. Upon receipt of timely notice of any discrepancy in any Letter of Credit, the Bank will endeavor to obtain the consent of the beneficiary and any confirming bank for an appropriate modification
to such Letter of Credit; provided that the Bank shall have no liability or responsibility for its failure to obtain such consent. 
 (b) The
Applicant accepts the risk that a Letter of Credit will be interpreted or applied other than as intended by the Applicant to the extent such Letter of Credit (i) permits presentation at a place other than the place of issuance,
(ii) permits application of laws or practice rules with which the Applicant is unfamiliar; (iii) includes ambiguous, inconsistent or impossible requirements, (iv) requires termination or reduction against a presentation made by the
Applicant rather than the beneficiary or (v) fails to incorporate appropriate letter of credit practices rules. 
 2.4 Representations and
Warranties. The delivery of each Application shall automatically constitute a representation and warranty by the Applicant to the Bank to the effect that on the requested date of issuance of such Letter of Credit, (a) the representations
and warranties of the Applicant set forth in Section 4 shall be true and correct as of such requested date as though made on the date thereof and (b) no Event of Default or Unmatured Event of Default shall have then occurred and be
continuing or will result from such issuance. 
 SECTION 3 REIMBURSEMENT OBLIGATIONS; RESPONSIBILITIES, ETC. 
 3.1 Reimbursement Obligations. The Applicant hereby agrees to reimburse the Bank forthwith upon demand in an amount equal to any payment or disbursement made by
the Bank under any Letter of Credit or any time draft issued pursuant thereto, together with interest on the amount so paid or disbursed by the Bank from and including the date of payment or disbursement to but not including the date the Bank is
reimbursed by the Applicant at a rate per annum equal to the Prime Rate from time to time in effect plus 2% (or, if less, the maximum rate permitted by applicable law). The obligation of the Applicant to reimburse the Bank under this
Section 3 for payments and disbursements made by the Bank under any Letter of Credit or any time draft issued pursuant thereto shall be absolute and unconditional under any and all circumstances, including, without limitation, the
following: 
  

	(a)	any failure of any Item presented under such Letter of Credit to strictly comply with the terms of such Letter of Credit; 

  

	(b)	the legality, validity, regularity or enforceability of such Letter of Credit or of any Item presented thereunder; 

	(c)	any defense based on the identity of the transferee of such Letter of Credit or the sufficiency of the transfer if such Letter of Credit is transferable; 

 

	(d)	the existence of any claim, set-off defense or other right that the Applicant may have at any time against any beneficiary or transferee of such Letter of Credit, the Bank or any
other Person, whether in connection with this Agreement, the transactions contemplated hereby or any unrelated transaction; 

  

	(e)	any Item presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any
respect; 

  

	(f)	honor of a demand for payment presented electronically even if such Letter of Credit requires that demand be in the form of a draft; 

  

	(g)	waiver by the Bank of any requirement that exists for the Bank’s protection and not the protection of the Applicant or any waiver by the Bank which does not in fact materially
prejudice the Applicant; 

  

	(h)	any payment made by the Bank in respect of an Item presented after the date specified as the expiration date of, or the date by which documents must be received under, such Letter
of Credit if payment after such date is authorized by the ISP, the UCC or the UCP, as applicable; or 

  

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

 provided that the Applicant shall not be obligated to reimburse the Bank for any wrongful payment or disbursement made by the Bank under any Letter of Credit as a result of any act or omission constituting
gross negligence or willful misconduct on the part of the Bank. 
 3.2 Discrepancies. (a) The Applicant agrees that it will promptly examine any
and all instruments and documents delivered to it from time to time in connection with any Letter of Credit, and if the Applicant has any claim of non-compliance with its instructions or of discrepancies or other irregularity, the Applicant will
immediately (and, in any event, within three Business Days) notify the Bank thereof in writing, and the Applicant shall be deemed to have waived any claim against the Bank unless such notice is given within such time period. Without limiting the
foregoing, if the Bank makes any payment or disbursement under a Letter of Credit and the Applicant does not send a notice to the Bank within three Business Days objecting to such payment or disbursement and specifying in reasonable detail the
discrepancy or irregularity which is the basis for such objection, then the Applicant shall be precluded from making any objection to the Bank’s honor of the presentation with respect to which such payment or disbursement was made (but shall
not be precluded from asserting any objection to any different presentation under the same or a different Letter of Credit). 
 (b) The Applicant’s
acceptance or retention of any documents presented under or in connection with a Letter of Credit (including originals or copies of documents sent directly to the Applicant) or of any property for which payment is supported by a Letter of Credit
shall ratify the Bank’s honor of the documents and absolutely preclude the Applicant from raising a defense or claim with respect to the Bank’s honor of the relevant presentation. 
 3.3 Documents. Unless specified to the contrary in the relevant Application, the Applicant agrees that the Bank and its correspondents: (a) may accept as
complying with the applicable Letter of Credit any Item drawn, issued or presented under such Letter of Credit which is issued or purportedly issued by an agent, executor, trustee in bankruptcy, receiver or other representative of the party
identified in such Letter of Credit as the party permitted to draw, issue or present such Item; and (b) may in its or their discretion, but shall not be obligated to, accept or honor (i) any Item which substantially complies with the terms of
the applicable Letter of Credit; (ii) any Item which substantially complies under the laws, rules, regulations and general banking or trade customs and usages of the place of presentation, negotiation or payment; (iii) drafts which fail to
bear any or adequate reference to the applicable Letter of Credit; (iv) any Item presented to the Bank after the stated expiration date of a Letter of Credit but within any applicable time period during which such Letter of Credit may be
honored in accordance with the UCP, the UCC and/or the ISP, as applicable (and, in any event, any Item presented to the Bank on the Business Day immediately following the stated expiration date of any Letter of Credit, if such stated expiration date
falls on a day which is not a Business Day); or (v) any Item which substantially complies with the requirements of the UCP, the UCC and/or the ISP, as applicable. In determining whether to pay under any Letter of Credit, the Bank shall have no
obligation to the Applicant or any other Person except to confirm that the Items required to be delivered under such Letter of Credit appear to have been delivered and appear on their face to substantially comply with the requirements of such Letter
of Credit. For purposes of the foregoing, an Item “substantially complies” unless there are discrepancies in the presentation which appear to be substantial and which reflect corresponding defects in the beneficiary’s performance in
the underlying transaction. A discrepancy is not substantial if it is unrelated or immaterial to the nature or amount of the Applicant’s loss. For example, documents honored by the Bank that do not comply with the timing requirements of the
Letter of Credit for presenting or dating any required beneficiary statement nonetheless substantially comply if those timing requirements are not material in determining whether the underlying agreement has been substantially performed or violated.

 3.4 Exculpation. In addition to the exculpatory provisions contained in the UCP, the UCC and/or the ISP, as applicable, the Bank and its
correspondents shall not be responsible for, and the Applicant’s obligation to reimburse the Bank shall not be affected by, (a) compliance with any law, custom or regulation in effect in the country of issuance, presentation, negotiation
or payment of any Letter of Credit, (b) any refusal by the Bank to honor any Item because of an applicable law, regulation or ruling of any governmental agency, whether now or hereafter in effect, (c) any action or inaction required or
permitted under the UCC, the UCP, the ISP or the United Nations Convention on Independent Guarantees and Stand-by Letters of Credit, in each case as applicable, or (d) any act or the failure to act of any agent or correspondent of the Bank,
including, without limitation, failure of any such agent or correspondent to pay any Item because of any law, decree, regulation, ruling or interpretation of any governmental agency. 
 3.5 Risks. The Applicant assumes all risks of the acts or omissions of any beneficiary or transferee of any Letter of Credit (it being understood that such assumption is not intended to, and shall not, preclude
the Applicant from pursuing any right or remedy it may have against any such beneficiary or transferee). The Applicant further agrees that any action or omission by the Bank under or in connection with any Letter of Credit or any related Item,
document or property shall, unless in breach of good faith, be binding on the Applicant and shall not put the Bank under any resulting liability to the Applicant. Without limiting the foregoing, the Applicant agrees that in no event shall the Bank
be liable for incidental, consequential, punitive, exemplary or special damages. 
 3.6 Limitation on Bank’s Obligations. Without limiting any
other provision herein, the Bank is expressly authorized and directed to honor any request for payment which is made under and in compliance with the terms of any Letter of Credit without regard to, and without any duty on the part of the Bank to
inquire into, the existence of any dispute or controversy between any of the Applicant, the beneficiary of any Letter of Credit or any other Person, or the respective rights, duties or liabilities of any of them, or whether any facts represented in
any Item presented under a Letter of Credit are true or correct. Furthermore, the Applicant agrees that the Bank’s obligation to the Applicant shall be limited to honoring requests for payment made under and in compliance with the terms of any
Letter of Credit, and the Bank’s obligation remains so limited even if the Bank may have prepared or assisted in the preparation of the wording of any Letter of Credit or any Item required to be presented thereunder or the Bank may otherwise be
aware of the underlying transaction giving rise to any Letter of Credit. 
 3.7 Automatic Renewal of Letters of Credit. IF ANY LETTER OF CREDIT
CONTAINS ANY PROVISION FOR AUTOMATIC RENEWAL, THE APPLICANT ACKNOWLEDGES AND AGREES THAT THE BANK IS UNDER NO OBLIGATION TO ALLOW SUCH RENEWAL TO OCCUR AND ANY SUCH RENEWAL SHALL REMAIN WITHIN THE SOLE AND ABSOLUTE DISCRETION OF THE BANK. THE
APPLICANT IRREVOCABLY CONSENTS TO THE AUTOMATIC RENEWAL OF EACH SUCH LETTER OF CREDIT IN ACCORDANCE WITH ITS TERMS IF THE BANK ALLOWS SUCH RENEWAL TO OCCUR; PROVIDED THAT THE APPLICANT SHALL HAVE THE RIGHT TO REQUEST THE BANK TO DISALLOW ANY
SUCH RENEWAL ON THE CONDITION THAT THE APPLICANT SHALL GIVE THE BANK PRIOR WRITTEN NOTICE OF SUCH REQUEST NOT LESS THAN 30 DAYS PRIOR TO THE DEADLINE IMPOSED UPON THE BANK FOR NOTIFICATION TO THE BENEFICIARY OF NON-RENEWAL OF ANY SUCH LETTER OF
CREDIT. 
  

 2 

 SECTION 4 REPRESENTATIONS AND WARRANTIES. The Applicant represents and warrants to the Bank that: 
  

	(a)	Organization, etc. The Applicant is duly organized or formed, validly existing and (to the extent applicable under the laws of the relevant jurisdiction) in good standing
under the laws of the jurisdiction of its organization or formation, and the Applicant is duly qualified and in good standing as a foreign entity authorized to do business in each other jurisdiction where, because of the nature of its activities or
properties, such qualification is required. 

  

	(b)	Authorization; No Conflict. The execution and delivery by the Applicant of this Agreement and each Application, the issuance of Letters of Credit for the account of the
Applicant hereunder and the performance by the Applicant of its obligations under this Agreement and the Applications are within the organizational powers of the Applicant, have been duly authorized by all necessary organizational action, have
received all necessary governmental approval (if any shall be required), and do not and will not contravene or conflict with, or result in or require the imposition of any lien or security interest under, any provision of law or of the charter or
by-laws of the Applicant or of any indenture, loan agreement or other contract, or any judgment, order or decree, which is binding upon the Applicant. 

  

	(c)	Validity and Binding Nature. This Agreement is, and upon delivery to the Bank each Application will be, the legal, valid and binding obligation of the Applicant, enforceable
against the Applicant in accordance with its terms, subject to bankruptcy, insolvency and similar laws of general application affecting the rights of creditors and to general principles of equity. 

  

	(d)	Approvals. No authorization, approval or consent of, or notice to or filing with, any governmental or regulatory authority is required to be made in connection with the
execution and delivery by the Applicant of this Agreement or the issuance of any Letter of Credit for the account of the Applicant pursuant hereto. 

 SECTION 5 FEES. The Applicant agrees to pay the Bank all reasonable fees of the Bank (at the rates specified by the Bank from time to time in schedules delivered by the Bank to the Applicant) with respect to each Letter of Credit
(including, without limitation, all fees associated with any amendment to, drawing under, banker’s acceptance pursuant to, or transfer of a Letter of Credit), such fees to be payable on demand by the Bank therefor. 
 SECTION 6 COMPUTATION OF INTEREST AND FEES. All interest and fees hereunder shall be computed for the actual number of days elapsed on the basis of a year of 360 days.
The interest rate applicable to Letter of Credit reimbursement obligations shall change simultaneously with each change in the Prime Rate. 
 SECTION 7
MAKING OF PAYMENTS. (a) All payments of principal of, or interest on, letter of credit reimbursement obligations, all payments of fees and all other payments hereunder shall be made by the Applicant in immediately available funds to the Bank at
its principal office in Chicago not later than 12:30 P.M., Chicago time, on the date due, and funds received after that time shall be deemed to have been received by the Bank on the next Business Day. If any payment of principal, interest or fees
falls due on a Saturday, Sunday or other day which is not a Business Day, then such due date shall be extended to the next Business Day, and additional interest shall accrue and be payable for the period of such extension. 
 (b) The Applicant irrevocably agrees that the Bank or any affiliate thereof may (but neither the Bank nor any such affiliate shall be obligated to) debit any deposit
account of the Applicant in an amount sufficient to pay any fee, reimbursement obligation or other amount that is due and payable hereunder. The Bank or the applicable affiliate shall promptly notify the Applicant of any such debit (but failure of
the Bank or any such affiliate to do so shall not impair the effectiveness thereof or impose any liability on the Bank or such affiliate). 
 (c) The
Applicant shall reimburse the Bank for each payment under a Letter of Credit in the same currency in which such payment was made; provided that, if the Bank so requests (in its discretion), the Applicant shall reimburse the Bank in United
States dollars for any payment under a Letter of Credit made in a foreign currency at the rate at which the Bank could sell such foreign currency in exchange for United States dollars for transfer to the place of payment of such payment or, if there
is no such rate, the United States dollar equivalent of the Bank’s actual cost of settlement. The Applicant agrees to pay the Bank on demand in United States dollars such amounts as the Bank may be required to expend to comply with any and all
governmental exchange regulations now or hereafter applicable to the purchase of foreign currency. 
 (d) All payments by the Applicant hereunder shall be
made free and clear of and without deduction for any present or future income, excise or stamp taxes and any other taxes, fees, duties, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding franchise
taxes and taxes imposed on or measured by the Bank’s net income or receipts (such non-excluded items being called “Taxes”). If any withholding or deduction from any payment to be made by the Bank hereunder is required in
respect of any Taxes pursuant to any applicable law, rule or regulation, then the Applicant will 
 (i) pay directly to the relevant authority
the full amount required to be so withheld or deducted; 
 (ii) promptly forward to the Bank an official receipt or other documentation
satisfactory to the Bank evidencing such payment to such authority; and 
 (iii) pay to the Bank such additional amount as is necessary to
ensure that the net amount actually received by the Bank will equal the full amount the Bank would have received had no such withholding or deduction been required. 
 Moreover, if any Taxes are directly asserted against the Bank or on any payment received by the Bank hereunder, the Bank may pay such Taxes and the Applicant will promptly pay such additional amount (including any
penalty, interest or expense) as is necessary in order that the net amount received by the Bank after the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount the Bank would have received had no such Taxes
been asserted. 
 If the Applicant fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Bank the required receipts or
other required documentary evidence, the Applicant shall indemnify the Bank for any incremental Tax, interest, penalty or expense that may become payable by the Bank as a result of such failure. 
 SECTION 8 INCREASED COSTS. If, after the date hereof, the adoption of, or any change in, any applicable law, rule or regulation, or any change in the interpretation or
administration of any applicable law, rule or regulation by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any request, guideline or directive
(whether or not having the force of law) of any such authority, central bank or comparable agency, 
  

	(a)	affects or would affect the amount of capital required or expected to be maintained by the Bank or any corporation controlling the Bank and (taking into consideration the
Bank’s or such controlling corporation’s policies with respect to capital adequacy) the Bank determines that the amount of such capital is increased as a consequence of this Agreement or the Letters of Credit; or 

 

	(b)	imposes, modifies or deems applicable any reserve (including, without limitation, any reserve imposed by the Board of Governors of the Federal Reserve System), special deposit or
similar requirement against assets of, deposits with or for the account of, or credit extended by the Bank with respect to letters of credit, or imposes on the Bank any other condition affecting this Agreement or the Letters of Credit, and the Bank
determines that the result of any of the foregoing is to increase the cost to, or to impose a cost on, the Bank of issuing or maintaining any Letter of Credit or of making any payment or disbursement under any Letter of Credit, or to reduce the
amount of any sum received or receivable by the Bank under this Agreement; 

  

 3 

 then within five Business Days after demand by the Bank (which demand shall be accompanied by a statement setting
forth in reasonable detail the basis of such demand and a calculation thereof in reasonable detail), the Applicant shall pay directly to the Bank such additional amount as will compensate the Bank for such increased capital requirement, such
increased cost or such reduction, as the case may be. Determinations and statements of the Bank pursuant to this Section 8 shall be conclusive absent manifest error, and the provision of this Section 8 shall survive
termination of this Agreement. 
 SECTION 9 EVENTS OF DEFAULT AND THEIR EFFECT. 
 9.1 Events of Default. Each of the following shall constitute an Event of Default under this Agreement: 
 9.1.1 Non-Payment of Liabilities, etc. Default in the payment when due of any principal of or interest on any Liabilities; or default, and
continuance thereof for five days after notice thereof from the Bank, in the payment when due of any fees or other amounts payable by the Applicant hereunder. 
 9.1.2 Bankruptcy, etc. The Applicant or any guarantor of the Liabilities shall become insolvent or admit in writing its inability to pay debts as they mature, or the Applicant or any such guarantor shall apply
for, consent to or acquiesce in the appointment of a trustee or receiver, or in the absence of such application, consent or acquiescence, a trustee or receiver is appointed for the Applicant or any such guarantor, or any proceeding under any
bankruptcy or insolvency law or any dissolution or liquidation proceeding is instituted by or against the Applicant or any such guarantor and, if instituted against the Applicant or such guarantor, remains for 30 days undismissed, or any writ of
attachment is issued against any substantial portion of the Applicant’s or any such guarantor’s property and is not released within 30 days of service, or the Applicant or any such guarantor takes any action to authorize, or in furtherance
of, any of the foregoing. 
 9.1.3 Other Agreements with Bank. Any default shall occur (subject to any applicable grace period) under
any other agreement between the Applicant and the Bank or any of its affiliates (including any agreement under which the Applicant is a borrower and the Bank or any such affiliate and one or more other financial institutions are the lenders); or the
Applicant shall fail to comply with or to perform (subject to any applicable grace period) any covenant set forth in any such other agreement as such covenant is in effect on the date hereof or is amended from time to time with the consent of the
Bank (but without giving effect to the expiration or termination of any such agreement unless such agreement is replaced by another agreement to which the Bank is a party). 
 9.1.4 Representations and Warranties. Any representation or warranty made by the Applicant herein or in any writing furnished in connection with or
pursuant to this Agreement shall be false or misleading in any material respect on the date made. 
 9.2 Effect of Event of Default. If any Event of
Default described in Section 9.1.2 shall occur, all Liabilities shall immediately become due and payable and the Applicant shall immediately become obligated to deliver to the Bank cash collateral in an amount equal to the face amount of
all outstanding Letters of Credit; and if any other Event of Default shall occur, the Bank may declare all Liabilities to be due and payable and may demand that the Applicant immediately deliver to the Bank cash collateral in an amount equal to the
face amount of all outstanding Letters of Credit, whereupon all Liabilities shall become immediately due and payable and the Applicant shall immediately become obligated to deliver to the Bank cash collateral in an amount equal to the face amount of
all outstanding Letters of Credit. The Bank shall promptly advise the Applicant of any such declaration, but failure to do so shall not impair the effect of such declaration. The Applicant hereby grants the Bank a security interest in all cash
collateral delivered hereunder. All cash collateral shall be held by the Bank and applied to Liabilities arising in connection with any drawing under a Letter of Credit. After all Letters of Credit have been fully drawn, expired or been terminated,
such cash collateral shall be applied by the Bank, first, to any remaining Liabilities and, then, to any other liabilities of the Applicant to the Bank, and any excess shall be delivered to the Applicant or as a court of competent jurisdiction may
direct. 
 SECTION 10 SECURITY. 
 10.1 Grant of Security
Interest. As security for the prompt payment and performance of all Liabilities, and in addition to any other security given to the Bank by separate agreement, the Applicant hereby grants to the Bank a continuing security interest in all of the
following, whether now existing or hereafter arising; (i) all property shipped, stored or dealt with in connection with any Letter of Credit; and (ii) all drafts, documents, instruments, contacts (including, without limitation, shipping
documents, warehouse receipts and policies or certificates of insurance), inventory, accounts, chattel paper and general intangibles, and all proceeds of the foregoing, arising from or in connection with any Letter of Credit, including, without
limitation, any of the foregoing which is in the Bank’s actual or constructive possession or is in transit to the Bank or any of its affiliates, agents or correspondents (and regardless of whether such property has been released to the
Applicant). The Applicant further agrees that the Bank or any of its affiliates may set off and apply to any of the Liabilities which are then due and payable (by acceleration or otherwise) any deposit of the Applicant at any time held by the Bank
or any of its affiliates. The Applicant agrees that this Agreement (or a carbon or photographic copy hereof) may be filed as a financing statement to the extent permitted by law. The Applicant authorizes the Bank to file such financing statements as
may be required by the Bank to perfect the security interest of the Bank hereunder. The Applicant also agrees that, on request by the Bank, the Applicant shall execute and deliver such financing statements and other documents or instruments as may
be required by the Bank to perfect or maintain the security interest of the Bank hereunder. 
 10.2 Rights and Remedies. The Bank shall have all
rights and remedies of a secured party under the UCC. If prior notice to the Applicant is required for any action, the Bank shall give the Applicant at least five days’ notice in writing of the time and place of the sale, disposition or other
event giving rise to such required notice, and the Applicant agrees that such notice will be deemed commercially reasonable. Any property or document representing collateral may be held by the Bank in its name or in the name of the Bank’s
nominee, all without prior notice. Proceeds of any sale or other disposition of collateral shall be applied, in order, to the expenses of retaking, holding and preparing the collateral for sale (including reasonable attorneys’ fees and legal
expenses), and then to the obligations of the Applicant hereunder until paid in full. The Applicant shall be liable for any deficiency. 
 SECTION 11 GENERAL. 
 11.1 Waiver; Amendments. No delay on the part of the Bank in the exercise of any right, power or
remedy shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or remedy preclude other or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver
of, or consent with respect to, any provision of this Agreement shall be effective unless the same shall be in writing and signed and delivered by the Bank, and then any such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. 
 11.2 Notices. (a) Except as otherwise expressly provided herein, all notices
hereunder shall be in writing (including facsimile and electronic transmission, which shall be considered original writings). Notices given by mail shall be deemed to have been given three Business Days after the date sent if sent by registered or
certified mail, postage prepaid, to the applicable party at its address shown below its signature hereto or at such other address as such party may, by written notice received by the other party to this Agreement, have designated as its address for
notices. Notices given by facsimile or electronic transmission shall be deemed to have been given when sent. Notices sent by any other means shall be deemed to have been given when received (or when delivery is refused). 
 (b) The Bank may rely on any writing (including any facsimile, any electronic transmission or any information on a computer disk or similar medium which may be reduced
to writing), or any telephonic or other oral message or instruction (including, without limitation, any oral waiver of any discrepancy with respect to any Item), that the Bank believes in good faith to have been received from an authorized officer,
employee or representative of the Applicant, and the Bank shall not be liable for any action taken in good faith with respect to any writing, message or instruction from an unauthorized person. The Bank shall not be under any duty to verify the
identity of any person submitting any Application or other writing or making any other communication hereunder. 

  

 4 

 
Notwithstanding the foregoing, the Bank is not obligated to recognize the authenticity of any request to issue, amend, honor or otherwise act on any Letter
of Credit that is not evidenced to the Bank’s satisfaction by a writing originally signed by a person the Applicant has certified is authorized to act for the Applicant hereunder or by a message or instruction authenticated to the Bank’s
satisfaction. 
  
 11.3 Costs, Expenses and Taxes; Indemnification.
(a) The Applicant agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Bank (including the reasonable fees and charges of counsel for the Bank) in connection with the enforcement of this Agreement. In addition, the
Applicant agrees to pay, and to save the Bank harmless from all liability for, any stamp or other taxes which may be payable in connection with the execution or delivery of this Agreement, the issuance of Letters of Credit hereunder, or the issuance
of any other instrument or document provided for herein or delivered or to be delivered hereunder or in connection herewith. 
  
 (b) The Applicant agrees to indemnify the Bank and each of its affiliates and each of their respective officers, directors, employees and agents (each an
“Indemnified Party”) against, and to hold each Indemnified Party harmless from, any and all actions, causes of action, suits, losses, costs, damages, expenses (including reasonable attorneys’ fees and charges, expert witness
fees and other dispute resolution expenses) and other liabilities (collectively the “Indemnified Liabilities”) incurred by any Indemnified Party as a result of, or arising out of, or relating to, this Agreement or any Letter of
Credit (and without regard to whether the applicable Indemnified Party is a party to any proceeding out of which such Indemnified Liabilities arise), except to the extent that a court of competent jurisdiction determines in a final, non-appealable
order that any Indemnified Liability resulted directly from the gross negligence or willful misconduct of such Indemnified Party. Without limiting the generality of the foregoing sentence, the term “Indemnified Liabilities” includes any
claim or liability in which an advising, confirming or other nominated bank, or a beneficiary requested to issue its own undertaking, seeks to be reimbursed, indemnified or compensated. If and to the extent the foregoing undertaking may be
unenforceable for any reason, the Applicant agrees to make the maximum contribution to the payment of each of the Indemnified Liabilities which is permitted under applicable law. 
  
 (c) Without limiting clause (b), the Applicant agrees to indemnify the Bank, and to hold the Bank harmless from, any loss or expense
incurred by the Bank as a result of any judgment or order being given or made for the payment of any amount due hereunder in a particular currency (the “Currency of Account”) and such judgment or order being expressed in a currency
(the “Judgment Currency”) other than the Currency of Account and as a result of any variation having occurred in the rate of exchange between the date which such amount is converted into the Judgment Currency and the date of actual
payment pursuant thereto. The foregoing indemnity shall constitute a separate and independent obligation of the Applicant. 
  
 (d) All obligations provided for in this Section 11.3 shall survive any termination of this Agreement. 
  
 11.4 Captions. Section captions used in this Agreement are for convenience only and
shall not affect the construction of this Agreement. 
  
 11.5 Governing
Law. This Agreement shall be a contract made under and governed by the laws of the State of Illinois applicable to contracts made and to be performed entirely within such State. Except to the extent inconsistent with such state law or otherwise
expressly stated in any Letter of Credit, each Letter of Credit and this Agreement also are subject to the terms of (i) with respect to matters relating to standby Letters of Credit and Applications therefor, the ISP, and (ii) with respect to
matters relating to commercial Letters of Credit and Applications therefor, the UCP. Whenever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of
this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this
Agreement. All obligations of the Applicant and rights of the Bank expressed herein shall be in addition to and not in limitation of those provided by applicable law. 
  
 11.6 Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto on separate counterparts
and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. 
  
 11.7 Successors and Assigns. This Agreement shall be binding upon the Applicant and its successors and assigns, provided that the Applicant may not assign
any of its rights or obligations hereunder without the prior written consent of the Bank. 
  
 11.8 Right of Bank to Act through Branches and Affiliates. The Bank may cause any Letter of Credit requested by the Applicant to be issued by a branch or affiliate of the Bank, and all references to the
“Bank” herein or in any related document shall include each applicable branch or affiliate. 
  
 11.9 Foreign Assets Control Regulations. The Applicant certifies that no transaction in foreign commodities covered by any Application will be prohibited under the foreign assets control regulations of the
United States Treasury Department and that any importation related to any Letter of Credit will conform with all applicable laws, rules and regulations. 
  
 11.10 Mitigation; Limitation of Liability. The Applicant agrees to take action to avoid or reduce the amount of any damages which may be claimed against the Bank.
For example, (a) in the case of wrongful honor, the Applicant agrees to enforce its rights arising out of the underlying transaction (except to the extent that enforcement is impractical due to the insolvency of the beneficiary or other Person
from whom the Applicant might otherwise recover), and (b) in the case of wrongful dishonor, the Applicant agrees to specifically and timely authorize the Bank to effect a cure and give written assurances to the beneficiary that a cure is being
arranged. The Applicant’s aggregate remedies against the Bank for honoring a presentation or retaining honored documents in breach of the Bank’s obligations to the Applicant (whether arising under this Agreement, applicable letter of
credit practice or law, or any other agreement or law) are limited to the aggregate amount paid by the Applicant to the Bank with respect to the honored presentation. 
  
 11.11 Subrogation. The Bank shall be subrogated (for purposes of defending against the Applicant’s claims and proceeding against
others to the extent of any liability of the Bank to the Applicant) to the Applicant’s rights against any Person who may be liable to the Applicant on any underlying transaction, to the rights of any holder in due course or Person with similar
status against the Applicant and to the rights of the beneficiary of any Letter of Credit or its assignee or any Person with similar status against the Applicant. 
  
 11.12 Co-Applicants. (a) If this Agreement is signed by two or more Persons (each a “Co-Applicant”), then the
term “Applicant” shall mean each such Person and all such Persons shall be jointly and severally liable for all obligations of the “Applicant” hereunder and in respect of the Letters of Credit issued pursuant hereto. Any
Co-Applicant shall have the right to issue all instructions relating to Letters of Credit (including, without limitation, instructions as to the disposition of documents and waiver of discrepancies) and to agree with the Bank upon any amendment,
extension, renewal or modification of, or change in the amount of, any Letter of Credit, and such instructions and agreements shall be binding upon all Co-Applicants. Each Co-Applicant shall be bound by (i) any notice from the Bank to any other
Co-Applicant, (ii) any other Co-Applicant’s settlement or release of any claim against the Bank arising under this Agreement and (iii) any default under this Agreement attributable to any other Co-Applicant. 
  
 (b) Each Co-Applicant agrees that if at any time all or any part of any payment theretofore
applied by the Bank to any of the Liabilities is or must be rescinded or returned by the Bank for any reason whatsoever (including the insolvency, bankruptcy or reorganization of any Co-Applicant), such Liabilities shall, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in existence, notwithstanding such application by the Bank, and the obligations of such Co-Applicant with respect thereto shall continue to be effective or be reinstated, as
the case may be, as to such Liabilities, all as though such application by the Bank had not been made. 
  
 (c) The Bank may, from time to time, in its sole discretion and without affecting the obligation of any Co-Applicant, take any or all of the following actions: (a) retain or obtain the primary or secondary
obligation of any other obligor, in addition to such Co-Applicant, with respect to any of the Liabilities, and take any security for the obligations of any such other obligor, (b) extend or renew any of 

  

 5 

 
the Liabilities for one or more periods (whether or not longer than the original period), alter or exchange any of the Liabilities, or release or compromise
any obligation of any other Co-Applicant or any obligation of any nature of any other obligor with respect to any of the Liabilities, (c) release its security interest in, or surrender, release or permit any substitution or exchange for, all or
any part of any property securing any of the Liabilities, or extend or renew for one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor with respect
to any such property, and (d) resort to such Co-Applicant for payment of any of the Liabilities when due, whether or not the Bank shall have resorted to any property securing any of the Liabilities or shall have proceeded against any other
Co-Applicant or any other obligor primarily or secondarily obligated with respect to any of the Liabilities. 
 11.13 Continuation of Liability.
Regardless of the expiry date of any Letter of Credit, the Applicant shall remain liable hereunder until the Bank is released from liability by every Person that is entitled to draw or demand payment under each Letter of Credit issued pursuant
hereto. 
 11.14 Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY APPLICATION, SHALL BE
BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF COOK COUNTY, ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE BANK’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE APPLICANT HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF COOK COUNTY, ILLINOIS AND OF THE
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION. THE APPLICANT FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS SET FORTH BENEATH ITS
SIGNATURE HERETO (OR SUCH OTHER ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO THE BANK AS ITS ADDRESS FOR NOTICES HEREUNDER) OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE APPLICANT EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

11.15 Waiver of Jury Trial. EACH OF THE APPLICANT AND, BY ISSUING ANY LETTER OF CREDIT, THE BANK HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR ANY APPLICATION, INSTRUMENT, DOCUMENT, AMENDMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP
EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 
 Delivered at Chicago, Illinois, as of the day and year first above written. 
  

			
	
	 
	[Applicant]
		
	By	 	 
		
	Title	 	 
		
	By	 	 
		
	Title	 	 
		
	Address:	 	
		
	Attention:	 	 
		
	Facsimile:	 	 
	
	
	[Second Applicant, if applicable]
		
	By	 	 
		
	Title	 	 
		
	By	 	 
		
	Title	 	 
		
	Address:	 	
		
	Attention:	 	 
		
	Facsimile:	 	 

 [Signature Page Attached]. 
  

 6 

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

											
	MODUSLINK CORPORATION	 		 		 	SALESLINK LLC
	a Delaware corporation	 		 		 	a Delaware limited liability company
						
	By:	 	 	 		 		 	By:	 	 
						
	Name:	 	 	 		 		 	Name:	 	 
						
	Title:	 	 	 		 		 	Title:	 	 
				
	SALESLINK MEXICO HOLDING CORP.	 		 		 	
	a Delaware corporation	 		 		 	
						
	By:	 	 	 		 		 		 	
						
	Name:	 	 	 		 		 		 	
						
	Title:	 	 	 		 		 		 	

  

 Exhibit B (§2.2) 
  
 Form of Second Amended and Restated Revolving Credit Note 

 SECOND AMENDED AND RESTATED 
 REVOLVING CREDIT NOTE 
  

			
	$35,000,000.00	 	Chicago, Illinois
	 	 	October     , 2005

  
 On or before the
Revolving Credit Termination Date, FOR VALUE RECEIVED, the undersigned (“Borrowers”) promise to pay to the order of LASALLE BANK NATIONAL ASSOCIATION (“Lender”) at the Agent’s office at 135 South
LaSalle Street, Chicago, Illinois 60603, or such other place as the Agent may designate from time to time hereafter, the principal sum of Thirty-Five Million and 00/100 Dollars ($35,000,000.00) or, if less, the aggregate unpaid principal amount
of all Loans made by Lender under the Revolving Credit Facility pursuant to that certain Second Amended and Restated Loan and Security Agreement dated of even date herewith, among Borrowers, Agent and the Lenders party thereto (herein, as the same
may be amended, modified or supplemented from time to time, the “Loan Agreement”) as shown on a schedule attached hereto or in the Agent’s records. All capitalized terms used herein without definition shall have the same
meanings ascribed to such terms in the Loan Agreement. 
  
 This
Note evidences certain Loans under the Revolving Credit Facility made from time to time to Borrowers by the Lender under the Loan Agreement, and the Borrowers hereby promise to pay interest at the offices described above on the Loans evidenced
hereby at the rates and at the times and in the manner specified therefor in the Loan Agreement. 
  
 Repayments of principal hereon, shall be recorded by the Agent on a schedule to this Note or recorded on the Agent’s books and records. Borrowers
agree that in any action or proceeding instituted to collect or enforce collection of this Note, the entries so recorded on a schedule to this Note or recorded on the books and records of the Agent shall, absent demonstrable error be conclusive
evidence of the amount of the Loans made by Lender to Borrowers and the interest and payments thereon. 
  
 This Note is issued by the Borrowers under the terms and provisions of the Loan Agreement and is secured by, among other things, the Collateral, the
Amended and Restated ModusLink Pledge Agreement and this Note and the holder hereof is 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 on the terms set forth in the Loan Agreement. Voluntary prepayments may be made on this Note, and certain prepayments are required to be made hereon, all in the events, on the
terms and with the effects provided in the Loan Agreement. 
  
 All
of Lender’s rights and remedies are cumulative and non-exclusive. The acceptance by Lender of any partial payment made hereunder after the time when any of the Liabilities hereunder become due and payable will not establish a custom, or waive
any rights of Lender to enforce prompt payment thereof. Lender’s failure to require strict performance by Borrowers of any provision of 

 
this Note shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and performance therewith. Any waiver of an Event of
Default hereunder shall not suspend, waive or affect any other Event of Default hereunder. Borrowers and every endorser waive presentment, demand and protest and notice of presentment, protest, default, non-payment, maturity, release, compromise,
settlement, extension or renewal of this Note. Borrowers further waive any and all notice or demand to which Borrowers might be entitled with respect to this Note by virtue of any applicable statute or law (to the extent permitted by law).

  
 This Note is issued in replacement of that certain First
Amended and Restated Revolving Credit Note dated December 31, 2004 in the original principal amount of $20,000,000.00 (the “Prior Note”). The Prior Note shall be deemed terminated and of no further force and effect by the
acceptance by Lender of this Note. 
  
 THE LOANS EVIDENCED
HEREBY HAVE BEEN MADE, AND THIS NOTE HAS BEEN DELIVERED, AT CHICAGO, ILLINOIS, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS. BORROWERS
(i) WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO THIS NOTE; (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN COOK COUNTY, ILLINOIS, OVER ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO THIS NOTE; (iii) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT BORROWERS MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH
ACTION OR PROCEEDING; (iv) AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (v) AGREE NOT TO
INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST LENDER OR ANY OF LENDER’S DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR PROPERTY, CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THIS NOTE IN ANY COURT OTHER THAN ONE LOCATED IN COOK COUNTY,
ILLINOIS. 
  
 [signature page attached] 
  

 -2- 

 IN WITNESS WHEREOF, this Second Amended and Restated Revolving Credit Note has been duly executed
as of the day and year first written above. 
  

									
	 MODUSLINK CORPORATION
 a Delaware corporation

	 		 	 SALESLINK LLC
 a Delaware limited
liability company

					
	 By:
	 	 	 		 	By:	 	 
	 Name:
	 	Thomas Oberdorf	 		 	Name:	 	Thomas Oberdorf
	 Title:
	 	Chief Financial Officer and Treasurer	 		 	Title:	 	Chief Financial Officer and Treasurer

  

			
	 SALESLINK MEXICO HOLDING CORP.
 a Delaware
corporation

		
	 By:
	 	 
	 Name:
	 	Thomas Oberdorf
	 Title:
	 	Treasurer

 Exhibit C (§2.11(A)(vii)) 
  
 Form of Opinion of Borrowers’ Counsel 

 

 
  
 BROWNE ROSEDALE 
 & LANOUETTE LLP 
  
 October 31, 2005 
  
 LaSalle Bank National Association 
 135 South LaSalle Street 
 Chicago, Illinois 60603 
  
 Citizens Bank of Massachusetts 
 20 South State Street 
 Boston, Massachusetts 02109 
  
 Ladies and Gentlemen: 
  
 We have
acted as special counsel to ModusLink Corporation, a Delaware corporation, SalesLink LLC, a Delaware limited liability company, and SalesLink Mexico Holding Corp., a Delaware corporation (each, a “Borrower” and collectively, the
“Borrowers”). We are furnishing this opinion letter to you in connection with (i) the Second Amended and Restated Loan and Security Agreement dated as of October 31, 2005 among the Borrowers, the Agent and the Lenders
party thereto (the “Loan Agreement”) and (ii) the Ancillary Agreements, each dated as of October 31, 2005, including, but not limited to, the Amended and Restated ModusLink Pledge Agreement and the Amended and Restated
Intercreditor (Subordination) Agreement (the Loan Agreement and Ancillary Agreements are collectively referred to as, the “Loan Documents”). Capitalized terms used but not otherwise defined herein shall have the meanings set forth
in the Loan Agreement. 
  
 We have examined such documents and
made such other investigations as we have deemed appropriate to render the opinions set forth below. As to matters of fact material to our opinions, we have relied, without independent verification or investigation, on, and assumed the truth and
accuracy of, representations made in the Loan Agreement and certificates and other inquiries of officers of the Borrowers. We have also relied on certificates of public officials. With respect to our opinions in paragraphs 5 and 7, we have not
searched the dockets or records of any court, government agency or other office in any jurisdiction. 
  
 The opinions expressed below are limited to Massachusetts law, the Delaware General Corporation Law statute and the federal law of the United States of
general application to transactions in the Commonwealth of Massachusetts. We note that the Loan Documents provide that they are governed by Illinois law. With your permission, we are rendering the opinions expressed below as though the Loan
Documents provide they are governed by Massachusetts law. 
  

 31 St. James Avenue, Suite 850, Boston, Massachusetts 02116 MAIN: (617) 399-6931
FAX: (617) 399-6930 

 References to “our knowledge” or to matters “known to us” or equivalent words means
the actual knowledge of Thomas B. Rosedale of this firm. 
  
 In
rendering this opinion to you, we have also assumed, with your permission, (i) each document and instrument submitted to us for review is accurate and complete, each such document that is an original is authentic, each such document that is a
copy conforms to an authentic original, and all signatures on each such document are genuine, and (ii) each certificate issued by a governmental office or agency and each document supplied to us, directly or indirectly, is accurate, complete
and authentic and all official public records (including their proper indexing and filing) are accurate and complete. 
  
 We express no opinion with respect to the effect or enforceability of any provision of any Loan Document that (i) increases the rate of interest upon
any default or imposes a late fee to the extent either is determined to be a penalty, (ii) provides for collection of interest on overdue interest, (iii) purports to establish evidentiary standards, (iv) waives any statutory,
constitutional or other legal right, (v) provides for recourse or exercise of any remedial rights in the absence of notice and a hearing, (vi) relates to the appointment of a receiver, (vii) provides for submission to exclusive
jurisdiction or the exclusive choice of venue, (viii) purports to grant rights of set-off or similar rights, (ix) purports to grant a power of attorney which is against public policy, (x) relates to the election or cumulation of
remedies to the extent such remedies are not enforced in a commercially reasonable manner or (xi) relates to the effect of any failure to exercise any right or remedy provided to you in the Loan Documents. 
  
 We express no opinion with respect to the attachment, perfection or priority
of any lien or security interest in any collateral granted pursuant to any Loan Document. 
  
 Without limiting the generality of any other exception, limitation or qualification, we have not considered and do not express an opinion with respect to any federal or state securities, environmental, tax,
bankruptcy, or antitrust laws and regulations. 
  
 Our opinions
below as to the validity and enforceability of the Loan Documents are subject to, and may be limited or otherwise affected by, bankruptcy, insolvency, reorganization, liquidation, readjustment of debt, receivership, moratorium, fraudulent
conveyance, equitable subordination, equity of redemption, recharacterization or other similar legal principles now or hereafter in effect governing or affecting the rights and remedies of debtors and creditors generally, or general principles of
equity, regardless of whether considered in a proceeding at law or in equity. 

 Based upon and subject to the foregoing, and subject to the additional qualifications, limitations and
assumptions set forth below, we are of the opinion that: 
  

	 	1.	The Borrowers are corporations or limited liability companies, as applicable, duly incorporated or formed, validly existing and in good standing under the laws of their states of
incorporation or formation. Each Borrower has the power and authority to execute and deliver the Loan Documents to which any of them are parties and to perform their obligations thereunder. 

  

	 	2.	The execution and delivery by each Borrower of the Loan Documents to which such Borrower is a party, and the performance by them of their obligations thereunder, have been duly and
properly authorized by all requisite corporate action of each such Borrower. The Loan Documents to which any Borrower is a party have been duly executed and delivered by such Borrower. 

  

	 	3.	Assuming the due authorization, execution and delivery thereof by the other parties thereto, if any, the Loan Documents to which any Borrower is a party constitute valid and binding
obligations of such Borrower and are enforceable against such Borrower in accordance with their terms. 

  

	 	4.	The execution and delivery of the Loan Documents to which any Borrower is a party by such Borrower do not, and the performance by such Borrower of their respective obligations
thereunder will not, (i) violate any provision of such Borrower’s Certificate of Incorporation or Certificate of Formation, as applicable, (ii) violate any provision of such Borrower’s By-laws or Operating Agreement, as
applicable, or (iii) result in the creation of any Lien under any agreement or instrument known to us to which such Borrower is a party or by which its property may be bound (other than the Loan Documents). 

  

	 	5.	The execution and delivery by any Borrower of the Loan Documents to which such Borrower is a party do not, and the performance of such Borrower’s obligations thereunder will
not, to our knowledge, violate (i) any law covered by this opinion applicable to such Borrower, or (ii) any applicable order, writ, injunction, or decree of any court, administrative agency or other governmental authority known to us.

  

	 	6.	No approval, authorization, consent, review, adjudication or order of any state or federal authority, which has not been obtained by any Borrower, is required to be obtained by such
Borrower in connection with the execution and delivery of the Loan Documents to which such Borrower is a party, or in connection with the performance of such Borrower’s obligations thereunder, except for such filings and other actions as may be
required to perfect any Lien which any such agreement purports to create. 

  

	 	7.	To our knowledge, there are no judgments outstanding against any Borrower nor is there any pending litigation or proceeding to which such Borrower is a named party which places into
question the validity or enforceability, or seeks to enjoin the performance, of the Loan Documents to which such Borrower is a party. 

	 	8.	No Borrower is an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended. 

 The opinions expressed herein are matters of professional judgment, are not a guarantee of result and are effective only as of the date hereof. We do not undertake to
advise you of any matter within the scope of this letter that comes to our attention after the date of this letter and disclaim any responsibility to advise you of any future changes in law or fact that may affect the opinions set forth herein. We
express no opinion other than as hereinbefore expressly set forth. No expansion of the opinions expressed herein may or should be made by implication or otherwise. This opinion is being furnished only in connection with the transaction described
above and may not be relied on for any other purpose or by anyone else without our prior written consent. 
  

	
	Very truly yours,
	
	  
	BRL Law Group LLC*

  
  

	*	On October 14, 2005, Browne Rosedale & Lanouette LLP, a Massachusetts limited liability partnership, merged into BRL Law Group LLC, a Massachusetts limited liability
company. 

 Exhibit D (§ 2.11(A)(ix)) 
  
 Form of Amended and Restated ModusLink Pledge Agreement 

 AMENDED AND RESTATED MODUSLINK PLEDGE AGREEMENT 
  
 THIS MODUSLINK PLEDGE AGREEMENT (this “Agreement”),
is made on October     , 2005 between LaSalle Bank National Association as agent for the Lenders (as defined below) (herein, in such capacity, called the “Agent”) and ModusLink Corporation, a Delaware corporation
(the “Pledgor”). 
  
 WHEREAS, the Pledgor,
SalesLink LLC, a Delaware limited liability company (“SalesLink”), and SalesLink Mexico Holding Corp., a Delaware corporation (“SalesLink Mexico”), the lenders parties thereto (the “Lenders”) and
the Agent entered into to that certain First Amended and Restated Loan and Security Agreement dated as of December 31, 2004, as amended by (i) that certain Consent and First Amendment to First Amended and Restated Loan and Security
Agreement dated as of June 30, 2005 and (ii) that certain Second Amendment to First Amended and Restated Loan and Security Agreement dated as of September 30, 2005 (the “Existing Loan Agreement”); 
  
 WHEREAS, in connection with the execution of the Existing Loan
Agreement, the Pledgor and the Agent entered into that certain ModusLink Pledge Agreement dated as of December 31, 2004; 
  
 WHEREAS, the Pledgor, the Subsidiaries, the Agent and the Lenders have entered into a Second Amended and Restated Loan and Security Agreement of
even date herewith (such Second Amended and Restated Loan and Security Agreement, as the same may be amended, modified, supplemented or restated from time to time hereafter is referred to as the “Loan Agreement”) pursuant and
subject to the terms on and conditions of which the Lenders have agreed to make Loans and make other financial accommodations to the Pledgor and the Subsidiaries from time to time; 
  
 WHEREAS, as a condition to the making of Loans and the issuance of Letters of Credit under the Loan Agreement and as
security for all of the Liabilities of the Borrowers under the Loan Agreement, Agent and the Lenders are requiring that Pledgor enter into this Agreement and grant the security interests contemplated hereby; and 
  
 WHEREAS, Pledgor is the record and beneficial owner of all the shares
of stock and membership interests of SalesLink, SalesLink Mexico, ModusLink B.V., a corporation organized under the laws of the Netherlands, f/k/a Modus Media International B.V. (“ModusLink B.V.”) and ModusLink Tilburg B.V., a
corporation organized under the laws of the Netherlands, f/k/a SalesLink International B.V., f/k/a Logistical Processing B.V. (“Tilburg B.V.”) (SalesLink, SalesLink Mexico, ModusLink BV and Tilburg B.V. are hereinafter referred to
each as a “Subsidiary” and collectively as, the “Subsidiaries”) as more fully described on Schedule I hereto. 
  
 NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and to induce the Lenders to make Loans and to issue
Letters of Credit under the Loan Agreement, it is agreed to enter into this Agreement as follows: 

 1. Definitions. Unless otherwise defined herein, terms defined in the Loan Agreement are used
herein as therein defined, and the following shall have (unless otherwise provided elsewhere in this Agreement) the following respective meanings (such meanings being equally applicable to both the singular and plural form of the terms defined):

  
 “Bankruptcy Code”
shall mean Title 11, United States Code, as amended from time to time, and any successor statute thereto. 
  
 “Pledged Collateral” shall have the meaning assigned to such term in Section 2 hereof. 
  
 “Pledged Interests” shall be those
membership interests in SalesLink listed on Schedule I hereto. 
  
 “Pledged Shares” shall be those shares listed on Schedule I hereto. 
  
 “Secured Liabilities” shall have the meaning assigned to such term in Section 3 hereof. 
  
 2. Pledge. Pledgor hereby pledges to Agent, for its benefit and for
the ratable benefit of the Lenders, and grants to Agent, for its benefit and the ratable benefit of the Lenders, a first priority security interest in all of the following (collectively, the “Pledged Collateral”): 
  
 (a) the Pledged Shares and the certificates representing the
Pledged Shares, if any, and all dividends, distributions, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares of Pledgor;

  
 (b) the Pledged Interests and the
certificates representing the Pledged Interests, if any, and all dividends, distributions, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of the Pledged Interests of Pledgor; and 
  
 (c)
such portion, as determined by Agent as provided in Section 6(d) below, of any additional shares of stock, membership interests or other equity interest of any Subsidiary from time to time acquired by Pledgor in any manner (which shares shall
be deemed to be part of the Pledged Shares), and the certificates representing such additional shares, and all dividends, distributions, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of such shares or interests; provided, however, that Agent shall not take, as Pledged Collateral, equity interests of any foreign Subsidiary of Pledgor totaling more than 65% of the total equity interest
of such foreign Subsidiary. 
  
 3. Security for
Liabilities. This Agreement secures, and the Pledged Collateral is security for, the prompt payment in full when due, whether at stated maturity, by acceleration or otherwise, and performance of all Liabilities now or hereafter existing under
and as defined in the Loan Agreement and all obligations of Pledgor now or hereafter existing under this Agreement including, without limitation, for all fees, costs and expenses whether in connection with collection actions hereunder or otherwise
(collectively, the “Secured Liabilities”). 
  

 2 

 4. Delivery of Pledged Collateral; Registration on SalesLink Books and Records. All certificates
representing or evidencing the Pledged Shares shall be delivered to and held by or on behalf of Agent, for its benefit and the ratable benefit of the Lenders, pursuant hereto and shall be accompanied by duly executed instruments of transfer or
assignment in blank, all in form and substance satisfactory to Agent. Pledgor shall cause the pledge of the Pledged Interests to be registered on the books and records of SalesLink and the pledge of the Pledged Shares of ModusLink B.V. and Tilburg
B.V. to be registered on the books and records of ModusLink B.V. and Tilburg B.V. 
  
 5. Representations and Warranties. Pledgor represents and warrants to Agent and the Lenders that: 
  
 (a) Pledgor is, and at the time of delivery of the Pledged Shares to Agent and the registration of the Pledged Interests on the books and
records of SalesLink pursuant to Section 4 hereof will be, the sole holder of record and the sole beneficial owner of the Pledged Collateral pledged by Pledgor free and clear of any Lien thereon or affecting the title thereto, except for
(i) any Lien created by this Agreement, (ii) as described on Schedule 1.1.4 of the Loan Agreement and (iii) any Lien or security interest in favor of the Lenders. 
  
 (b) All of the Pledged Shares and all of the Pledged Interests have been validly issued and are fully paid
and non-assessable. 
  
 (c) Pledgor has the right
and requisite authority to pledge, assign, transfer, deliver, deposit and set over the Pledged Collateral pledged by Pledgor to Agent, for its benefit and the ratable benefit of the Lenders, as provided herein. 
  
 (d) None of the Pledged Shares or the Pledged Interests have
been issued or transferred in violation of the securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject. 
  
 (e) All of the Pledged Shares are presently owned by Pledgor, and are presently represented by the stock
certificates listed on Schedule I hereto, if applicable. As of the date hereof, there are no existing options, warrants, calls or commitments of any character whatsoever relating to the Pledged Shares other than those in favor of the Lenders.

  
 (f) All of the Pledged Interests are
presently owned by Pledgor. As of the date hereof, there are no existing options, warrants, calls or commitments of any character whatsoever relating to the Pledged Interests other than those in favor of the Lenders. 
  

 3 

 (g) No consent, approval, authorization or other order of any Person and no consent,
authorization, approval, or other action by, and no notice to or filing with, any governmental authority is required (i) for the pledge by Pledgor of the Pledged Collateral pursuant to this Agreement or for the execution, delivery or
performance of this Agreement by Pledgor or (ii) for the exercise by the Agent, for its benefit and the ratable benefit of the Lenders, of the voting or other rights provided for in this Agreement or the remedies in respect of the Pledged
Collateral pursuant to this Agreement, except as may be required in connection with such disposition by laws affecting the offering and sale of securities generally. 
  
 (h) Except for Pledged Collateral which constitutes equity interests of a foreign Subsidiary, the pledge,
assignment and delivery of the Pledged Collateral pursuant to this Agreement will create a valid first priority Lien on and a first priority perfected security interest in the Pledged Collateral pledged by Pledgor, and the proceeds thereof, securing
the payment of the Secured Liabilities, subject to no other Lien or security interest except those in favor of the Lenders. 
  
 (i) This Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a legal, valid and binding obligation of
Pledgor enforceable against Pledgor in accordance with its terms. 
  
 (j) With respect to domestic Subsidiaries, the Pledged Shares and the Pledged Interests constitute 100% of the issued and outstanding shares of capital stock or membership interests of each of the Subsidiaries. With
respect to foreign Subsidiaries, the Pledged Shares and the Pledged Interests constitute 65% of the issued and outstanding shares of capital stock or membership interests of each of the Subsidiaries. 
  
 The representations and warranties set forth in this
Section 5 shall survive the execution and delivery of this Agreement. 
  
 6. Covenants. Pledgor covenants and agrees that until the termination of this Agreement: 
  
 (a) Without the prior written consent of Agent, Pledgor will not sell, assign, transfer, pledge or otherwise encumber any of its rights in
or to the Pledged Collateral pledged by Pledgor, or any unpaid dividends or other distributions or payments with respect to the Pledged Collateral or grant a Lien in the Pledged Collateral except as otherwise permitted by the Loan Agreement.

  
 (b) Pledgor will, at its expense, promptly
execute, acknowledge and deliver all such instruments and take all such action as Agent from time to time may reasonably request in order to ensure to Agent the benefits of the Liens in and to the Pledged Collateral intended to be created by this
Agreement, including authorizing the Agent’s filing of any necessary financing statements, which may be filed by Agent with or without the signature of Pledgor, and will cooperate with Agent, at Pledgor’s expense, in obtaining all
necessary approvals and making all necessary filings under federal or state law in connection with such Liens or any sale or transfer of the Pledged Collateral. 
  

 4 

 (c) Pledgor has and will defend the title to the Pledged Collateral and the Liens of
Agent in the Pledged Collateral against the claim of any Person and will maintain and preserve such Liens until the termination of all Commitments and indefeasible payment in full of the Secured Liabilities. 
  
 (d) Subject to the limitations set forth in
Section 2(c), Pledgor will, upon obtaining any additional shares of stock of any of the Subsidiaries, which shares are not already Pledged Collateral, or upon the formation of any new subsidiary, promptly (and in any event within five
(5) Business Days) deliver to Agent a Pledge Amendment, duly executed by Pledgor, substantially in the form of Schedule II hereto (a “Pledge Amendment”) in respect of any such additional shares pledging to Agent, for
itself and the ratable benefit of the Lenders, all of such additional shares. Pledgor hereby authorizes Agent to attach each Pledge Amendment to this Agreement and agrees that all Pledged Shares or Pledged Interests listed on any Pledge Amendment
delivered to Agent shall for all purposes hereunder be considered Pledged Collateral. 
  
 7. Pledgor’s Rights. As long as no Default or Event of Default shall have occurred and be continuing and until written notice shall be given to Pledgor in accordance with Section 8(a) hereof:

  
 (a) Pledgor shall have the right, from time
to time, to vote and give consents with respect to the Pledged Collateral, or any part thereof for all purposes not inconsistent with the provisions of this Agreement, the Loan Agreement, and any other Ancillary Agreement; provided,
however, that no vote shall be cast, and no consent shall be given or action taken, which would have the effect of impairing the position or interest of Agent in respect of the Pledged Collateral or which would authorize or effect (except as
and to the extent expressly permitted by the Loan Agreement) (i) the dissolution or liquidation, in whole or in part, of any of the Subsidiaries, (ii) the consolidation or merger of any of the Subsidiaries with any other Person,
(iii) the sale, disposition or encumbrance of all or substantially all of the assets of any of the Borrowers, (iv) any change in the authorized number of shares, the stated capital or the authorized share capital of any of the Subsidiaries
or the issuance of any additional shares of any Borrower’s stock or (v) the alteration of the voting rights with respect to the stock of any of the Subsidiaries; 
  
 (b) (i) Pledgor shall be entitled, from time to time, to collect and receive for its own use all cash
dividends paid in respect of the Pledged Collateral to the extent not in violation of the Loan Agreement other than any and all (A) dividends paid or payable other than in cash in respect of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral, (B) dividends and other distributions paid or payable in cash in respect of any Pledged Collateral in connection with a partial or total liquidation
or dissolution and (C) cash paid, payable or otherwise distributed in redemption of, or in exchange for, any Pledged Collateral; provided, however, that until actually paid, all rights to such distributions shall remain subject to
the Lien created by this Agreement and 
  

 5 

 (ii) all dividends (other than such cash dividends as are permitted to be paid to Pledgor
in accordance with clause (i) above) and all other distributions in respect of any of the Pledged Collateral of Pledgor, whenever paid or made, shall be delivered to Agent to hold as Pledged Collateral and shall, if received by Pledgor, be
received in trust for the benefit of Agent, for its benefit and the ratable benefit the Lenders, be segregated from the other property or funds of Pledgor, and be forthwith delivered to Agent as Pledged Collateral in the same form as so received
(with any necessary indorsement). 
  
 8. Defaults and
Remedies. 
  
 (a) Upon the occurrence of an
Event of Default (as defined in the Loan Agreement) and during the continuation of such Event of Default, then on or at any time after such declaration (provided that such declaration is not rescinded by the Agent) and upon written notice to
Pledgor, Agent (personally or through an agent) is hereby authorized and empowered to transfer and register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, to exchange certificates or instruments
representing or evidencing Pledged Shares or Pledged Interests for certificates or instruments of smaller or larger denominations, to exercise the voting and all other rights as a stockholder with respect thereto, to collect and receive all cash
dividends and other distributions made thereon, to sell in one or more sales after ten (10) days’ notice of the time and place of any public sale or of the time after which a private sale is to take place (which notice Pledgor agrees is
commercially reasonable) the whole or any part of the Pledged Collateral and to otherwise act with respect to the Pledged Collateral as though Agent was the outright owner thereof, and Pledgor hereby irrevocably constitutes and appoints Agent as the
proxy and attorney-in-fact of Pledgor, with full power of substitution to do so, and which appointment shall remain in effect until the Liabilities are indefeasibly paid in full; provided, however, Agent shall not have any duty to
exercise any such right or to preserve the same and shall not be liable for any failure to do so or for any delay in doing so. Any sale shall be made at a public or private sale at Agent’s place of business, or at any place to be named in the
notice of sale, either for cash or upon credit or for future delivery at such price as Agent may deem fair, and Agent or any Lender may be the purchaser of the whole or any part of the Pledged Collateral so sold and hold the same thereafter in its
own right free from any claim of Pledgor or any right of redemption. Each sale shall be made to the highest bidder, but Agent reserves the right to reject any and all bids at such sale which, in its discretion, it shall deem inadequate. Demands of
performance, except as otherwise herein specifically provided for, notices of sale, advertisements and the presence of property at sale are hereby waived and any sale hereunder may be conducted by an auctioneer or any officer or agent of Agent.

  
 (b) If, at the original time or times
appointed for the sale of the whole or any part of the Pledged Collateral, the highest bid, if there be but one sale, shall be inadequate to discharge in full all the Secured Liabilities, or if the Pledged Collateral be offered for sale in lots, if
at any of such sales, the highest bid for the lot offered for sale would indicate to Agent, in its discretion, the 

  

 6 

 
unlikelihood of the proceeds of the sales of the whole of the Pledged Collateral being sufficient to discharge all the Secured Liabilities, Agent may, on one
or more occasions and in its discretion, postpone any of said sales by public announcement at the time of sale or the time of previous postponement of sale, and no other notice of such postponement or postponements of sale need be given, any other
notice being hereby waived; provided, however, that any sale or sales made after such postponement shall be after ten (10) days’ notice to Pledgor. 
  
 (c) The proceeds of any sale, disposition or other realization upon all or any part of the Pledged
Collateral shall be distributed by Agent, for the benefit of Agent and Lenders, upon receipt, in the following order of priorities. 
  
 First, to Agent in an amount sufficient to pay in full the expenses of Agent in connection with such sale, disposition or other
realization, including all expenses, liabilities and advances incurred or made by Agent in connection therewith, including reasonable attorneys’ fees and expenses; 
  

 Second, in accordance with Section 8.7 of the Loan Agreement; and 
  
 Third, upon indefeasible payment in full of all of
the Secured Liabilities, to Pledgor or its representatives or to whomsoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction may direct. 
  
 (d) If, at any time when Agent shall determine to exercise its right to sell the whole or any part of the
Pledged Collateral hereunder, such Pledged Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act of 1933, as amended (or any similar statute then in effect) (the
“Act”), Agent may, in its discretion (subject only to applicable requirements of law), sell such Pledged Collateral or part thereof by private sale in such manner and under such circumstances as Agent may deem necessary or
advisable. Without limiting the generality of the foregoing, in any such event, Agent in its discretion (i) may, in accordance with applicable securities laws, proceed to make such private sale notwithstanding that a registration statement for
the purpose of registering such Pledged Collateral or part thereof could be or shall have been filed under said Act (or similar statute), (ii) may approach and negotiate with a single possible purchaser to effect such sale and (iii) may
restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment and not with a view to the distribution or sale of such Pledged Collateral or part thereof. In addition to a private
sale as provided above in this Section 8, if any of the Pledged Collateral shall not be freely distributable to the public without registration under the Act (or similar statute) at the time of any proposed sale pursuant to this Section 8,
then Agent shall not be required to effect such registration or cause the same to be effected but, in its discretion (subject only to applicable requirements of law), may require that any sale hereunder (including a sale at auction) be conducted
subject to restrictions (i) as to the financial sophistication and ability of any Person permitted to bid or purchase at any such sale, (ii) as to the content of legends to be placed upon any certificates representing the Pledged
Collateral sold in such sale, including 

  

 7 

 
restrictions on future transfer thereof, (iii) as to the representations required to be made by each Person bidding or purchasing at such sale relating
to that Person’s access to financial information about Pledgor and such Person’s intentions as to the holding of the Pledged Collateral so sold for investment for its own account and not with a view to the distribution thereof and
(iv) as to such other matters as Agent may, in its discretion, deem necessary or appropriate in order that such sale (notwithstanding any failure so to register) may be effected in compliance with the Bankruptcy Code and other laws affecting
the enforcement of creditors’ rights and the Act and all applicable state securities laws. 
  
 (e) Pledgor acknowledges that notwithstanding the legal availability of a private sale or a sale subject to the restrictions described
above in paragraph (d), Agent may, in its discretion, elect to register any or all the Pledged Collateral under the Act (or any applicable state securities law) in accordance with its rights hereunder. Pledgor, however, recognizes that Agent may be
unable to effect a public sale of any or all the Pledged Collateral and may be compelled to resort to one or more private sales thereof. Pledgor also acknowledges that any such private sale may result in prices and other terms less favorable to the
seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner. Agent shall be under no obligation to delay a sale of any
of the Pledged Collateral for the period of time necessary to permit the registrant to register such securities for public sale under the Act, or under applicable state securities laws, even if Pledgor would agree to do so. 
  
 (f) Pledgor agrees to the maximum extent permitted by
applicable law that following the occurrence and during the continuance of an Event of Default it will not at any time plead, claim or take the benefit of any appraisal, valuation, stay, extension, moratorium or redemption law now or hereafter in
force in order to prevent or delay the enforcement of this Agreement, or the absolute sale of the whole or any part of the Pledged Collateral or the possession thereof by any purchaser at any sale hereunder, and Pledgor waives the benefit of all
such laws to the extent it lawfully may do so. Pledgor agrees that it will not interfere with any right, power and remedy of Agent provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by Agent of any one or more of such rights, powers or remedies. No failure or delay on the part of Agent to exercise any such right, power or remedy and no notice or demand which may be given to or made upon
Pledgor by Agent with respect to any such remedies shall operate as a waiver thereof, or limit or impair Agent’s right to take any action or to exercise any power or remedy hereunder, without notice or demand, or prejudice its rights as against
Pledgor in any respect. 
  
 9. Waiver. No delay on
Agent’s part in exercising any power of sale, Lien, option or other right hereunder, and no notice or demand which may be given to or made upon Pledgor by Agent with respect to any power of sale, Lien, option or other right hereunder, shall
constitute a waiver thereof, or limit or impair Agent’s right to take any action or to exercise any power of sale, Lien, option, or any other right hereunder, without notice or demand, or prejudice Agent’s rights as against Pledgor in any
respect. 
  

 8 

 10. Assignment. Agent or any Lender may assign, indorse or transfer any instrument evidencing all
or any part of the Secured Liabilities as provided in, and in accordance with, the Loan Agreement, and the holder of such instrument shall be entitled to the benefits of this Agreement. 
  
 11. Termination. Upon the indefeasible payment in full of all Secured Liabilities and termination of the Commitments
under the Loan Agreement, Agent shall deliver to Pledgor the Pledged Collateral pledged by Pledgor at the time subject to this Agreement and all instruments of assignment executed in connection therewith, free and clear of the Liens hereof and,
except as otherwise provided herein, all of Pledgor’s obligations hereunder shall at such time terminate. 
  
 12. Lien Absolute. All rights of Agent and Lenders hereunder, and all obligations of Pledgor hereunder, shall be absolute and unconditional
irrespective of: 
  
 (a) any lack of validity or
enforceability of the Loan Agreement, the Notes, any other Ancillary Agreements or any other agreement or instrument governing or evidencing any Secured Liabilities; 
  
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any part of the
Secured Liabilities, or any other amendment or waiver of or any consent to any departure from the Loan Agreement, the Notes, any other Ancillary Agreement or any other agreement or instrument governing or evidencing any Secured Liabilities;

  
 (c) any exchange, release or non-perfection
of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Liabilities; or 
  
 (d) any other circumstance which might otherwise constitute a defense available to, or a discharge of, Pledgor. 
  
 13. Release. Pledgor consents and agrees that Agent and Lenders may at
any time, or from time to time, in their discretion (a) renew, extend or change the time of payment, and/or the manner, place or terms of payment of all or any part of the Secured Liabilities and (b) exchange, release and/or surrender all
or any of the Pledged Collateral, or any part thereof, by whomsoever deposited, which is now or may hereafter be held by Agent in connection with all or any of the Secured Liabilities; all in such manner and upon such terms as Agent and Lenders may
deem proper, and without notice to or further assent from Pledgor, it being hereby agreed that Pledgor shall be and remain bound upon this Agreement, irrespective of the value or condition of any of the Pledged Collateral, and notwithstanding any
such change, exchange, settlement, compromise, surrender, release, renewal or extension, and notwithstanding also that the Secured Liabilities may, at any time, exceed the aggregate principal amount thereof set forth in the Loan Agreement, or any
other agreement governing any Secured Liabilities. Pledgor hereby waives notice of acceptance of this Agreement, 

  

 9 

 
and also presentment, demand, protest and notice of dishonor of any and all of the Secured Liabilities, and promptness in commencing suit against any party
hereto or liable hereon, and in giving any notice to or of making any claim or demand hereunder upon Pledgor. No act or omission of any kind on Agent’s part shall in any event affect or impair this Agreement. 
  
 14. Reinstatement. This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against Pledgor or any Subsidiary for liquidation or reorganization, should Pledgor or any Subsidiary become insolvent or make an assignment for the benefit of creditors or
should a receiver or trustee be appointed for all or any significant part of Pledgor’s or any of the Subsidiaries’ assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of
the Secured Liabilities, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Liabilities, whether as a “voidable preference,”
“fraudulent conveyance” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Liabilities shall be reinstated
and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
  
 15. Miscellaneous. 
  
 (a) Agent may execute any of its duties hereunder by or through agents or employees and shall be entitled to advice of counsel concerning
all matters pertaining to its duties hereunder. 
  
 (b) Pledgor agrees to promptly reimburse Agent for actual out-of-pocket expenses, including, without limitation, reasonable counsel fees, incurred by Agent in connection with the administration and enforcement of this Agreement. 

 
 (c) Neither Agent nor any Lender nor any of their
respective officers, directors, employees, agents or counsel shall be liable for any action lawfully taken or omitted to be taken by it or them hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct.

  
 (d) THIS AGREEMENT SHALL BE BINDING UPON
PLEDGOR AND ITS SUCCESSORS AND ASSIGNS, AND SHALL INURE TO THE BENEFIT OF, AND BE ENFORCEABLE BY, AGENT, FOR ITS BENEFIT AND THE RATABLE BENEFIT OF THE LENDERS, AND THEIR SUCCESSORS AND ASSIGNS, AND SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS IN EFFECT IN THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICT OF LAWS BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS, AND NONE OF THE TERMS OR PROVISIONS OF THIS AGREEMENT
MAY BE WAIVED, ALTERED, MODIFIED OR AMENDED EXCEPT IN WRITING DULY SIGNED FOR AND ON BEHALF OF AGENT AND PLEDGOR. 
  

 10 

 16. Severability. If for any reason any provision or provisions hereof are determined to be
invalid and contrary to any existing or future law, such invalidity shall not impair or affect the operation of those portions of this Agreement which are valid. 
  
 17. Notices. Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give or serve upon any other a communication with respect to this
Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and either shall be delivered in person with receipt acknowledged or sent by registered or certified mail, return receipt
requested, postage prepaid, or by telecopy and confirmed by telecopy answerback addressed as follows: 
  

	 	(a)	If to Agent, at: 

 135 South LaSalle
Street 
 Chicago, Illinois 60603 
 Attention: David Bacon 
 Fax No.: (312) 904-0409 
  
 With copies to: 
 Ungaretti & Harris LLP 
 3500 Three First National Plaza 
 Chicago, Illinois 60602 
 Attention: Gary I. Levenstein 
 Fax No.: (312) 977-4405 
  

	 	(b)	If to Pledgor, at: 

 1100 Winter Street

 Suite 4600 
 Waltham, MA 02451 
 Attention: Chief Financial Officer 
 Fax No.: (        )
        -             
  
 With copies to: 
 BRL Law Group LLC 
 31 St. James Avenue 
 Boston, Massachusetts 02116 
 Attention: Thomas B. Rosedale 
 Fax No.: (617) 399-6930 
  
 or at such other address as may be substituted by notice given as herein provided. The giving
of any notice required hereunder may be waived in writing by the party entitled to receive such notice. Every notice, demand, request, consent, approval, declaration or other communication hereunder shall be deemed to have been duly given or served
on the date on which personally delivered, with receipt acknowledged, transmitted and confirmed by facsimile transmission answerback or five (5) Business Days after the same shall have been deposited in the United States mail. Failure or delay
in delivering copies of any notice, demand, request, consent, approval, declaration or other communication to the persons designated above to receive copies shall in no way adversely affect the effectiveness of such notice, demand, request, consent,
approval, declaration or other communication. 
  

 11 

 18. Section Titles. The Section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
  
 19. Counterparts. This Agreement may be executed in any number of counterparts, which shall, collectively and separately, constitute one agreement.

  
 20. Continuation of Security Interest. Pledgor agrees
and confirms that nothing in this Agreement shall be construed to release, cancel, terminate or otherwise adversely affect all or any part of any lien or other encumbrance granted with respect to loans under the Existing Loan Agreement and such
security shall continue to secure the Secured Liabilities. 
  
 [signature page follows] 
  

 12 

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

			
	MODUSLINK CORPORATION
	a Delaware corporation
		
	By:	 	 
	Name:	 	Thomas Oberdorf
	Title:	 	Chief Financial Officer and Treasurer

  

			
	Accepted and Acknowledged by:
	 LASALLE BANK NATIONAL ASSOCIATION,
 as Agent

		
	By:	 	 
	Name:	 	David Bacon
	Title:	 	Vice President

 SCHEDULE I 
 TO 
 AMENDED AND RESTATED MODUSLINK PLEDGE AGREEMENT 
 PLEDGED SHARES 
  

										
	 Stock Issuer
	  	Class
of Stock	  	Stock Certificate
Number(s)	  	Number
of Shares	  	Percentage of
Outstanding Shares	 
	 SalesLink Mexico Holding Corp.
	  	Capital Stock	  	2	  	1,000	  	100	%
	 ModusLink B.V.
	  	Capital Stock	  	N/A	  	28.6	  	65	%
	 ModusLink Tilburg B.V.
	  	Capital Stock	  	N/A	  	130	  	65	%

 PLEDGED INTERESTS 
  

			
	 Company Name
	  	Percentage of
Outstanding Membership Interests
	 SalesLink LLC
	  	100%

 SCHEDULE II 
 TO 
 AMENDED AND RESTATED MODUSLINK PLEDGE AGREEMENT 
 PLEDGE AMENDMENT 
 This Pledge Amendment, dated
                            ,
             is delivered pursuant to Section 6(d) of that certain Amended and Restated ModusLink Pledge Agreement (the “ModusLink Pledge Agreement”), dated as
of October     , 2005, by the undersigned, as Pledgor, to LaSalle Bank National Association as Agent for the Lenders party thereto. The undersigned hereby certifies that the representations and warranties in Section 4
of the ModusLink Pledge Agreement are and continue to be true and correct, both as to the shares pledged prior to this Pledge Amendment and as to the shares pledged pursuant to this Pledge Amendment. The undersigned further agrees that this Pledge
Amendment may be attached to the ModusLink Pledge Agreement and that the Pledged Shares and/or Pledged Interests listed on this Pledge Amendment shall be and become a part of the Pledged Collateral referred to in said ModusLink Pledge Agreement and
shall secure all Secured Liabilities referred to in said ModusLink Pledge Agreement. The undersigned acknowledges that any shares in the Issuers listed below which are owned by the undersigned and not included in the Pledged Shares at the discretion
of Agent may not otherwise be pledged or otherwise used as security by Pledgor. 
  

			
	 MODUSLINK CORPORATION
 a Delaware corporation

		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

  

									
	 Name and
 Address of Pledgor
	  	 Issuer
	  	 Class
 of Stock
	  	 Certificate
 Number(s)
	  	 Number
 of Shares

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 PLEDGED INTERESTS 
  

					
	 Name and
 Address of Pledgor
	  	 Company Name
	  	 Percentage of Outstanding
 Membership Interests

		  		  	
		  		  	
		  		  	

 Exhibit E (§2.11(A)(x)) 
  
 Form of Amended and Restated Intercreditor (Subordination) Agreement 

 AMENDED AND RESTATED INTERCREDITOR (SUBORDINATION) AGREEMENT 
 THIS AMENDED AND RESTATED INTERCREDITOR (SUBORDINATION) AGREEMENT (this “Agreement”) is made as of October
    , 2005 by and among CMGI, INC., a Delaware corporation (“Creditor”), CITIZENS BANK OF MASSACHUSETTS, as a Lender, LASALLE BANK NATIONAL ASSOCIATION, as a Lender and as agent for the Lenders (herein, in
such capacity, called the “Agent”) and MODUSLINK CORPORATION, a Delaware corporation (“Obligor”). 
 WHEREAS, Obligor is indebted to Creditor pursuant to (i) that certain Secured Demand Note dated as of August 2, 2004 executed by Obligor in favor of Creditor in the principal amount of $25,000,000, (ii) that certain
Secured Promissory Note dated as of December     , 2004 executed by Obligor in favor of Creditor in the principal amount of $10,000,000 and (iii) that certain Secured Promissory Note dated as of December
    , 2004 executed by Obligor in favor of Creditor in the principal amount of $17,151,705 (collectively, the “CMGI Notes”); 
 WHEREAS, as security for Obligor’s obligations to Creditor under the CMGI Notes, Obligor granted a security interest in all of its assets to Creditor pursuant to that certain Security Agreement dated as of
August 2, 2004 by and between Obligor and Creditor, as amended (the “Security Agreement”); 
 WHEREAS, Obligor,
Agent and the Lenders party thereto are party to that certain Second Amended and Restated Loan and Security Agreement dated as of even date herewith (as amended, modified or supplemented from time to time, and together with all Ancillary Documents
executed and delivered pursuant thereto, the “Loan Agreement”); 
 WHEREAS, Agent is requiring, as a condition to
maintaining the Loans and for continuing to issue Letters of Credit pursuant to the Loan Agreement, that Creditor and Obligor execute and deliver this Agreement; 
 WHEREAS, Creditor deems the ongoing extension of credit to Borrowers pursuant to the Loan Agreement necessary to the conduct and operation of Obligor’s business and therefore beneficial to its interest as
a shareholder of Obligor; and 
 WHEREAS, the term “Creditor Obligations” shall mean Obligor’s now existing and
hereafter arising indebtedness, obligations, and liabilities to Creditor arising out of or under (i) the CMGI Notes, including any amendments, extensions and modifications thereto, (ii) the Security Agreement, including any amendments,
extensions and modifications thereto and (iii) all other indebtedness or obligations of Obligor to Creditor (including, without limitation, all debts, claims, indebtedness and all interest thereon), however evidenced or incurred. 
 NOW, THEREFORE, to induce Lenders to enter into the Loan Agreement and in consideration for making the Loans and for issuing the Letters of Credit
pursuant to the Loan Agreement, the extension of credit to Obligor in the future and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned do hereby agree as follows: 
 1. Creditor hereby subordinates the Creditor Obligations to (i) any and all sums, debts, demands, claims, liabilities or causes of action for which
Obligor may be liable to the Lenders pursuant to the Loan Agreement and pursuant to any note, security agreement, guaranty, pledge agreement or other instrument or document executed pursuant thereto or in connection therewith, and all other
liabilities of Obligor to Lenders including, but not limited to, all post petition interest (collectively called the “Secured Liabilities”). 

 2. Creditor hereby subordinates all security interests, liens, encumbrances and claims which in any way
secure the Creditor Obligations, pursuant to the Security Agreement or otherwise (herein collectively called the “Creditor Collateral”), to all security interests, liens, encumbrances and claims which in any way secure the payment
of the Secured Liabilities, specifically including but not limited to the security interests granted to Agent for its benefit and for the benefit of Lenders in the Loan Agreement, as the same may be modified or amended (herein collectively called
the “Agent Collateral”). Creditor agrees that until the Secured Liabilities are paid in full, Creditor will not in any way, manner or respect, assert or seek to enforce by legal proceedings or other proceedings or actions any of its
liens, mortgages, security interests or other encumbrances on the Creditor Collateral. Creditor agrees that this subordination and the priority established hereby shall apply regardless of the time or order of attachment or perfection of such
security interests, liens, encumbrances or claims or the granting or failure to give notice thereof. 
  
 3. Creditor hereby instructs Obligor not to pay the Creditor Obligations in whole or in part, and Creditor agrees not to accept payment of the Creditor
Obligations, including interest thereon, or any part thereof or seek to enforce against Obligor the Creditor Obligations or Creditor’s security interests, liens, encumbrances or claims on the Creditor Collateral, unless and until the Agent has
notified Creditor, in writing, that the Secured Liabilities have been paid in full. The prohibition on payments provided for in this Section 3 shall be effective regardless of whether such payments are regularly scheduled, due at maturity or
upon demand or due upon acceleration or otherwise. Notwithstanding anything to the contrary contained herein, Obligor may make, and Creditor may accept, all payments made on account of the Creditor Obligations which exist as of the date hereof if no
Default or Event of Default exists and, after giving effect to any such payment to Creditor, Obligor would have a positive cash flow as reflected on the Financials determined on a consolidated basis in accordance with generally accepted accounting
principles consistently applied. 
  
 4. (a) Creditor agrees to
hold in trust for Agent, for its benefit and the benefit of Lenders, and promptly turn over to Agent any sum or sums at any time paid, or received by Creditor in violation of the terms of this Agreement and to reimburse Agent for all costs,
including reasonable attorneys’ fees, incurred by Agent in the course of collecting the sum or sums should Creditor fail to voluntarily turn over same to Agent. In the event of any distribution, division or application, partial or complete,
voluntary or involuntary, by operation of law or otherwise, of all or any part of the assets of Obligor or the proceeds thereof, in whatever form to creditors of 

  

 2 

 
Obligor occurring by reason of the liquidation, dissolution or other winding up of Obligor or by reason of any execution sale, receivership, insolvency or
bankruptcy proceedings or assignments for the benefit of creditors or proceedings for reorganization or readjustment of Obligor or its properties, then and in such event, the Secured Liabilities shall first be paid in full before any payment is made
upon the Creditor Obligations, and any payment or distribution of any kind or character either in cash, property or securities which shall be payable or deliverable upon or in respect of the Creditor Obligations and interest thereon shall be paid or
delivered directly to Agent for application in payment of the amounts then due on the Secured Liabilities until the Secured Liabilities have been paid in full. 
 (b) In order to enable Agent to enforce its rights, for its benefit and for the benefit of Lenders, under the preceding Section 4(a) in any action or proceedings, Agent is hereby irrevocably authorized and
empowered in its discretion to make and present for or on behalf of Creditor such proof of claim or claims against Obligor on account of the Creditor Obligations as Agent may deem expedient and proper; to vote such claims in any such proceedings; to
receive and collect any and all dividends or other payments or disbursements made thereon in whatever form the same may be paid or issued; and to apply same on account of the Secured Liabilities. Creditor agrees to and does hereby assign all such
claims to Agent, and Creditor further agrees to execute such instruments as may be required by Agent to enable it to enforce any and all such claims and collect any and all dividends or other payments or disbursements that may be made on account of
the Creditor Obligations. 
 5. Creditor represents and warrants to Agent that Creditor has not assigned or transferred the Creditor
Obligations or Creditor Collateral, or any interest therein, to any person, firm, association, corporation or party, that Creditor will make no such assignment or transfer and that all agreements, instruments and documents evidencing the Creditor
Obligations and Creditor Collateral, including, without limitation, the CMGI Notes and the Security Agreement, will be endorsed with a proper notice of this Agreement. Creditor shall have the right to assign the Creditor Obligations provided that
any such assignment shall only be made upon prior written consent of Agent, and shall be made expressly subject to the rights of the Agent hereunder conspicuously noted in writing on any such assignment, which assignment shall be in form and
substance acceptable to Agent. Creditor agrees to mark the CMGI Notes with the following legend: 
  

	
	“This note is subordinated to all indebtedness now or hereafter owed by maker to LaSalle Bank National Association, as Agent, as provided in that certain Amended and Restated Intercreditor
(Subordination) Agreement dated October     , 2005.”

 6. Agent is hereby authorized by Creditor to: (a) renew, compromise, extend or otherwise
change the time of payment or any other terms of the Secured Liabilities under the Loan Agreement; (b) exchange, enforce, waive or release any security therefor; (c) apply such security and direct the order or manner of sale thereof in
such manner as the Agent may in its sole discretion 

  

 3 

 
determine; or (d) amend and restate the Loan Agreement, all without notice to Creditor and without affecting the subordination provided by this
Agreement; provided that Agent shall not accelerate the time of payment of the Secured Liabilities unless otherwise permitted by the Loan Agreement or related documents or increase the rate of interest payable thereon or any part thereof other than
as permitted in the Loan Agreement or related documents. 
  
 7.
This Agreement shall continue in full force and effect until (i) Creditor shall receive from Agent notice in writing of its termination after the payment in full of the entire Secured Liabilities and (ii) SalesLink is not indebted in any
manner to any Lender and the Commitments have been terminated. Creditor agrees that it will not challenge the liens and security interests of the Agent for its benefit and the benefit of the Lenders securing payment of the Secured Liabilities and
that as between the Agent, Lenders and Creditor, the terms of this Agreement shall govern even if part or all of the Secured Liabilities or the liens or security interests securing payment thereof are avoided, disallowed, set aside or otherwise
invalidated in any judicial proceeding or otherwise. 
  
 8. All
notices, payments, requests, reports, information and demands which any party may desire or may be required to give or make to any other party shall be given or made upon such party in writing by hand delivery, by facsimile or by the deposit in the
United States mail, postage prepaid, certified or registered addressed as follows: 
  
 To Agent: 
  
 135 South LaSalle
Street 
 Chicago, Illinois 60603 
 Attention: David Bacon 
 Fax No.: (312) 904-0409 
  
 With copies to: 
  
 Ungaretti & Harris LLP 
 3500 Three
First National Plaza 
 Chicago, Illinois 60602 
 Attention: Gary I. Levenstein 
 Fax No.: (312) 977-4405 
  
 To Creditor: 
  
 CMGI, Inc. 
 1100 Winter Street 
 Suite 4600 
 Waltham, MA 02451 
 Attention: Chief Financial Officer 
 Fax No.: (    )     -         
  

 4 

 With copies to: 
  
 BRL Law Group LLC 
 31 St. James Avenue 
 Boston, Massachusetts 02116 
 Attention: Tom Rosedale 
 Fax No.: (617) 399-6930 
  
 Said notice shall be deemed given when delivered, if delivered by hand; when sent with
confirmation of transmission, if sent by facsimile; or three (3) days after deposit in the mail, postage prepaid, if mailed as aforesaid. Creditor hereby agrees that if at any time or times it notifies Obligor that Obligor is in default in
respect of the Creditor Obligations, it shall simultaneously provide notice thereof to Agent. 
  
 9. Creditor irrevocably agrees that subject to Agent’s sole and absolute election, all actions or proceedings in any way, manner or respect, arising out of or from or related to this Agreement, the other
agreements, or any Agent Collateral may be litigated only in the courts having situs within the City of Chicago, State of Illinois. Creditor hereby consents and submits to the jurisdiction of any local, state or federal court located within the City
of Chicago and State of Illinois. Creditor hereby waives any rights it may have to transfer or change venue of any litigation brought against Creditor by Agent in accordance with this paragraph. 
  
 10. This Agreement shall be binding upon the successors and assigns of
Creditor, Obligor and Agent. This Agreement and any existing or future claim of Agent hereunder may be assigned by Agent, in whole or in part, without notice to Creditor. Agent may, without notice, assign this Agreement in whole or in part in
connection with an assignment of all or part of the Loan Agreement or a sale of a participation thereunder. 
  
 11. No amendment to or waiver of any provision of this Agreement nor consent to any departure by Creditor or Obligor herefrom shall in any event be
effective unless the same shall be in writing and signed by Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 12. References herein to Sections are references to Sections of this
Agreement unless otherwise indicated. Capitalized terms not otherwise defined herein shall have the meanings provided in the Loan Agreement. 
  
 13. Wherever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement. 
  

 5 

 14. This Agreement may be executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute one and the same agreement. 
  
 15. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS. THIS AGREEMENT CONSTITUTES THE ENTIRE UNDERSTANDING BETWEEN THE PARTIES HERETO WITH
RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO. 
  
 16. THE UNDERSIGNED HEREBY IRREVOCABLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (i) TO ENFORCE OR DEFEND ANY RIGHTS
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED IN CONNECTION HEREWITH OR (ii) ARISING FROM ANY DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO THIS AGREEMENT, AND AGREE THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 
  
 [signature page attached] 
  

 6 

 IN WITNESS WHEREOF, the undersigned have caused this Amended and Restated Intercreditor
(Subordination) Agreement to be duly executed on the date first above written. 
  

			
	CMGI, INC.
	a Delaware corporation
		
	By:	 	 
	Name:	 	Thomas Oberdorf
	Its:	 	Chief Financial Officer and Treasurer
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 as Agent
and a Lender

		
	By:	 	 
	Name:	 	David Bacon
	Its:	 	Vice President

  

			
	AGREED AND ACKNOWLEDGED BY:
	
	 CITIZENS BANK OF MASSACHUSETTS,
 as a Lender

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

 ACCEPTANCE OF OBLIGOR 
 The undersigned hereby accepts and consents to the foregoing Agreement and agrees to be bound by all of the provisions thereof and to recognize all
priorities and rights granted thereby to LaSalle Bank National Association, as a Lender and as agent for the Lenders, and its successors and assigns and to perform in accordance therewith. 
  

			
	MODUSLINK CORPORATION
	a Delaware corporation
		
	By:	 	 
	Name:	 	Thomas Oberdorf
	Its:	 	Chief Financial Officer and Treasurer

 Amended and Restated Intercreditor (Subordination) Agreement 

 Exhibit F (§ 2.11C)) 
  
 Form of Landlord Waiver 

 LANDLORD’S WAIVER AND CONSENT 
 THIS LANDLORD’S WAIVER AND CONSENT (“Waiver and Consent”) is made and entered into as of
                    , 2005 by and between
                                        
(“Landlord”) and
                                        
(“Tenant”). 
 A. Landlord is the owner of certain real property commonly known as
                                        
(the “Premises”). 
 B. Tenant entered into that certain lease with Landlord dated
                    , as amended by
                                        ,
to lease the Premises (the “Lease”). 
 C. Tenant and other borrowers entered into a Second Amended and Restated Loan and Security
Agreement with LaSalle Bank National Association (“Agent”) and the lenders party thereto, dated October     , 2005 (the “Loan Agreement”), pursuant to which Agent and the other lenders
agreed to make extensions of credit to Tenant and other borrowers and granted to Agent a security interest in and lien upon the general business assets of Tenant and the other borrowers. 
 D. As a condition to making such extensions of credit, Tenant agreed to cause Landlord to enter into this Waiver and Consent. 
 E. Landlord will benefit from this Waiver and Consent as a result of Tenant’s continued tenancy at the Premises. 
 NOW, THEREFORE, in consideration of any financial accommodations extended by Agent to Tenant, and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1. Landlord acknowledges the validity of
Agent’s security interest in the Collateral (as such term is defined in the Loan Agreement) located on the Premises and, until such time as the obligations of Tenant to Agent are indefeasibly paid in full, Landlord hereby subordinates any
interest in the Collateral it may have and agrees not to assert any landlord lien, right of distraint or other claim against the Collateral for any reason, including Collateral consisting of trade fixtures. 
 2. Landlord represents and warrants that: (i) a true and correct copy of the Lease is attached hereto as Exhibit A, (ii) the Lease, as
attached, is in full force and effect, (iii) the Lease has not been modified, changed, altered, assigned, supplemented or amended in any respect and (iv) Landlord is not aware of any existing default by Tenant under the Lease. 

3. Landlord will provide Agent with written notice of any default by Tenant under the Lease (a “Default Notice”). Agent shall have at
least fifteen (15) days following receipt of such Default Notice to cure such default, but Agent shall not be under any obligation to cure any default by Tenant under the Lease. No action by Agent pursuant to this Waiver and Consent shall be
deemed to be an assumption by Agent of any obligation under the Lease and, except as provided in paragraphs 5, 6 and 7 below, Agent shall not have any obligation to Landlord. 

 4. Prior to a termination of the Lease, Agent or its representatives or invitees may enter upon the
Premises at any time without any interference by Landlord to inspect or remove any or all of the Collateral or exercise of its other rights under the Loan Agreement or the Uniform Commercial Code of Illinois (the “UCC”), including,
without limitation, conduct a private sale pursuant to the provisions of paragraph 6 below. 
  
 5. Upon a termination of the Lease, Landlord will permit Agent and its representatives and invitees to occupy and remain on the Premises and exercise its rights under the Loan Agreement or under the UCC; provided,
that (a) such period of occupation (the “Disposition Period”) shall not exceed up to ninety (90) days following receipt by Agent of a Default Notice or, if the Lease has expired by its own terms (absent a default
thereunder), up to thirty (30) days following Agent’s receipt of written notice of such expiration, (b) for the actual period of occupancy by Agent, Agent will pay to Landlord the basic rent due under the Lease pro-rated on a per diem
basis determined on a 30-day month, and shall provide and retain liability and property insurance coverage, electricity and heat to the extent required by the Lease and (c) such amounts paid by Agent to Landlord shall exclude any rent
adjustments, indemnity payments or similar amount for which Tenant remains liable under the Lease for default, holdover status or other similar charges. If any injunction or stay is issued that prohibits Agent form removing the Collateral, the
commencement of the Disposition Period will be deferred until such injunction or stay is lifted or removed. 
  
 6. During any Disposition Period, (a) Agent and its representatives and invitees may inspect, repossess, remove and other wise deal with the
Collateral, and Agent may advertise and conduct private sales of the Collateral at the Premises, in each case without interference by Landlord or liability of Agent to Landlord and (b) Agent shall make the Premises available for inspection by
Landlord and prospective tenants and shall cooperate in Landlord’s reasonable efforts to re-lease the Premises. If Agent conducts a private sale of the Collateral at the Premises, Agent shall use reasonable efforts to notify Landlord first and
to hold such sale in a manner which would not unduly disrupt Landlord’s or any other tenant’s use of the Premises. 
  
 7. Agent shall promptly repair, at Agent’s expense, or reimburse Landlord for any physical damage to the Premises actually caused by the conduct of
such sale and any removal of Collateral by or through Agent (ordinary wear and tear excluded). Agent shall not be liable for any diminution in value of the Premises caused by the absence of Collateral removed, and Agent shall not have any duty or
obligation to remove or dispose of any Collateral left on the Premises by Tenant. 
  
 8. All notices hereunder shall be in writing to the respective parties and the addresses set forth on the signature page or at such other address as the receiving party shall designate in writing. 
  

 -2- 

 9. This Waiver and Consent may be executed in any number of several counterparts, shall be governed and
controlled by, and interpreted under, the internal laws of the State of Illinois, and shall inure to the benefit of Agent and its successors and assigns and shall be binding upon Landlord and its successors and assigns (including any transferees of
the Premises). 
  
 [signature page attached] 
  

 -3- 

 IN WITNESS WHEREOF, this Landlord’s Waiver and Consent is entered into as of the date first set
forth above. 
  

							
	 	 	LANDLORD:
			
	 	 	  	 	 
			
		 	By:	 	 
			
		 	Name:	 	 
			
		 	Title:	 	 
		
		 	AGENT:
		
		 	LASALLE BANK NATIONAL ASSOCIATION
			
	 135 South LaSalle Street
 Chicago, Illinois
60603
 Attention: David Bacon
 Fax:
(312) 904-0409
	 		 	
	 	By:	 	 
			
		 	Name:	 	 
			
		 	Title:	 	 

  

 -4- 

 Exhibit G (§7.2(C)(ii)) 
  
 Form of Financial Condition and Compliance Certificate 
  
 [to be provided by Agent] 

 Exhibit H (§7.2(C)(iv)) 
  
 Form of Borrowing Base Certificate 
  

[to be provided by Agent] 

 Schedule 1.1.1 
  

 Commercial Tort Claims 
  
 None. 

 Schedule 1.1.2 
  

 Eligible Collateral Locations 
  
 8356 Central Avenue 
 Newark, California 94550 
  
 7245 Corporate Center Dr 
 Suite D-E 
 Miami, Florida 33126 
  
 415 Lies Road 
 Carol Stream, Illinois 
  
 343 Lies Road 
 Carol Stream, Illinois 
  
 6112 West 73rd Street 
 Bedford Park, Illinois 60638 
  
 7955 Zionsville Road 
 Indianapolis, Indiana 46268 
  
 1100 Winter Street, Suite 4600 
 Waltham, Massachusetts 02451 
  
 425 Medford Street 
 Charlestown, Massachusetts
02129 
  
 501 Innovation Ave. 
 Morrisville, North Carolina 
  
 409-A Airport Boulevard 
 Suite 200 
 Morrisville, NC 27560 
  
 7205 NW Evergreen Pkwy. 
 Hillsboro, Oregon 97124 
  
 Space Park Distribution Center #8 
 Building J 1001 – 1010 
 Space Park Drive 
 Nashville, Tennessee 

 Crystal Park 
 116 E. Old Settler’s Blvd., Buildings A and B 
 Round Rock, Texas 78664 
  
 500 South 500 West 
 Lindon, Utah 84042 
  
 4640 South 5400
West 
 West Valley City, Utah 
  
 Parque Industrial Tecnológico II 
 Anillo Periferico Sur # 7980 
 Nave 5, Esq. Av. Colon 
 Tlaquepaque, Jalisco 
 C.P. 45600 Mexico 
  
 ModusLink SA de CV 
 Parque Industrial Martel 
 Avenida E #561 
 Entre Av. G y calle Milagro 
 Apodaca, N.L. 
 C.P. 66634 Mexico 

 Schedule 1.1.3 
  

 Existing Permitted Debt 
  
 None. 

 Schedule 1.1.4 
  

 Existing Permitted Liens 
  
 ModusLink 
  
 Liens and encumbrances in favor of CMGI were granted by ModusLink pursuant to that certain Guarantee and Security Agreement dated as of July 31, 2003 by and among CMGI, SalesLink and certain additional parties
thereto, the rights and obligations under which were assigned by SalesLink to ModusLink pursuant to that certain Assignment Agreement and Agreement to Amend and Restate by and among CMGI, SalesLink, ModusLink and certain additional parties thereto
dated as of December 31, 2004. CMGI has filed UCC-1 financing statements to record such Liens and encumbrances on the collateral defined therein and will file amendments to such UCC-1 financing statements to reflect the assignment of such
collateral by SalesLink to ModusLink. 

 Schedule 2.1 
 Initial Revolving Credit Commitments: 
  

				
	Lender	  	Revolving Credit Commitment
	 LaSalle Bank National Association
	  	$	32,083,333.33
	 Citizens Bank of Massachusetts
	  	$	22,916,666.67
		  	 	 
	 Total
	  	$	55,000,000.00
		  	 	 

 Final Revolving Credit Commitments: 
  

				
	Lender	  	Revolving Credit Commitment
	 LaSalle Bank National Association
	  	$	35,000,000.00
	 Citizens Bank of Massachusetts
	  	$	25,000,000.00
		  	 	 
	 Total
	  	$	60,000,000.00
		  	 	 

 Schedule 6.1(B) 
  
 Fictitious Names 
  
 ModusLink Corporation 
  
 “iLogistix” 
 “InSolutions Incorporated” 
 “Lavender Acquisition Corp.” 
 “Lone Star” 
 “MMI” 
 “Modus” 
 “Modus Media” 
 “Modus Media International” 
 “OnDemand Solutions, Inc.” 
 “Pacific Direct Marketing Corp.” 
 “Pacific Link” 
 “Pacific Link International” 
 “PacLink” 
 “SalesLink Corporation” 
 “SalesLink LLC” 
 “SL Supply Chain Services International
Corp.” 

 Schedule 6.1(I) 
  
 Litigation; Indebtedness; Guarantees 
  

Litigation 
  
 None. 
  
 Indebtedness; Guarantees 
  
 ModusLink Corporation has guaranteed the debt of third parties under the following documents: 
  

	 	•	 	 Office Lease between BHX, LLC and Open Channel Solutions, Inc. for premises located at Building #1, 1400 Providence Highway, Norwood, Massachusetts

  

	 	•	 	 Corporate Guaranty, dated February 2, 2000 in connection with the Operating Lease between ABN AMRO Onroerend Goed Lease en Financieringen B.V. and Modus Media
International B.V. for financing and lease of planned construction in Apeldoorn, dated February 4, 2000, as amended 

 Schedule 6.1(K) 
  
 Collateral 
  
 Sun Microsystems, Inc. (“Sun”) has filed UCC financing statements in Delaware and Utah regarding certain inventory of Sun held on various business premises of
ModusLink. While such financing statements name ModusLink as a debtor, the inventory subject to such financing statements is owned by Sun. ModusLink serves merely as the bailee of such property, rather than as the owner of property subject to a Lien
or other encumbrance, and such financing statements were filed to clarify such ownership. 

 Schedule 6.1(R) 
  
 Subsidiaries 
  
 ModusLink Corporation 
  
 Subsidiaries: 
  
 Sol Holdings,
Inc. 
 Sol Services Corporation S.A. de C.V. 
 Modus Media
International, S.A. de C.V. 
 Modus Media International Leinster Unlimited 
 Modus Media International (Ireland) Limited 
 Modus Media International Documentation Services (Ireland) Ltd. 
 Modus Media International Ireland (Holdings) 
 Modus Media International
Dublin 
 ModusLink Kildare 
 ModusLink Services Europe

 Modus Media International Financial Services Ltd 
 Lieboch
Limited 
 ModusLink France SAS 
 Modus Media International Angers
SAS 
 ModusLink B.V. 
 ModusLink Ltd 
 ModusLink Packaging Hungary Limited Liability Company 
 ModusLink Pte Ltd

 ModusLink Solution Services Pte. Ltd. 
 ModusLink (Taiwan) CD
Service Limited 
 ModusLink Software (Shenzhen) Co., Ltd. 
 ModusLink Electronic Technology (Shenzhen) Co., Ltd. 
 ModusLink (Shanghai) Co., Ltd. 
 ModusLink (Kunshan) Co., Ltd. 
 ModusLink (Songjiang) Co., Ltd. 
 ModusLink (Hong Kong) Pte Limited 
 ModusLink (M) Sdn Bhd 
 ModusLink Korea LLC 
 ModusLink Tilburg B.V. 
 Logistix Holdings Europe Ltd. 
 SalesLink Solutions International Ireland Limited (formerly known as Logistix Ireland Ltd.)

 SalesLink International (Singapore) Pte. Ltd. 
 SalesLink
International (Malaysia) Sdn. Bhd. 
 (formerly known as iLogistix Supply Chain Management (M) Sdn. Bhd.) 
 (100% owned by SalesLink International (Singapore) Pte. Ltd.) 
 SalesLink International UK Ltd. 
 SalesLink Hungary Kft. 
 SalesLink China 

 SalesLink LLC (formerly known as “SalesLink Corporation”) 
 SalesLink Mexico Holding Corp. 
 Owns
Equity Interest (50% or less): 
 Modus Media Japan K.K. 
 GMD Korea, Inc. 
 Open Channel Solutions, Inc. 
 Twin Solutions LLC 
 SalesLink LLC (formerly known as “SalesLink Corporation”) 
 Subsidiaries: 
 SalesLink Mexico Holding Corp. 
 SalesLink de Mexico, S. de R.L. de C.V. 
 SalesLink Servicos S. de R.L. de C.V. 

SalesLink Mexico Holding Corp. 
 Owns Equity Interest (50% or
less): 
 SalesLink de Mexico, S. de R.L. de C.V. 
 SalesLink Servicos S. de R.L. de C.V. 

 Schedule 6.1(T) 
  
 Collateral 
  
 Please see Schedule 6.1 (K) above. 

 Schedule 6.1(V) 
  
 Intellectual Property 
  
 ModusLink Corporation 
  

					
	 Trademark

	  	 USPTO Registration Number

	  	 Registration Date

	 MODUSLINK
	  	78/469,055	  	08/17/04
			
	 MMI (and design)
	  	2461359	  	6/19/01
			
	 MMI (and design)
	  	2516520	  	12/11/01
			
	 MODUS MEDIA INTERNATIONAL (and 2- line design)
	  	2413647	  	12/19/00
			
	 MODUS MEDIA INTERNATIONAL (and 2- line design)
	  	2401568	  	11/7/00
			
	 MODUS MEDIA INTERNATIONAL (and 3- line design)
	  	2399426	  	10/31/00
			
	 MODUS MEDIA INTERNATIONAL (and 3- line design)
	  	2401567	  	11/7/00
			
	 InSolutions Incorporated (with logo)
	  	2054299	  	4/22/97
			
	 IS (logo)
	  	2183258	  	8/25/98
			
	 ILOGISTIX
	  	2592251	  	7/9/02
			
	 @PRIORI
	  	2364500	  	7/4/00
			
	 LOGISTIX
	  	1948078	  	1/16/96
			
	 LOGISTIX
	  	1465769	  	11/17/87

 SalesLink LLC (formerly known as “SalesLink Corporation”) 
  

					
	 Trademark

	  	 USPTO Registration Number

	  	 Registration Date

	 SALESLINK
	  	1620344	  	10/30/90

  
 In addition, ModusLink has protected
its name and derivatives thereof in jurisdictions outside of the United States.f10k2008a1ex10ii_amersrgical.htm

     

    
 

    Exhibit
10.2

     

     

    SERVICE
AGREEMENT

     

    between

     

    AMERICAN
SURGICAL ASSISTANTS, INC.

     

    and

     

    PROFESSIONAL
SURGICAL ASSISTANTS, INC.

     

    July
1, 2002

    

     

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

     

    TABLE
OFCONTENTS

     

     

       
RECITALS

     

    I.
SERVICE AGREEMENT

     

    1.1
Definitions.

    1.1-1
Service Fee 1.1-2 ASA Expense 1.1-3 ASA Services L1-4 Provider

    1.1-5
Term

     

    1.2 Appointment and Authority.
1.2-1
Appointment

    1.2-2
Authority

    1.2-3
Referrals

     

    1.3
Covenants and Responsibilities.

    1.3-1
Quality Assurance, Utilization Review, Provider Qualifications 13-2 ASA
Personnel

    A. Providers
and other Personnel

    B. ASA
Services

    C.
Adherence to Professional Standards

    13-3
Confidentiality

    1.3-4
Insurance

    1.3-5
Billing And Collection

     

    1.4 Covenants and Responsibility of
ASA 

    1.4-1 Organization and
Operation

    1.4-2
Confidential and Proprietary Information

     

    1.5
Financial Arrangement

    1.5-1
Service Fee

    A. Amount

    B. Payment

     

    II
TERM AND TERMINATION

     

    2.1
Initial and Renewal Term

    2.2
Terthination

    2.2-1
Legislative, Regulatory, Administrative, or Third Party Payment Change.

    2.2-2
Termination On Notice of Default

    2.23
Compliance

    2.3
Effects of Termination

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    III.
MISCELLANEOUS.

     

    3.1
Notices

    3.2
Governing Law.

    3.3
Assignment

    3.4
Waiver of Breach

    3.5
Enforcement

    3.6
Gender and Number

    3.7
Additional Assurances

    3.8
Consents, Approvals, and Exercise of Discretion. 

    3.9 Force
Majeure

    3.10
Severability

    3.11
Divisions and Headings

    3.12
Amendments and Agreement Execution 

    3.13
Arbitration 

    3.14
Entire Agreement

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    SERVICE
AGREEMENT

     

     

    THIS
SERVICE AGREEMENT ("Services Agreement") is made and entered into effective as
of the 1st day of July 1, 2002 ("Effective Date"), by and between American
Surgical Assistants, Inc., a Texas limited liability partnership (" ASA"), and
Professional Surgical Assistants, Inc., a Texas
Corporation ("PSAS").

     

    RECITALS:

     

    This
Service Agreement is made with reference to the following facts:

     

    A. Whereas,
ASA is formed for and engaged in the provision of non physician surgical
assistant services and staffing in the State of Texas, and wherever else ASA may
now or in the future be authorized to do business, and

     

    B. Whereas,
PSAS oper-ates as a
organization providing scheduling of surgical assistant services and staffing to
hospitals; and as a result
has acquired certain expertise and know how, and

     

    C. Whereas,
ASA desires to focus its energies, expertise, and time on the actual delivery
ofsurgical assistant services and staffing to hospitals and to expand the number
of hospitals being provided this service by ASA. To accomplish that goal, ASA
desires to delegate some of the management business aspects of such services to
an entity possessing knowledge and experience in providing those services,
and

     

    D. Whereas,
PSAS provides these scheduling services necessary to aide ASA, now and •
therefore and in consideration of the promises and agreements contained herein
and other good and valuable consideration, the receipt and adequacy of which are
hereby forever acknowledged and confessed, the parties agree as
follows:

     

    1.
CONSULTING SERVICES PROVIDED

     

    1:1 DEFINITIONS.

    For the
purposes of this Agreement,
the following terms have the following meanings unless otherwise
clearly required by the context in which the term is used.

     

    1.11
Service
Fee.  The term " Service Fee" means the weekly fee, established
pursuant to this Agreement, paid by ASA to PSAS to provide weekly compensation
to PSAS.

     

    1.1-2
ASA Expense.
The term" ASA Expense" means an expense or cost that is incurred by PSAS
or ASA and for which ASA is financially liable.

     

    1.1-3
ASA Services.
The term "ASA Services" means surgical assistant services and
staffing.

     

    1.1-4
Provider. The term "Provider" means
the professionals who are independent contractors, employees or otherwise
retained by or associated with ASA to provide non physician surgical assistant
services and staffing.

     

    1.1-5
means the initial and any renewal periods of duration of this
Agreement.

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

     

    APPOINTMENT AND
AUTHORITY

     

    1.2-1
Appointment. ASA appoints PSAS as an
agent for the Services indicated herein, except as otherwise specifically agreed
in writing by ASA and PSAS. PSAS accepts the appointment, subject at all times
to the provisions of this Service Agreement.

     

    1.2-2
Authority

     

    A.
Consistent with the provisions of-this
Services Agreement PSAS shall have the responsibility to provide specified
services for ASA, including, without limitation, the provision of or arranging
for, at ASA' s expense, quality assurance and utilization programs and review,
recruiting, training, monitoring, and scheduling of providers, and insuring ASA
is in compliance with applicable

    standards.

     

    1.2.3
Referrals.
PSAS and ASA agree that the benefits to ASA hereunder do not require, are
not payment for, and are in no way contingent upon, the referral of or any other
arrangement for the provision of any item or service offered by
PSAS.

     

    COVENANTS AND
RESPONSIBILITIES

     

    1.3-1
Quality Assurance, Utilization
Review, Provider Qualifications.  PSAS shall assist ASA in the
establishment and implementation of procedures to ensure the consistency and
quality of Services provided by ASA, and shall provide daily onsite support for
ASA's quality-assurance and utilization-review and other programs that may be
required under ASA's contracts with hospitals.

     

    PSAS
agrees to ensure that each surgical assistant providing services through ASA
shall have and maintain certain specified qualifications and certifications, and
provide evidence of same. PSAS's failure to adhere to this standard will be
grounds for termination of this Agreement.

     

    1.3-2
ASA Personnel. PSAS shall be responsible
for recruiting, training, supervising and scheduling all Providers who are
either employed or contract with ASA to provide ASA Services,

     

    A. Providers and other Personnel. PSAS
shall retain, at the expense of ASA, the number of Providers and healthcare
personnel sufficient in the reasonable business judgment of PSAS, that are
necessary and appropriate for the provision of ASA Services, each of whom shall
be bound by and subject to applicable provisions of this Agreement. Each
Provider shall meet the minimum standards set forth in Section 1.3-2-C below and
enter into and maintain with ASA an employment contract or written independent
contractor agreement. ASA shall be responsible for paying the salary for
employees or compensation for contracted or affiliated Providers and other
personnel, and any other withholding required by applicable law. PSAS shall, on
behalf of ASA, establish the compensation levels with respect to such
individuals in accordance with the written agreement between ASA and each
Provider.

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
 

    B.  ASA
Services.  PSAS shall be responsible for scheduling Providers
in accordance with the terms set by ASA and Service Agreements between ASA and
hospitals. PSAS shall cause all Providers to exert their best efforts to develop
and promote ASA in a manner designed to ensure that ASA is able to serve the
diverse needs of the healthcare community.

     

    C. Adherence
to Professional Standards. PSAS will insure that each ASA Provider complies
with, is controlled and governed by, and otherwise provides ASA Services in
accordance with applicable federal, State, and municipal laws, rules,
regulations, ordinances, and orders, and the ethics
and standards of care of the medical ccorrmiunity wherein ASA provides
services.

     

    1.3-3
Confidentiality. PSAS agrees to keep
confidential and not to take, retain, use, or disclose to others during the term
of ON Agreement
except as expressly consented to in writing by ASA or by law, any secrets or
confidential technology, proprietary information, patient lists or records,
documents pertaining to AS A' s business or financial conditions, trade secrets
of ASA, or any Matter or thing ascertained by PSAS through PSAS's relationship
with ASA, the use or disclosure of which matter or thing might reasonably be
construed to be contrary to the best interests of ASA. PSAS further agrees that
upon termination or expiration of this Agreement, PSAS and each of its members,
partners, employees, contractors, or agents will neither take nor retain,
without prior written authorization from ASA, any papers, patient lists, fee
books, illes,
or other documents or copies thereof or other confidential information of
any kind belonging to ASA or pertaining to ASA's business, financial condition,
or products. Without limiting other possible remedies to ASA for the breach of
this covenant, PSAS agrees that injunctive or other equitable relief shall be
available to enforce this covenant regarding confidentiality of information,
such relief to be without necessity of posting bond, cash, or otherwise. PSAS
further agrees that if any restriction contained in this Section is held by any
court to be unenforceable or unreasonable, a lesser restriction shall be
enforced in its place and remaining restrictions contained herein shall be
enforced independently of each other.

     

    1.3-4
PSAS's Insurance. Throughout the Term,
PSAS shall obtain and maintain with commercial carriers, through self-insurance,
or by some combination thereof, appropriate comprehensive general liability
insurance covering PSAS, in such amounts, on such basis, and upon such terms and
conditions as PSAS deems appropriate. Upon the request of ASA, PSAS shall
provide ASA with a certificate evidencing such insurance coverage.

     

    1.3-5 Billing and Collection. During the
term of this Agreement PSAS will not bill for professional services rendered by
ASA and employees of ASA. It being understood that all billings for professional
services rendered by ASA will be performed by PHBS under its Administrative
Services Agreement with ASA.

     

    1.4
COVENANTS AND
RESPONSIBILITY OF ASA

     

    1.4-1
Organization
and Operation. ASA, as a continuing condition of PSAS's obligations under
this Agreement, shall at all times during the term be and remain legally
organized and operated to provide ASA Services in a
manner consistent with all applicable state and federal laws.

     

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    
 

    1.4-2
Confidential
and Proprietary
Information. ASA acknowledges the confidentiality of its relationship
with PSAS and of any confidential information of which it may learn or obtain
during the Term. of this Agreement ASA agrees to keep confidential and not to
take, retain, use, or disclose to others during the term of this Agreement,
except as expressly consented in writing by PSAS or by law, any secrets or
confidential technology, proprietary information, strategic plans, patient lists
or records, documents pertaining to PSAS's business or financial conditions
(including the terms of this Agreement), trade secrets of PSAS, or any matter or
thing ascertained by ASA through ASA' s relationship with PSAS, the use or
disclOsure of which matter or thing might reasonably be construed to be contrary
to the best interests or trade secrets of PSAS. ASA further agree that upon.
termination or expiration of this Agreement, ASA and each and every of its
members, partners, employees, contractors, or agents will neither take nor
retain, without prior written authorization fiom
PSAS, any papers, patient lists, fee books, files, or other documents or
copies thereof or other confidential information of any kind belonging to PSAS
or pertaining to PSAS's business, sales, financial condition, or products.
Without limiting other possible remedies to PSAS for the breach of this
covenant, ASA agree that injunctive or other equitable relief shall be available
to enforce this covenant regarding confidentiality of information, such relief
to be without necessity of posting bond, cash, or otherwise. ASA further agree
that if any restriction contained in this Section is held by any court to be
unenforceable or unreasonable, a lesser restriction shall be 'enforced in its
place and remaining restrictions contained herein shall be enforced
independently of each other.

     

    1.5 FINANCIAL
ARRANGEMENT

     

    1.5-1
Service
Fee. Fee an amount equal to the following: 

     

    PSAS
shall receive Fee an amount equal to the following:

     

    A.   Amount of
Service Fee: A annual fee of 5260,000.00 payable at $5,000.00 per week.
PSAS will be compensated for services performed by PSAS during the term of this
agreement. This fee shall be paid every Friday

     

    B.   Additional
Fees due to PSAS:. Additionally, PSAS and/or its representatives or
assignees shall'receive the following:

     

    1.5.1-B.1
Automobile allowance sufficient to cover the purchase or lease price of an
automobile chosen by PSAS including but is not limited to the purchase price,
daily maintenance expenses, fuel expense, insurance expenses and premiums and
all repairs,

    1,5,1-B.2
life insurance on the representative of PSAS in the amount of $5,000,000.00
payable to a beneficiary chosen and assigned by PSAS.

    1.5.1-13.3
Health insurance coverage with ASA reimbursing PSAS for any portions thereof
that are deemed not covered by the insurance carrier.

    I,5:1-B.4
Disability insurance in the amount of $10,000.00 per month for a minimum of five
years following any disability that lasts more than 90 days.

    1.5,1-B,5
An expense account in the amount of $10,000.00 per month.

    1.5.1-B.6
A buy-out, one-time compensation equal to the total of the remaining fees
payable to PSAS and the time this Agreement is terminated, and a termination
Severance pay of $3,000,000.00 payable to PSAS at the time of
termination.

    1.5.1-B.7
An option to purchase 5% of any shares issued by ASA during the term of this
contract at a discounted price equal to 25% of the price recorded at the close
of trading on the day such issue is authorized by ASA.

     

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    II.
TERM AND
TERMINATION

     

    2.1 INITIAL TERM AND RENEWAL TERM. The
Term of this Agreement shall be for an
initial period of three (3) years after the Effective Date of this Agreement and
shall be automatically renewed for any successive period, provided that neither
PSAS nor ASA shall have given notice of termination of this Agreement sixty (60)
days before the end of the initial term or any renewal term, or unless otherwise
terminated in accordance with this Agreement.

     

    2.2 TERMINATION

    2.2-1
Administrative or Third-Pa Payment Changes. If
there shall be a change in the Medicare or Medicaid laws, regulations or general
instructions, the adoption of new legislation, or regulatory body interpretation
any of which shall make this Agreement unlawful, the parties shall -immediately
propose a new arrangement or basis for compensation for the services furnished
pursuant to this Agreement which conforms to such new legislation or regulation
but otherwise contains substantially the same business terms as possible. If
PSAS and ASA are unable to timely (in recognition of the applicable laws) agree
upon an arrangement, this Agreement shall terminate immediately.

     

    2.2-2
Termination On Notice
of Default If either party shall give notice to the other that the other
party has substantially defaulted in the performance of any other obligation
under this Agreement, and the default shall not have been cured within thirty
(30) calendar days following the giving of the notice, the party giving notice
shall have the right to terminate this Agreement.

     

    2.2-3 Compliance With All Laws. ASA
shall have the right to terminate this Agreement if at any time PSAS, while
performing its responsibilities under this Services Agreement, does not comply
with all laws, regulations, government orders, regulatory or judicial reviews
and the like that do now or shall in the future exist and apply
to ASA or the business of ASA.

     

    2.3 EFFECTS OF TERMINATION. Upon
termination of this Agreement, as herein above provided, neither party shall
have any further obligations under this Agreement except for (i) 'obligations
accruing prior to the date of termination, including, without limitation,
payment of the Services Fee relating to services provided prior to the
termination of this Agreement and (ii) obligations, promises, or covenants set
forth in this Agreement that are expressly made to extend beyond the effect,
including, without limitation, indemnities, and confidentiality, provisions,
which provisions shall survive the expiration or termination of this Agreement.
Upon the expiration or termination of this Agreement for any reason or cause
whatsoever, PSAS shall surrender to ASA all books and records pertaining to
ASA's business.

     

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    
 

     

    III.
MISCELLANEOUS.

     

    3.1 NOTICES. Any notice,
demand, or communication required, permitted, or desired to be given under this
Agreement shall be deemed effectively given when in writing and
personally delivered or mailed by prepaid certified or registered. mail, return
receipt requested, addressed as follows;

     

    ASA:

     

    American
Surgical Assistants, Inc.10039 Bissonnet St. Suite 250 Houston, Texas
77036

     

    PSAS:

     

    Professional
Surgical Assistants, Inc. P.O. BOX 1172, Alief Texas 77411

     

    or to
another address, or to the attention of another person or officer, that either
party may designate by written notice.

     

    3.2 GOVERNING LAW. This
Agreement shall be governed by the laws of the State of Texas and is performable
and shall be enforceable in Harris County, Texas. The federal and state courts
of Harris County, Texas, shall be the exclusive courts of jurisdiction and venue
for any litigation, special proceeding, or other proceeding as between the
parties that may be brought in connection with or by reason of, or arise out of,
this Agreement.

     

    3.3 ASSIGNMENT. Neither
party may assign this Agreement without the prior written consent of the other
party.

     

    3.4 WAIVER OF BREACH. The waiver by
either party of a breach or violation of any provision of this Agreement shall
not operate as or be construed to constitute, a waiver of any subsequent breach
of the same or another provision.

     

    3.5
ENFORCEMENT.  If either
party resorts to legal action to enforce or interpret any provision of this
Agreement, the prevailing party shall be entitled to recover the costs and
expenses of the action, including, without limitation, reasonable attorneys'
fees.

     

    3.6 GENDER AND NUMBER. Whenever the
context of this Agreement requires, the gender of all words shell include the
masculine, feminine, and neuter, and the number of all words shall include the
singular and plural.

     

    3.7 ADDITIONAL
ASSURANCES.  Except as may be specifically provided in
this Agreement to the contrary, the provisions of this Agreement shall be
self-operative and shall not require further agreement by the parties; provided,
however, at the request of either party, the other party shall execute any
additional instruments and take any additional acts that are reasonable and that
the requesting party may deem necessary to effectuate this
Agreement.

     

    3.8
CONSENTS. APPROVALS. AND EXERCISE OF
DISCRETION. Whenever this Agreement requires any consent or
approval to be given by either party or either party must or easonably

    
       

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      
        may
exercise discretion, the parties agree that the consent or approval shall not be
umeasonably withheld or delayed and that the discretion shall be reasonably
exercised.

         

        3.9 FORCE MAJEURE.
Neither party shall be liable or deemed to be in default for any delay or
failure in performance under this Agreement or other interruption of services
deemed to result, directly or indirectly, from acts of God, civil or military
authority, acts of public enemy, war, accidents, fires, explosions, earthquakes,
floods, failure of transportation, strikes or other work interruptions, by
either party’s employees or any other similar cause beyond the reasonable
control of either party unless the delay or failure in performance is expressly
addressed elsewhere in this Agreement. Not withstanding the foregoing, no such
event or circumstance set forth in this Section 3.9 shall ever excuse the
non-payment of any sum of money due from one party hereto to the other pursuant
to the terms of this Agreement.

         

        3.10
SEVERABILITY.
The parties have negotiated and prepared the terms of this Agreement in
good faith and with the intent that every te~ covenant, and condition be binding
upon and inure to the benefit of the respective parties. Accordingly, if anyone
or more of the terms, provisions, promises, covenants, or conditions of this
Agreement or the application thereof to any, person or circumstance shall be
adjudged to any extent invalid, unenforceable, void, or voidable for any reason
whatsoever by a court of competent jurisdiction, that provision shall be as
narrowly construed as possible, and all the remaining terms, provisions,
promises, covenants, and conditions of this Agreement or their application to
other persons or circumstances shall not be affected thereby and shall be valid
and enforceable to the fullest extent permitted by law. To the extent this
Agreement is in violation of applicable law, then the parties agree to negotiate
in good faith to amend the Agreement, to the extent possible consistent with its
purposes, to conform to applicable law.

         

        3.11
DIVISIONS AND
HEADINGS. The divisions of this Agreement into articles, sections, and
subsections and the use of captions and headings in connection therewith is
solely for convenience and shall not affect in any way the meaning or
interpretation of this Agreement.

         

        3.12
AMENDMENTS AND
AGREEMENT EXECUTION. This Agreement and its amendments, if any, shall be
in writing and may be executed in multiple copies on behalf of the
parties.

         

        3.13
ARBITRATION.
The parties agree to use good faith negotiation to resolve any dispute,
claim, or controversy that may arise under or relate to this Agreement or to a
breach of the this Agreement In the event that the parties are not able to
resolve any dispute, claim, or controversy by negotiation, any such dispute,
claim, or controversy shall be settled by binding arbitration which shall be
conducted in Houston, Texas, in accordance with the American Health Lawyers
Association Alternative Dispute Resolution Service Rules of Procedure for
Arbitration. Judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof.

         

        3.14
ENTIRE AGREEMENT.
With respect to the subject matter of this Agreement, this Agreement
supersedes any and all previous contracts and constitutes the entire agreement
between the parties. Neither party shall be entitled to benefits other than
those specified in this

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        Agreement.
No prior oral statements or contemporaneous negotiations or understandings or
prior written material not specifically incorporated in this
Agreement

        shall be
of any force and effect, and no changes in or additions to this Agreement shall
be recognized unless incorporated by amendment as provided in this Agreement,
such amendment(s) to become effective on the date stipulated in the
amendment(s). The parties specifically acknowledge that, in entering into and
executing this Agreement, the parties rely solely upon the representations and
agreements in this Agreement and upon no others.

         

        IN
WITNESS WHEREOF, ASA and PSAS have caused this Agreement to be executed by their
duly authorized representatives, all as of the day and year first above
written.

         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	

                                  ASA:

                                	AMERICAN
      SURGICAL ASSISTANTS, INC	 
	 	 	 	
                                  MARGARET
      CRUZ

                                
	
                                   

                                	
                                  By:
      

                                	/s/ Zak
      W. Elgamal	
                                  MY
      COMMISSION EXPIRES

                                
	 	Title:	President 	
                                  OCTOBER
      24, 2007

                                
	 	 	 	 
	 	 	 	 
	And:	By:	/s/ Jaime
      Olmo	
                                  MARGARET
      CRUZ

                                
	 	Title:	V.P	
                                  MY
      COMMISSION EXPIRES

                                
	 	 	 	
                                  OCTOBER
      24, 2007

                                
	 	 	 	 
	PSAS:	PROFESSIONAL
      SURGICAL ASSISTANTS, INC	 
	 	 	 	 
	 	By:	/s/ Jaime
      Olmo	
                                  MARGARET
      CRUZ

                                
	 	Title:	V.
      President	
                                  MY
      COMMISSION EXPIRES

                                
	 	 	 	
                                  OCTOBER
      24, 2007

                                
	 	 	 	 
	CSAS:	AS
      AN AFFECTED PARTY ACKNOWLEDGMENT OF THIS AGREEMENT
	 	 	 	 
	 	
                                  CERTIFIED
      SURGEON ASSISTANT SERVICES, INC.

                                	 
	 	 	 	 
	 	By:	/s/
      Zak W. Elgamal	
                                  MARGARET
      CRUZ

                                
	 	Title:	Presieent	
                                  MY
      COMMISSION EXPIRES

                                
	 	 	 	
                                  OCTOBER
      24,
2007

                                

                        

                      

                    

                  

                

              

            

          

        

    

     

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
    

     

     

     

    Agreement

    dated

    May
1,

    2006

     

     

     

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

     

     

    AGREEMENT
RENEWAL

     

     

    This is
an Agreement between American Surgical Assistants, Inc., of 10039 Bissonnet
Suite 250, Houston, Texas, 77036, hereby referred to as ASA, and Jaime Olmo Jr. of 110903 Ashland Bridge Lane, Sugar Land, Texas 77478, SS#
###-##-#### hereby referred to as "Assistant'.

     

    1. Assistant
agrees to provide Surgical Assistant services, including covering call on
weekdays, weekends and holidays as instructed by ASA under the following
conditions:

     

    1.
Term of Agreement:

     

    Subject
to the provisions of termination set forth below, this Agreement will begin on
September 1, 1999, for an initial period of five years. This Agreement shall be
renewed automatically for equal periods, on the day of the anniversary of the
Assistant's initial date of hire unless either party notifies the other of
his/her intent to terminate the Agreement, in writing, with a thirty-day advance
notice.

     

    2.
Compensation:

     

    Under the
terms of this Agreement the Assistant is an employee of ASA and shall be
compensated according to the following schedule:

     

    
      	
              A.  

            	
              The
      annual compensation of One Hundred and Thirty TwoThousand Dollars
      ($132,000.00) payable in two equal semi-monthly payments of
      $5500.00. Assistant agrees to maintain a daily work coverage schedule of
      Monday through Friday. This compensation applies to services rendered
      between the hours of 7:00 AM and 4:00 PM
      Monday through Friday, regardless of the time of day or total hours
      needed to complete these assignments. An additional payment of One hundred
      Dollars 01100.00) per hour will be paid to the Assistant for overtime
      (over 40 hours per week).

            

    

    
      	
              B.  

            	 

    

    
      	
               
      

            	
              C.
      Should any changes in federal or state reimbursement laws or regulations
      occur which affect third party reimbursement during the term of this
      Agreement, ASA may request renegotiation of any applicable terms of this
      Agreement by a written notice to the Assistant. In the event no new
      Agreement has been reached within sixty days of such renegotiation notice,
      this Agreement will be automatically terminated within an additional
      thirty days without further notice.

            

    

     

    3.
Duties, Covenants and Responsibilities:

     

    
      	
              A.  

            	
              ASA
      hires the Assistant as a Licensed Surgical Assistant, L.S.A. and/or
      Certified Surgical Assistant, C.S.A. The duties of the job are detailed in
      the attached job description which Is part of this Agreement. ASA reserves
      the right to revise and update the jab description periodically or
      whenever deemed necessary. The Assistant will devote full attention and
      energies to the business of ASA as described in the attached job
      description. Covering Call is an essential part of the job; Improper
      handling of Call responsibilities will be grounds for immediate dismissal
      without recourse.

            

    

     

    
      	
              B.  

            	
              Assistant
      is an employee of ASA, he/she remains responsible for all legal and tax
      consequences of his/her compensation. The Assistant acknowledges his/her
      familiarity with the manner under which assignments are made, he/she
      agrees that the assignment of duties is strictly under the guidelines set
      forth by ASA and are made to provide the suitable Assistant for the jab
      and are not based on any personal preferences, there is no set minimum of
      number of hours or number of cases assigned to each Assistant. Surgeons'
      preference and other technical considerations may affect the number of
      hours and/or cases allocated to each
Assistant.

            

    

     

    
      	
               
      C.

            	
              Payment
      will be made to the Assistant on the fifteenth and the thirtieth days of
      the month for cases done in the two work weeks prior to the eighth and the
      twenty third days of the month
respectively.

            

    

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    4.
Confidentiality and Non-Competition:

     

    Assistant
agrees that during the term of this Agreement and the following two years after
termination there of, not to reveal to, discuss with or divulge to any person or
persons or entitles any proprietary documents, copies of documents, trade
secrets, confidential Information, patient information, patient medical records
and/or copies there of, details of procedures, diagnosis, photographs or any
information regarding ASA and/or it's patients or clients, The Assistant shall
not directly or indirectly offer his/her services as described in the attached
job description to any of ASA's client institutions or client surgeons, or
engage in doing business within an extended radius of Ten (10) Miles from the
present address of ASA at 10039 Bissonnet Street, Suite 250, Houston, Texas
77036-7852. This covenant shall remain in force for the duration of this
Agreement and shall remain in full force far a period of Two Years from date of
termination of Agreement.

     

    The
Assistant acknowledges his/her familiarity of and responsibility to abide by all
HIPAA (Health information Portability and Accountability Act) regulations
pertinent to surgical assisting and agrees to be in full compliance with HIPAA
regulations at all times. The Assistant also acknowledges his/her familiarity of
and responsibility to abide by all JCAHO (Joint Commission Accreditation of
Hospital Organization) regulations pertinent to surgical assisting, to include
the National Patient Safety Goals, and agrees to be in full compliance with
JCAHO regulations at all times,

     

    In the
event of any breach, ASA shall be entitled to full injunctive relief without
need to post bond, which rights shall be cumulative with and not necessarily
successive or exclusive of any other legal rights. This Agreement shall be
binding and inure to the benefit of the parties, their successors, assignees and
representatives. Upon breach the Assistant shall be responsible for all
reasonable attorneys' fees and costs incurred in the enforcement of this
Agreement. Assistant agrees not to contract with or offer his/her services to
any of ASA's client institutions or client surgeons under any circumstances
other than the terms of this Agreement until a period of One Year has passed
from the date he or she is no longer affiliated with ASA.

     

    Assistant
agrees to provide ASA with the following documentation and items at the time of
execution of this Agreement and agrees to provide ASA current documentation
throughout the terms of this Agreement

     

    1.All
documentation required by law far verification of the Assistant's immigration
status or US Citizenship,
and eligibility for gainful employment in the U.S.A.

    2. Texas
Surgical Assistant Permit (license) with current registration and in good
standing.

    3. Proof of
current NSAA or ABSA certification and/or any required license or
registration.

    4. Proof of
current professional liability insurance, with limits acceptable to ASA and its
Clients

    5. Proof
of current CPR certification.

    6. Provide
his/her own pager with digital capability, unless provided through
ASA.

     

    The
Assistant acknowledges that he/she shall provide the services of Surgical
Assistant under the direct supervision and instruction of the operating
physician(s) and within the assignments relayed by ASA and communicated by the
operating physician(s) and that at all times he/she shall act within the scope
of his/her license and under the rules and regulations governing the standards
of conduct and patient care in the clients' facility as relayed to him/her by
the Operating Room Supervisor or his/her representative.

     

    Assistant
acknowledges that all receivables generated from charges for services rendered
by Assistant are the property of ASA. Assistant also acknowledges the receipt of
compensation under this Agreement by Assistant is considered full payment for
such services.

     

    Breach of
any of these conditions and limitations, and/or improper conduct will be grounds
for immediate dismissal without recourse.

     

    III.
Assistant agrees to provide ASA with the front sheet of the patient's chart and
other documentation, as Instructed, within Twenty Four Hours from the
performance of the procedure, no documents or photocopies of any documentation
shall be retained by the Assistant except for the pink copy of
the "Physicians
Order for Surgical Assistant Services" form.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    IV. Scheduling
cases for Assistants will be arranged by calling the Assistant within a
reasonable time or as soon as the case Is
scheduled with the client Institution, At all times the Assistant ON CALL
shall remain available for emergency cases. The response time will be as prompt
as possible; however a response time of Thirty Minutes is required to be adhered
to whenever it is safely possible.

    
V. All
rights, powers and remedies granted under any term of this Agreement are In
addition to, and not in limitation of any rights, powers or remedies which are
granted under any other terms of this Agreement, at common law, in equity, by
statute or otherwise, and all may be exercised separately or concurrently, in
such order and as often as deemed necessary by either party. No delay or
omission by either party to exercise any right, power or remedy shall impair
such right, power or remedy or be construed as waiver of any breach or default
hereunder and shall not constitute any waiver of future or subsequent breach or
default.

     

    VI. This
Agreement constitutes the entirety of the Agreement between the parties with
respect to the subject matter thereof. This Agreement supersedes any verbal or
written Agreements prior to the date of this Agreement, Any provision of this
Agreement that is held to be unenforceable for any reason shall not in any way
shape or manner affect the validity of the remainder of this Agreement.
Amendments and appendices or modifications to any of the terms of this Agreement
shall not be valid unless executed in writing and signed by both
parties.

     

    VII. The laws
of the State of Texas are the laws governing this Agreement and all related
matters.

     

    The
signatory hereto does hereby represent individually and on behalf of the
respective party whose name Is this Agreement Is being executed for whom the
signatory hereto states that he/she is a duly authorized agent of such party and
is authorized to execute the Agreement on its behalf.

     

    ASA
address is:

     

    American
Surgical Assistants, Inc, 

    10039
Bissonnet Street, Suite 250 

    Houston,
Texas 77036-7852

     

    Assistant's
address is:

     

    10903 Ashland Bridge
Lane, 

    Sugar
Land,
Texas
774713,

     

     

    For
ASA:                                                                                            Assistant

     

    Zak
Elgamal & Jaime Olmo
Jr.                                                          Jaime
Olmo, Jr.

     

    /s/
Zak Elgamal & /s/
Jaime Olmo
Jr.                                         
   /s/ Jaime
Olmo Jr. 

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
    

    

     

    Agreement

     

    dated

    November
17,

    2006

     

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    
 

     

    ADDENDUM
TO SERVICE/CONSULTANT AGREEMENT

     

    BETWEEN

     

    "ASA,
INC."

     

    AND

     

    "PROFESSIONAL
SURGICAL ASSISTANTS, INC. and JAI1V1E OLMO, Jr."

     

    November
17, 2006

     

    Effective
the Payroll due on
November 17, 2006, this addendum replaces Article (1.4) of the
Service/Consulting Agreement between "ASA, Inc." and "Professional Surgical
Assistants, Inc. and Jaime Olmo, Jr.". The annual payment due to Professional
Surgical Assistants shall
be payable as follows:

     

    
      	
              1.  

            	
              A
      payment of $10,000.00 for expenses shall be made once a month to
      Professional Surgical Assistants, Inc., this
      payment is due on the fifteenth day of the month unless it is a
      weekend, then payment vvillbe made on the immediately following work
      day.

            

    

     

    
      	
              2.  

            	
              A
      payment of $1,000.00 for automobile allowance shall be made once a month
      to Professional Surgical Assistants, Inc., this payment is due on the
      fifteenth day of the month unless it is a weekend, then payment will be
      made on the immediately following work
day.

            

    

     

    
      	
              3.  

            	
              A
      fee of ($260,000.00) shall be added to the payroll check of Jaime Olmo Jr.
      in Twenty Six equal Payments due with the regular payroll check due on
      every other Friday effective the Payroll of November 17, 2006. this shall
      continue until the expiration of the Service/Consultant Agreement on
      November 20, 2010 unless the Agreement is
  renewed.

            

    

     

    
      	
              4.  

            	
              All
      other covenants of the Service/Consultant Agreement shall remain in effect
      until the expiration or termination
thereof.

            

    

    
      	 
      

    

     

     

    
      
        	
                For Professional
      Surgical Assistants, Inc. 

                  Jaime Olmo, Jr.

                   

                  /s/
      Jaime Olmo, Jr.

                

              	
                APPEARED
      BEFORE ME ON 

                NOVEMBER
      17, 2006

                
                  Jaime
      Olmo Jr. and,

                  Zak
      Elgamal

                  Margaret Cruz,
      Notary Public

                

              
	 	 
	 	 
	
                For Jaime Olmo,
      Jr.

                Jaime
      Olmo, Jr.

                 

                /s/
      Jaime Olmo, Jr.

              	 

                MARGARET
      CRUZ

                MY
      COMMISSION EXPIRES 

                OCTOBER
      24, 2007

              
	 	 
	 	 
	
                For
      ASA, Inc.

                Zak
      W. Elgamal and Jaime Olmo, Jr.

                 

                /s/
      Zak Elgamal & /s/
      Jaime Olmo Jr.   

              	Margaret Cruz

      

    

     

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    RENEWAL
OF SERVICE AGREEMENT

     

    This
addendum ("Renewal of Service Agreement') is made and entered into effective the
1st day ()fluty I, 2005 ("Effective Date"), by and between American Surgical
Assistants, Inc., a Texas corporation (" ASA"), and Professional Surgical
Assistants, Inc., a Texas corporation ("PSAS"),

     

    RECITALS:

     

    This is a
renewal ofthe Service Agreementinto on July I, 2002 with the following
modifications: 

     

    Item: I.
CONSULTING SERVICES PROVIDED: 1.5.1-11.3 is
added:

     

    I.5.1-B.8
EFFECTS OF TERMINATION ON
OWNERSHIP OF STOCK.: Termination of this Agreement
shall not affect in
anyway the ownership and or rights of ownership by PSAS of shares in ASA
or any of its assignees or successors.

     

    Item: II
TERM
TERMINATION:
2.1 INITIAL TERM AND RENEWAL TERM: Shall be changed to lead
as follows:

     

    Item
II. TERM AND
TERMINATION: 2.1 INITIAL TERM AND RENEWAL TERM: The term of the Agreement
shall be FIVE years from the date of this renewal, to be automatically renewed
for equal teems unless either party mortifies the other, in writing, within
sixty (60)
days ofthe desire not to renew this Agreement.

     

    All other
teams and conditions of the renewed Agreement shall remain in farce without
modification.

     

    IN
WITNESS WHEREOF,
ASA andFSAS have caused this Agreement to be executed by their duly
authorized representatives, all as of the day and year first above
written.

     

     

    
      
        
          	
                  AMERICAN SURGICAL
      ASSISTANTS, INC.

                	 
	 	 
	By: /s/
      Zak Elgamal 	By: /s/
      Jaime Olmo Jr.
	 	 
	Title	Title
	 	 

        

      

    

     

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	PSAS:	
                                    PROFESSIONAL
      SURGICAL ASSISTANTS, INC.

                                  
	 	 
	 	By: /s/ Jaime Olmo
      Jr.
	 	 
	 	Title: V.
      President
	 	 
	 	 
	CSAS:	AS AN AFFECTED PARTY
      ACKNOWLEDGMENT OF THIS AGREEMENT
	 	 
	 	
                                    CERTIFIED
      SURGEON ASSISTANT SERVICES, INC.

                                  
	 	 
	 	By: /s/
      Zak Elgamal 
	 	 
	 	Title: 
	 	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Appeared before me /s/ Margaret Cruz
on Sept 8, 2005 at Houston, Harris Coutny
Texas.

     

    My
Commission expires on Oct 24,
2007

     

    MARGARET CRUZ

    MY
COMMISSION EXPIRES 

    OCTOBER 24,
2007

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    Agreement

     

    dated

     

    December
1,

    2006

    

     

     

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

     

    December
1, 2006

     

    Board of
Directors

    ASAH
Corp.

    10039
Bissonnet #250 Houston, Texas 77036

     

    Dear
Board of Directors:

     

    In
reference to our respective Service Agreements which were amended in November
2006 we hereby agree to waive any claims for payment of the $260,000 owed in
accordance with such agreements. All other benefits and compensation set forth
in such agreement shall remain in full
force and effect.

     

    
      	 	Very truly
      yours
	 	 
	 	/s/ Zak Elgamal
  
	 	
              Zak
      Elgamal

               

              
                /s/Jaime
      Olmo-Rivas

                
                  Jaime Olmo-Rivas

                

              

            

    

     

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

     

     

     

    Assistant's
address Is: 

    15231
Black Falls Lane, 

    Sugar
Land, Texas 77478

     

    
      
        	
                For
      ASA:

                Zak
      Elgamal & Jaime Olma Jr.

              	
                Assistant:

                Zak
      Elgamal

              
	
                 

                /s/ Zak
      Elgamal & Jaime Olma
      Jr.

              	
                
                  /s/
      Zak Elgamal

                

              

      

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
 

     

    Agreement

     

    dated

    November
17,

    2006

     

     

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    
 

     

    ADDENDUM
TO SERVICE/CONSULTANT
AGREEMENT

     

    BETWEEN

     

    "ASA, INC."

     

    AND

     

    "CERTIFIED
SURGEON ASSISTANT SERVICES, INC. and ZAK
ELGAMAL

     

    November
17, 2006

     

    Effective
the Payroll due on November
17, 2006, this addendum replaces Article (1.4) of the Service/Consulting
Agreement between "ASA, Inc." and "Certified Surgeon, Assistant Services, Inc.
and Zak Elgamel The annual payment due to Certified Surgeon Assistant Services,
Inc. shall be payable as follows:

     

    
      	
              1.  

            	
              A
      payment of $10,000.00 for expenses shRli
      be made once a month to Certified Surgeon Assistant Services, Inc.,
      this payment is due on the fifteenth day of the month unless it is a
      weekend, then payment will be made on the immediately following work
      day.

            

    

     

    
      	
              2.  

            	
              A
      payment of $1,000.00 for automobile allowance shall be made once a month
      to Certified Surgeon.
      Assistant Services, Inc., This payment is due on, the fifteenth day
      of the month unless it is a weekend, then. payment will be made on. the
      immediately following work day.

            
	 	 
	3.
       	
              A
      fee
      of ($260,000.00) shall be added to the payroll check of Zak
      Elgamal. in Twenty Six equal
      Payments due with the regular payroll cheek due on every other Friday
      effective the Payroll of November 17, 2006. this shall continue until the
      expiration of the Service/Consultant
      Agreement on. November 20, 2010 unless the Agreement is
      renewed.

            
	 	 
	4.
       	
              All
      other covenants
      of the Service/Consultant Agreement shall remain in effect until
      the expiration or termination
thereof

            

    

     

    
       

      
        
          	
                  For Certified
      Surgeon Assistants Services, Inc. 

                    Zak  Elgamal 

                     

                    /s/
      Zak Elgamal 

                  

                	
                  APPEARED
      BEFORE ME ON 

                  NOVEMBER
      17, 2006

                  
                    Zak
      Elgamal and Jaime Olmo Jr. 

                    Margaret Cruz,
      Notary Public

                  

                
	 	 
	 	 
	
                  For Zak 
      Elgamal 

                  Zak 
      Elgamal 

                   

                  /s/
      Zak  Elgamal 

                	 
      

                  MARGARET
      CRUZ

                  MY
      COMMISSION EXPIRES
      

                  OCTOBER
      24, 2007

                
	 	 
	 	 
	
                  For
      ASA, Inc.

                  Zak
      W. Elgamal and Jaime Olmo, Jr.

                   

                  /s/
      Zak Elgamal & /s/
      Jaime Olmo Jr.   

                	Margaret
Cruz

        

      

    

    
       

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

     

    Agreement

     

    dated

     

    December
1,

    2006

     

     

    
 

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    December
1, 2006

     

    Board of
Directors

    AS.AH
Corp.

    10039
Bissormet #250 Houston, Texas 77036

     

    Dear
Board of Directors:

     

    In
reference to our respective Service Agreements which were amended in November
2006 we hereby agree to waive any claims
for payment of the $260,000 owed in accordance with such agreements. All
other
benefits and compensation set forth in such agreement shall remain in
full force and effect.

     

    
       

      
        	 	Very truly
      yours
	 	 
	 	/s/
      Zak Elgamal 
	 	
                Zak
      Elgamal

                 

                
                  /s/Jaime
      Olmo-Rivas

                  
                    Jaime Olmo-Rivas

                  

                

              

      

       

       

    

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    AMENDMENT
TO THE SERVICE/CONSULTING

     

    AND

     

    EMPLOYEMENT
AGREEMENTS

     

    March 19,
2007

     

    Board of
Directors

    American
Surgical Holdings, Inc.

    10039
Bissonnet #250 Houston, Texas 77036

     

    Dear
Board of Directors:

     

    In
reference to those certain Service/Consulting and Employment Ageements between
ASA, Inc. and Zak Elgamal, and Jaime Olmo-Rivas, and their respective individual
corporations ("Agreements"), these Ageements are hereby modified to confirm the
understanding amongst the parties and the Company that the $3,000,000
termination payment set forth in the Service/Consulting Agreements shall only
become due and payable in the circumstance where the Company, upon written
unanimous resolution of all directors, terminates the Service/Consulting
Agreements with the Company for reasons other than cause. In the event that any
of the named parties (other than the Company) terminate such Agreement for any
reason prior to the maturity of the Agreement or should the Agreements reach
maturity of the then current term, the termination penalty is neither due nor
payable by the Company. For purposes of these Agreements, Cause shall be defined
as the conviction of the person for any felony criminal act. All other benefits,
compensations, and terms set forth in such agreements shall
remain in full force and effect.

     

    It is
also hereby agreed that the Employment Agreements between the company and Zak
Elgamal and Jaime Olmo-Rivas, shall remain in force, in accordance with their
individual terms and are not in any manner related to the Agreements set forth
above. We also agree that effective January 1, 2007, Zak Elgamal and Jaime
Olmo-Rivas shall each be entitled to an annual bonus equal
to two (2%) percent of the increase in Gross Annual Revenue of the prior
year, payable by the end of the first quarter of the current fiscal year. In
addition, both Mr. Elgamal and Mr. Olmo-Rivas shall each receive 500,000 stock
options, vested over three years, distributed quarterly, with a strike price
equal to the average of the closing price of the last five business days prior
to execution of this letter Agreement. Both Zak Elgamal and Jaime Olmo-Rivas
shall have a non-compete clause for three years and such clause shall be
extended to five years in the event that either Zak Elgamal and Jaime Olmo-Rivas
sell more than 250,000 shares of the option within any calendar year during the
term of their Employment Agreements. The non-compete clause does not apply to
the ability of Zak Elgamal and Jaime Olmo –Rivas to practice their profession
individually as surgical assistants.

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    The laws
of the State of Texas govern this amendment and the Service/Consulting and the
Employment Agreements mentioned herein.

     

     

    ACCEPTED
AND AGREED TO BY: 

     

     

    AMERICAN
SURGICAL HOLDINGS, INC.

     

    By: /s/
Zak Elgamal

     

     

     

    ASH
INC

     

    By:
/s/
Jaime
Olmo-Rivas

     

     

     

    /S/
ZAK ELGAMAL

         
ZAK ELGAMAL

     

    /S/ 
JAIME OLMO-RIVAS

          
JAIME OLMO-RIVAS

     

     

    -4-

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