Document:

Credit Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
  
 KELLY SERVICES, INC. 
  
 THE FOREIGN SUBSIDIARY BORROWERS 
  

  
 LOAN AGREEMENT 
  
 dated as of November 30, 2005 
  

  
 JPMORGAN CHASE BANK, N.A., as Agent 
  
 KEYBANK NATIONAL ASSOCIATION, as Syndication Agent 
  
 PNC BANK, NATIONAL ASSOCIATION, as Syndication Agent 
  
 COMERICA BANK, as Documentation Agent 
  
 U.S. BANK NATIONAL ASSOCIATION, as Documentation Agent 
  
 and 
  
 THE LENDERS PARTY HERETO 
  
  

  
  
 J.P. MORGAN SECURITIES INC., 
 as Arranger 

 TABLE OF CONTENTS 
  

							
	ARTICLE I	  	DEFINITIONS	  	1
			
	ARTICLE II	  	THE CREDITS	  	19
	 	  	2.1	    	The Commitments	  	19
	 	  	2.2	    	Repayment of Loans; Evidence of Debt; Types of Advances	  	22
	 	  	2.3	    	Procedures for Borrowing	  	23
	 	  	2.4	    	Termination or Reduction of Commitments	  	24
	 	  	2.5	    	Determination of Dollar Amounts	  	24
	 	  	2.6	    	Facility and Agent Fees	  	25
	 	  	2.7	    	Optional and Mandatory Principal Payments on All Loans	  	25
	 	  	2.8	    	Conversion and Continuation of Outstanding Advances	  	25
	 	  	2.9	    	Interest Rates, Interest Payment Dates;	  	 
	 	  	 	    	Interest and Fee Bases	  	26
	 	  	2.10	    	Rates Applicable After Default	  	27
	 	  	2.11	    	Pro Rata Payment, Method of Payment	  	27
	 	  	2.12	    	Telephonic Notices	  	28
	 	  	2.13	    	Notification of Advances, Interest Rates, Prepayments and	  	 
	 	  	 	    	Commitment Reductions	  	28
	 	  	2.14	    	Lending Installations	  	28
	 	  	2.15	    	Non-Receipt of Funds by the Agent	  	28
	 	  	2.16	    	Swing Line Loans	  	28
	 	  	2.17	    	Application of Payments with Respect to Defaulting Lenders	  	30
	 	  	2.18	    	Advances after the EMU Commencement Date	  	30
	 	  	2.19	    	Facility LCs	  	30
			
	ARTICLE III	  	CHANGE IN CIRCUMSTANCES	  	34
	 	  	3.1	    	Yield Protection	  	34
	 	  	3.2	    	Changes in Capital Adequacy Regulations	  	35
	 	  	3.3	    	Availability of Types of Advances	  	35
	 	  	3.4	    	Funding Indemnification	  	35
	 	  	3.5	    	Lender Statements; Survival of Indemnity	  	35
	 	  	3.6	    	Taxes	  	36
	 	  	3.7	    	Substitution of Lender	  	38
			
	ARTICLE IV	  	CONDITIONS PRECEDENT	  	39
	 	  	4.1	    	Closing Conditions	  	39
	 	  	4.2	    	Each Advance	  	40
			
	ARTICLE V	  	REPRESENTATIONS AND WARRANTIES	  	40
	 	  	5.1	    	Corporate Existence and Standing	  	40
	 	  	5.2	    	Authorization and Validity	  	41
	 	  	5.3	    	No Conflict; Government Consent	  	41
	 	  	5.4	    	Financial Statements	  	41
	 	  	5.5	    	Material Adverse Change	  	41
	 	  	5.6	    	Taxes	  	41
	 	  	5.7	    	Litigation and Contingent Obligations	  	41
	 	  	5.8	    	Subsidiaries	  	42

  

 i 

							
	 	  	5.9	    	ERISA	  	42
	 	  	5.10	    	Accuracy of Information	  	42
	 	  	5.11	    	Regulations T, U and X	  	42
	 	  	5.12	    	Compliance with Laws	  	42
	 	  	5.13	    	Plan Assets; Prohibited Transactions	  	42
	 	  	5.14	    	Environmental Matters	  	43
	 	  	5.15	    	Investment Company Act	  	43
	 	  	5.16	    	Public Utility Holding Company Act	  	43
	 	  	5.17	    	Foreign Subsidiary Borrowers	  	43
	 	  	5.18	    	Ownership of Properties	  	43
	 	  	5.19	    	Reportable Transaction	  	43
			
	ARTICLE VI	  	COVENANTS	  	44
	 	  	6.1	    	Financial Reporting	  	44
	 	  	6.2	    	Use of Proceeds	  	45
	 	  	6.3	    	Notice of Default	  	45
	 	  	6.4	    	Conduct of Business	  	45
	 	  	6.5	    	Taxes	  	45
	 	  	6.6	    	Insurance	  	45
	 	  	6.7	    	Compliance with Laws	  	45
	 	  	6.8	    	Maintenance of Properties	  	45
	 	  	6.9	    	Inspection	  	45
	 	  	6.10	    	Merger	  	46
	 	  	6.11	    	Sale of Assets	  	46
	 	  	6.12	    	Liens and Subsidiary Indebtedness	  	46
	 	  	6.13	    	Affiliates	  	47
	 	  	6.14	    	Leverage Ratio	  	48
	 	  	6.15	    	Interest Coverage Ratio	  	48
	 	  	6.16	    	Financial Contracts	  	48
			
	ARTICLE VII	  	DEFAULTS	  	48
			
	ARTICLE VIII	  	ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES	  	50
	 	  	8.1	    	Acceleration	  	50
	 	  	8.2	    	Amendments	  	51
	 	  	8.3	    	Preservation of Rights	  	52
			
	ARTICLE IX	  	GUARANTEE	  	52
	 	  	9.1	    	Guarantee	  	52
	 	  	9.2	    	No Subrogation	  	53
	 	  	9.3	    	Amendments, etc. with respect to the Obligations; Waiver of Rights	  	53
	 	  	9.4	    	Guarantee Absolute and Unconditional	  	54
	 	  	9.5	    	Reinstatement	  	54
	 	  	9.6	    	Payments	  	54

  

 ii 

							
	ARTICLE X	  	GENERAL PROVISIONS	  	55
	 	  	10.1	    	Survival of Representations	  	55
	 	  	10.2	    	Governmental Regulation	  	55
	 	  	10.3	    	Taxes	  	55
	 	  	10.4	    	Headings	  	55
	 	  	10.5	    	Entire Agreement	  	55
	 	  	10.6	    	Several Obligations; Benefits of this Agreement	  	55
	 	  	10.7	    	Expenses; Indemnification	  	55
	 	  	10.8	    	Numbers of Documents	  	56
	 	  	10.9	    	Accounting	  	56
	 	  	10.10	    	Severability of Provisions	  	56
	 	  	10.11	    	Nonliability of Lenders	  	56
	 	  	10.12	    	Confidentiality	  	57
	 	  	10.13	    	Nonreliance	  	57
			
	ARTICLE XI	  	THE AGENT; ETC.	  	58
	 	  	11.1	    	Appointment; Nature of Relationship	  	58
	 	  	11.2	    	Powers	  	58
	 	  	11.3	    	General Immunity	  	58
	 	  	11.4	    	No Responsibility for Loans, Recitals, etc.	  	58
	 	  	11.5	    	Action on Instructions of Lenders	  	58
	 	  	11.6	    	Employment of Agents and Counsel	  	59
	 	  	11.7	    	Reliance on Documents; Counsel	  	59
	 	  	11.8	    	Agent’s Reimbursement and Indemnification	  	59
	 	  	11.9	    	Notice of Default	  	59
	 	  	11.10	    	Rights as a Lender	  	59
	 	  	11.11	    	Lender Credit Decision	  	60
	 	  	11.12	    	Successor Agent	  	60
	 	  	11.13	    	Delegation to Affiliates	  	60
	 	  	11.14	    	Arranger	  	60
			
	ARTICLE XII	  	SETOFF; ADJUSTMENTS AMONG LENDERS	  	61
	 	  	12.1	    	Setoff	  	61
	 	  	12.2	    	Ratable Payments	  	61
			
	ARTICLE XIII	  	BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS	  	61
	 	  	13.1	    	Successors and Assigns	  	61
	 	  	13.2	    	Participations	  	62
	 	  	 	    	13.2.1 Permitted Participants; Effect	  	62
	 	  	 	    	13.2.2. Voting Rights	  	62
	 	  	 	    	13.2.3. Benefit of Setoff	  	62
	 	  	13.3	    	Assignments	  	62
	 	  	 	    	13.3.1. Permitted Assignments	  	62
	 	  	 	    	13.3.2. Effect; Effective Date	  	63
	 	  	13.4	    	Dissemination of Information	  	63
	 	  	13.5	    	Tax Treatment	  	63

  

 iii 

							
			
	ARTICLE XIV	  	NOTICES	  	64
	 	  	14.1	    	Notices	  	64
	 	  	14.2	    	Change of Address	  	64
			
	ARTICLE XV	  	COUNTERPARTS	  	64
			
	ARTICLE XVI	  	 CHOICE OF LAW, CONSENT TO JURISDICTION, WAIVER
 OF JURY TRIAL, JUDGMENT CURRENCY
	  	64
	 	  	16.1	    	Choice of Law	  	64
	 	  	16.2	    	Waiver of Jury Trial	  	64
	 	  	16.3	    	Submission to Jurisdiction; Waivers	  	65
	 	  	16.4	    	Acknowledgments	  	65
	 	  	16.5	    	Power of Attorney	  	66
	 	  	16.6	    	Judgment	  	66
	 	  	16.7	    	USA Patriot Act	  	66

  
 EXHIBITS 
  
 EXHIBIT A - PRICING SCHEDULE 
  
 EXHIBIT B - JOINDER AGREEMENT 
  
 EXHIBIT C - REVOLVING CREDIT NOTE 
  
 EXHIBIT D - NOTICE OF DRAWDOWN 
  
 EXHIBIT E - OPINION OF COUNSEL 
  
 EXHIBIT F -
COMPLIANCE CERTIFICATE 
  
 EXHIBIT G - ASSIGNMENT AGREEMENT 
  
 EXHIBIT H - ALTERNATE CURRENCY ADDENDUM 
  
 SCHEDULES 
  

	SCHEDULE	1.1(a)    COMMITMENTS 

  

	SCHEDULE	1.1(b)    FOREIGN SUBSIDIARY BORROWERS 

  
 SCHEDULE 2.16      SWING LINE LOAN NOTICE 
  

	SCHEDULE	5.7         LITIGATION 

  

	SCHEDULE	5.8         SIGNIFICANT SUBSIDIARIES 

  

 iv 

 THIS LOAN AGREEMENT (this “Agreement”), dated as of November 30, 2005, among
KELLY SERVICES, INC., a Delaware corporation (the “Company”), the FOREIGN SUBSIDIARY BORROWERS (as hereinafter defined) from time to time parties hereto (together with the Company, the “Borrowers”),
the lenders from time to time parties hereto (together with any Transferees, the “Lenders”), and JPMORGAN CHASE BANK, N.A., a national banking association with its main office in Chicago, Illinois, as administrative agent for
the Lenders (in such capacity, the “Agent”). 
  
 NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Defined Terms. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Acquisition” means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which
the Company or any of its Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm, corporation, partnership, limited liability company or other business entity, or division thereof, whether through
purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which
have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage or voting power) of the outstanding ownership interests of a partnership
or limited liability company. 
  
 “Advance” means
a Revolving Credit Advance, an Alternate Currency Advance or a Swing Line Loan. 
  
 “Affiliate” of any Person means any other Person directly or indirectly controlling, controlled by or under common control with such Person. A Person shall be deemed to control another Person if the
controlling Person owns 10% or more of any class of voting securities (or other ownership interests) of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of stock, by contract or otherwise. 
  
 “Agent” means JPMorgan Chase Bank, N.A. in its capacity as contractual representative of the Lenders pursuant to Article XI, and not in its individual capacity as a Lender, and any successor Agent
appointed pursuant to Article XI. 
  
 “Aggregate Alternate
Currency Commitments” means, at any time, the aggregate of the Alternate Currency Commitments of the Lenders. 
  
 “Aggregate Available Revolving Credit Commitments” means as at any date of determination with respect to all Lenders, an amount equal to
the Available Revolving Credit Commitments of all Lenders on such date. 
  
 “Aggregate Commitments” shall mean the aggregate amount of the Commitments of all Lenders. 
  

 1 

 “Aggregate Outstanding Credit Exposure” means, at any time, the aggregate of the
Outstanding Credit Exposure of all the Lenders. 
  
 “Aggregate Outstanding Revolving Credit Exposure” means as at any date of determination with respect to any Lender, the sum of (i) the U.S. Dollar Equivalent on such date of the aggregate unpaid principal amount
of such Lender’s Revolving Credit Loans on such date, plus (ii) the U.S. Dollar Equivalent on such date of the amount of such Lender’s Pro Rata Share of the LC Obligations on such date, plus (iii) the U.S. Dollar
Equivalent on such date of the amount of such Lender’s Pro Rata Share of the aggregate unpaid principal amount of Swing Line Loans on such date. 
  
 “Aggregate Revolving Credit Commitments” means the aggregate amount, stated in U.S. Dollars, of the Revolving Credit Commitments of all
Lenders. 
  
 “Agreement” means this loan
agreement, as it may be amended or modified and in effect from time to time. 
  
 “Agreement Accounting Principles” means generally accepted accounting principles as in effect on the Effective Date in the United States, applied in a manner consistent with the audited consolidated
financial statements of the Company and its Subsidiaries for the fiscal year ending January 2, 2005; provided, however, that, if any changes in generally accepted accounting principles are required and adopted by the Company or its
Subsidiaries with the agreement of its independent certified public accountants and such changes result in a change in the method of calculation of any financial covenants, tests, restrictions or standards herein or in the related definitions or
terms used therein (“Accounting Changes”), the Agent, at the Company’s request, will enter into negotiations, in good faith, in order to amend such provisions in a credit- neutral manner so as to reflect equitably such changes with
the desired result that the criteria for evaluating the Company’s and its Subsidiaries’ financial condition and results shall be the same in all material respects after such changes as if such changes had not been made; provided that any
such amendments shall be reasonably satisfactory to the Required Lenders. In the event such amendment is entered into, all references in this Agreement to Agreement Accounting Principles shall mean generally accepted accounting principles as of the
date of such amendment. After the occurrence of any accounting change but until such time as such amendment has been entered into, all financial statements and other financial reports required to be delivered under this Agreement shall be prepared
and delivered in accordance with Agreement Accounting Principles. 
  
 “Agreement Currency” is defined in Section 16.6. 
  
 “Alternate Base Rate” means, for any day, a rate of interest per annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum of the Federal Funds Effective Rate for such
day plus 1/2% per annum. 
  
 “Alternate
Currency” means any currency which the Company requests the Agent to include as an Alternate Currency hereunder and which is acceptable to one-hundred percent (100%) of the applicable Alternate Currency Lenders for such Alternate
Currency Facility; and with respect to which an Alternate Currency Addendum has been executed among the Company, a Borrowing Subsidiary, one or more Alternate Currency Lenders and the Agent in connection therewith. 
  
 “Alternate Currency Addendum” means a schedule and addendum
entered into among the Company, a Borrowing Subsidiary, one or more Alternate Currency Lenders and the Agent, in form and substance satisfactory to the Agent, the Company, such Borrowing Subsidiary and such Alternate Currency Lenders party thereto
but in substantially the form of Exhibit H hereto. 
  

 2 

 “Alternate Currency Advance” means a borrowing hereunder (or a continuation thereof)
consisting of the several Alternate Currency Loans made in the same Alternate Currency on the same Borrowing Date (or the date of continuation) by the Alternate Currency Lenders for the same Interest Period. 
  
 “Alternate Currency Commitment” means, for each Alternate
Currency Lender for each Alternate Currency, the obligation of such Alternate Currency Lender to make Alternate Currency Loans not exceeding the U.S. Dollar Equivalent set forth in the applicable Alternate Currency Addendum, as such amount may
be modified from time to time pursuant to the terms of this Agreement and the applicable Alternate Currency Addendum. The Alternate Currency Commitment of each Alternate Currency Lender for each Alternate Currency Facility is set forth on Schedule
1.1(a), as amended, modified, substituted or replaced from time to time. 
  
 “Alternate Currency Facility” means each credit facility established pursuant to Sections 2.1(b) and (d). 
  
 “Alternate Currency Lender” means any Lender (including any Applicable Lending Installation) party to an Alternate Currency Addendum.

  
 “Alternate Currency Loan” means any Loan
denominated in an Alternate Currency made by an Alternate Currency Lender to a Borrower pursuant to this Agreement and the applicable Alternate Currency Addendum (being, for the avoidance of doubt, such Lender’s portion of an Alternate Currency
Advance). 
  
 “Alternate Currency Share” means,
with respect to any Alternate Currency Lender for any particular Alternate Currency, the percentage obtained by dividing (a) such Alternate Currency Lender’s Alternate Currency Commitment at such time as set forth in the applicable
Alternate Currency Addendum by (b) the aggregate of the Alternate Currency Commitments at such time of all Alternate Currency Lenders with respect to such Alternate Currency as set forth in the applicable Alternate Currency Addendum.

  
 “Applicable Fee Rate” means, at any time, the
percentage rate per annum at which facility fees are accruing on the Aggregate Commitment (without regard to usage) at such time as set forth in the Pricing Schedule. 
  
 “Applicable Lending Installation” shall mean, with respect to any Lender, any office(s), agency(ies),
branch(es), Subsidiary(ies) or Affiliate(s) of such Lender selected by such Lender and notified to the Company and the Agent by such Lender from time to time and, with respect to the Agent, any office(s), agency(ies), branch(es), Subsidiary(ies) or
Affiliate(s) of the Agent selected by the Agent and notified to the Company from time to time. 
  
 “Applicable Margin” means, with respect to Advances of any Type at any time, the facility fee or the LC Fee, as the case may be, the percentage rate per annum which is applicable at such time as set
forth in the Pricing Schedule. 
  
 “Arranger”
means J.P. Morgan Securities Inc., a Delaware corporation and its successors. 
  
 “Article” means an article of this Agreement unless another document is specifically referenced. 
  

 3 

 “Assignment” is defined in Section 13.3.1. 
  
 “Associated Costs Rate” means, in relation to each Advance,
the percentage rate from time to time determined by the Agent (in its sole discretion) as reflecting the cost, loss or difference in return which would be suffered or incurred by the Agent (and/or such Lender or Lenders as it may from time to time
determine) (if the Agent or such Lender or Lenders funded such Advance) as a result of: 
  
 (a) funding (at LIBOR and on a match funded basis) any special deposit or cash ratio deposit required to be placed with the Bank of England (or any other authority which replaces all or any of its functions); and/or

  
 (b) any charge imposed by the Financial Services Authority (or
any other authority which replaces all or any of its functions), 
  
 in respect of
Eligible Liabilities (assuming these to be in excess of any stated minimum) which relate to funding such Advance. 
  
 “Australian Dollars” and “AUS$” means the lawful currency of the Commonwealth of Australia. 
  
 “Authorized Officer” means, with respect to any Borrower,
any of the chief executive officer, the chief financial officer, the treasurer or the assistant treasurer of such Borrower or any person designated by any of the foregoing in writing to the Agent from time to time to act on behalf of such Borrower,
in each case, acting singly. 
  
 “Available Aggregate
Commitment” means, at any time, the Aggregate Commitments then in effect minus the Aggregate Outstanding Credit Exposure at such time. 
  
 “Available Alternate Currency Commitment” means at any date of determination with respect to any Alternate Currency Lender under any
Alternate Currency Facility as set forth in the applicable Alternate Currency Addendum, the excess, if any, of (a) the U.S. Dollar Equivalent of such Alternate Currency Lender’s Commitment under such Alternate Currency Facility in
effect on such date over (b) the U.S. Dollar Equivalent of the aggregate principal amount of Alternate Currency Loans outstanding owing to such Alternate Currency Lender under such Alternate Currency Facility on such date.

  
 “Available Revolving Credit Commitment” means
as at any date of determination with respect to any Lender, an amount equal to the excess, if any, of (a) the amount of such Lender’s Revolving Credit Commitment in effect on such date over (b) the Aggregate Outstanding
Revolving Credit Exposure of such Lender on such date. 
  
 “Borrowers” is defined in the preamble hereto. 
  
 “Borrowing Date” means any Business Day specified in a notice pursuant to Section 2.3, 2.8 or 2.16 as a date on which a Borrower requests the Lenders to make or continue Loans or issue Facility
LCs hereunder. 
  
 “Business Day” means
(i) with respect to any borrowing, payment or rate selection of Eurocurrency Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Chicago and New York for the conduct of substantially all of their commercial
lending activities, interbank wire transfers can be made on the Fedwire system and dealings in Dollars and other Eligible 

  

 4 

 
Currencies are carried on in the London interbank market (and, if the Advances which are the subject of such borrowing, payment or rate selection are
denominated in Euro, a day upon which such clearing system as is reasonably determined by the Agent to be suitable for clearing or settlement of the Euro is open for business), (ii) with respect to any borrowing of any Swing Line Loan
denominated in any currency other than Dollars, any day on which banks in London are open for general banking business, including dealings in foreign currency and exchange, and (iii) for all other purposes, a day (other than a Saturday or
Sunday) on which banks generally are open in Chicago for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system. 
  
 “Canadian Dollars” or “CDN$” means the
lawful currency of the Dominion of Canada. 
  
 “Capital
Expenditures” means, without duplication, any expenditures for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Company and its Subsidiaries prepared
in accordance with Agreement Accounting Principles. 
  
 “Capital Stock” shall mean (i) in the case of any corporation, all capital stock and any securities exchangeable for or convertible into capital stock and any warrants, rights or other options to purchase or otherwise
acquire capital stock or such securities or any other form of equity securities, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate
stock, (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of
the profits and losses of, or distributions of assets of, the issuing Person. 
  
 “Capitalized Lease” of a Person means any lease of Property by such Person as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement Accounting
Principles. 
  
 “Capitalized Lease Obligations”
of a Person means the amount of the obligations of such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such Person prepared in accordance with Agreement Accounting Principles. 
  
 “Change in Control” means, subject to the exceptions
contained in the next sentence, any Person or group of Persons (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) shall after the Effective Date either (a) acquire beneficial ownership (within
the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) in excess of 50% of the outstanding shares of voting stock of the Company or (b) obtain the power (whether or not exercised) to elect
a majority of the Company’s directors. A Change of Control shall not include any acquisition of beneficial ownership (as defined above) or the power to elect a majority of the Company’s directors by any Person who is or group of Persons
(as defined above) which include members of the Kelly Family or are acting for the benefit of members of the Kelly Family, nor shall Change of Control include any change in legal title to, or the trustee of, the Kelly Trust the shifting admission
within or to or withdrawal from the Kelly Trust of any beneficiaries. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time. 
  
 “Collateral Shortfall Amount” is defined in Section 8.1. 
  

 5 

 “Commitment” means, with respect to each Lender, the aggregate amount of such
Lender’s Revolving Credit Commitment and, as applicable, such Lender’s Alternate Currency Commitments. 
  
 “Company” is defined in the preamble hereto. 
  
 “Computation Date” is defined in Section 2.5. 
  
 “Condemnation” is defined in Section 7.8. 
  
 “Contingent Obligation” of a Person means any agreement,
undertaking or arrangement by which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any other Person.

  
 “Contract” means, at any time, any contract
between any Borrower or the Guarantor and an Obligor pursuant to or under which such Obligor shall be obligated to pay such Borrower or Guarantor for merchandise or services purchased by such Obligor. 
  
 “Controlled Group” means all members of a controlled group
of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Company or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code. 
  
 “Credit Extension” means the making of an Advance or the
issuance or Modification of a Facility LC hereunder. 
  
 “Credit Extension Date” means the Borrowing Date for an Advance or the issuance date for a Facility LC. 
  
 “Default” means an event described in Article VII. 
  
 “Defaulting Lender” means any Lender that (a) on any Borrowing Date fails to make available to the
Agent such Lender’s Loans required to be made to a Borrower on such Borrowing Date, (b) shall not have made a payment to the LC Issuer pursuant to Section 2.19.5 or to the Swing Line Lender pursuant to Section 2.16(c) or
(c) shall not have made a payment to the Agent pursuant to Section 2.17. Once a Lender becomes a Defaulting Lender, such Lender shall continue as a Defaulting Lender until such time as such Defaulting Lender makes available to the Agent
the amount of such Defaulting Lender’s Loans and/or to the LC Issuer and/or the Swing Line Lender such payments requested by the LC Issuer or the Swing Line Lender together with all other amounts required to be paid to the Agent, the LC Issuer
and/or the Swing Line Lender pursuant to this Agreement. 
  
 “Designated Financial Officer” means, with respect to any Borrower, its chief financial officer, treasurer or assistant treasurer. 
  
 “Dollar Amount” of any currency at any date shall mean (i) the amount of such currency if such currency is Dollars or (ii) the
equivalent in Dollars of such amount if such currency is any currency other than Dollars, calculated at the Exchange Rate, on or as of the most recent Computation Date provided for in Section 2.5. 
  
 “Dollars”, “U.S. Dollars” and
“$” means dollars in lawful currency of the United States of America. 
  

 6 

 “Domestic Subsidiary” means each present and future Subsidiary of the Company which is
not a Foreign Subsidiary. 
  
 “EBITDA” means, for
any period, the sum of (a) the consolidated net income (or loss) of the Company and its Subsidiaries for such period determined in conformity with Agreement Accounting Principles, plus (b) to the extent deducted in determining such
net income, income taxes, Interest Expense, depreciation and amortization, minus (c) to the extent included in determining such net income, each of the following, without duplication: (i) the income of any Person (x) in which
any Person other than the Company or any of its Subsidiaries has a joint interest or a partnership interest or other ownership interest and (y) the Company or any of its Subsidiaries does not control the Board of Directors or other governing
body of such Person or does not otherwise control the declaration of a dividend or other distribution, except to the extent of the amount of dividends or other distributions actually paid to the Company or any of its Subsidiaries by such Person
during such period, (ii) the income of any Person accrued prior to the date it becomes a Subsidiary of the Company or is merged into or consolidated with the Company or any of its Subsidiaries or that Person’s assets are acquired by the
Company or any of its Subsidiaries, (iii) gains or losses from the sale, exchange, transfer or other disposition of property or assets not in the ordinary course of business of the Company and its Subsidiaries, and related tax effects in
accordance with Agreement Accounting Principles, (iv) any other extraordinary or non-recurring gains or other income not from the continuing operations of the Company or its Subsidiaries, and related tax effects in accordance with Agreement
Accounting Principles and (v) the income of any Subsidiary of the Company to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary and such income exceeds $500,000 in any fiscal year for such Subsidiary, plus (d) any
extraordinary or non-recurring non-cash losses not from the continuing operations of the Company and its Subsidiaries, and related tax effects, in accordance with Agreement Accounting Principles. 
  
 “Economic and Monetary Union” or “EMU”
shall mean the Economic and Monetary Union of the European Union. 
  
 “Effective Date” means the later of (a) date on which the conditions precedent set forth in Section 4.1 are satisfied and (b) November 30, 2005. 
  
 “Eligible Currency” shall mean any currency that is freely
transferable and freely convertible into Dollars, which is available in the London Interbank Market and in respect of which the U.S. Dollar Equivalent may be readily calculated. If currency control or other exchange regulations are imposed in
the country in which such currency is issued with the result that different types of such currency are introduced, such country’s currency is, in the determination of the Agent, no longer readily available or freely traded or as to which, in
the determination of the Agent, a Dollar Equivalent is not readily calculable, then the Agent shall promptly notify the Company, and such country’s currency shall no longer be an Eligible Currency until such time as the Agent agrees to
reinstate such country’s currency as an Eligible Currency and promptly, but in any event within five (5) Business Days of receipt of such notice from the Agent, the Borrowers with respect to such Eligible Currency shall repay all Loans in
such affected currency or convert such Loans into Loans in Dollars or an Eligible Currency, as applicable, subject to the other terms of this Agreement. 
  
 “Eligible Liabilities” means eligible liabilities as defined under or pursuant to the Bank of England Act 1998 or by the Bank of England
(as may be appropriate) for the time being. 
  

 7 

 “Environmental Laws” means, with respect to any Borrower or Guarantor, any and all
federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions
relating to (a) the protection of the environment, (b) the effect of the environment on human health, (c) emissions, discharges or releases of pollutants, contaminants, hazardous substances or wastes into surface water, ground water
or land, or (d) the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, hazardous substances or wastes or the clean-up or other remediation thereof, in each case,
applicable to such Borrower or Guarantor or their respective Property. 
  
 “ERISA” means the Employee Retirement Income Security Act of l974, as amended from time to time, and any rule or regulation issued thereunder. 
  
 “Euro” and/or “EUR” means the euro referred to in Council Regulation (EC) No. 1103/97
dated June 17, 1997 passed by the Council of the European Union, or, if different, the then lawful currency of the member states of the European Union that participate in the third stage of EMU. 
  
 “Eurocurrency Advance” means an Advance which bears interest
at the applicable Eurocurrency Rate. 
  
 “Eurocurrency
Loan” means a Loan which bears interest at the applicable Eurocurrency Rate. 
  
 “Eurocurrency Reference Rate” means, with respect to a Eurocurrency Advance for the relevant Interest Period, the applicable British Bankers’ Association LIBOR rate for deposits in the applicable
Eligible Currency as reported by any generally recognized financial information service as of 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, and having a maturity equal to such Interest Period,
provided that, if no such British Bankers’ Association LIBOR rate is available for any Eligible Currency and with respect to all Eurocurrency Advances denominated in Pounds Sterling, the applicable Eurocurrency Reference Rate for the
relevant Interest Period shall instead be the rate determined by the Agent to be the arithmetic average of the rate reported to the Agent by each Reference Lender as the rate at which such Reference Lender offers to place deposits in the applicable
Eligible Currency with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, in the approximate amount of such Reference Lender’s relevant
Eurocurrency Loan and having a maturity equal to such Interest Period. If any Reference Lender fails to provide such quotation to the Agent, then the Agent shall determine the Eurocurrency Reference Rate on the basis of the quotations of the
remaining Reference Lender(s). As of the Effective Date, such alternate rate calculation set forth in the proviso of this definition shall be applicable with respect to the following currencies: Norwegian Krona and Swedish Krona. 
  
 “Eurocurrency Rate” means, with respect to a Eurocurrency
Advance for the relevant Interest Period, the sum of (i) the quotient of (a) the Eurocurrency Reference Rate applicable to such Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to
such Interest Period, if any, plus (ii) the Applicable Margin, plus (iii) with respect to Loans denominated in Pounds Sterling, if applicable, the Associated Costs Rate. 
  
 “Exchange Rate” means the Agent’s spot rate of exchange in the interbank market where its foreign
currency exchange operations in respect of such non-U.S. Dollar currency are then being conducted, at or about 10:00 A.M., local time, on such date for the purchase of U.S. Dollars with such non-U.S. Dollar currency, for delivery three
Business Days later; provided, that if at the time of any such 

  

 8 

 
determination, no such spot rate can reasonably be quoted, the Agent may use any reasonable method as it deems applicable to determine such rate, and such
determination shall be conclusive absent manifest error. 
  
 “Facility LC” is defined in Section 2.19.1. 
  
 “Facility LC Application” is defined in Section 2.19.3. 
  
 “Facility LC Collateral Account” is defined in Section 2.19.11. 
  
 “Facility Termination Date” means the earlier to occur of (a) November 30, 2010 or (b) the
date on which the Commitments are terminated pursuant to Article VIII. 
  
 “Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business
Day, the average of the quotations at approximately 10:00 a.m. (Chicago time) on such day on such transactions received by the Agent from three Federal funds brokers of recognized standing selected by the Agent in its sole discretion. 
  
 “Financial Contract” of a Person means (a) any
exchange-traded or over-the-counter futures, forward, swap or option contract or other financial instrument with similar characteristics or (b) any Rate Hedging Agreement. 
  
 “Floating Rate” means, for any day, a rate per annum equal to the Alternate Base Rate for such day, in each
case changing when and as the Alternate Base Rate changes. 
  
 “Floating Rate Advance” means an Advance which bears interest at the Floating Rate. 
  
 “Floating Rate Loan” means a Loan which bears interest at the Floating Rate. 
  
 “Foreign Currency” means any Foreign Syndicated Currency or
Alternate Currency. 
  
 “Foreign Subsidiary”
means each Subsidiary organized under the laws of a jurisdiction outside of the United States. 
  
 “Foreign Subsidiary Borrower” means each Wholly-Owned Foreign Subsidiary listed as a Foreign Subsidiary Borrower in Schedule 1.1(b) as amended from time to time in accordance with Section 8.2.2.

  
 “Foreign Syndicated Currency” shall mean any
currency which is an Eligible Currency and which has been approved by the Lenders; provided, that, subject to the terms of this Agreement (including without limitation Section 3.3), Pounds Sterling, Euro, Canadian Dollars,
Australian Dollars, Japanese Yen, Swiss Francs, Danish Krona, Norwegian Krona, Swedish Krona and New Zealand Dollars shall be deemed approved by the Lenders. 
  
 “Governmental Authority” means any nation or government, any state, or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  

 9 

 “Guarantor” means with respect to the Obligations of the Foreign Subsidiary Borrowers,
the Company. 
  
 “Guaranty” means the guarantee
contained in Article IX, including any amendment, modification, renewal or replacement of such guaranty agreement. 
  
 “Indebtedness” of a Person means, without duplication, such Person’s (a) obligations for borrowed money, (b) obligations
representing the deferred purchase price of Property or services (other than accounts payable and/or accrued expenses arising in the ordinary course of such Person’s business payable in accordance with customary practices),
(c) obligations, whether or not assumed, secured by Liens on property now or hereafter owned or acquired by such Person, (d) obligations which are evidenced by notes, acceptances, or other instruments (other than Financial Contracts),
(e) Capitalized Lease Obligations, (f) all reimbursement and similar obligations under outstanding letters of credit, bankers acceptances, surety bonds or similar instruments in respect of drafts or other claims which may be presented or
have been presented and have not yet been paid, (g) the aggregate outstanding amount of all Off Balance Sheet Liabilities, based on the aggregate outstanding amounts sold, signed, discounted or otherwise transferred or financed, whether or not
shown as a liability on a consolidated balance sheet of the Company and its Subsidiaries, including without limitation, all Receivables Transaction Attributed Indebtedness, and (h) all Contingent Liabilities of such Person with respect to or
relating to Indebtedness of others the same as those described in clauses (a) through (g) of this definition. For purposes of this definition, there shall be excluded from “Indebtedness” (x) standby letters of credit, bank
guaranties, surety bonds and similar instruments which are issued in connection with workers compensation obligations or other statutory or governmental obligations up to an aggregate amount of $75,000,000 and (y) any transaction or series of
transactions that may be entered into only between the Company and/or any Subsidiary of the Company and any Subsidiary of the Company to which the Company and/or any Subsidiary of the Company may sell, convey or otherwise transfer any of its
accounts or notes receivable or any rights related thereto. All such other instruments shall be included in the calculation of “Indebtedness”. 
  
 “Interest Coverage Ratio” means, as of the end of any fiscal quarter, the ratio of (a) EBITDA to (b) Interest Expense, in each
case calculated for the four consecutive fiscal quarters then ending, on a consolidated basis for the Company and its Subsidiaries in accordance with Agreement Accounting Principles. 
  
 “Interest Expense” means, with respect to any period, the aggregate of all interest expense reported by the
Company and its Subsidiaries in accordance with Agreement Accounting Principles during such period. As used in this definition, the term “interest” shall include, without limitation, all interest, fees and costs payable with respect to the
obligations under this Agreement, any discount in respect of sales of accounts receivable and/or related contract rights and the interest portion of Capitalized Lease payments during such period, all as determined in accordance with Agreement
Accounting Principles. 
  
 “Interest Payment
Date” shall mean (a) with respect to any Eurocurrency Rate Loan, the last day of each Interest Period with respect to such Revolving Credit Loan and, in the case of any Interest Period exceeding three months, those days that occur
during such Interest Period at intervals of three months after the first day of such Interest Period, (b) with respect to any Alternate Currency Loan, the date specified as the date on which interest is payable in the applicable Alternate
Currency Addendum and (c) in all other cases, the last Business Day of each March, June, September and December occurring after the date hereof, commencing with the first such Business Day occurring after the date of this Agreement. 

 

 10 

 “Interest Period” means with respect to any Eurocurrency Loan: 
  
 (a) initially, the period commencing on the borrowing or continuation date,
as the case may be, with respect to such Loan and ending one, two, three, or six months thereafter, as selected by the relevant Borrower in its notice of borrowing or notice of continuation, as the case may be, given with respect thereto; and

  
 (b) thereafter, each period commencing on the last day of the
next preceding Interest Period applicable to such Loan and ending one, two, three or six months thereafter, as selected by the relevant Borrower by irrevocable notice to the Agent not less than three Business Days prior to the last day of the then
current Interest Period with respect thereto, or, if not selected by such Borrower, ending one month thereafter in accordance with Section 2.8; 
  
 provided that, all of the foregoing provisions relating to Interest Periods are subject to the following: 
  
 (i) if any Interest Period pertaining to a Loan would
otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day; 
  
 (ii) any Interest Period applicable to a Loan that would otherwise extend beyond, the Facility Termination Date, shall end on the Facility Termination Date; and 
  
 (iii) any Interest Period pertaining to a Loan that begins on
the last Business Day of a calendar month (or on 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. 
  
 “Investment” of a Person means any loan, advance (other than
commission, moving, travel and similar advances to officers and employees made in the ordinary course of business), extension of credit (other than accounts receivable and/or accrued expenses arising in the ordinary course of business payable in
accordance with customary practices and loans to employees in the ordinary course of business) or contribution of capital by such Person; stocks, bonds, mutual funds, partnership interests, notes, debentures or other securities owned by such Person;
any deposit accounts and certificates of deposit owned by such Person; and structured notes, derivative financial instruments and other similar instruments or contracts owned by such Person (other than Financial Contracts). 
  
 “Investment Grade Rating” as to any Person means that such
Person has a rating issued by Moody’s and then in effect with respect to such Person’s senior unsecured long-term debt securities without third party credit enhancement of Baa3 or better and has a rating issued by S&P and then in
effect with respect to such Person’s senior unsecured long-term debt securities without third party credit enhancement of BBB- or better. 
  
 “Japanese Yen” means the lawful currency of Japan. 
  
 “Joinder Agreement” means the Joinder Agreement to be entered into by each Foreign Subsidiary Borrower
subsequent to the date hereof pursuant to Section 8.2.2, substantially in the form of Exhibit B hereto. 
  

 11 

 “JPMCB” means JPMorgan Chase Bank, N.A., a national banking association. 
  
 “Judgment Currency” is defined in Section 16.6.

  
 “Kelly Family” means Terence E. Adderley, his
parents, his spouse, his children and the legal descendants of each, together with the brothers and sisters of William R. Kelly and their legal descendants. 
  
 “Kelly Trust” means, collectively, (i) the William R. Kelly Irrevocable Trust dated July 14, 1972, (ii) the William R.
Kelly Trust for Terence E. Adderley, dated February 24, 1964, and (iii) the Terence E. Adderley Revocable Trust B, dated October 9, 2001, in each case as the same have been or shall be amended from time to time. 
  
 “LC Fee” is defined in Section 2.19.4. 
  
 “LC Issuer” means any Lender who agrees to be designated as
an “LC Issuer” hereunder and issue Facility LCs hereunder (or any Subsidiary or affiliate of such Lender) upon request and approval of the Company and the Agent; provided, that, no more than three Lenders may be designated as
“LC Issuers” at any time. 
  
 “LC
Obligations” means, at any time, the sum, without duplication, of (i) the aggregate undrawn stated amount under all Facility LCs outstanding at such time plus (ii) the aggregate unpaid amount at such time of all Reimbursement
Obligations. 
  
 “LC Payment Date” is defined in
Section 2.19.5. 
  
 “Lenders” means the
lending institutions listed on the signature pages of this Agreement and their respective successors and, to the extent permitted by Section 13.3, assigns. Unless otherwise specified, the term “Lenders” includes JPMCB in its capacity
as Swing Line Lender. 
  
 “Lending Installation”
means, with respect to a Lender or the Agent, any office, branch, subsidiary or affiliate of such Lender or the Agent, as the case may be. 
  
 “Leverage Ratio” means, as of the end of any fiscal quarter, the ratio of (a) Total Indebtedness at such date to (b) Total
Capitalization at such date, in each case calculated on a consolidated basis for the Company and its Subsidiaries in accordance with Agreement Accounting Principles. 
  
 “Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, fixed or floating charge,
assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional
sale, Capitalized Lease or other title retention agreement). 
  
 “Loan” means, with respect to a Lender, such Lender’s Revolving Credit Loans or Alternate Currency Loans, and, with respect to the Swing Line Lender, Swing Line Loans. 
  
 “Loan Documents” means this Agreement, the Notes, the
Facility LC Applications, the Alternate Currency Addendums and the other agreements, certificates and other documents contemplated hereby or executed or delivered pursuant hereto by any Borrower or any Guarantor at any time on or after the date of
execution of this Agreement with or in favor of the Agent or any Lender. 
  

 12 

 “Margin Stock” means margin stock as defined in Regulations G, T, U or X. 
  
 “Material Adverse Effect” means a material adverse effect on
(i) the business, Property, condition (financial or otherwise) or results of operations of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Guarantor to pay its Obligations under this Agreement, including the
Guaranty, or (iii) the validity or enforceability of this Agreement, including the Guaranty, the Notes or the Alternate Currency Addendums. 
  
 “Modify” and “Modification” are defined in Section 2.19.1. 
  
 “Moody’s” means Moody’s Investors Service, Inc.

  
 “Multiemployer Plan” means a plan defined in
Section 4001(a)(3) of ERISA to which the Company or any member of the Controlled Group has an obligation to contribute. 
  
 “National Currency Unit” means the unit of currency (other than a Euro unit) of each member state of the European Union that participates
in the third stage of Economic and Monetary Union. 
  
 “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from Rate Hedging Agreements and other
Financial Contracts. “Unrealized losses” means the fair market value of the cost to such Person of replacing such Rate Hedging Agreement or Financial Contract as of the date of determination (assuming the Rate Hedging Agreement or
Financial Contract were to be terminated as of that date), and “unrealized profits” means the fair market value of the gain to such Person of replacing such Rate Hedging Agreement or Financial Contract as of the date of determination
(assuming such Rate Hedging Agreement or Financial Contract were to be terminated as of that date). 
  
 “Net Worth” means the consolidated shareholder’s equity of the Company and its Subsidiaries, including minority interests, all on a
consolidated basis in accordance with Agreement Accounting Principles, provided that the amount of foreign currency translation shall be excluded at all times. 
  
 “Non-Excluded Taxes” is defined in Section 3.6.1. 
  
 “Notes” means the collective reference to the Revolving
Credit Notes. 
  
 “Notice of Assignment” is
defined in Section 13.3.2. 
  
 “Notice of
Drawdown” means a notice substantially in the form attached hereto as Exhibit D. 
  
 “Obligations” of a Borrower means, the unpaid principal of and interest on the Loans of such Borrower, all Reimbursement Obligations of such Borrower, all Rate Hedging Obligations of such Borrower to
any Lender and all other obligations and liabilities of such Borrower under this Agreement and the other Loan Documents (including, without limitation, interest accruing at the then applicable rate provided in this Agreement or any other applicable
Loan Document after the maturity of the Loans and interest accruing at the then applicable rate provided in this Agreement or any other applicable Loan Document after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to such Borrower, whether or not a claim for post-filing or 

  

 13 

 
post-petition interest is allowed in such proceeding), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, this Agreement, the other Loan Documents or any other document made, delivered or given in connection therewith, in each case whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all reasonable fees and disbursements of counsel to the Agent or to the Lenders that are required to be paid by such Borrower pursuant to the terms of this
Agreement or any other Loan Document). Obligations of the Guarantor shall include collectively the Obligations of all of the Borrowers and the obligations of the Guarantor under its Guaranty as provided in this Agreement. 
  
 “Obligor” means any Person which is obligated to make
payments for the provision of goods and services pursuant to a Contract. 
  
 “Off Balance Sheet Liability” of a Person means (i) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability
under any Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any liability under any so-called “synthetic lease” transaction entered into by such Person, or (iv) any obligation arising with respect to any
other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person, but excluding from this clause (iv) Operating Leases. 
  
 “Operating Lease” of a Person means any lease of Property
(other than a Capitalized Lease) by such Person as lessee. 
  
 “Original Dollar Amount” means, in relation to an Advance, the amount thereof requested in the Notice of Drawdown relating thereto or, if such Advance is not denominated in Dollars, the U.S. Dollar Equivalent of such
amount, calculated as at the date of such Notice of Drawdown. 
  
 “Outstanding Credit Exposure” means, as to any Lender at any time, the sum of (i) the U.S. Dollar Equivalent on such date of the aggregate unpaid principal amount of Loans outstanding in respect of such Lender at
such time, plus (ii) an amount equal to its Pro Rata Share of the LC Obligations at such time, plus (iii) an amount equal to its Pro Rata Share of the aggregate principal amount of Swing Line Loans outstanding at such time. 
  
 “Participants” is defined in Section 13.2.1.

  
 “Payment Date” means each
February 28, May 30, August 30 and November 30 occurring after the Effective Date, commencing February 28, 2006. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto. 
  
 “Permitted Currency” shall mean any Alternate Currency and
any Syndicated Currency. 
  
 “Person” means any
natural person, corporation, firm, joint venture, limited liability company, partnership, association, enterprise, company or other entity or organization, or any government or political subdivision or any agency, department or instrumentality
thereof. 
  
 “Plan” means an employee pension
benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code as to which the Company or any member of the Controlled Group has any obligation to contribute to on or after the
Effective Date. 
  

 14 

 “Pounds Sterling” or “Pounds” shall mean the lawful currency of the
United Kingdom. 
  
 “Pricing Schedule” means the
Schedule attached hereto as Exhibit A. 
  
 “Prime
Rate” means a rate per annum equal to the prime rate of interest announced from time to time by JPMCB or its parent (which is not necessarily the lowest rate charged to any customer), changing when and as said prime rate changes.

  
 “Property” of a Person means any and all
property, whether real, personal, tangible, intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person. 
  
 “Pro Rata Share” means, for each Lender, the ratio of such Lender’s Commitment (calculated using the U.S. Dollar Equivalent
thereof) to the Aggregate Commitments (calculated using the U.S. Dollar Equivalent thereof), provided, that (a) with respect to Revolving Credit Loans, LC Obligations and Swing Line Loans, Pro Rata Share means, for each Lender, the
ratio such Lender’s Revolving Credit Commitment bears to the Aggregate Revolving Credit Commitments, and (b) with respect to Alternate Currency Loans for any Alternate Currency Facility, Pro Rata Share means, for each Alternate Currency
Lender for each Alternate Currency Facility, the ratio such Alternate Currency Lender’s Alternate Currency Commitment for such Alternate Currency Facility bears to the aggregate Alternate Currency Commitments for such Alternate Currency
Facility. If at any time the Commitments have been terminated, the amount of any Commitment for the purposes of this definition of “Pro Rata Share” only shall be deemed equal to the amount of such Commitment immediately prior to its
termination. 
  
 “Purchasers” is defined in
Section 13.3.1. 
  
 “Qualified Receivables
Transaction” means any transaction or series of transactions that may be entered into by the Company or any Subsidiary pursuant to which the Company or any Subsidiary may sell, convey or otherwise transfer to an unaffiliated entity, or any
other unaffiliated Person, any accounts or notes receivable and rights related thereto, provided that the Receivables Transaction Attributed Indebtedness incurred in such transaction or series of transactions does not exceed $100,000,000.

  
 “Quotation Date” means, in relation to any
period for which an interest rate is to be determined hereunder, the day on which quotations would ordinarily be given by prime banks in the London Interbank Market for deposits in the currency in relation to which such rate is to be determined for
delivery on the first day of that period, provided that, if, for any such period, quotations would ordinarily be given on more than one date, the Quotation Date for that period shall be the last of those dates. 
  
 “Rate Hedging Agreement” means an agreement, device or
arrangement providing for payments which are related to fluctuations of interest rates, exchange rates or forward rates, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate currency or interest rate options, puts and warrants. 
  
 “Rate Hedging Obligations” of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and
whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all Rate Hedging Agreements, and (b) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Hedging Agreement. 
  

 15 

 “Receivables Transaction Attributed Indebtedness” means the amount of obligations
outstanding under the legal documents entered into as part of any Qualified Receivables Transaction on any date of determination that would be characterized as principal if such Qualified Receivables Transaction were structured as a secured lending
transaction rather than as a purchase. 
  
 “Reference
Lenders” means JPMCB and The Royal Bank of Scotland. 
  
 “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal Reserve System. 
  
 “Regulation G” means Regulation G of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board
of Governors. 
  
 “Regulation T” means Regulation
T of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors. 
  
 “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as from time to
time in effect and any successor or other regulation or official interpretation of said Board of Governors. 
  
 “Regulation X” means Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any
successor or other regulation or official interpretation of said Board of Governors. 
  
 “Reimbursement Obligations” means, at any time, the aggregate of all obligations of the Company then outstanding under Section 2.19 to reimburse the LC Issuer for amounts paid by the LC Issuer in
respect of any one or more drawings under Facility LCs. 
  
 “Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section with respect to a Plan, excluding, however, such events as to which the PBGC by regulation
waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event, provided, however, that a failure to meet the minimum funding standard of Section 412 of the Code and of
Section 302 of ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code. 
  
 “Required Lenders” means (a) at any time prior to the
termination of the Commitments, Lenders holding not less than 51% of the U. S. Dollar Equivalent of the Aggregate Commitments of all Lenders; and (b) at any time after the termination of the Commitments, Lenders whose Outstanding Credit
Exposure aggregates at least 51% of the Aggregate Outstanding Credit Exposure of all Lenders. 
  
 “Requirement of Law” means as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject. 
  

 16 

 “Reserve Requirement” means, with respect to an Interest Period, the maximum aggregate
reserve requirement (including all basic, supplemental, marginal and other reserves) under any regulations of the Board of Governors of the Federal Reserve System or other Governmental Authority having jurisdiction with respect thereto dealing with
reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D). 
  
 “Revolving Credit Advance” means a borrowing hereunder (or continuation thereof) consisting of the several Revolving Credit Loans made on
the same Borrowing Date (or date of continuation) by the Lenders to the Company of the same type and, in the case of Eurocurrency Loans, for the same Interest Period. 
  
 “Revolving Credit Commitment” means, as to any Lender at any time, its obligation to make Revolving Credit
Loans to, and participate in Swing Line Loans and Facility LCs issued upon the application of, the Company in an aggregate amount not to exceed at any time outstanding the U.S. Dollar amount set forth opposite such Lender’s name in
Schedule 1.1(a) under the heading “Revolving Credit Commitments” or as otherwise established pursuant to Section 13.3, as such amount may be reduced from time to time pursuant to Sections 2.4, 13.3 and the other applicable provisions
hereof, and “Revolving Credit Commitments” means the aggregate of all the Lenders’ Revolving Credit Commitments. 
  
 “Revolving Credit Loans” means, with respect to a Lender, such Lender’s loans made pursuant to Section 2.1(a). 
  
 “Revolving Credit Note” is defined in Section 2.2.3.

  
 “S&P” means Standard &
Poor’s Rating Services, a division of The McGraw Hill Companies, Inc. 
  
 “Sale and Leaseback Transaction” means any sale or other transfer of Property by any Person with the intent to lease such Property as lessee. 
  
 “Section” means a numbered section of this Agreement, unless
another document is specifically referenced. 
  
 “Significant Subsidiary” shall mean any Subsidiary which is a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X under the Securities Exchange Act of 1934. 
  
 “Single Employer Plan” means a Plan which is maintained by
the Company or any member of the Controlled Group for employees of the Company or any member of the Controlled Group. 
  
 “Subsidiary” of a Person means (a) any corporation more than 50% of the outstanding securities having ordinary voting power of which
shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, or (b) any partnership, limited liability company, association, joint
venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. Unless otherwise expressly provided, all references herein to a
“Subsidiary” shall mean a Subsidiary of the Company. 
  
 “Substantial Portion” means, with respect to the Property of the Company and its Subsidiaries, Property which (a) represents more than 15% of the consolidated assets of the Company and its 

  

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Subsidiaries as would be shown in the consolidated financial statements of the Company and its Subsidiaries as at the beginning of the twelve-month period
ending with the month in which such determination is made, or (b) is responsible for more than 15% of the consolidated net sales or of the consolidated net income of the Company and its Subsidiaries as reflected in the financial statements
referred to in clause (a) above. 
  
 “Swing Line
Lender” means JPMCB or such other Lender which may succeed to its rights and obligations as Swing Line Lender pursuant to the terms of this Agreement. 
  

“Swing Line Loan” means a Loan made available to the Company by the Swing Line Lender pursuant to Section 2.16. 
  
 “Syndicated Currency” means Dollars and any Foreign
Syndicated Currency. 
  
 “Total Assets” means, as
of any date, the total assets of the Company and its Subsidiaries on a consolidated basis as of such date in accordance with Agreement Accounting Principles. 
  
 “Total Capitalization” means, as of any date, the sum of (a) the Net Worth at such date plus (b) Total Indebtedness at such
date. 
  
 “Total Indebtedness” means, as of any
date, all Indebtedness of the Company and its Subsidiaries on a consolidated basis as of such date. 
  
 “Transferee” is defined in Section 13.4. 
  
 “Type” means, with respect to any Advance, its nature as a Floating Rate Advance or a Eurocurrency Advance and with respect to any Loan,
its nature as a Floating Rate Loan or a Eurocurrency Loan. 
  
 “Unfunded Liabilities” means the amount (if any) by which the actuarial present value of all benefit liabilities under all Single Employer Plans exceeds the fair market value of all such Plan assets allocable to such
benefit liabilities, all determined as of the then most recent valuation date for such Plans using FASB actuarial assumptions for single employer plan terminations. 
  
 “Unmatured Default” means an event which but for the lapse of time or the giving of notice, or both, would
constitute a Default. 
  
 “U.S. Dollar
Equivalent” or “Dollar Equivalent” means, on any date, with respect to any amount denominated in U.S. Dollars, such amount denominated in U.S. Dollars, and, with respect to an amount denominated in any currency other than
U.S. Dollars, the equivalent in U.S. Dollars of such amount determined at the Exchange Rate on the date of determination of such equivalent. In making any determination of the U.S. Dollar Equivalent for purposes of calculating the amount of
Loans to be borrowed from the respective Lenders on any Borrowing Date (including any continuation or conversion pursuant to Section 2.8), the Agent shall use the relevant Exchange Rate in effect on the date on which the interest rate for such
Loans (including any continuation or conversion pursuant to Section 2.8) is determined pursuant to the provisions of this Agreement and the other Loan Documents. 
  
 “Wholly-Owned Subsidiary” of a Person means (a) any Subsidiary of which 98% or more of the outstanding
voting securities of which shall at the time be owned or controlled, directly or indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or 

  

 18 

 
more Wholly-Owned Subsidiaries of such Person, or (b) any partnership, limited liability company, association, joint venture or similar business
organization 98% or more of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. 
  
 The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms. 
  
 ARTICLE II 
  
 THE CREDITS 
  
 2.1 Commitments. 
  
 (a) From and including the Effective Date and prior to the Facility
Termination Date, each Lender severally agrees, on the terms and conditions set forth in this Agreement, to (i) make or allow there to be continued and converted Revolving Credit Loans denominated in any Syndicated Currency to the Company and
(ii) participate in Swing Line Loans and Facility LCs issued upon the request of the Company, from time to time so long as after giving effect thereto (and to any other Credit Extension to be advanced or continued and to any concurrent
repayment of Loans) (i) the U.S. Dollar Equivalent of the Aggregate Outstanding Revolving Credit Exposure of such Lender is equal to or less than its Revolving Credit Commitment, (ii) the U.S. Dollar Equivalent of the Aggregate
Outstanding Revolving Credit Exposure of all Lenders does not exceed the Aggregate Revolving Credit Commitments and (iii) the U.S. Dollar Equivalent of the Aggregate Outstanding Credit Exposure of all Lenders does not exceed the Aggregate
Commitments. Subject to the terms of this Agreement, the Company may borrow, repay and reborrow Revolving Credit Loans at any time prior to the Facility Termination Date. The Commitments to lend hereunder shall expire on the Facility Termination
Date (or such earlier date as may be required pursuant to the provisions hereof). The LC Issuer will issue Facility LCs hereunder on the terms and conditions set forth in Section 2.19. 
  
 (b) Subject to the terms and conditions of this Agreement and the applicable
Alternate Currency Addendum, from and including the later of the date of this Agreement and the date of execution of the applicable Alternate Currency Addendum and prior to the Facility Termination Date (unless an earlier termination date shall be
specified in the applicable Alternate Currency Addendum), the Agent and the applicable Alternate Currency Lenders severally agree, on the terms and conditions set forth in this Agreement and in the applicable Alternate Currency Addendum, to make or
allow there to be continued Alternate Currency Advances under such Alternate Currency Addendum to the applicable Borrower party to such Alternate Currency Addendum from time to time in the applicable Alternate Currency, in an amount not to exceed
each such Alternate Currency Lender’s applicable Alternate Currency Commitment; provided, however, at no time shall (i) the U.S. Dollar Equivalent of the Aggregate Alternate Currency Commitments exceed $25,000,000,
(ii) the U.S. Dollar Equivalent of the Alternate Currency Advances for any specific Alternate Currency exceed the aggregate of the Alternate Currency Commitments for that Alternate Currency, (iii) the U.S. Dollar Equivalent of
the aggregate outstanding principal amount of the Alternate Currency Loans under any Alternate Currency Facility of any Lender exceed its Alternate Currency Commitment for such Alternate Currency Facility, and (iv) the U.S. Dollar
Equivalent of the Aggregate Outstanding Credit Exposure of all Lenders exceed the Aggregate Commitments. Each Alternate Currency Advance shall consist of Alternate Currency Loans made by each applicable Alternate Currency Lender ratably in
proportion to such Alternate Currency Lender’s respective Alternate Currency Share. Subject to the terms of this Agreement and the applicable Alternate Currency Addendum, the Borrowers may borrow, repay and reborrow Alternate Currency 

  

 19 

 
Advances at any time prior to the Facility Termination Date. On the Facility Termination Date, the outstanding principal balance of the Alternate Currency
Advances shall be paid in full by the applicable Borrower and prior to the Facility Termination Date prepayments of the Alternate Currency Advances shall be made by the applicable Borrower if and to the extent required by this Agreement. 

 
 (c) If for any reason any applicable Alternate Currency Lender fails to
make payment to the Agent of any amount due under this Agreement and the applicable Alternate Currency Addendum, the Agent shall be entitled to receive, retain and apply against such obligation the principal and interest otherwise payable to such
Alternate Currency Lender hereunder until the Agent receives such payment from such Alternate Currency Lender or such obligation is otherwise fully satisfied. In addition to the foregoing, if for any reason any Alternate Currency Lender fails to
make payment to the Agent of any amount due under this Agreement and the applicable Alternate Currency Addendum, such Alternate Currency Lender shall be deemed, at the option of the Agent, to have unconditionally and irrevocably purchased from the
applicable Agent, without recourse or warranty, an undivided interest in and participation in the applicable Alternate Currency Advance in the amount such Alternate Currency Lender was required to pay pursuant to this Agreement and the applicable
Alternate Currency Addendum, and such interest and such participation may be recovered from such Alternate Currency Lender together with interest thereon at the rate per annum equal to the Agent’s cost of funds for each day during the period
commencing on the date of demand by the Agent and ending on the date such obligation is fully satisfied. 
  
 (d) The Company may, by written notice to the Agent request the establishment of additional Alternate Currency Facilities in additional Alternate
Currencies (other than Syndicated Currencies) provided the U.S. Dollar Equivalent of the aggregate amount of all of the Alternate Currency Commitments does not exceed $25,000,000 (“Request for a New Alternate Currency
Facility”). The Agent will promptly forward to the Lenders any Request for a New Alternate Currency Facility received from the Company; provided each Lender shall be deemed not to have agreed to such request unless its written
consent thereto has been received by the Agent within ten (10) Business Days from the date of such notification by the Agent to such Lender; provided, further that any written consent delivered after the passage of such ten
(10) Business Day period shall be effective with respect to such Lender. In the event that at least one Lender consents to such Request for a New Alternate Currency Facility, upon execution of the applicable Alternate Currency Addendum and the
other documents, instruments and agreements required pursuant to this Agreement and such Alternate Currency Addendum, the new Alternate Currency Facility shall be established. Upon the establishment of any Alternate Currency Facility under this
Section 2.1(d), the relevant Borrower may, at its option and upon ten (10) Business Days prior written notice to the Agent, activate the Alternate Currency Commitments established under such Alternate Currency Facility, which notice shall
specify the Alternate Currency Commitment which is being activated, the amount of such activation stated in U.S. Dollars and the requested date of activation. (Such activation notice may be provided to the Agent at the time of the Request for a New
Alternate Currency Facility in the event the Borrower desires to activate the Alternate Currency Commitment immediately upon establishment of the Alternate Currency Facility in which case no waiting period shall be operative and only the advance
notice period required by Section 2.3(b)(ii) shall be required). Upon activation of such Alternate Currency Commitment of any Alternate Currency Lender, (i) Alternate Currency Loans may be made under such Alternate Currency Facility,
(ii) the amount of such Alternate Currency Lender’s Revolving Credit Commitment shall be immediately reduced by the amount of such Lender’s new Alternate Currency Commitment, (iii) the Aggregate Revolving Credit Commitments shall
be immediately reduced by the aggregate amount of such Alternate Currency Commitments, and (iv) the Pro Rata Share of the Revolving Credit Commitment of each Lender shall be recalculated by the Agent taking into effect the reduced Revolving
Credit Commitment of such Alternate Currency Lender. After activation of any Alternate Currency Commitment, the 

  

 20 

 
Borrower may from time to time thereafter deactivate such Alternate Currency Commitment upon ten (10) Business Days prior written notice to the Agent,
specifying the Alternate Currency Commitment which is being deactivated, the amount of the Alternate Currency Commitment being deactivated stated in U.S. Dollars and the requested date of such deactivation. Upon deactivation of such Alternate
Currency Commitment of any Alternate Currency Lender, (i) the amount of such Alternate Currency Lender’s Revolving Credit Commitment shall be immediately increased by the amount of such Lender’s Alternate Currency Commitment
deactivated, (ii) the Aggregate Revolving Credit Commitments shall be immediately increased by the aggregate amount of such Alternate Currency Commitments deactivated, and (iii) the Pro Rata Share of the Revolving Credit Commitment of each
Lender shall be recalculated by the Agent taking into effect the increased Aggregate Revolving Credit Commitments. The Agent shall, upon any activation or deactivation under this Section 2.1(d), distribute a revised Schedule 1.1(a) to all of
the Lenders which shall indicate each Lender’s Revolving Credit Commitment and, if any, Alternate Currency Commitments, together with such Lender’s Pro Rata Share of the Aggregate Commitments and Aggregate Revolving Credit Commitments,
which new Schedule 1.1(a) shall automatically supersede any prior Schedule 1.1(a). Alternate Currency Commitments may be reactivated and deactivated from time to time pursuant to this Section 2.1(d). 
  
 (e) Except as otherwise required by applicable law, in no event shall the
Agent or Alternate Currency Lenders have the right to accelerate the Alternate Currency Advances outstanding under any Alternate Currency Addendum or to terminate their Alternate Currency Commitments (if any), except that such Agent and Alternate
Currency Lenders shall, in each case, have such rights upon an acceleration of the Loans and a termination of the Commitments pursuant to Section 8.1. 
  
 (f) Immediately and automatically upon the occurrence of a Default under Sections 7.6 or 7.7, (A) each Lender shall be deemed to have unconditionally
and irrevocably purchased from each Alternate Currency Lender, without recourse or warranty, an undivided interest in and participation in each Alternate Currency Loan ratably in accordance with such Lender’s Pro Rata Share of the Aggregate
Commitments, (B) immediately and automatically all Alternate Currency Loans shall be converted to and redenominated in Dollars equal to the U. S. Dollar Equivalent of each such Alternate Currency Loan determined as of the date of such
conversion, and (C) each Alternate Currency Lender shall be deemed to have unconditionally and irrevocably purchased from each Lender, without recourse or warranty, an undivided interest in and participation in each Revolving Credit Loan and
each LC Obligation ratably in accordance with such Lender’s Pro Rata Share of the Aggregate Commitments. Each of the Lenders shall pay to the applicable Alternate Currency Lender not later than two (2) Business Days following a request for
payment from such Lender, in Dollars, an amount equal to the undivided interest in and participation in the Alternate Currency Loan purchased by such Lender pursuant to this Section 2.1(f), and each of the Alternate Currency Lenders shall pay
to the applicable Lender not later than two (2) Business Days following a request for payment from such Lender, in Dollars, an amount equal to the undivided interest in and participation in the Revolving Credit Loans and LC Obligations
purchased by such Alternate Currency Lender pursuant to this Section 2.1(f), it being the intent of the Lenders that following such equalization payments, each Lender shall hold its Pro Rata Share of the Aggregate Outstanding Credit Exposure
based on its Pro Rata Share of the Aggregate Commitments. In the event that any Lender fails to make payment to any other Lender of any amount due under this Section 2.1(f), the Agent shall be entitled to receive, retain and apply against such
obligation the principal and interest otherwise payable to such Lender hereunder until the Agent receives from such Lender an amount sufficient to discharge such Lender’s payment obligation as prescribed in this Section 2.1(f) together
with interest thereon at the rate per annum equal to the Agent’s cost of funds for each day during the period commencing on the date of demand by the Agent and ending on the date such obligation is fully satisfied. 
  

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 (g) The Company may from time to time elect to increase the Aggregate Commitments so long as, after
giving effect thereto, the total amount of the Aggregate Commitments does not exceed $225,000,000. The Company may arrange for any such increase to be provided by one or more Lenders (each Lender so agreeing, electing in its sole discretion, to an
increase in its Commitment, an “Increasing Lender”), or by one or more banks, financial institutions or other entities (each such bank, financial institution or other entity, an “Augmenting Lender”), to increase
their existing Commitments, or extend Commitments, provided that (i) each Augmenting Lender, shall be subject to the approval of the Company and the Agent and (ii) the Company and each applicable Increasing Lender or Augmenting
Lender shall execute all such documentation as the Agent shall reasonably specify as necessary to give effect to such increase. Increases and new Commitments created pursuant to this clause (g) shall become effective on the date agreed by the
Company, the Agent and the relevant Increasing Lenders and Augmenting Lenders, and the Agent shall notify each affected Lender thereof. Notwithstanding the foregoing, no increase in the Aggregate Commitments (or in the Commitment of any Increasing
Lender or Augmenting Lender), shall become effective under this Section 2.1(g) unless, (i) on the proposed date of the effectiveness of such increase, the conditions set forth Section 4.2 shall be satisfied and the Agent shall have
received a certificate to that effect dated such date and executed by a responsible officer of the Company. On the effective date of any increase in the Aggregate Commitments, (i) each relevant Increasing Lender and Augmenting Lender shall make
available to the Agent such amounts in immediately available funds and in the relevant currency or currencies as the Agent shall determine, for the benefit of the other relevant Lenders, as being required in order to cause, after giving effect to
such increase and the use of such amounts to make payments to such other relevant Lenders, each Lender’s portion of the Aggregate Outstanding Credit Exposure to equal its Pro Rata Share of the Aggregate Outstanding Credit Exposure and
(ii) the Company shall be deemed to have repaid and reborrowed all outstanding Loans as of the date of any increase in the relevant Commitments (with such reborrowing to consist of the Loans, with related Interest Periods if applicable,
specified in a notice delivered by the Company in accordance with the requirements of Section 2.3). The deemed payments made pursuant to clause (ii) of the immediately preceding sentence in respect of each Eurocurrency Loan shall be
subject to indemnification by the Company pursuant to the provisions of Section 3.4 if the deemed payment occurs other than on the last day of the related Interest Periods. On the effective date of any increase in the Aggregate Commitments,
each Augmenting Lender and each Increasing Lender shall be deemed a Lender for purposes of this Agreement. The Agent shall promptly distribute a revised Schedule 1.1(a) to all of the Lenders, which new Schedule 1.1(a) shall automatically supercede
any prior Schedule 1.1(a). 
  
 (h) Effective Date. This Agreement
and the Commitments hereunder shall be effective, subject to Section 4.1, as of the Effective Date, provided, that, the Borrowers may give notice of a request for an Advance as of November 25, 2005 for purposes of satisfying
the notice requirements for requests for Advances and Section 3.4 shall be effective as of November 25, 2005. 
  
 2.2 Repayment of Loans; Evidence of Debt; Types of Advances. 
  
 2.2.1 The Aggregate Outstanding Credit Exposure and all other unpaid Obligations shall be paid in full to the Agent for the
benefit of the Lenders by the relevant Borrower on the Facility Termination Date. Each Borrower hereby unconditionally promises to pay to the Agent for the account of each Lender in U.S. Dollars or the applicable Foreign Currency, as the case may
be, for such Loan, the then unpaid principal amount of each Loan of such Lender to such Borrower on the Facility Termination Date and on such other dates and in such other amounts as may be required from time to time pursuant to this Agreement. Each
Borrower hereby further agrees to pay to the Agent for the account of each Lender interest in U.S. Dollars or the applicable Foreign Currency, as the case may be, for such Loan, on the unpaid principal amount of the Loans advanced to it and from
time to time outstanding until payment thereof in full at the rates per annum, and on the dates, set forth in Section 2.9. 
  

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 2.2.2 The books and records of the Agent and of each Lender shall, absent manifest error, to the extent
permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrowers therein recorded; provided, however, that the failure of any Lender or the Agent to maintain any such
books and records or any error therein, shall not in any manner affect the obligation of the Borrowers to repay (with applicable interest) the Loans made to such Borrowers by such Lender in accordance with the terms of this Agreement. 
  
 2.2.3 The Company agrees that, upon the request to the Agent by any Lender,
the Company will execute and deliver to such Lender promissory notes of the Company evidencing the Revolving Credit Loans of such Lender, substantially in the form of Exhibit C with appropriate insertions as to date and principal amount (each, a
“Revolving Credit Note”); provided, that the delivery of such Notes shall not be a condition precedent to the Effective Date. 
  
 2.2.4 The Advances may be Floating Rate Advances or Eurocurrency Advances, or a combination thereof, selected by the Company. 
  
 2.3 Procedures for Borrowing. 
  
 (a) The Company may borrow under the Commitments from time to time prior to
the Facility Termination Date on any Business Day. The Foreign Subsidiary Borrowers may borrow under the Alternate Currency Commitments from time to time prior to the Facility Termination Date on any Business Day. 
  
 (b) (i) The Company may from time to time request the making of a
Revolving Credit Advance by giving irrevocable notice (a “Borrowing Notice”) to the Agent (which notice must be received by the Agent prior to 10:00 A.M., local time of the Applicable Lending Installation of the Agent, on the same Business
Day of the Borrowing Date of each Floating Rate Advance and not less than three Business Days prior to the requested Borrowing Date of each Eurocurrency Advance) specifying in each case (i) the amount to be borrowed, (ii) the requested
Borrowing Date (which shall be a Business Day), (iii) the currency in which such Loan shall be denominated and its Original Dollar Amount, and (iv) in the case of each Eurocurrency Advance, the length of the initial Interest Period
therefor. Each borrowing shall be in Dollars or a Foreign Syndicated Currency the amounts of which shall be (a) (if less than the Aggregate Available Revolving Credit Commitments) equal to or greater than $1,000,000 and in integral multiples of
$500,000 thereafter (or, if the Advance is to be denominated in a Foreign Syndicated Currency, such comparable and convenient amount thereof as the Agent may from time to time specify) or (b) equal to the amount of the Aggregate Available
Revolving Credit Commitments. Upon receipt of any such notice from the Company relating to a Revolving Credit Advance, the Agent shall promptly notify the Lenders. Not later than 1:00 P.M., local time at the Agent’s funding office for the
Company, on the requested Borrowing Date, each Lender shall make an amount equal to its Pro Rata Share of the principal amount of each Revolving Credit Advance requested to be made on such Borrowing Date available to the Agent at the Agent’s
funding office for the Company specified by the Agent from time to time by notice to the Lenders and in immediately available or other same day funds customarily used for settlement in Dollars or in the relevant Foreign Syndicated Currency (as the
case may be). The amounts made available by each Lender will then be made available to the Company at the funding office for the Company and in like funds as received by the Agent. 
  
 (ii) A Borrower may from time to time request the making of an Alternate Currency Loan by giving irrevocable notice to the
person to whom notice should be delivered as provided in the applicable Alternate Currency Addendum (which notice must be received by such person 

  

 23 

 
prior to 10:00 A.M., local time, not less than three Business Days prior to the requested Borrowing Date) specifying in each case (i) the amount to be
borrowed, (ii) the requested Borrowing Date (which shall be a Business Day falling one month or more before the Facility Termination Date), (iii) the currency in which such Loan shall be denominated and its Original Dollar Amount,
(iv) the length of the initial Interest Period therefor and, (v) such other information as may be required pursuant to the applicable Alternate Currency Addendum. Each borrowing shall be in an Alternate Currency the amounts of which shall
be (a) (if less than the aggregate Available Alternate Currency Commitments for the applicable Alternate Currency) equal to or greater than $1,000,000 and in integral multiples of $500,000 thereafter (or, such comparable and convenient amount
thereof as the Agent or the Applicable Alternate Currency Lenders may from time to time specify) or (b) equal to the amount of the aggregate Available Alternate Currency Commitments for the applicable Alternate Currency. Upon receipt of any
such notice from any such Borrower relating to an Alternate Currency Loan, the person receiving such notice shall promptly notify the applicable Alternate Currency Lenders. Not later than 2:00 P.M., local time at the funding office for such
Borrower, on the requested Borrowing Date, each applicable Alternate Currency Lender shall make an amount equal to its Pro Rata Share of the principal amount of each Alternate Currency Advance requested to be made on such Borrowing Date available to
the Borrower at the person’s funding office for such Borrower specified by such person from time to time by notice to the applicable Alternate Currency Lenders and in immediately available or other same day funds customarily used for settlement
in the relevant Alternate Currency. The amounts made available by each such Alternate Currency Lender will then be made available to the relevant Borrower at the funding office for such Borrower and in like funds as received by such person. In the
event of any conflict between the terms and condition of this Section 2.3(b)(ii) and an Alternate Currency Addendum, the terms of the applicable Alternate Currency Addendum shall control. 
  
 (c) If a Borrower requests that an Advance be denominated in a Foreign
Currency but the Agent is of the reasonable opinion that it is not feasible for such Advance to be denominated in such Foreign Currency, then the Agent shall notify the Borrower and the Lenders not later than 11:00 a.m. local time on the Quotation
Date for such Advance and such Advance shall not be made unless the Borrower and the Lenders agree that such Advance shall be made in Dollars or another Foreign Currency which is not similarly affected. 
  
 2.4 Termination or Reduction of Commitments. The Company may
permanently reduce the Revolving Credit Commitments, in whole or in part, ratably among the Lenders in integral multiples of $5,000,000, upon at least three Business Days’ written notice to the Agent, and which notice shall specify the amount
of any such reduction, provided, however, that the Aggregate Revolving Credit Commitments may not be reduced below the Aggregate Outstanding Revolving Credit Exposure of all Lenders and the Aggregate Commitments may not be reduced below the
Aggregate Outstanding Credit Exposure of all Lenders. In addition, all accrued facility fees shall be payable on the effective date of any termination of the Commitments. 
  
 2.5 Determination of Dollar Amounts. The Agent will determine the Dollar Amount of: 
  
 (a) all outstanding Loans and LC Obligations (i) on and as of the last
day of each Interest Period (but not less frequently than quarterly), (ii) on receipt of any notice from the Company as to the reduction of the Aggregate Commitments, and (iii) on any other Business Day elected by the Agent in its
discretion or upon instruction by the Required Lenders; and 
  
 (b) all outstanding Loans and LC Obligations, on each Business Day during which Aggregate Outstanding Credit Exposure exceeds 80% of the Aggregate Commitments. 
  

 24 

 Each day upon or as of which the Agent determines Dollar Amounts as described in the preceding clauses (a) and
(b) is herein described as a “Computation Date” with respect to each Advance for which a Dollar Amount is determined on or as of such day. If at any time the Dollar Amount of the sum of the Aggregate Outstanding Credit Exposure
exceeds the Aggregate Commitments or the Dollar Amount of the Aggregate Outstanding Revolving Credit Exposure exceeds the Aggregate Revolving Credit Commitments, the Borrowers shall immediately repay Advances in an aggregate principal amount
sufficient to eliminate any such excess. 
  
 2.6 Facility and
Agent Fees. 
  
 (a) The Company agrees to pay to the Agent
for the account of each Lender a facility fee at the rate per annum equal to the Applicable Fee Rate, on the average daily amount of each Commitment of such Lender, whether used or unused, from and including the Effective Date to but excluding the
Facility Termination Date, payable on each Payment Date hereafter and on the Facility Termination Date. The facility fee shall be payable in Dollars. 
  
 (b) The Company agrees to pay to the Agent for its own account, such other fees as agreed to between the Company and the Agent. 
  
 2.7 Optional and Mandatory Principal Payments on All Loans.

  
 2.7.1 The Company may at any time and from time to time
prepay, without premium or penalty but upon payment of any amount payable pursuant to Section 3.4, its Revolving Credit Advances in whole or in part, upon at least three Business Days’ irrevocable notice to the Agent specifying the date
and amount of prepayment. Partial payments of Revolving Credit Advances shall be in an amount such that the Dollar Amount of the principal of a Revolving Credit Loan will be reduced by $1,000,000 or any integral multiple of $500,000 principal amount
in excess thereof (or, if such prepayment relates to a Loan denominated in a Foreign Currency, such comparable and convenient amount thereof as the Agent may from time to time specify). Prepayment of any Alternate Currency Loan shall be subject to
the provisions of the applicable Alternate Currency Addendum. 
  
 2.7.2 Each prepayment and conversion pursuant to this Section 2.7 shall be accompanied by accrued and unpaid interest on the amount prepaid to the date of prepayment and any amounts payable under Section 3.4 in connection with
such payment. 
  
 2.7.3 If, at any time as of any date of
determination, either (a) the Aggregate Outstanding Credit Exposure of all Lenders exceed the Aggregate Commitments, (b) the Aggregate Outstanding Revolving Credit Exposure of all Lenders exceed the Aggregate Revolving Credit Commitments,
or (c) the U.S. Dollar Equivalent of the aggregate outstanding principal amount of Alternate Currency Advances in any Alternate Currency exceeds the Aggregate Alternate Currency Commitments for such Alternate Currency, then the Borrowers
shall immediately prepay the Advances in an amount at least equal to such excess. 
  
 2.7.4 Prepayments pursuant to this Section 2.7 shall be applied to prepay Loans made to such Borrower in such order as the Company may direct. 
  
 2.7.5 All amounts prepaid may be reborrowed and successively repaid and reborrowed, subject to the other terms and
conditions in this Agreement. 
  
 2.8 Conversion and
Continuation of Outstanding Advances. Floating Rate Advances shall 

  

 25 

 
continue as Floating Rate Advances unless and until such Floating Rate Advances are converted into Eurocurrency Advances pursuant to this Section 2.8 or
are repaid in accordance with Section 2.7. Each Eurocurrency Advance shall continue as a Eurocurrency Advance until the end of the then applicable Interest Period therefor, at which time such Eurocurrency Advance shall be automatically
converted into a Floating Rate Advance unless (x) such Eurocurrency Advance is or was repaid in accordance with Section 2.7 or (y) the Borrower shall have given the Agent a Conversion/Continuation Notice (as defined below) requesting
that, at the end of such Interest Period, such Eurocurrency Advance continue as a Eurocurrency Advance for the same or another Interest Period. Subject to the terms of Section 2.3, the Borrower may elect from time to time to convert all or any
part of a Floating Rate Advance into a Eurocurrency Advance. The Borrower shall give the Agent irrevocable notice (a “Conversion/Continuation Notice”) of each conversion of a Floating Rate Advance into a Eurocurrency Advance or
continuation of a Eurocurrency Advance not later than 10:00 a.m. (local time of the Applicable Lending Installation of the Agent) at least three Business Days prior to the date of the requested conversion or continuation, specifying: 
  
 (i) the requested date, which shall be a Business Day, of such conversion
or continuation, 
  
 (ii) the aggregate amount and Type of the
Advance which is to be converted or continued, and 
  
 (iii) the
amount of such Advance which is to be converted into or continued as a Eurocurrency Advance and the duration of the Interest Period applicable thereto. 
  
 2.9 Interest Rates, Interest Payment Dates; Interest and Fee Basis. 
  
 (a) Each Floating Rate Advance shall bear interest on the outstanding principal amount thereof, for each day from and
including the date such Advance is made or is automatically converted from a Eurocurrency Advance into a Floating Rate Advance pursuant to Section 2.8, to but excluding the date it is paid or is converted into a Eurocurrency Advance pursuant to
Section 2.8 hereof, at a rate per annum equal to the Floating Rate for such day. Changes in the rate of interest on that portion of any Advance maintained as a Floating Rate Advance will take effect simultaneously with each change in the
Alternate Base Rate. Each Eurocurrency Advance shall bear interest on the outstanding principal amount thereof from and including the first day of the Interest Period applicable thereto to (but not including) the last day of such Interest Period at
the interest rate determined by the Agent as applicable to such Eurocurrency Advance based upon the Borrower’s selections under Sections 2.3 and 2.8 and otherwise in accordance with the terms hereof. No Interest Period may end after the
Facility Termination Date. Each Alternate Currency Advance shall bear interest as specified in the applicable Alternate Currency Addendum. 
  
 (b) Interest accrued on each Loan shall be payable on each Interest Payment Date, commencing with the first such date to occur after the Effective Date
and at maturity. 
  
 (c) Interest shall be payable for the day an
Advance is made but not for the day of any payment of principal on the amount paid if payment is received prior to noon (local time) at the place of payment. If any payment of principal of or interest on an Advance or of any fee shall become due on
a day which is not a Business Day, except as otherwise provided in the definition of Interest Period, such payment shall be made on the next succeeding Business Day and, in the case of a principal payment, such extension of time shall be included in
computing interest in connection with such payment. 
  

 26 

 (d) All interest and fees (including LC fees and facility fees) shall be computed on the basis of the
actual number of days (including the first day but excluding the last day) occurring during the period such interest or fee is payable over a year comprised of 360 days (or in the case of interest denominated in Pounds Sterling, 365 days or as may
be otherwise specified in any Alternate Currency Addendum) or, in any case where market practice differs, in accordance with market practice. No Interest Period may end after the Facility Termination Date. No more than thirty (30) Revolving
Credit Advances shall be permitted to exist hereunder at any one time. 
  
 2.10 Rates Applicable After Default. Notwithstanding anything to the contrary contained in this Agreement, during the continuance of a Default or Unmatured Default the Required Lenders may, at their option, by notice to the Company
(which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 8.2 requiring unanimous consent of the Lenders to changes in interest rates), declare that no Advance may be made as, converted into or
continued (after the expiration of the current Interest Period) as a Eurocurrency Advance. Upon and during the continuance of any Default, the Required Lenders may, at their option, by notice to the Company (which notice may be revoked at the option
of the Required Lenders notwithstanding any provision of Section 8.2 requiring unanimous consent of the Lenders as to changes and interest rates) declare that (i) each Eurocurrency Advance shall bear interest for the remainder of the
applicable Interest Period at the rate otherwise applicable to such Interest Period (with the Applicable Margin automatically adjusted to the highest amount possible, notwithstanding where the Applicable Margin would otherwise be set) plus
2% per annum, (ii) each Floating Rate Advance shall bear interest at a rate per annum equal to the Floating Rate in effect from time to time plus 2% per annum, and (iii) the LC Fee payable with respect to each Facility LC shall
be increased by 2% per annum provided that, upon and during the continuance of any acceleration for any reason of any of the Obligations, the interest rate set forth above shall be applicable to all Advances without any election or action on
the part of the Agent or any Lender. 
  
 2.11 Pro Rata Payment,
Method of Payment. Each borrowing of an Advance by a Borrower from the Lenders shall be made pro rata according to the Pro Rata Shares of such Lenders in effect on the date of such borrowing. Each payment by the Company on account of any
facility fee shall be allocated by the Agent among the Lenders in accordance with their respective Pro Rata Shares. Any reduction of the Commitments of the Lenders shall be allocated by the Agent among the Lenders pro rata according to the Pro Rata
Shares of the Lenders with respect thereto. Except as otherwise provided in this Agreement, each optional prepayment by the Company on account of principal or interest on its Revolving Credit Advances shall be allocated by the Agent pro rata
according to the respective outstanding principal amounts thereof. All payments (including prepayments) to be made by a Borrower hereunder in respect of amounts denominated in Dollars, whether on account of principal, interest, fees or otherwise,
shall be made, without setoff, deduction, or counterclaim, in immediately available funds to the Agent at the Agent’s address specified pursuant to Article XIV, or at any other Lending Installation of the Agent specified in writing by the Agent
to the Company, by 10:00 A.M. (local time) on the date when due. Each payment delivered to the Agent for the account of any Lender shall be delivered promptly by the Agent to such Lender in the same type of funds that the Agent received at its
address specified pursuant to Article XIV or at any Lending Installation specified in a notice received by the Agent from such Lender. All payments (including prepayments) to be made by a Borrower on account of an Advance denominated in a Foreign
Currency, whether on account of principal, interest, fees or otherwise, shall be made without setoff, deduction, or counterclaim in the currency of such Advance (in same day or other funds customarily used in the settlement of obligations in such
currency) to the Agent for the account of the Lenders, at the payment office for such Advances specified from time to time by the Agent by notice to the Borrowers prior to 10:00 A.M. local time at such payment office on the due date thereof. The
Agent is hereby authorized to charge the account of the Company maintained with JPMCB for each payment of principal, interest and fees as it becomes due hereunder unless otherwise directed by the Company. 
  

 27 

 2.12 Telephonic Notices. Each Borrower hereby authorizes the Lenders and the Agent to extend,
convert or continue Advances and to transfer funds based on telephonic notices made by any person or persons the Agent or any Lender reasonably and in good faith believes to be an Authorized Officer. Each Borrower agrees to deliver promptly to the
Agent a written confirmation, if such confirmation is requested by the Agent or any Lender, of each telephonic notice signed by an Authorized Officer. If the written confirmation differs in any material respect from the action taken by the Agent and
the Lenders, the records of the Agent and the Lenders shall govern absent manifest error. 
  
 2.13 Notification of Advances, Interest Rates, Prepayments and Commitment Reductions. Promptly after receipt thereof, the Agent will notify each Lender of the contents of each Commitment reduction notice,
Borrowing Notice, and repayment notice received by it hereunder. The Agent will notify each Lender and the relevant Borrower of the interest rate applicable to each Advance promptly upon determination of such interest rate. Promptly after notice
from the LC Issuer, the Agent will notify each Lender of the contents of each request for issuance of a Facility LC hereunder. 
  
 2.14 Lending Installations. Each Lender may make and book its Loans and its participation in any LC Obligations and the LC Issuer may book the
Facility LCs at any Lending Installation(s) selected by such Lender or the LC Issuer, as the case may be, and may change its Lending Installation(s) from time to time. All terms of this Agreement shall apply to any such Lending Installation(s) and
the Loans, Facility LCs, participations in LC Obligations and the Notes, if any, shall be deemed held by each Lender or the LC Issuer, as the case may be, for the benefit of such Lending Installation(s). Each Lender and the LC Issuer may, by written
or telex notice to the Agent and the applicable Borrower, designate one or more Lending Installations which are to make and book Loans or issue Facility LCs and for whose account Loan payments or payments with respect to Facility LCs are to be made.

  
 2.15 Non-Receipt of Funds by the Agent. Unless a
Borrower or a Lender, as the case may be, notifies the Agent prior to the date on which it is scheduled to make payment to the Agent of (a) in the case of a Lender, the proceeds of a Loan or (b) in the case of a Borrower, a payment of
principal, interest or fees to the Agent for the account of the Lenders, that it does not intend to make such payment, the Agent may assume that such payment has been made. The 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 such Lender or Borrower, as the case may be, has not in fact made such payment to the Agent, the recipient of such payment shall, on demand by the Agent, repay to the
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 the Agent until the date the Agent recovers such amount at a rate per annum equal
to (i) in the case of payment by a Lender, the rate per annum equal to the Federal Funds Effective Rate for such day or (ii) in the case of payment by a Borrower, the interest rate applicable to the relevant Loan. 
  
 2.16 Swing Line Loans. 
  
 (a) Making of Swing Line Loans. The Swing Line Lender may elect in
its sole discretion to make revolving loans denominated in Dollars and any other currency which is readily available, freely traded and acceptable to the Swing Line Lender (the “Swing Line Loans”) to the Company solely for the Swing
Line Lender’s own account, from time to time prior to the Facility Termination Date up to an aggregate principal amount at any one time outstanding not to exceed the lesser of $30,000,000 or the Aggregate Available Revolving Credit Commitments.
The Swing Line Lender may make Swing Line 

  

 28 

 
Loans (subject to the conditions precedent set forth in Article IV), provided that the Agent and the Swing Line Lender have received a request in
writing or via telephone from an Authorized Officer of the Company for funding of a Swing Line Loans no later than 11:00 A.M., London time, or noon (Chicago time) (as determined by reference to the Applicable Lending Installation as described below
in this Section 2.16(a)), on the Business Day on which such Swing Line Loans is requested to be made with respect to each currency designated as “Same Day” on Schedule 2.16 and 11:00 A.M., London time one Business Day prior to the
Business Day on which such Swing Line Loan is requested to be made with respect to each currency designated as “One Day Notice” on Schedule 2.16, which notice shall specify the requested duration of such Swing Line Loans, not to exceed ten
(10) days unless otherwise agreed by the Swing Line Lender. All notices to the Agent and the Swing Line Lender shall be delivered by the Company (i) with respect to Swing Line Loans denominated in Dollars, to the Agent’s and the Swing
Line Lender’s Lending Installation in Chicago, Illinois, and (ii) with respect to Swing Line Loans denominated in any currency other than Dollars, to the Agent’s and the Swing Line Lender’s Lending Installation in London, United
Kingdom, unless and until otherwise directed by the Agent and the Swing Line Lender. The Swing Line Lender shall not make any Swing Line Loans in the period commencing one Business Day after the Swing Line Lender becomes aware that one or more of
the conditions precedent contained in Section 4.2 are not satisfied and ending upon the satisfaction or waiver of such condition(s). Each outstanding Swing Line Loan shall be payable on the earlier of (i) the maturity date agreed to
between the Swing Line Lender and the Company or (ii) the Facility Termination Date, with interest at the rate agreed to between the Swing Line Lender and the Company accrued thereon and shall otherwise be subject to all the terms and
conditions applicable to Loans, except that all interest thereon shall be payable to the Swing Line Lender solely for its own account. 
  
 (b) Swing Line Loans Borrowing Requests. The Company agrees to deliver promptly to the Agent and the Swing Line Lender a written confirmation of
each telephonic notice for Swing Line Loans signed by an Authorized Officer. If the written confirmation differs in any material respect from the action taken by the Swing Line Lender, the records of the Swing Line Lender shall govern, absent
manifest error. 
  
 (c) Repayment of Swing Line Loans. At
any time after making a Swing Line Loan, the Swing Line Lender may request the Company to, and upon request by the Agent the Company shall, promptly request an Advance from all Lenders to the Company and apply the proceeds of such Advance to the
repayment of any Swing Line Loans owing by the Company not later than the Business Day following the Swing Line Lender’s or Agent’s request. Notwithstanding the foregoing, upon the earlier to occur of (a) one Business Day after demand
is made by the Swing Line Lender, and (b) the Facility Termination Date, each Lender (other than the Swing Line Lender) shall irrevocably and unconditionally purchase from the Swing Line Lender, without recourse or warranty, an undivided
interest and participation in such Swing Line Loans in an amount equal to such Lender’s Pro Rata Share of such Swing Line Loans and promptly pay such amount to the Swing Line Lender in immediately available funds. Such payment shall be made by
the other Lenders whether or not a Default is then continuing or any other condition precedent set forth in Section 4.2 is then met and whether or not the Company has then requested an Advance in such amount; and such Swing Line Loans shall
thereupon be deemed to be a Loan hereunder made on the date of such purchase (except, as aforesaid, with respect to the existence of any Default or the meeting of any condition precedent specified in Section 4.2 on such date). If any Lender
fails to make available to the Swing Line Lender, any amounts due to the Swing Line Lender from such Lender pursuant to this Section, the Swing Line Lender shall be entitled to recover such amount, together with interest thereon at the rate per
annum equal to the Federal Funds Effective Rate for the first three Business Days after such Lender receives notice of such required purchase and thereafter, at the rate applicable to such Loan, payable (i) on demand, (ii) by setoff
against any payments made to the Swing Line Lender for the account of such Lender or (iii) by payment to the Swing Line Lender by 

  

 29 

 
the Swing Line Lender of amounts otherwise payable to such Lender under this Agreement. The failure of any Lender to make available to the Swing Line Lender
its Pro Rata Share of any unpaid Swing Line Loans shall not relieve any other Lender of its obligation hereunder to make available to the Swing Line Lender its Pro Rata Share of any unpaid Swing Line Loans on the date such payment is to be made, but
no Lender shall be responsible for the failure of any other Lender to make available to the Swing Line Lender its Pro Rata Share of any unpaid Swing Line Loans. 
  

2.17 Application of Payments with Respect to Defaulting Lenders. No payments of principal, interest or fees delivered to the Agent for the
account of any Defaulting Lender shall be delivered by the Agent to such Defaulting Lender. Instead, such payments shall, for so long as such Defaulting Lender shall be a Defaulting Lender, be held by the Agent, and the Agent is hereby authorized
and directed by all parties hereto to hold such funds in escrow and apply such funds as follows: 
  
 (a) First, if applicable to any payments due from the Defaulting Lender to the Agent or the Swing Line Lender under
Section 2.16; and 
  
 (b) Second, to
Loans required to be made by such Defaulting Lender on any Borrowing Date to the extent such Defaulting Lender fails to make such Loans. 
  
 Notwithstanding the foregoing, upon the termination of the Commitments and the payment and performance of all of the Obligations (other than those owing to a Defaulting
Lender), any funds then held in escrow by the Agent pursuant to the preceding sentence shall be distributed to each Defaulting Lender, pro rata in proportion to amounts that would be due to each Defaulting Lender but for the fact that it is a
Defaulting Lender. 
  
 2.18 Advances to be made in Euro. If
any Advance made (or to be made) would, but for this provision, be capable of being made either in the Euro or in a National Currency Unit, such Advance shall be made in the Euro. 
  
 2.19 Facility LCs. 
  
 2.19.1 Issuance. The LC Issuer hereby agrees, on the terms and conditions set forth in this Agreement, to issue standby and commercial letters of
credit (each, a “Facility LC”) and to renew, extend, increase, decrease or otherwise modify each Facility LC (“Modify,” and each such action a “Modification”), from time to time from and including the date of this
Agreement and prior to the Facility Termination Date upon the request of the Company; provided that immediately after each such Facility LC is issued or Modified, (i) the aggregate amount of the outstanding LC Obligations shall not
exceed $60,000,000, (ii) the Aggregate Outstanding Credit Exposure shall not exceed the Aggregate Commitment and (iii) the Aggregate Outstanding Revolving Credit Exposure shall not exceed the Aggregate Revolving Credit Commitments. No
Facility LC shall have an expiry date later than the earlier of (x) the fifth Business Day prior to the Facility Termination Date and (y) one year after its issuance or, if agreed by the LC Issuer, eighteen (18) months after its
issuance. 
  
 2.19.2 Participations. Upon the issuance or
Modification by the LC Issuer of a Facility LC in accordance with this Section 2.19, the LC Issuer shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably sold to each Lender, and each Lender shall
be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the LC Issuer, a participation in such Facility LC (and each Modification thereof) and the related LC Obligations in proportion to its Pro
Rata Share. 
  

 30 

 2.19.3 Notice. Subject to Section 2.19.1, the Company shall give the LC Issuer notice prior
to 10:00 a.m. (Chicago time) at least five Business Days prior to the proposed date of issuance or Modification of each Facility LC, specifying the beneficiary, the proposed date of issuance (or Modification) and the expiry date of such Facility LC,
and describing the proposed terms of such Facility LC and the nature of the transactions proposed to be supported thereby. Upon receipt of such notice, the LC Issuer shall promptly notify the Agent, and the Agent shall promptly notify each Lender,
of the contents thereof and of the amount of such Lender’s participation in such proposed Facility LC. The issuance or Modification by the LC Issuer of any Facility LC shall, in addition to the conditions precedent set forth in Article IV (the
satisfaction of which the LC Issuer shall have no duty to ascertain), be subject to the conditions precedent that such Facility LC shall be satisfactory to the LC Issuer and that the Company shall have executed and delivered such application
agreement and/or such other instruments and agreements relating to such Facility LC as the LC Issuer shall have reasonably requested (each, a “Facility LC Application”). In the event of any conflict between the terms of this Agreement and
the terms of any Facility LC Application, the terms of this Agreement shall control. 
  
 2.19.4 LC Fees. The Company shall pay to the Agent, for the account of the Lenders ratably in accordance with their respective Pro Rata Shares, (i) with respect to each standby Facility LC, a letter of
credit fee at a per annum rate equal to the Applicable Margin in effect from time to time on the average daily undrawn stated amount under such standby Facility LC, such fee to be payable in arrears on each Payment Date, and (ii) with respect
to each commercial Facility LC, a one-time letter of credit fee in an amount equal to the reasonable and customary fees quoted by the LC Issuer from time to time, calculated on the initial stated amount (or, with respect to a Modification of any
such commercial Facility LC which increases the stated amount thereof, such increase in the stated amount) thereof, such fee to be payable on the date of such issuance or increase (each such fee described in this sentence an “LC Fee”). The
Company shall also pay to the LC Issuer for its own account (x) at the time of issuance of each standby Facility LC, a fronting fee in an amount equal to 0.075% of the original face amount of such Facility LC, and (y) documentary and
processing charges in connection with the issuance or Modification of and draws under Facility LCs in accordance with the LC Issuer’s standard schedule for such charges as in effect from time to time. 
  
 2.19.5 Administration; Reimbursement by Lenders. Upon receipt from the
beneficiary of any Facility LC of any demand for payment under such Facility LC, the LC Issuer shall notify the Agent and the Agent shall promptly notify the Company and each other Lender as to the amount to be paid by the LC Issuer as a result of
such demand and the proposed payment date (the “LC Payment Date”). The responsibility of the LC Issuer to the Company and each Lender shall be only to determine that the documents (including each demand for payment) delivered under each
Facility LC in connection with such presentment shall be in conformity in all material respects with such Facility LC. The LC Issuer shall endeavor to exercise the same care in the issuance and administration of the Facility LCs as it does with
respect to letters of credit in which no participations are granted, it being understood that in the absence of any gross negligence or willful misconduct by the LC Issuer, each Lender shall be unconditionally and irrevocably liable without regard
to the occurrence of any Default or any condition precedent whatsoever, to reimburse the LC Issuer on demand for (i) such Lender’s Pro Rata Share of the amount of each payment made by the LC Issuer under each Facility LC to the extent such
amount is not reimbursed by the Company pursuant to Section 2.19.6 below, plus (ii) interest on the foregoing amount to be reimbursed by such Lender, for each day from the date of the LC Issuer’s demand for such reimbursement (or, if
such demand is made after 11:00 a.m. (Chicago time) on such date, from the next succeeding Business Day) to the date on which such Lender pays the amount to be reimbursed by it, at a rate of interest per annum equal to the Federal Funds Effective
Rate for the first three days and, thereafter, at a rate of interest equal to the rate applicable to Floating Rate Advances. 
  

 31 

 2.19.6 Reimbursement by Company. The Company shall be irrevocably and unconditionally obligated to
reimburse the LC Issuer on or before the applicable LC Payment Date for any amounts to be paid by the LC Issuer upon any drawing under any Facility LC, without presentment, demand, protest or other formalities of any kind; provided that
neither the Company nor any Lender shall hereby be precluded from asserting any claim for direct (but not consequential) damages suffered by the Company or such Lender to the extent, but only to the extent, caused by (i) the willful misconduct
or gross negligence of the LC Issuer in determining whether a request presented under any Facility LC issued by it complied with the terms of such Facility LC or (ii) the LC Issuer’s failure to pay under any Facility LC issued by it after
the presentation to it of a request strictly complying with the terms and conditions of such Facility LC. All such amounts paid by the LC Issuer and remaining unpaid by the Company shall bear interest, payable on demand, for each day until paid at a
rate per annum equal to (x) the rate applicable to Floating Rate Advances for such day if such day falls on or before the applicable LC Payment Date and (y) the sum of 2% plus the rate applicable to Floating Rate Advances for such day if
such day falls after such LC Payment Date. The LC Issuer will pay to each Lender ratably in accordance with its Pro Rata Share all amounts received by it from the Company for application in payment, in whole or in part, of the Reimbursement
Obligation in respect of any Facility LC issued by the LC Issuer, but only to the extent such Lender has made payment to the LC Issuer in respect of such Facility LC pursuant to Section 2.19.5. Subject to the terms and conditions of this
Agreement (including without limitation the submission of a Borrowing Notice in compliance with Section 2.3 and the satisfaction of the applicable conditions precedent set forth in Article IV), the Company may request an Advance hereunder for
the purpose of satisfying any Reimbursement Obligation. 
  
 2.19.7
Obligations Absolute. The Company’s obligations under this Section 2.19 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Company may
have or have had against the LC Issuer, any Lender or any beneficiary of a Facility LC. The Company further agrees with the LC Issuer and the Lenders that the LC Issuer and the Lenders shall not be responsible for, and the Company’s
Reimbursement Obligation in respect of any Facility LC shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even if such documents should in fact prove to be in any or all respects
invalid, fraudulent or forged, or any dispute between or among the Company, any of its Affiliates, the beneficiary of any Facility LC or any financing institution or other party to whom any Facility LC may be transferred or any claims or defenses
whatsoever of the Company or of any of its Affiliates against the beneficiary of any Facility LC or any such transferee. The LC Issuer shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any Facility LC. The Company agrees that any action taken or omitted by the LC Issuer or any Lender under or in connection with each Facility LC and the related drafts and documents, if done
without gross negligence or willful misconduct, shall be binding upon the Company and shall not put the LC Issuer or any Lender under any liability to the Company. Nothing in this Section 2.19.7 is intended to limit the right of the Company to
make a claim against the LC Issuer for damages as contemplated by the proviso to the first sentence of Section 2.19.6. 
  
 2.19.8 Actions of LC Issuer. The LC Issuer shall be entitled to rely, and shall be fully protected in relying, upon any Facility LC, draft,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document reasonably 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, independent accountants and other experts selected by the LC Issuer. The LC Issuer shall be fully justified in failing or refusing to take any action under this
Agreement unless it shall first have received such advice or concurrence of the Required Lenders as it reasonably deems appropriate or it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking 

  

 32 

 
or continuing to take any such action. Notwithstanding any other provision of this Section 2.19, the LC Issuer shall in all cases be fully protected in
respect of the Lenders in acting, or in refraining from acting, under this Agreement in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding upon the Lenders and
any future holders of a participation in any Facility LC. 
  
 2.19.9 Indemnification. The Company hereby agrees to indemnify and hold harmless each Lender, the LC Issuer and the Agent, and their respective directors, officers, agents and employees from and against any and all claims and
damages, losses, liabilities, costs or expenses which such Lender, the LC Issuer or the Agent may incur (or which may be claimed against such Lender, the LC Issuer or the Agent by any Person whatsoever) by reason of or in connection with the
issuance, execution and delivery or transfer of or payment or failure to pay under any Facility LC or any actual or proposed use of any Facility LC, including, without limitation, any claims, damages, losses, liabilities, costs or expenses which the
LC Issuer may incur by reason of or in connection with (i) the failure of any other Lender to fulfill or comply with its obligations to the LC Issuer hereunder (but nothing herein contained shall affect any rights the Company may have against
any defaulting Lender) or (ii) by reason of or on account of the LC Issuer issuing any Facility LC at the direction of the Company which specifies that the term “Beneficiary” included therein includes any successor by operation of law
of the named Beneficiary, but which Facility LC does not require that any drawing by any such successor Beneficiary be accompanied by a copy of a legal document, satisfactory to the LC Issuer, evidencing the appointment of such successor
Beneficiary; provided that the Company shall not be required to indemnify any Lender, the LC Issuer or the Agent for any claims, damages, losses, liabilities, costs or expenses to the extent, but only to the extent, caused by (x) the
willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under any Facility LC complied with the terms of such Facility LC or (y) the LC Issuer’s failure to pay under any Facility LC after the
presentation to it of a request strictly complying with the terms and conditions of such Facility LC. Nothing in this Section 2.19.9 is intended to limit the obligations of the Company under any other provision of this Agreement. 
  
 2.19.10 Lenders’ Indemnification Each Lender shall, ratably in
accordance with its Pro Rata Share, indemnify the LC Issuer, its affiliates and their respective directors, officers, agents and employees (to the extent not reimbursed by the Company) against any cost, expense (including reasonable counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees’ gross negligence or willful misconduct or the LC Issuer’s failure to pay under any Facility LC after the presentation to it of a request
strictly complying with the terms and conditions of the Facility LC) that such indemnitees may suffer or incur in connection with this Section 2.19 or any action taken or omitted by such indemnitees hereunder. 
  
 2.19.11 Facility LC Collateral Account. The Company agrees that it
will, upon the request of the Agent or the Required Lenders and until the final expiration date of any Facility LC and thereafter as long as any Reimbursement Obligation is payable to the LC Issuer or the Lenders in respect of any Facility LC,
maintain a special collateral account pursuant to arrangements satisfactory to the Agent (the “Facility LC Collateral Account”) at the Agent’s office at the address specified pursuant to Article XIII, in the name of such Company but
under the sole dominion and control of the Agent, for the benefit of the Lenders and in which such Company shall have no interest other than as set forth in Section 8.1. The Company hereby pledges, assigns and grants to the Agent, on behalf of
and for the ratable benefit of the Lenders and the LC Issuer, a security interest in all of the Company’s right, title and interest in and to all funds which may from time to time be on deposit in the Facility LC Collateral Account, together
with all investments made therefrom, and all interest or other income or gain arising from such funds, to secure the prompt and complete payment and performance of the Obligations. The Agent will invest any funds on deposit from time to time in the
Facility LC Collateral Account in certificates of deposit of JPMCB or 

  

 33 

 
other Cash Equivalents acceptable to the Agent having a maturity not exceeding 30 days; provided that the Agent shall at all times maintain a perfected
security interest in such investments for the ratable benefit of the LC Issuer and the Lenders. Nothing in this Section 2.19.11 shall either obligate the Agent to require the Company to deposit any funds in the Facility LC Collateral Account or
limit the right of the Agent to release any funds held in the Facility LC Collateral Account in each case other than as required by Section 8.1. 
  
 2.19.12 Rights as a Lender. In its capacity as a Lender, the LC Issuer shall have the same rights and obligations as any other Lender. 

 
 ARTICLE III 
  
 CHANGE IN CIRCUMSTANCES, TAXES 
  
 3.1 Yield Protection. If after the date hereof the introduction of, or
any change in, any applicable law or any governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or not having the force of law), or in the interpretation or administration thereof, or the compliance of any
Lender or the LC Issuer therewith, 
  
 (a)
subjects any Lender or any applicable Lending Installation or the LC Issuer to any tax, duty, charge or withholding on or from payments due from any Borrower or changes the basis of taxation of payments to any Lender or the LC Issuer in respect of
its Loans, Facility LCs or participations therein or other amounts due it hereunder (excluding income taxes and franchise taxes (imposed in lieu of income taxes) imposed on the Agent, the LC Issuer or any Lender as a result of a present or former
connection between the Agent, the LC Issuer or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein, other than any such connection arising solely from
the Agent, the LC Issuer or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document), or 
  
 (b) imposes or increases or deems applicable any reserve, assessment, insurance charge, special deposit or
similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender, the LC Issuer or any applicable Lending Installation (other than reserves, assessments and other charges taken into account in determining
the Eurocurrency Rate), or 
  
 (c) imposes any
other condition the result of which is to increase the cost to any Lender or any applicable Lending Installation or the LC Issuer of making, funding or maintaining loans, or of issuing or participating in Facility LCs, or reduces any amount
receivable by any Lender or any applicable Lending Installation or the LC Issuer in connection with loans, Facility LCs or participations therein, or requires any Lender or any applicable Lending Installation or the LC Issuer to make any payment
calculated by reference to the amount of loans, Facility LCs or participations therein, held or interest received by it, by an amount deemed material by such Lender or the LC Issuer, as the case may be, 
  
 then, within 15 days of written demand by the Agent on behalf of such Lender or the LC
Issuer, as the case may be, providing evidence of expenses actually incurred or reductions in amounts to be received under this Agreement actually suffered, the affected Borrower shall pay such Lender or the LC Issuer, as the case may be, that
portion of such increased expense incurred or reduction in an amount received which is attributable to making, funding and maintaining its Loans, Facility LCs or Commitment. 
  

 34 

 3.2 Changes in Capital Adequacy Regulations. If the amount of capital required or expected to be
maintained by such Lender, any Lending Installation of such Lender, the LC Issuer or any corporation controlling such Lender or LC Issuer is increased as a result of a Change, then, within 15 days of written demand by the Agent on behalf of such
Lender or LC Issuer, the Company shall pay such Lender or the LC Issuer the amount necessary to compensate for any shortfall in the rate of return on the portion of such increased capital which such Lender or the LC Issuer reasonably determines is
attributable to this Agreement, its Outstanding Credit Exposure or its obligation to make Loans and issue or participate in Facility LCs, as the case may be, hereunder (after taking into account such Lender’s or the LC Issuer’s policies as
to capital adequacy). “Change” means (a) any change after the date of this Agreement in the Risk-Based Capital Guidelines or (b) any adoption of or change in any other law, governmental or quasi-governmental rule, regulation,
policy, guideline, interpretation, or directive (whether or not having the force of law) after the date of this Agreement which affects the amount of capital required or expected to be maintained by any Lender or the LC Issuer or any Lending
Installation or any corporation controlling any Lender or the LC Issuer. “Risk-Based Capital Guidelines” means (i) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition
rules, and (ii) the corresponding capital regulations promulgated by regulatory authorities outside the United States implementing the July 1988 report of the Basle Committee on Banking Regulation and Supervisory Practices Entitled
“International Convergence of Capital Measurements and Capital Standards,” including transition rules, and any amendments to such regulations adopted prior to the date of this Agreement. 
  
 3.3 Availability of Types of Advances. If any Lender reasonably
determines that maintenance of its Loans at a suitable Lending Installation, would violate any applicable law, rule, regulation, or directive, whether or not having the force of law, the Loans of such Lender that are so affected shall be repaid
(a) upon demand by such Lender if it shall be unlawful for such Lender to maintain the affected Loan until the end of the Interest Period for the affected Loan, or (b) at the end of the Interest Period for the affected Loan. If the
Required Lenders reasonably determine that (i) deposits of a currency, type and maturity appropriate to match fund Loans are not available or (ii) the interest rate applicable to a Loan does not accurately reflect the cost of making or
maintaining such Loans, then the Agent shall suspend the availability of the affected Loan or Loans and require any such Loan or Loans of the affected type to be repaid at the end of the Interest Period for such Loan or Loans. 
  
 3.4 Funding Indemnification. If any payment of an Advance occurs on a
date which is not the last day of the applicable Interest Period, whether because of acceleration, prepayment or otherwise, or an Advance is not made on the date specified by a Borrower for any reason other than default by the Lenders, such Borrower
will indemnify each Lender for any loss or cost incurred by it resulting therefrom, including, without limitation, any loss or cost in liquidating or employing deposits acquired to fund or maintain the Advance. 
  
 3.5 Lender Statements; Survival of Indemnity. To the extent reasonably
possible, each Lender and the LC Issuer shall designate an alternate Lending Installation with respect to its Loans or Facility LCs or participations therein to reduce any liability of a Borrower to such Lender or the LC Issuer, as the case may be,
under Sections 3.1 and 3.2 or to avoid the unavailability of an Advance under Section 3.3, so long as such designation is not disadvantageous to such Lender or the LC Issuer in any material respect. Each Lender or the LC Issuer, as the case may
be, shall deliver a written statement of such Lender or the LC Issuer to the applicable Borrower (with a copy to the Agent) as to the amount due, if any, under Section 3.1, 3.2 or 3.4. Such written statement shall set forth in reasonable detail
the calculations upon which such Lender or the LC Issuer, as the case may be, determined such amount and 

  

 35 

 
shall state that amounts determined in accordance with such procedures are being charged by such Lender or the LC Issuer to other borrowers with credit
facilities similar to this Agreement and credit characteristics comparable to the Company as determined by such Lender or the LC Issuer, as the case may be, and shall be final, conclusive and binding on the Borrowers in the absence of manifest
error. Determination of amounts payable under such sections shall be calculated as though each Lender funded such Loans through the purchase of a deposit of the type and maturity corresponding to the deposit used as a reference in determining the
interest rate applicable to such Loan, whether in fact that is the case or not. Unless otherwise provided herein, the amount specified in the written statement of any Lender or the LC Issuer shall be payable on demand after receipt by the applicable
Borrower of such written statement. The obligations of the Borrowers under Sections 3.1, 3.2, 3.4 and 3.6 shall survive payment of the Obligations and termination of this Agreement. The Borrowers shall have no obligation to compensate any Lender or
the LC Issuer with respect to amounts provided in Sections 3.1, 3.2, 3.4 or 3.6 with respect to any period prior to the date which is 180 days prior to the date such Lender or the LC Issuer delivers its written statement hereunder requesting
compensation (except such longer period during which solely because of the retroactive application of such law, rule, regulation, policy, guideline or directive such Lender did not know in good faith that such amount would arise or accrue).

  
 3.6 Taxes. 
  
 3.6.1 All payments of principal and interest made by the Borrowers under
this Agreement, any Facility LC Application and any Note, if any, shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding income taxes and franchise taxes (imposed in lieu of income taxes) imposed on the Agent, the LC Issuer or any
Lender as a result of a present or former connection between the Agent, the LC Issuer or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than
any such connection arising solely from the Agent, the LC Issuer or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document). If any such non-excluded
taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) are required to be withheld from any amounts payable to the Agent, the LC Issuer or any Lender hereunder or under any Note, the amounts
so payable to the Agent, the LC Issuer or such Lender shall be increased to the extent necessary to yield to the Agent, the LC Issuer or such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at
the rates and in the amounts specified in this Agreement provided, however, that (i) with respect to any Loan or Facility LC in U.S. Dollars to the Company, the Company shall not be required to increase any such amounts payable to
any Lender that is not organized under the laws of the United States of America or a state thereof if such Lender fails to comply with the requirements of Section 3.6.2, (ii) with respect to any Loan or Facility in any Foreign Currency, a
Borrower shall not be required to increase any such amounts payable to any Lender if such Lender fails to comply with the requirements of Section 3.6.4 and (iii) with respect to any Loan in any Foreign Currency, the Foreign Subsidiary
Borrower shall not be required to increase any such amounts payable to any Lender or the Agent to the extent such Lender could avoid the payment of such amount by changing its Lending Installation, provided that any such change in any Lending
Installation shall not be required if such Lender has reasonable cause not to change its Lending Installation or such Lender has reasonably determined that it is disadvantageous in any material respect for it to do so. Whenever any Non-Excluded
Taxes are payable by a Borrower, as promptly as possible thereafter (but in any event within thirty (30) days of payment thereof) such Borrower shall send to the Agent for its own account or for the account of such Lender, as the case may be, a
certified copy of an original official receipt received by such Borrower showing payment thereof. If a Borrower fails to pay any Non-Excluded Taxes when due 

  

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to the appropriate taxing authority or fails to remit to the Agent the required receipts or other required documentary evidence, such Borrower shall
indemnify the Agent, the LC Issuer and the Lenders for any incremental taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any such failure. The agreements in this Section shall survive the termination of
this Agreement and the payment of the Loans and all other amounts payable hereunder. 
  
 3.6.2 Each Lender that is not incorporated under the laws of the United States of America or a state thereof shall: 
  
 (a) at least five Business Days before the date of the initial payment to be made by a Borrower under this Agreement to such Lender,
deliver to the Company and the Agent (A) two duly completed copies of United States Internal Revenue Service Form W-8BEN or W-8ECI, or successor applicable form, as the case may be, certifying that it is entitled to receive payments under this
Agreement without deduction or withholding of any United States federal income taxes and (B) an Internal Revenue Service Form W-8 or W-9, or successor applicable form, as the case may be, certifying that it is entitled to an exemption from
United States backup withholding tax; 
  
 (b)
deliver to the Company and the Agent two further copies of any such form or certification at least five Business Days before the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a
change in the most recent form previously delivered by it to the Agent and the Company; 
  
 (c) obtain such extensions of time for filing and complete such forms or certifications as may reasonably be requested by the Company or
the Agent; and 
  
 (d) file amendments to such
forms as and when required. 
  
 3.6.3 Each Lender (or Transferee)
that is incorporated or organized under the laws of the United States of America or a State thereof shall provide two properly completed and duly executed copies of Form W-9, or successor applicable form, at the times specified for delivery of forms
under Section 3.6.2 unless an event (including, without limitation, any change in treaty, law or regulation) has occurred after the date such Person becomes a Lender hereunder which renders all such forms inapplicable or which would prevent
such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the Company and the Agent; provided, however, that the Company may rely upon such forms provided to the Company for all periods prior
to the occurrence of such event. Each Person that shall become a Lender or a Participant pursuant to Section 13.2 or Section 13.3 shall, upon the effectiveness of the related transfer, be required to provide all of the forms,
certifications and statements required pursuant to this Section, provided that in the case of such Participant, the obligations of such Participant pursuant to this Section 3.6.3 shall be determined as if such Participant were a Lender,
except that such Participant shall furnish all such required forms, certifications and statements to the Lender from which the related participation shall have been purchased. 
  
 3.6.4 Each Lender that is not incorporated or organized under the laws of the jurisdiction (i) in which a Foreign
Subsidiary Borrower is incorporated or organized, or (ii) in which such Foreign Subsidiary Borrower is located, and, in either case, is a Lender to such Foreign Subsidiary Borrower (whether under the Revolving Credit Commitment or an Alternate
Currency Commitment) shall, upon request by such Foreign Subsidiary Borrower, within a reasonable period of time after such request, deliver to such Foreign Subsidiary Borrower or the applicable governmental or taxing authority, as the 

  

 37 

 
case may be, any form or certificate required in order that any payment by such Foreign Subsidiary Borrower under this Agreement or any Notes to such Lender
may be made free and clear of, and without deduction or withholding for or on account of any Non-Excluded Tax (or to allow any such deduction or withholding to be at a reduced rate) imposed on such payment under the laws of the jurisdiction under
which such Foreign Subsidiary Borrower is incorporated, organized or located, provided that such Lender is legally entitled to complete, execute and deliver such form or certificate and such completion, execution or submission would not
prejudice the legal position of such Lender. 
  
 3.6.5 Each Lender
agrees to use reasonable efforts to avoid or to minimize any amounts which might otherwise be payable pursuant to this Section 3.6, including, without limitation, the filing of applicable reports and returns with applicable taxing bodies,
provided that such effort shall not impose on any such Lender any additional costs or legal or regulatory burdens deemed by such Lender in its reasonable judgment to be material. In the event that any Lender determines that any event or
circumstance that will lead to a claim by it under this Section 3.6 has occurred or will occur, such Lender will use its best efforts to so notify the Company in writing, provided that any failure to provide such notice shall in no way
impair the rights of any Lender to demand and receive compensation under this Section 3.6. 
  
 3.6.6 If any payment by any Borrower is made to or for the account of any Lender after deduction for or on account of tax, and additional payments are
made by such Borrower then, if any Lender shall receive or be granted a credit against, refund or remission for such tax, such Lender shall, to the extent that it can do so without prejudice to the retention of the amount of such credit, refund or
remission, reimburse to such Borrower such amount as such Lender shall, in its absolute opinion, have concluded to be attributable to the relevant tax or deduction or withholding. Nothing herein contained shall interfere with the right of any Lender
to arrange its affairs in whatever manner it thinks fit and, in particular, the Lenders shall not be under any obligation to claim relief from its corporation profits or similar tax liability in respect of such tax in priority to any other claims,
reliefs, credits or deductions available to it nor oblige any Lenders to disclose any information relating to its tax affairs. Such reimbursement shall be made as soon as reasonably practical upon such Lender certifying that the amount of such
credit or remission has been received by it. 
  
 3.7
Substitution of Lender. If (a) the obligation of any Lender to make or maintain Loans has been suspended pursuant to Section 3.3 when not all Lenders’ obligations to do so have been suspended, (b) any Lender has demanded
compensation under Sections 3.1 or 3.2 when all Lenders have not done so or (c) any Lender is a Defaulting Lender, the Company shall have the right, if no Default then exists, to replace such Lender (a “Replaced Lender”) with one or
more other lenders (collectively, the “Replacement Lender”) acceptable to the Agent, provided that (i) at the time of any replacement pursuant to this Section 3.7, the Replacement Lender shall enter into one or more
Assignments pursuant to which the Replacement Lender shall acquire the Commitments and outstanding Advances and other obligations of the Replaced Lender and, in connection therewith, shall pay to the Replaced Lender in respect thereof an amount
equal to the sum of (A) the amount of principal of, and all accrued interest on, all outstanding Loans of the Replaced Lender, (B) the amount of all accrued, but theretofore unpaid, fees owing to the Replaced Lender hereunder and
(C) the amount which would be payable by the Borrowers to the Replaced Lender pursuant to Section 3.4, if any, if the Borrowers prepaid at the time of such replacement all of the Loans of such Replaced Lender outstanding at such time;
provided, that, no Defaulting Lender shall be entitled to compensation under clause (C) or under Section 3.4 upon any such payment, and (ii) all obligations of the Borrowers then owing to the Replaced Lender (other than those
specifically described in clause (i) above in respect of which the assignment purchase price has been, or is concurrently being, paid) shall be paid in full to such Replaced Lender concurrently with such replacement. Upon the execution of the
respective Assignments, the payment of amounts referred to in 

  

 38 

 
clauses (i) and (ii) above and, if so requested by the Replacement Lender, delivery to the Replacement Lender of the appropriate Note or Notes
executed by the Borrowers, the Replacement Lender shall become a Lender hereunder and the Replaced Lender shall cease to constitute a Lender hereunder. The provisions of this Agreement (including without limitation Sections 3.4 and 10.7) shall
continue to govern the rights and obligations of a Replaced Lender with respect to any Loans made or any other actions taken by such lender while it was a Lender. Nothing herein shall release any Defaulting Lender from any obligation it may have to
any Borrower, the Agent or any other Lender. 
  
 ARTICLE IV

  
 CONDITIONS PRECEDENT 
  
 4.1 Closing Conditions. On the date hereof, the Borrowers shall
furnish, or shall cause to be furnished, to the Agent, with sufficient copies for the Lenders, each of the following: 
  
 (a) Copies of the articles of incorporation or similar organizational documents of the Company, together with all amendments thereto, and
a certificate of good standing or similar governmental evidence of corporate existence, all certified by the Secretary, an Assistant Secretary or another duly authorized representative of the Company. 
  
 (b) Copies, certified by the Secretary, an Assistant
Secretary or another duly authorized representative of the Company, of its by-laws and of its Board of Directors’ resolutions (and resolutions of other bodies, if any are deemed necessary by counsel for any Lender) authorizing the execution of
the Loan Documents. 
  
 (c) An incumbency
certificate, executed by the Secretary, an Assistant Secretary or another duly authorized representative of each Borrower, which shall identify by name and title and bear the signature of the officers of such Borrower authorized to sign the
applicable Loan Documents and to make borrowings hereunder, upon which certificate the Agent and the Lenders shall be entitled to rely until informed of any change in writing by such Borrower. 
  
 (d) A written opinion of the internal counsel for the
Company, addressed to the Lenders in substantially the form of Exhibit E hereto. 
  
 (e) Copies of all governmental and nongovernmental consents, approvals, authorizations, declarations, registrations or filings required on
the part of any Borrower in connection with the execution, delivery and performance of the Loan Documents or the transactions contemplated hereby or thereby or as a condition to the legality, validity or enforceability of the Loan Documents,
certified as true and correct in full force and effect as of the Effective Date by a duly authorized officer of the Borrowers, or if none is required, a certificate of such officer to that effect. 
  
 (f) Payment of all fees owing by the Borrowers as of the
Effective Date. 
  
 (g) Copies of the unqualified
audited consolidated financial statements of the Company and its Subsidiaries for the fiscal year ended January 2, 2005, copies of the internally prepared consolidated financial statements of the Company and its Subsidiaries for the fiscal
quarter ended October 2, 2005, and copies of five year financial projections for the Company and its Subsidiaries, in each case in form and substance reasonably satisfactory to the Agent. 
  

 39 

 (h) The presentation of evidence satisfactory to the Agent that the Loan Agreement dated
June 24, 2003, among the Company, certain other borrowers named therein, and the lenders party thereto and the agent named therein shall have been terminated and all indebtedness, liabilities, and obligations outstanding thereunder shall have
been paid in full or will be paid from the proceeds of the initial Advance. 
  
 (i) The Agent shall have reasonably determined that since November 4, 2005, there is an absence of any material adverse change or disruption in primary or secondary loan syndication markets, financial markets or
in capital markets generally (whether resulting from events prior to or after the date of the commitment) that would likely impair syndication of the Loans hereunder. 
  
 (j) Each of the conditions set forth in Section 4.2 shall have been satisfied. 
  
 (k) Such other agreements and documents, and the
satisfaction of such other conditions as may be reasonably required by the Agent. 
  
 4.2 Each Advance. The Lenders shall not be required to make any Credit Extensions or continue or convert any Loans, unless on the applicable Borrowing Date, both before and after giving effect on a pro forma
basis to the making of such Credit Extension or such continuation or conversion: 
  
 (a) There exists no Default or Unmatured Default. 
  
 (b) The representations and warranties contained in Article V are true and correct in all material respects
as of such Borrowing Date except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall be true and correct in all material respects on and as of such
earlier date. 
  
 (c) All legal matters incident
to the making or continuation of such Loans shall be satisfactory to the Agent and its counsel. 
  
 Each Borrowing notice or request for issuance of a Facility LC with respect to each Credit Extension and each continuation or conversion by a Borrower
hereunder shall constitute a representation and warranty by the Company and such Borrower that the conditions contained in Sections 4.2(a) and (b) have been satisfied. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Each of the Company and the Foreign Subsidiary Borrowers (insofar as the representations and warranties set forth below relate to such Foreign Subsidiary
Borrower) represents and warrants to the Lenders that: 
  
 5.1
Corporate Existence and Standing. Each of the Company and its Significant Subsidiaries and each Foreign Subsidiary Borrower is a corporation, partnership, limited liability company or other organization, duly organized and validly existing
under the laws of its jurisdiction of organization and has all requisite corporate, partnership, company or similar authority to conduct its business as presently conducted. 
  

 40 

 5.2 Authorization and Validity. Each Borrower has the corporate or other power and authority and
legal right to execute and deliver the Loan Documents and to perform its obligations thereunder. The execution and delivery by each of the Borrowers of the Loan Documents and the performance of their obligations thereunder have been duly authorized
by proper corporate proceedings, and the Loan Documents to which they are a party constitute legal, valid and binding obligations of the Borrowers enforceable against the Borrowers in accordance with their terms, except as enforceability may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles affecting the availability of specific performance and other remedies. 
  
 5.3 No Conflict; Government Consent. Neither the execution and
delivery by the Borrowers of the Loan Documents, nor the consummation of the transactions therein contemplated, nor compliance with the provisions thereof will violate any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on the Company or any of its Subsidiaries or the Company’s or any Subsidiary’s articles of incorporation, code of regulations or by-laws or the provisions of any indenture, instrument or agreement to which the Company or any of its
Subsidiaries is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in the creation or imposition of any Lien (other than any Lien permitted by Section 6.12) in, of or
on the Property of the Company or a Subsidiary pursuant to the terms of any such indenture, instrument or agreement. No order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by,
or other action in respect of any governmental or public body or authority, or any subdivision thereof, is required to authorize, or is required in connection with the execution, delivery and performance of, or the legality, validity, binding effect
or enforceability of, any of the Loan Documents. 
  
 5.4
Financial Statements. The January 2, 2005 audited consolidated financial statements of the Company and its Subsidiaries and the October 2, 2005 interim consolidated financial statements of the Company and its Subsidiaries heretofore
delivered to the Lenders were prepared in accordance with generally accepted accounting principles in effect on the date such statements were prepared and fairly present the consolidated financial condition and operations of the Company and its
Subsidiaries. 
  
 5.5 Material Adverse Change. Since
January 2, 2005, there has been no change in the business, Property, prospects, condition (financial or otherwise) or results of operations of the Company and its Subsidiaries which could reasonably be expected to have a Material Adverse
Effect. 
  
 5.6 Taxes. The Company and its Subsidiaries
have filed all United States federal tax returns and all other material tax returns which are required to be filed by any Governmental Authority and have paid all taxes shown as due pursuant to said returns or pursuant to any assessment received by
the Company or any of its Subsidiaries by any Governmental Authority, except such taxes, if any, as are being contested in good faith and as to which adequate reserves have been provided in accordance with Agreement Accounting Principles and as to
which no Lien (other than as permitted by Section 6.12) exists. No tax liens have been filed and no claims are being asserted with respect to any such taxes, in each case other than as permitted by Section 6.12. The charges, accruals and
reserves on the books of the Company and its Subsidiaries in respect of any taxes or other governmental charges are adequate. 
  
 5.7 Litigation and Contingent Obligations. Except as set forth on Schedule 5.7 hereto, there is no litigation, arbitration or proceeding pending
or, to the knowledge of any of their executive officers, any governmental investigation or inquiry pending or any litigation, arbitration, governmental 

  

 41 

 
investigation, proceeding or inquiry threatened against or affecting the Company or any of its Significant Subsidiaries which could reasonably be expected to
have a Material Adverse Effect or which seeks to prevent, enjoin or delay the making of the Credit Extensions. Other than any liability incident to such litigation, arbitration or proceedings listed on Schedule 5.7, the Company and its Significant
Subsidiaries have no material contingent obligations not provided for or disclosed in the financial statements referred to in Section 5.4. 
  
 5.8 Subsidiaries. Schedule 5.8 hereto contains an accurate list of all Significant Subsidiaries of the Company as of the date of this Agreement,
setting forth their respective jurisdictions of incorporation or organization and the percentage of their respective capital stock owned by the Company or other Subsidiaries. All of the issued and outstanding shares of capital stock of such
Significant Subsidiaries held by the Company have been duly authorized and issued and are fully paid and non-assessable. 
  
 5.9 ERISA. Each member of the Controlled Group has fulfilled its obligations in all material respects under the minimum funding standards of ERISA
and the Code with respect to each Plan. Each member of the Controlled Group is in compliance with the applicable provisions of ERISA and the Code with respect to each Plan except where such non compliance could not reasonably be expected to have a
Material Adverse Effect. Each Plan complies in all material respects with all applicable requirements of law and regulations, no Reportable Event which has or may result in any material liability has occurred with respect to any Plan, and no steps
have been taken to reorganize or terminate any Single Employer Plan. No member of the Controlled Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Code in respect of any Plan, (ii) failed to make
any contribution or payment to any Single Employer Plan or Multiemployer Plan, or made any amendment to any Plan, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Code or
(iii) incurred any material, actual liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. 
  
 5.10 Accuracy of Information. No information, exhibit or report furnished by the Company or any of its Subsidiaries in writing to the Agent or to
any Lender in connection with the negotiation of the Loan Documents contained any material misstatement of fact or omitted to state a material fact or any fact necessary to make the statements contained therein not misleading in light of the
circumstances in which made, as of the date thereof. 
  
 5.11
Regulations T, U and X. Margin Stock constitutes less than 25% of those assets of the Company and its Subsidiaries which are subject to any limitation on sale, pledge, or other restriction hereunder and the Company and its Subsidiaries are in
compliance with Section 6.2. 
  
 5.12 Compliance With
Laws. The Company and its Subsidiaries have complied with all applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign government or any instrumentality or agency thereof, having jurisdiction over the conduct
of their respective businesses or the ownership of their respective Property if failure to comply could reasonably be expected to have a Material Adverse Effect. 
  
 5.13 Plan Assets; Prohibited Transactions. The Company and its Significant Subsidiaries have not engaged in any
prohibited transaction within the meaning of Section 4.06 of ERISA or Section 4975 of the Code which could result in any material liability; and neither the execution of this Agreement nor the making of Credit Extensions (assuming that the
Lenders do not fund any of the Credit Extensions with any “plan assets” as defined in ERISA) hereunder give rise to a non-exempt prohibited transaction within the meaning of Section 406 of ERISA or Section 4975 of the Code.

  

 42 

 5.14 Environmental Matters. In the ordinary course of its business, the officers of the Company
consider the effect of Environmental Laws on the business of the Company and its Subsidiaries, in the course of which they identify and evaluate potential risks and liabilities accruing to the Company and its Subsidiaries due to Environmental Laws.
On the basis of this consideration, the Company has reasonably concluded that Environmental Laws cannot reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Significant Subsidiaries has received any notice to
the effect that its operations are not in material compliance with any of the requirements of applicable Environmental Laws or are the subject of any federal or state investigation evaluating whether any remedial action is needed to respond to a
release of any toxic or hazardous waste or substance into the environment, which non-compliance or remedial action could reasonably be expected to have a Material Adverse Effect. 
  
 5.15 Investment Company Act. No Borrower is an “investment company” or a company “controlled” by
an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. 
  
 5.16 Public Utility Holding Company Act. No Borrower is a “holding company” or a “subsidiary company” of a “holding
company”, or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company”, within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 5.17 Foreign Subsidiary Borrowers. 
  
 (a) Each Foreign Subsidiary Borrower is a direct or indirect Wholly-Owned
Subsidiary of the Company (excluding director qualifying shares); and 
  
 (b) Each Foreign Subsidiary Borrower will have, upon becoming a party hereto, all right and authority to enter into this Agreement and each other Loan Document to which it is a party, and to perform all of its obligations under this and
each other Loan Document to which it is a party; all of the foregoing actions will have been taken prior to any request for Loans by such Borrower, duly authorized by all necessary action on the part of such Borrower, and when such Foreign
Subsidiary Borrower becomes a party hereto, this Agreement and each other Loan Document to which it is a party will constitute valid and binding obligations of such Borrower enforceable in accordance with their respective terms except as such terms
may be limited by the application of bankruptcy, moratorium, insolvency and similar laws affecting the rights of creditors generally and by equitable principles affecting the availability of specific performance and other remedies. 
  
 5.18 Ownership of Properties. On the Effective Date, the Company and
its Subsidiaries will have good title, free of all Liens (other than as permitted by Section 6.12), to all Property and assets reflected in the financial statements as owned by it other than defects in title which could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 5.19 Reportable Transaction. Neither any Borrower nor any Subsidiary intends to treat the Advances and related transactions as being a “reportable transaction” (within the meaning of Treasury
Regulation Section 1.6011-4). In the event any Borrower or any Subsidiary determines to take any action inconsistent with such intention, it will promptly notify the Agent thereof. 
  

 43 

 ARTICLE VI 
  

COVENANTS 
  
 During the term of this Agreement, unless the Required Lenders shall otherwise consent in writing: 
  
 6.1 Financial Reporting. The Company will maintain, for itself and
each Subsidiary, a system of accounting enabling it to provide consolidated financial statements for the Company and each Subsidiary in accordance with Agreement Accounting Principles and furnish to the Lenders: 
  
 (a) Within 120 days after the close of each of its fiscal
years, an unqualified (except for qualifications relating to changes in accounting principles or practices reflecting changes in generally accepted accounting principles and required or approved by the Company’s independent certified public
accountants) audit report certified by nationally recognized independent certified public accountants certifying that the Company’s consolidated financial statements are fairly stated in all material respects, in accordance with Agreement
Accounting Principles for itself and the Subsidiaries, including balance sheets as of the end of such period, related income statements, and statements of cash flows. 
  
 (b) Within 60 days after the close of the first three quarterly periods of each of its fiscal years, for
itself and the Subsidiaries, consolidated unaudited balance sheets as at the close of each such period and related income statement and a statement of cash flows for the period from the beginning of such fiscal year to the end of such quarter, all
certified by a Designated Financial Officer of the Company. 
  
 (c) Together with the financial statements required under Sections 6.1(a) and (b), a compliance certificate in substantially the form of Exhibit F hereto signed by a Designated Financial Officer of the Company showing
the calculations necessary to determine compliance with this Agreement and stating that no Default or Unmatured Default exists, or if any Default or Unmatured Default exists, stating the nature and status thereof. 
  
 (d) As soon as possible and in any event within 5 days after
(x) receipt by the Company, and (y) a determination is made by the Company concerning a Material Adverse Effect with respect thereto, a copy of (a) any notice or claim to the effect, that the Company or any of its Subsidiaries is or
may be liable to any Person as a result of the release by the Company, any of its Subsidiaries, or any other Person of any toxic or hazardous waste or substance into the environment, (b) any notice alleging any violation of any federal, state
or local environmental, health or safety law or regulation by the Company or any of its Subsidiaries, and (c) any notice of occurrence of any Reportable Event, which, in each case, could reasonably be expected to have a Material Adverse Effect.

  
 (e) Promptly after the sending or filing
thereof, copies of all forms 8K, 10-K and 10-Q which the Company files with the Securities and Exchange Commission or any successor agency thereof pertaining to the Company or any of its Subsidiaries as the issuer of securities. 
  
 (f) Promptly, such other information respecting the
business, properties, operations or condition, financial or otherwise, of the Company or any of their respective Subsidiaries as any Lender or the Agent may from time to time reasonably request. 
  

 44 

 6.2 Use of Proceeds. The Company will, and will cause each Subsidiary to, use the proceeds of all
Credit Extensions, to refinance existing Indebtedness, for working capital or general corporate purposes. None of the proceeds of any of the Advances made under this Agreement will be used, whether directly or indirectly, in violation of any
applicable law or regulation, including without limitation Regulations T, U or X, or to purchase or carry any Margin Stock. 
  
 6.3 Notice of Default. The Company will give prompt notice in writing to the Agent of the occurrence of any Default or Unmatured Default known to
it or which in the exercise of reasonable and customary diligence it should have known. 
  
 6.4 Conduct of Business. The Company will, and will cause each Subsidiary to do all things necessary to remain duly incorporated, validly existing and in good standing in its jurisdiction of organization
(subject to Section 6.11) and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except in any such case where such failure could not reasonably be expected to have a Material
Adverse Effect. 
  
 6.5 Taxes. The Company will, and will
cause each Subsidiary to, timely file complete and correct United States federal and applicable foreign, state and local tax returns required by law and pay when due all taxes, assessments and governmental charges and levies upon it or its income,
profits or Property, except those which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been set aside in accordance with Agreement Accounting Principles and those which the failure to
file or pay could not reasonably be expected to have a Material Adverse Effect. 
  
 6.6 Insurance. The Company will, and will cause each Subsidiary to, maintain insurance with financially sound and reputable insurance companies (or self-insurance programs) on their Property in such amounts
(with such customary deductibles, exclusions and self-insurance) and covering such risks as management of the Company reasonably considers consistent with sound business practice. 
  
 6.7 Compliance with Laws. The Company will, and will cause each Subsidiary to, comply with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject except for such noncompliance as could not reasonably be expected to have a Material Adverse Effect. 
  
 6.8 Maintenance of Properties. The Company will, and will cause each
Subsidiary to, do all things reasonably necessary to maintain, preserve, protect and keep its material Property in good repair, working order and condition (ordinary wear and tear excepted), and make all reasonably necessary and proper repairs,
renewals and replacements. 
  
 6.9 Inspection. The Company
will, and will cause each Subsidiary to, permit the Agent and upon the occurrence of a Default and during the continuation thereof the Lenders, directly or by their respective representatives and agents, to inspect (at no cost to any Borrower) any
of the Property, corporate books and financial records of the Company and each Subsidiary, to examine and make copies of the books of accounts and other financial records of the Company and each Subsidiary, and to discuss the affairs, finances and
accounts of the Company and each Subsidiary with, and to be advised as to the same by, their respective officers upon reasonable prior notice at such reasonable times and intervals as the Agent or any Lender, as the case may be, may designate, which
times and intervals shall be reasonably acceptable to the Company; provided, however, that such examination shall exclude examination or disclosure of “personal data” within the meaning of the European Union Data Protection 

  

 45 

 
Directive (the “EU Directive”) if such disclosure or examination would cause the Company or any Subsidiary of the Company to be in violation of the
EU Directive or US-EU Safe Harbor Data Privacy Arrangements issued pursuant to the EU Directive. 
  
 6.10 Merger. The Company will not, nor will it permit any Subsidiary to, merge or consolidate with or into any other Person or make any Acquisition
of any Person, except that, provided no Default or Unmatured Default shall have occurred and be continuing or would result therefrom, (a) the Company may merge or consolidate with any other Person so long as the Company is the surviving
corporation or make any Acquisition of any Person, (b) a Subsidiary may merge into the Company or a Wholly-Owned Subsidiary or (c) a Wholly-Owned Subsidiary may merge with and into any other Person so long as after giving effect to such
merger, such other Person shall be controlled by the Company or a Subsidiary of the Company. 
  
 6.11 Sale of Assets. The Company will not, nor will it permit any Subsidiary to, lease, sell or otherwise dispose of its Property, to any other Person, (other than the Company or any Guarantor), except:

  
 (a) leases, sales or other dispositions to majority-owned or
controlled Subsidiaries subject to the terms of Section 6.13. 
  
 (b) any transfer of an interest in accounts or notes receivable and related assets as part of a Qualified Receivables Transaction. 
  
 (c) leases, sales (including sale leasebacks) or other dispositions of its Property in addition to those described in clauses (a) and (b) above
so long as the aggregate value of assets leased, sold or disposed of in any one transaction does not exceed 15% of the Total Assets of the Company and its Subsidiaries at the time of such transaction. 
  
 (d) sales or dispositions of worn out or obsolete equipment and other fixed
assets. 
  
 (e) exchanges of real property for other real property
of substantially similar value on fair and reasonable terms applicable to an arm’s length transaction. 
  
 Notwithstanding anything in this Section 6.11 to the contrary, no such leases, sales or other dispositions of property may be made if any Default has occurred and is continuing. 
  
 6.12 Liens and Subsidiary Indebtedness. The Company will not, nor will
it permit any Subsidiary to, create, incur, or suffer to exist any Lien in, of or on the Property of the Company or any of its Subsidiaries and the Company will not permit any Subsidiary to create, incur or suffer to exist any Indebtedness, except:

  
 (a) Liens for taxes, assessments or
governmental charges or levies on its Property if the same shall not at the time be delinquent or thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings and for which adequate reserves in
accordance with Agreement Accounting Principles shall have been set aside on its books. 
  
 (b) Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’ liens and other similar liens
arising in the ordinary course of business which secure payment of obligations not more than 90 days past due or which are being contested in good faith by appropriate proceedings and for which adequate reserves shall have been set aside on its
books. 
  

 46 

 (c) Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits, or similar legislation. 
  
 (d) Utility easements, building restrictions and such other encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in any material way affect the marketability of the same or interfere with the use thereof in the business of the Company or the Subsidiaries. 
  
 (e) Liens granted by any Subsidiary in favor of the Company
or any other Subsidiary. 
  
 (f) Any interest or
title of a lessor in the property subject to any Capitalized Lease Obligation or Operating Lease. 
  
 (g) Any Lien created to secure payment of a portion of the purchase price of, or existing at the time of acquisition of, any tangible
fixed asset acquired by the Company or any of its Subsidiaries may be created or suffered to exist upon such fixed asset if the outstanding principal amount of the Indebtedness secured by such Lien does not at any time exceed the purchase price paid
by the Company or such Subsidiary for such fixed asset; provided that such Lien does not encumber any other asset at any time owned by the Company or such Subsidiary, and provided, further, that not more than one such Lien shall
encumber such fixed asset at any one time. 
  
 (h)
Judgment or other similar Liens arising in connection with legal proceedings so long as the execution or other enforcement thereof is effectively stayed and the claims secured thereby are being contested in good faith by appropriate proceedings and
the Company or such Subsidiary, as the case may be, has established appropriate reserves against such claims in accordance with Agreement Accounting Principles. 
  

(i) Indebtedness of any Subsidiary outstanding hereunder. 
  
 (j) Indebtedness of any Subsidiary owing to the Company or any other Subsidiary. 
  
 (k) (x) Liens encumbering Property of the Company or any
Subsidiary securing Indebtedness of the Company or any Subsidiary and (y) unsecured Indebtedness of Subsidiaries, in each case, in addition to the Liens and Indebtedness described in clauses (a) through (j) above, in an aggregate
amount not exceeding 25% of the consolidated Net Worth of the Company and its Subsidiaries. 
  
 6.13 Affiliates. The Company will not, and will not permit any Subsidiary to, enter into any transaction (including, without limitation, the purchase or sale of any Property or service) with, or make any
payment or transfer to, any Affiliate except in the ordinary course of business and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms (taken as a whole) no less
favorable to the Company or such Subsidiary than the Company or such Subsidiary would obtain in a comparable arms-length transaction. 
  

 47 

 6.14 Leverage Ratio. The Company shall not permit its Leverage Ratio to exceed 0.5 to 1.0 as of
the last day of each fiscal quarter. 
  
 6.15 Interest Coverage
Ratio. The Company shall not permit its Interest Coverage Ratio to be less than 5.0 to 1.0 as of the last day of each fiscal quarter. 
  
 6.16 Financial Contracts. The Company will not, nor will it permit any Subsidiary to, enter into any Financial Contract for speculative purposes.

  
 ARTICLE VII 
  
 DEFAULTS 
  
 The occurrence of any one or more of the following events shall constitute a
Default: 
  
 7.1 Any representation or warranty made by the
Company or its Subsidiaries to the Lenders or the Agent in any Loan Document, in connection with any Credit Extension, or in any certificate or information delivered in writing in connection with any Loan Document shall be false in any material
respect on the date as of which made and shall not be remedied within three Business Days after written notice from the Agent. 
  
 7.2 Nonpayment of principal of any Loan when due, nonpayment of any Reimbursement Obligation within one Business Day after the same becomes due, or
nonpayment of interest on any Loan or of any facility fee, LC Fee or any other payment obligations under any of the Loan Documents within three Business Days after the same becomes due (unless such Loan has been rolled over as provided in this
Agreement). 
  
 7.3 The breach by any Borrower of any of the terms
or provisions of Sections 6.2, 6.3, 6.4, 6.5, 6.10, 6.11, 6.12, 6.13, 6.14 or 6.15 which is not remedied within three Business Days after written notice from the Agent. 
  
 7.4 The breach by any Borrower (other than a breach which constitutes a Default under Section 7.1, 7.2 or 7.3) of any
of the terms or provisions of this Agreement or any other Loan Document which is not remedied within 30 days after written notice from the Agent. 
  
 7.5 Failure of the Company or any of its Subsidiaries to pay when due any Indebtedness or Rate Hedging Obligations (valued by reference to the amount of
the Net Mark-to-Market Exposure) aggregating in excess of $15,000,000 (“Material Indebtedness”); or the default by the Company or any of its Subsidiaries in the performance of any term, provision or condition contained in any agreement
under which any such Material Indebtedness was created or is governed, or any other event shall occur or condition exist, the effect of which in the case of any such default or event is to cause, or to permit the holder or holders of such Material
Indebtedness to cause, such Material Indebtedness to become due prior to its stated maturity; or any Material Indebtedness of the Company or any of its Subsidiaries shall be declared to be due and payable or required to be prepaid or repurchased
(other than by a regularly scheduled payment) prior to the stated maturity thereof; or the Company or any of its Subsidiaries shall not pay, or admit in writing its inability to pay, its debts generally as they become due. 
  
 7.6 The Company or any of its Subsidiaries, shall (i) have an order for
relief entered with respect to it under any existing or future law of any jurisdiction, domestic or foreign, relating to 

  

 48 

 
bankruptcy, insolvency, reorganization or relief of debtors, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent
to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any Substantial Portion of its Property, (iv) institute any proceeding seeking an order for relief under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to adjudicate it a bankrupt or insolvent entity, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or its debts or seeking similar relief under any law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency or reorganization or relief of debtors or similar proceeding or fail to
file an answer or other pleading denying the material allegations of any such proceeding filed against it, (v) take any corporate action to authorize or effect any of the foregoing actions set forth in this Section 7.6 or (vi) fail to
contest in good faith any appointment or proceeding described in Section 7.7. 
  
 7.7 Without its application, approval or consent, a receiver, trustee, examiner, liquidator or similar official shall be appointed for the Company or any of its Subsidiaries or any Substantial Portion of their
respective Property, or a proceeding described in Section 7.6(iv) shall be instituted against the Company or any of its Subsidiaries and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period
of 60 consecutive days. 
  
 7.8 Any court, government or
governmental agency shall without appropriate compensation condemn, seize or otherwise appropriate, or take custody or control of (each a “Condemnation”), all or any portion of the Property of the Company or any of its Subsidiaries which,
when taken together with all other Property of the Company and its Subsidiaries so condemned, seized, appropriated, or taken custody or control of, during the twelve-month period ending with the month in which any such Condemnation occurs,
constitutes a Substantial Portion and could reasonably be expected to have a Material Adverse Effect. 
  
 7.9 The Company or any of its Subsidiaries shall fail within 90 days to pay, bond or otherwise discharge any judgment or order for the payment of money in
excess of $15,000,000, which is not stayed on appeal. 
  
 7.10 Any
member of the Controlled Group shall fail to pay when due after the expiration of any applicable grace period an amount or amounts aggregating in excess of $1,000,000 which it shall have become liable to pay under Title IV of ERISA; or notice of
intent to terminate a Single Employer Plan with Unfunded Liabilities in excess of $1,000,000 (a “Material Plan”) shall be filed under Section 4041(c) of ERISA by any member of the Controlled Group, any plan administrator or any
combination of the foregoing; or PBGC shall institute proceedings under which it is likely to prevail under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a
trustee to be appointed to administer any Material Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or there shall occur a complete or partial
withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which causes one or more members of the Controlled Group to incur a current payment obligation in excess of
$1,000,000. 
  
 7.11 The occurrence of any Change in Control.

  
 7.12 Any Guaranty shall fail to remain in full force or effect
or any action shall be taken to discontinue or assert the invalidity or unenforceability of any Guaranty or any Guarantor denies that it has any further liability under any Guaranty to which it is a party, or gives notice to such effect. 

 

 49 

 ARTICLE VIII 
  
 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES 
  
 8.1 Acceleration; Facility LC Collateral Account. 
  
 (a) If any Default described in Section 7.6 or 7.7 occurs, the obligations of the Lenders to make Loans hereunder and
the obligation and power of the LC Issuer to issue Facility LCs shall automatically terminate and the Obligations shall immediately become due and payable without presentment, demand, protest or notice of any kind, all of which the Borrowers hereby
expressly waive and without any election or action on the part of the Agent, the LC Issuer or any Lender and the Company will be and become thereby unconditionally obligated, without any further notice, act or demand, to pay to the Agent an amount
in immediately available funds, which funds shall be held in the Facility LC Collateral Account, equal to the difference of (x) the amount of LC Obligations at such time, less (y) the amount on deposit in the Facility LC Collateral Account
at such time which is free and clear of all rights and claims of third parties and has not been applied against the Obligations (such difference, the “Collateral Shortfall Amount”) 
  
 (b) If any Default occurs and is continuing (other than a Default described
in Section 7.6 or 7.7), the Required Lenders may (a) terminate or suspend the obligations of the Lenders to make Loans and the obligation and power of the LC Issuer to issue Facility LCs, or declare the Obligations to be due and payable,
or both, whereupon (if so declared) the Obligations shall become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which the Borrowers hereby expressly waive, and (b) upon notice to the Company and
in addition to the continuing right to demand payment of all amounts payable under this Agreement, make demand on the Company to pay, and the Company will, forthwith upon such demand and without any further notice or act, pay to the Agent the
Collateral Shortfall Amount, which funds shall be deposited in the Facility LC Collateral Account. 
  
 (i) If at any time while any Default is continuing, the Agent determines that the Collateral Shortfall Amount at such time is greater than zero, the
Agent may make demand on the Company to pay, and the Company will, forthwith upon such demand and without any further notice or act, pay to the Agent the Collateral Shortfall Amount, which funds shall be deposited in the Facility LC Collateral
Account. 
  
 (ii) The Agent may at any time or from time to time
after funds are deposited in the Facility LC Collateral Account, apply such funds to the payment of the Obligations owing under this Agreement and any other amounts as shall from time to time have become due and payable by the Company to the Lenders
or the LC Issuer under the Loan Documents. 
  
 (iii) At any time
while any Default is continuing, neither the Company nor any Person claiming on behalf of or through the Company shall have any right to withdraw any of the funds held in the Facility LC Collateral Account. After all of the Obligations owing under
this Agreement have been indefeasibly paid in full and the Aggregate Commitment has been terminated, any funds remaining in the Facility LC Collateral Account shall be returned by the Agent to the Company or paid to whomever may be legally entitled
thereto at such time. 
  
 (iv) After acceleration of the maturity
of the Obligations or termination of 

  

 50 

 
the obligations of the Lenders to make Loans and the obligation and power of the LC Issuer to issue Facility LCs hereunder as a result of any Default (other
than any Default as described in Section 7.6 or 7.7 with respect to any Borrower) and before any judgment or decree for the payment of the Obligations due shall have been obtained or entered, the Required Lenders (in their sole discretion) may
direct the Agent and upon such direction the Agent shall, by notice to the Company, rescind and annul such acceleration and/or termination. 
  
 8.2 Amendments. 
  
 8.2.1 Subject to the provisions of this Article VIII, the Required Lenders (or the Agent with the consent in writing of the Required Lenders) and the
Borrowers may enter into agreements supplemental hereto for the purpose of adding or modifying any provisions to the Loan Documents or changing in any manner the rights of the Lenders or the Borrowers hereunder or waiving any Default hereunder;
provided however, that no such supplemental agreement shall, without the consent of all of the Lenders: 
  
 (a) Extend the final maturity of any Loan, or extend the expiry date of any Facility LC to a date after the Facility Termination Date or postpone any
regularly scheduled payment of principal of any Loan or forgive all or any portion of the principal amount thereof or any Reimbursement Obligation related thereto, or reduce the rate or extend the time of payment of interest or fees thereon or
Reimbursement Obligation related thereto. 
  
 (b) Modify the
definition of Required Lenders. 
  
 (c) Extend the Facility
Termination Date, or reduce the amount or extend the payment date for, the mandatory payments required under Section 2.7, or increase the amount of any Commitment of any Lender hereunder or the Aggregate Revolving Credit Commitments or the
Aggregate Commitments (other than any increase in accordance with Section 2.1(d) or 2.1(g)), or permit any Borrower to assign its rights under this Agreement. 
  
 (d) Amend this Section 8.2.1. 
  

(e) Release any Borrower or any Guarantor. 
  
 (f) Change Section 2.11 in a manner that would alter the pro rata sharing of payments required thereby. 
  
 8.2.2 In addition to amendments effected pursuant to the foregoing, the
Schedules may be amended as follows: 
  
 (a) Schedule 1.1(b) will
be amended to add Subsidiaries of the Company as additional Foreign Subsidiary Borrowers upon (A) execution and delivery by the Company, any such Foreign Subsidiary Borrower and the Agent, of a Joinder Agreement providing for any such
Subsidiary to become a Foreign Subsidiary Borrower, (B) delivery to the Agent of (a) such other documents with respect thereto as the Agent shall reasonably request and (b) the written approval of the Agent in its sole discretion.

  
 (b) Schedule 1.1(b) will be amended to remove any Subsidiary
as a Foreign Subsidiary Borrower upon (A) written notice by the Company to the Agent to such effect and (B) repayment in full of all outstanding Loans of such Foreign Subsidiary Borrower. 
  

 51 

 (c) Schedule 2.16 may be amended, modified, supplemented or replaced from time to time with the consent
of the Swing Line Lender and the Company. 
  
 8.2.3 No
modification or waiver of any provision of this Agreement relating to the Agent shall be effective without the written consent of the Agent, no amendment of any provision relating to the Swing Line Lender shall be effective without the written
consent of the Swing Line Lender and no amendment of any provision relating to the LC Issuer shall be effective without the written consent of the LC Issuer. The Agent may waive payment of the fee required under Section 13.3.2 without obtaining
the consent of any other party to this Agreement. Notwithstanding anything herein to the contrary, any Defaulting Lender shall not be entitled to vote (whether to consent or to withhold its consent) with respect to any amendment, modification,
termination or waiver other than with respect to any increase in the amount of such Defaulting Lender’s Commitment and any forgiveness of any principal amount of any Loan or any Reimbursement Obligation due such Defaulting Lender, and, for
purposes of determining the Required Lenders, the Commitments and the Loans of such Defaulting Lender shall be disregarded and the Agent shall have the ability, but not the obligation, to replace any such Defaulting Lender with another lender or
lenders. 
  
 8.3 Preservation of Rights. No delay or
omission of the Lenders, the LC Issuer or the Agent to exercise any right under the Loan Documents shall impair such right or be construed to be a waiver of any Default or an acquiescence therein, and the making of a Credit Extension notwithstanding
the existence of a Default or the inability of the 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 the Loan Documents whatsoever shall be valid unless in writing signed by the Lenders required pursuant to
Section 8.2, and then only to the extent in such writing specifically set forth. All remedies contained in the Loan Documents or by law afforded shall be cumulative and all shall be available to the Agent, the LC Issuer and the Lenders until
the Obligations have been paid in full. 
  
 ARTICLE IX

  
 GUARANTEE 
  
 9.1 Guarantee. 
  
 (a) The Company hereby unconditionally and irrevocably guarantees to the
Agent and the Lenders and their respective successors, endorsees, transferees and assigns, the prompt and complete payment and performance by the Foreign Subsidiary Borrowers when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations. 
  
 (b) The Company further agrees to pay any and
all expenses (including, without limitation, all reasonable fees and disbursements of counsel) which may be paid or incurred by the Agent, or any Lender in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against, the Company under this Section. This Section shall remain in full force and effect until the Obligations are paid in full and the
Commitments are terminated, notwithstanding that from time to time prior thereto the Borrowers may be free from any Obligations. 
  

 52 

 (c) No payment or payments made by any Borrower or any other Person or received or collected by the Agent
or any Lender from any Borrower or any other Person by virtue of any action or proceeding or any set-off or appropriation or application, at any time or from time to time, in reduction of or in payment of the Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of the Company hereunder which shall, notwithstanding any such payment or payments, remain liable hereunder for the Obligations until the Obligations are paid in full and the Commitments are
terminated. 
  
 (d) The Company agrees that whenever, at any time,
or from time to time, it shall make any payment to the Agent or any Lender on account of its liability under this Section, it will notify the Agent and such Lender in writing that such payment is made under this Section for such purpose. 

 
 9.2 No Subrogation. Notwithstanding any payment or payments made by
the Company hereunder, or any set-off or application of funds of the Company by the Agent or any Lender, the Company shall not be entitled to be subrogated to any of the rights of the Agent or any Lender against the Borrowers or against any
collateral security or guarantee or right of offset held by the Agent or any Lender for the payment of the Obligations, nor shall the Company seek or be entitled to seek any contribution or reimbursement from the Borrowers in respect of payments
made by the Company hereunder, until all amounts owing to the Agent and the Lenders by the Borrowers on account of the Obligations are paid in full and the Commitments are terminated. If any amount shall be paid to the Company on account of such
subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by the Company in trust for the Agent and the Lenders, segregated from other funds of the Company, and shall, forthwith upon
receipt by the Company, be turned over to the Agent in the exact form received by the Company (duly endorsed by the Company to the Agent, if required), to be applied against the Obligations, whether matured or unmatured, in such order as Agent may
determine. The provisions of this paragraph shall survive the termination of this Agreement and the payment in full of the Obligations and the termination of the Commitments. 
  
 9.3 Amendments, etc. with respect to the Obligations; Waiver of Rights. The Company shall remain obligated hereunder
notwithstanding that, without any reservation of rights against the Company, and without notice to or further assent by the Company, any demand for payment of any of the Obligations made by the Agent or any Lender may be rescinded by such Agent or
such Lender, and any of the Obligations continued, and the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Agent or any Lender, and any Loan Documents and any other documents executed and delivered in connection therewith
may be amended, modified, supplemented or terminated, in whole or in part, in accordance with the provisions thereof as the Agent (or the requisite Lenders, as the case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Agent or any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. None of the Agent or any Lender shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Obligations or for this Agreement or any property subject thereto. When making any demand hereunder against the Company, the Agent or any Lender may, but shall be under no
obligation to, make a similar demand on the Borrowers or any other guarantor, and any failure by the Agent or any Lender to make any such demand or to collect any payments from the Borrowers or any such other guarantor or any release of the
Borrowers or such other guarantor shall not relieve the Company of its obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Agent or any Lender against the
Company. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
  

 53 

 9.4 Guarantee Absolute and Unconditional. The Company waives any and all notice of the creation,
renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Agent or any Lender upon this Agreement or acceptance of this Agreement; the Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Agreement; and all dealings between the Borrowers and the Company, on the one hand, and the Agent and the Lenders, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon this Agreement. The Company waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrowers and the Company with respect
to the Obligations. This Article IX shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity, regularity or enforceability of this Agreement, any other Loan Document, any of the
Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense of
payment or performance by the Borrowers) which may at any time be available to or be asserted by the Borrowers against the Agent or any Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrowers or
the Company) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrowers for the Obligations, or of the Company under this Section 9.4, in bankruptcy or in any other instance (other than a defense of
payment or performance by the Borrowers). When pursuing its rights and remedies hereunder against the Company, the Agent and any Lender may, but shall be under no obligation to, pursue such rights and remedies as it may have against the Borrowers or
any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Agent or any Lender to pursue such other rights or remedies or to collect any payments from the
Borrowers or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrowers or any such other Person or of any such collateral security, guarantee or right
of offset, shall not relieve the Company of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Agent or any Lender against the Company. This Article IX
shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Company and its successors and assigns, and shall inure to the benefit of the Agent and the Lenders, and their respective successors,
indorsees, transferees and assigns, until all the Obligations and the obligations of the Company under this Agreement shall have been satisfied by payment in full and the Commitments shall be terminated, notwithstanding that from time to time during
the term of this Agreement the Borrowers may be free from any Obligations. 
  
 9.5 Reinstatement. This Article IX shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be
restored or returned by the Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Borrower or upon or as a result of the appointment of a receiver, intervenor or conservator of, or Trustee or similar
officer for, any Borrower or any substantial part of its property, or otherwise, all as though such payments had not been made. 
  
 9.6 Payments. The Company hereby agrees that all payments required to be made by it hereunder will be made to the Agent without set-off or
counterclaim in accordance with the terms of the Obligations, including, without limitation, in the currency in which payment is due. 
  

 54 

 ARTICLE X 
  

GENERAL PROVISIONS 
  
 10.1 Survival of Representations. All representations and warranties of the Borrowers contained in this Agreement shall survive delivery of the
Loan Documents and the making of the Credit Extensions herein contemplated. 
  
 10.2 Governmental Regulation. Anything contained in this Agreement to the contrary notwithstanding, neither the LC Issuer nor any Lender shall be obligated to extend credit to a Borrower in violation of any
limitation or prohibition provided by any applicable statute or regulation. 
  
 10.3 Taxes. Subject to any limitations set forth in Section 3.6, any taxes (excluding income taxes and franchise taxes (imposed in lieu of income taxes) imposed on the Agent or any Lender as a result of a
present or former connection between the Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely
from the Agent or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document)) or other similar assessments or charges made by any governmental or revenue
authority in respect of the Loan Documents shall be paid by the Company, together with interest and penalties, if any. 
  
 10.4 Headings. Section headings in the Loan Documents are for convenience of reference only, and shall not govern the interpretation of any of the
provisions of the Loan Documents. 
  
 10.5 Entire
Agreement. The Loan Documents embody the entire agreement and understanding among the Borrowers, the Agent, the LC Issuer and the Lenders and supersede all prior agreements and understandings among the Borrowers, the Agent, the LC Issuer and the
Lenders relating to the subject matter thereof other than any fee letters among any Borrowers and any of the Agent or Arranger and any other agreements of any of the Borrowers with the Agent which survive the execution of the Loan Documents.

  
 10.6 Several Obligations; Benefits of this Agreement.
The respective obligations of the Lenders hereunder are several and not joint and no Lender shall be the partner or agent of any other (except to the extent to which the Agent is authorized to act as such). The failure of any Lender to perform any
of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder. This Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their
respective successors and assigns. 
  
 10.7 Expenses;
Indemnification. 
  
 (a) The Borrowers shall reimburse on
demand the Agent and the Arranger for any reasonable costs, and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the Agent) paid or incurred by the Agent or the Arranger in connection with the
preparation, negotiation, execution, delivery, syndication, review, amendment, modification, and administration of the Loan Documents. The Borrowers also agree to reimburse on demand the Agent, the LC Issuer, the Arranger and the Lenders for any
reasonable costs, internal charges and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the Agent, the LC Issuer, the Arranger and the Lenders, which attorneys may be employees of the Agent, the LC
Issuer, the Arranger 

  

 55 

 
or the Lenders) paid or incurred by the Agent, the LC Issuer, the Arranger or any Lender in connection with the collection and enforcement of the Loan
Documents. The Borrowers acknowledge and agree that from time to time the Agent may prepare and may distribute to the Lenders (but shall have no obligation or duty to prepare or to distribute to the Lenders) certain audit reports (the
“Reports”) pertaining to any Borrower’s and Guarantors’ assets for internal use by the Agent from information furnished to it by or on behalf of the Borrowers, after the Agent has exercised its rights of inspection pursuant to
this Agreement; provided that, if any Lender requests copies of any future similar Reports which the Agent has prepared, then the Agent will provide such reports to such Lender provided that such Lender has executed an indemnity agreement acceptable
to the Agent. 
  
 (b) The Borrowers hereby further agree to
indemnify the Agent, the LC Issuer, the Arranger and each Lender, and their respective directors, officers, employees and advisors against all losses, claims, damages, penalties, judgments, liabilities and expenses (including, without limitation,
all expenses of litigation or preparation therefor whether or not the Agent, the LC Issuer, the Arranger or any Lender is a party thereto) which any of them may pay or incur at any time arising out of or relating to this Agreement, the other Loan
Documents, the transactions contemplated hereby or the direct or indirect application or proposed application of the proceeds of any Credit Extension hereunder except to the extent that they are determined in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the party seeking indemnification. The obligations of the Borrowers under this Section 10.7 shall survive the termination of this Agreement.

  
 10.8 Numbers of Documents. All statements, notices,
closing documents, and requests hereunder shall be furnished to the Agent with sufficient counterparts so that the Agent may furnish one to each of the Lenders. 
  

10.9 Accounting. Except as provided to the contrary herein, all accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting Principles. For purposes of Article VI (including any baskets or limitations expressed in U.S. Dollars therein) of this Agreement, any Indebtedness, Investment or other
amount made or incurred in any currency other than U.S. Dollars shall be deemed to be the U.S. Dollar Equivalent thereof. 
  
 10.10 Severability of Provisions. Any provision in any Loan Document that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the
provisions of all Loan Documents are declared to be severable. 
  
 10.11 Nonliability of Lenders. The relationship between the Borrowers and the Lenders and the Agent shall be solely that of borrower and lender. Neither the Agent, the LC Issuer nor any Lender shall have any fiduciary
responsibilities to any Borrower. Neither the Agent, the LC Issuer nor any Lender undertakes any responsibility to any Borrower to review or inform any Borrower of any matter in connection with any phase of such Borrower’s business or
operations. Each Borrower agrees that neither the Agent, the LC Issuer nor any Lender shall have liability to any Borrower (whether sounding in tort, contract or otherwise) for losses suffered by any Borrower in connection with, arising out of, or
in any way related to, the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined by a court of competent jurisdiction in a final and
non-appealable order that such losses resulted from the gross negligence or willful misconduct of, or violation of applicable laws or any of the Loan Documents by, the party from which recovery is sought. Neither the Agent, the LC Issuer nor any
Lender shall have any 

  

 56 

 
liability with respect to, and each Borrower hereby waives, releases and agrees not to sue for, any special, indirect or consequential damages suffered by
the Borrowers in connection with, arising out of, or in any way related to the Loan Documents or the transactions contemplated thereby. 
  
 10.12 Confidentiality. Each Lender agrees to hold any confidential information which it may receive from any Borrower pursuant to this Agreement in
confidence, and will not disclose or use for any purpose other than its credit evaluation under this Agreement such confidential information, except for disclosure: (i) to any Transferee or prospective Transferee or to any direct, indirect,
actual or prospective counterparty (and its advisor) to any swap, derivative or securitization transaction related to the obligations under this Agreement to the extent provided in Section 13.4; (ii) to any affiliate of such Lender, or any
officer, director, employee or agent of such affiliate; provided, that such affiliate agrees to hold any confidential information which it may receive in confidence and not to disclose or use such confidential information for any purpose
other than to assist the lender in its credit evaluation under this Agreement; (iii) to legal counsel, accountants and other professional advisors to that Lender (or such affiliate thereof) to the extent necessary to advise that Lender (or such
affiliate thereof) concerning its rights or obligations in respect of this Agreement; provided, that such professional advisor agrees to hold any confidential information which it may receive in confidence and not to disclose or use such
confidential information for any purpose other than advising that Lender with respect to its rights and obligations under this Agreement; (iv) to regulatory officials to the extent required by applicable law, rule, regulations, order, policy or
directive (whether or not any such policy or directive has the force of law); (v) pursuant to any order of any court, arbitrator or Governmental Authority of competent jurisdiction (or as otherwise required by law); provided, however,
that the Lender (or other Person given confidential information by such Lender) shall provide the Company with prompt notice of any such required disclosure so that the Company may seek a protective order or other appropriate remedy, unless such
notice is prohibited under applicable law, and in the event that such protective order or other remedy is not obtained, such Lender (or such other Person) will furnish only that portion of the confidential information which is legally required, and
(vi) to the extent reasonably necessary in connection with the exercise of any remedy under this Agreement or any other Loan Document. Previously confidential information that is or becomes available to the public or becomes available to such
Lender other than as a result of disclosure by (i) any Lender prohibited by this Agreement or (ii) any person to whom a Lender is permitted to disclose such information under obligation of confidentiality as provided in this
Section 10.12, shall no longer be subject to the confidentiality provisions of this Section 10.12. Notwithstanding anything herein to the contrary, confidential information shall not include, and the Agent and each Lender (and each
employee, representative or other agent of the Agent and any Lender for so long as they remain an employee, representative or other agent) may disclose to any and all Persons, without limitation of any kind, the “tax treatment” and
“tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are or have been provided
to the Agent or any Lender relating to such “tax treatment” or “tax structure”; provided that with respect to any document or similar item that in either case contains information concerning the “tax treatment”
or “tax structure” of the transactions contemplated hereby as well as other information, this sentence shall only apply to such portions of the document or similar item that relate to the “tax treatment” or “tax
structure” of the transactions contemplated hereby. 
  
 10.13
Nonreliance. Each Lender hereby represents that it is not relying on or looking to any Margin Stock for the repayment of the Credit Extensions provided for herein. 
  

 57 

 ARTICLE XI 
  

THE AGENT 
  
 11.1 Appointment; Nature of Relationship. JPMCB is hereby appointed by the Lenders as the Agent hereunder and under each other Loan Document, and
each of the Lenders irrevocably authorizes the Agent to act as the contractual representative of such Lender with the rights and duties expressly set forth herein and in the other Loan Documents. The Agent agrees to act as such contractual
representative upon the express conditions contained in this Article XI. Notwithstanding the use of the defined term “Agent,” it is expressly understood and agreed that the Agent shall not have any fiduciary responsibilities to any Lender
by reason of this Agreement or any other Loan Document and that the Agent is merely acting as the contractual representative of the Lenders with only those duties as are expressly set forth in this Agreement and the other Loan Documents. In its
capacity as the Lenders’ contractual representative, the Agent (i) does not hereby assume any fiduciary duties to any of the Lenders, (ii) is a “representative” of the Lenders within the meaning of Section 9-105 of the
Uniform Commercial Code and (iii) is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents. Each of the Lenders hereby agrees to assert no
claim against the Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Lender hereby waives. 
  
 11.2 Powers. The Agent shall have and may exercise such powers under the Loan Documents as are specifically delegated to the Agent by the terms of
each thereof, together with such powers as are reasonably incidental thereto. The Agent shall not have any implied duties to the Lenders, or any obligation to the Lenders to take any action thereunder except any action specifically provided by the
Loan Documents to be taken by the Agent. 
  
 11.3 General
Immunity. Neither Agent nor any of its directors, officers, agents or employees shall be liable to the Borrowers, the Lenders or any Lender for (a) any action taken or omitted to be taken by it or them hereunder or under any other Loan
Document or in connection herewith or therewith except to the extent such action or inaction is determined in a final non-appealable judgment by a court of competent jurisdiction to have arisen from the gross negligence or willful misconduct of such
Person; or (b) any determination by the Agent that compliance with any law or any governmental or quasi-governmental rule, regulation, order, policy, guideline or directive (whether or not having the force of law) requires the Advances and
Commitments hereunder to be classified as being part of a “highly leveraged transaction”. 
  
 11.4 No Responsibility for Loans, Recitals, etc. Neither the Agent nor any of its directors, officers, agents or employees shall be responsible for
or have any duty to ascertain, inquire into, or verify (i) any statement, warranty or representation made in connection with any Loan Document or any borrowing hereunder; (ii) the performance or observance of any of the covenants or
agreements of any obligor under any Loan Document, including, without limitation, any agreement by an obligor to furnish information directly to each Lender; (iii) the satisfaction of any condition specified in Article IV; (iv) the
validity, enforceability, effectiveness, sufficiency or genuineness of any Loan Document or any other instrument or writing furnished in connection therewith; (v) the value, sufficiency, creation, perfection or priority of any Lien in any
collateral security; (vi) the existence or possible existence of any Default or Unmatured Default; or (vii) the financial condition of any Borrower or Guarantor or any of their respective Subsidiaries. The Agent shall not have any duty to
disclose to the Lenders information that is not required to be furnished by the Borrowers to such Agent at the time, but is voluntarily furnished by the Borrowers to the Agent (either in its capacity as the Agent or in its individual capacity).

  
 11.5 Action on Instructions of Lenders. The Agent shall
in all cases be fully protected in acting, or in refraining from acting, hereunder and under any other Loan Document in accordance with 

  

 58 

 
written instructions signed by the Required Lenders (or all Lenders if required under Section 8.2.1), and such instructions and any action taken or
failure to act pursuant thereto shall be binding on all of the Lenders and on all holders of the Obligations. The Lenders hereby acknowledge that the Agent shall not be under any duty to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement or any other Loan Document unless it shall be requested in writing to do so by the Required Lenders. The Agent shall be fully justified in failing or refusing to take any action hereunder and under any
other Loan Document unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action. 
  
 11.6 Employment of Agents and Counsel. The Agent may execute any of
its duties as Agent hereunder and under any other Loan Document by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, except as to money or securities received by it or its authorized agents, for the
default or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care. The Agent shall be entitled to advice of counsel concerning the contractual arrangement between the Agent and the Lenders and all matters pertaining
to the Agent’s duties hereunder and under any other Loan Document. 
  
 11.7 Reliance on Documents; Counsel. The Agent shall be entitled to rely upon any Note, notice, consent, certificate, affidavit, letter, telegram, statement, paper or document believed by it to be genuine and correct and to have been
signed or sent by the proper person or persons, and, in respect to legal matters, upon the opinion of counsel selected by the Agent, which counsel may be employees of the Agent. 
  
 11.8 Agent’s Reimbursement and Indemnification. The Lenders agree to reimburse and indemnify (to the extent not
reimbursed by a Borrower and without limiting the obligation of any Borrower to do so) the Agent ratably in proportion to the U.S. Dollar Equivalent of their respective Commitments (or, if the Commitments have been terminated, in proportion to
the U.S. Dollar Equivalent of their respective Commitments immediately prior to such termination) (i) for any amounts not reimbursed by the Company for which the Agent is entitled to reimbursement by the Company or the other Borrowers
under the Loan Documents, (ii) for any other expenses incurred by the Agent on behalf of the Lenders, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents, and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted against the Agent in any way relating to or arising
out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated thereby, or the enforcement of any of the terms thereof or of any such other documents, provided that no Lender shall be liable
for any of the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Agent. The obligations of the
Lenders under this Section 11.8 shall survive payment of the Obligations and termination of this Agreement. 
  
 11.9 Notice of Default. The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Unmatured Default hereunder
unless the Agent has received written notice from a Lender or a Borrower referring to this Agreement describing such Default or Unmatured Default and stating that such notice is a “notice of default”. In the event that the Agent receives
such a notice, the Agent shall give prompt notice thereof to the Lenders. 
  
 11.10 Rights as a Lender. In the event the Agent is a Lender, the Agent shall have the same rights and powers hereunder and under any other Loan Document as any Lender and may exercise the 

  

 59 

 
same as though it were not an Agent, and the term “Lender” or “Lenders” shall, at any time when the Agent is a Lender, unless the context
otherwise indicates, include the Agent in its individual capacity. The Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of trust, debt, equity or other transaction, in addition to those contemplated
by this Agreement or any other Loan Document, with the Company or any of its Subsidiaries in which the Company or such Subsidiary is not restricted hereby from engaging with any other Person. 
  
 11.11 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arranger or any other Lender and based on the financial statements prepared by the Borrowers and such other documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Agreement and the other Loan Documents. Each Lender also acknowledges that it will, independently and without reliance upon the Agent, the Arranger or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents. 
  

11.12 Successor Agent. The Agent may resign at any time by giving written notice thereof to the Lenders and the Company, such resignation to be
effective upon the appointment of a successor Agent or, if no such successor Agent has been appointed, forty-five days after the retiring Agent gives notice of its intention to resign. The Agent may be removed at any time with or without cause by
written notice received by the Agent from the Required Lenders, such removal to be effective on the date specified by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to appoint, on behalf of the
Borrowers and the Lenders, a successor Agent to such Agent. If no such successor Agent shall have been so appointed by the Required Lenders within thirty days after such resigning Agent’s giving notice of its intention to resign, then such
resigning Agent may appoint, on behalf of the Company and the Lenders, a successor Agent for itself. If the Agent has resigned or been removed and no successor Agent has been appointed, the Lenders may perform all the duties of the Agent hereunder
and the Company shall make all payments in respect of the Obligations to the applicable Lender and for all other purposes shall deal directly with the Lenders. No successor Agent shall be deemed to be appointed hereunder until such successor Agent
has accepted the appointment. Any such successor Agent shall be a commercial bank having capital and retained earnings of at least $500,000,000. Upon the acceptance of any appointment as an Agent hereunder by a successor Agent, such successor Agent
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the resigning or removed Agent. Upon the effectiveness of the resignation or removal of the Agent, the resigning or removed Agent shall be discharged
from its duties and obligations hereunder and under the Loan Documents. After the effectiveness of the resignation or removal of an Agent, the provisions of this Article XI shall continue in effect for the benefit of the Agent in respect of any
actions taken or omitted to be taken by it while it was acting as an Agent hereunder and under the other Loan Documents. 
  
 11.13 Delegation to Affiliates. The Borrowers and the Lenders agree that the Agent may delegate any of its duties under this Agreement to any of
its Affiliates. Any such Affiliate (and such Affiliate’s directors, officers, agents and employees) which performs duties in connection with this Agreement shall be entitled to the same benefits of the indemnification, waiver, and other
protective provisions to which the Agent is entitled under Articles X and XI. 
  
 11.14 Arranger, Syndication Agents and Documentation Agents. Each Lender and each Borrower acknowledges and agrees that the Arranger, each Syndication Agent and each Documentation Agent, in such capacity, shall
not have any duties or responsibilities, nor incur any liabilities, under this Agreement or the other Loan Documents in its capacity as such. 
  

 60 

 ARTICLE XII 
  
 SETOFF; ADJUSTMENTS AMONG LENDERS 
  
 12.1 Setoff. In addition to, and without limitation of, any rights of the Lenders under applicable law, if any
Default occurs, any and all deposits (including all account balances, whether provisional or final and whether or not collected or available) and any other Indebtedness at any time held or owing by any Lender or any Affiliate thereof to or for the
credit or account of any Borrower may be offset and applied toward the payment of the Obligations owing to such Lender by such Borrower pursuant to this Agreement. 
  
 12.2 Ratable Payments. If any Lender, whether by setoff or otherwise, has payment made to it upon its Outstanding
Credit Exposure to a Borrower (other than payments received pursuant to Section 3.1, 3.2, 3.4, 3.6 or 10.7) in a greater proportion than that received by any other Lender, such Lender agrees, promptly upon demand, to purchase a portion of the
Aggregate Outstanding Credit Exposure to such Borrower held by the other Lenders so that after such purchase each Lender will hold its Pro Rata Share of Aggregate Outstanding Credit Exposure to such Borrower. If any Lender, whether in connection
with setoff or amounts which might be subject to setoff or otherwise, receives collateral or other protection or such amounts which may be subject to setoff, such Lender agrees, promptly upon demand, to take such action necessary such that all
Lenders share in the benefits of such collateral ratably in proportion to their respective Pro Rata Share of the Aggregate Outstanding Credit Exposure. In case any such payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made. 
  
 ARTICLE XIII 
  
 BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS 
  
 13.1 Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrowers and the Lenders and their respective successors and assigns, except that (i) the Borrowers shall not have the right to assign their rights or obligations under the Loan
Documents and (ii) any assignment by any Lender must be made in compliance with Section 13.3. Notwithstanding clause (ii) of this Section, any Lender may at any time, without the consent of the Borrowers or the Agent, assign all or
any portion of its rights under this Agreement, and the Loan Documents to a Federal Reserve Bank; provided, however, that no such assignment to a Federal Reserve Bank shall release the transferor Lender from its obligations hereunder. The
Agent may treat the payee of any Loan Document as the owner thereof for all purposes hereof unless and until such payee complies with Section 13.3 in the case of an assignment thereof or, in the case of any other transfer, a written notice of
the transfer is filed with the Agent. Any assignee or transferee of any of the Advances or a Note agrees by acceptance thereof to be bound by all the terms and provisions of the Loan Documents. Any request, authority or consent of any Person, who at
the time of making such request or giving such authority or consent is the owner of any of the Advances or a holder of any Note, shall be conclusive and binding on any subsequent holder, transferee or assignee of such Note or of any Note or Notes
issued in exchange therefor. 
  

 61 

 13.2 Participations. 
  
 13.2.1 Permitted Participants; Effect. Subject to Section 13.4, any Lender may, in the ordinary course of its
business and in accordance with applicable law, at any time sell to one or more banks or other entities (“Participants”) participating interests in any Outstanding Credit Exposure of such Lender, any Note held by such Lender, any
Commitment of such Lender or any other interest of such Lender under the Loan Documents. In the event of any such sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents shall remain
unchanged, such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, such Lender shall remain the holder of its Outstanding Credit Exposure or Note for all purposes under the Loan Documents, all
amounts payable by the Borrowers under this Agreement shall be determined as if such Lender had not sold such participating interests (including without limitation payments with respect to Non-Excluded Taxes), and the Borrowers and the Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under the Loan Documents. 
  
 13.2.2 Voting Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, modification or
waiver of any provision of the Loan Documents other than any amendment, modification or waiver with respect to any Credit Extension or Commitment in which such Participant has an interest which would require the consent of all Lenders under
Section 8.2.1. 
  
 13.2.3 Benefit of Setoff. The
Borrowers agree that each Participant shall be deemed to have the right of setoff provided in Section 12.1 in respect of its participating interest in amounts owing under the Loan Documents to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under the Loan Documents and any such setoff shall be applied to the Obligations, provided that each Lender shall retain the right of setoff provided in Section 12.1 with
respect to the amount of participating interests sold to each Participant. The Lenders agree to share with each Participant, and each Participant, by exercising the right of setoff provided in Section 12.1, agrees to share with each Lender, any
amount received pursuant to the exercise of its right of setoff, such amounts to be shared in accordance with Section 12.2 as if each Participant were a Lender. 
  
 13.3 Assignments. 
  
 13.3.1 Permitted Assignments. Subject to Section 13.4 and the further provisions of this Section 13.3, any Lender may, in the ordinary
course of its business and in accordance with applicable law, at any time assign to one or more banks, finance companies, insurance companies or other financial institutions or funds that are engaged in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business or, any other entity (“Purchasers”) all or any part of its rights and obligations under the Loan Documents. Such assignment shall be substantially in the form of Exhibit G hereto (an
“Assignment”) or in such other form as may be agreed to by the parties thereto. The consent of the Agent, the LC Issuer and the Company shall be required prior to an assignment becoming effective, which consent shall not be unreasonably
withheld or delayed; provided, that, the consent of the Company shall not be required for an assignment to (i) a Lender or an Affiliate of a Lender unless such assignment would result in any Lender holding greater than fifty percent
(50%) of the Commitments, in which case consent of the Company shall be required, or (ii) during the continuance of any Default, any other assignee. Each such assignment shall be in an amount not less than the lesser of (i) $5,000,000
(or its U.S. Dollar Equivalent), or (ii) the remaining amount of the assigning Lender’s Commitment (calculated as at the date of such assignment). No Assignment shall be permitted by a Lender that has any Alternate Currency Commitment
unless (i) the assignee agrees to assume the entire obligation of the assignor to make Alternate Currency Loans and agrees to assume all outstanding Alternate Currency Loans and (ii) such assumptions by the assignee do not result in any
Borrower being required to make additional payments to any Lender under this Agreement. 
  

 62 

 13.3.2 Effect; Effective Date. Upon (i) delivery to the Agent of a notice of assignment,
substantially in the form attached as Exhibit I to Exhibit G hereto (a “Notice of Assignment”), together with any consents required by Section 13.3.1, and (ii) payment of a $3,500 fee to the Agent for processing such assignment
(provided that such fee shall not be required if such assignment is to an existing Lender or an Affiliate thereof), such assignment shall become effective on the effective date specified in such Notice of Assignment. The Notice of Assignment shall
contain a representation by the Purchaser to the effect that none of the consideration used to make the purchase of the Commitment and Outstanding Credit Exposure under the applicable assignment agreement are “plan assets” as defined under
ERISA and that the rights and interests of the Purchaser in and under the Loan Documents will not be “plan assets” under ERISA. On and after the effective date of such assignment, such Purchaser shall for all purposes be a Lender party to
this Agreement and any other Loan Document executed by the Lenders and shall have all the rights and obligations of a Lender under the Loan Documents, to the same extent as if it were an original party hereto, and no further consent or action by the
Company, the Lenders or the Agent shall be required to release the transferor Lender with respect to the percentage of the Aggregate Commitments and Outstanding Credit Exposure assigned to such Purchaser. Upon the consummation of any assignment to a
Purchaser pursuant to this Section 13.3.2, the transferor Lender, the Agent and the Company shall make appropriate arrangements so that replacement Notes, if applicable, are issued to such transferor Lender and new Notes or, as appropriate,
replacement Notes, are issued to such Purchaser, in each case in principal amounts reflecting their respective Commitments, as adjusted pursuant to such assignment. 
  
 13.4 Dissemination of Information. Each Borrower authorizes each Lender to disclose to any Participant or Purchaser
or any other Person acquiring an interest in the Loan Documents by operation of law or to any direct, indirect, actual or prospective counterparty (and its advisor) to any swap, derivative or securitization transaction related to the obligations
under this Agreement (each a “Transferee”) and any prospective Transferee any and all information in such Lender’s possession concerning the creditworthiness of the Company and its Subsidiaries, provided that each Transferee
and prospective Transferee agrees to be bound by Section 10.12. 
  
 13.5 Tax Treatment. If any interest in any Loan Document is transferred to any Transferee which is organized under the laws of any jurisdiction other than the United States or any State thereof (in the case of a Transferee which is a
Lender to the Company), or of the jurisdiction in which a Foreign Subsidiary Borrower is located (in the case of a Trustee which is a Lender to such Foreign Subsidiary Borrower), the transferor Lender shall cause such Transferee, concurrently with
the effectiveness of such transfer, to comply with the provisions of Section 3.6. No interest in a Loan may be transferred to any Person if as a consequence of such transfer any Borrower shall be required to make additional payments to any
Lender under this Agreement. 
  

 63 

 ARTICLE XIV 
  
 NOTICES 
  
 14.1 Notices. Except as otherwise permitted by Article II with respect to borrowing notices, all notices, requests and other communications to any
party hereunder shall be in writing (including bank wire, facsimile transmission or similar writing) and shall be given to such party: (x) in the case of a Borrower or the Agent, at its address or facsimile number set forth on the signature
pages hereof, (y) in the case of any Lender, at its address or facsimile number on the signature pages hereto or otherwise established pursuant to an Assignment or (z) in the case of any party, such other address or facsimile number as
such party may hereafter specify for the purpose by notice to the Agent and the Borrowers. Each such notice, request or other communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number
specified in this Section and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other
means, when delivered at the address specified in this Section; provided that notices to the Agent under Article II shall not be effective until received. 
  
 14.2 Change of Address. Any Borrower, the Agent and any Lender may each change the address for service of notice upon
it by a notice in writing to the other parties hereto, which change shall be effective seven (7) days after receipt. 
  
 ARTICLE XV 
  
 COUNTERPARTS 
  
 This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the Borrowers, the Agent, the LC Issuer and the Lenders and each party has notified the Agent by facsimile or telephone, that it has taken such action. 
  
 ARTICLE XVI 
  
 CHOICE OF LAW, CONSENT TO JURISDICTION, 
 WAIVER OF JURY TRIAL, JUDGMENT CURRENCY 
  
 16.1 CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF MICHIGAN, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
  
 16.2 WAIVER OF JURY TRIAL. EACH BORROWER, THE AGENT, THE LC ISSUER AND EACH LENDER HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER. 
  

 64 

 16.3 Submission To Jurisdiction; Waivers. 
  
 (a) Each Borrower hereby irrevocably and unconditionally: 
  
 (i) submits for itself and its property in any legal action
or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of any United States federal or Michigan
state court sitting in Detroit, Michigan and appellate courts from any thereof; 
  
 (ii) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have
to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  
 (iii) agrees that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Company or such Foreign Subsidiary Borrower, as the case may be, at the address specified in Section 14.1, or at such other address of
which the Agent shall have been notified pursuant thereto; 
  
 (iv) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
  
 (v) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred to in this subsection any special, exemplary, punitive or consequential damages. 
  
 (b) Each Foreign Subsidiary Borrower hereby irrevocably appoints the Company as its agent for service of process in any
proceeding referred to in Section 16.3(a) and agrees that service of process in any such proceeding may be made by mailing or delivering a copy thereof to it care of Company at its address for notices set forth in Section 14.1. 

 
 16.4 Acknowledgments. Each Borrower hereby acknowledges that:

  
 (a) it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan Documents; 
  
 (b) none of the Agent or any Lender has any fiduciary relationship with or duty to such Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between the Agent and the Lenders, on the one hand, and the Borrowers, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 

 
 (c) no joint venture is created hereby or by the other
Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Borrowers and the Lenders. 
  

 65 

 16.5 Power of Attorney. Each Foreign Subsidiary Borrower hereby grants to the Company an
irrevocable power of attorney to act as its attorney-in-fact with regard to matters relating to this Agreement and each other Loan Document, including, without limitation, execution and delivery of any amendments, supplements, waivers or other
modifications hereto or thereto, receipt of any notices hereunder or thereunder and receipt of service of process in connection herewith or therewith. Each Foreign Subsidiary Borrower hereby explicitly acknowledges that the Agent and each Lender
have executed and delivered this Agreement and each other Loan Document to which it is a party, and has performed its obligations under this Agreement and each other Loan Document to which it is a party, in reliance upon the irrevocable grant of
such power of attorney pursuant to this subsection. The power of attorney granted by each Foreign Subsidiary Borrower hereunder is coupled with an interest. 
  
 16.6 Judgment. 
  
 (a) If for the purpose of obtaining judgment in any court it is necessary to convert a sum due hereunder in one currency into another currency, the
parties hereto agree, to the fullest extent that they may effectively do so under applicable law, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Agent could purchase the first currency with
such other currency in the city in which it normally conducts its foreign exchange operation for the first currency on the Business Day preceding the day on which final judgment is given. 
  
 (b) The obligation of each Borrower in respect of any sum due from it to any Lender hereunder shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the
extent that on the Business Day following receipt by such Lender of any sum adjudged to be so due in the Judgment Currency such Lender may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency; if
the amount of Agreement Currency so purchased is less than the sum originally due to such Lender in the Agreement Currency, such Borrower agrees notwithstanding any such judgment to indemnify such Lender against such loss, and if the amount of the
Agreement Currency so purchased exceeds the sum originally due to any Lender, such Lender agrees to remit to such Borrower such excess. 
  
 16.7 USA PATRIOT Act. Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”) hereby notifies each Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies each Borrower, which information includes the name and
address of each Borrower and other information that will allow such Lender to identify such Borrower in accordance with the Act. 
  

 66 

 IN WITNESS WHEREOF, the Borrowers, the Lenders and the Agent have executed this Agreement as of the date
first above written. 
  

			
	 KELLY SERVICES, INC.

		
	 By:
	 	 /s/ William K. Gerber

	
	 PRINT NAME: William K. Gerber

	
	 TITLE: Executive Vice President and

	           Chief Financial Officer

	
	 999 West Big Beaver Road

	 Troy, Michigan 48084

	
	 Attention: Sandi Galac

	
	 KELLY SERVICES SINGAPORE PTE LTD.

		
	 By:
	 	 /s/ William K. Gerber

	
	 PRINT NAME: William K. Gerber

	
	 TITLE: Director

	
	 999 West Big Beaver Road

	 Troy, Michigan 48084

	
	 Attention: Sandi Galac

  

 67 

			
	 JPMORGAN CHASE BANK, N.A., as Agent
 and as a Lender

		
	 By:
	 	 /s/ Suzanne Ergastolo

	
	 PRINT NAME: Suzanne Ergastolo

	
	 TITLE: Vice President

	
	 21 S. Clark St.

	 Chicago, Illinois 60670

	
	 Attention: Suzanne Ergastolo

	                  Mail Code: IL
1-0364

  

 68 

			
	 KEYBANK, NATIONAL ASSOCIATION

		
	By:	 	/s/ Donald F. Carmichael, Jr.
	
	PRINT NAME: Donald F. Carmichael, Jr.
	
	TITLE: Vice President
	
	127 Public Square, 6th Floor
	Cleveland, Ohio 44114
	
	 Attention:

  

 69 

			
	 PNC BANK, NATIONAL ASSOCIATION

		
	By:	 	/s/ Thomas A. Majeski
	
	PRINT NAME: Thomas A. Majeski
	
	TITLE: Vice President
	
	  

	  

	  

	
	 Attention:

  

 70 

			
	 COMERICA BANK

		
	By:	 	/s/ Felicia M. Maxwell
	
	PRINT NAME: Felicia M. Maxwell
	
	TITLE: Vice President
	
	500 Woodward Avenue
	M.C. 3269
	Detroit, MI 48226
	
	Attention: Beverly V. Jones

  

 71 

			
	 U.S. BANK NATIONAL ASSOCIATION

		
	By:	 	/s/ Tim Santarius
	
	PRINT NAME: Tim Santarius
	
	TITLE: AVP
	
	  

	  

	  

	
	 Attention:

  

 72 

			
	 BNP PARIBAS

		
	By:	 	/s/ Richard Broeren
	
	PRINT NAME: Richard Broeren
	
	TITLE: Managing Director
		
	By:	 	/s/ Gaye Plunkett
	
	PRINT NAME: Gaye Plunkett
	
	TITLE: Vice President
	
	209 S. LaSalle Street
	Suite 500
	Chicago, IL 60604
	
	Attention: Andrew Strait

  

 73 

			
	 THE BANK OF TOKYO – MITSUBISHI,
 LTD., CHICAGO BRANCH

		
	By:	 	/s/ Tsuguyuki Umene
	
	PRINT NAME: Tsuguyuki Umene
	
	TITLE: Deputy General Manager
	
	227 West Monroe Street
	Suite 2300
	Chicago, Illinois 60606
	
	Attention: Tom Denio

  

 74 

			
	 CHARTER ONE BANK, N.A.

		
	By:	 	/s/ Michael Dolson
	
	PRINT NAME: Michael Dolson
	
	TITLE: Vice President
	
	Charter One Bank
	71 S Wacker Drive, 29th Floor
	Chicago, IL 60606
	
	Attention: Mary Ann Klemm

  

 75 

			
	 ROYAL BANK OF CANADA

		
	 By:
	 	 /s/ Dustin Craven

	
	 PRINT NAME: Dustin Craven

	
	 TITLE: Attorney-in-Fact

	
	 Royal Bank of Canada

	 One Liberty Plaza, 3rd Floor

	 New York, New York 10006-1404

	
	 Attention: Dustin Craven / Nigel Delph

  

 76 

			
	UNICREDITO ITALIANO
		
	By:	 	/s/ Christopher Eldin
	
	PRINT NAME: Christopher Eldin
	
	TITLE: FVP & Deputy Manager
		
	By:	 	/s/ Saiyed A. Abbas
	
	PRINT NAME: Saiyed A. Abbas
	
	TITLE: Vice President
	  

	  

	  

	
	 Attention:

  

 77 

			
	 WELLS FARGO BANK, N.A

		
	By:	 	/s/ Pete Martinets
	
	PRINT NAME: Pete Martinets
	
	TITLE: Vice President
	
	Wells Fargo Bank
	230 West Monroe, Suite 2900
	Chicago, IL 60606
	
	Attention: Melissa Nachman
		
	By:	 	/s/ Steven Buehler
	
	PRINT NAME: Steven Buehler
	
	TITLE: Vice President
	
	Wells Fargo Bank
	230 West Monroe, Suite 2900
	Chicago, IL 60606
	
	Attention: Melissa Nachman

  

 78 

			
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ Peter Vanderhorst
	
	PRINT NAME: Peter Vanderhorst
	
	TITLE: Principal
	
	Bank of America, N.A.
	100 Federal Street, MA5-100-09-04
	Boston, MA 02110
	
	Attention: Peter Vanderhorst

  

 79 

 EXHIBIT A 
  

PRICING SCHEDULE 
  

									
	 APPLICABLE
 MARGIN

	  	 LEVEL I
 STATUS

	  	 LEVEL II
 STATUS

	  	 LEVEL III
 STATUS

	  	 LEVEL IV
 STATUS

	 Eurocurrency Rate
	  	 40.0 bps
	  	50.0 bps	  	60.0 bps	  	80.0 bps
					
	 LC Fee
	  	 40.0 bps
	  	50.0 bps	  	60.0 bps	  	80.0 bps
					
	 Facility Fee
	  	 10.0 bps
	  	12.5 bps	  	15.0 bps	  	20.0 bps

  
 For the purposes of
this Schedule, the following terms have the following meanings, subject to the final paragraph of this Schedule: 
  
 “Financials” means the annual or quarterly financial statements of the Company delivered pursuant to Sections 6.1(a) or (b). 
  
 “Level I Status” exists at any date if, as of the last day of the
fiscal quarter of the Company referred to in the most recent Financials, the Total Indebtedness to Total Capitalization Ratio is less than 0.20 to 1.00. 
  
 “Level II Status” exists at any date if, as of the last day of the fiscal quarter of the Company referred to in the most recent Financials,
(i) the Company has not qualified for Level I Status and (ii) the Total Indebtedness to Total Capitalization Ratio is less than 0.30 to 1.00. 
  
 “Level III Status” exists at any date if, as of the last day of the fiscal quarter of the Company referred to in the most recent Financials,
(i) the Company has not qualified for Level I Status or Level II Status and (ii) the Total Indebtedness to Total Capitalization Ratio is less than 0.40 to 1.00. 
  
 “Level IV Status” exists at any date if the Company has not qualified for Level I Status, Level II Status or Level
III Status. 
  
 “Status” means Level I Status, Level II
Status, Level III Status or Level IV Status. 
  
 The Applicable
Margin shall be determined in accordance with the foregoing table based on the Company’s Status as reflected in the then most recent Financials. Adjustments, if any, to the Applicable Margin shall be effective five Business Days after the Agent
has received the applicable Financials. If the Company fails to deliver the Financials to the Agent at the time required pursuant to the Credit Agreement, then the Applicable Margin shall be the highest Applicable Margin set forth in the foregoing
table until five days after such Financials are so delivered. 
  

 80 

 EXHIBIT B 
  

JOINDER AGREEMENT 
  
 THIS JOINDER AGREEMENT, dated as of                 ,
        , is entered into by [                        ] (the
“Subsidiary”) pursuant to the Loan Agreement dated as of November 30, 2005 (as amended or modified from time to time, the “Loan Agreement”), among Kelly Services, Inc. (the “Company”), the Foreign Subsidiary
Borrowers party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Agent and as LC Issuer. 
  
 W I T N E S S E T H : 
  
 WHEREAS, the parties to this Joinder Agreement wish to designate the Subsidiary as a Foreign Subsidiary Borrower under the Loan Agreement in the manner hereinafter set forth; and 
  
 WHEREAS, this Joinder Agreement is entered into pursuant to the Loan
Agreement; 
  
 NOW, THEREFORE, in consideration of the premises,
the parties hereto hereby agree as follows: 
  
 1. The Subsidiary
hereby acknowledges that it has received and reviewed a copy of the Loan Agreement and the other Loan Documents and unconditionally agrees to: (a) join the Loan Agreement and the other Loan Documents as a Foreign Subsidiary Borrower,
(b) be bound by, and hereby ratifies and confirms, all covenants, agreements, consents, submissions, appointments, acknowledgments and other terms and provisions attributable to a Foreign Subsidiary Borrower in the Loan Agreement and the other
Loan Documents; and (c) perform all obligations required of it as a Foreign Subsidiary Borrower by the Loan Agreement and the other Loan Documents. 
  
 2. The Subsidiary hereby represents and warrants that the representations and warranties with respect to it contained in Article V of the Agreement are
true and correct in all material respects on the date hereof other than representation and warranties made as of an express date, which shall be true and correct in all material respects as of such express date. 
  
 3. The address and jurisdiction of incorporation of the Subsidiary is set
forth in Schedule A to this Joinder Agreement. 
  
 4. The Company
agrees that its guarantee contained in Article VIII of the Loan Agreement shall remain in full force and effect after giving effect to this Joinder Agreement, including without limitation after including the Subsidiary as a Foreign Subsidiary
Borrower under the Loan Agreement. 
  
 5. This Joinder Agreement
shall be governed by, and construed and interpreted in accordance with, the laws of the State of Michigan. 
  
 6. Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Loan Agreement. 
  
 7. This Joinder Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one agreement. 
  

 81 

 IN WITNESS WHEREOF, each of the undersigned has caused this Joinder Agreement to be duly executed and
delivered as of the day and year set forth above. 
  

			
	  

	as a Foreign Subsidiary Borrower

		
	By:	 	  

	Name:
	Title:
	
	KELLY SERVICES, INC.
		
	By:	 	  

	Name:
	Title:

  
 Accepted and Acknowledged:

  

			
	JPMORGAN CHASE BANK, N.A., as Agent
		
	By:	 	  

	Name:
	Title:

  

 82 

 SCHEDULE A 
  

ADMINISTRATIVE INFORMATION 
  

 83 

 EXHIBIT C 
  

REVOLVING CREDIT NOTE 
  

			
	 $                        
	 	                    ,
        

  
                     (“Company”), unconditionally promises to pay to the order of
             (“Lender”) on or before the Facility Termination Date (as defined in the Loan Agreement hereinafter referred to) for the account of its applicable Lending
Installation the principal sum of              (            ) or the aggregate unpaid principal amount of all
Revolving Credit Loans made by the Lender to the Company pursuant to the Loan Agreement whichever is less, in immediate available funds at the Lending Installation of JPMorgan Chase Bank, N.A., the Agent, designated by the Agent for the Company,
together with interest on the unpaid principal amount hereof at the rates and on the dates set forth in the Loan Agreement. 
  
 The Lender shall, and is hereby authorized to, record in accordance with its usual practice, the date and amount of each Revolving Credit Loan, the date
and amount of each principal payment and the date to which payment of this Note has been extended, provided, however, that failure to do so shall not affect the Company’s obligation to pay amounts due hereunder. 
  
 The Company expressly waives any presentments, demand, protest or notice in
connection with this Revolving Credit Note now, or hereafter, required by applicable law. 
  
 This Revolving Credit Note is one of the Revolving Credit Notes issued pursuant to the provisions of the Loan Agreement dated as of November 30, 2005 among the Company, the Foreign Subsidiary Borrowers, the
Lenders party thereto, the LC Issuer and JPMorgan Chase Bank, N.A., as Agent, as it may be amended from time to time (the “Loan Agreement”), to which Loan Agreement reference is hereby made for a statement of the terms and conditions under
which this Revolving Credit Note may be prepaid or its maturity date extended or accelerated. 
  
 The Revolving Credit Note shall be construed in accordance with and governed by the laws of Michigan applicable to contracts made and performed in Michigan by a Michigan borrower and a national banking association, as
lender. 
  

			
	  

		
	By:	 	  

 
	Title:	 	  

  

 84 

 EXHIBIT D 
  

NOTICE OF DRAWDOWN 
  
 From: [Borrower] 
  
 To: JPMorgan Chase Bank, N.A., as Agent 
  
 Dated:

  
 Dear Sirs: 
  
 1. We refer to the Loan Agreement (the “Loan Agreement”) dated as of November 30, 2005 and made between Kelly
Services, Inc. and certain Foreign Subsidiary Borrowers named therein, as borrowers, JPMorgan Chase Bank, N.A., as agent and LC Issuer and the financial institutions named therein as lenders. Terms defined in the Loan Agreement shall have the same
meaning in this notice. 
  
 2. This notice is irrevocable.

  
 3. We hereby give you notice that, pursuant to the Loan
Agreement and upon the terms and subject to the conditions contained therein, we wish an Advance to be made to us or an existing Advance to be continued as follows: 
  

	 	(a)	Currency and Amount: 

  

	 	(b)	Borrowing Date: 

  

	 	(c)	Initial Interest Period: 

  
 4. If it is not possible, pursuant to Clause 2.3(c) of the Loan Agreement, for the Advance to be made in the currency specified, we would wish [the
Advance to be denominated in [insert requested currency]][that the Advance not be made]. 
  
 5. The proceeds of this drawdown should be credited to [insert account details]. 
  

	
	Yours faithfully,
	
	  

	 Authorised Signatory
 for and on behalf of [Name of
Borrower]

  

 85 

 EXHIBIT E 
  

FORM OF OPINION OF COUNSEL FOR THE BORROWER 
  
 November 30, 2005 
  

	To:	The Agent and the Lenders Party to the 

	    	Loan Agreement Defined Herein 

  
 Dear Ladies and Gentlemen: 
  
 – Kelly Services Five Year credit Agreement 
  

 86 

 EXHIBIT F 
  

COMPLIANCE CERTIFICATE 
  

	To:	The Agent and the Lenders parties to the 

	    	Credit Agreement Described Below 

  
 This Compliance Certificate is furnished pursuant to that certain Loan Agreement dated as of November 30, 2005 (as amended, modified, renewed or
extended from time to time, the “Agreement”) among Kelly Services, Inc. (the “Company “), the Foreign Subsidiary Borrowers, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Agent for the Lenders and LC Issuer. Unless
otherwise defined herein, capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the Agreement. 
  
 THE UNDERSIGNED HEREBY CERTIFIES THAT: 
  
 1. I am the duly elected                     
of the Company; 
  
 2. I have reviewed the terms of the Agreement
and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Company and its Subsidiaries during the accounting period covered by the attached financial statements; 
  
 3. The examinations described in paragraph 2 did not disclose, and I have no
knowledge of, the existence of any condition or event which constitutes a Default or Unmatured Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set
forth below; and 
  
 4. Schedule I attached hereto sets forth
financial data and computations evidencing the Company’s compliance with certain covenants of the Agreement, all of which data and computations are true, complete and correct. 
  
 5. Schedule II attached hereto sets forth the determination of the Applicable Margin, the LC Fees and Facility Fees to be
applicable commencing the fifth day following the delivery hereof. 
  
 6. Schedule III attached hereto sets forth the various reports and deliveries which are required under the Loan Agreement. 
  
 Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event: 
  

			
	  

	  

	  

  

 87 

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

			
	KELLY SERVICES, INC.
		
	By:	 	  

	Its:	 	  

  

 88 

 SCHEDULE I TO COMPLIANCE CERTIFICATE 
  
 Compliance as of                 ,
         with 
 Provisions of 6.14 and 6.15 
 of the Agreement 
  

 89 

 SCHEDULE II TO COMPLIANCE CERTIFICATE 
  
 Rate Determination 
  

 90 

 SCHEDULE III TO COMPLIANCE CERTIFICATE 
  
 Reports and Deliveries 
  

 91 

 EXHIBIT G 
  

ASSIGNMENT AGREEMENT 
  
 This Assignment Agreement (this “Assignment Agreement”) between
                 (the “Assignor”) and                  (the
“Assignee”) is dated as of                 ,         . The parties hereto agree as follows: 

 
 1. PRELIMINARY STATEMENT. The Assignor is a party to a Loan
Agreement (which, as it may be amended, modified, renewed or extended from time to time, is herein called the “Loan Agreement”) described in Item 1 of Schedule 1 attached hereto (“Schedule 1”). Capitalized terms used herein
and not otherwise defined herein shall have the meanings attributed to them in the Loan Agreement. 
  
 2. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, an interest in and to the Assignor’s rights and obligations under the Loan Agreement such that after giving effect to such assignment the Assignee shall have purchased pursuant to this Assignment Agreement the percentage interest
specified in Item 3 of Schedule 1 of all outstanding rights and obligations under the Loan Agreement relating to the facilities listed in Item 3 of Schedule 1 and the other Loan Documents. The aggregate Commitments (or Outstanding Credit
Exposure if the applicable Commitments have been terminated) purchased by the Assignee hereunder is set forth in Item 4 of Schedule 1. 
  
 3. EFFECTIVE DATE. The effective date of this Assignment Agreement (the “Effective Date”) shall be the later of the date specified in
Item 5 of Schedule 1 or two Business Days (or such shorter period agreed to by the Agent) after a Notice of Assignment substantially in the form of Exhibit “I” attached hereto has been delivered to the Agent. Such Notice of Assignment
must include any consents required to be delivered to the Agent by Section 13.3.1 of the Loan Agreement. In no event will the Effective Date occur if the payments required to be made by the Assignee to the Assignor on the Effective Date under
Section 4 hereof are not made on the proposed Effective Date. The Assignor will notify the Assignee of the proposed Effective Date no later than the Business Day prior to the proposed Effective Date. As of the Effective Date, (i) the
Assignee shall have the rights and obligations of a Lender under the Loan Documents with respect to the rights and obligations assigned to the Assignee hereunder and (ii) the Assignor shall relinquish its rights and be released from its
corresponding obligations under the Loan Documents with respect to the rights and obligations assigned to the Assignee hereunder. 
  
 4. PAYMENTS OBLIGATIONS. In consideration for the sale and assignment of Outstanding Credit Exposure hereunder, the Assignee shall pay the
Assignor, on the Effective Date, the amount agreed to by the Assignor and the Assignee. On and after the Effective Date, the Assignee shall be entitled to receive all payments of principal, interest, Reimbursement Obligations and fees with respect
to the interest assigned hereby. The Assignee will promptly remit to the Assignor any interest on Loans and fees received from the Agent which relate to the portion of the Commitment or Outstanding Credit Exposure assigned to the Assignee hereunder
and not previously paid by the Assignee to the Assignor. In the event that either party hereto receives any payment to which the other party hereto is entitled under this Assignment Agreement, then the party receiving such amount shall promptly
remit it to the other party hereto. 
  

 92 

 5. [INTENTIONALLY RESERVED]. 
  
 6. REPRESENTATIONS OF THE ASSIGNOR, LIMITATIONS ON THE ASSIGNOR’S LIABILITY. The Assignor represents and
warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim created by the Assignor. It is understood and agreed that the assignment and assumption
hereunder are made without recourse to the Assignor and that the Assignor makes no other representation or warranty of any kind to the Assignee. Neither the Assignor nor any of its officers, directors, employees, agents or attorneys shall be
responsible for (i) the due execution, legality, validity, enforceability, genuineness, sufficiency or collectability of any Loan Document including without limitation, documents granting the Assignor and the other Lenders a security interest
in assets of the Company, any Foreign Subsidiary Borrower or any Guarantor, (ii) any representation, warranty or statement made in or in connection with any of the Loan Documents, (iii) the financial condition or creditworthiness of the
Company, any Foreign Subsidiary Borrower or any Guarantor, (iv) the performance of or compliance with any of the terms or provisions of any of the Loan Documents, (v) inspecting any of the Property, books or records of the Company, any
Foreign Subsidiary Borrower or any Guarantor, or (vi) any mistake, error of judgment or action taken or omitted to be taken in connection with the Loans or the Loan Documents. 
  
 7. REPRESENTATIONS OF THE ASSIGNEE. The Assignee (i) confirms that it has received a copy of the Loan Agreement
together with copies of the financial statements requested by the Assignee and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment Agreement, (ii) agrees
that it will, independently and without reliance upon the Agent, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, (iii) appoints and authorizes the Agent to take such action as its contractual representative on its behalf and to exercise such powers under the Loan Documents as are delegated to the Agent by the terms
thereof, together with such powers as are reasonably incidental thereto, (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender, (v) agrees that its payment instructions and notice instructions are as set forth in the attachment to Schedule 1, (vi) confirms that none of the funds, monies, assets or other consideration being used to make the purchase and
assumption hereunder are “plan assets” as defined under ERISA and that its rights, benefits and interests in and under the Loan Documents will not be “plan assets” under ERISA, and (vii) attaches the forms or other
documentation required of the Assignee as a “Lender” pursuant to Section 3.6 of the Loan Agreement with respect to all Commitments assigned hereunder. 
  
 8. INDEMNITY. The Assignee agrees to indemnify and hold the Assignor harmless against any and all losses, costs and
expenses (including, without limitation, reasonable attorneys’ fees) and liabilities incurred by the Assignor in connection with or arising in any manner from the Assignee’s nonperformance of the obligations assumed under this Assignment
Agreement. 
  
 9. SUBSEQUENT ASSIGNMENTS. After the
Effective Date, the Assignee shall have the right pursuant to Section 13.3.1 of the Loan Agreement to assign the rights which are assigned to the Assignee hereunder to any entity or person, provided that (i) any such subsequent assignment
does not violate any of the terms and conditions of the Loan Documents or any law, rule, regulation, order, writ, judgment, injunction or decree and that any consent required under the terms of the Loan Documents has been obtained and
(ii) unless the prior written consent of the Assignor is obtained, the Assignee is not thereby released from its obligations to the Assignor hereunder, if any remain unsatisfied, including, without limitation, its obligations under Sections 4
and 8 hereof. 
  

 93 

 10. REDUCTIONS OF AGGREGATE COMMITMENTS. If any reduction in the Commitments occurs between the
date of this Assignment Agreement and the Effective Date, the percentage interest specified in Item 3 of Schedule 1 shall remain the same, but the dollar amount purchased shall be recalculated based on the reduced Commitments. 
  
 11. ENTIRE AGREEMENT. This Assignment Agreement and the attached
Notice of Assignment embody the entire agreement and understanding between the parties hereto and supersede all prior agreements and understandings between the parties hereto relating to the subject matter hereof. 
  
 12. GOVERNING LAW. This Assignment Agreement shall be governed by the
internal law, and not the law of conflicts, of the State of Michigan. 
  
 13. NOTICES. Notices shall be given under this Assignment Agreement in the manner set forth in the Loan Agreement. For the purpose hereof, the addresses of the parties hereto (until notice of a change is delivered) shall be the
address set forth in the attachment to Schedule 1. 
  
 IN WITNESS
WHEREOF, the parties hereto have executed this Assignment Agreement by their duly authorized officers as of the date first above written. 
  

			
	 [NAME OF ASSIGNOR]

		
	By:	 	  

	Title:	 	  

	 	 	  

	 	 	  

	
	[NAME OF ASSIGNEE]
		
	By:	 	  

	Title:	 	  

	 	 	  

	 	 	  

  

 94 

 SCHEDULE 1 
  

to Assignment Agreement 
  

	1.	Description and Date of Loan Agreement: Loan Agreement dated as of November 30, 2005 among Kelly Services, Inc., the Foreign Subsidiary Borrowers, the Lenders party thereto,
and JPMorgan Chase Bank, N.A., as Agent: 

  

	2.	Date of Assignment Agreement:
                        ,             

  

	3.	Amounts (As of Date of Item 2 above): 

  

							
	 	  	 	 	Revolving Credit Facility

	 	Alternate Currency Facility

				
	a.	  	 Total of Commitments (Credit Exposure)* under Loan Agreement
	 	    $                              	 	    $                              
				
	b.	  	 Assignee’s Percentage purchased under the Assignment Agreement
	 	                                    %	 	                                   
 %
				
	c.	  	 Amount of Assigned Share purchased under the Assignment Agreement
	 	    $                              	 	    $                              

  

	4.	Assignee’s Aggregate (Credit Exposure)* 

	 	  Commitment	Amount Purchased Hereunder:     $                

  

	5.	Proposed Effective
Date:                                    
                                     

 

 95 

							
	 Accepted and Agreed:
	 	 	 	 
		
	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]
				
	By:	 	  

	 	By:	 	  

				
	Title:	 	  

	 	Title:	 	  

	*	If a Commitment has been terminated, insert Outstanding Credit Exposure in place of Commitment. 

  

 96 

 Attachment to SCHEDULE 1 to ASSIGNMENT AGREEMENT 
  
 Attach Assignor’s Administrative Information Sheet, which must

 include notice address for the Assignor and the Assignee 
  

 97 

 EXHIBIT “I” 
 to Assignment Agreement 
  
 NOTICE

 OF ASSIGNMENT 
  
                     ,
         
  

			
	To:	  	 KELLY SERVICES, INC. AND THE FOREIGN SUBSIDIARY BORROWERS
 JPMORGAN CHASE BANK, N.A., as Agent and LC Issuer

		
	From:	  	[NAME OF ASSIGNOR] (the “Assignor”)
		
	 	  	[NAME OF ASSIGNEE] (the “Assignee”)

  
 1. We refer to that
Loan Agreement (the “Loan Agreement”) described in Item 1 of Schedule 1 attached hereto (“Schedule 1”). Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed to them in the Loan
Agreement. 
  
 2. This Notice of Assignment (this
“Notice”) is given and delivered to the Agent pursuant to Section 13.3.2 of the Loan Agreement. 
  
 3. The Assignor and the Assignee have entered into an Assignment Agreement, dated as of
                        ,              (the
“Assignment”), pursuant to which, among other things, the Assignor has sold, assigned, delegated and transferred to the Assignee, and the Assignee has purchased, accepted and assumed from the Assignor the percentage interest specified in
Item 3 of Schedule 1 of all outstandings, rights and obligations under the Loan Agreement relating to the facilities listed in Item 3 of Schedule 1. The Effective Date of the Assignment shall be the later of the date specified in
Item 5 of Schedule 1 or two Business Days (or such shorter period as agreed to by the Agent) after this Notice of Assignment and any consents and fees required by Sections 13.3.1 and 13.3.2 of the Loan Agreement have been delivered to the
Agent, provided that the Effective Date shall not occur if any condition precedent agreed to by the Assignor and the Assignee has not been satisfied. 
  
 4. The Assignor and the Assignee hereby give to the Borrowers and the Agent notice of the assignment and delegation referred to herein. The Assignor will
confer with the Agent before the date specified in Item 5 of Schedule 1 to determine if the Assignment Agreement will become effective on such date pursuant to Section 3 hereof, and will confer with the Agent to determine the Effective
Date pursuant to Section 3 hereof if it occurs thereafter. The Assignor shall notify the Agent if the Assignment Agreement does not become effective on any proposed Effective Date as a result of the failure to satisfy the conditions precedent
agreed to by the Assignor and the Assignee. At the request of the Agent, the Assignor will give the Agent written confirmation of the satisfaction of the conditions precedent. 
  
 5. The Assignor or the Assignee shall pay to the Agent on or before the Effective Date the processing fee of $3,500
required by Section 13.3.2 of the Loan Agreement. 
  
 6. If
Notes are outstanding on the Effective Date, the Assignor and the Assignee request and direct that the Agent prepare and cause the Borrower to execute and deliver new Notes or, as appropriate, replacements notes, to the Assignor and the Assignee.
The Assignor and, if applicable, the Assignee each agree to deliver to the Agent the original Note received by it from the Borrower upon its receipt of a new Note in the appropriate amount. 
  
 7. The Assignee advises the Agent that notice and payment instructions are
set forth in the attachment to Schedule 1. 
  

 98 

 8. The Assignee hereby represents and warrants that none of the funds, monies, assets or other
consideration being used to make the purchase pursuant to the Assignment are “plan assets” as defined under ERISA and that its rights, benefits, and interests in and under the Loan Documents will not be “plan assets” under ERISA.

  
 9. The Assignee authorizes the Agent to act as its agent
under the Loan Documents in accordance with the terms thereof. The Assignee acknowledges that the Agent has no duty to supply information with respect to any of the Borrowers or the Loan Documents to the Assignee until the Assignee becomes a party
to the Loan Agreement.* 

	*	May be eliminated if Assignee is a party to the Loan Agreement prior to the Effective Date. 

  

							
	 NAME OF ASSIGNOR
	 	 NAME OF ASSIGNEE

				
	By:	 	  

	 	By:	 	  

	Title:	 	  

	 	Title:	 	  

			
	ACKNOWLEDGED AND CONSENTED TO BY:	 	 	 	 
			
	JPMORGAN CHASE BANK, N.A., as Agent	 	 	 	 
				
	By:	 	  

	 	 	 	 
	Title:	 	  

	 	 	 	 
			
	KELLY SERVICES, INC.	 	 	 	 
				
	By:	 	  

	 	 	 	 
	Title:	 	  

	 	 	 	 

  
 [Attach photocopy of
Schedule 1 to Assignment] 
  

 99 

 EXHIBIT H 
  

ALTERNATE CURRENCY ADDENDUM 
  

	To:	JPMorgan Chase Bank, N.A., as agent under the Loan Agreement described below (in such capacity, the “Agent”) and the Alternate Currency Lenders listed below

  

	From:	Kelly Services, Inc. (the “Company”)
and                                       
                                        
                                        
                  

	    	(the “Subsidiary”) 

  
 1. This Alternate Currency Addendum (this “Addendum”) is being delivered to you pursuant to the Loan Agreement, dated as of November 30,
2005 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”) among the Company, the Foreign Subsidiary Borrowers parties thereto, the Lenders from time to time parties thereto and the Agent. Terms used but
not defined herein shall have the meanings ascribed thereto in the Loan Agreement. 
  
 2. The effective date (the “Effective Date”) of this Addendum will be
                                        
            ,                         . 
  
 3. The Company and the Subsidiary hereby request the Alternate Currency
facility (the “Facility”) described below, and acknowledge and agree that, as of the Effective Date and upon acceptance by the Agent and each Alternate Currency Lender party hereto, this Addendum and the Facility described below are hereby
designated as an Alternate Currency Addendum for the purposes of the Loan Agreement, and this Addendum and the borrowings made hereunder are subject in all respects to the terms and provisions of the Loan Agreement except to the extent that the
terms and provisions of the Loan Agreement are modified by this Addendum. 
  

			
	Type of Facility (the “Facility”):	  	Revolving credit facility
		
	Additional Alternate Currency:	  	                                     (or
“                ”)
		
	Facility maximum borrowing amount: (the “Maximum Aggregate Alternate Currency Amount”)	  	________________
		
	Alternate Currency Lenders and Commitments:	  	See Schedule 1
		
	Termination Date of Facility:	  	                 (not later than the Facility Termination Date)

  
 4. As used in this
Addendum, the following terms shall have the meanings specified below: 
  
 “Alternate Currency Loan” shall mean any extension of credit, denominated in
                            (or
“                ”), made to the Subsidiary pursuant to Section 2.1(b) of the Loan Agreement and this Addendum. An Alternate Currency Loan
shall bear interest at the rate per annum 

  

 100 

 
which is the sum of the (i) the quotient of (a) Eurocurrency Reference Rate on the Quotation Date thereof, or at such other rate as may be
specified in Schedule 2 and (b) one minus the Reserve Requirement (expressed as a decimal) applicable to the relevant Interest Period, plus (ii) the Applicable Margin, plus (iii) for Loans booked in Pounds Sterling, the
Associated Costs Rate. 
  
 5. Any modifications to the Interest
Payment Dates, Interest Periods, interest rates and any other special provisions applicable to Alternate Currency Loans under this Addendum are set forth on Schedule 2. If Schedule 2 states “None” with respect to any item
listed thereon, then the corresponding provisions of the Loan Agreement, without modification, shall govern this Addendum and the Alternate Currency Loans made pursuant to this Addendum. 
  
 6. Any special borrowing procedures or funding arrangements for Alternate Currency Loans under this Addendum, any provisions
for the issuance of promissory notes to evidence the Alternate Currency Loans made hereunder and any additional information requirements applicable to Alternate Currency Loans under this Addendum are set forth on Schedule 3. If no such
special procedures, funding arrangements, provisions or additional requirements are set forth on Schedule 3, then the corresponding procedures, funding arrangements, provisions and information requirements set forth in the Loan Agreement
shall govern this Addendum. 
  
 7. The Subsidiary may permanently
reduce the Alternate Currency Commitments under this Addendum in whole, or in part ratably among the Alternate Currency Lenders, in an aggregate minimum amounts of              and
integral multiples of              in excess thereof upon at least three (3) Business Days’ written notice to the Agent, which notice shall be given not later than 10:00
a.m. (Chicago time) and shall specify the amount of such reduction; provided, however, that the amount of the Alternate Currency Commitments may not be reduced below the aggregate principal amount of the outstanding Alternate Currency
Loans with respect thereto. Any reduction in the Alternate Currency Commitments shall be an automatic reduction of the Maximum Aggregate Alternate Currency Amount. Any such reduction shall be allocated pro rata among all the Alternate Currency
Lenders party to this Addendum by reference to their Alternate Currency Shares. 
  
 8. (a) This Addendum (including the Schedules hereto) may not be amended without the prior written consent of the Agent and Alternate Currency Lenders representing not less than 51% of the Alternate Currency
Shares hereunder, but subject to the provisions of Section 8.2 of the Loan Agreement as applied to the Alternate Currency Lenders as to matters related to this Addendum; provided, however, that this Section 8
shall not restrict assignments pursuant to Section 9. 
  
 (b) This Addendum may not be terminated without the prior written consent of each Alternate Currency Lender party hereto unless there are no Alternate Currency Loans outstanding hereunder, in which case no such consent shall be required;
provided, however that this Addendum shall terminate on the date that the Loan Agreement terminates in accordance with its terms. 
  
 9. Section 13.3 of the Loan Agreement shall apply to assignments by Alternate Currency Lenders of obligations, Commitments and Loans
hereunder; provided, however, that an Alternate Currency Lender may not assign any obligations, Commitments or rights hereunder to any Person who is not (or does not simultaneously become) a Lender under the Loan Agreement. 

 
 10. Notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
  

 101 

	 	(a)	if to the Subsidiary under this Addendum, to it at: 

  

			
	  

	  

	 Attention:

	 Title:

	 Telephone:

	 Facsimile:

  

	 	(b)	if to the Agent, to it at: 

  

			
	 JPMorgan Chase Bank, N.A.

	
	  

	  

	 Attention:

	 Title:

	 Telephone:

	 Facsimile:

  
 in any case with a copy to the Agent
at its address or telecopy number referenced in Section 14.1 of the Loan Agreement, and 
  
 (c) if to an Alternate Currency Lender, to it at its address (or telecopy number) set forth in Schedule 1 or in the Assignment and Acceptance
pursuant to which such Alternate Currency Lender became a party hereto. 
  
 All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or overnight courier service or sent by
telecopy to such party as provided in this Section or in accordance with the latest unrevoked direction from such party given in accordance with this Section. 
  

11. Each Alternate Currency Lender agrees that if it shall, through the exercise of a right of banker’s lien, setoff or counterclaim, or pursuant
to a secured claim under Section 506 of Title II of the United States Code or any other security or interest arising from, or in lieu of, such secured claim, received by such Alternate Currency Lender under any applicable bankruptcy, insolvency
or other similar law or otherwise, or by similar means, obtain payment (voluntary or involuntary) of any Alternate Currency Loan or Loans as a result of which the unpaid principal portion of the Alternate Currency Loans of such Alternate Currency
Lender shall be proportionately less than the unpaid principal portion of the Alternate Currency Loans of any other Alternate Currency Lender it shall be deemed simultaneously to have purchased from such other Alternate Currency Lender at face
value, and shall promptly pay to such other Alternate Currency Lender the purchase price for, a participation in the Alternate Currency Loans of such other Alternate Currency Lender, so that the aggregate unpaid principal amount of the Alternate
Currency Loans and participations in the Alternate Currency Loans held by each Alternate Currency Lender shall be in the same proportion to the aggregate unpaid principal amount of all Alternate Currency Loans then outstanding as the principal
amount of its Alternate Currency Loans prior to such exercise of banker’s lien, setoff or counterclaim or other event was to the principal amount of all Alternate Currency Loans outstanding prior to such exercise of banker’s lien, setoff
or counterclaim or other event; provided, however, that if any such purchase or purchases or adjustments shall be made pursuant to this Section 11 and the payment giving rise thereto shall thereafter be recovered, such
purchase or purchases or adjustments shall be rescinded to the extent of such recovery 

  

 102 

 
and the purchase price or prices or adjustment restored without interest. Each Borrower party to this Addendum expressly consents to the foregoing
arrangements and agrees that any Alternate Currency Lender holding a participation in an Alternate Currency Loan deemed to have been so purchased may exercise any and all rights of banker’s lien, setoff or counterclaim. With respect to any and
all moneys owing by such Subsidiary to such Alternate Currency Lender by reason thereof as fully as if such Alternate Currency Lender had made an Alternate Currency Loan directly to such Borrower in the amount of such participation. 
  
 12. THE AGENT ACCEPTS THIS ADDENDUM, ON BEHALF OF ITSELF AND THE LENDERS, AT
DETROIT, MICHIGAN BY ACKNOWLEDGING AND AGREEING TO IT THERE. THIS ADDENDUM SHALL BE GOVERNED BY AND INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF MICHIGAN. WITHOUT
LIMITING THE FOREGOING, ANY DISPUTE BETWEEN THE COMPANY OR THE SUBSIDIARY OR ANY GUARANTOR AND THE AGENT OR ANY ALTERNATE CURRENCY LENDER ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH THIS ADDENDUM OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE
OF MICHIGAN. 
  
 13. JPMorgan Chase Bank, N.A. designates
                         as its agent and as its Applicable Lending Installation to perform its functions under this
Addendum as Agent, and it is acknowledged and agreed that                          and such Lending Installation have all
of the rights, indemnifications, exculpations and other applicable terms and provisions as provided to the Agent under the Loan Agreement. 
  
 14. The Company and the Subsidiary each hereby represent and warrant that the Facility complies in all respects with the requirements of the Loan
Agreement and, except to extent expressly provided herein to the contrary, the Facility shall be subject to the applicable provisions of the Loan Agreement. 
  
 15. The Company and the Subsidiary have executed the Joinder Agreement in the form attached hereto as Schedule 4. 
  
 16. The Company and the Subsidiary hereby agree to be bound by all of the
applicable terms and provisions of this Addendum, and ratify and confirm the Loan Agreement and all other Loan Documents. 
  

 103 

			
	KELLY SERVICES, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	[SUBSIDIARY]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Accepted and agreed to by:

  

			
	 JPMORGAN CHASE BANK, N.A.,
 as Agent

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	[Alternate Currency Lenders]

  

 104 

 SCHEDULE 1 
 TO 
 ALTERNATE CURRENCY ADDENDUM 
 FOR
                                        
                                        
         
  

			
	 Name of Alternate Currency Lender

	  	 Alternate Currency Commitment of Such Lender

	 	  	 
	 	  	 
	 	  	 
	 	  	 

  

 105 

 SCHEDULE 2 
 TO 
 ALTERNATE CURRENCY ADDENDUM 
 FOR
                                        
                                        
         
  
 MODIFICATIONS 
  

	1.	Business Day Definition: 

  
 “Business Day” shall mean a day (other than a Saturday or Sunday) on which banks are open for the full range of banking business in
[insert local jurisdiction]. 
  

	2.	Interest Payment Dates: None 

  

	3.	Interest Periods: None 

  

	4.	Interest Rates: None 

  

	5.	Modifications to Interest Period Selection/Conversion: None 

  

	6.	Other: 

  
 Termination Date for Addendum:              (not later than the Facility Termination
Date) 
  
 Maximum Number of Interest Periods:
                     (            ) 
  

	7.	Condition Precedent to Initial Alternate Currency Loan: Prior to the initial Alternate Currency Loan under this Addendum, the Subsidiary shall provide the Agent with a copy
of the Subsidiary’s authorized signatory list, a certified copy of the board minutes authorizing the Subsidiary and the signatory to enter into this Addendum and all transactions related hereto and such other information as reasonably requested
by the Agent related to such matters. 

  

 106 

 SCHEDULE 3 
 TO 
 ALTERNATE CURRENCY ADDENDUM 
 FOR
                                        
                                        
         
  
 OTHER
PROVISIONS 
  

	1.	Borrowing Procedures: Notice of Borrowing shall be given by the Subsidiary not later than 10:00 a.m.
(             time) three Business Days prior to the date of the proposed borrowing of any Alternate Currency Loan. 

  

	2.	Funding Arrangement: 

  
 Minimum amounts/increments for Alternate Currency Loans, repayments and prepayments: Minimum amount of
             with increments of              (such minimum amounts to be negotiated between the Subsidiary and the
Alternate Currency Lenders provided that such amounts shall not be greater than the minimum amounts set forth in Section 2.3(b) of the Loan Agreement). 
  

	3.	Promissory Notes: None required. 

  

	4.	Information Requirements: None. 

  

 107 

 SCHEDULE 4 
 TO 
 ALTERNATE CURRENCY ADDENDUM 
 FOR THE
                                 BORROWING SUBSIDIARY 
  
 JOINDER AGREEMENT 
  
 [See Exhibit B to Loan Agreement] 
  

 108 

 SCHEDULE 1.1(a) 
  
 COMMITMENTS 
  

							
	COMMITMENTS	 
	 Lender

	  	Commitment

	  	Pro Rata Share

	 
	 JPMorgan Chase Bank, N.A.
	  	$	20,000,000	  	13.33	%
	 KeyBank, National Association
	  	$	15,000,000	  	10.00	%
	 PNC Bank, National Association
	  	$	15,000,000	  	10.00	%
	 Comerica Bank
	  	$	15,000,000	  	10.00	%
	 U.S. Bank National Association
	  	$	15,000,000	  	10.00	%
	 The Bank of Tokyo – Mitsubishi, Ltd., Chicago Branch
	  	$	10,000,000	  	6.67	%
	 Charter One Bank, N.A.
	  	$	10,000,000	  	6.67	%
	 Royal Bank of Canada
	  	$	10,000,000	  	6.67	%
	 BNP Paribas
	  	$	10,000,000	  	6.67	%
	 UniCredito Italiano
	  	$	10,000,000	  	6.67	%
	 Wells Fargo Bank, N.A.
	  	$	10,000,000	  	6.67	%
	 Bank of America, N.A.
	  	$	10,000,000	  	6.67	%
	 	  	
	
	  	
	

	 Aggregate Commitments
	  	$	150,000,000	  	100	%
	 	  	
	
	  	
	

  

 109 

 SCHEDULE 1.1(a) (CONT’D.) 
  
 COMMITMENTS 
  

							
	REVOLVING CREDIT COMMITMENTS	 
			
	 Lender

	  	Revolving Credit Commitment

	  	Pro Rata Share

	 
	 JPMorgan Chase Bank, N.A.
	  	$	14,000,000	  	9.72	%
	 KeyBank, National Association
	  	$	15,000,000	  	10.42	%
	 PNC Bank, National Association
	  	$	15,000,000	  	10.42	%
	 Comerica Bank
	  	$	15,000,000	  	10.42	%
	 U.S. Bank National Association
	  	$	15,000,000	  	10.42	%
	 The Bank of Tokyo – Mitsubishi, Ltd., Chicago Branch
	  	$	10,000,000	  	6.94	%
	 Charter One Bank, N.A.
	  	$	10,000,000	  	6.94	%
	 Royal Bank of Canada
	  	$	10,000,000	  	6.94	%
	 BNP Paribas
	  	$	10,000,000	  	6.94	%
	 UniCredito Italiano
	  	$	10,000,000	  	6.94	%
	 Wells Fargo Bank, N.A.
	  	$	10,000,000	  	6.94	%
	 Bank of America, N.A.
	  	$	10,000,000	  	6.94	%
	 	  	
	
	  	
	

	Aggregate Revolving Credit Commitments	  	$	144,000,000	  	100	%
	 	  	
	
	  	
	

  

 110 

 SCHEDULE 1.1(a) (CONT’D.) 
  
 COMMITMENTS 
  

									
	ALTERNATE CURRENCY COMMITMENTS	 
				
	 Lender

	  	Currency

	  	Alternate Currency Commitment

	  	Pro Rata Share

	 
	 JPMorgan Chase Bank, N.A.
	  	Singapore
Dollars	  	$	6,000,000	  	100	%

  
 December 1, 2005 
  

 111 

	
	 SCHEDULE 1.1(b)
 FOREIGN SUBSIDIARY BORROWERS

	
	Kelly Services Singapore PTE Ltd.

  
 December 1, 2005 
  

 112 

 SCHEDULE 2.16 
  
 SWING LINE LOAN NOTICE 
  

Same Day Notice 
  
 United States Dollars 
 Pounds Sterling 
 Euro 
 Canadian Dollars 
  
 One Day Notice 
  
 Australian Dollars 
 Japanese Yen 
 Swiss Francs 
 Danish Krona 
 Norwegian Krona 
 Swedish Krona 
 New Zealand Dollars 
  

 113 

 SCHEDULE 5.7 
  
 LITIGATION AND CONTINGENT OBLIGATIONS 
  
 In November, 2003, an action was commenced in the United States Bankruptcy Court for the Southern District of New York, Enron Corp. v.
J.P. Morgan Securities, Inc., et al., against approximately 100 defendants, including Kelly Properties, Inc., a wholly owned subsidiary of Kelly Services, Inc., who invested in Enron’s commercial paper. The complaint alleges that
Enron’s October 2001 prepayment of its commercial paper is a voidable preference under the bankruptcy laws, constitutes a fraudulent conveyance and that the Company received prepayment of approximately $10 million. In June 2005,
defendants’ motion to dismiss was denied. The Company intends to vigorously defend against these claims. The Company believes it has meritorious defenses to the asserted claims but it is unable to predict the outcome of the proceedings.

  

 114 

 SCHEDULE 5.8 
  
 SIGNIFICANT SUBSIDIARIES 
  
 Kelly Properties, Inc. 
  
 Kelly Receivables Services, LLC 
  

 115Credit and Security Agreement

 Exhibit 10.69 

  
 CREDIT AND SECURITY AGREEMENT 
  
 BY AND BETWEEN 
  
 PROVENA FOODS INC. 
  
 AND 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
  
 ACTING THROUGH ITS WELLS FARGO BUSINESS CREDIT OPERATING 
 DIVISION 
  
 NOVEMBER 29, 2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I
	  	DEFINITIONS	  	1
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Other Definitional Terms; Rules of Interpretation	  	13
			
	 ARTICLE II
	  	AMOUNT AND TERMS OF THE CREDIT FACILITY	  	14
			
	 Section 2.1
	  	Revolving Advances	  	14
	 Section 2.2
	  	Procedures for Requesting Advances	  	14
	 Section 2.3
	  	[Intentionally Omitted]	  	14
	 Section 2.4
	  	Letters of Credit	  	14
	 Section 2.5
	  	Special Account	  	15
	 Section 2.6
	  	[Intentionally Omitted]	  	15
	 Section 2.7
	  	[Intentionally Omitted]	  	15
	 Section 2.8
	  	Interest; Minimum Interest Charge; Default Interest Rate; Application of Payments; Participations; Usury	  	15
	 Section 2.9
	  	Fees	  	17
	 Section 2.10
	  	Time for Interest Payments; Payment on Non-Business Days; Computation of Interest and Fees	  	18
	 Section 2.11
	  	Lockbox and Collateral Account; Sweep of Funds	  	19
	 Section 2.12
	  	Voluntary Prepayment; Termination of the Credit Facility by the Borrower	  	19
	 Section 2.13
	  	Mandatory Prepayment	  	20
	 Section 2.14
	  	Revolving Advances to Pay Obligations	  	20
	 Section 2.15
	  	Use of Proceeds	  	20
	 Section 2.16
	  	Liability Records	  	20
			
	 ARTICLE III
	  	SECURITY INTEREST; OCCUPANCY; SETOFF	  	20
			
	 Section 3.1
	  	Grant of Security Interest	  	20
	 Section 3.2
	  	Notification of Account Debtors and Other Obligors	  	21
	 Section 3.3
	  	Assignment of Insurance	  	21
	 Section 3.4
	  	Occupancy	  	21
	 Section 3.5
	  	License	  	22
	 Section 3.6
	  	Financing Statement	  	22
	 Section 3.7
	  	Setoff	  	23
	 Section 3.8
	  	Collateral	  	23
			
	 ARTICLE IV
	  	CONDITIONS OF LENDING	  	23
			
	 Section 4.1
	  	Conditions Precedent to the Initial Advances and Letter of Credit	  	23
	 Section 4.2
	  	Conditions Precedent to All Advances and Letters of Credit	  	26

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 ARTICLE V
	  	REPRESENTATIONS AND WARRANTIES	  	26
			
	 Section 5.1
	  	Existence and Power; Name; Chief Executive Office; Inventory and Equipment Locations; Federal Employer Identification Number and Organizational Identification Number	  	26
	 Section 5.2
	  	Capitalization	  	27
	 Section 5.3
	  	Authorization of Borrowing; No Conflict as to Law or Agreements	  	27
	 Section 5.4
	  	Legal Agreements	  	27
	 Section 5.5
	  	Subsidiaries	  	27
	 Section 5.6
	  	Financial Condition; No Adverse Change	  	27
	 Section 5.7
	  	Litigation	  	28
	 Section 5.8
	  	Regulation U	  	28
	 Section 5.9
	  	Taxes	  	28
	 Section 5.10
	  	Titles and Liens	  	28
	 Section 5.11
	  	Intellectual Property Rights	  	28
	 Section 5.12
	  	Plans	  	29
	 Section 5.13
	  	Default	  	30
	 Section 5.14
	  	Environmental Matters	  	30
	 Section 5.15
	  	Submissions to Lender	  	30
	 Section 5.16
	  	Financing Statements	  	31
	 Section 5.17
	  	Rights to Payment	  	31
	 Section 5.18
	  	Financial Solvency	  	31
			
	 ARTICLE VI
	  	COVENANTS	  	32
			
	 Section 6.1
	  	Reporting Requirements	  	32
	 Section 6.2
	  	Financial Covenants	  	35
	 Section 6.3
	  	Permitted Liens; Financing Statements	  	36
	 Section 6.4
	  	Indebtedness	  	36
	 Section 6.5
	  	Guaranties	  	37
	 Section 6.6
	  	Investments and Subsidiaries	  	37
	 Section 6.7
	  	Dividends and Distributions	  	37
	 Section 6.8
	  	Salaries	  	37
	 Section 6.9
	  	[Intentionally Omitted]	  	37
	 Section 6.10
	  	Books and Records; Collateral Examination, Inspection and Appraisals	  	38
	 Section 6.11
	  	Account Verification	  	38
	 Section 6.12
	  	Compliance with Laws	  	38
	 Section 6.13
	  	Payment of Taxes and Other Claims	  	39
	 Section 6.14
	  	Maintenance of Properties	  	39
	 Section 6.15
	  	Insurance	  	39
	 Section 6.16
	  	Preservation of Existence	  	40
	 Section 6.17
	  	Delivery of Instruments, etc.	  	40
	 Section 6.18
	  	Sale or Transfer of Assets; Suspension of Business Operations	  	40

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 6.19
	  	Consolidation and Merger; Asset Acquisitions	  	40
	 Section 6.20
	  	Sale and Leaseback	  	40
	 Section 6.21
	  	Restrictions on Nature of Business	  	40
	 Section 6.22
	  	Accounting	  	40
	 Section 6.23
	  	Discounts, etc	  	41
	 Section 6.24
	  	Plans	  	41
	 Section 6.25
	  	Place of Business; Name	  	41
	 Section 6.26
	  	Constituent Documents; S Corporation Status	  	41
	 Section 6.27
	  	Performance by the Lender	  	41
			
	 ARTICLE VII
	  	EVENTS OF DEFAULT, RIGHTS AND REMEDIES	  	42
			
	 Section 7.1
	  	Events of Default	  	42
	 Section 7.2
	  	Rights and Remedies	  	44
	 Section 7.3
	  	Certain Notices	  	45
			
	 ARTICLE VIII
	  	MISCELLANEOUS	  	45
			
	 Section 8.1
	  	No Waiver; Cumulative Remedies; Compliance with Laws	  	45
	 Section 8.2
	  	Amendments, Etc	  	45
	 Section 8.3
	  	Notices; Communication of Confidential Information; Requests for Accounting	  	45
	 Section 8.4
	  	Further Documents	  	46
	 Section 8.5
	  	Costs and Expenses	  	46
	 Section 8.6
	  	Indemnity	  	46
	 Section 8.7
	  	Participants	  	47
	 Section 8.8
	  	Execution in Counterparts; Telefacsimile Execution	  	47
	 Section 8.9
	  	Retention of Borrower’s Records	  	47
	 Section 8.10
	  	Binding Effect; Assignment; Complete Agreement; Sharing Information	  	48
	 Section 8.11
	  	Severability of Provisions	  	48
	 Section 8.12
	  	Headings	  	48
	 Section 8.13
	  	Governing Law; Jurisdiction, Venue	  	48
	 Section 8.14
	  	Arbitration	  	48

  

 -iii- 

 CREDIT AND SECURITY AGREEMENT 
  
 Dated as of November     , 2005 
  
 PROVENA FOODS INC., a California corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (
“Lender”) through its WELLS FARGO BUSINESS CREDIT operating division, hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1
Definitions. Except as otherwise expressly provided in this Agreement, the following terms shall have the meanings given them in this Section: 
  
 “Accounts” shall have the meaning given it under the UCC. 
  
 “Accounts Advance Rate” means up to eighty-five. percent (85%), or such lesser rate as the Lender in its sole
discretion may deem appropriate from time to time. 
  
 “Advance” means a Revolving Advance. 
  
 “Affiliate” or “Affiliates” means any Person controlled by, controlling or under common control with the Borrower, including any Subsidiary of the Borrower. For purposes of this definition, “control,” when used
with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Agreement” means this Credit and Security Agreement. 

 
 “Aggregate Credit Limit” means the aggregate of the Maximum Line
Amount and the L/C Amount. 
  
 “Availability” means the
amount, if any, by which the Borrowing Base exceeds the outstanding principal balance of the Revolving Note. 
  
 “Bond” means the Variable/Fixed Rate Demand Bonds, Series 2003A issued for the benefit of the Borrower pursuant to the Indenture. 
  
 “Bond L/C” means the Letter of Credit issued by Lender in
connection with and as security for the payment of the Bond in the face amount of $6,233,000 which said Letter of Credit shall be secured by the Collateral, including, but not limited to the Deed of Trust and the Equipment. 
  
 “Book Net Worth” means the aggregate of the common and preferred
shareholders’ equity in the Borrower, determined in accordance with GAAP. 
  

 1 

 “Borrowing Base” means at any time the lesser of: 
  
 (a) The Maximum Line Amount; or 
  
 (b) Subject to change from time to time in the Lender’s sole discretion,
the sum of: 
  
 (i) The product of the Accounts
Advance Rate times Eligible Accounts, plus 
  
 (ii) The lesser of (A) $ 2,700,000, or (B) the product of the Inventory Advance Rate times Eligible Inventory, or (C) 85% of the Net Orderly Liquidation Value of Eligible Inventory; provided, that the aggregate amount
of outstanding Advances supported by (x) Eligible Inventory of the Royal Angelus Macaroni Company pasta division of the Borrower shall at no time exceed $150,000, and (y) Eligible Inventory consisting of Inventory that is work-in-process
shall at no time exceed $1,300,000, less 
  
 (iii) The Borrowing Base Reserve, less 
  
 (iv) The Permanent Reserve, less 
  
 (v)
The Real Estate Reserve, less 
  
 (vi) The Letter
of Credit Reserve, Less 
  
 (vii) Obligations
that the Borrower owes to the Lender that have not yet been advanced on the Revolving Note, and the dollar amount that the Lender in its reasonable discretion then determines to be a reasonable determination of the Borrower’s credit exposure
with respect to Wells Fargo Bank Affiliate Obligations. 
  
 “Borrowing Base Reserve” means, as of any date of determination, such amounts (expressed as either a specified amount or as a percentage of a specified category or item) as the Lender may from time to time establish and adjust in
reducing Availability (a) to reflect events, conditions, contingencies or risks which, as determined by the Lender, do or may affect (i) the Collateral or its value, (ii) the assets, business or prospects of the Borrower, or
(iii) the security interests and other rights of the Lender in the Collateral (including the enforceability, perfection and priority thereof), or (b) to reflect the Lender’s judgment that any collateral report or financial information
furnished by or on behalf of the Borrower to the Lender is or may have been incomplete, inaccurate or misleading in any material respect, or (c) in respect of any state of facts that the Lender determines constitutes a Default or an Event of
Default. 
  
 “Business Day” means a day on which the
Federal Reserve Bank of New York is open for business. 
  
 “Capital Expenditures” means for a period, any expenditure of money during such period (i) for the purchase or construction of assets, or for improvements or additions thereto, which are capitalized on the Borrower’s balance
sheet, or (ii) for the lease, purchase or other acquisition of any capital asset, or for the lease of any other asset whether payable currently or in the future. 
  

 2 

 “Change of Control” means the occurrence of any of the following events: 
  
 (a) Any Person or “group” (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a Person will be deemed to have “beneficial
ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than fifty percent (50%) of the voting power of all
classes of Owners of the Borrower; 
  
 (b) During any consecutive
two-year period, individuals who at the beginning of such period constituted the board of Directors of the Borrower (together with any new Directors whose election to such board of Directors, or whose nomination for election by the Owners of the
Borrower, was approved by a vote of two thirds of the Directors then still in office who were either Directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to
constitute a majority of the board of Directors of the Borrower then in office; or 
  
 (c) Theodore Arena and Santo Zito shall cease to actively manage the Borrower’s day-to-day business activities and no replacement acceptable to Lender is obtained within 60 days. 
  
 “Collateral” means all of the Borrower’s Accounts, chattel
paper and electronic chattel paper, deposit accounts, documents, Equipment, General Intangibles, goods, instruments, Inventory, Investment Property, letter-of-credit rights, letters of credit, all sums on deposit in any Collateral Account, and any
items in any Lockbox; together with (i) all substitutions and replacements for and products of any of the foregoing; (ii) in the case of all goods, all accessions; (iii) all accessories, attachments, parts, equipment and repairs now
or hereafter attached or affixed to or used in connection with any goods; (iv) all warehouse receipts, bills of lading and other documents of title now or hereafter covering such goods; (v) all collateral subject to the Lien of any
Security Document; (vi) any money, or other assets of the Borrower that now or hereafter come into the possession, custody, or control of the Lender; (vii) all sums on deposit in the Special Account; (viii) proceeds of any and all of
the foregoing; (ix) books and records of the Borrower, including all mail or electronic mail addressed to the Borrower; and (x) all of the foregoing, whether now owned or existing or hereafter acquired or arising or in which the Borrower
now has or hereafter acquires any rights. 
  
 “Collateral
Account” means the “Lender Account” as defined in the Wholesale Lockbox and Collection Account Agreement. 
  
 “Commitment” means the Lender’s commitment to make Advances to, and to issue Letters of Credit for the account of, the Borrower.

  
 “Constituent Documents” means with respect to any
Person, as applicable, such Person’s certificate of incorporation, articles of incorporation, by-laws, certificate of formation, articles of organization, limited liability company agreement, management agreement, operating agreement,
shareholder agreement, partnership agreement or similar document or agreement governing such Person’s existence, organization or management or concerning disposition of ownership interests of such Person or voting rights among such
Person’s owners. 
  

 3 

 “Credit Facility” means the credit facility under which Revolving Advances and Letters of
Credit may be made available to the Borrower by the Lender under Article II. 
  
 “Current Maturities of Long Term Debt” means as of each month end, the amount of the Borrower’s long-term debt and capitalized leases which will become due during that monthly period. 
  
 “Cut-off Time” means 10:00 a.m. Los Angeles, California time.

  
 “Debt” means of a Person as of a given date, all
items of indebtedness or liability which in accordance with GAAP would be included in determining total liabilities as shown on the liabilities side of a balance sheet for such Person and shall also include the aggregate payments required to be made
by such Person at any time under any lease that is considered a capitalized lease under GAAP. 
  
 “Debt Service Coverage Ratio” means (i) the sum of (A) Funds from Operations and (B) Interest Expense minus (C) unfinanced Capital Expenditures and (D) non-cash
deferred income, divided by (ii) the sum of (A) Current Maturities of Long Term Debt, (B) the amount of the Letter of Credit Reserve for such year determined quarterly on a pro rata basis and (B) Interest Expense.

  
 “Deed of Trust” means that certain deed of
trust, assignment of rents, security agreement and fixture filing executed by Borrower in favor of Lender with respect to the Borrower’s real property located in Lathrop, California. 
  
 “Default” means an event that, with giving of notice or passage of time or both, would constitute an Event of
Default. 
  
 “Default Period” means any period of time
beginning on the day a Default or Event of Default occurs and ending on the date identified by the Lender in writing as the date that such Default or Event of Default has been cured or waived. 
  
 “Default Rate” means an annual interest rate in effect during a
Default Period or following the Termination Date, which interest rate shall be equal to three percent (3%) over the applicable Floating Rate, as such rate may change from time to time. 
  
 “Director” means a director if the Borrower is a corporation, a
governor or manager if the Borrower is a limited liability company, or a general partner if the Borrower is a partnership. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 “ERISA Affiliate” means any trade or business (whether or not
incorporated) that is a member of a group which includes the Borrower and which is treated as a single employer under Section 414 of the IRC. 
  

 4 

 “Eligible Accounts” means all unpaid Accounts arising from the sale or lease of goods or the
performance of services, net of any credits, but excluding any such Accounts having any of the following characteristics: 
  
 (i) That portion of Accounts unpaid 90 days or more after the invoice date; 
  
 (ii) That portion of Accounts related to goods or services with respect to which the Borrower has received
notice of a claim or dispute, which are subject to a claim of offset or a contra account, or which reflect a reasonable reserve for warranty claims or returns; 
  

(iii) That portion of Accounts not yet earned by the final delivery of goods or rendition of services, as applicable, by the Borrower
to the customer, including progress billings, and that portion of Accounts for which an invoice has not been sent to the applicable account debtor; 
  
 (iv) Accounts constituting (i) proceeds of copyrightable material unless such copyrightable material shall have been registered with
the United States Copyright Office, or (ii) proceeds of patentable inventions unless such patentable inventions have been registered with the United States Patent and Trademark Office; 
  
 (v) Accounts owed by any unit of government, whether foreign
or domestic (provided, however, that there shall be included in Eligible Accounts that portion of Accounts owed by such units of government for which the Borrower has provided evidence satisfactory to the Lender that (A) the
Lender has a first priority perfected security interest and (B) such Accounts may be enforced by the Lender directly against such unit of government under all applicable laws); 
  
 (vi) Accounts denominated in any currency other than United States dollars; 
  
 (vii) Accounts owed by an account debtor located outside the
United States or Canada which are not (A) backed by a bank letter of credit naming the Lender as beneficiary or assigned to the Lender, in the Lender’s possession or control, and with respect to which a control agreement concerning the
letter-of-credit rights is in effect, and acceptable to the Lender in all respects, in its sole discretion, or (B) covered by a foreign receivables insurance policy acceptable to the Lender in its sole discretion; 
  
 (viii) Accounts owed by an account debtor that is insolvent,
the subject of bankruptcy proceedings or has gone out of business; 
  
 (ix) Accounts owed by an Owner, Subsidiary, Affiliate, Officer or employee of the Borrower; 
  
 (x) Accounts not subject to a duly perfected security interest in the Lender’s favor or which are subject to any Lien in favor of any
Person other than the Lender; 
  
 (xi) That
portion of Accounts that has been restructured, extended, amended or modified; 
  

 5 

 (xii) That portion of Accounts that constitutes advertising, finance charges, service
charges or sales or excise taxes; 
  
 (xiii)
Accounts owed by an account debtor, regardless of whether otherwise eligible, to the extent that the aggregate balance of such Accounts exceeds 15% of the aggregate amount of all Accounts, provided, that such percentage with respect to
Accounts owed by Blue Line Dist, Saladinos, and Roma Foods shall be 25%. 
  
 (xiv) Accounts owed by an account debtor, regardless of whether otherwise eligible, if 25% or more of the total amount of Accounts due from such debtor is ineligible under clauses (i), (ii), or (x) above; and

  
 (xv) Accounts, or portions thereof, otherwise
deemed ineligible by the Lender in its sole discretion. 
  
 “Eligible Inventory” means all Inventory of the Borrower, valued at the lower of cost or market in accordance with GAAP; but excluding any Inventory having any of the following characteristics: 
  
 (i) Inventory that is: in-transit; located at any warehouse,
job site or other premises not approved by the Lender in writing; not subject to a duly perfected first priority security interest in the Lender’s favor; subject to any lien or encumbrance that is subordinate to the Lender’s first priority
security interest; covered by any negotiable or non-negotiable warehouse receipt, bill of lading or other document of title; on consignment from any Person; on consignment to any Person or subject to any bailment unless such consignee or bailee has
executed an agreement with the Lender; 
  
 (ii)
Supplies, packaging, maintenance parts or sample Inventory, or customer supplied parts or Inventory; 
  
 (iii) Inventory that is damaged, defective, obsolete, slow moving or not currently saleable in the normal course of the Borrower’s
operations, or the amount of such Inventory that has been reduced by shrinkage; 
  
 (iv) Inventory that the Borrower has returned, has attempted to return, is in the process of returning or intends to return to the vendor
thereof; 
  
 (v) Inventory that is one year or
more from the date of its manufacture; 
  
 (vi)
Inventory manufactured by the Borrower pursuant to a license unless the applicable licensor has agreed in writing to permit the Lender to exercise its rights and remedies against such Inventory; 
  
 (vii) Inventory that is subject to a Lien in favor of any
Person other than the Lender; 
  

 6 

 (viii) Except in the case of Inventory located at 5010 Eucalyptus Avenue, Chino,
California 91710 and 5060 Eucalyptus Avenue, Chino, California 91710, Inventory stored at locations holding less than 10% of the aggregate value of Borrower’s Inventory; and 
  
 (ix) Inventory otherwise deemed ineligible by the Lender in its sole discretion. 
  
 “Environmental Law” means any federal, state, local or other
governmental statute, regulation, law or ordinance dealing with the protection of human health and the environment. 
  
 “Equipment” means all of the Borrower’s equipment, as such term is defined in the UCC, whether now owned or hereafter acquired, including
all present and future machinery, vehicles, furniture, fixtures, manufacturing equipment, shop equipment, office and recordkeeping equipment, parts, tools, supplies, and including specifically the goods described in any equipment schedule or list
herewith or hereafter furnished to the Lender by the Borrower. 
  
 “Event of Default” is defined in Section 7.1. 
  
 “Financial Covenants” means the covenants set forth in Section 6.2. 
  
 “Floating Rate” means with respect to Revolving Advances evidenced by the Revolving Note, an annual interest rate equal to the sum of the Prime Rate plus one-half of one percent (0.5%), which interest rate
shall, in each case, change when and as the Prime Rate changes; provided, however, if Borrower fails to meet its projections as set forth in the Initial Projections, the Floating Rate shall increase by one-half of one percent (0.5%).
If necessary, such increase will become effective as of the first day of the quarter on which the Borrower’s financial performance, measured quarterly on a year to date basis, deviates from such projections as set forth on the monthly financial
statements delivered to Lender pursuant to Section 6.1(b). 
  
 “Floating Rate Advance” means an Advance bearing interest at the Floating Rate. 
  
 “Funding Date” is defined in Section 2.1. 
  
 “Funds from Operations” means for a given period, the sum of (i) Net Income, (ii) depreciation and amortization, (iii) any
increase (or decrease) in deferred income taxes, (iv) any increase (or decrease) in lifo reserves, and (v) other non-cash items, each as determined for such period in accordance with GAAP. 
  
 “GAAP” means generally accepted accounting principles, applied on a
basis consistent with the accounting practices applied in the financial statements described in Section 5.6. 
  
 “General Intangibles” shall have the meaning given it under the UCC. 
  
 “Guarantor(s)” means any Person now or in the future guaranteeing the Obligations. 
  
 “Guaranty” means each unconditional continuing guaranty or
unconditional continuing guaranty by corporation executed by a Guarantor in favor of the Lender (collectively, the “Guaranties”). 
  

 7 

 “Hazardous Substances” means pollutants, contaminants, hazardous substances, hazardous wastes,
petroleum and fractions thereof, and all other chemicals, wastes, substances and materials listed in, regulated by or identified in any Environmental Law. 
  
 “Indemnified Liabilities” is defined in Section 8.6 
  
 “Indemnitees” is defined in Section 8.6. 
  
 “Indenture” means that certain Indenture of Trust dated as of December 1, 2003 by and between the Borrower
and US Bank National Association. 
  
 “Initial
Projections” means the Borrower’s projections for the remainder of fiscal year ending in 2005 reflecting a loss before taxes no greater than $1,575,000 (excluding the impact of deferred income or gains on the sale of real property) for
such year, and fiscal year ending in 2006 a net profit before taxes of $220,000 (excluding the impact of deferred income or gains on the sale of real property) for such year. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Infringement” or “Infringing” when used with respect to
Intellectual Property Rights means any infringement or other violation of Intellectual Property Rights. 
  
 “Intellectual Property Rights” means all actual or prospective rights arising in connection with any intellectual property or other proprietary
rights, including all rights arising in connection with copyrights, patents, service marks, trade dress, trade secrets, trademarks, trade names or mask works. 
  

“Interest Expense” means for a fiscal year-to-date period, the Borrower’s total gross interest expense during such period (excluding
interest income), and shall in any event include (i) interest expensed (whether or not paid) on all Debt, (ii) the amortization of debt discounts, (iii) the amortization of all fees payable in connection with the incurrence of Debt to
the extent included in interest expense, and (iv) the portion of any capitalized lease obligation allocable to interest expense. 
  
 “Interest Payment Date” is defined in Section 2.10(a). 
  
 “Inventory” shall have the meaning given it under the UCC. 
  
 “Inventory Advance Rate” means up to forty-nine percent (49%), or
such lesser rate as the Lender in its sole discretion may deem appropriate from time to time. 
  
 “Investment Property” shall have the meaning given it under the UCC. 
  
 “L/C Amount” means the sum of (i) the face amount of the Bond L/C (ii) the face amount of the Workers’ Comp L/C and (ii) the
unpaid amount of the Obligation of Reimbursement. 
  

 8 

 “L/C Application” means an application for the issuance of standby or documentary letters of
credit pursuant to the terms of a Standby Letter of Credit Agreement, in form acceptable to the Lender. 
  
 “Letter of Credit” is defined in Section 2.4. 
  
 “Letter of Credit Reimbursement Agreement” means that certain Letter of Credit Reimbursement Agreement executed by Lender and Borrower with
respect to the standby letter of credit issued by Lender for the benefit of Borrower with respect to the Variable/Fixed Rate Demand Bonds, Series 2003A issued in favor of Borrower pursuant to the Indenture. 
  
 “Letter of Credit Reserve” means a reserve against Availability
between $544,000 and the principal reduction payments made by Borrower for each year with respect to the Bonds as set forth in the Indenture. Such reserve amount shall be cumulative from year to year. 
  
 “Licensed Intellectual Property” is defined in
Section 5.11(c). 
  
 “Lien” means any security
interest, mortgage, deed of trust, pledge, lien, charge, encumbrance, title retention agreement or analogous instrument or device, including the interest of each lessor under any capitalized lease and the interest of any bondsman under any payment
or performance bond, in, of or on any assets or properties of a Person, whether now owned or subsequently acquired and whether arising by agreement or operation of law. 
  
 “Loan Documents” means this Agreement, the Notes, the Letter of Credit Reimbursement Agreement any L/C
Applications and the Security Documents, together with every other agreement, note, document, contract or instrument to which the Borrower now or in the future may be a party and which is required by the Lender. 
  
 “Lockbox” means “Lockbox” as defined in the Wholesale
Lockbox and Collection Account Agreement. 
  
 “Material
Adverse Effect” means any of the following: 
  
 (i) A material adverse effect on the business, operations, results of operations, prospects, assets, liabilities or financial condition of the Borrower; 
  
 (ii) A material adverse effect on the ability of the Borrower to perform its obligations under the Loan
Documents; 
  
 (iii) A material adverse effect on
the ability of the Lender to enforce the Obligations or to realize the intended benefits of the Security Documents, including a material adverse effect on the validity or enforceability of any Loan Document or of any rights against any Guarantor, or
on the status, existence, perfection, priority (subject to Permitted Liens) or enforceability of any Lien securing payment or performance of the Obligations; or 
  
 (iv) Any claim against the Borrower or threat of litigation which if determined adversely to the Borrower
would cause the Borrower to be liable to pay an amount exceeding 

  

 9 

 
$100,000 or would result in the occurrence of an event described in clauses (i), (ii) and (iii) above. 
  
 “Maturity Date” means, with respect to the Credit Facility,
December 30, 2008. 
  
 “Maximum Line Amount” means
$6,000,000. 
  
 “Minimum Interest Charge” is defined in
Section 2.8(c). 
  
 “Multiemployer Plan” means a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA) to which the Borrower or any ERISA Affiliate contributes or is obligated to contribute. 
  
 “Net Cash Proceeds” means in connection with any asset sale, the cash proceeds (including any cash payments received by way of deferred payment
whether pursuant to a note, installment receivable or otherwise, but only as and when actually received) from such asset sale, net of (i) attorneys’ fees, accountants’ fees, investment banking fees, brokerage commissions and amounts
required to be applied to the repayment of any portion of the Debt secured by a Lien not prohibited hereunder on the asset which is the subject of such sale, and (ii) taxes paid or reasonably estimated to be payable as a result of such asset
sale. 
  
 “Net Income” means fiscal year-to-date
after-tax net income from continuing operations, including extraordinary losses but excluding extraordinary gains, all as determined in accordance with GAAP. 
  
 “Net Loss” means fiscal year-to-date after-tax net loss from continuing operations as determined in accordance with GAAP. 
  
 “Net Orderly Liquidation Value” means a professional opinion of the
estimated most probable Net Cash Proceeds which could typically be realized at a properly advertised and professionally managed liquidation sale, conducted under orderly sale conditions for an extended period of time (usually six to nine months),
under the economic trends existing at the time of the appraisal. 
  
 “Note” means the Revolving Note. 
  
 “Obligation of Reimbursement” means the obligation of the Borrower to reimburse the Lender pursuant to the terms of the Standby Letter of Credit Agreement and any applicable L/C Application. 
  
 “Obligations” means each Note, the Obligation of Reimbursement,
Borrower’s obligations to Lender under the Letter of Credit Reimbursement Agreement, and each and every other debt, liability and obligation of every type and description which the Borrower may now or at any time hereafter owe to the Lender,
whether such debt, liability or obligation now exists or is hereafter created or incurred, whether it arises in a transaction involving the Lender alone or in a transaction involving other creditors of the Borrower, and whether it is direct or
indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or sole, joint, several or joint and several, and including all indebtedness of the Borrower arising under 

  

 10 

 
any Loan Document or guaranty between the Borrower and the Lender, whether now in effect or subsequently entered into, and all Wells Fargo Bank Affiliate
Obligations. 
  
 “Officer” means with respect to the
Borrower, an officer if the Borrower is a corporation, a manager if the Borrower is a limited liability company, or a partner if the Borrower is a partnership. 
  

“OFAC” is defined in Section 6.12(c). 
  
 “Overadvance” means the amount, if any, by which the outstanding principal balance of the Revolving Note is in excess of the then-existing
Borrowing Base. 
  
 “Owned Intellectual Property” is
defined in Section 5.11(a). 
  
 “Owner” means with
respect to the Borrower, each Person having legal or beneficial title to an ownership interest in the Borrower or a right to acquire such an interest. 
  
 “Patent and Trademark Security Agreement” means each and every Patent and Trademark Security Agreement now or hereafter executed by the Borrower
in favor of the Lender dated the same date as this Agreement. 
  
 “Pension Plan” means a pension plan (as defined in Section 3(2) of ERISA) maintained for employees of the Borrower or any ERISA Affiliate and covered by Title IV of ERISA. 
  
 “Permanent Reserve” means a reserve against Availability in the
amount of $500,000; provided, that such amount shall be reduced to $375,000 upon receipt by Lender of the Borrower’s financial statements as set forth in Section 6.1, evidencing a Debt Service Coverage Ratio equal to or greater than
1.10:1.00 for four (4) consecutive quarters, and shall continue to be reduced in increments of $125,000 every two (2) quarters thereafter so long as Borrower continues to achieve a Debt Service Coverage Ratio equal to or greater than
1.10:1.00 for each following two (2) consecutive quarters on a quarter by quarter basis. 
  
 “Permitted Lien” and “Permitted Liens” are defined in Section 6.3(a). 
  
 “Person” means any individual, corporation, partnership, joint venture, limited liability company, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) maintained for employees of the Borrower or any ERISA Affiliate. 
  
 “Premises” means all locations where the Borrower conducts its business or has any rights of possession, including
the locations legally described in Exhibit C attached hereto. 
  
 “Prime Rate” means at any time the rate of interest most recently announced by the Lender at its principal office as its Prime Rate, with the understanding that the Prime Rate is one of the Lender’s base rates, and serves as
the basis upon which effective rates of interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof in 

  

 11 

 
such internal publication or publications as the Lender may designate. Each change in the rate of interest shall become effective on the date each Prime Rate
change is announced by the Lender. 
  
 “Real Estate
Reserve” means a monthly reserve against Availability of $8,000 per month for real estate property taxes and improvements with respect to the real property located at 251 D’Arcy Parkway, Lathrop, California 95330. The amount held in the
Real Estate Reserve may be reduced from time to time by the amount of any real estate property taxes paid by Borrower and improvement made by Borrower to the real property referred to in the previous sentence upon evidence, satisfactory to Lender,
that such taxes have been paid and such improvements have been made. To the extent that the Real Estate Reserve is reduced pursuant to the previous sentence it shall thereafter be replenished on a monthly basis at the rate of $8,000 per month.

  
 “Reportable Event” means a reportable event (as
defined in Section 4043 of ERISA), other than an event for which the 30-day notice requirement under ERISA has been waived in regulations issued by the Pension Benefit Guaranty Corporation. 
  
 “Revolving Advance” is defined in Section 2.1. 
  
 “Revolving Note” means the Borrower’s revolving promissory
note, payable to the order of the Lender in substantially the form of Exhibit A hereto, as same may be renewed and amended from time to time, and all replacements thereto. 
  
 “Security Documents” means this Agreement, the Wholesale Lockbox and Collection Account Agreement, the Patent and
Trademark Security Agreement, the Deed of Trust, and any other document delivered to the Lender from time to time to secure the Obligations. 
  
 “Security Interest” is defined in Section 3.1. 
  
 “Special Account” means a specified cash collateral account maintained with Lender or another financial institution acceptable to the Lender in
connection with Letters of Credit, as contemplated by Section 2.5. 
  
 “Standby Letter of Credit Agreement” means an agreement governing the issuance of standby letters of credit by Lender entered into between the Borrower as applicant and Lender as issuer. 
  
 “Subsidiary” means any Person of which more than 50% of the
outstanding ownership interests having general voting power under ordinary circumstances to elect a majority of the board of directors or the equivalent of such Person, regardless of whether or not at the time ownership interests of any other class
or classes shall have or might have voting power by reason of the happening of any contingency, is at the time directly or indirectly owned by the Borrower, by the Borrower and one or more other Subsidiaries, or by one or more other Subsidiaries.

  
 “Termination Date” means the earliest of
(i) the Maturity Date, (ii) the date the Borrower terminates the Credit Facility, or (iii) the date the Lender demands payment of the Obligations, following an Event of Default, pursuant to Section 7.2. 
  

 12 

 “UCC” means the Uniform Commercial Code as in effect in the state designated in this Agreement
as the state whose laws shall govern this Agreement, or in any other state whose laws are held to govern this Agreement or any portion of this Agreement. 
  
 “Unused Amount” is defined in Section 2.9(b). 
  
 “Wells Fargo Bank Affiliate Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by
the Borrower or its Subsidiaries to any Person that is owned in material part by the Lender, and that relates to any service or facility extended to the Borrower or its Subsidiaries, including: (a) credit cards, (b) credit card processing
services, (c) debit cards, and (d) purchase cards, as well as any other services or facilities from time to time specified by the Lender, whether direct or indirect, absolute or contingent, due or to become due, and whether existing now or
in the future. 
  
 “Wholesale Lockbox and Collection Account
Agreement” means the Wholesale Lockbox and Collection Account Agreement by and between the Borrower and the Lender, dated the same date as this Agreement. 
  

“Workers’ Comp L/C” means those certain Letters of Credit in the aggregate face amount of $1,217,614, issued by Lender in connection
with Borrower’s workers compensation insurance, which said Letters of Credit shall be secured by the Collateral, including, but not limited to, cash equal to the aggregate face amount of such Letters of Credit, which said cash shall at all time
be subject to a control agreement in favor of the Lender. 
  
 Section 1.2 Other Definitional Terms; Rules of Interpretation. The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. All accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP. All terms defined in the UCC and not otherwise defined herein have the
meanings assigned to them in the UCC. References to Articles, Sections, subsections, Exhibits, Schedules and the like, are to Articles, Sections and subsections of, or Exhibits or Schedules attached to, this Agreement unless otherwise expressly
provided. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. Unless the context in which used herein otherwise clearly requires, “or”
has the inclusive meaning represented by the phrase “and/or”. Defined terms include in the singular number the plural and in the plural number the singular. Reference to any agreement (including the Loan Documents), document or instrument
means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof (and, if applicable, in accordance with the terms hereof and the other Loan Documents), except where otherwise
explicitly provided, and reference to any promissory note includes any promissory note which is an extension or renewal thereof or a substitute or replacement therefor. 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. 
  

 13 

 ARTICLE II 
  

AMOUNT AND TERMS OF THE CREDIT FACILITY 
  
 Section 2.1 Revolving Advances. The Lender agrees, subject to the terms and conditions of this Agreement, to make advances (“Revolving
Advances”) to the Borrower from time to time from the date that all of the conditions set forth in 4.1 are satisfied (the “Funding Date”) to and until (but not including) the Termination Date in an amount not in excess of the Maximum
Line Amount. The Lender shall have no obligation to make a Revolving Advance to the extent that the amount of the requested Revolving Advance exceeds Availability. The Borrower’s obligation to pay the Revolving Advances shall be evidenced by
the Revolving Note and shall be secured by the Collateral. Within the limits set forth in this Section 2.1, the Borrower may borrow, prepay pursuant to Section 2.12, and reborrow. 
  
 Section 2.2 Procedures for Requesting Advances. The Borrower shall
comply with the following procedures in requesting Revolving Advances: 
  
 (a) [Intentionally Omitted]. 
  
 (b) Time for Requests. The Borrower shall request each Advance not later than the Cut-off Time on the Business Day on which the Advance is to be made. Each request that conforms to the terms of this Agreement
shall be effective upon receipt by the Lender, shall be in writing or by telephone or telecopy transmission, and shall be confirmed in writing by the Borrower if so requested by the Lender, by (i) an Officer of the Borrower; or
(ii) a Person designated as the Borrower’s agent by an Officer of the Borrower in a writing delivered to the Lender; or (iii) a Person whom the Lender reasonably believes to be an Officer of the Borrower or such a designated agent.
The Borrower shall repay all Advances even if the Lender does not receive such confirmation and even if the Person requesting an Advance was not in fact authorized to do so. Any request for an Advance, whether written or telephonic, shall be deemed
to be a representation by the Borrower that the conditions set forth in Section 4.2 have been satisfied as of the time of the request. 
  
 (c) Disbursement. Upon fulfillment of the applicable conditions set forth in Article IV, the Lender shall disburse the proceeds of
the requested Advance by crediting the same to the Borrower’s demand deposit account maintained with the Lender unless the Lender and the Borrower shall agree in writing to another manner of disbursement. 
  
 Section 2.3 [Intentionally Omitted]. 
  
 Section 2.4 Letters of Credit. 
  
 (a) The Lender agrees, subject to the terms and conditions
of this Agreement, to issue, the Bond L/C and the Workers’ Comp L/C and any replacement or substitutions therefore (each, a “Letter of Credit”) for the Borrower’s account. Each Letter of Credit shall be issued pursuant to a
separate L/C Application made by the Borrower to the Lender, which must be completed in a manner satisfactory to the Lender. The terms and conditions set forth in each such L/C Application shall supplement the terms and conditions of the Standby
Letter of Credit Agreement. 
  

 14 

 (b) The Workers Comp L/C and any replacement or substitution therefore, shall be issued
with an expiry date no later than eighteen (18) months from the date of issuance or the Maturity Date in effect as of the date of issuance, whichever is earlier. The Bond L/C shall be issued with the Maturity Date as its expiry date.

  
 (c) Any request for issuance of a Letter of
Credit shall be deemed to be a representation by the Borrower that the conditions set forth in Section 4.2 have been satisfied as of the date of the request. 
  
 (d) If a draft is submitted under a Letter of Credit when the Borrower is unable, because a Default Period
exists or for any other reason, to obtain a Revolving Advance to pay the Obligation of Reimbursement, the Borrower shall pay to the Lender on demand and in immediately available funds, the amount of the Obligation of Reimbursement together with
interest, accrued from the date of the draft until payment in full at the Default Rate. Notwithstanding the Borrower’s inability to obtain a Revolving Advance for any reason, the Lender is irrevocably authorized, in its sole discretion, to make
a Revolving Advance in an amount sufficient to discharge the Obligation of Reimbursement and all accrued but unpaid interest thereon. 
  
 Section 2.5 Special Account. If the Credit Facility is terminated for any reason while any Letter of Credit is outstanding, the Borrower shall
thereupon pay the Lender in immediately available funds for deposit in the Special Account an amount equal to the L/C Amount plus any anticipated fees and costs. If the Borrower fails to promptly make any such payment in the amount required
hereunder, then the Lender may make a Revolving Advance against the Credit Facility in an amount sufficient to fulfill this obligation and deposit the proceeds to the Special Account. The Special Account shall be an interest bearing account either
maintained with the Lender or with a financial institution acceptable to the Lender. Any interest earned on amounts deposited in the Special Account shall be credited to the Special Account. The Lender may apply amounts on deposit in the Special
Account at any time or from time to time to the Obligations in the Lender’s sole discretion. The Borrower may not withdraw any amounts on deposit in the Special Account as long as the Lender maintains a security interest therein. The Lender
agrees to transfer any balance in the Special Account to the Borrower when the Lender is required to release its security interest in the Special Account under applicable law. 
  
 Section 2.6 [Intentionally Omitted]. 
  
 Section 2.7 [Intentionally Omitted]. 
  
 Section 2.8 Interest; Minimum Interest Charge; Default Interest Rate; Application of Payments; Participations; Usury.

  
 (a) Interest. Except as provided in
Section 2.8(d) and Section 2.8(g), the principal amount of each Advance shall bear interest as a Floating Rate Advance. 
  
 (b) [Intentionally Omitted]. 
  
 (c) Minimum Interest Charge. Notwithstanding any other terms of this Agreement to the contrary, the Borrower shall pay to the
Lender interest of not less than $16,000 

  

 15 

 
per calendar month (the “Minimum Interest Charge”) during the term of this Agreement, and the Borrower shall pay any deficiency between the Minimum
Interest Charge and the amount of interest otherwise calculated under Section 2.8(a) on the first day of each month and on the Termination Date. When calculating this deficiency, the Default Rate, if applicable, shall be disregarded.

  
 (d) Default Interest Rate. At any time
during any Default Period or following the Termination Date, in the Lender’s sole discretion and without waiving any of its other rights or remedies, the principal of the Revolving Note shall bear interest at the Default Rate or such lesser
rate as the Lender may determine, effective as of the first day of the month in which any Default Period begins through the last day of such Default Period, or any shorter time period that the Lender may determine. The decision of the Lender to
impose a rate that is less than the Default Rate or to not impose the Default Rate for the entire duration of the Default Period shall be made by the Lender in its sole discretion and shall not be a waiver of any of its other rights and remedies,
including its right to retroactively impose the full Default Rate for the entirety of any such Default Period or following the Termination Date. 
  
 (e) Application of Payments. Payments shall be applied to the Obligations on the Business Day of receipt by the Lender in the
Lender’s general account, but the amount of principal paid shall continue to accrue interest at the interest rate applicable under the terms of this Agreement from the calendar day the Lender receives the payment, and continuing through the end
of the first Business Day following receipt of the payment. 
  
 (f) Participations. If any Person shall acquire a participation in the Advances or the Obligation of Reimbursement, the Borrower shall be obligated to the Lender to pay the full amount of all interest
calculated under this Section 2.8, along with all other fees, charges and other amounts due under this Agreement, regardless if such Person elects to accept interest with respect to its participation at a lower rate than that calculated under
this Section 2.8, or otherwise elects to accept less than its prorata share of such fees, charges and other amounts due under this Agreement. 
  
 (g) Usury. In any event no rate change shall be put into effect which would result in a rate greater than the highest rate
permitted by law. Notwithstanding anything to the contrary contained in any Loan Document, all agreements which either now are or which shall become agreements between the Borrower and the Lender are hereby limited so that in no contingency or event
whatsoever shall the total liability for payments in the nature of interest, additional interest and other charges exceed the applicable limits imposed by any applicable usury laws. If any payments in the nature of interest, additional interest and
other charges made under any Loan Document are held to be in excess of the limits imposed by any applicable usury laws, it is agreed that any such amount held to be in excess shall be considered payment of principal hereunder, and the indebtedness
evidenced hereby shall be reduced by such amount so that the total liability for payments in the nature of interest, additional interest and other charges shall not exceed the applicable limits imposed by any applicable usury laws, in compliance
with the desires of the Borrower and the Lender. This provision shall never be superseded or waived and shall control every other provision of the Loan Documents and all agreements between the Borrower and the Lender, or their successors and
assigns. 
  

 16 

 Section 2.9 Fees. 
  
 (a) Origination Fee. The Borrower shall pay the Lender a fully earned and non-refundable origination
fee of $135,000, payable in three (3) equal installments of $45,000 due upon the execution of this Agreement and on the first two anniversaries thereof. 
  

(b) Unused Line Fee. For the purposes of this Section 2.9(b), “Unused Amount” means the Maximum Line Amount
reduced by (i) the outstanding Revolving Advances, (ii) the Real Estate Reserve, (iii) the Permanent Reserve, and (iv) the Letter of Credit Reserve. The Borrower agrees to pay to the Lender an unused line fee at the rate of
one-quarter of one percent (0.25%) per annum on the average daily Unused Amount from the date of this Agreement to and including the Termination Date, due and payable monthly in arrears on the first day of the month and on the Termination Date.

  
 (c) Facility Fee. The Borrower agrees
to pay to the Lender an annual facility fee in the amount of $25,000, which facility fee shall be due and payable on the first and second anniversary of the Closing Date. 
  
 (d) Collateral Exam Fees. The Borrower shall pay the Lender fees in connection with any collateral
exams, audits or inspections conducted by or on behalf of the Lender of any Collateral or the Borrower’s operations or business at the rates established from time to time by the Lender as its collateral exam fees (which fees are currently $95
per hour per collateral examiner), together with all actual out-of-pocket costs and expenses incurred in conducting any such collateral examination or inspection. 
  
 (e) Letter of Credit Fees. The Borrower shall pay to the Lender a fee with respect to each Letter of
Credit, if any, accruing on a daily basis and computed at an annual rate of one and one-half of one percent (1.5%) of the aggregate amount that may then be drawn, assuming compliance with all conditions for drawing (the “Aggregate Face
Amount”), from and including the date of issuance of such Letter of Credit until such date as such Letter of Credit shall terminate by its terms or be returned to the Lender, due and payable monthly in arrears on the first day of each month and
on the date that the Letter of Credit shall terminate by its terms or be returned to the Lender; provided, however, effective as of the first day of the month in which any Default Period begins through the last day of such Default
Period, or any shorter time period that the Lender may determine, in the Lender’s sole discretion and without waiving any of its other rights and remedies, such fee shall increase to three and one-half of one percent (3.5%) of the
Aggregate Face Amount; provided, further, however, the fee shall not increase as to the face amount of any Letter of Credit that is secured by cash. The foregoing fee shall be in addition to any and all fees, commissions and
charges imposed by Lender with respect to or in connection with such Letter of Credit. 
  
 (f) Letter of Credit Administrative Fees. The Borrower shall pay all administrative fees charged by Lender in connection with the
honoring of drafts under any Letter of Credit, amendments thereto, transfers thereof and all other activity with respect to the Letters of Credit at the then – current rates published by Lender for such services rendered on behalf of customers
of Lender generally. 
  

 17 

 (g) Termination Fee. If (i) the Lender terminates the Credit Facility during
a Default Period, or if (ii) the Borrower terminates the Credit Facility on a date prior to the Maturity Date, then the Borrower shall pay the Lender as liquidated damages a termination fee in an amount equal to a percentage of the Maximum Line
Amount calculated as follows: (A) three percent (3%) if the termination occurs on or before the first anniversary of the Funding Date; (B) two percent (2%) if the termination occurs after the first anniversary of the Funding
Date, but on or before the second anniversary of the Funding Date; and (C) one percent (1%) if the termination occurs after the second anniversary of the Funding Date. 
  
 (h) [Intentionally Omitted]. 
  
 (i) [Intentionally Omitted]. 
  
 (j) Waiver of Termination and Prepayment Fees. The Borrower, at the Lender’s discretion, will be
excused from the payment of termination and prepayment fees otherwise due under Section 2.9(g) if such termination or prepayment is made because of refinancing through another division of Lender. 
  
 (k) Overadvance Fees. The Borrower shall pay an
Overadvance fee in the amount of $500.00 for each day or portion thereof during which an Overadvance exists, regardless of how the Overadvance arises or whether or not the Overadvance has been agreed to in advance by the Lender. The acceptance of
payment of an Overadvance fee by the Lender shall not be deemed to constitute either consent to the Overadvance or a waiver of the resulting Event of Default, unless the Lender specifically consents to the Overadvance in writing and waives the Event
of Default on whatever conditions the Lender deems appropriate. 
  
 (l) Other Fees and Charges; Payment of Fees. The Lender may from time to time impose additional fees and charges as consideration for Advances made in excess of Availability or for other events that constitute
an Event of Default or a Default hereunder, including fees and charges for the administration of Collateral by the Lender, and fees and charges for the late delivery of reports, which may be assessed in the Lender’s sole discretion on either an
hourly, periodic, or flat fee basis, and in lieu of or in addition to imposing interest at the Default Rate. 
  
 Section 2.10 Time for Interest Payments; Payment on Non-Business Days; Computation of Interest and Fees. 
  
 (a) Time For Interest Payments. Accrued and unpaid
interest shall be due and payable on the first day of each month and on the Termination Date (each an “Interest Payment Date”), or if any such day is not a Business Day, on the next succeeding Business Day. Interest will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from the date of advance to the Interest Payment Date. If an Interest Payment Date is not a Business Day, payment shall be made on the next succeeding Business Day.

  
 (b) Payment on Non-Business Days.
Whenever any payment to be made hereunder shall be stated to be due on a day which is not a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall in such case be 

  

 18 

 
included in the computation of interest on the Advances or the fees hereunder, as the case may be. 
  
 (c) Computation of Interest and Fees. Interest
accruing on the outstanding principal balance of the Advances and fees hereunder outstanding from time to time shall be computed on the basis of actual number of days elapsed in a year of 360 days. 
  
 Section 2.11 Lockbox and Collateral Account; Sweep of Funds.

  
 (a) Lockbox and Collateral Account.

  
 (i) The Borrower upon request by Lender at
any time after the occurrence of an Event of Default, shall instruct all account debtors to pay all Accounts directly to the Lockbox. If, notwithstanding such instructions, the Borrower receives any payments on Accounts, the Borrower shall deposit
such payments into the Collateral Account. The Borrower shall also deposit all cash proceeds of Collateral regardless of source or nature directly into the Collateral Account. Until so deposited, the Borrower shall hold all such payments and cash
proceeds in trust for and as the property of the Lender and shall not commingle such property with any of its other funds or property. All deposits in the Collateral Account shall constitute proceeds of Collateral and shall not constitute payment of
the Obligations. 
  
 (ii) All items deposited in
the Collateral Account shall be subject to final payment. If any such item is returned uncollected, the Borrower will immediately pay the Lender, or, for items deposited in the Collateral Account, the bank maintaining such account, the amount of
that item, or such bank at its discretion may charge any uncollected item to the Borrower’s commercial account or other account. The Borrower shall be liable as an endorser on all items deposited in the Collateral Account, whether or not in
fact endorsed by the Borrower. 
  
 (b) Sweep
of Funds. The Lender shall from time to time, in accordance with the Wholesale Lockbox and Collection Account Agreement, cause funds in the Collateral Account to be transferred to the Lender’s general account for payment of the Obligations.
Amounts deposited in the Collateral Account shall not be subject to withdrawal by the Borrower, except after payment in full and discharge of all Obligations. 
  

Section 2.12 Voluntary Prepayment; Termination of the Credit Facility by the Borrower. Except as otherwise provided herein, the Borrower may
prepay the Advances in whole at any time or from time to time in part. The Borrower may terminate the Credit Facility at any time if it (i) gives the Lender at least 30 days advance written notice prior to the proposed Termination Date, and
(ii) pays the Lender applicable termination fees in accordance with Section 2.9(g). If the Borrower terminates the Credit Facility, all Obligations shall be immediately due and payable, and if the Borrower gives the Lender less than the
required 30 days advance written notice, then the interest rate applicable to borrowings evidenced by Revolving Note shall be the Default Rate for the period of time commencing 30 days prior to the proposed Termination Date through the date that the
Lender actually receives such written notice. If the Borrower does not wish the Lender to consider renewal of the Credit Facility on the next Maturity Date, then the Borrower shall give the Lender at least 30 days written notice 

  

 19 

 
prior to the Maturity Date that it will not be requesting renewal. If the Borrower fails to give the Lender such timely notice, then the interest rate
applicable to borrowings evidenced by the Revolving Note shall be the Default Rate for the period of time commencing 30 days prior to the Maturity Date through the date that the Lender actually receives such written notice. 
  
 Section 2.13 Mandatory Prepayment. Without notice or demand, if the
sum of the outstanding principal balance of the Revolving Advances shall at any time exceed the Borrowing Base, the Borrower shall (i) first, immediately prepay the Revolving Advances to the extent necessary to eliminate such excess; and
(ii) if prepayment in full of the Revolving Advances is insufficient to eliminate such excess, pay to the Lender in immediately available funds for deposit in the Special Account an amount equal to the remaining excess. Any payment received by
the Lender hereunder or under Section 2.12 may be applied to the Obligations, in such order and in such amounts as the Lender in its sole discretion may determine from time to time. 
  
 Section 2.14 Revolving Advances to Pay Obligations. Notwithstanding the terms of Section 2.1, the Lender may, in
its discretion at any time or from time to time, without the Borrower’s request and even if the conditions set forth in Section 4.2 would not be satisfied, make a Revolving Advance in an amount equal to the portion of the Obligations from
time to time due and payable, and may deliver the proceeds of any such Revolving Advance to any affiliate of the Lender in satisfaction of any Wells Fargo Bank Affiliate Obligations. 
  
 Section 2.15 Use of Proceeds. The Borrower shall use the proceeds of
Advances and each Letter of Credit for ordinary working capital purposes. 
  
 Section 2.16 Liability Records. The Lender may maintain from time to time, at its discretion, records as to the Obligations. All entries made on any such record shall be presumed correct until the Borrower
establishes the contrary. Upon the Lender’s demand, the Borrower will admit and certify in writing the exact principal balance of the Obligations that the Borrower then asserts to be outstanding. Any billing statement or accounting rendered by
the Lender shall be conclusive and fully binding on the Borrower unless the Borrower gives the Lender specific written notice of exception within 30 days after receipt. 
  
 ARTICLE III 
  
 SECURITY INTEREST; OCCUPANCY; SETOFF 
  
 Section 3.1 Grant of Security Interest. The Borrower hereby pledges, assigns and grants to the Lender, for the benefit of itself and as agent for
any affiliate of the Lender that may provide credit or services to the Borrower that constitute Wells Fargo Bank Affiliate Obligations, a lien and security interest (collectively referred to as the “Security Interest”) in the Collateral,
as security for the payment and performance of the Obligations. Upon request by the Lender, the Borrower will grant the Lender, for the benefit of itself and as agent for any affiliate of the Lender that may provide credit or services to the
Borrower that constitute Wells Fargo Bank Affiliate Obligations, a security interest in all commercial tort claims that the Borrower may have against any Person. 
  

 20 

 Section 3.2 Notification of Account Debtors and Other Obligors. The Lender may at any time
(whether or not a Default Period then exists) notify any account debtor or other Person obligated to pay the amount due that such right to payment has been assigned or transferred to the Lender for security and shall be paid directly to the Lender.
The Borrower will join in giving such notice if the Lender so requests. At any time after the Borrower or the Lender gives such notice to an account debtor or other obligor, the Lender may, but need not, in the Lender’s name or in the
Borrower’s name, demand, sue for, collect or receive any money or property at any time payable or receivable on account of, or securing, any such right to payment, or grant any extension to, make any compromise or settlement with or otherwise
agree to waive, modify, amend or change the obligations (including collateral obligations) of any such account debtor or other obligor. The Lender may, in the Lender’s name or in the Borrower’s name, as the Borrower’s agent and
attorney-in-fact, notify the United States Postal Service to change the address for delivery of the Borrower’s mail to any address designated by the Lender, otherwise intercept the Borrower’s mail, and receive, open and dispose of the
Borrower’s mail, applying all Collateral as permitted under this Agreement and holding all other mail for the Borrower’s account or forwarding such mail to the Borrower’s last known address. 
  
 Section 3.3 Assignment of Insurance. As additional security for the
payment and performance of the Obligations, the Borrower hereby assigns to the Lender any and all monies (including proceeds of insurance and refunds of unearned premiums) due or to become due under, and all other rights of the Borrower with respect
to, any and all policies of insurance now or at any time hereafter covering the Collateral or any evidence thereof or any business records or valuable papers pertaining thereto, and the Borrower hereby directs the issuer of any such policy to pay
all such monies directly to the Lender. At any time, whether or not a Default Period then exists, the Lender may (but need not), in the Lender’s name or in the Borrower’s name, execute and deliver proof of claim, receive all such monies,
endorse checks and other instruments representing payment of such monies, and adjust, litigate, compromise or release any claim against the issuer of any such policy. Any monies received as payment for any loss under any insurance policy mentioned
above (other than liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent domain, shall be paid over to the Lender to be applied, at the option of the Lender, either to the prepayment of the
Obligations or shall be disbursed to the Borrower under staged payment terms reasonably satisfactory to the Lender for application to the cost of repairs, replacements, or restorations. Any such repairs, replacements, or restorations shall be
effected with reasonable promptness and shall be of a value at least equal to the value of the items or property destroyed prior to such damage or destruction. 
  

Section 3.4 Occupancy. 
  
 (a) The Borrower hereby irrevocably grants to the Lender the right to take exclusive possession of the Premises at any time during a
Default Period without notice or consent. 
  
 (b)
The Lender may use the Premises only to hold, process, manufacture, sell, use, store, liquidate, realize upon or otherwise dispose of goods that are Collateral and for other purposes that the Lender may in good faith deem to be related or incidental
purposes. 
  

 21 

 (c) The Lender’s right to hold the Premises shall cease and terminate upon the
earlier of (i) payment in full and discharge of all Obligations and termination of the Credit Facility, and (ii) final sale or disposition of all goods constituting Collateral and delivery of all such goods to purchasers. 
  
 (d) The Lender shall not be obligated to pay or account for
any rent or other compensation for the possession, occupancy or use of any of the Premises; provided, however, that if the Lender does pay or account for any rent or other compensation for the possession, occupancy or use of any of the
Premises, the Borrower shall reimburse the Lender promptly for the full amount thereof. In addition, the Borrower will pay, or reimburse the Lender for, all taxes, fees, duties, imposts, charges and expenses at any time incurred by or imposed upon
the Lender by reason of the execution, delivery, existence, recordation, performance or enforcement of this Agreement or the provisions of this Section 3.4. 
  
 Section 3.5 License. Without limiting the generality of any other Security Document, the Borrower hereby grants to
the Lender a non-exclusive, worldwide and royalty-free license to use or otherwise exploit all Intellectual Property Rights of the Borrower for the purpose of: (a) completing the manufacture of any in-process materials during any Default Period
so that such materials become saleable Inventory, all in accordance with the same quality standards previously adopted by the Borrower for its own manufacturing and subject to the Borrower’s reasonable exercise of quality control; and
(b) selling, leasing or otherwise disposing of any or all Collateral during any Default Period. 
  
 Section 3.6 Financing Statement. The Borrower authorizes the Lender to file from time to time, such financing statements against collateral
described as “all personal property” or “all assets” or describing specific items of collateral including commercial tort claims as the Lender deems necessary or useful to perfect the Security Interest. All financing statements
filed before the date hereof to perfect the Security Interest were authorized by the Borrower and are hereby re-authorized. A carbon, photographic or other reproduction of this Agreement or of any financing statements signed by the Borrower is
sufficient as a financing statement and may be filed as a financing statement in any state to perfect the security interests granted hereby. For this purpose, the Borrower represents and warrants that the following information is true and correct:

  
 Name and address of Debtor: 
  
 Provena Foods Inc. 
 5010 Eucalyptus Avenue 
 Chino, California
91710 
  
 Federal Employer Identification No. 95-2782215

 Organizational Identification No. C0662567 
  
 Name and address of Secured Party: 
 Wells
Fargo Business Credit 
 245 South Los Robles Avenue, Suite 700 
 Pasadena, California 91101 
  

 22 

 Section 3.7 Setoff. The Lender may at any time or from time to time, at its sole discretion and
without demand and without notice to anyone, setoff any liability owed to the Borrower by the Lender, whether or not due, against any Obligation, whether or not due. In addition, each other Person holding a participating interest in any Obligations
shall have the right to appropriate or setoff any deposit or other liability then owed by such Person to the Borrower, whether or not due, and apply the same to the payment of said participating interest, as fully as if such Person had lent directly
to the Borrower the amount of such participating interest. 
  
 Section 3.8 Collateral. This Agreement does not contemplate a sale of accounts, contract rights or chattel paper, and, as provided by law, the Borrower is entitled to any surplus and shall remain liable for any deficiency. The
Lender’s duty of care with respect to Collateral in its possession (as imposed by law) shall be deemed fulfilled if it exercises reasonable care in physically keeping such Collateral, or in the case of Collateral in the custody or possession of
a bailee or other third Person, exercises reasonable care in the selection of the bailee or other third Person, and the Lender need not otherwise preserve, protect, insure or care for any Collateral. The Lender shall not be obligated to preserve any
rights the Borrower may have against prior parties, to realize on the Collateral at all or in any particular manner or order or to apply any cash proceeds of the Collateral in any particular order of application. The Lender has no obligation to
clean-up or otherwise prepare the Collateral for sale. The Borrower waives any right it may have to require the Lender to pursue any third Person for any of the Obligations. 
  
 ARTICLE IV 
  
 CONDITIONS OF LENDING 
  
 Section 4.1 Conditions Precedent to the Initial Advances and Letter of Credit. The Lender’s obligation to make the initial Advances or to
cause any Letters of Credit to be issued shall be subject to the condition precedent that the Lender shall have received all of the following, each properly executed by the appropriate party and in form and substance satisfactory to the Lender:

  
 (a) This Agreement. 
  
 (b) The Note. 
  
 (c) A Standby Letter of Credit Agreement and L/C Application
for each Letter of Credit that the Borrower wishes to have issued thereunder. 
  
 (d) The Letter of Credit Reimbursement Agreement and all documents related thereto, including any opinions of counsel requested by Lender. 
  
 (e) The Deed of Trust. 
  

 23 

 (f) A true and correct copy of any and all leases pursuant to which the Borrower is
leasing the Premises, together with a landlord’s disclaimer and consent with respect to each such lease. 
  
 (g) A true and correct copy of any and all mortgages pursuant to which the Borrower has mortgaged the Premises, together with a
mortgagee’s disclaimer and consent with respect to each such mortgage. 
  
 (h) A true and correct copy of any and all agreements pursuant to which the Borrower’s property is in the possession of any Person other than the Borrower, together with, in the case of any goods held by such
Person for resale, (i) a consignee’s acknowledgment and waiver of Liens, (ii) UCC financing statements sufficient to protect the Borrower’s and the Lender’s interests in such goods, and (iii) UCC searches showing that
no other secured party has filed a financing statement against such Person and covering property similar to the Borrower’s other than the Borrower, or if there exists any such secured party, evidence that each such secured party has received
notice from the Borrower and the Lender sufficient to protect the Borrower’s and the Lender’s interests in the Borrower’s goods from any claim by such secured party. 
  
 (i) An acknowledgment and waiver of Liens from each warehouse in which the Borrower is storing Inventory.

  
 (j) A true and correct copy of any and all
agreements pursuant to which the Borrower’s property is in the possession of any Person other than the Borrower, together with, (i) an acknowledgment and waiver of Liens from each subcontractor who has possession of the Borrower’s
goods from time to time, (ii) UCC financing statements sufficient to protect the Borrower’s and the Lender’s interests in such goods, and (iii) UCC searches showing that no other secured party has filed a financing statement
covering such Person’s property other than the Borrower, or if there exists any such secured party, evidence that each such secured party has received notice from the Borrower and the Lender sufficient to protect the Borrower’s and the
Lender’s interests in the Borrower’s goods from any claim by such secured party. 
  
 (k) The Wholesale Lockbox and Collection Account Agreement. 
  
 (l) Control agreements with each bank at which the Borrower maintains deposit accounts. 
  
 (m) Pledge agreement executed by Borrower in favor of Lender
with respect to the money market investment account maintained by Wells Fargo Brokerage, LLC together with a control agreement executed by Borrower and Wells Fargo Brokerage, LLC in favor of Lender, all in form and substance satisfactory to Lender.

  
 (n) A Patent and Trademark Security
Agreement. 
  
 (o) Current searches of
appropriate filing offices showing that (i) no Liens have been filed and remain in effect against the Borrower except Permitted Liens or Liens held by Persons who have agreed in writing that upon receipt of proceeds of the initial Advances,
they will satisfy, release or terminate such Liens in a manner satisfactory to the Lender, and (ii) the 

  

 24 

 
Lender has duly filed all financing statements necessary to perfect the Security Interest, to the extent the Security Interest is capable of being perfected
by filing. 
  
 (p) A certificate of the
Borrower’s Secretary or Assistant Secretary certifying that attached to such certificate are (i) the resolutions of the Borrower’s Directors and, if required, Owners, authorizing the execution, delivery and performance of the Loan
Documents, (ii) true, correct and complete copies of the Borrower’s Constituent Documents, and (iii) examples of the signatures of the Borrower’s Officers or agents authorized to execute and deliver the Loan Documents and other
instruments, agreements and certificates, including Advance requests, on the Borrower’s behalf. 
  
 (q) A current certificate issued by the Secretary of State of California, certifying that the Borrower is in compliance with all
applicable organizational requirements of the State of California. 
  
 (r) Evidence that the Borrower is duly licensed or qualified to transact business in all jurisdictions where the character of the property owned or leased or the nature of the business transacted by it makes such
licensing or qualification necessary. 
  
 (s) A
certificate of an Officer of the Borrower confirming, in his personal capacity, the representations and warranties set forth in Article V. 
  
 (t) A Validity Guaranty executed by Theodore Arena and Tom Mulroney in his personal capacity in favor of the Lender. 
  
 (u) Certificates of the insurance required hereunder, with
all hazard insurance containing a lender’s loss payable endorsement in the Lender’s favor and with all liability insurance naming the Lender as an additional insured. 
  
 (v) Payment of the fees and commissions due under Section 2.9 through the date of the initial Advance
or Letter of Credit and expenses incurred by the Lender through such date and required to be paid by the Borrower under Section 8.5, including all legal expenses incurred through the date of this Agreement. 
  
 (w) Evidence that after making the initial Revolving
Advance, satisfying all obligations owed to Comerica Bank, satisfying all trade payables older than 60 days from invoice date, book overdrafts and closing costs, Availability shall be not less than $3,000,000. 
  
 (x) A Customer Identification Information form and such
other forms and verification as the Lender may need to comply with the U.S.A. Patriot Act. 
  
 (y) with respect to the real estate that is encumbered by the Deed of Trust(i) an appraisal ordered by the Lender or its agent of said
real property and all improvements thereon, conforming to Uniform Standards of Professional Appraisal Practice and issued by a real estate appraiser acceptable to the Lender, reflecting values acceptable to the Lender in its discretion, (ii) an
American Land Title Association policy of title insurance, with such endorsements as the Lender may require, issued by an insurer in such amounts as the Lender may require, insuring the Lender’s first priority lien on said real estate, subject
only to such 

  

 25 

 
exceptions as the Lender in its discretion may approve, together with such evidence relating to the payment of liens or potential liens as the Lender may
require, and (iii) an American Land Title Association survey certified to the Lender and to the title company that is acceptable to the Lender. 
  
 (z) with respect to the real estate that is encumbered by the Deed of Trust (i) a current environmental site assessment indicating
that the real property is subject to no “recognized environmental conditions”, as that term is defined by the American Society for Testing and Materials, in its standards for environmental due diligence, and is not in need of remedial
action to avoid subjecting its owner to any present or future liability or contingent liability with respect to the release of toxic or hazardous wastes or substances. 
  
 (aa) with respect to the real estate that is encumbered by the Deed of Trust (i) a flood hazard
determination form, confirming whether or not the parcel is in a flood hazard area and whether or not flood insurance must be obtained, and, if the real estate is located in a flood hazard area, (ii) a policy of flood insurance. 
  
 (bb) with respect to the real estate that is encumbered by
the Deed of Trust, copies of management services and maintenance contracts, fire, health and safety reports, certificates of occupancy, leases and rent rolls, and such other information relating to the real estate and the improvements thereon that
the Lender in its discretion deems necessary. 
  
 (cc) Such other documents as the Lender in its sole discretion may require. 
  
 Section 4.2 Conditions Precedent to All Advances and Letters of Credit. The Lender’s obligation to make each Advance or to cause the issuance of a Letter of Credit shall be subject to the further
conditions precedent that: 
  
 (a) the
representations and warranties contained in Article V are correct on and as of the date of such Advance or issuance of a Letter of Credit as though made on and as of such date, except to the extent that such representations and warranties relate
solely to an earlier date; and 
  
 (b) no event
has occurred and is continuing, or would result from such Advance or issuance of a Letter of Credit which constitutes a Default or an Event of Default. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower represents and warrants to the Lender as follows: 
  
 Section 5.1 Existence and Power; Name; Chief Executive Office; Inventory and Equipment Locations; Federal Employer Identification Number and
Organizational Identification Number. The Borrower is a corporation, duly organized, validly existing and in good standing under the laws of the State of California and is duly licensed or qualified to transact business in all jurisdictions
where the character of the property owned or leased or the nature of the business transacted by it makes such licensing or qualification necessary. The Borrower has all requisite 

  

 26 

 
power and authority to conduct its business, to own its properties and to execute and deliver, and to perform all of its obligations under, the Loan
Documents. During its existence, the Borrower has done business solely under the names set forth in Schedule 5.1. The Borrower’s chief executive office and principal place of business is located at the address set forth in Schedule 5.1, and all
of the Borrower’s records relating to its business or the Collateral are kept at that location. All Inventory and Equipment is located at that location or at one of the other locations listed in Schedule 5.1. The Borrower’s federal
employer identification number and organization identification number are correctly set forth in Section 3.6. 
  
 Section 5.2 Capitalization. Schedule 5.2 constitutes a correct and complete list of all Persons holding ownership interests and rights to acquire
ownership interests which if fully exercised would cause such Person to hold more than five percent (5%) of all ownership interests of the Borrower on a fully diluted basis, and an organizational chart showing the ownership structure of all
Subsidiaries of the Borrower. 
  
 Section 5.3 Authorization of
Borrowing; No Conflict as to Law or Agreements. The execution, delivery and performance by the Borrower of the Loan Documents and the borrowings from time to time hereunder have been duly authorized by all necessary corporate action and do not
and will not (i) require any consent or approval of the Borrower’s Owners; (ii) require any authorization, consent or approval by, or registration, declaration or filing with, or notice to, any governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, or any third party, except such authorization, consent, approval, registration, declaration, filing or notice as has been obtained, accomplished or given prior to the date hereof;
(iii) violate any provision of any law, rule or regulation (including Regulation X of the Board of Governors of the Federal Reserve System) or of any order, writ, injunction or decree presently in effect having applicability to the Borrower or
of the Borrower’s Constituent Documents; (iv) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other material agreement, lease or instrument to which the Borrower is a party or by which
it or its properties may be bound or affected; or (v) result in, or require, the creation or imposition of any Lien (other than the Security Interest) upon or with respect to any of the properties now owned or hereafter acquired by the
Borrower. 
  
 Section 5.4 Legal Agreements. This Agreement
constitutes and, upon due execution by the Borrower, the other Loan Documents will constitute the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms. 
  
 Section 5.5 Subsidiaries. Except as set forth in Schedule 5.5 hereto,
the Borrower has no Subsidiaries. 
  
 Section 5.6 Financial
Condition; No Adverse Change. The Borrower has furnished to the Lender its audited financial statements for its fiscal year ended December 31, 2004 and unaudited financial statements for the fiscal-year-to-date period ended August 31,
2005, and those statements fairly present the Borrower’s financial condition on the dates thereof and the results of its operations and cash flows for the periods then ended and were prepared in accordance with GAAP. Since the date of the most
recent financial statements, there has been no 

  

 27 

 
change in the Borrower’s business, properties or condition (financial or otherwise) which has had a Material Adverse Effect. 
  
 Section 5.7 Litigation. There are no actions, suits or proceedings
pending or, to the Borrower’s knowledge, threatened against or affecting the Borrower or any of its Affiliates or the properties of the Borrower or any of its Affiliates before any court or governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, which, if determined adversely to the Borrower or any of its Affiliates, would have a Material Adverse Effect on the financial condition, properties or operations of the Borrower or any of its
Affiliates. 
  
 Section 5.8 Regulation U. The Borrower is
not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Advance will be
used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. 
  
 Section 5.9 Taxes. The Borrower and its Affiliates have paid or caused to be paid to the proper authorities when due all federal, state and local
taxes required to be withheld by each of them. The Borrower and its Affiliates have filed all federal, state and local tax returns which to the knowledge of the Officers of the Borrower or any Affiliate, as the case may be, are required to be filed,
and the Borrower and its Affiliates have paid or caused to be paid to the respective taxing authorities all taxes as shown on said returns or on any assessment received by any of them to the extent such taxes have become due. 
  
 Section 5.10 Titles and Liens. The Borrower has good and absolute
title to all Collateral free and clear of all Liens other than Permitted Liens. No financing statement naming the Borrower as debtor is on file in any office except to perfect only Permitted Liens. 
  
 Section 5.11 Intellectual Property Rights. 
  
 (a) Owned Intellectual Property. Schedule 5.11 is a
complete list of all patents, applications for patents, trademarks, applications to register trademarks, service marks, applications to register service marks, mask works, trade dress and copyrights for which the Borrower is the owner of record (the
“Owned Intellectual Property”). Except as disclosed on Schedule 5.11, (i) the Borrower owns the Owned Intellectual Property free and clear of all restrictions (including covenants not to sue a third party), court orders, injunctions,
decrees, writs or Liens, whether by written agreement or otherwise, (ii) no Person other than the Borrower owns or has been granted any right in the Owned Intellectual Property, (iii) all Owned Intellectual Property is valid, subsisting
and enforceable and (iv) the Borrower has taken all commercially reasonable action necessary to maintain and protect the Owned Intellectual Property. 
  
 (b) Agreements with Employees and Contractors. The Borrower has entered into a legally enforceable agreement with each of its
employees and subcontractors obligating each such Person to assign to the Borrower, without any additional compensation, any Intellectual Property Rights created, discovered or invented by such Person in the course of such Person’s employment
or engagement with the Borrower (except to the extent prohibited by law), 

  

 28 

 
and further requiring such Person to cooperate with the Borrower, without any additional compensation, in connection with securing and enforcing any
Intellectual Property Rights therein; provided, however, that the foregoing shall not apply with respect to employees and subcontractors whose job descriptions are of the type such that no such assignments are reasonably foreseeable.

  
 (c) Intellectual Property Rights Licensed
from Others. Schedule 5.11 is a complete list of all agreements under which the Borrower has licensed Intellectual Property Rights from another Person (“Licensed Intellectual Property”) other than readily available, non-negotiated
licenses of computer software and other intellectual property used solely for performing accounting, word processing and similar administrative tasks (“Off-the-shelf Software”) and a summary of any ongoing payments the Borrower is
obligated to make with respect thereto. Except as disclosed on Schedule 5.11 and in written agreements, copies of which have been given to the Lender, the Borrower’s licenses to use the Licensed Intellectual Property are free and clear of all
restrictions, Liens, court orders, injunctions, decrees, or writs, whether by written agreement or otherwise. Except as disclosed on Schedule 5.11, the Borrower is not obligated or under any liability whatsoever to make any payments of a material
nature by way of royalties, fees or otherwise to any owner of, licensor of, or other claimant to, any Intellectual Property Rights. 
  
 (d) Other Intellectual Property Needed for Business. Except for Off-the-shelf Software and as disclosed on Schedule 5.11, the Owned
Intellectual Property and the Licensed Intellectual Property constitute all Intellectual Property Rights used or necessary to conduct the Borrower’s business as it is presently conducted or as the Borrower reasonably foresees conducting it.

  
 (e) Infringement. Except as disclosed
on Schedule 5.11, the Borrower has no knowledge of, and has not received any written claim or notice alleging, any Infringement of another Person’s Intellectual Property Rights (including any written claim that the Borrower must license or
refrain from using the Intellectual Property Rights of any third party) nor, to the Borrower’s knowledge, is there any threatened claim or any reasonable basis for any such claim. 
  
 Section 5.12 Plans. Except as disclosed to the Lender in writing prior to the date hereof, neither the Borrower nor
any ERISA Affiliate (i) maintains or has maintained any Pension Plan, (ii) contributes or has contributed to any Multiemployer Plan or (iii) provides or has provided post-retirement medical or insurance benefits with respect to
employees or former employees (other than benefits required under Section 601 of ERISA, Section 4980B of the IRC or applicable state law). Neither the Borrower nor any ERISA Affiliate has received any notice or has any knowledge to the
effect that it is not in full compliance with any of the requirements of ERISA, the IRC or applicable state law with respect to any Plan. No Reportable Event exists in connection with any Pension Plan. Each Plan which is intended to qualify under
the IRC is so qualified, and no fact or circumstance exists which may have an adverse effect on the Plan’s tax-qualified status. Neither the Borrower nor any ERISA Affiliate has (i) any accumulated funding deficiency (as defined in
Section 302 of ERISA and Section 412 of the IRC) under any Plan, whether or not waived, (ii) any liability under Section 4201 or 4243 of ERISA for any withdrawal, partial withdrawal, reorganization or other event under any
Multiemployer Plan or (iii) any liability or knowledge of any facts or circumstances which could result in any liability to 

  

 29 

 
the Pension Benefit Guaranty Corporation, the Internal Revenue Service, the Department of Labor or any participant in connection with any Plan (other than
routine claims for benefits under the Plan). 
  
 Section 5.13
Default. The Borrower is in compliance with all provisions of all agreements, instruments, decrees and orders to which it is a party or by which it or its property is bound or affected, the breach or default of which could have a Material
Adverse Effect. 
  
 Section 5.14 Environmental Matters.

  
 (a) Except as disclosed on Schedule 5.14,
there are not present in, on or under the Premises any Hazardous Substances in such form or quantity as to create any material liability or obligation for either the Borrower or the Lender under the common law of any jurisdiction or under any
Environmental Law, and no Hazardous Substances have ever been stored, buried, spilled, leaked, discharged, emitted or released in, on or under the Premises in such a way as to create any such material liability. 
  
 (b) Except as disclosed on Schedule 5.14, the Borrower has
not disposed of Hazardous Substances in such a manner as to create any material liability under any Environmental Law. 
  
 (c) Except as disclosed on Schedule 5.14, there have not existed in the past, nor are there any threatened or impending requests, claims,
notices, investigations, demands, administrative proceedings, hearings or litigation relating in any way to the Premises or the Borrower, alleging material liability under, violation of, or noncompliance with any Environmental Law or any license,
permit or other authorization issued pursuant thereto. 
  
 (d) Except as disclosed on Schedule 5.14, the Borrower’s businesses are and have in the past always been conducted in accordance with all Environmental Laws and all licenses, permits and other authorizations required pursuant to any
Environmental Law and necessary for the lawful and efficient operation of such businesses are in the Borrower’s possession and are in full force and effect, nor has the Borrower been denied insurance on grounds related to potential
environmental liability. No permit required under any Environmental Law is scheduled to expire within 12 months and there is no threat that any such permit will be withdrawn, terminated, limited or materially changed. 
  
 (e) Except as disclosed on Schedule 5.14, the Premises are
not and never have been listed on the National Priorities List, the Comprehensive Environmental Response, Compensation and Liability Information System or any similar federal, state or local list, schedule, log, inventory or database. 
  
 (f) The Borrower has delivered to the Lender all
environmental assessments, audits, reports, permits, licenses and other documents describing or relating in any way to the Premises or the Borrower’s businesses. 
  
 Section 5.15 Submissions to Lender. All financial and other information provided to the Lender by or on behalf of the
Borrower in connection with the Borrower’s request for the credit facilities contemplated hereby (i) is true and correct in all material respects, (ii) does not 

  

 30 

 
omit any material fact necessary to make such information not misleading and, (iii) as to projections, valuations or proforma financial statements,
present a good faith opinion as to such projections, valuations and proforma condition and results. 
  
 Section 5.16 Financing Statements. The Borrower has authorized the filing of financing statements sufficient when filed to perfect the Security
Interest and the other security interests created by the Security Documents. When such financing statements are filed in the offices noted therein, the Lender will have a valid and perfected security interest in all Collateral which is capable of
being perfected by filing financing statements. None of the Collateral is or will become a fixture on real estate, unless a sufficient fixture filing is in effect with respect thereto. 
  
 Section 5.17 Rights to Payment. Each right to payment and each instrument, document, chattel paper and other
agreement constituting or evidencing Collateral is (or, in the case of all future Collateral, will be when arising or issued) the valid, genuine and legally enforceable obligation, subject to no defense, setoff or counterclaim, of the account debtor
or other obligor named therein or in the Borrower’s records pertaining thereto as being obligated to pay such obligation. 
  
 Section 5.18 Financial Solvency. Both before and after giving effect to the transactions contemplated in the Loan Documents, none of the Borrower
or its Affiliates: 
  
 (a) Was or will be
insolvent, as that term is used and defined in Section 101(32) of the United States Bankruptcy Code and Section 2 of the Uniform Fraudulent Transfer Act; 
  
 (b) Has unreasonably small capital or is engaged or about to engage in a business or a transaction for which
any remaining assets of the Borrower or such Affiliate are unreasonably small; 
  
 (c) By executing, delivering or performing its obligations under the Loan Documents or other documents to which it is a party or by taking
any action with respect thereto, intends to, nor believes that it will, incur debts beyond its ability to pay them as they mature; 
  
 (d) By executing, delivering or performing its obligations under the Loan Documents or other documents to which it is a party or by taking
any action with respect thereto, intends to hinder, delay or defraud either its present or future creditors; and 
  
 (e) At this time contemplates filing a petition in bankruptcy or for an arrangement or reorganization or similar proceeding under any law
of any jurisdiction, nor, to the best knowledge of the Borrower, is the subject of any actual, pending or threatened bankruptcy, insolvency or similar proceedings under any law of any jurisdiction. 
  
 Section 5.19 No Merger. The Borrower has not consolidated with or
merged into any Person, or permitted any other Person to merge into it, or acquired (in a transaction analogous in purpose or effect to a consolidation or merger) all or substantially all the assets of any other Person at any time during the five
(5) year period immediately prior to the date hereof. 
  

 31 

  
 ARTICLE VI 

 
 COVENANTS 
  
 So long as the Obligations shall remain unpaid, or the Credit Facility shall
remain outstanding, the Borrower will comply with the following requirements, unless the Lender shall otherwise consent in writing: 
  
 Section 6.1 Reporting Requirements. The Borrower will deliver, or cause to be delivered, to the Lender each of the following, which shall be in
form and detail acceptable to the Lender: 
  
 (a)
Annual Financial Statements. As soon as available, and in any event within 90 days after the end of each fiscal year of the Borrower, the Borrower’s audited financial statements with the unqualified opinion of independent certified
public accountants selected by the Borrower and acceptable to the Lender, which annual financial statements shall include the Borrower’s balance sheet as at the end of such fiscal year and the related statements of the Borrower’s income,
retained earnings and cash flows for the fiscal year then ended, prepared, if the Lender so requests, on a consolidating and consolidated basis to include any Affiliates, all in reasonable detail and prepared in accordance with GAAP, together with
(i) copies of all management letters prepared by such accountants; (ii) a report signed by such accountants stating that in making the investigations necessary for said opinion they obtained no knowledge, except as specifically stated, of
any Default or Event of Default and all relevant facts in reasonable detail to evidence, and the computations as to, whether or not the Borrower is in compliance with the Financial Covenants; and (iii) a certificate of the Borrower’s chief
financial officer stating that such financial statements have been prepared in accordance with GAAP, fairly represent the Borrower’s financial position and the results of its operations, and whether or not such Officer has knowledge of the
occurrence of any Default or Event of Default and, if so, stating in reasonable detail the facts with respect thereto. 
  
 (b) Monthly Financial Statements. As soon as available and in any event within 20 days after the end of each month, the
unaudited/internal balance sheet and statements of income and retained earnings of the Borrower as at the end of and for such month and for the year to date period then ended, prepared, if the Lender so requests, on a consolidating and consolidated
basis to include any Affiliates, in reasonable detail and stating in comparative form the figures for the corresponding date and periods in the previous year, all prepared in accordance with GAAP, subject to year-end audit adjustments and which
fairly represent the Borrower’s financial position and the results of its operations; and accompanied by a certificate of the Borrower’s chief financial officer, substantially in the form of Exhibit B hereto stating (i) that such
financial statements have been prepared in accordance with GAAP, subject to year-end audit adjustments, and fairly represent the Borrower’s financial position and the results of its operations, (ii) whether or not such Officer has
knowledge of the occurrence of any Default or Event of Default not theretofore reported and remedied and, if so, stating in reasonable detail the facts with respect thereto, and (iii) all relevant facts in reasonable detail to evidence, and the
computations as to, whether or not the Borrower is in compliance with the Financial Covenants. 
  

 32 

 (c) Collateral Reports. Within 20 days after the end of each month or more
frequently if the Lender so requires, the aging Borrower’s accounts receivable and its accounts payable, a detailed inventory report, an inventory certification report, and a calculation of the Borrower’s Accounts, Eligible
Accounts, Inventory and Eligible Inventory and Accounts reconciliation as at the end of such month or shorter time period. 
  
 (d) Projections. No later than 30 days prior to the first day of each fiscal year, the Borrower’s projected balance sheets,
income statements, statements of cash flow and projected Availability for each month of such fiscal year, each in reasonable detail. Such items will be certified by the Officer who is the Borrower’s chief financial officer as being the most
accurate projections available and identical to the projections used by the Borrower for internal planning purposes and be delivered with a statement of underlying assumptions and such supporting schedules and information as the Lender may in its
discretion require. 
  
 (e) Supplemental
Reports. Weekly, or more frequently if the Lender so requires, the Borrower’s collection reports, copies of invoices and bills of lading for individual sales in excess of $65,000, sales reports, credit memos and Accounts adjustments.

  
 (f) Litigation. Immediately after the
commencement thereof, notice in writing of all litigation and of all proceedings before any governmental or regulatory agency affecting the Borrower (i) of the type described in Section 5.14(c) or (ii) which seek a monetary recovery
against the Borrower in excess of $50,000. 
  
 (g) Defaults. When any Officer of the Borrower becomes aware of the probable occurrence of any Default or Event of Default, and no later than 3 days after such Officer becomes aware of such Default or Event of Default, notice of such
occurrence, together with a detailed statement by a responsible Officer of the Borrower of the steps being taken by the Borrower to cure the effect thereof. 
  
 (h) Plans. As soon as possible, and in any event within 30 days after the Borrower knows or has reason to know that any Reportable
Event with respect to any Pension Plan has occurred, a statement signed by the Officer who is the Borrower’s chief financial officer setting forth details as to such Reportable Event and the action which the Borrower proposes to take with
respect thereto, together with a copy of the notice of such Reportable Event to the Pension Benefit Guaranty Corporation. As soon as possible, and in any event within 10 days after the Borrower fails to make any quarterly contribution required with
respect to any Pension Plan under Section 412(m) of the IRC, the Borrower will deliver to the Lender a statement signed by the Officer who is the Borrower’s chief financial officer setting forth details as to such failure and the action
which the Borrower proposes to take with respect thereto, together with a copy of any notice of such failure required to be provided to the Pension Benefit Guaranty Corporation. As soon as possible, and in any event within ten days after the
Borrower knows or has reason to know that it has or is reasonably expected to have any liability under Sections 4201 or 4243 of ERISA for any withdrawal, partial withdrawal, reorganization or other event under any Multiemployer Plan, the Borrower
will deliver to the Lender a statement of the Borrower’s chief financial officer setting forth details as to such liability and the action which the Borrower proposes to take with respect thereto. 
  

 33 

 (i) Disputes. Promptly upon knowledge thereof, notice of (i) any disputes or
claims by the Borrower’s customers; (ii) credit memos; and (iii) any goods returned to or recovered by the Borrower. 
  
 (j) Officers and Directors. Promptly upon knowledge thereof, notice of any change in the persons constituting the Borrower’s
Officers and Directors. 
  
 (k)
Collateral. Promptly upon knowledge thereof, notice of any loss of or material damage to any Collateral or of any substantial adverse change in any Collateral or the prospect of payment thereof. 
  
 (l) Commercial Tort Claims. Promptly upon knowledge
thereof, notice of any commercial tort claims it may bring against any Person, including the name and address of each defendant, a summary of the facts, an estimate of the Borrower’s damages, copies of any complaint or demand letter submitted
by the Borrower, and such other information as the Lender may request. 
  
 (m) Intellectual Property. 
  
 (i) 30 days prior written notice of Borrower’s intent to acquire material Intellectual Property Rights; except for transfers permitted under Section 6.18, the Borrower will give the Lender 30 days prior
written notice of its intent to dispose of material Intellectual Property Rights and upon request shall provide the Lender with copies of all proposed documents and agreements concerning such rights. 
  
 (ii) Promptly upon knowledge thereof, notice of (A) any
Infringement of its Intellectual Property Rights by others, (B) claims that the Borrower is Infringing another Person’s Intellectual Property Rights and (C) any threatened cancellation, termination or material limitation of its
Intellectual Property Rights. 
  
 (iii) Promptly
upon receipt, copies of all registrations and filings with respect to its Intellectual Property Rights. 
  
 (n) Reports to Owners. Promptly upon their distribution, copies of all financial statements, reports and proxy statements which the
Borrower shall have sent to its Owners. 
  
 (o)
SEC Filings. Promptly after the sending or filing thereof, copies of all regular and periodic reports which the Borrower shall file with the Securities and Exchange Commission or any national securities exchange. 
  
 (p) Tax Returns of Borrower. As soon as possible, and
in any event no later than five days after they are due to be filed, copies of the state and federal income tax returns and all schedules thereto of the Borrower. 
  
 (q) Violations of Law. Promptly upon knowledge thereof, notice of the Borrower’s violation of
any law, rule or regulation, the non-compliance with which could have a Material Adverse Effect on the Borrower. 
  

 34 

 (r) Other Reports. From time to time, with reasonable promptness, any and all
deposit records, equipment schedules, copies of invoices to account debtors, shipment documents and delivery receipts for goods sold, and such other material, reports, records or information as the Lender may request, including but not
limited to an updated listing of the Borrower’s Customers which shall be delivered to Lender on a semi-annual basis. 
  
 Section 6.2 Financial Covenants. 
  
 (a) Minimum Book Net Worth. The Borrower will maintain, during each period described below, its Book Net Worth, determined as of
the end of each month, in an amount not less than the amount set forth for each such period: 
  

				
	 Period

	  	Minimum Book
Net Worth

	 August 1, 2005 through September 30, 2005
	  	$	7,800,000
	 October 1, 2005 Through December 31, 2005
	  	$	7,500,000
	 January 1, 2006 Through March 31, 2006
	  	$	7,500,000
	 April 1 Through June 30, 2006
	  	$	7,500,000
	 July 1, 2006 Through September 30, 2006
	  	$	7,500,000
	 October 1, 2006 Through December 31, 2006
	  	$	7,600,000
	 January 1, 2007 and each month thereafter
	  	$	7,600,000

  
 (b)
Minimum Net Income/Maximum Net Loss. The Borrower will achieve, for each period described below, measured on a year-to-date basis, Net Income/Net Loss of not less or more (as the case may be) than the amount set forth for each such period
(numbers appearing between “( )” are negative): 
  

					
	 Quarter

	  	 Minimum Net Income/
 Maximum Net Loss

	 
	 Quarter ending September 30, 2005
	  	$	(750,000	)
	 Quarter ending December 31, 2005
	  	$	(900,000	)
	 Quarter ending March 31, 2006
	  	$	(200,000	)
	 Quarter ending June 30, 2006
	  	$	(200,000	)
	 Quarter ending September 30, 2006
	  	$	(250,000	)
	 Quarter ending December 31, 2006
	  	$	(250,000	)

  
 (c)
Minimum Debt Service Coverage Ratio. The Borrower will maintain, during each period described below, measured on a year-to-date basis, a Debt Service Coverage Ratio, determined as at the end of each quarter, of not less than the ratio set
forth for each such period: 
  

			
	 Quarter

	  	Minimum Debt Service
Coverage Ratio

	 Quarter ending June 30, 2006
	  	0.15 to 1.00
	 Quarter ending September 30, 2006
	  	0.20 to 1.00
	 Quarter ending December 31, 2006
	  	0.28 to 1.00
	 Quarter ending March 31, 2007
	  	1.00 to 1.00

  

 35 

 (d) Capital Expenditures. The Borrower will not incur or contract to incur Capital
Expenditures of more than $500,000 in the aggregate during any fiscal year. 
  
 Section 6.3 Permitted Liens; Financing Statements. 
  
 (a) The Borrower will not create, incur or suffer to exist any Lien upon or of any of its assets, now owned or hereafter acquired, to
secure any indebtedness; excluding, however, from the operation of the foregoing, the following (each a “Permitted Lien”; collectively, “Permitted Liens”): 
  
 (i) In the case of any of the Borrower’s property which
is not Collateral, covenants, restrictions, rights, easements and minor irregularities in title which do not materially interfere with the Borrower’s business or operations as presently conducted; 
  
 (ii) Liens in existence on the date hereof and listed in
Schedule 6.3 hereto, securing indebtedness for borrowed money permitted under Section 6.4; 
  
 (iii) The Security Interest and Liens created by the Security Documents; and 
  
 (iv) Purchase money Liens relating to the acquisition of
machinery and equipment of the Borrower not exceeding the lesser of cost or fair market value thereof, not exceeding $50,000 for any one purchase or $100,000 in the aggregate during any fiscal year, and so long as no Default Period is then in
existence and none would exist immediately after such acquisition. 
  
 (b) The Borrower will not amend any financing statements in favor of the Lender except as permitted by law. Any authorization by the Lender to any Person to amend financing statements in favor of the Lender shall be
in writing. 
  
 Section 6.4 Indebtedness. The Borrower will
not incur, create, assume or permit to exist any indebtedness or liability on account of deposits or advances or any indebtedness for borrowed money or letters of credit issued on the Borrower’s behalf, or any other indebtedness or liability
evidenced by notes, bonds, debentures or similar obligations, except: 
  
 (a) Indebtedness arising hereunder; 
  
 (b) Indebtedness of the Borrower in existence on the date hereof and listed in Schedule 6.4 hereto; and 
  
 (c) Indebtedness relating to Permitted Liens. 
  

 36 

 Section 6.5 Guaranties. The Borrower will not assume, guarantee, endorse or otherwise become
directly or contingently liable in connection with any obligations of any other Person, except: 
  
 (a) The endorsement of negotiable instruments by the Borrower for deposit or collection or similar transactions in the ordinary course of
business; and 
  
 (b) Guaranties, endorsements
and other direct or contingent liabilities in connection with the obligations of other Persons, in existence on the date hereof and listed in Schedule 6.4 hereto. 
  
 Section 6.6 Investments and Subsidiaries. The Borrower will not make or permit to exist any loans or advances to, or
make any investment or acquire any interest whatsoever in, any other Person or Affiliate, including any partnership or joint venture, nor purchase or hold beneficially any stock or other securities or evidence of indebtedness of any other Person or
Affiliate, except: 
  
 (a) Investments in direct
obligations of the United States of America or any agency or instrumentality thereof whose obligations constitute full faith and credit obligations of the United States of America having a maturity of one year or less, commercial paper issued by
U.S. corporations rated “A-1” or “A-2” by Standard & Poor’s Ratings Services or “P-1” or “P-2” by Moody’s Investors Service or certificates of deposit or bankers’ acceptances having a
maturity of one year or less issued by members of the Federal Reserve System having deposits in excess of $100,000,000 (which certificates of deposit or bankers’ acceptances are fully insured by the Federal Deposit Insurance Corporation);

  
 (b) Travel advances or loans to the
Borrower’s Officers and employees not exceeding at any one time an aggregate of $50,000; 
  
 (c) Prepaid rent not exceeding one month or security deposits; and 
  
 (d) Current investments in the Subsidiaries in existence on the date hereof and listed in Schedule 5.5
hereto. 
  
 Section 6.7 Dividends and Distributions. The
Borrower will not declare or pay any dividends (other than dividends payable solely in stock of the Borrower) on any class of its stock, or make any payment on account of the purchase, redemption or other retirement of any shares of such stock, or
other securities or evidence of its indebtedness or make any distribution in respect thereof, either directly or indirectly. 
  
 Section 6.8 Salaries. The Borrower will not pay excessive or unreasonable salaries, bonuses, commissions, consultant fees or other compensation; or
increase the salary, bonus, commissions, consultant fees or other compensation of any Director, Officer or consultant, or any member of their families, by more than 10% in any one year, either individually or for all such persons in the aggregate,
or pay any such increase from any source other than profits earned in the year of payment. 
  
 Section 6.9 [Intentionally Omitted]. 
  

 37 

 Section 6.10 Books and Records; Collateral Examination, Inspection and Appraisals. 
  
 (a) The Borrower will keep accurate books of record and
account for itself pertaining to the Collateral and pertaining to the Borrower’s business and financial condition and such other matters as the Lender may from time to time request in which true and complete entries will be made in accordance
with GAAP and, upon the Lender’s request, will permit any officer, employee, attorney, accountant or other agent of the Lender to audit, review, make extracts from or copy any and all company and financial books and records of the Borrower at
all times during ordinary business hours, to send and discuss with account debtors and other obligors requests for verification of amounts owed to the Borrower, and to discuss the Borrower’s affairs with any of its Directors, Officers,
employees or agents. 
  
 (b) The Borrower hereby
irrevocably authorizes all accountants and third parties to disclose and deliver to the Lender or its designated agent, at the Borrower’s expense, all financial information, books and records, work papers, management reports and other
information in their possession regarding the Borrower. 
  
 (c) The Borrower will permit the Lender or its employees, accountants, attorneys or agents, to examine and inspect any Collateral or any other property of the Borrower at any time during ordinary business hours.

  
 Section 6.11 Account Verification. 
  
 (a) The Lender or its agent may at any time and from time to
time send or require the Borrower to send requests for verification of accounts or notices of assignment to account debtors and other obligors. The Lender or its agent may also at any time and from time to time telephone account debtors and other
obligors to verify accounts. 
  
 (b) The Borrower
shall pay when due each account payable due to a Person holding a Permitted Lien (as a result of such payable) on any Collateral. 
  
 Section 6.12 Compliance with Laws. 
  
 (a) The Borrower shall (i) comply, and cause each Subsidiary to comply, with the requirements of applicable laws and
regulations, the non-compliance with which would materially and adversely affect its business or its financial condition and (ii) use and keep the Collateral, and require that others use and keep the Collateral, only for lawful purposes,
without violation of any federal, state or local law, statute or ordinance. 
  
 (b) Without limiting the foregoing undertakings, the Borrower specifically agrees that it will comply, and cause each Subsidiary to comply, with all applicable Environmental Laws and obtain and comply with all
permits, licenses and similar approvals required by any Environmental Laws, and will not generate, use, transport, treat, store or dispose of any Hazardous Substances in such a manner as to create any material liability or obligation under the
common law of any jurisdiction or any Environmental Law. 
  
 (c) The Borrower shall (i) ensure, and cause each Subsidiary to ensure, that no Owner shall be listed on the Specially Designated Nationals and Blocked Person List or other 

  

 38 

 
similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders,
(ii) not use or permit the use of the proceeds of the Credit Facility or any other financial accommodation from the Lender to violate any of the foreign asset control regulations of OFAC or other applicable law, (iii) comply, and
cause each Subsidiary to comply, with all applicable Bank Secrecy Act laws and regulations, as amended from time to time, and (iv) otherwise comply with the USA Patriot Act as required by federal law and the Lender’s policies and
practices. 
  
 Section 6.13 Payment of Taxes and Other
Claims. The Borrower will pay or discharge, when due, (a) all taxes, assessments and governmental charges levied or imposed upon it or upon its income or profits, upon any properties belonging to it (including the Collateral) or upon or
against the creation, perfection or continuance of the Security Interest, prior to the date on which penalties attach thereto, (b) all federal, state and local taxes required to be withheld by it, and (c) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a Lien upon any properties of the Borrower; provided, that the Borrower shall not be required to pay any such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which proper reserves have been made. 
  
 Section 6.14 Maintenance of Properties. 
  
 (a) The Borrower will keep and maintain the Collateral and all of its other properties necessary or useful in its business in good
condition, repair and working order (normal wear and tear excepted) and will from time to time replace or repair any worn, defective or broken parts; provided, however, that nothing in this covenant shall prevent the Borrower from
discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the Borrower’s judgment, desirable in the conduct of the Borrower’s business and not disadvantageous in any material respect to the Lender.
The Borrower will take all commercially reasonable steps necessary to protect and maintain its Intellectual Property Rights. 
  
 (b) The Borrower will defend the Collateral against all Liens, claims or demands of all Persons (other than the Lender) claiming the
Collateral or any interest therein. The Borrower will keep all Collateral free and clear of all Liens except Permitted Liens. The Borrower will take all commercially reasonable steps necessary to prosecute any Person Infringing its Intellectual
Property Rights and to defend itself against any Person accusing it of Infringing any Person’s Intellectual Property Rights. 
  
 Section 6.15 Insurance. The Borrower will obtain and at all times maintain insurance with insurers acceptable to the Lender, in such amounts, on
such terms (including any deductibles) and against such risks as may from time to time be required by the Lender, but in all events in such amounts and against such risks as is usually carried by companies engaged in similar business and owning
similar properties in the same general areas in which the Borrower operates. Without limiting the generality of the foregoing, the Borrower will at all times maintain business interruption insurance including coverage for force majeure and keep all
tangible Collateral insured against risks of fire (including so-called extended coverage), theft, collision (for Collateral consisting of motor vehicles) and such other risks and in such amounts as the Lender may reasonably request, with any loss
payable to the Lender to the extent of its 

  

 39 

 
interest, and all policies of such insurance shall contain a lender’s loss payable endorsement for the Lender’s benefit. All policies of liability
insurance required hereunder shall name the Lender as an additional insured. 
  
 Section 6.16 Preservation of Existence. The Borrower will preserve and maintain its existence and all of its rights, privileges and franchises necessary or desirable in the normal conduct of its business and
shall conduct its business in an orderly, efficient and regular manner. 
  
 Section 6.17 Delivery of Instruments, etc. Upon request by the Lender, the Borrower will promptly deliver to the Lender in pledge all instruments, documents and chattel paper constituting Collateral, duly endorsed or assigned by the
Borrower. 
  
 Section 6.18 Sale or Transfer of Assets;
Suspension of Business Operations. The Borrower will not sell, lease, assign, transfer or otherwise dispose of (i) the stock of any Subsidiary, (ii) all or a substantial part of its assets, or (iii) any Collateral or any interest
therein (whether in one transaction or in a series of transactions) to any other Person other than the sale of Inventory in the ordinary course of business and will not liquidate, dissolve or suspend business operations. The Borrower will not
transfer any part of its ownership interest in any Intellectual Property Rights and will not permit any agreement under which it has licensed Licensed Intellectual Property to lapse, except that the Borrower may transfer such rights or permit such
agreements to lapse if it shall have reasonably determined that the applicable Intellectual Property Rights are no longer useful in its business. If the Borrower transfers any Intellectual Property Rights for value, the Borrower will pay over the
proceeds to the Lender for application to the Obligations. The Borrower will not license any other Person to use any of the Borrower’s Intellectual Property Rights, except that the Borrower may grant licenses in the ordinary course of its
business in connection with sales of Inventory or provision of services to its customers. 
  
 Section 6.19 Consolidation and Merger; Asset Acquisitions. The Borrower will not consolidate with or merge into any Person, or permit any other Person to merge into it, or acquire (in a transaction analogous in
purpose or effect to a consolidation or merger) all or substantially all the assets of any other Person. 
  
 Section 6.20 Sale and Leaseback. The Borrower will not enter into any arrangement, directly or indirectly, with any other Person whereby the
Borrower shall sell or transfer any real or personal property, whether now owned or hereafter acquired, and then or thereafter rent or lease as lessee such property or any part thereof or any other property which the Borrower intends to use for
substantially the same purpose or purposes as the property being sold or transferred. 
  
 Section 6.21 Restrictions on Nature of Business. The Borrower will not engage in any line of business materially different from that presently engaged in by the Borrower and will not purchase, lease or
otherwise acquire assets not related to its business. 
  
 Section
6.22 Accounting. The Borrower will not adopt any material change in accounting principles other than as required by GAAP. The Borrower will not adopt, permit or consent to any change in its fiscal year. 
  

 40 

 Section 6.23 Discounts, etc. After notice from the Lender, the Borrower will not grant any
discount, credit or allowance to any customer of the Borrower or accept any return of goods sold. The Borrower will not at any time modify, amend, subordinate, cancel or terminate the obligation of any account debtor or other obligor of the
Borrower. 
  
 Section 6.24 Plans. Unless disclosed to the
Lender pursuant to Section 5.12, neither the Borrower nor any ERISA Affiliate will (i) adopt, create, assume or become a party to any Pension Plan, (ii) incur any obligation to contribute to any Multiemployer Plan, (iii) incur
any obligation to provide post-retirement medical or insurance benefits with respect to employees or former employees (other than benefits required by law) or (iv) amend any Plan in a manner that would materially increase its funding
obligations. 
  
 Section 6.25 Place of Business; Name. The
Borrower will not transfer its chief executive office or principal place of business, or move, relocate, close or sell any business location. The Borrower will not permit any tangible Collateral or any records pertaining to the Collateral to be
located in any state or area in which, in the event of such location, a financing statement covering such Collateral would be required to be, but has not in fact been, filed in order to perfect the Security Interest. The Borrower will not change its
name or jurisdiction of organization. 
  
 Section 6.26
Constituent Documents; S Corporation Status. The Borrower will not amend its Constituent Documents without the consent of Lender, which consent will not be unreasonably withheld. The Borrower will not become an S Corporation.

  
 Section 6.27 Performance by the Lender. If the Borrower
at any time fails to perform or observe any of the foregoing covenants contained in this Article VI or elsewhere herein, and if such failure shall continue for a period of ten calendar days after the Lender gives the Borrower written notice thereof
(or in the case of the agreements contained in Section 6.13 and Section 6.15, immediately upon the occurrence of such failure, without notice or lapse of time), the Lender may, but need not, perform or observe such covenant on behalf and
in the name, place and stead of the Borrower (or, at the Lender’s option, in the Lender’s name) and may, but need not, take any and all other actions which the Lender may reasonably deem necessary to cure or correct such failure (including
the payment of taxes, the satisfaction of Liens, the performance of obligations owed to account debtors or other obligors, the procurement and maintenance of insurance, the execution of assignments, security agreements and financing statements, and
the endorsement of instruments); and the Borrower shall thereupon pay to the Lender on demand the amount of all monies expended and all costs and expenses (including reasonable attorneys’ fees and legal expenses) incurred by the Lender in
connection with or as a result of the performance or observance of such agreements or the taking of such action by the Lender, together with interest thereon from the date expended or incurred at the Default Rate. To facilitate the Lender’s
performance or observance of such covenants of the Borrower, the Borrower hereby irrevocably appoints the Lender, or the Lender’s delegate, acting alone, as the Borrower’s attorney in fact (which appointment is coupled with an interest)
with the right (but not the duty) from time to time to create, prepare, complete, execute, deliver, endorse or file in the name and on behalf of the Borrower any and all instruments, documents, assignments, security agreements, financing statements,
applications for insurance and other agreements and writings required to be obtained, executed, delivered or endorsed by the Borrower hereunder. 
  

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 Section 6.28 Engagement of Kibel Green Inc. Borrower shall hire and continue to use the services
of Kibel Green Inc. in order to identify key areas of improvement in the Borrower’s business and to assist the Borrower in preparing cash flow models and monthly projections, until Borrower has achieved a positive Net Income for at least four
(4) consecutive quarters. 
  
 ARTICLE VII 

 
 EVENTS OF DEFAULT, RIGHTS AND REMEDIES 
  
 Section 7.1 Events of Default. “Event of Default”, wherever
used herein, means any one of the following events: 
  
 (a) Default in the payment of any Obligations when they become due and payable; 
  
 (b) Default in the performance, or breach, of any covenant or agreement of the Borrower contained in this Agreement or any Loan Document;

  
 (c) An Overadvance arises as the result of
any reduction in the Borrowing Base, or arises in any manner on terms not otherwise approved of in advance by the Lender in writing; 
  
 (d) A Change of Control shall occur; 
  
 (e) Any Financial Covenant shall become inapplicable due to the lapse of time and the failure to amend any such covenant to cover future
periods; 
  
 (f) The Borrower or any Guarantor
shall be or become insolvent, or admit in writing its or his inability to pay its or his debts as they mature, or make an assignment for the benefit of creditors; or the Borrower or any Guarantor shall apply for or consent to the appointment of any
receiver, trustee, or similar officer for it or him or for all or any substantial part of its or his property; or such receiver, trustee or similar officer shall be appointed without the application or consent of the Borrower or such Guarantor, as
the case may be; or the Borrower or any Guarantor shall institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding
relating to it or him under the laws of any jurisdiction; or any such proceeding shall be instituted (by petition, application or otherwise) against the Borrower or any such Guarantor; or any judgment, writ, warrant of attachment or execution or
similar process shall be issued or levied against a substantial part of the property of the Borrower or any Guarantor; 
  
 (g) A petition shall be filed by or against the Borrower or any Guarantor under the United States Bankruptcy Code naming the Borrower or
such Guarantor as debtor; 
  
 (h) Any
representation or warranty made by the Borrower in this Agreement, by any Guarantor in any guaranty delivered to the Lender, or by the Borrower (or any of its Officers) or any Guarantor in any agreement, certificate, instrument or financial
statement or 

  

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other statement contemplated by or made or delivered pursuant to or in connection with this Agreement or any such guaranty shall prove to have been incorrect
in any material respect when deemed to be effective; 
  
 (i) The rendering against the Borrower of an arbitration award, final judgment, decree or order for the payment of money in excess of $50,000 and the continuance of such arbitration award, judgment, decree or order unsatisfied and in effect
for any period of 30 consecutive days without a stay of execution; 
  
 (j) A default under any bond, debenture, note or other evidence of material indebtedness of the Borrower owed to any Person other than the Lender, or under any indenture or other instrument under which any such
evidence of indebtedness has been issued or by which it is governed, or under any material lease or other contract, and the expiration of the applicable period of grace, if any, specified in such evidence of indebtedness, indenture, other
instrument, lease or contract; 
  
 (k) Any
Reportable Event, which the Lender determines in good faith might constitute grounds for the termination of any Pension Plan or for the appointment by the appropriate United States District Court of a trustee to administer any Pension Plan, shall
have occurred and be continuing 30 days after written notice to such effect shall have been given to the Borrower by the Lender; or a trustee shall have been appointed by an appropriate United States District Court to administer any Pension Plan; or
the Pension Benefit Guaranty Corporation shall have instituted proceedings to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan; or the Borrower or any ERISA Affiliate shall have filed for a distress termination of
any Pension Plan under Title IV of ERISA; or the Borrower or any ERISA Affiliate shall have failed to make any quarterly contribution required with respect to any Pension Plan under Section 412(m) of the IRC, which the Lender determines in good
faith may by itself, or in combination with any such failures that the Lender may determine are likely to occur in the future, result in the imposition of a Lien on the Borrower’s assets in favor of the Pension Plan; or any withdrawal, partial
withdrawal, reorganization or other event occurs with respect to a Multiemployer Plan which results or could reasonably be expected to result in a material liability of the Borrower to the Multiemployer Plan under Title IV of ERISA; 
  
 (l) An event of default shall occur under any Security
Document; 
  
 (m) The Borrower shall liquidate,
dissolve, terminate or suspend its business operations or otherwise fail to operate its business in the ordinary course, merge with another Person unless the Borrower is the surviving entity; or sell or attempt to sell all or substantially all of
its assets, without the Lender’s prior written consent; 
  
 (n) Default in the payment of any amount owed by the Borrower to the Lender other than any indebtedness arising hereunder; 
  
 (o) Any Person signing a validity guaranty in favor of the Lender shall repudiate, purport to revoke or fail to perform any obligation
under such validity guaranty in favor of the Lender, any such Person shall die and no replacement, acceptable to Lender, shall execute a validity guaranty within 60 days of the death of such Person; 
  

 43 

 (p) Any event or circumstance with respect to the Borrower shall occur such that the
Lender shall believe in good faith that the prospect of payment of all or any part of the Obligations or the performance by the Borrower under the Loan Documents is impaired or any material adverse change in the business or financial condition of
the Borrower shall occur; 
  
 (q) Any breach,
default or event of default by or attributable to any Affiliate under any agreement between such Affiliate and the Lender shall occur; or 
  
 (r) The indictment of any Director, Officer, Guarantor, or any Owner of the Borrower for a felony offence under state or federal law.

  
 Section 7.2 Rights and Remedies. During any Default
Period, the Lender may exercise any or all of the following rights and remedies: 
  
 (a) The Lender may, by notice to the Borrower, declare the Commitment to be terminated, whereupon the same shall forthwith terminate;

  
 (b) The Lender may, by notice to the
Borrower, declare the Obligations to be forthwith due and payable, whereupon all Obligations shall become and be forthwith due and payable, without presentment, notice of dishonor, protest or further notice of any kind, all of which the Borrower
hereby expressly waives; 
  
 (c) The Lender may,
without notice to the Borrower and without further action, apply any and all money owing by the Lender to the Borrower to the payment of the Obligations; 
  
 (d) The Lender may exercise and enforce any and all rights and remedies available upon default to a secured party under the UCC, including
the right to take possession of Collateral, or any evidence thereof, proceeding without judicial process or by judicial process (without a prior hearing or notice thereof, which the Borrower hereby expressly waives) and the right to sell, lease or
otherwise dispose of any or all of the Collateral (with or without giving any warranties as to the Collateral, title to the Collateral or similar warranties), and, in connection therewith, the Borrower will on demand assemble the Collateral and make
it available to the Lender at a place to be designated by the Lender which is reasonably convenient to both parties; 
  
 (e) The Lender may make demand upon the Borrower and, forthwith upon such demand, the Borrower will pay to the Lender in immediately
available funds for deposit in the Special Account pursuant to Section 2.5 an amount equal to the aggregate maximum amount available to be drawn under all Letters of Credit then outstanding, assuming compliance with all conditions for drawing
thereunder; 
  
 (f) The Lender may exercise and
enforce its rights and remedies under the Loan Documents; 
  
 (g) The Lender may without regard to any waste, adequacy of the security or solvency of the Borrower, apply for the appointment of a receiver of the Collateral, to which appointment the Borrower hereby consents,
whether or not foreclosure proceedings have been 

  

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commenced under the Security Documents and whether or not a foreclosure sale has occurred; and 
  
 (h) The Lender may exercise any other rights and remedies available to it by law or agreement. 

 
 Notwithstanding the foregoing, upon the occurrence of an Event of Default described in
Section 7.1(f) or (g), the Obligations shall be immediately due and payable automatically without presentment, demand, protest or notice of any kind. If the Lender sells any of the Collateral on credit, the Obligations will be reduced only to
the extent of payments actually received. If the purchaser fails to pay for the Collateral, the Lender may resell the Collateral and shall apply any proceeds actually received to the Obligations. 
  
 Section 7.3 Certain Notices. If notice to the Borrower of any intended
disposition of Collateral or any other intended action is required by law in a particular instance, such notice shall be deemed commercially reasonable if given (in the manner specified in Section 8.3) at least ten calendar days before the date
of intended disposition or other action. 
  
 ARTICLE VIII

  
 MISCELLANEOUS 
  
 Section 8.1 No Waiver; Cumulative Remedies; Compliance with Laws. No
failure or delay by the Lender in exercising any right, power or remedy under the Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy under the Loan Documents. The remedies provided in the Loan Documents are cumulative and not exclusive of any remedies provided by law. The Lender may comply with any applicable state or
federal law requirements in connection with a disposition of the Collateral and such compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 
  
 Section 8.2 Amendments, Etc. No amendment, modification, termination
or waiver of any provision of any Loan Document or consent to any departure by the Borrower therefrom or any release of a Security Interest shall be effective unless the same shall be in writing and signed by the Lender, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other
circumstances. 
  
 Section 8.3 Notices; Communication of
Confidential Information; Requests for Accounting. Except as otherwise expressly provided herein, all notices, requests, demands and other communications provided for under the Loan Documents shall be in writing and shall be (a) personally
delivered, (b) sent by first class United States mail, (c) sent by overnight courier of national reputation, (d) transmitted by telecopy, or (e) sent as electronic mail, in each case delivered or sent to the party to whom notice
is being given to the business address, telecopier number, or e mail address set forth below next to its signature or, as to each party, at such other 

  

 45 

 
business address, telecopier number, or e mail address as it may hereafter designate in writing to the other party pursuant to the terms of this Section. All
such notices, requests, demands and other communications shall be deemed to be an authenticated record communicated or given on (a) the date received if personally delivered, (b) when deposited in the mail if delivered by mail,
(c) the date delivered to the courier if delivered by overnight courier, or (d) the date of transmission if sent by telecopy or by e mail, except that notices or requests delivered to the Lender pursuant to any of the provisions of Article
II shall not be effective until received by the Lender. All notices, financial information, or other business records sent by either party to this Agreement may be transmitted, sent, or otherwise communicated via such medium as the sending party may
deem appropriate and commercially reasonable; provided, however, that the risk that the confidentiality or privacy of such notices, financial information, or other business records sent by either party may be compromised shall be borne
exclusively by the Borrower. All requests for an accounting under Section 9-210 of the UCC (i) shall be made in a writing signed by a Person authorized under Section 2.2(b), (ii) shall be personally delivered, sent by registered
or certified mail, return receipt requested, or by overnight courier of national reputation, (iii) shall be deemed to be sent when received by the Lender and (iv) shall otherwise comply with the requirements of Section 9-210. The
Borrower requests that the Lender respond to all such requests which on their face appear to come from an authorized individual and releases the Lender from any liability for so responding. The Borrower shall pay the Lender the maximum amount
allowed by law for responding to such requests. 
  
 Section 8.4
Further Documents. The Borrower will from time to time execute, deliver, endorse and authorize the filing of any and all instruments, documents, conveyances, assignments, security agreements, financing statements, control agreements and other
agreements and writings that the Lender may reasonably request in order to secure, protect, perfect or enforce the Security Interest or the Lender’s rights under the Loan Documents (but any failure to request or assure that the Borrower
executes, delivers, endorses or authorizes the filing of any such item shall not affect or impair the validity, sufficiency or enforceability of the Loan Documents and the Security Interest, regardless of whether any such item was or was not
executed, delivered or endorsed in a similar context or on a prior occasion). 
  
 Section 8.5 Costs and Expenses. The Borrower shall pay on demand all costs and expenses, including reasonable attorneys’ fees, incurred by the Lender in connection with the Obligations, this Agreement, the
Loan Documents, any Letter of Credit and any other document or agreement related hereto or thereto, and the transactions contemplated hereby, including all such costs, expenses and fees incurred in connection with the negotiation, preparation,
execution, amendment, administration, performance, collection and enforcement of the Obligations and all such documents and agreements and the creation, perfection, protection, satisfaction, foreclosure or enforcement of the Security Interest.

  
 Section 8.6 Indemnity. In addition to the payment of
expenses pursuant to Section 8.6, the Borrower shall indemnify, defend and hold harmless the Lender, and any of its participants, parent corporations, subsidiary corporations, affiliated corporations, successor corporations, and all present and
future officers, directors, employees, attorneys and agents of the foregoing (the “Indemnitees”) from and against any of the following (collectively, “Indemnified Liabilities”): 
  
 (i) Any and all transfer taxes, documentary taxes,
assessments or charges made by any governmental authority by reason of the execution and delivery of the Loan Documents or the making of the Advances; 
  

 46 

 (ii) Any claims, loss or damage to which any Indemnitee may be subjected if any
representation or warranty contained in Section 5.14 proves to be incorrect in any respect or as a result of any violation of the covenant contained in Section 6.12(b) ; and 
  
 (iii) Any and all other liabilities, losses, damages, penalties, judgments, suits, claims, costs and
expenses of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel) in connection with the foregoing and any other investigative, administrative or judicial proceedings, whether or not such Indemnitee shall be
designated a party thereto, which may be imposed on, incurred by or asserted against any such Indemnitee, in any manner related to or arising out of or in connection with the making of the Advances and the Loan Documents or the use or intended use
of the proceeds of the Advances. Notwithstanding the foregoing, the Borrower shall not be obligated to indemnify any Indemnitee for any Indemnified Liability caused by the gross negligence or willful misconduct of such Indemnitee. 
  
 If any investigative, judicial or administrative proceeding arising from any of the foregoing
is brought against any Indemnitee, upon such Indemnitee’s request, the Borrower, or counsel designated by the Borrower and satisfactory to the Indemnitee, will resist and defend such action, suit or proceeding to the extent and in the manner
directed by the Indemnitee, at the Borrower’s sole costs and expense. Each Indemnitee will use its best efforts to cooperate in the defense of any such action, suit or proceeding. If the foregoing undertaking to indemnify, defend and hold
harmless may be held to be unenforceable because it violates any law or public policy, the Borrower shall nevertheless make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. The Borrower’s obligation under this Section 8.6 shall survive the termination of this Agreement and the discharge of the Borrower’s other obligations hereunder. 
  
 Section 8.7 Participants. The Lender and its participants, if any, are
not partners or joint venturers, and the Lender shall not have any liability or responsibility for any obligation, act or omission of any of its participants. All rights and powers specifically conferred upon the Lender may be transferred or
delegated to any of the Lender’s participants, successors or assigns. 
  
 Section 8.8 Execution in Counterparts; Telefacsimile Execution. This Agreement and other Loan Documents may be executed in any number of counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally as effective as delivery of an original
executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart
shall not affect the validity, enforceability, and binding effect of this Agreement. 
  
 Section 8.9 Retention of Borrower’s Records. The Lender shall have no obligation to maintain any electronic records or any documents, schedules, invoices, agings, or other papers 

  

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delivered to the Lender by the Borrower or in connection with the Loan Documents for more than 30 days after receipt by the Lender. If there is a special
need to retain specific records, the Borrower must inform the Lender of its need to retain those records with particularity, which must be delivered in accordance with the notice provisions of Section 8.3 within 30 days of the Lender taking
control of same. 
  
 Section 8.10 Binding Effect; Assignment;
Complete Agreement; Sharing Information. The Loan Documents shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign
its rights thereunder or any interest therein without the Lender’s prior written consent. To the extent permitted by law, the Borrower waives and will not assert against any assignee any claims, defenses or set-offs which the Borrower could
assert against the Lender. This Agreement shall also bind all Persons who become a party to this Agreement as a borrower. This Agreement, together with the Loan Documents, comprises the complete and integrated agreement of the parties on the subject
matter hereof and supersedes all prior agreements, written or oral, on the subject matter hereof. To the extent that any provision of this Agreement contradicts other provisions of the Loan Documents, this Agreement shall control. Without limiting
the Lender’s right to share information regarding the Borrower and its Affiliates with the Lender’s participants, accountants, lawyers and other advisors, the Lender may share any and all information they may have in their possession
regarding the Borrower and its Affiliates, and the Borrower waives any right of confidentiality it may have with respect to such sharing of information. 
  
 Section 8.11 Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof. 
  
 Section 8.12 Headings. Article, Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

  
 Section 8.13 Governing Law; Jurisdiction, Venue. The
Loan Documents shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of California. The parties hereto hereby (i) consent to the personal jurisdiction of the state and federal courts
located in the State of California in connection with any controversy related to this Agreement; (ii) waive any argument that venue in any such forum is not convenient; (iii) agree that any litigation initiated by the Lender or the
Borrower in connection with this Agreement or the other Loan Documents may be venued in either the state or federal courts located in the County of Los Angeles, California and (iv) agree that a final judgment in any such suit, action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 Section 8.14 Arbitration. 
  
 (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and
controversies between or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in tort, 

  

 48 

 
contract or otherwise arising out of or relating to in any way this Agreement and their negotiation, execution, modification, extension, substitution,
formation, inducement, enforcement, default or termination. 
  
 (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in California selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal
Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties shall
mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the arbitration shall
be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to, as
applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Any party who fails or refuses to submit to arbitration following a demand by any
other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12
U.S.C. §91 or any similar applicable state law. 
  
 (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against collateral or real estate collateral; (ii) exercise self-help
remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after
the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including those arising from the exercise of the actions
detailed in sections (i), (ii) and (iii) of this paragraph. 
  
 (d) Arbitrator Qualifications and Powers. Any arbitration proceeding will be decided by a single arbitrator selected according to the Rules. The arbitrator will be a neutral attorney licensed in the State of
California or a neutral retired judge of the state or federal judiciary of California, in either case with a minimum of ten years experience in the substantive law applicable to the subject matter of the dispute to be arbitrated. The arbitrator will
determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s
discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all disputes in accordance with the substantive law of California and may
grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective any award. The arbitrator shall also have the power to award recovery of all costs and
fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil Procedure or other applicable law. Judgment
upon the award rendered by the arbitrator may be entered in any court having 

  

 49 

 
jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver
of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief. 
  
 (e) Discovery. In any arbitration proceeding discovery will be permitted in accordance with the
Rules. All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date and within 180 days of the filing of the dispute with the AAA. Any
requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no
alternative means for obtaining information is available. 
  
 (f) Expert Witnesses and Reports. If either party chooses to present an expert witness, Section 2034 of the Code of Civil Procedure of the State of California or any successor provision shall be applicable
to the arbitration whether or not the California Arbitration Act is deemed to apply to the arbitration. 
  
 (g) Payment of Arbitration Costs and Fees. The arbitrator shall award all costs and expenses of the arbitration proceeding.

  
 (h) Real Property Collateral; Judicial
Reference. Notwithstanding anything herein to the contrary, no dispute shall be submitted to arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless (i) the holder of
the deed of trust, mortgage, lien or security interest specifically elects in writing to proceed with the arbitration, or (ii) all parties to the arbitration waive any rights or benefits that might accrue to them by virtue of the single action
rule statute of California, thereby agreeing that all indebtedness and obligations of the parties, and all deeds of trust, mortgages, liens and security interests securing such indebtedness and obligations, shall remain fully valid and enforceable.
If any such dispute is not submitted to arbitration, the dispute shall be referred to a referee in accordance with California Code of Civil Procedure Section 638 et seq., and this general reference agreement is intended to be specifically
enforceable in accordance with said Section 638. A referee with the qualifications required herein for arbitrators shall be selected pursuant to the AAA’s selection procedures. Judgment upon the decision rendered by a referee shall be
entered in the court in which such proceeding was commenced in accordance with California Code of Civil Procedure Sections 644 and 645. 
  
 (i) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to
conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by
a party required in the ordinary course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most directly related to the
Agreement or the subject matter of the dispute shall control. This arbitration provision shall survive termination, amendment or expiration of this Agreement or any relationship between the parties. 
  

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intentionally left blank.] 
  

 51 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized as of the date first above written. 
  

									
	 Provena Foods Inc.
 5010 Eucalyptus
Avenue
 Chino, California 91710
	 	 	 	PROVENA FOODS INC.
	 Telecopier:
	 	 (909) 627-7315
	 	 	 	 By:
	 	 /s/ Thomas J. Mulroney

	 Attention: Thomas J. Mulroney
	 	 	 	 Name:
	 	 Thomas J. Mulroney

	 e-mail: provenafds@aol.com
	 	 	 	 Title:
	 	 Chief Financial Officer

			
	 Wells Fargo Business Credit
 245 South Los
Robles Avenue, Suite 700
 Pasadena, California 91101
 Telecopier:
(626) 844-9063
 Attention: Tony S. Lee
	 	 	 	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, acting through its Wells
 Fargo Business Credit operating division

	 e-mail: tony.s.lee@wellsfargo.com
	 	 	 	 By:
	 	 /s/ Angelo Samperisi

	 	 	 	 	 	 	 Name:
	 	 Angelo Samperisi

	 	 	 	 	 	 	 Title:
	 	 Vice President

  

 S-1 

  
 Table of Exhibits and
Schedules 
  

			
	 Exhibit A
	  	Form of Revolving Note
		
	 Exhibit B
	  	Compliance Certificate
		
	 Exhibit C
	  	Premises
		
	 Schedule 5.1
	  	Trade Names, Chief Executive Office, Principal Place of Business, and Locations of Collateral
		
	 Schedule 5.2
	  	Capitalization and Organizational Chart
		
	 Schedule 5.5
	  	Subsidiaries
		
	 Schedule 5.7
	  	Litigation Matters
		
	 Schedule 5.11
	  	Intellectual Property Disclosures
		
	 Schedule 5.14
	  	Environmental Matters
		
	 Schedule 6.3
	  	Permitted Liens
		
	 Schedule 6.4
	  	Permitted Indebtedness and Guaranties

  
 Exhibit A to Credit and
Security Agreement 
  
 REVOLVING NOTE 
  

			
	 $6,000,000
	  	November 29, 2005

  
 For value received,
the undersigned, PROVENA FOODS, INC., a California corporation (the “Borrower”), hereby promises to pay on the Termination Date under the Credit Agreement (defined below), to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (the
“Lender”), acting through its Wells Fargo Business Credit operating division, at its office in 245 South Los Robles Avenue, Suite 700, Pasadena, California 91101, or at any other place designated at any time by the holder hereof, in lawful
money of the United States of America and in immediately available funds, the principal sum of Six Million Dollars ($6,000,000) or the aggregate unpaid principal amount of all Revolving Advances made by the Lender to the Borrower under the Credit
Agreement (defined below) together with interest on the principal amount hereunder remaining unpaid from time to time, computed on the basis of the actual number of days elapsed and a 360-day year, from the date hereof until this Note is fully paid
at the rate from time to time in effect under the Credit and Security Agreement dated the same date as this Note (the “Credit Agreement”) by and between the Lender and the Borrower. The principal hereof and interest accruing thereon shall
be due and payable as provided in the Credit Agreement. This Note may be prepaid only in accordance with the Credit Agreement. 
  
 This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among other things, for acceleration hereof. This Note is the
Revolving Note referred to in the Credit Agreement. This Note is secured, among other things, pursuant to the Credit Agreement and the Security Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements. 
  
 The Borrower shall pay all costs of collection, including reasonable attorneys’ fees and legal expenses if this Note is not paid when due, whether or not legal proceedings are commenced. 
  
 Presentment or other demand for payment, notice of dishonor and protest are
expressly waived. 
  

			
	 PROVENA FOODS, INC.

		
	 By:
	 	 
	 Name:
	 	 Thomas J. Mulroney

	 Its:
	 	 Chief Financial Officer

  

 A-1 

  
 Exhibit B to Credit and
Security Agreement 
  
 COMPLIANCE CERTIFICATE

  

			
	 To:
	  	Wells Fargo Business Credit
	 Date:
	  	November 29, 2005
	 Subject:
	  	Financial Statements

  
 In accordance with our
Credit and Security Agreement dated as of November 29 2005 (the “Credit Agreement”), attached are the financial statements of Provena Foods Inc. (the “Borrower”) as of and for November 29, 2005 (the “Reporting
Date”) and the year-to-date period then ended (the “Current Financials”). All terms used in this certificate have the meanings given in the Credit Agreement. 
  
 I certify that the Current Financials have been prepared in accordance with GAAP, subject to year-end audit adjustments, and
fairly present the Borrower’s financial condition as of the date thereof. 
  
 I further hereby certify as follows: Events of Default. (Check one): 
  

	 	 ̈	The undersigned does not have knowledge of the occurrence of a Default or Event of Default under the Credit Agreement except as previously reported in writing to the Lender.

  

	 	 ̈	The undersigned has knowledge of the occurrence of a Default or Event of Default under the Credit Agreement not previously reported in writing to the Lender and attached hereto is a
statement of the facts with respect to thereto. The Borrower acknowledges that pursuant to 2.8(d) of the Credit Agreement, the Lender may impose the Default Rate at any time during the resulting Default Period. 

  
 Material Adverse Change in Litigation Matters of the Borrower. I
further hereby certify as follows (check one): 
  

	 	 ̈	The undersigned has no knowledge of any material adverse change to the litigation exposure of the Borrower or any of its Guarantors or Affiliates. 

  

	 	 ̈	The undersigned has knowledge of material adverse changes to the litigation exposure of the Borrower or any of its Guarantors or Affiliates not previously disclosed in Schedule 5.7.
Attached to this Certificate is a statement of the facts with respect thereto. 

  
 Financial Covenants. I further hereby certify as follows (check and complete each of the following): 
  
 1. Minimum Book Net Worth. Pursuant to Section 6.2(a) of the Credit Agreement, as of the Reporting Date, the Borrower’s Book Net Worth
was $                    , which 

  

 B-1 

 
 ̈ satisfies  ̈ does not satisfy the requirement that such amount be not less than the applicable amount set forth in Section 6.2(a) of the Credit Agreement. 
  
 2. Minimum Net Income/Maximum Net Loss. Pursuant to
Section 6.2(b) of the Credit Agreement, the Borrower’s Net Income/Net Loss for the                      period ending on the
Reporting Date, was $                    , which  ̈ satisfies  ̈ does not satisfy the requirement that such amount be not less than the applicable amount set forth
in Section 6.2(b) of the Credit Agreement 
  
 3. Minimum
Debt Service Coverage Ratio. Pursuant to Section 6.2(c) of the Credit Agreement, as of the Reporting Date, the Borrower’s Debt Service Coverage Ratio was
                     to 1.00, which  ̈ satisfies  ̈ does not satisfy the requirement that such ratio be no less than the applicable ratio set forth in Section 6.2(c) of
the Credit Agreement. 
  
 4. Capital Expenditures. Pursuant
to Section 6.2(d) of the Credit Agreement, for the year-to-date period ending on the Reporting Date, the Borrower has expended or contracted to expend during the year ended
                    , 200  , for Capital Expenditures,
$                     in the aggregate, which  ̈ satisfies  ̈ does not satisfy the requirement that such expenditures not exceed
$                     in the aggregate during such year. 
  
 5. Salaries. As of the Reporting Date, the Borrower has not paid excessive or unreasonable salaries, bonuses,
commissions, consultant fees or other compensation, or increased the salary, bonus, commissions, consultant fees or other compensation of any Director, Officer or consultant, or any member of their families, by more than 10% over the amount paid in
the Borrower’s previous fiscal year, either individually or for all such persons in the aggregate, and has not paid any increase from any source other than profits earned in the year of payment, and as a consequence  ̈ is  ̈ is not in compliance with Section 6.8 of
the Credit Agreement. 
  
 Attached hereto are all relevant facts
in reasonable detail to evidence, and the computations of the financial covenants referred to above. These computations were made in accordance with GAAP. 
  

			
	PROVENA FOODS INC.
		
	 By:
	 	 
	 Its
	 	 Chief Financial Officer

  

 B-2 

  
 Exhibit C to Credit and
Security Agreement 
  
 PREMISES 
  
 The Premises referred to in the Credit and Security Agreement are legally
described as follows: 
  
 Locations where the Borrower conducts its business or
has any rights of possession: 
  
 5010 Eucalyptus Ave., Chino, CA 91710

  
 5060 Eucalyptus Ave., Chino, CA 91710 
  
 251 Darcy Parkway, Lathrop, CA 95330 
  

 C-1 

  
 Schedule 5.1 to Credit and
Security Agreement 
  
 TRADE NAMES, CHIEF EXECUTIVE
OFFICE, PRINCIPAL PLACE OF BUSINESS, 
 AND LOCATIONS OF COLLATERAL 
  
 TRADE NAMES 
  
 Swiss American Sausage Co. 
  
 Royal Angelus Macaroni Co. 
  
 Economy Services, Inc. 
  
 Sav-On Food Co., Inc. 
  
 Royal Brands, Inc. 
  
 Provena Foods Inc. 
  
 CHIEF EXECUTIVE OFFICE/PRINCIPAL PLACE OF BUSINESS 

 
 5010 Eucalyptus Ave., Chino, CA 91710 
  
 OTHER INVENTORY AND EQUIPMENT LOCATIONS 
  
 5010 Eucalyptus Ave., Chino, Ca 91710 
  
 5060 Eucalyptus Ave., Chino, CA 91710 
  
 251 Darcy Parkway, Lathrop, CA 95330 
  

 S-5.1-1 

  
 Schedule 5.2 to Credit and
Security Agreement 
  
 CAPITALIZATION AND ORGANIZATIONAL
CHART 
  

							
	 Holder

	  	Type of Rights/Stock

	  	No. of shares (after
exercise of all rights
to acquire shares)

	  	Percent interest on a
fully diluted basis

	 	  	 	  	 	  	 
	 	  	 	  	 	  	 

  
 Attach organizational chart showing the ownership structure of all Subsidiaries of the Borrower. 
  

 S-5.2-1 

  
 Schedule 5.5 to Credit and
Security Agreement 
  
 SUBSIDIARIES 

 
 None 
  

 S-5.5-1 

  
 Schedule 5.7 to Credit and
Security Agreement 
  
 LITIGATION MATTERS IN EXCESS OF
$10,000.00 
  
 None other than Workers’ Compensation
claims which are covered by insurance. 
  

 S-5.7-1 

  
 Schedule 5.11 to Credit
and Security Agreement 
  
 INTELLECTUAL PROPERTY
DISCLOSURES 
  
 None 
  

 S-5.11-1 

  
 Schedule 5.14 to Credit
and Security Agreement 
  
 ENVIRONMENTAL MATTERS

  
 None as evidenced by Phase I site assessments:

  
 251 Darcy Parkway, Lathrop, CA dated June 20, 2005

  
 5101 & 5060 Eucalyptus Ave., Chino, CA dated
July 21, 1998 
  

 S-5.14-1 

  
 Schedule 6.3 to Credit and
Security Agreement 
  
 PERMITTED LIENS

  

									
	 Creditor

	  	 Collateral

	  	Jurisdiction

	  	Filing Date

	  	Filing No.

	 GE Capital Public Finance, Inc.
	  	Pavan long good line.	  	 	  	October 31, 2003	  	 

  

 S-6.3-1 

  
 Schedule 6.4 to Credit and
Security Agreement 
  
 Permitted Indebtedness and Guaranties

  
 INDEBTEDNESS 
  

										
	 Creditor

	  	Principal
Amount

	  	Maturity Date

	  	Monthly
Payment

	  	Collateral

	 GE Capital Public Finance, Inc.
	  	$	866,750	  	November 1, 2008	  	16,221.97	  	Pavan T.H.T. “Inox” very
high temperature long-
cut pasta line.

  
 GUARANTIES

  

					
	 Primary Obligor

	  	Amount and Description
of Obligation Guaranteed

	  	Beneficiary of Guaranty

	 None
	  	 	  	 

  

 S-6.4-1

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