Document:

Amendment No. 1 to the Royal Caribbean Cruises Ltd. 2008 Equity Incentive Plan

 Exhibit 10.3
 AMENDMENT NO. 1 TO
THE
 ROYAL CARIBBEAN CRUISES LTD. 2008 EQUITY INCENTIVE PLAN
  

 

WHEREAS, Royal Caribbean Cruises Ltd. (the "Company") has adopted the 2008 Equity Incentive Plan (the "Plan");
and
  
 WHEREAS, the maximum number
of shares of the common stock of the Company, par value $.01 (the "Shares"), that may be granted under the Plan is currently 5,000,000; and 
  

WHEREAS, the Plan reserves to the Compensation Committee of the Board of Directors (the "Committee") the authority to
amend the Plan to materially increase the number of Shares issued thereunder, subject to the approval of the Company's shareholders; and 
  

WHEREAS, subject to shareholder approval, the Committee has approved an amendment to the Plan to increase by 6,000,000
the maximum number of shares that may be granted under the Plan; and
  

WHEREAS, the shareholders of the Company approved an additional 6,000,000 shares for issuance under the Plan at the
Annual Meeting of Shareholders on May 20, 2010; and 
  

WHEREAS, Capitalized terms used herein and not otherwise defined, shall have the meaning prescribed in the
Plan.
  
 
	  
	 NOW, THEREFORE, the Plan is hereby amended as
follows:

  

Section 4(A) of the Plan is hereby deleted in its entirety and the following paragraph is inserted in lieu
thereof:
 (A)            Subject to the following provisions of this Section 4 and to the provisions of
Section 7, the maximum number of Shares with respect to which any Awards may be granted, including Awards of Incentive Options as defined in Section 5(A)(i), during the term of the Plan shall be 11,000,000. During any calendar
year, no one individual shall be granted, under this Plan, Awards with respect to more than 500,000 Shares. Shares underlying Substitute Awards shall not reduce the number of Shares remaining available for issuance hereunder.

 
  

 
 
 IN
WITNESS WHEREOF, this Amendment No. 1 to the Royal Caribbean Cruises Ltd. 2008 Equity Incentive Plan is being executed as of the 20th day of May, 2010.

 
 
	  
	 ROYAL CARIBBEAN CRUISES LTD.

 
  
 
	 Attest:   /s/ Bradley H. Stein
	 By:  /s/ Maria R. Del Busto

	  
	 Bradley H. Stein

Senior Vice President,

General Counsel and Secretary 
 	 Maria R. Del Busto

Vice President, Chief Human

Resources OfficerRevolving Credit Agreement

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

Exhibit 10.1 

Execution Version 

REVOLVING CREDIT AGREEMENT 

dated as of August 3, 2007 

among 

WATSCO, INC., 

as Borrower, 

THE LENDERS FROM TIME TO TIME PARTY HERETO, 

BANK OF AMERICA, N.A., 

as Administrative Agent, 

Swingline Lender and Issuing Bank, 

J.P. MORGAN SECURITIES, INC., 

as Syndication Agent, 

and 

MIZUHO CORPORATE BANK (USA), 

SUNTRUST BANK, 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Co-Documentation Agents 
  

 
 BANC OF AMERICA SECURITIES,
LLC, 
 as Sole Lead Arranger and Sole Book Manager 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	 ARTICLE I
	  	DEFINITIONS; CONSTRUCTION	  	
			
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Classifications of Loans and Borrowings
	  	19
	 Section 1.3
	  	 Accounting Terms and Determination
	  	20
	 Section 1.4
	  	 Terms Generally
	  	20
			
	 ARTICLE II
	  	AMOUNT AND TERMS OF THE COMMITMENTS	  	
			
	 Section 2.1
	  	 General Description of Facilities
	  	20
	 Section 2.2
	  	 Revolving Loans
	  	21
	 Section 2.3
	  	 Procedure for Revolving Borrowings
	  	21
	 Section 2.4
	  	 Swingline Loans
	  	21
	 Section 2.5
	  	 Procedure for Swingline Borrowing; Etc.
	  	21
	 Section 2.6
	  	 Funding of Borrowings.
	  	22
	 Section 2.7
	  	 Interest Elections.
	  	23
	 Section 2.8
	  	 Optional Reduction and Termination of Commitments; Extension of Commitments; Increase of

Aggregate Revolving Commitments; Additional Lenders
	  	24
	 Section 2.9
	  	 Repayment of Loans.
	  	25
	 Section 2.10
	  	 Evidence of Indebtedness.
	  	25
	 Section 2.11
	  	 Prepayments.
	  	26
	 Section 2.12
	  	 Interest on Loans.
	  	27
	 Section 2.13
	  	 Fees.
	  	27
	 Section 2.14
	  	 Computation of Interest and Fees
	  	28
	 Section 2.15
	  	 Inability to Determine Interest Rates
	  	28
	 Section 2.16
	  	 Illegality
	  	29
	 Section 2.17
	  	 Increased Costs.
	  	29
	 Section 2.18
	  	 Funding Indemnity
	  	30
	 Section 2.19
	  	 Taxes.
	  	30
	 Section 2.20
	  	 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.
	  	31
	 Section 2.21
	  	 Mitigation of Obligations; Replacement of Lenders.
	  	33
	 Section 2.22
	  	 Letters of Credit.
	  	33
	 Section 2.23
	  	 Extension of Scheduled Commitment Termination Date
	  	37
			
	 ARTICLE III
	  	CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT	  	
			
	 Section 3.1
	  	 Conditions To Effectiveness
	  	39
	 Section 3.2
	  	 Each Credit Event
	  	40
	 Section 3.3
	  	 Delivery of Documents
	  	41
			
	 ARTICLE IV
	  	REPRESENTATIONS AND WARRANTIES	  	
			
	 Section 4.1
	  	 Existence; Power
	  	41
	 Section 4.2
	  	 Organizational Power; Authorization
	  	41
	 Section 4.3
	  	 Governmental Approvals; No Conflicts
	  	41
	 Section 4.4
	  	 Financial Statements
	  	42
	 Section 4.5
	  	 Litigation and Environmental Matters.
	  	42
	 Section 4.6
	  	 Compliance with Laws and Agreements
	  	42

  

 -i- 

					
	 Section 4.7
	  	 Investment Company Act, Etc
	  	42
	 Section 4.8
	  	 Taxes
	  	43
	 Section 4.9
	  	 Margin Regulations
	  	43
	 Section 4.10
	  	 ERISA
	  	43
	 Section 4.11
	  	 Ownership of Property.
	  	43
	 Section 4.12
	  	 Disclosure
	  	43
	 Section 4.13
	  	 Labor Relations
	  	43
	 Section 4.14
	  	 Binding Effect
	  	44
	 Section 4.15
	  	 No Default
	  	44
	 Section 4.16
	  	 Solvency
	  	44
	 Section 4.17
	  	 Senior Debt
	  	44
	 Section 4.18
	  	 Principal Places of Business and Subsidiaries
	  	44
	 Section 4.19
	  	 Insurance
	  	44
			
	 ARTICLE V
	  	AFFIRMATIVE COVENANTS	  	
			
	 Section 5.1
	  	 Financial Statements and Other Information
	  	44
	 Section 5.2
	  	 Notices of Material Events
	  	46
	 Section 5.3
	  	 Existence; Conduct of Business
	  	47
	 Section 5.4
	  	 Compliance with Laws, Etc
	  	47
	 Section 5.5
	  	 Payment of Obligations
	  	47
	 Section 5.6
	  	 Books and Records
	  	47
	 Section 5.7
	  	 Visitation, Inspection, Etc
	  	47
	 Section 5.8
	  	 Maintenance of Properties; Insurance
	  	47
	 Section 5.9
	  	 Use of Proceeds and Letters of Credit
	  	48
	 Section 5.10
	  	 Additional Subsidiaries
	  	48
	 Section 5.11
	  	 Environmental Laws
	  	48
	 Section 5.12
	  	 Gemaire Caribe
	  	48
			
	 ARTICLE VI
	  	FINANCIAL COVENANTS	  	
			
	 Section 6.1
	  	 Leverage Ratio
	  	49
	 Section 6.2
	  	 Interest Coverage Ratio
	  	49
			
	 ARTICLE VII
	  	NEGATIVE COVENANTS	  	
			
	 Section 7.1
	  	 Indebtedness
	  	49
	 Section 7.2
	  	 Negative Pledge
	  	50
	 Section 7.3
	  	 Fundamental Changes.
	  	51
	 Section 7.4
	  	 Investments, Loans, Capital Expenditures, Etc.
	  	51
	 Section 7.5
	  	 Restricted Payments
	  	53
	 Section 7.6
	  	 Sale of Assets
	  	53
	 Section 7.7
	  	 Transactions with Affiliates
	  	54
	 Section 7.8
	  	 Restrictive Agreements
	  	54
	 Section 7.9
	  	 Sale and Leaseback Transactions
	  	54
	 Section 7.10
	  	 Hedging Agreements
	  	54
	 Section 7.11
	  	 Amendment to Material Documents
	  	55
	 Section 7.12
	  	 Accounting Changes
	  	55
	 Section 7.13
	  	 [Reserved]
	  	55

  

 -ii- 

					
	 Section 7.14
	  	 Use of Proceeds
	  	55
	 Section 7.15
	  	 Prepayments
	  	55
	 Section 7.16
	  	 Amendments to Material Indebtedness Agreements
	  	55
			
	 ARTICLE VIII
	  	EVENTS OF DEFAULT	  	
			
	 Section 8.1
	  	 Events of Default
	  	55
			
	 ARTICLE IX
	  	THE ADMINISTRATIVE AGENT	  	
			
	 Section 9.1
	  	 Appointment and Authority
	  	58
	 Section 9.2
	  	 Delegation of Duties
	  	58
	 Section 9.3
	  	 Non-Reliance on Administrative Agent and Other Lenders
	  	58
	 Section 9.4
	  	 Exculpatory Provisions
	  	58
	 Section 9.5
	  	 Reliance by Administrative Agent
	  	59
	 Section 9.6
	  	 The Administrative Agent in its Individual Capacity
	  	59
	 Section 9.7
	  	 Resignation of Administrative Agent
	  	60
	 Section 9.8
	  	 No Other Duties, etc
	  	60
			
	 ARTICLE X
	  	MISCELLANEOUS	  	
			
	 Section 10.1
	  	 Notices; Electronic Communications
	  	60
	 Section 10.2
	  	 Waiver; Amendments.
	  	63
	 Section 10.3
	  	 Expenses; Indemnification.
	  	64
	 Section 10.4
	  	 Successors and Assigns.
	  	66
	 Section 10.5
	  	 Governing Law; Jurisdiction; Consent to Service of Process.
	  	69
	 Section 10.6
	  	 Waiver of Jury Trial
	  	70
	 Section 10.7
	  	 Right of Setoff
	  	70
	 Section 10.8
	  	 Counterparts; Effectiveness of Agreement; Integration
	  	70
	 Section 10.9
	  	 Survival
	  	70
	 Section 10.10
	  	 Severability
	  	71
	 Section 10.11
	  	 Confidentiality
	  	71
	 Section 10.12
	  	 Interest Rate Limitation
	  	71
	 Section 10.13
	  	 PATRIOT Act Notice
	  	72
	 Section 10.14
	  	 No Advisory or Fiduciary Responsibility
	  	72

  

 -iii- 

 Schedules 
  

					
	 Schedule I
	  	-	  	Pricing Grid
	 Schedule 2.22
	  	-	  	Existing Letters of Credit
	 Schedule 4.5 (a)
	  	-	  	Pending Litigation
	 Schedule 4.5 (b)
	  	-	  	Environmental Matters
	 Schedule 4.18
	  	-	  	Principal Places of Business and Subsidiaries
	 Schedule 7.1
	  	-	  	Outstanding Indebtedness
	 Schedule 7.2
	  	-	  	Existing Liens
	 Schedule 7.4
	  	-	  	Existing Investments
	 Schedule 7.8
	  	-	  	Restrictive Agreements

Exhibits 
  

					
	 Exhibit A
	 	-	  	Revolving Credit Note
	 Exhibit B
	 	-	  	Swingline Note
	 Exhibit C
	 	-	  	Form of Assignment and Assumption
	 Exhibit D
	 	-	  	Form of Subsidiary Guarantee Agreement
	 Annex I-D
	 	-	  	To the Subsidiary Guarantee Agreement
	 Exhibit E
	 	-	  	Form of Indemnity, Subrogation and Contribution Agreement
	 Annex I-E
	 	-	  	To the Indemnity, Subrogation and Contribution Agreement
			
	 Exhibit 2.3
	 	-	  	Notice of Revolving Borrowing
	 Exhibit 2.5
	 	-	  	Notice of Swingline Borrowing
	 Exhibit 2.7
	 	-	  	Form of Continuation/Conversion
	 Exhibit 3.1(b) (iv)
	 	-	  	Form of Secretary’s Certificate
	 Exhibit 3.1(b) (vii)
	 	-	  	Form of Officer’s Certificate
	 Exhibit 5.1(c)
	 	-	  	Form of Covenant Compliance Certificate

  

 -iv- 

 REVOLVING CREDIT AGREEMENT 

THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and entered into as of August 3, 2007, by
and among WATSCO, INC., a Florida corporation (the “Borrower”), the several banks and other financial institutions from time to time party hereto (the “Lenders”), and BANK OF AMERICA,
N.A., a national banking association, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower has requested that the Lenders establish a $300,000,000 senior revolving credit facility with a $25,000,000
swingline and a $50,000,000 letter of credit sub-facility thereunder for the Borrower; 
 WHEREAS, subject to the terms
and conditions of this Agreement, the Lenders severally, to the extent of their respective Commitments, are willing to establish the requested revolving credit facility for the Borrower. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower, the Lenders and the
Administrative Agent agree as follows: 
 ARTICLE I 

DEFINITIONS; CONSTRUCTION 

Section 1.1 Definitions. In addition to the other terms defined herein, the following terms used herein shall have the
meanings herein specified (to be equally applicable to both the singular and plural forms of the terms defined): 

“Act” shall mean the USA PATRIOT Act (Pub. L. No. 107-56, 115 Stat. 272 (2001)). 

“Additional Commitment Lender” shall have the meaning assigned to such term in Section 2.23.

 “Additional Lender” shall have the meaning assigned to such term in Section 2.8.

 “Additional Revolving Commitment Amount” shall have the meaning assigned to such term in
Section 2.8. 
 “Adjusted LIBO Rate” shall mean, with respect to each Interest Period for a
Eurodollar Borrowing, the rate per annum obtained by dividing (a) LIBOR for such Interest Period by (b) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. 

“Administrative Agent” shall have the meaning assigned to such term in the opening paragraph hereof. 

“Administrative Agent’s Office” shall mean the Administrative Agent’s address and, as appropriate,
account as set forth in Section 10.1, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders. 

 “Administrative Questionnaire” shall mean, with respect to each
Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative Agent duly completed by such Lender. 

“Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through one or more
intermediaries, Controls, is Controlled by, or is under common Control with, such Person. 
 “Aggregate Revolving
Commitments” shall mean the sum of the Revolving Commitments of all Lenders at any time outstanding. On the Closing Date, the Aggregate Revolving Commitments (including the Swingline Commitment) equal $300,000,000. 

“Applicable Lending Office” shall mean, for each Lender and for each Type of Loan, the “Lending
Office” of such Lender (or an Affiliate of such Lender) designated for such Type of Loan in the Administrative Questionnaire submitted by such Lender or such other office of such Lender (or an Affiliate of such Lender) as such Lender may
from time to time specify to the Administrative Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained. 

“Applicable Margin” shall mean, as of any date, with respect to all Eurodollar Borrowings and Base Rate
Borrowings outstanding on such date, the percentage per annum designated in the “Pricing Grid” attached hereto as Schedule I as applicable to Eurodollar Borrowings or Base Rate Borrowings, as the case may be, based on the
Borrower’s Leverage Ratio. The Applicable Margin for Eurodollar Borrowings shall initially be 0.5000% and the Applicable Margin for Base Rate Borrowings shall initially be 0.000%; provided, however, that upon delivery to the
Administrative Agent of the financial statements required by Section 5.1(a) or (b) and the Compliance Certificate required by Section 5.1(c) for the fiscal quarter ended September 30, 2007 and for each fiscal
quarter thereafter, the Applicable Margin shall be reset to the percentage designated in Schedule I based on the Borrower’s Leverage Ratio for the preceding four fiscal quarter period then ending, measured quarterly, such Applicable
Margin being effective as of the second Business Day following the date that the Administrative Agent receives such financial statements and certificate; provided further, however, that if at any time the Borrower shall have failed
timely to deliver such financial statements and Compliance Certificate, the Applicable Margin for Eurodollar Borrowings shall be 1.125% and the Applicable Margin for Base Rate Borrowings shall be 0.125% until such time as such financial statements
and Compliance Certificate are delivered, at which time the Applicable Margin shall be determined as provided above. 

“Applicable Percentage” shall mean, as of any date, with respect to the commitment fee, the percentage per annum
designated in the “Pricing Grid” attached hereto as Schedule I based on the Borrower’s Leverage Ratio. The Applicable Percentage shall initially be 0.1000%; provided, however, that upon delivery to the
Administrative Agent of the financial statements required by Section 5.1(a) or (b) and the Compliance Certificate required by Section 5.1(c) for the fiscal quarter September 30, 2007 and for each fiscal
quarter thereafter, the Applicable Percentage shall be reset to the percentage designated in Schedule I based on the Borrower’s Leverage Ratio for the preceding four fiscal quarter period then ending, measured quarterly, such Applicable
Percentage being effective as of the second Business Day following the date that the Administrative Agent receives such financial statements and certificate; provided further, however, that if at any time the Borrower shall have
failed timely to deliver such financial statements and Compliance Certificate, the Applicable Percentage shall be 0.2000% until such time as such financial statements and Compliance Certificate are delivered, at which time the Applicable Percentage
shall be determined as provided above. 
  

 2 

 “Approved Fund” means any Fund that is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Assignment and Assumption” shall mean an Assignment and Assumption entered into by a Lender and an assignee
(with the consent of any party whose consent is required by Section 10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit C attached hereto or any other form approved by the Administrative Agent. 

“Availability Period” shall mean (a) in case of Revolving Borrowings, the period from the Closing Date to
the Commitment Termination Date, and (b) in case of Swingline Borrowings, the period from the Closing Date to the Swingline Termination Date. 

“Base Rate” shall mean the higher of (a) the per annum rate which the Administrative Agent publicly
announces from time to time to be its prime lending rate, as in effect from time to time, and (b) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent (0.50%). The Administrative Agent’s prime lending
rate is a reference rate and does not necessarily represent the lowest or best rate charged to customers. The Administrative Agent may make commercial loans or other loans at rates of interest at, above or below the Administrative Agent’s prime
lending rate. Each change in the Administrative Agent’s prime lending rate shall be effective from and including the date such change is publicly announced as being effective. 

“Borrower” shall have the meaning assigned to such term in the introductory paragraph hereof. 

“Borrowing” shall mean a borrowing consisting of (a) Loans of the same Class and Type, made, converted or
continued on the same date and, in case of Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a Swingline Loan. 

“Business Day” shall mean (a) any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and (b) if such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a
conversion of or into, or an Interest Period for, a Eurodollar Loan or a notice with respect to any of the foregoing, any day on which dealings in Dollars are carried on in the London interbank market. 

“Capital Expenditures” shall mean for any period, without duplication, (a) the additions to property, plant
and equipment and other capital expenditures of the Borrower and its Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the Borrower and its Subsidiaries for such period prepared in accordance with GAAP and
(b) Capital Lease Obligations incurred by the Borrower and its Subsidiaries during such period. 
 “Capital
Lease Obligations” of any Person shall mean all obligations of such Person to pay rent or other amounts under any lease (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Capital Stock” shall mean (a) in the case of a corporation, capital stock, (b) in the case of an
association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in
the case of a limited liability company, membership interests and 
  

 3 

 
(e) 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. 

“Change in Control” shall mean, at any time: 

(a) With respect to the Borrower, 

(i) any “person” or “group” (each as used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange
Act of 1934) other than Albert Nahmad, Alna Capital Associates or a trust or other entity controlled by either of them or one of their Affiliates (each an “Existing Control Group”) either (A) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of Voting Stock of the Borrower (or securities convertible into or exchangeable for such Voting Stock) representing forty percent (40%) or
more of the combined voting power of all Voting Stock of the Borrower (on a fully diluted basis) or (B) otherwise has the ability, directly or indirectly, to elect a majority of the board of directors of the Borrower (provided, that if an event
described in this clause (i) shall occur solely by reason of the death of one or more members of the Existing Control Group, then a “Change of Control” shall not be deemed to have occurred so long as the Voting Stock of the decedent
is owned of record by the estate or immediate family of such decedent); 
 (ii) during any period of up to
twenty-four (24) consecutive months, commencing on the Closing Date, individuals who at the beginning of such twenty-four (24)-month period were directors of the Borrower shall cease for any reason (other than the death, disability or
retirement of a director or of an officer of the Borrower that is serving as a director at such time so long as another officer of the Borrower replaces such Person as a director) to constitute a majority of the board of directors of the Borrower;
or 
 (iii) any Person or two or more Persons acting in concert other than the Existing Control Group shall have
acquired by contract or otherwise, or shall have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence on the management or policies of the Borrower;
or 
 (b) with respect to any Major Subsidiary, 

(i) the Borrower shall cease to own, directly or indirectly, at least 100% of the Voting Stock of each currently existing
Major Subsidiary or any other Subsidiary that is or becomes a Major Subsidiary after the date hereof; or 
 (ii)
any Person or two or more Persons acting in concert other than the Borrower shall have acquired by contract or otherwise, or shall have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly
or indirectly, a controlling influence on the management or policies of such Major Subsidiary. 
 “Change in
Law” shall mean (a) the adoption of any applicable law, rule or regulation after the date of this Agreement, (b) any change in any applicable law, rule or regulation, or any change in the interpretation or application thereof,
by any Governmental Authority after the date of this Agreement, or (c) compliance by any Lender (or its Applicable Lending Office) or the Issuing Bank (or for purposes of Section 2.17(b), by such Lender’s or the Issuing
Bank’s holding company, if applicable) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 

 

 4 

 “Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans and when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment or a Swingline Commitment. 

“Closing Date” shall mean the date on which the conditions precedent set forth in Section 3.1 and
Section 3.2 have been satisfied or waived in accordance with Section 10.2. 

“Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time. 

“Commitment” shall mean a Revolving Commitment or a Swingline Commitment or any combination thereof (as the
context shall permit or require). 
 “Commitment Termination Date” shall mean the earliest of
(a) the Scheduled Commitment Termination Date (as the same may be extended by Section 2.23), (b) the date on which the Revolving Commitments are terminated pursuant to Section 2.8 or (c) the date on which all
amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise); provided, however, that with respect to any Non-Extending Lender, the Commitment
Termination Date of such Non-Extending Lender’s Commitment shall be the Existing Scheduled Commitment Termination Date notwithstanding the extension of Commitments by any other Lender pursuant to Section 2.23. 

“Compliance Certificate” shall have the meaning assigned to such term in Section 5.1(c). 

“Consolidated EBIT” shall mean, for the Borrower and its Subsidiaries for any period ending on the date of
computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense,
(ii) income tax expense and (iii) plus losses (or minus gains) related to discontinued operations of Dunhill; provided, however, that with respect to an acquisition that is accounted for as a “purchase”, for the
period of four full consecutive fiscal quarters of the Borrower ending next following the date of such acquisition, “Consolidated EBIT” shall include the results of operations of the Person or assets so acquired, which amounts shall
be determined on a historical pro forma basis as if such acquisition had been consummated as a “pooling of interests”. 

“Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries for any period ending on the date of
computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense,
(ii) income tax expense, (iii) depreciation and amortization (including non-cash, stock based compensation) and (iv) plus losses (or minus gains) related to discontinued operations of Dunhill; provided, however, that
with respect to an acquisition that is accounted for as a “purchase”, for the period of four full consecutive fiscal quarters of the Borrower ending next following the date of such acquisition, “Consolidated EBITDA” shall
include the results of operations of the Person or assets so acquired, which amounts shall be determined on a historical pro forma basis as if such acquisition had been consummated as a “pooling of interests”. 

 

 5 

 “Consolidated Interest Expense” shall mean, for the Borrower and its
Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the sum of (a) total cash interest expense, including without limitation, the interest component of any payments
in respect of Capital Lease Obligations during such period (whether or not actually paid during such period) plus (b) the net amount payable (or minus the net amount receivable) under Hedging Agreements during such period (whether
or not actually paid or received during such period). 
 “Consolidated Net Income” shall mean, for any
period, the net income (or loss) of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein) (a) any extraordinary gains or
losses, (b) any gains attributable to write-ups of assets, (c) any equity interest of the Borrower or any Subsidiary in the unremitted earnings of any Person that is not a Subsidiary and (d) any income (or loss) of any Person accrued
prior to the date it becomes a Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary on the date that such Person’s assets are acquired by the Borrower or any Subsidiary. 

“Consolidated Tangible Assets” shall mean, on any date of computation, Consolidated Total Assets minus intangible
assets of the Borrower and its Subsidiaries on that date. 
 “Consolidated Total Assets” shall mean, for
the Borrower and its Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the aggregate book value of the assets of the Borrower and its Subsidiaries for such period.

 “Consolidated Total Debt” shall mean, as of any date of determination, without duplication, all
Indebtedness of the Borrower and its Subsidiaries (other than as described in subsection (k) under the definition of “Indebtedness” herein), determined on a consolidated basis in accordance with GAAP, including, but not limited to,
all of the Obligations. For purposes of determining “Consolidated Total Debt,” the principal amount of any Synthetic Lease Obligation shall be deemed to be the amount that would be reflected on the balance sheet of the Borrower and
its Subsidiaries if such Synthetic Lease Obligation were characterized as a capital lease rather than an operating lease. 

“Consolidated Total Revenues” shall mean, for the Borrower and its Subsidiaries for any period ending on the date
of computation thereof, determined on a consolidated basis in accordance with GAAP, the total revenues of the Borrower and its Subsidiaries for such period. 

“Contractual Obligation” shall mean, as to any Person, any provision of any security issued by such Person or of
any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” shall mean the power, directly or indirectly, either to (a) vote five percent (5%) or more of
securities having ordinary voting power for the election of directors (or persons performing similar functions) of a Person or (b) direct or cause the direction of the management and policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. The terms “Controlling”, “Controlled by”, and “under common Control with” have meanings correlative thereto. 

“Default” shall mean any condition or event that, with the giving of notice or the lapse of time or both, would
constitute an Event of Default. 
 “Default Interest” shall have the meaning assigned to such term in
Section 2.12(c). 
  

 6 

 “Dollar(s)” and the sign “$” shall mean
lawful money of the United States of America. 
 “Dunhill” shall mean Dunhill Staffing Systems, Inc., a
Delaware corporation and Dunhill Temporary Systems, Inc., a New York corporation. 
 “Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section 10.4(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 10.4(b)(iii)). 

“Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, Release or threatened
Release of any Hazardous Material or to health and safety matters. 
 “Environmental Liability” shall
mean any liability, contingent or otherwise (including any liability for damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or
any Subsidiary directly or indirectly resulting from or based upon (a) any actual or alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials,
(c) any actual or alleged exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing. 
 “ERISA” shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time, and any successor statute. 
 “ERISA Affiliate”
shall mean any trade or business (whether or not incorporated), which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for the purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
 “ERISA
Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived);
(b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of
the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower
or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  

 7 

 “Eurodollar” when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate. 

“Eurodollar Reserve Percentage” shall mean the aggregate of the maximum reserve percentages (including, without
limitation, any emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect on any day to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate
pursuant to regulations issued by the Board of Governors of the Federal Reserve System (or any Governmental Authority succeeding to any of its principal functions) with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities” under Regulation D). Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from
time to time to any Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Event of Default” shall have the meaning assigned to such term in Article VIII. 

“Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender, the Issuing Bank or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of
which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar
tax imposed by any other jurisdiction in which the Borrower is located, and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.21(b)), any withholding tax that is
imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with
Section 2.19(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.19(a). 
 “Existing Letter of Credit” shall mean
each outstanding letter of credit issued prior to the date hereof for the account of the Borrower as set forth on Schedule 2.22 and continued after the date hereof pursuant to Section 2.22. Each “Existing Letter of
Credit” shall be a “Letter of Credit” for purposes of this Agreement and deemed to have been issued hereunder. 

“Existing Scheduled Commitment Termination Date” shall have the meaning assigned to such term in
Section 2.23. 
 “Federal Funds Rate” shall mean, for any day, the rate per annum (rounded
upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve System arranged by Federal funds brokers, as published by the Federal
Reserve Bank of New York on the next succeeding Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the
quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent. 

 

 8 

 “Foreign Lender” means any Lender that is organized under the laws
of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 “Fund” means any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. 

“GAAP” shall mean generally accepted accounting principles in the United States applied on a consistent basis and
subject to the terms of Section 1.3. 
 “Gemaire Caribe” shall mean Gemaire Caribe, Inc., a
Puerto Rico corporation. 
 “Governmental Authority” shall mean the government of the United States of
America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government. 
 “Guarantee” of or by any Person
(the “guarantor”) shall mean any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly and including any obligation, direct or indirect, of the guarantor (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness
of other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued in support of such Indebtedness or obligation; provided, that the term “Guarantee” shall not include endorsements
for collection of deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which Guarantee is made or, if not so
stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has a
corresponding meaning. 
 “Hazardous Materials” shall mean all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Hedging Agreements”
shall mean interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, foreign exchange agreements, commodity agreements and other similar agreements or
arrangements designed to protect against fluctuations in interest rates, currency values or commodity values. 

“Indebtedness” of any Person shall mean, without duplication (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person in respect of the deferred purchase price of property or services (other than trade payables
incurred in the ordinary course of 
  

 9 

 
business), (d) all obligations of such Person under any conditional sale or other title retention agreement(s) relating to property acquired by such Person, (e) all Capital Lease
Obligations of such Person, (f) all obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar extensions of credit, (g) all Guarantees of such Person of the type of Indebtedness described
in clauses (a) through (f) above, (h) all Indebtedness of a third party secured by any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by such Person, (i) all obligations of such Person,
contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any common stock of such Person, (j) Off-Balance Sheet Liabilities, (k) obligations under any Hedging Agreements, and (l) all Securitization
Transactions of such Person. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 

“Indemnified Taxes” shall mean Taxes other than Excluded Taxes. 

“Indemnity and Contribution Agreement” shall mean the Indemnity, Subrogation and Contribution Agreement,
substantially in the form of Exhibit E, among the Borrower, the Subsidiary Loan Parties and the Administrative Agent. 

“Interest Coverage Ratio” shall mean as of any date of determination with respect to the Borrower, the ratio of
(a) Consolidated EBIT as of such date to (b) Consolidated Interest Expense as of such date. 
 “Interest
Period” shall mean (a) with respect to any Eurodollar Borrowing, a period of one, two, three or six months, selected by the Borrower pursuant to Section 2.3 and subject to customary adjustments in duration; and
(b) with respect to a Swingline Loan, a period of such duration not to exceed 5 days, as the Borrower may request and the Swingline Lender may agree in accordance with Section 2.5; provided, that: 

(i) the initial Interest Period for such Borrowing shall commence on the date of such Borrowing (including the date of any
conversion from a Borrowing of another Type) and each Interest Period occurring thereafter in respect of such Borrowing shall commence on the day on which the next preceding Interest Period expires; 

(ii) if any Interest Period would otherwise end on a day other than a Business Day, such Interest Period shall be extended
to the next succeeding Business Day, unless, in the case of a Eurodollar Borrowing, such Business Day falls in another calendar month, in which case such Interest Period would end on the next preceding Business Day; 

(iii) any Interest Period in respect of a Eurodollar Borrowing which 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 such calendar month; and 

(iv) no Interest Period may extend beyond the Commitment Termination Date or the Swingline Termination Date, as the case
may be. 
  

 10 

 “Investment” shall have the meaning assigned to such term in
Section 7.4. 
 “Issuing Bank” shall mean Bank of America, N.A. or any other Lender, each in
its capacity as an issuer of Letters of Credit pursuant to Section 2.22. 
 “LC Commitment”
shall mean that portion of the Aggregate Revolving Commitments that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed $50,000,000. 

“LC Disbursement” shall mean a payment made by the Issuing Bank pursuant to a Letter of Credit. 

“LC Documents” shall mean the Letters of Credit and all applications, agreements and instruments relating to the
Letters of Credit. 
 “LC Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time, plus (b) the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender shall be its Pro
Rata Share of the total LC Exposure at such time. 
 “Lenders” shall have the meaning assigned to such
term in the opening paragraph of this Agreement and shall include, where appropriate, the Swingline Lender. 

“Letter of Credit” shall mean each Existing Letter of Credit and any other letter of credit hereafter issued
pursuant to Section 2.22 by the Issuing Bank for the account of the Borrower or any Subsidiary Loan Party pursuant to the LC Commitment. 

“Leverage Ratio” shall mean as of any date of determination with respect to the Borrower, the ratio of
(a) Consolidated Total Debt as of such date to (b) Consolidated EBITDA as of such date. 

“LIBOR” shall mean, for any applicable Interest Period with respect to any Eurodollar Loan, the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time)
at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate
is not available at such time for any reason, then the “LIBOR” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to
major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period. 

“Lien” shall mean any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance,
hypothecation, assignment, deposit arrangement, or other arrangement having the practical effect of the foregoing or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease having the same economic effect as any of the foregoing). 
  

 11 

 “Loan Documents” shall mean, collectively, this Agreement, the Notes
(if any), the LC Documents, all Notices of Borrowing, the Subsidiary Guarantee Agreement, the Indemnity and Contribution Agreement, and any and all other instruments, agreements, documents and writings executed in connection with any of the
foregoing. 
 “Loan Parties” shall mean the Borrower and the Subsidiary Loan Parties. 

“Loans” shall mean all Revolving Loans and Swingline Loans in the aggregate or any of them, as the context shall
require. 
 “Major Subsidiary” shall mean, collectively, (a) Baker Distributing Company LLC,
Gemaire Distributors LLC, East Coast Distributors LLC and Heating & Cooling Supply LLC, and (b) any other direct or indirect Subsidiary of the Borrower having at any time: (i) assets in an amount equal to at least 10% of the
Consolidated Total Assets of the Borrower and its Subsidiaries determined as of the last day of the most recent fiscal quarter of the Borrower as reflected in the Borrower’s most recent financial statements required by
Section 5.1(a) or (b); or (ii) revenues or net income in an amount equal to at least 10% of the Consolidated Total Revenues or Consolidated Net Income of the Borrower and its Subsidiaries for the 12-month period ending on the
last day of the most recent fiscal quarter of the Borrower as reflected in the Borrower’s most recent financial statements required by Section 5.1(a) or (b). 

“Material Adverse Effect” shall mean, with respect to any event, act, condition or occurrence of whatever nature
(including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction with any other event or events, act or acts, condition or conditions, occurrence or occurrences
whether or not related, a material adverse change in, or a material adverse effect on, (a) the business, results of operations, financial condition, assets, liabilities or prospects of the Borrower and of the Borrower and its Subsidiaries taken
as a whole, (b) the ability of the Loan Parties to perform any of their respective obligations under the Loan Documents, (c) the rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders under any of the Loan
Documents or (d) the legality, validity or enforceability of any of the Loan Documents. 
 “Material
Agreement” shall mean any agreement filed pursuant to Item 601(b)(10) of Regulation S-K (17 C.F.R. 229, et seq.) with the Borrower’s most recent Annual Report on Form 10-K. 

“Material Indebtedness” shall mean Indebtedness (other than the Loans and Letters of Credit) or obligations in
respect of one or more Hedging Agreements, to a single Person and such Person’s Affiliates of an aggregate principal amount exceeding $10,000,000. For purposes of determining “Material Indebtedness,” the “principal
amount” of the obligations of the Borrower or any Subsidiary in respect to any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required
to pay if such Hedging Agreement were terminated at such time. 
 “Material Indebtedness Agreements”
shall mean each of the Prudential Shelf Agreement, any agreement or instrument evidencing Private Placement Debt, any agreement relating to a Securitization Transaction, or any other agreement relating to Material Indebtedness of the Borrower or any
Subsidiary Loan Party. 
 “Modification Date” shall have the meaning assigned to such term in
Section 2.23. 
 “Moody’s” shall mean Moody’s Investors Service, Inc., or any
successor. 
  

 12 

 “Multiemployer Plan” shall have the meaning set forth in
Section 4001(a)(3) of ERISA. 
 “Non-Extending Lender” shall have the meaning assigned to such term
in Section 2.23. 
 “Notes” shall mean, collectively, the Revolving Credit Notes and the
Swingline Note. 
 “Notices of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing
and the Notices of Swingline Borrowing. 
 “Notice of Conversion/Continuation” shall mean the notice
given by the Borrower to the Administrative Agent in respect of the conversion or continuation of an outstanding Borrowing as provided in Section 2.7(b) hereof. 

“Notice of Revolving Borrowing” shall have the meaning assigned to such term in Section 2.3.

 “Notice of Swingline Borrowing” shall have the meaning assigned to such term in
Section 2.5. 
 “Obligations” shall mean (a) all amounts owing by the Borrower or any
Subsidiary to the Administrative Agent, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in connection with this Agreement or any other Loan Document, including without limitation, all principal, interest (including any
interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding), all reimbursement obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent and any Lender (including the Swingline Lender)
incurred pursuant to this Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder, together with all renewals, extensions,
modifications or refinancings thereof, and (b) all obligations of the Borrower or any Subsidiary, monetary or otherwise, under each interest rate Hedging Agreement relating to Obligations referred to in the preceding clause (a) entered
into with any counterparty that was a Lender (or an Affiliate thereof) at the time such Hedging Agreement was entered into. 

“OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Assets Control. 

“Off-Balance Sheet Liabilities” of any Person shall mean (a) any repurchase obligation or liability of such
Person with respect to accounts or notes receivable sold by such Person, (b) any liability of such Person under any sale and leaseback transactions which do not create a liability on the balance sheet of such Person, (c) any Synthetic
Lease Obligation or (d) 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.

 “Other Taxes” shall mean any and all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 

“Participant” shall have the meaning set forth in Section 10.4(c). 

 

 13 

 “Payment Office” shall mean the office of the Administrative Agent
located at 101 North Tryon Street, NC1-001-04-39, Charlotte, North Carolina 28255, or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the other Lenders. 

“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor
entity performing similar functions. 
 “Permitted Encumbrances” shall mean: 

(a) Liens imposed by law for taxes, governmental assessments or similar governmental charges not yet due or which are
being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; 

(b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by
law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; 

(c) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation,
unemployment insurance and other social security laws or regulations; 
 (d) deposits to secure the performance
of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 

(e) judgment and attachment liens not giving rise to an Event of Default or Liens created by or existing from any
litigation or legal proceeding that are currently being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; 

(f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in
the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of the Borrower and its Subsidiaries
taken as a whole; and 
 (g) bank liens with respect to collection of deposits in the ordinary course of
business; 
 provided, that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 

“Permitted Investments” shall mean: 

(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the
United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing within one (1) year from the date of acquisition thereof; 

 

 14 

 (b) commercial paper having the highest rating, at the time of acquisition
thereof, of Standard & Poor’s or Moody’s and in either case maturing within six (6) months from the date of acquisition thereof; 

(c) certificates of deposit, bankers’ acceptances and time deposits maturing within one-hundred eighty
(180) days of the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any state
thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; 
 (d)
fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above;

 (e) mutual funds investing solely in any one or more of the Permitted Investments described in clauses
(a) through (d) above; 
 (f) debt securities with a maturity of no greater than 365 days and rated at
least “A-” by Standard & Poor’s or at least “A3” by Moody’s; and 

(g) subject to the restriction set forth in Section 4.9, other debt or equity securities which are listed on a
national securities exchange or freely traded in the over-the-counter market so long as the cost of such securities does not exceed at any time in the aggregate an amount equal to 2% of Consolidated Tangible Assets as of the most recent fiscal year
end. 
 “Person” shall mean any individual, partnership, firm, corporation, association, joint venture,
limited liability company, trust or other entity, or any Governmental Authority. 
 “Plan” shall mean
any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 

“Private Placement Debt” shall mean unsecured Indebtedness for borrowed money issued by the Borrower in a private
placement transaction; provided, that all of the following conditions shall be satisfied: 
 (a) except as
set forth on Schedule II hereof, no portion of principal thereof shall be payable or required to be purchased (whether by scheduled installment, mandatory prepayment or redemption, or the exercise of any put right) prior to the Scheduled Commitment
Termination Date; 
 (b) the instruments and agreements evidencing such Indebtedness, and any agreement under
which such Indebtedness, and any agreement under which such Indebtedness is created, shall provide that the right to payment of the holders or owners of Private Placement Debt (including any trustee or agent action on behalf of such holders or
owners, collectively “Private Placement Debt Holders”) shall either be subordinate to or rank pari passu in all respects with the rights of the Lenders and the Administrative Agent to payment and performance of the
Obligations on terms reasonably acceptable to the Administrative Agent; 
  

 15 

 (c) both immediately prior to and immediately after giving effect to the
issuance of such Indebtedness, there shall not have occurred and be continuing any Default or Event of Default; 

(d) the Borrower shall furnish to the Administrative Agent, not later than the earliest date of delivery thereof to any
actual or prospective Private Placement Debt Holder, copies of (i) all preliminary placement memoranda and final placement memoranda relating to such Indebtedness and (ii) drafts of all documents and agreements under which such
Indebtedness is to be created or governed; and 
 (e) not later than ten (10) days prior to the issuance of
such Indebtedness, the Borrower shall deliver to the Administrative Agent a certificate in the form of Exhibit 5.1(c), executed by a Responsible Officer and containing calculations giving historical pro forma effect to the issuance of such
Indebtedness as of and for the four consecutive fiscal quarter period ending at the end of most recent fiscal quarter of the Borrower preceding the date of such issuance (assuming for such purpose that the initial rate or rates of interest provided
for therein (and giving effect to any increase in rates of interest therein provided) remained in effect for such four fiscal quarter period), which certificate shall demonstrate that the issuance of such Indebtedness does not cause, create or
result in a Default or Event of Default on a historical pro forma basis. 
 “Pro Rata Share” shall mean,
with respect to any Lender at any time, a percentage, the numerator of which shall be such Lender’s Revolving Commitment and the denominator of which shall be the sum of all Lenders’ Revolving Commitments; or if the Revolving Commitments
have been terminated or expired or if the Loans have been declared to be due and payable, a percentage, the numerator of which shall be the sum of such Lender’s Revolving Credit Exposure and the denominator of which shall be the sum of the
aggregate Revolving Credit Exposure of all Lenders. 
 “Prudential Shelf Agreement” that certain Second
Amended and Restated Private Shelf Agreement dated December 10, 2004 between The Prudential Insurance Company of America, Inc, the Borrower and the purchasers named therein. 

“Receivables” shall mean accounts receivable (including, without limitation, all rights to payment created or
arising from the sales of goods, leases of goods or the rendition of services, no matter how evidenced and whether or not earned by performance). 

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System, as the same may
be in effect from time to time, and any successor regulations. 
 “Related Parties” shall mean, with
respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 

“Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal,
discharge, dispersal, leaching or migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within any building, structure, facility or fixture. 

“Required Lenders” shall mean, at any time, Lenders holding fifty-one percent (51%) or more of the aggregate
outstanding Revolving Credit Exposures at such time or if the Lenders have no Revolving Credit Exposure outstanding, then Lenders holding fifty-one percent (51%) or more of the Aggregate Revolving Commitments. 

 

 16 

 “Responsible Officer” shall mean any of the president, the chief
executive officer, the chief operating officer, the chief financial officer, the treasurer or a vice president of the Borrower or such other representative of the Borrower (or, with respect to any request for the issuance of a Letter of Credit for
the account of a Subsidiary, such officer of the applicable Subsidiary), as may be designated in writing by any one of the foregoing with the consent of the Administrative Agent; and, with respect to the financial covenants only, the chief financial
officer or the treasurer of the Borrower. 
 “Restricted Payment” shall have the meaning assigned to
such term in Section 7.5. 
 “Revolving Commitment” shall mean, with respect to each Lender,
the obligation of such Lender to make Revolving Loans to the Borrower and to participate in Letters of Credit and Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to such Lender on the signature pages
to this Agreement, or in the case of a Person becoming a Lender after the Closing Date, the amount of the assigned “Revolving Commitment” as provided in the Assignment and Assumption Agreement executed by such Person as an assignee, as the
same may be changed pursuant to terms hereof. 
 “Revolving Credit Exposure” shall mean, with respect to
any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans, such Lender’s LC Exposure and such Lender’s Swingline Exposure. 

“Revolving Credit Note” shall mean a promissory note of the Borrower payable to the order of a requesting Lender
in the principal amount of such Lender’s Revolving Commitment, in substantially the form of Exhibit A. 

“Revolving Loan” shall mean a loan made by a Lender (other than the Swingline Lender) to the Borrower under its
Revolving Commitment, which may either be a Base Rate Loan or a Eurodollar Loan. 
 “Scheduled Commitment Termination
Date” shall mean August 3, 2012. 
 “Securitization Transaction” shall mean
(a) any transfer by the Borrower or any Subsidiary of Receivables or interests therein and all collateral securing such Receivables, all contracts and contract rights and all guarantees or other obligations in respect of such Receivables, all
other assets that are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving such Receivables and all proceeds of any of the foregoing (i) to a
trust, partnership, corporation or other entity (other than the Borrower or a Subsidiary other than a SPE Subsidiary), which transfer is funded in whole or in part, directly or indirectly, by the incurrence or issuance by the transferee or any
successor transferee of indebtedness or other securities that are to receive payments from, or that represent interests in, the cash flow derived from such Receivables or interests in Receivables, or (ii) directly to one or more investors or
other purchasers (other than the Borrower or any Subsidiary), or (b) any transaction in which the Borrower or a Subsidiary incurs Indebtedness or other obligations secured by Liens on Receivables. The “amount” or “principal
amount” of any Securitization Transaction shall be deemed at any time to be (x) in the case of a transaction described in clause (a) of the preceding sentence, the aggregate principal or stated amount of the Indebtedness or
other securities referred to in such clause or, if there shall be no such principal or stated amount, the uncollected amount of the Receivables transferred pursuant to such Securitization Transaction net of any such Receivables that have been
written off as 
  

 17 

 
uncollectible, and (y) in the case of a transaction described in clause (b) of the preceding sentence, the aggregate outstanding principal amount of the Indebtedness secured by Liens on
the subject Receivables. 
 “Solvent” or “Solvency” shall mean, with respect to
any Person as of a particular date, that on such date (a) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business,
(b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a
business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is to engage, (d) the fair value of the properties and assets of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and
(e) the present fair saleable value of the properties and assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured. In computing the
amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability. 
 “SPE Subsidiary” shall mean any Subsidiary formed solely for
the purpose of, and that engages only in, one or more Securitization Transactions. 
 “Standard &
Poor’s” shall mean Standard & Poor’s, a division of the McGraw-Hill Companies. 

“Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation,
partnership, joint venture, limited liability company, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared
in accordance with GAAP as of such date, as well as any other corporation, partnership, joint venture, limited liability company, association or other entity (a) of which securities or other ownership interests representing more than fifty
percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power, or in the case of a partnership, more than fifty percent (50%) of the general partnership interests are, as of such date, owned, Controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise indicated, all references to
“Subsidiary” hereunder shall mean a Subsidiary of the Borrower. 
 “Subsidiary Guarantee
Agreement” shall mean the Subsidiary Guarantee Agreement, substantially in the form of Exhibit D, made by the Subsidiary Loan Parties in favor of the Administrative Agent for the benefit of the Lenders. 

“Subsidiary Loan Party” shall mean any direct or indirect Subsidiary (other than Gemaire Caribe, unless it
becomes a Subsidiary Loan Party pursuant to Section 5.12). 
 “Swingline Commitment” shall
mean the commitment of the Swingline Lender to make Swingline Loans in an aggregate principal amount at any time outstanding not to exceed $25,000,000. 

“Swingline Exposure” shall mean, with respect to each Lender, the principal amount of the Swingline Loans in
which such Lender is legally obligated either to make a Base Rate Loan or to purchase a participation in accordance with Section 2.5, which shall equal such Lender’s Pro Rata Share of all outstanding Swingline Loans. 

 

 18 

 “Swingline Lender” shall mean Bank of America, N.A., or any other
Lender that may agree to make Swingline Loans hereunder. 
 “Swingline Loan” shall mean a loan made to
the Borrower by the Swingline Lender under the Swingline Commitment. 
 “Swingline Note” shall mean the
promissory note of the Borrower payable to the order of the Swingline Lender in the principal amount of the Swingline Commitment, in substantially the form of Exhibit B. 

“Swingline Rate” shall mean, for any Interest Period, the rate as offered by the Administrative Agent and
accepted by the Borrower. The Borrower is under no obligation to accept this rate and the Administrative Agent is under no obligation to provide it. 

“Swingline Termination Date” shall mean the Commitment Termination Date. 

“Synthetic Lease” shall mean a lease transaction under which the parties intend that (a) the lease will be
treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended, and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as
opposed to lessees) of like property. 
 “Synthetic Lease Obligations” shall mean, with respect to any
Person, the sum of (a) all remaining rental obligations of such Person as lessee under Synthetic Leases that are attributable to principal and, without duplication, (b) all rental and purchase price payment obligations of such Person under
such Synthetic Leases assuming such Person exercises the option to purchase the lease property at the end of the lease term. 

“Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
 “Type”, when used in reference to a Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Base Rate. 

“Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such Person the holders of which
are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right to vote has been suspended by the happening of such a contingency.

 “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

Section 1.2 Classifications of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and
referred to by Class (e.g. a “Revolving Loan” or “Swingline Loan”) or by Type (e.g. a “Eurodollar Loan” or “Base Rate Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”). Borrowings also
may be classified and referred to by Class (e.g. “Revolving Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type (e.g. “ Revolving Eurodollar Borrowing”). 

 

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 Section 1.3 Accounting Terms and Determination. Unless otherwise defined
or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in
effect from time to time, applied on a basis consistent (except for such changes approved by the Borrower’s independent public accountants) with the most recent audited consolidated financial statement of the Borrower delivered pursuant to
Section 5.1(a); provided, that if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any covenant in Article VI to eliminate the effect of any change in GAAP on the operation of such covenant
(or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article VI for such purpose), then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately
before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders. 

Section 1.4 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include’, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the words “hereof”, “herein” and
“hereunder” and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be construed to refer
to Articles, Sections, Exhibits and Schedules to this Agreement and (v) all references to a specific time shall be construed to refer to the time in the city and state of the Administrative Agent’s principal office, unless otherwise
indicated. 
 ARTICLE II 

AMOUNT AND TERMS OF THE COMMITMENTS 

Section 2.1 General Description of Facilities. Subject to and upon the terms and conditions herein set forth,
(a) the Lenders hereby establish in favor of the Borrower a revolving credit facility pursuant to which the Lenders severally agree (to the extent of each Lender’s Pro Rata Share up to such Lender’s Revolving Commitment) to make
Revolving Loans to the Borrower in accordance with Section 2.2), (b) the Issuing Bank agrees to issue Letters of Credit in accordance with Section 2.22, (c) the Swingline Lender agrees to make Swingline Loans in
accordance with Section 2.4, and (d) each Lender agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant to the terms and conditions hereof; provided, that in no event shall the
sum of the aggregate outstanding Revolving Credit Exposures of all Lenders exceed at any time the Aggregate Revolving Commitments then in effect. 
  

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 Section 2.2 Revolving Loans. Subject to the terms and conditions set
forth herein, each Lender severally agrees to make Revolving Loans to the Borrower, from time to time during the Availability Period, in an aggregate principal amount outstanding at any time that will not result in (i) such Lender’s
Revolving Credit Exposure exceeding such Lender’s Revolving Commitment or (ii) the sum of the aggregate Revolving Credit Exposures of all Lenders exceeding the Aggregate Revolving Commitments. During the Availability Period, the Borrower
shall be entitled to borrow, prepay and reborrow Revolving Loans in accordance with the terms and conditions of this Agreement; provided, that the Borrower may not borrow or reborrow should there exist a Default or Event of Default.

 Section 2.3 Procedure for Revolving Borrowings. The Borrower shall give the Administrative Agent written
notice (or telephonic notice promptly confirmed in writing) of each Revolving Borrowing, substantially in the form of Exhibit 2.3 attached hereto (a “Notice of Revolving Borrowing”), (a) prior to 12:00 noon on the
requested date of each Base Rate Borrowing and (b) prior to 12:00 noon three (3) Business Days prior to the requested date of each Eurodollar Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify:
(i) the aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the case of a Eurodollar
Borrowing, the duration of the initial Interest Period applicable thereto (subject to the provisions of the definition of Interest Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans or Eurodollar Loans, as the Borrower may
request. The aggregate principal amount of each Eurodollar Borrowing shall be not less than $5,000,000 or a larger multiple of $1,000,000, and the aggregate principal amount of each Base Rate Borrowing shall not be less than $1,000,000 or a larger
multiple of $100,000; provided, that Base Rate Loans made pursuant to Section 2.5 or Section 2.22(d) may be made in lesser amounts as provided therein. At no time shall the total number of Eurodollar Borrowings
outstanding at any time exceed ten (10). Promptly following the receipt of a Notice of Revolving Borrowing in accordance herewith, the Administrative Agent shall advise each Lender of the details thereof and the amount of such Lender’s
Revolving Loan to be made as part of the requested Revolving Borrowing. 
 Section 2.4 Swingline Loans.
Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Borrower, from time to time from the Closing Date to the Swingline Termination Date, in an aggregate principal amount outstanding at any
time not to exceed the lesser of (a) the Swingline Commitment then in effect and (b) the difference between the Aggregate Revolving Commitments and the aggregate outstanding Revolving Credit Exposures of all Lenders; provided, that
the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. The Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the terms and conditions of this
Agreement. 
 Section 2.5 Procedure for Swingline Borrowing; Etc. 

(a) The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Swingline
Borrowing (“Notice of Swingline Borrowing”) prior to 12:00 noon on the requested date of each Swingline Borrowing. Each Notice of Swingline Borrowing shall be irrevocable and shall specify: (i) the principal amount of
such Swingline Loan, (ii) the date of such Swingline Loan (which shall be a Business Day) and (iii) the account of the Borrower to which the proceeds of such Swingline Loan should be credited. The Administrative Agent will promptly advise
the Swingline Lender of each Notice of Swingline Borrowing. Each Swingline Loan shall accrue interest at the rate specified in Section 2.12(b) and shall have an Interest Period (subject to the definition thereof) as agreed between the
Borrower and the Swingline Lender. The aggregate principal amount of each Swingline Loan shall be not less than $100,000 or a larger multiple of $50,000, or such other minimum amounts agreed to by the Swingline Lender and the Borrower. The Swingline
Lender will make the proceeds of each Swingline Loan available to the Borrower in Dollars in immediately available funds at the account specified by the Borrower in the applicable Notice of 

 

 21 

 
Swingline Borrowing not later than 1:00 p.m. on the requested date of such Swingline Loan. The Administrative Agent will notify the Lenders on a quarterly basis if any Swingline Loans occurred
during such quarter. 
 (b) The Swingline Lender, at any time and from time to time in its sole discretion, may, on behalf of
the Borrower (which hereby irrevocably authorizes and directs the Swingline Lender to act on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting the Lenders (including the Swingline Lender) to make Base Rate
Loans in an amount equal to the unpaid principal amount of any Swingline Loan. Each Lender will make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Swingline Lender in
accordance with Section 2.6, which will be used solely for the repayment of such Swingline Loan. 
 (c) If for any
reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Swingline Lender) shall purchase an undivided
participating interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on the date that such Base Rate Borrowing should have occurred. On the date of such required purchase, each Lender shall promptly transfer, in immediately
available funds, the amount of its participating interest to the Administrative Agent for the account of the Swingline Lender. If such Swingline Loan bears interest at a rate other than the Base Rate, such Swingline Loan shall automatically become a
Base Rate Loan on the effective date of any such participation and interest shall become payable on demand. 
 (d) Each
Lender’s obligation to make a Base Rate Loan pursuant to Section 2.5(b) or to purchase the participating interests pursuant to Section 2.5(c) shall be absolute and unconditional and shall not be affected by any
circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may have or claim against the Swingline Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the existence of a Default or an Event of Default (other than an Event of Default in existence at the time of the making of any Swingline Loan by the Swingline Lender of which the Swingline Lender had actual knowledge) or the
termination of any Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of any event or condition which has had or could reasonably be expected to have a Material Adverse Effect, (iv) any breach of this Agreement
or any other Loan Document by the Borrower, the Administrative Agent or any Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available to the
Swingline Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof at the Federal Funds Rate. Until such time
as such Lender makes its required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation for all purposes of the Loan Documents. In addition, such Lender shall be
deemed to have assigned any and all payments made of principal and interest on its Loans and any other amounts due to it hereunder, to the Swingline Lender to fund the amount of such Lender’s participation interest in such Swingline Loans that
such Lender failed to fund pursuant to this Section 2.5, until such amount has been purchased in full. 

Section 2.6 Funding of Borrowings. 

(a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in immediately
available funds by 1:00 p.m. to the Administrative Agent at the Payment Office; provided, that the Swingline Loans will be made as set forth in Section 2.5. The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts that it receives, in like funds by the close of business on such proposed date, to an account maintained by the Borrower with the Administrative Agent or at the Borrower’s option, by effecting a wire transfer
of such amounts to an account designated by the Borrower to the Administrative Agent. 
  

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 (b) Unless the Administrative Agent shall have been notified by any Lender prior to 5:00
p.m. one (1) Business Day prior to the date of a Borrowing in which such Lender is participating that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such amount available to the Administrative Agent on such date, and the Administrative Agent, in reliance on such assumption, may make available to the Borrower on such date a corresponding amount. If such
corresponding amount is not in fact made available to the Administrative Agent by such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender together with
interest at the Federal Funds Rate for up to two (2) days and thereafter at the rate specified for such Borrowing. If the Administrative Agent has made available to the Borrower any Lender’s share of such Borrowing and such Lender does not
pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to the Administrative Agent
together with interest at the rate specified for such Borrowing. Nothing in this subsection shall be deemed to relieve any Lender from its obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice any rights which the Borrower
may have against any Lender as a result of any default by such Lender hereunder. 
 (c) All Revolving Borrowings shall be made
by the Lenders on the basis of their respective Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans hereunder. 
 Section 2.7 Interest
Elections. 
 (a) Each Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing, and in
the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Notice of Borrowing. Thereafter, the Borrower may elect to convert such Borrowing into a different Type or to continue such Borrowing, and in the case of
a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.7. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This Section 2.7 shall not apply to Swingline Borrowings,
which may not be converted or continued. 
 (b) To make an election pursuant to this Section 2.7, the Borrower shall
give the Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) of each Borrowing (a “Notice of Conversion/Continuation”) that is to be converted or continued, as the case may be,
(x) prior to 12:00 noon on the Business Day of the requested date of a conversion into a Base Rate Borrowing and (y) prior to 12:00 noon three (3) Business Days prior to a continuation of or conversion into a Eurodollar Borrowing.
Each such Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which such Notice of Continuation/Conversion applies and if different options are being elected with respect to different portions thereof,
the portions thereof that are to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) shall be specified for each resulting Borrowing); (ii) the effective date of
the election made pursuant to such Notice of Continuation/Conversion, which shall be a Business Day, (iii) whether the resulting Borrowing is to be a Base Rate Borrowing or a Eurodollar Borrowing; and (iv) if the resulting Borrowing is to
be a Eurodollar Borrowing, the Interest Period applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of “Interest Period”. If any such Notice of

  

 23 

 
Continuation/Conversion requests a Eurodollar Borrowing but does not specify an Interest Period, the Borrower shall be deemed to have selected an Interest Period of one month. The principal
amount of any resulting Borrowing shall satisfy the minimum borrowing amount for Eurodollar Borrowings and Base Rate Borrowings set forth in Section 2.3. 

(c) If, on the expiration of any Interest Period in respect of any Eurodollar Borrowing, the Borrower shall have failed to deliver a
Notice of Conversion/Continuation, then, unless such Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert such Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a
Eurodollar Borrowing if a Default or an Event of Default exists, unless the Administrative Agent and each of the Lenders shall have otherwise consented in writing. No conversion of any Eurodollar Loans shall be permitted except on the last day of
the Interest Period in respect thereof. 
 (d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent
shall promptly notify each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 

Section 2.8 Optional Reduction and Termination of Commitments; Extension of Commitments; Increase of Aggregate Revolving
Commitments; Additional Lenders. 
 (a) Unless previously terminated, all Revolving Commitments shall terminate on the
Commitment Termination Date, except that the Swingline Commitment shall terminate on the Swingline Termination Date. 
 (b) Upon
at least three (3) Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent (which notice shall be irrevocable), the Borrower may reduce the Aggregate Revolving Commitments in
part or terminate the Aggregate Revolving Commitments in whole; provided, that (i) any partial reduction shall apply to reduce proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial reduction
pursuant to this Section 2.8(b) shall be in an amount of at least $5,000,000 and any larger multiple of $1,000,000, and (iii) no such reduction shall be permitted which would reduce the Aggregate Revolving Commitments to an amount
less than the sum of the aggregate outstanding Revolving Credit Exposures of all Lenders. Any such reduction in the Aggregate Revolving Commitments shall result in a proportionate and permanent reduction (rounded to the next lowest integral multiple
of $100,000) in the Swingline Commitment and the LC Commitment. 
 (c) So long as no Event of Default has occurred and is
continuing, from time to time after the Closing Date, Borrower may, upon at least 30 days’ written notice to the Administrative Agent, who shall promptly notify the Lenders, propose to increase the Aggregate Revolving Commitments up to an
amount not to exceed $150,000,000 less the amount of any permanent reductions in the Aggregate Revolving Commitments pursuant to Section 2.8(b) (the amount of any such increase, the “Additional Revolving Commitment
Amount”). Each Lender shall have the right for a period of fifteen (15) days following receipt of such notice to elect by written notice to the Borrower and the Administrative Agent to increase its Revolving Commitment by a
principal amount equal to its Pro Rata Share of the Additional Revolving Commitment Amount. No Lender (or any successor thereto) shall have any obligation to increase its Revolving Commitment or its other obligations under this Agreement and the
other Loan Documents, and any decision by a Lender to increase its Revolving Commitment shall be made in its sole discretion independently from any other Lender. 

 

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 (d) If any Lender shall not elect to increase its Revolving Commitment pursuant to
subsection (c) of this Section 2.8, the Borrower may, to the extent necessary to increase the Aggregate Revolving Commitments by the then unsubscribed Additional Revolving Commitment Amount, designate another bank or other financial
institution (which may be, but need not be, one or more of the existing Lenders) which at the time agrees to, in the case of any such Person that is an existing Lender, increase its Revolving Commitment and in the case of any other such Person (an
“Additional Lender”), become a party to this Agreement; provided, however, that each Additional Lender must be acceptable to the Administrative Agent in its sole discretion, which acceptance will not be
unreasonably withheld. The sum of the increases in the Revolving Commitments of the existing Lenders plus the Revolving Commitments of the Additional Lenders shall not in the aggregate exceed the Additional Revolving Commitment Amount. 

(e) An increase in the aggregate amount of the Revolving Commitments pursuant to this Section 2.8 shall become effective upon
the receipt by the Administrative Agent of an agreement in form and substance satisfactory to the Administrative Agent signed by the Borrower, by each Additional Lender and by each other Lender whose Revolving Commitment is to be increased, setting
forth the new Revolving Commitments of such Lenders and setting forth the agreement of each Additional Lender to become a party to this Agreement and to be bound by all the terms and provisions hereof, together with a replacement or additional
Revolving Credit Note, as applicable, evidencing the new Revolving Commitment of each affected Lender, duly executed and delivered by the Borrower, and such evidence of appropriate corporate authorization on the part of the Borrower with respect to
the increase in the Aggregate Revolving Commitments and other documents with respect to the increase in the Revolving Commitments as the Administrative Agent may reasonably request. 

(f) Upon any increase in the Aggregate Revolving Commitments pursuant to this Section 2.8 that is not pro rata among all
Lenders, (i) within five Business Days in the case of any Base Rate Loans then outstanding, and at the end of the then applicable Interest Period in the case of any Eurodollar Loans then outstanding, the Borrower shall prepay such Loans in
their entirety and, to the extent the Borrower elects to do so and subject to the conditions specified in Article III hereof, the Borrower shall reborrow Loans from the Lenders in proportion to their Pro Rata Share after giving effect to such
increase, until such time as all outstanding Loans are held by the Lenders in such proportion and (ii) effective upon such increase, the amount of the participations held by each Lender in each Letter of Credit then outstanding shall be deemed
adjusted such that, after giving effect to such adjustments, the Lenders shall hold participations in each such Letter of Credit in the proportion its respective Revolving Commitment bears to the Aggregate Revolving Commitments after giving effect
to such increase. 
 Section 2.9 Repayment of Loans. 

(a) The outstanding principal amount of all Revolving Loans shall be due and payable on the Commitment Termination Date. Interest on all
Revolving Loans shall be payable as set forth in Section 2.12(d). 
 (b) The principal amount of each Swingline Loan
shall be due and payable on the earlier of (i) the date ten Business Days after such Loan is made and (ii) the Swingline Termination Date. Interest on all Swingline Loans shall be payable as set forth in Section 2.12(d).

 Section 2.10 Evidence of Indebtedness. 

(a) Each Lender shall maintain in accordance with its usual practice appropriate records evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender from time to time under this Agreement. The Administrative Agent shall maintain

  

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appropriate records in which shall be recorded (i) the Revolving Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class and Type thereof and
the Interest Period applicable thereto, (iii) the date of each continuation thereof pursuant to Section 2.7, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to Section 2.7,
(v) the date and amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder in respect of such Loans and (vi) both the date and amount of any sum received by the
Administrative Agent hereunder from the Borrower in respect of the Loans and each Lender’s Pro Rata Share thereof. The entries made in such records shall be prima facie evidence of the existence and amounts of the obligations of the
Borrower therein recorded; provided, that the failure or delay of any Lender or the Administrative Agent in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans (both principal and unpaid accrued interest) of such Lender in accordance with the terms of this Agreement. 

(b) At the request of any Lender (including the Swingline Lender) at any time, the Borrower agrees that it will execute and deliver to
such Lender a Revolving Credit Note, and, in the case of the Swingline Lender only, a Swingline Note, payable to the order of such Lender. At the request of the Borrower, any such Revolving Credit Note or Swingline Note may be executed and delivered
by the Borrower outside of the State of Florida in such location within the continental United States as may reasonably be acceptable to the Administrative Agent. 

Section 2.11 Prepayments. 

(a) Mandatory Prepayments. The Borrower shall be required to make mandatory principal prepayments to the Administrative Agent
without the Administrative Agent’s further demand therefor if, as of any fiscal quarter end of the Borrower, the sum of the aggregate outstanding Revolving Credit Exposures of all Lenders exceed the aggregate amount that the Borrower would then
have been entitled to borrow or retain under the applicable provisions of Section 2.1. Such mandatory principal prepayment shall be in the amount necessary to reduce the sum of the aggregate outstanding Revolving Credit Exposures of all
Lenders to the maximum amount that the Borrower then would be entitled to borrow or retain hereunder and shall be made, in any event, within ten (10) days after the end of the applicable fiscal quarter end of Borrower. 

(b) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing, in whole or
in part, without premium or penalty, by giving irrevocable written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent no later than 12:00 noon, (i) in the case of prepayment of any Eurodollar Borrowing, not
less than three (3) Business Days prior to any such prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing, on the Business Day of such prepayment, and (iii) in the case of Swingline Borrowings, on the date of such
prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the principal amount of each Borrowing or portion thereof to be prepaid. Upon receipt of any such notice, the Administrative Agent shall
promptly notify each affected Lender of the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is given, the aggregate amount specified in such notice shall be due and payable on the date designated in
such notice, together with accrued interest to such date on the amount so prepaid in accordance with Section 2.12(d); provided, that if a Eurodollar Borrowing is prepaid on a date other than the last day of an Interest Period
applicable thereto, the Borrower shall also pay all amounts required pursuant to Section 2.18. Each partial prepayment of any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case of an advance of a
Revolving Borrowing of the same Type pursuant to Section 2.3 or in the case of a Swingline Loan pursuant to Section 2.5. Each prepayment of a Borrowing shall be applied ratably to the Loans comprising such Borrowing.

  

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 Section 2.12 Interest on Loans. 

(a) The Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect from time to time and on each Eurodollar Loan at the
Adjusted LIBO Rate for the applicable Interest Period in effect for such Loan, plus, in each case, the Applicable Margin in effect from time to time but, in no event, to exceed the Maximum Rate. 

(b) The Borrower shall pay interest on each Swingline Loan at the Swingline Rate in effect from time to time but, in no event, to exceed
the Maximum Rate. 
 (c) While an Event of Default exists or after acceleration, at the option of the Required Lenders, the
Borrower shall pay interest (“Default Interest”) with respect to all Eurodollar Loans at the rate otherwise applicable for the then-current Interest Period plus an additional two percent (2%) per annum until the last day
of such Interest Period, and thereafter, and with respect to all Base Rate Loans (including all Swingline Loans) and all other Obligations hereunder (other than Loans), at an all-in rate in effect for Base Rate Loans (i.e., including Applicable
Margin), plus an additional 2% per annum. 
 (d) Interest on the principal amount of all Loans shall accrue from and
including the date such Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Base Rate Loans shall be payable quarterly in arrears on the last Business Day of each fiscal quarter of the Borrower and on the
Commitment Termination Date. Interest on all outstanding Eurodollar Loans shall be payable on the last day of each Interest Period applicable thereto, and, in the case of any Eurodollar Loans having an Interest Period in excess of three months, on
each day which occurs every three months after the initial date of such Interest Period, and on the Commitment Termination Date. Interest on each Swingline Loan shall be payable quarterly in arrears on the last Business Day of each fiscal quarter of
the Borrower and on the Swingline Termination Date. Interest on any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion or on the date of any such repayment or prepayment
(on the amount repaid or prepaid) thereof. All Default Interest shall be payable on demand. 
 (e) The Administrative Agent
shall determine each interest rate applicable to the Loans hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and
binding for all purposes, absent manifest error. 
 Section 2.13 Fees. 

(a) Administrative Agent Fees. The Borrower shall pay to the Administrative Agent for its own account fees in the amounts and at
the times previously agreed upon the Borrower and the Administrative Agent. 
 (b) Commitment Fees. The Borrower agrees
to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Percentage (determined quarterly in accordance with Schedule I) on the average daily amount of the unused Revolving
Commitment of such Lender during the Availability Period; provided, that if such Lender continues to have any Revolving Credit Exposure after the Commitment Termination Date, then the commitment fee shall continue to accrue on the average
daily amount of such Lender’s unused Revolving Commitment from and after the Commitment Termination Date to the date that all of such Lender’s Revolving Credit Exposure has been paid in full. The Applicable Percentage shall initially be
0.100%, but shall be reset from time to time as provided in the definition of “Applicable Percentage” herein. Accrued commitment fees shall be payable in arrears on the last Business Day of each fiscal quarter of the Borrower and on the
Commitment 
  

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Termination Date, commencing on the first such date after the Closing Date; provided that any commitment fees accruing after the Commitment Termination Date shall be payable on demand. For
purposes of computing commitment fees with respect to the Revolving Commitments, the Revolving Commitment of each Lender shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure of such Lender (but outstanding Swingline
Loans shall not be deemed usage of the Revolving Commitment of each Lender). 
 (c) Letter of Credit Fees. The Borrower
agrees to pay (i) to the Administrative Agent, for the account of each Lender, a letter of credit fee with respect to its participation in each Letter of Credit, which shall accrue at the Applicable Margin then in effect for Eurodollar
Borrowings on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable to such Letter of Credit during the period from and including the date of issuance of
such Letter of Credit to but excluding the date on which such Letter expires or is drawn in full (including without limitation any LC Exposure that remains outstanding after the Commitment Termination Date) and (ii) to the Issuing Bank for its
own account a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the Availability Period (or until
the date that such Letter of Credit is irrevocably cancelled, whichever is later), as well as the Issuing Bank’s standard fees with respect to issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. 
 (d) Payments. Accrued fees shall be payable quarterly in arrears on the last Business Day of each fiscal
quarter of the Borrower, commencing on September 30, 2007 and on the Commitment Termination Date (and if later, the date the Loans and LC Exposure shall be repaid in their entirety). 

Section 2.14 Computation of Interest and Fees. All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day
year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.20, bear interest for one day. Each
determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 

Section 2.15 Inability to Determine Interest Rates. If prior to the commencement of any Interest Period for any
Eurodollar Borrowing: 
 (a) the Administrative Agent shall have determined (which determination shall be conclusive and binding
upon the Borrower) that, by reason of circumstances affecting the relevant interbank market, adequate means do not exist for ascertaining LIBOR for such Interest Period; or 

(b) the Administrative Agent shall have received notice from the Required Lenders that the Adjusted LIBO Rate does not adequately and
fairly reflect the cost to such Lenders (or Lender, as the case may be) of making, funding or maintaining their (or its, as the case may be) Eurodollar Loans for such Interest Period; 

then the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in writing) to the Borrower and to the Lenders as soon
as practicable thereafter. In the case of Eurodollar Loans, until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) the obligations of the Lenders to make

  

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Eurodollar Revolving Loans or to continue or convert outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all such affected Loans shall be converted into Base Rate Loans
on the last day of the then current Interest Period applicable thereto unless the Borrower prepays such Loans in accordance with this Agreement. Unless the Borrower notifies the Administrative Agent at least one (1) Business Day before the date
of any Eurodollar Revolving Borrowing for which a Notice of Revolving Borrowing has previously been given that it elects not to borrow on such date, then such Revolving Borrowing shall be made as a Base Rate Borrowing. 

Section 2.16 Illegality. If any Change in Law shall make it unlawful or impossible for any Lender to make, maintain or
fund any Eurodollar Loan and such Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the Administrative Agent and
the Borrower that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Eurodollar Revolving Loans, or to continue or convert outstanding Loans as or into Eurodollar Loans, shall be suspended. In the
case of the making of a Eurodollar Revolving Borrowing, such Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Borrowing for the same Interest Period and if the affected Eurodollar Loan is then outstanding,
such Loan shall be converted to a Base Rate Loan either (a) on the last day of the then current Interest Period applicable to such Eurodollar Loan if such Lender may lawfully continue to maintain such Loan to such date or (b) immediately
if such Lender shall determine that it may not lawfully continue to maintain such Eurodollar Loan to such date. Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the Administrative Agent, designate a different
Applicable Lending Office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its discretion. 

Section 2.17 Increased Costs. 

(a) If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included
in the determination of the Adjusted LIBO Rate hereunder against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

 (ii) impose on any Lender or on the Issuing Bank or the eurodollar interbank market any other condition
affecting this Agreement or any Eurodollar Loans made by such Lender or any Letter of Credit or any participation therein; 
 and the result of
the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining a Eurodollar Loan or to increase the cost to such Lender or the Issuing Bank of participating in or issuing any Letter of Credit or to reduce
the amount received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or any other amount), then the Borrower shall promptly pay, upon written notice from and demand by such Lender on the Borrower (with a
copy of such notice and demand to the Administrative Agent), to the Administrative Agent for the account of such Lender, within five (5) Business Days after the date of such notice and demand, additional amount or amounts sufficient to
compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 
  

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 (b) If any Lender or the Issuing Bank shall have determined that on or after the date of
this Agreement any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital (or on the capital of such Lender’s or the Issuing Bank’s
parent corporation) as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation could
have achieved but for such Change in Law, then, from time to time, within five (5) Business Days after receipt by the Borrower of written demand by such Lender (with a copy thereof to the Administrative Agent), the Borrower shall pay to such
Lender such additional amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation for any such reduction suffered. 

(c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s parent corporation, as the case may be, specified in paragraph (a) or (b) of this Section 2.17 shall be delivered to the Borrower (with a copy to the Administrative Agent)
and shall be conclusive, absent manifest error. The Borrower shall pay any such Lender or the Issuing Bank, as the case may be, such amount or amounts within ten (10) days after receipt thereof. 

(d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section 2.17 shall
not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation. 

Section 2.18 Funding Indemnity. In the event of (a) the payment of any principal of a Eurodollar Loan other than
on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion or continuation of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or
(c) the failure by the Borrower to borrow, prepay, convert or continue any Eurodollar Loan on the date specified in any applicable notice (regardless of whether such notice is withdrawn or revoked), then, in any such event, the Borrower shall
compensate each Lender, within five (5) Business Days after written demand from such Lender, for any loss, cost or expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate applicable to such
Eurodollar Loan for the period from the date of such event to the last day of the then current Interest Period therefor (or in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such
Eurodollar Loan) over (ii) the amount of interest that would accrue on the principal amount of such Eurodollar Loan for the same period if the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted or the date on
which the Borrower failed to borrow, convert or continue such Eurodollar Loan. A certificate as to any additional amount payable under this Section 2.18 submitted to the Borrower by any Lender shall be conclusive, absent manifest error.

 Section 2.19 Taxes. 

(a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided, that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable under this Section 2.19) the Administrative Agent, any Lender or the Issuing Bank (as the case may be) shall receive an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

  

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 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law. 
 (c) The Borrower shall indemnify the Administrative Agent, each Lender and the
Issuing Bank, within five (5) Business Days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with respect to
any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.19) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to the Borrower by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest error. 

(d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the
Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent. 
 (e) Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be made without withholding or at a
reduced rate. Without limiting the generality of the foregoing, each Foreign Lender agrees that it will deliver to the Administrative Agent and the Borrower (or in the case of a Participant, to the Lender from which the related participation shall
have been purchased) (i) two (2) duly completed copies of Internal Revenue Service Form 1001 or 4224, or any successor form thereto, as the case may be, certifying in each case that such Foreign Lender is entitled to receive payments made
by the Borrower hereunder and under the Notes payable to it, without deduction or withholding of any United States federal income taxes and (ii) a duly completed Internal Revenue Service Form W-8 or W-9, or any successor form thereto, as the
case may be, to establish an exemption from United State backup withholding tax. Each such Foreign Lender shall deliver to the Borrower and the Administrative Agent such forms on or before the date that it becomes a party to this Agreement (or in
the case of a Participant, on or before the date such Participant purchases the related participation). In addition, each such Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such
Lender. Each such Lender shall promptly notify the Borrower and the Administrative Agent at any time that it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower (or any other form of
certification adopted by the U.S. taxing authorities for such purpose). 
 Section 2.20 Payments Generally; Pro Rata
Treatment; Sharing of Set-offs. 
 (a) The Borrower shall make each payment required to be made by it hereunder (whether
of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.17, 2.18, 2.19, or 10.3, or otherwise) and each optional prepayment permitted by Section 2.11(b) prior
to 12:00 noon, on the date when due, in immediately available funds, without set-off 
  

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or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except that
payments pursuant to Sections 2.17, 2.18, 2.19 and 10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars. 

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties. 
 (c) If any Lender shall, by exercising any right of
set-of or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Revolving Loans or participations in LC Disbursements or Swingline Loans that would result in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Revolving Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders
ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Loans and participations in LC Disbursements and Swingline Loans; provided, that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph
shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any
of its Loans or participations in LC Disbursements or Swingline Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents
to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 

(d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount or amounts due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the
case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank 

 

 32 

 
with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal
Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. 

(e) If any Lender shall fail to make any payment required to be made by it pursuant to Sections 2.5(b), 2.6(b),
2.20(d), 2.22(d) or (e) or 10.3(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the
account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 

Section 2.21 Mitigation of Obligations; Replacement of Lenders. 

(a) If any Lender requests compensation under Section 2.17, or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.19, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the sole judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under Section 2.17 or
Section 2.19, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all costs and
expenses incurred by any Lender in connection with such designation or assignment. 
 (b) If any Lender requests compensation
under Section 2.17, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority of the account of any Lender pursuant to Section 2.19, or if any Lender defaults in its obligation to
fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
set forth in Section 10.4(b) all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender); provided, that (i) the Borrower shall have
received the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal amount of all Loans owed to it,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (in the case of such outstanding principal and accrued interest) and from the Borrower (in the case of all other amounts) and (iii) in the
case of a claim for compensation under Section 2.17 or payments required to be made pursuant to Section 2.19, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make
any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

Section 2.22 Letters of Credit. 

(a) On the Closing Date, SunTrust Bank, as the Issuing Bank of the Existing Letters of Credit, in reliance upon the agreements of the
other Lenders pursuant to Section 2.22(d), agrees to continue the prior issuance of the Existing Letters of Credit on the terms and conditions set forth therein. All Existing Letters of Credit shall be deemed to have been issued pursuant
hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof. Thereafter during the Availability Period, the Issuing Bank, in reliance upon said agreements of the other Lenders pursuant to
Section 2.22(d), agrees to issue, at the request of the Borrower, Letters of Credit for the account of the Borrower or any Subsidiary Loan Party on the terms and conditions hereinafter set forth; provided, that (i) each
Letter of Credit shall expire on the earlier of (A) the date one year after the 
  

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date of issuance of such Letter of Credit (or in the case of any renewal or extension thereof, one year after such renewal or extension) and (B) the date that is five (5) Business Days
prior to the Commitment Termination Date; (ii) each Letter of Credit may be in any stated amount subject, however, to the provisions of clause (iii) hereof; and (iii) neither the Borrower nor any Subsidiary Loan Party
may request any Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC Exposure would exceed the LC Commitment or (B) the sum of the aggregate outstanding Revolving Credit Exposures of all Lenders would exceed the
Aggregate Revolving Commitments. Upon the issuance of each Letter of Credit (which, as set forth in the definition thereof, includes each Existing Letter of Credit set forth on Schedule 2.22), each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Issuing Bank without recourse a participation in such Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount available to be drawn under such Letter of Credit.
Each issuance of a Letter of Credit shall be deemed to utilize the Revolving Commitment of each Lender by an amount equal to the amount of such participation. 

(b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of an outstanding Letter of Credit), the
Borrower shall give the Issuing Bank and the Administrative Agent irrevocable written notice at least three (3) Business Days prior to the requested date of such issuance specifying the date (which shall be a Business Day) such Letter of Credit
is to be issued (or amended, extended or renewed, as the case may be), the expiration date of such Letter of Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. In addition to the satisfaction of the conditions in Article III, the issuance of such Letter of Credit (or any amendment which increases the amount of such Letter of Credit)
will be subject to the further conditions that such Letter of Credit shall be in such form and contain such terms as the Issuing Bank shall approve and that the Borrower shall have executed and delivered any additional applications, agreements and
instruments relating to such Letter of Credit as the Issuing Bank shall reasonably require; provided, that in the event of any conflict between such applications, agreements or instruments and this Agreement, the terms of this Agreement shall
control. 
 (c) At least two (2) Business Days prior to the issuance of any Letter of Credit, the Issuing Bank will confirm
with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received such notice and if not, the Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the Issuing Bank has received notice
from the Administrative Agent on or before the Business Day immediately preceding the date the Issuing Bank is to issue the requested Letter of Credit directing the Issuing Bank not to issue the Letter of Credit because such issuance is not then
permitted hereunder because of the limitations set forth in Section 2.22(a) or that one or more conditions specified in Article III are not then satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall,
on the requested date, issue such Letter of Credit in accordance with the Issuing Bank’s usual and customary business practices. 

(d) The Issuing Bank shall examine all documents purporting to represent a demand for payment under a Letter of Credit promptly following
its receipt thereof. The Issuing Bank shall notify the Borrower and the Administrative Agent of such demand for payment and whether the Issuing Bank has made or will make a LC Disbursement thereunder; provided, that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to such LC Disbursement. The Borrower shall be irrevocably and unconditionally obligated to reimburse the Issuing
Bank for any LC Disbursements paid by the Issuing Bank in respect of such drawing, without presentment, demand or other formalities of any kind. Unless the Borrower shall have notified the Issuing Bank and the Administrative Agent prior to 12:00
noon on the Business Day immediately prior to the date on which such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the 

 

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amount of such drawing in funds other than from the proceeds of Revolving Loans, the Borrower shall be deemed to have timely given a Notice of Revolving Borrowing to the Administrative Agent
requesting the Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact amount due to the Issuing Bank; provided, that for purposes solely of such Borrowing, the conditions precedents set forth in
Section 3.2 hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such Borrowing in accordance with Section 2.3, and each Lender shall make the proceeds of its Base Rate Loan included in such
Borrowing available to the Administrative Agent for the account of the Issuing Bank in accordance with Section 2.6. The proceeds of such Borrowing shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for
such LC Disbursement. 
 (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the
Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Issuing Bank) shall be obligated to fund the participation that such Lender purchased pursuant to subsection (a) in an amount
equal to its Pro Rata Share of such LC Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each Lender’s obligation to fund its participation shall be absolute and unconditional and shall not be affected by
any circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may have against the Issuing Bank or any other Person for any reason whatsoever, (ii) the
existence of a Default or an Event of Default (other than an Event of Default in existence at the time of the issuance of any Letter of Credit by the Issuing Bank of which the Issuing Bank had actual knowledge) or the termination of the Aggregate
Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other Lender, (v) any amendment, renewal or
extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. On the date that such participation is required to be funded, each Lender shall promptly transfer,
in immediately available funds, the amount of its participation to the Administrative Agent for the account of the Issuing Bank. Whenever, at any time after the Issuing Bank has received from any such Lender the funds for its participation in a LC
Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment on account thereof, the Administrative Agent or the Issuing Bank, as the case may be, will distribute to such Lender its Pro Rata Share of such payment;
provided, that if such payment is required to be returned for any reason to the Borrower or to a trustee, receiver, liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will return to the Administrative Agent or
the Issuing Bank any portion thereof previously distributed by the Administrative Agent or the Issuing Bank to it. 
 (f) To the
extent that any Lender shall fail to pay any amount required to be paid pursuant to paragraph (d) of this Section 2.22 on the due date therefor, such Lender shall pay interest to the Issuing Bank (through the Administrative Agent)
on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate; provided, that if such Lender shall fail to make such payment to the Issuing Bank within three (3) Business Days of
such due date, then, retroactively to the due date, such Lender shall be obligated to pay Default Interest on such amount. 

(g) If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative
Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an
amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided, that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (g) or (h) of Section 8.1. Such deposit shall be held by the Administrative Agent as
collateral for the payment and performance of the 
  

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obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. At the
request of the Borrower, the Administrative Agent shall hold such deposit in an interest-bearing money market demand deposit account at the Borrower’s risk and expense; otherwise, such deposit shall not bear interest. Interest and profits, if
any, on such investments shall accumulate in such account. Moneys in such account shall applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it had not been reimbursed and to the extent so applied, shall
be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, with the consent of the Required Lenders, be applied to satisfy other obligations
of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not so applied as aforesaid) shall be returned to
the Borrower with three (3) Business Days after all Events of Default have been cured or waived. 
 (h) Promptly following
the end of each fiscal quarter, the Issuing Bank shall deliver (through the Administrative Agent) to each Lender and the Borrower a report describing the aggregate Letters of Credit outstanding at the end of such fiscal quarter. Upon the request of
any Lender from time to time, the Issuing Bank shall deliver to such Lender any other information reasonably requested by such Lender with respect to each Letter of Credit then outstanding. 

(i) The Borrower’s obligation to reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be
performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever and irrespective of any of the following circumstances: 

(i) Any lack of validity or enforceability of any Letter of Credit or this Agreement; 

(ii) The existence of any claim, set-off, defense or other right which the Borrower or any Subsidiary or Affiliate of the
Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or transferee may be acting), any Lender (including the Issuing Bank) or any other Person,
whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction; 

(iii) Any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect; 
 (iv) Payment by the Issuing Bank
under a Letter of Credit against presentation of a draft or other document to the Issuing Bank that does not comply with the terms of such Letter of Credit; 

(v) Any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.22, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder; or 

(vi) The existence of a Default or an Event of Default. 

 

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 Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party of any of the
foregoing shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to
above), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error
in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided, that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of
any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise
care when determining whether drafts or other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree, that in the absence of gross negligence or willful misconduct on the part of the Issuing
Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented that appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 (j) (i) Each standby Letter of Credit shall be subject to the International Standby Practices (ISP98 – International
Chamber of Commerce Publication Number 590), as the same may be amended from time to time, and (ii) each commercial Letter of Credit shall be subject to the rules of the Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance, and (iii) each Letter of Credit, to the extent not inconsistent therewith, shall be subject to the governing law of this Agreement set forth in
Section 10.5. 
 (k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit
issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary Loan Party, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The
Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiary Loan
Parties. 
 Section 2.23 Extension of Scheduled Commitment Termination Date. 

(a) The Borrower may, by notice to the Administrative Agent (who shall promptly notify the Lenders) not earlier than ninety (90) days
and not later than thirty-five (35) days prior to the first and/or second anniversaries of this Agreement (each such anniversary being a “Modification Date”) request that each Lender extend such Lender’s Scheduled
Commitment Termination Date for an additional year from the Scheduled Commitment Termination Date then in effect hereunder (the “Existing Scheduled Commitment Termination Date”). 

(b) Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than the date
specified in the notice from the Administrative Agent (the “Notice Date”), which date shall not be earlier than ten (10) Business Days after the date of such notice and not later than twenty (20) days prior to the
applicable Modification Date, advise the Administrative Agent whether or not such Lender agrees to such extension (and each Lender that determines not to so extend its Maturity Date (a “Non-Extending Lender”) shall notify the
Administrative Agent of such fact promptly after such determination (but in any event no later than the Notice Date) and any Lender that does not so advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending
Lender). The election of any Lender to agree to such extension shall not obligate any other Lender to so agree. 
  

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 (c) The Administrative Agent shall notify the Borrower of each Lender’s determination
under this Section no later than the date fifteen (15) days prior to the Modification Date (or, if such date is not a Business Day, on the next preceding Business Day). 

(d) The Borrower shall have the right (but not the obligation) on or before the Modification Date to replace each Non-Extending Lender
with, and add as “Lenders” under this Agreement in place thereof, one or more Eligible Assignees (each, an “Additional Commitment Lender”) as provided in Section 2.21, each of which Additional Commitment
Lenders shall have entered into an Assignment and Assumption pursuant to which such Additional Commitment Lender shall, effective as of the Modification Date, undertake a Commitment (and, if any such Additional Commitment Lender is already a Lender,
its Commitment shall be in addition to such Lender’s Commitment hereunder on such date). 
 (e) If (and only if) the total
of the Commitments of the Lenders that have agreed to so extend their Scheduled Commitment Termination Date and the additional Commitments of the Additional Commitment Lenders shall be more than 50% of the aggregate amount of the Commitments in
effect immediately prior to the Modification Date, then, effective as of the Modification Date, the Scheduled Commitment Termination Date of each Extending Lender and of each Additional Commitment Lender shall be extended to the date falling one
year after the Existing Scheduled Commitment Termination Date (except that, if such date is not a Business Day, such Scheduled Commitment Termination Date as so extended shall be the next preceding Business Day) and each Additional Commitment Lender
shall thereupon become a “Lender” for all purposes of this Agreement. 
 (f) Notwithstanding the foregoing, the
extension of the Scheduled Commitment Termination Date pursuant to this Section shall not be effective with respect to any Lender unless the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the
Modification Date signed by a Responsible Officer of such Loan Party certifying: 
 (i) no Default shall have
occurred and be continuing on the date of such extension and after giving effect thereto; 
 (ii) the
representations and warranties contained in this Agreement are true and correct in all material respects on and as of the date of such extension and after giving effect thereto, as though made on and as of such date (except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date); and 

(iii) on the Scheduled Commitment Termination Date of each Non-Extending Lender, the Borrower shall prepay any Loans
outstanding on such date (and pay any additional amounts required pursuant to Section 2.18) to the extent necessary to keep outstanding Loans ratable with any revised Pro Rata Share of the respective Lenders effective as of such date.

 (g) This Section shall supersede any provisions in Section 2.20 or 10.2 to the contrary. 

 

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 ARTICLE III 

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT 

Section 3.1 Conditions To Effectiveness. The obligations of the Lenders (including the Swingline Lender) initially to
make Loans and the obligation of the Issuing Bank initially to issue any Letter of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with
Section 10.2). 
 (a) The Administrative Agent shall have received all fees and other amounts due and payable on or
prior to the Closing Date, including reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder,
under any other Loan Document and under any agreement with the Administrative Agent or Banc of America Securities, LLC, as Arranger. 

(b) The Administrative Agent (or its counsel) shall have received the following: 

(i) a counterpart of this Agreement signed by or on behalf of each party thereto or written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement; 

(ii) if requested by any Lender, duly executed Notes payable to such Lender; 

(iii) a duly executed Subsidiary Guarantee Agreement and Indemnity and Contribution Agreement; 

(iv) a certificate of the Secretary or Assistant Secretary, or manager or member, as applicable, of each Loan Party,
attaching and certifying copies of its bylaws and of the resolutions of its boards of directors, or partnership agreement or limited liability company operating agreement, or comparable organizational documents and authorizations, authorizing the
execution, delivery and performance of the Loan Documents to which it is a party and certifying the name, title and true signature of each officer of such Loan Party executing the Loan Documents to which it is a party; 

(v) certified copies of the articles of incorporation or other charter documents of each Loan Party, together with
certificates of good standing or existence, as may be available from the Secretary of State of the jurisdiction of incorporation or organization of such Loan Party and each other jurisdiction where such Loan Party is required to be qualified to do
business as a foreign corporation; 
 (vi) a favorable written opinion of Moore & Van Allen PLLC,
counsel to the Loan Parties, addressed to the Administrative Agent and each of the Lenders, and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated therein as the Administrative Agent or the
Lenders shall reasonably request; 
 (vii) a certificate in the form of Exhibit 3.1(b)(vii), dated the
Closing Date and signed by a Responsible Officer, confirming compliance with the conditions set forth in paragraphs (a), (b) and (c) of Section 3.2 and, further, demonstrating compliance with Sections 6.1 and 6.2
as of the most recent fiscal quarter ended; 
  

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 (viii) a certificate dated the Closing Date and signed by a Responsible
Officer certifying (A) that since March 31, 2007 there has been no event or condition which has had or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, and (B) as to the absence
of any action, suit, investigation or proceeding pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect;

 (ix) certified copies of all consents, approvals, authorizations, registrations or filings required to be made
or obtained by each Loan Party in connection with the Loans and any transaction being financed with the proceeds of the Loans; 

(x) duly executed payoff letters, in form and substance satisfactory to the Administrative Agent, executed by each lender
holding Indebtedness to be refinanced at closing, including but not limited to Indebtedness under the Borrower’s $100,000,000 Revolving Credit Agreement dated December 10, 2004, together with evidence satisfactory to the Administrative
Agent as to the termination of the Commitments thereunder, the payment in full of all obligations owing thereunder and the release of any and all liens and security interests securing such obligations; 

(xi) UCC, judgment and tax lien searches in the jurisdiction of the chief executive office and jurisdiction of
incorporation or organization of each Loan Party, together with copies of all financing statements on file in such jurisdictions (with all attachments) and evidence that no Liens exist on any assets or properties of any such Loan Party (other than
Liens permitted by Section 7.2); 
 (xii) a certificate of insurance issued on behalf of insurers of
each Loan Party, describing in reasonable detail the types and amounts of insurance (property and liability) maintained by such Loan Party, naming the Administrative Agent as additional insured under all liability insurance; 

(xiii) duly executed Notices of Borrowing, if applicable; and 

(xiv) a duly executed funds disbursement agreement. 

Section 3.2 Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing and of
the Issuing Bank to issue, amend, renew or extend any Letter of Credit, and the agreement of any Lender to extend the Stated Commitment Termination Date pursuant to Section 2.8 is, in each case subject to the satisfaction of the
following conditions: 
 (a) at the time of and immediately after giving effect to such Borrowing, the issuance, amendment,
renewal or extension of such Letter of Credit or the extension of the Scheduled Commitment Termination Date, as applicable, no Default or Event of Default shall exist; 

(b) all representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material
respects on and as of the date of such Borrowing, the date of issuance, amendment, extension or renewal of such Letter of Credit or the date of extension of the Scheduled Commitment Termination Date, as applicable, in each case before and after
giving effect thereto; 
  

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 (c) since the date of the most recent financial statements of the Borrower described in
Section 5.1(a) (or as to Loans and issuances on the Closing Date, since March 31, 2007), there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect; 

(d) the Borrower shall have paid all fees payable under this Agreement to the extent then due and payable; and 

(e) the Administrative Agent shall have received such other documents, certificates, information or legal opinions as the Administrative
Agent or the Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the Administrative Agent or the Required Lenders. 

Each Borrowing, each issuance, amendment, extension or renewal of any Letter of Credit and any extension of the Scheduled Commitment
Termination Date shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a), (b) and (c) of this Section 3.2. 

Section 3.3 Delivery of Documents. All of the Loan Documents, certificates, legal opinions and other documents and
papers referred to in this Article III, unless otherwise specified, shall be delivered to the Administrative Agent for the account of each of the Lenders and, except for the Notes, in sufficient counterparts or copies for each of the Lenders
and shall be in form and substance satisfactory in all respects to the Administrative Agent. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

The Borrower represents and warrants to the Administrative Agent and each Lender as follows: 

Section 4.1 Existence; Power. The Borrower and each of its Subsidiaries (i) is duly organized, validly existing
and in good standing as a corporation or other legally organized entity under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted, and (iii) is duly
qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect. 

Section 4.2 Organizational Power; Authorization. The execution, delivery and performance by each Loan Party of the
Loan Documents to which it is a party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational, and if required, stockholder or other equity owner, action. This Agreement has been duly
executed and delivered by the Borrower, and constitutes, and each other Loan Document to which any Loan Party is a party, when executed and delivered by such Loan Party, will constitute, valid and binding obligations of the Borrower or such Loan
Party (as the case may be), enforceable against it in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity. 
 Section 4.3 Governmental Approvals; No Conflicts.
The execution, delivery and performance by the Borrower of this Agreement, and by each Loan Party of the other Loan Documents to which it is a party (a) do not require any consent or approval of, registration or filing with, or any action by,
any Governmental Authority, except those as have been obtained or made and are in full 
  

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force and effect or where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (b) will not violate any applicable law
or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, material agreement
or other material instrument binding on the Borrower or any of its Subsidiaries or any of its assets (other than the Prudential Shelf Agreement) or give rise to a right thereunder to require any payment to be made by the Borrower or any of its
Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens (if any) created under the Loan Documents. 

Section 4.4 Financial Statements. The Borrower has furnished to each Lender the audited consolidated balance sheet of
the Borrower and its Subsidiaries as of December 31, 2006 and the related consolidated statements of income, shareholders’ equity and comprehensive income and cash flows for the fiscal year then ended reported on by Grant Thornton LLP,
independent certified public accountants. Such financial statements fairly present the consolidated financial condition of the Borrower and its Subsidiaries as of such date and the consolidated results of operations for such period in conformity
with GAAP consistently applied. Since December 31, 2006, there have been no changes with respect to the Borrower and its Subsidiaries which have had or could reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect.

 Section 4.5 Litigation and Environmental Matters. 

(a) Schedule 4.5(a) sets forth certain litigation which is pending against Borrower as of the Closing Date (the “Pending
Litigation”). No litigation (including the Pending Litigation), investigation or proceeding of or before any arbitrators or Governmental Authorities is pending against or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or
(ii) which in any manner draws into question the validity or enforceability of this Loan Agreement or any other Loan Document. 

(b) Except for the matters set forth on Schedule 4.5(b), neither the Borrower nor any of its Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse
Effect, (ii) has become subject to any Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (iii) has received notice of any claim with respect to any
Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or (iv) knows of any basis for any Environmental Liability that could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. 
 Section 4.6 Compliance with Laws and
Agreements. The Borrower and each Subsidiary is in compliance with (a) all applicable laws, rules, regulations and orders of any Governmental Authority, and (b) all indentures, agreements or other instruments binding upon it or its
properties, except where non-compliance, either singly or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

Section 4.7 Investment Company Act, Etc. Neither the Borrower nor any of its Subsidiaries is (a) an
“investment company”, as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended, or (b) otherwise subject to any other regulatory scheme limiting its ability to incur debt. 

 

 42 

 Section 4.8 Taxes. The Borrower and its Subsidiaries and each other
Person for whose taxes the Borrower or any Subsidiary could become liable have timely filed or caused to be filed all Federal income tax returns and all other material tax returns that are required to be filed by them, and have paid all taxes shown
to be due and payable on such returns or on any assessments made against it or its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority, except (i) to the extent the failure to
do so would not have a Material Adverse Effect or (ii) where the same are currently being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as the case may be, has set aside on its books adequate
reserves. The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of such taxes are adequate, and no tax liabilities that could be materially in excess of the amount so provided are anticipated. 

Section 4.9 Margin Regulations. The Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. Following the application of the
proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be margin stock. 

Section 4.10 ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. 

Section 4.11 Ownership of Property. 

(a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all of its real and personal property
material to the operation of its business. 
 (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise
has the right, to use, all patents, trademarks, service marks, trade names, copyrights and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe on the rights of any other
Person, except for any such infringements that, individually or in the aggregate, would not have a Material Adverse Effect. 

Section 4.12 Disclosure. The Borrower has disclosed to the Lenders all agreements, instruments, and corporate or other
restrictions to which the Borrower or any of its Subsidiaries is subject, and all other matters known to any of them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No documents, reports
(including without limitation all reports that the Borrower is required to file with the Securities and Exchange Commission), financial statements, certificates or other information furnished by or on behalf of the Borrower to the Administrative
Agent or any Lender in connection with the negotiation or syndication of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by any other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein, taken as a whole, in light of the circumstances under which they were made, not misleading. 

Section 4.13 Labor Relations. There are no strikes, lockouts or other material labor disputes or grievances against
the Borrower or any of its Subsidiaries, or, to the Borrower’s knowledge, threatened against or affecting the Borrower or any of its 

 

 43 

 
Subsidiaries, and no significant unfair labor practice, charges or grievances are pending against the Borrower or any of its Subsidiaries, or to the Borrower’s knowledge, threatened against
any of them before any Governmental Authority. All payments due from the Borrower or any of its Subsidiaries pursuant to the provisions of any collective bargaining agreement have been paid or accrued as a liability on the books of the Borrower or
any such Subsidiary, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

Section 4.14 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will
have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable
against each Loan Party that is party thereto in accordance with its terms. 
 Section 4.15 No Default.
Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has
occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document. 

Section 4.16 Solvency. Each of the Loan Parties is Solvent and, in executing the Loan Documents and consummating the
transactions contemplated thereby, none of the Loan Parties intends to hinder, delay or defraud either present or future creditors or other Persons to which one or more of the Loan Parties is or will become indebted. 

Section 4.17 Senior Debt. The Obligations constitute senior debt for purposes of all subordinated debt facilities, if
any. 
 Section 4.18 Principal Places of Business and Subsidiaries. Schedule 4.18 sets forth the name
of, the chief executive office of, the principal place of business of, the ownership interest of the Borrower in, the jurisdiction of organization of, and the type of, each Subsidiary, in each case as of the Closing Date, and the chief executive
office and principal place of business of the Borrower. 
 Section 4.19 Insurance. The properties of the
Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts (after giving effect to any self-insurance compatible with the following standards), with such
deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 

ARTICLE V 

AFFIRMATIVE COVENANTS 

The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of and interest on any Loan or
any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 
 Section 5.1 Financial
Statements and Other Information. The Borrower will deliver to the Administrative Agent: 
  

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 (a) as soon as available and in any event within seventy-five (75) days after the end
of each fiscal year of Borrower, a copy of the annual audited report for such fiscal year for the Borrower and its Subsidiaries, containing a consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal year and the
related consolidated statements of income, stockholders’ equity and cash flows (together with all footnotes thereto) of the Borrower and its Subsidiaries for such fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and reported on by independent public accountants of nationally recognized standing (without a “going concern” or like qualification or exception, and without any qualification or exception
not acceptable to Lenders in their sole discretion) to the effect that such financial statements present fairly in all material respects the financial condition and the results of operations of the Borrower and its Subsidiaries for such fiscal year
on a consolidated basis in accordance with GAAP and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards; 

(b) as soon as available and in any event within forty (40) days after the end of each of the first three (3) fiscal quarters
of each fiscal year of the Borrower, an unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal quarter and the related unaudited consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for such fiscal quarter and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding quarter and the corresponding portion of Borrower’s previous fiscal year,
all certified by the chief financial officer or treasurer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP, subject to normal year-end audit adjustments and the absence of footnotes; 
 (c) concurrently with the delivery of the
financial statements referred to in clauses (a) and (b) above, (i) a certificate of a Responsible Officer, (A) certifying as to whether there exists a Default or Event of Default on the date of such certificate, and if a Default
or an Event of Default then exists, specifying the details thereof and the action which the Borrower has taken or proposes to take with respect thereto and (B) stating whether any change in GAAP or the application thereof has occurred since the
date of the Borrower’s audited financial statements referred to in Section 4.4 and, if any change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, and (ii) a
certificate of a Responsible Officer in the form of Exhibit 5.1(c) (the “Compliance Certificate”) setting forth in reasonable detail calculations demonstrating compliance with Article VI; 

(d) promptly following any request therefor, copies of all periodic and other reports, proxy statements and other materials filed with
the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all functions of said Commission, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be;
and 
 (e) promptly following any request therefor, such other information regarding the results of operations, business affairs
and financial condition of the Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request. 

Documents required to be delivered pursuant to Section 5.1(a) or (b) or Section 5.2(d) (to the extent
any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a
link thereto on the Borrower’s website on the Internet at the website address listed in Section 10.1; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); 

 

 45 

 
provided that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a
written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper
copies of the Compliance Certificates required by Section 5.1(c) to the Administrative Agent. Except for such Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies
of such documents. 
 The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will make
available to the Lenders and the Issuing Bank materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar
electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its
Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities. The Borrower hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking
Borrower Materials “PUBLIC”, the Borrower shall be deemed to have authorized the Administrative Agent, the Arranger, the Issuing Bank and the Lenders to treat such Borrower Materials as not containing any material non-public information
with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in
Section 10.11); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Administrative Agent and the Arranger
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor”. 

Section 5.2 Notices of Material Events. The Borrower will furnish to the Administrative Agent and each Lender prompt
written notice of the following: 
 (a) the occurrence of any Default or Event of Default; 

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or, to the
knowledge of the Borrower, affecting the Borrower or any Subsidiary which, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 

(c) the occurrence of any event or any other development by which the Borrower or any of its Subsidiaries (i) fails to comply with
any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) becomes subject to any Environmental Liability, (iii) receives notice of any claim with respect to
any Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the preceding clauses (i) through (iv), which individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect; 
  

 46 

 (d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events
that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $1,000,000; 

(e) any change in the fiscal year of the Borrower or any Subsidiary, except to change the fiscal year of a Subsidiary to conform its
fiscal year to that of the Borrower; and 
 (f) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect. 
 Each notice delivered under this Section 5.2 shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

Section 5.3 Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause
to be done all things necessary to preserve, renew and maintain in full force and effect its legal existence and its respective rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and trade names material to the
conduct of its business and will continue to engage in the same business as presently conducted or such other businesses that are reasonably related thereto; provided, that nothing in this Section 5.3 shall prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 7.3. 
 Section 5.4 Compliance with
Laws, Etc. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and requirements of any Governmental Authority applicable to its properties, except where the failure to do so, either
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

Section 5.5 Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay and discharge
at or before maturity, all of its obligations and liabilities (including without limitation all tax liabilities and claims that could result in a statutory Lien) before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to
make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 

Section 5.6 Books and Records. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of Borrower in conformity
with GAAP. 
 Section 5.7 Visitation, Inspection, Etc. The Borrower will, and will cause each of its
Subsidiaries to, permit any representative of the Administrative Agent or any Lender, to visit and inspect its properties, to examine its books and records and to make copies and take extracts therefrom, and to discuss its affairs, finances and
accounts with any of its officers and with its independent certified public accountants, all at such reasonable times and as often as the Administrative Agent or any Lender may reasonably request after reasonable prior notice to the Borrower.

 Section 5.8 Maintenance of Properties; Insurance. The Borrower will, and will cause each of its
Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear except where the failure to do so, either individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect and (b) maintain with financially sound and reputable insurance companies, insurance with respect to its properties 

 

 47 

 
and business, and the properties and business of its Subsidiaries, in amounts and against loss or damage of the kinds customarily insured against by companies in the same or similar businesses
operating in the same or similar locations, in each instance, reasonably acceptable to the Administrative Agent. 

Section 5.9 Use of Proceeds and Letters of Credit. The Borrower will use the proceeds of all Loans to refinance
existing Indebtedness on the Closing Date and thereafter to finance working capital needs, Capital Expenditures, acquisitions and for other general corporate purposes of the Borrower and its Subsidiaries. No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that would violate any rule or regulation of the Board of Governors of the Federal Reserve System, including Regulations T, U or X. All Letters of Credit will be used for general corporate
purposes. 
 Section 5.10 Additional Subsidiaries. Except as to any Subsidiary formed by the Borrower after
the Closing Date and having assets with a total value of less than $500,000, if any additional Subsidiary is acquired or formed by the Borrower after the Closing Date, the Borrower will, within thirty (30) Business Days after such Subsidiary is
acquired or formed or acquires or maintains assets with a total value of $500,000 or more, notify the Administrative Agent and the Lenders thereof and will cause such Subsidiary to become a Subsidiary Loan Party by executing agreements in the form
of Annex I to Exhibit D and Annex I to Exhibit E in form and substance satisfactory to the Administrative Agent and the Required Lenders and will cause such Subsidiary to deliver simultaneously therewith similar documents
applicable to such Subsidiary required under Section 3.1(b)(iv), (v), (vi), (viii), (xi) and (xii) as reasonably requested by the Administrative Agent. 

Section 5.11 Environmental Laws. 

(a) The Borrower shall, and shall cause each of its Subsidiaries to, conduct its operations and keep and maintain its property in
compliance in all material respects with all Environmental Laws, except to the extent that the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 

(b) Upon written request of the Administrative Agent or any Lender, the Borrower shall submit and cause each of its Subsidiaries to
submit, to the Administrative Agent and such Lender, at the Borrower’s sole cost and expense and at reasonable intervals, a report providing an update of the status any environmental, health or safety compliance obligation, remedial obligation
or liability, that could, individually or in the aggregate, result in liability in excess of $5,000,000. 
 Section 5.12
Gemaire Caribe. If after the Closing Date, Gemaire Caribe (a) obtains assets, (b) commences business operations, or (c) receives any Investment from the Borrower or any other Subsidiary, such that if Gemaire Caribe were a
newly formed or acquired Subsidiary it would be required to become a Subsidiary Loan Party pursuant to Section 5.10, the Borrower will, within thirty (30) Business Days after the occurrence of any event described in clauses (a),
(b) or (c) above, notify the Administrative Agent and the Lenders thereof and will cause Gemaire Caribe to become a Subsidiary Loan Party by executing agreements in the form of Annex I to Exhibit D and Annex I to
Exhibit E in form and substance satisfactory to the Administrative Agent and the Required Lenders and will cause Gemaire Caribe to deliver simultaneously therewith similar documents applicable to Gemaire Caribe required under
Section 3.1(b)(iv), (v), (vi), (viii), (xi) and (xii) as reasonably requested by the Administrative Agent. 

 

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 ARTICLE VI 

FINANCIAL COVENANTS 

The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of or interest on or any Loan
remains unpaid or any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 

Section 6.1 Leverage Ratio. The Borrower and its Subsidiaries will have, as of the end of each fiscal quarter of the
Borrower, commencing with the fiscal quarter ended June 30, 2007, a Leverage Ratio of not greater than 3.50:1.00, calculated on a rolling four-quarter basis. 

Section 6.2 Interest Coverage Ratio. The Borrower and it Subsidiaries will have, as of the end of each fiscal quarter
of the Borrower, commencing with the fiscal quarter ended June 30, 2007, an Interest Coverage Ratio of not less than 3.00:1.00, calculated on a rolling four-quarter basis. 

ARTICLE VII 

NEGATIVE COVENANTS 

The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of or interest on any Loan
remains unpaid or any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 

Section 7.1 Indebtedness. The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume
or suffer to exist any Indebtedness, except: 
 (a) Indebtedness created pursuant to the Loan Documents; 

(b) Indebtedness existing on the date hereof and set forth on Schedule 7.1 and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof (immediately prior to giving effect to such extension, renewal or replacement) or shorten the maturity or the weighted average life thereof; 

(c) Indebtedness of the Borrower owing to any Subsidiary Loan Party and of any Subsidiary Loan Party owing to the Borrower or any other
Subsidiary Loan Party; 
 (d) Private Placement Debt or other Indebtedness incurred after the date hereof in an aggregate
principal amount not to exceed $200,000,000 at any time outstanding; provided, however, that no Indebtedness may be incurred under the Prudential Shelf Agreement until such agreement has been amended to the Administrative Agent’s
satisfaction to eliminate any negative covenants in conflict with or more restrictive than those contained herein; 
 (e)
Indebtedness in respect of obligations under Hedging Agreements permitted by Section 7.10; and 
 (f) Indebtedness
in respect of any Securitization Transaction permitted by Section 7.6(c). 
  

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 Section 7.2 Negative Pledge. The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien on any of its assets or property now owned or hereafter acquired, except: 

(a) Liens, if any, created in favor of the Administrative Agent for the benefit of the Lenders pursuant to the Loan Documents; 

(b) Permitted Encumbrances; 

(c) any Liens on any property or asset of the Borrower or any Subsidiary existing on the Closing Date set forth on Schedule 7.2;
provided, that such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary; 
 (d)
purchase money Liens upon or in any fixed or capital assets to secure the purchase price or the cost of construction or improvement of such fixed or capital assets or to secure Indebtedness incurred solely for the purpose of financing the
acquisition, construction or improvement of such fixed or capital assets (including Liens securing any Capital Lease Obligations); provided, that (i) the principal amount of the Indebtedness secured by such Liens does not exceed
$20,000,000 in the aggregate at any time outstanding, (ii) such Liens attach to such assets concurrently or within ninety (90) days after the acquisition, improvement or completion of the construction thereof; (iii) such Liens do not
extend to any other assets; and (iv) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets; 

(e) any Lien (i) existing on any asset of any Person at the time such Person becomes a Subsidiary of the Borrower,
(ii) existing on any asset of any Person at the time such Person is merged with or into the Borrower or any Subsidiary of the Borrower or (iii) existing on any asset prior to the acquisition thereof by the Borrower or any Subsidiary of the
Borrower; provided, that any such Lien was not created in the contemplation of any of the foregoing and any such Lien secures only those obligations which it secures on the date that such Person becomes a Subsidiary or the date of such merger
or the date of such acquisition; 
 (f) any Lien arising out of any Securitization Transaction permitted by
Section 7.6(c); 
 (g) extensions, renewals, or replacements of any Lien referred to in paragraphs (a) through
(f) of this Section 7.2; provided, that the principal amount of the Indebtedness secured thereby is not increased and that any such extension, renewal or replacement is limited to the assets originally encumbered thereby; and

 (h) other Liens arising in the ordinary course of business of the Borrower or any Subsidiary of the Borrower, as applicable;
provided, that the principal amount of the Indebtedness secured by such Liens shall not exceed $20,000,000 in the aggregate at any time outstanding. 

For purposes of this Section, the entry by the Borrower or any of its Subsidiaries into a true lease or true bailment arrangement which contains a
provision purporting to grant a lien in the event that such arrangement is determined not to constitute a true lease or true bailment and the filing of a precautionary UCC financing statement in connection therewith shall not constitute the
creation, incurrence, assumption or sufference of a Lien unless, under applicable law, such arrangement is determined not to constitute a true lease or true bailment arrangement and a security interest or other interest in or lien on property or
assets of the Borrower or its Subsidiaries has in fact been granted or deemed to have been granted. 
  

 50 

 Section 7.3 Fundamental Changes. 

(a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate into any other Person, or permit any other
Person to merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single transaction or a series of transactions) all or substantially all of its assets (in each case, whether now owned or hereafter acquired) or all
or substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or hereafter acquired) or liquidate or dissolve; provided, that if at the time thereof and immediately after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing (i) the Borrower or any Subsidiary may merge with a Person if the Borrower (or such Subsidiary if the Borrower is not a party to such merger) is the surviving Person (provided that in the
case of an Acquisition permitted by Section 7.4 by a Subsidiary Loan Party, the acquired company may be the surviving Person so long as such acquired company becomes a Subsidiary Loan Party as required by Section 5.10),
(ii) any Subsidiary may merge into another Subsidiary; provided, that (A) if any party to such merger is a Subsidiary Loan Party, the Subsidiary Loan Party shall be the surviving Person (and if the non-surviving Subsidiary was also
a Subsidiary Loan Party, the Administrative Agent, upon such event and at the request and expense of the Borrower and/or the surviving Subsidiary Loan Party, will execute such documents as shall be acceptable to the Administrative Agent and its
counsel releasing the non-surviving Subsidiary Loan Party from its obligations under the Subsidiary Guarantee Agreement) or (B) if any party to such merger is not a Subsidiary Loan Party, the surviving Person shall execute and deliver to the
Administrative Agent an agreement guaranteeing payment of the Obligations in form and substance satisfactory to the Administrative Agent and the Required Lenders, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of all or
substantially all of its assets to the Borrower or to a Subsidiary Loan Party, and (iv) any Subsidiary (other than a Subsidiary Loan Party) may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution
is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; provided, that any such merger involving a Person that is not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted
unless also permitted by Section 7.4. 
 (b) The Borrower will not, and will not permit any of its Subsidiaries to,
engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto. 

Section 7.4 Investments, Loans, Capital Expenditures, Etc. 

(a) The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger
with any Person that was not a wholly-owned Subsidiary prior to such merger), any common stock, evidence of indebtedness or other securities (including any option, warrant, or other right to acquire any of the foregoing) of, make or permit to exist
any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person (all of the foregoing being collectively called “Investments”), or purchase or
otherwise acquire (in one transaction or a series of transactions) any assets of any other Person that constitute a business unit, except: 

(i) Investments (other than Permitted Investments) existing on the date hereof and set forth on Schedule 7.4
(including Investments in Subsidiaries); 
 (ii) Permitted Investments; 

(iii) Guarantees constituting Indebtedness permitted by Section 7.1; 

 

 51 

 (iv) Investments in Subsidiary Loan Parties and in repurchases of the
capital stock of the Borrower to the extent otherwise permitted hereunder; 
 (v) Loans or advances to employees,
officers or directors of the Borrower or any Subsidiary in the ordinary course of business for travel, relocation and related expenses; 

(vi) Hedging Agreements permitted by Section 7.10; 

(vii) the purchase or other acquisition of a controlling equity interest in another Person (including the purchase of an
option, warrant, convertible or similar type security to acquire such a controlling interest at the time it becomes exercisable by the holder thereof), whether by purchase of such equity interest or upon exercise of an option or warrant for, or
conversions of securities into, such equity interest, or the purchase or other acquisition (in one transaction or a series of transactions) of any assets of any other Person that constitute a business unit (each, an
“Acquisition”), provided, that: (i) the Person to be (or whose assets are to be) so purchased or acquired does not oppose such Acquisition, (ii) the line or lines of business of the Person to be (or whose assets are
to be) so purchased or acquired are substantially the same as the Major Subsidiaries and their lines of business, (iii) prior to and immediately after giving effect to such Acquisition, no Default or Event of Default shall have occurred and be
continuing, (iv) if the costs of such Acquisition exceed $50,000,000, the Borrower shall have furnished to the Administrative Agent pro forma historical financial statements as of the end of the most recently completed fiscal period of the
Borrower (whether quarterly or year end) giving effect to such Acquisition and assuming that any Indebtedness incurred to effect such Acquisition shall be deemed to have been outstanding during the four full consecutive fiscal quarter period of the
Borrower preceding such Acquisition and to have borne a rate of interest during such period equal to that rate in existence at the date of determination, together with a certificate of a Responsible Officer, in the form of Exhibit 5.1(c),
prepared on a historical pro forma basis giving effect to such Acquisition as of the most recent fiscal quarter of the Borrower then ended, which certificate shall demonstrate that no Default or Event of Default would exist immediately after giving
effect thereto, and (vi) the Person acquired shall be a Subsidiary, or be merged into or with the Borrower or one of its Subsidiaries, immediately upon consummation of the Acquisition (or if assets are being purchased or acquired, the acquirer
shall be the Borrower or one of its Subsidiaries); 
 (viii) Investments of any Person acquired in an Acquisition
permitted under Section 7.4(a)(viii); and 
 (ix) additional Investments in other Persons,
provided, that (i) the aggregate costs incurred in making such Investments (reduced by cash dividends or other cash payments received on or in consideration of such Investments) shall not exceed $100,000,000 in the aggregate at any time
and (ii) prior to and immediately after giving effect to such Investment, no Default or Event of Default shall have occurred and be continuing. 

(b) The Borrower will not, and will not permit any of its Subsidiaries to, make Capital Expenditures in the aggregate in excess of
$60,000,000 during any fiscal year of the Borrower. 
  

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 Section 7.5 Restricted Payments. The Borrower will not, and will not
permit its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on any class of its stock, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, retirement, defeasance or other acquisition of, any shares of common stock or Indebtedness subordinated to the Obligations of the Borrower or any options, warrants, or other rights to purchase such common stock or such Indebtedness,
whether now or hereafter outstanding (each, a “Restricted Payment”), except: 
 (a) the Borrower and its
Subsidiaries may make Restricted Payments, if (i) both before and after giving effect to such Restricted Payment no Default shall have occurred or be continuing and (ii) after giving pro forma effect to such Restricted Payment, the
Borrower’s Leverage Ratio is less than 2.00 to 1.00; 
 (b) if after giving pro forma effect to a Restricted Payment, the
Borrower’s Leverage Ratio is greater than or equal to 2.00 to 1.00, the Borrower and its Subsidiaries may make the following Restricted Payments: (1) dividends payable by the Borrower solely in shares of any class of its common stock,
(2) Restricted Payments made by any Subsidiary to the Borrower or to another Subsidiary Loan Party, (3) dividends paid by any Subsidiary to Borrower or to another Subsidiary that is its direct parent and (4) cash dividends paid on,
and cash redemptions of, the common stock of the Borrower provided, that (i) no Default or Event of Default has occurred and is continuing at the time such dividend is paid or redemption is made, and (ii) the aggregate amount of all
such Restricted Payments does not exceed the sum of (A) $100,000,000 plus (B) fifty percent (50%) of Consolidated Net Income (if greater than $0) earned year to date as of the most recently ended fiscal quarter (except that in the
case of the third and fourth fiscal quarters of 2007, such calculation of Consolidated Net Income shall run from July 1, 2007 rather than the prior year end), and further, provided, if such Restricted Payments in any fiscal year
are less than hereby permitted for such fiscal year, the excess permitted amount for such fiscal year may be carried forward to any succeeding fiscal period. 

Section 7.6 Sale of Assets. The Borrower will not, and will not permit any of its Subsidiaries to, convey, sell,
lease, assign, transfer or otherwise dispose of, any of its assets, business or property, whether now owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s common stock to any Person other
than the Borrower or a Subsidiary Loan Party (or to qualify directors if required by applicable law), except: 
 (a) the sale or
other disposition for fair market value of obsolete or worn out property or other property not necessary for the principal business operations disposed of in the ordinary course of business; 

(b) the sale of inventory and Permitted Investments in the ordinary course of business; 

(c) the sale or other disposition of such assets in connection with any Securitization Transaction in an aggregate amount not to exceed
$100,000,000 at any time during the term of this Agreement; 
 (d) [Reserved]; 

(e) the sale, without recourse, other than for misrepresentation, by any Subsidiary of the Borrower of accounts receivable having a
value, net of all allowances and discounts, not to exceed during any fiscal year of the Borrower an aggregate Dollar value of $25,000,000 for all such sales, which receivables shall be payable by Persons who are not United States citizens or
organized and existing under the laws of the United States or a state or territory thereof; and 
  

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 (f) the sale or other disposition of such assets in an aggregate amount not to exceed
$50,000,000 in any fiscal year of the Borrower. 
 Section 7.7 Transactions with Affiliates. The Borrower
will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of
its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties,
(b) transactions between or among the Borrower and Subsidiary Loan Parties not involving any other Affiliates, and (c) any Restricted Payment permitted by Section 7.5. 

Section 7.8 Restrictive Agreements. The Borrower will not, and will not permit any Subsidiary to, directly or
indirectly, enter into, incur or permit to exist any agreement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit any Lien upon any of its assets or properties,
whether now owned or hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to its common stock, to make or repay loans or advances to the Borrower or any other Subsidiary, to Guarantee
Indebtedness of the Borrower or any other Subsidiary or to transfer any of its property or assets to the Borrower or any Subsidiary of the Borrower; provided, that (i) the foregoing shall not apply to restrictions or conditions imposed
(A) by law, (B) by this Agreement or any other Loan Document, (C) by the documents governing the Private Placement Debt, (D) by documents listed on Schedule 7.8 hereto or (E) by any documents creating a Permitted
Lien, (ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that
is sold and such sale is permitted hereunder, (iii) clause (a) shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions and conditions apply
only to the property or assets securing such Indebtedness, and (iv) clause (a) shall not apply to customary provisions in leases and other contracts restricting the assignment thereof. 

Section 7.9 Sale and Leaseback Transactions. The Borrower will not, and will not permit any of the Subsidiaries to,
enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes as the property sold or transferred, except for the sale and leaseback of properties in an aggregate amount not to exceed $30,000,000 in any fiscal year of the Borrower.

 Section 7.10 Hedging Agreements. The Borrower will not, and will not permit any of the Subsidiaries to,
enter into any Hedging Agreement, other than Hedging Agreements which are non-speculative in purpose and nature and are entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in
the conduct of its business or the management of its liabilities. Solely for the avoidance of doubt, the Borrower acknowledges that a Hedging Agreement entered into for speculative purposes or of a speculative nature (which shall be deemed to
include any Hedging Agreement under which the Borrower or any of the Subsidiaries is or may become obliged to make any payment (i) in connection with the purchase by any third party of any common stock or any Indebtedness or (ii) as a
result of changes in the market value of any common stock or any Indebtedness) is not a Hedging Agreement entered into in the ordinary course of business to hedge or mitigate risks. 

 

 54 

 Section 7.11 Amendment to Material Documents. The Borrower will not, and
will not permit any Subsidiary to, amend, modify or waive any of its rights under (a) its certificate of incorporation, bylaws or other organizational documents in a manner materially adverse to the Lenders or (b) any Material Agreement in
a manner that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
 Section 7.12
Accounting Changes. The Borrower will not, and will not permit any Subsidiary to, make any significant change in accounting treatment or reporting practices, except as required or, with the approval of the Required Lenders, as permitted,
by GAAP, or change the fiscal year of the Borrower or any Subsidiary, except to change the fiscal year of a Subsidiary to conform its fiscal year to that of the Borrower. 

Section 7.13 [Reserved]. 

Section 7.14 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally
incurred for such purpose, other than the purchase of the capital stock of ACR Group, Inc. pursuant to the Borrower’s tender offer made on July 9, 2007. 

Section 7.15 Prepayments. Except in connection with payment of the Obligations in accordance with the Loan Documents,
make any prepayment, redemption, defeasance, purchase, acquisition or other payment in violation of any subordination terms of any Indebtedness which is subject to an intercreditor and/or subordination agreement. 

Section 7.16 Amendments to Material Indebtedness Agreements. Enter into or suffer to exist any amendment or
modification (a) to the amortization schedule or prepayment provisions (excluding the waiver of any prepayment premium or penalty) of the Indebtedness created under the Material Indebtedness Agreements or (b) to any other terms or
conditions contained in the Material Indebtedness Agreements if such modification (i) would conflict with or be more restrictive than the terms or provisions of this Agreement in any material respect, (ii) would provide for collateral
security for such Indebtedness in excess of that provided under such agreements as of the Closing Date, (iii) would expand any negative pledge provision provided for therein, or (iv) would alter any provision of the events of default under
those agreements. 
 ARTICLE VIII 

EVENTS OF DEFAULT 

Section 8.1 Events of Default. If any of the following events (each an “Event of
Default”) shall occur: 
 (a) the Borrower shall fail to pay any principal of any Loan or of any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment or otherwise; or 

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount payable under clause
(a) of this Article VIII) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; or 

 

 55 

 (c) any representation or warranty made or deemed made by or on behalf of the Borrower or
any Subsidiary in or in connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in any certificate, report, financial statement or other
document submitted to the Administrative Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in connection with this Agreement or any other Loan Document shall prove to be incorrect in any material respect
when made or deemed made or submitted; or 
 (d) the Borrower shall fail to observe or perform any covenant or agreement
contained in Sections 5.1(a), (b), (c), (d), and (e), 5.2, 5.3 (with respect to the Borrower’s legal existence unless, in the case of any involuntary administrative dissolution of the Borrower,
such failure to preserve, renew or maintain its legal existence is remedied within ten (10) days after the earlier of (i) any Responsible Officer of the Borrower becomes aware of such failure, or (ii) notice thereof shall have been
given to the Borrower by the Administrative Agent or any Lender, provided, that until the Borrower’s legal existence is lawfully reinstated by the appropriate Governmental Authority, the Lenders or the Issuing Bank, as applicable, may
withhold any further Borrowing or issuance of any additional Letter of Credit), 5.7, 5.9, 5.10, 5.11 or Articles VI or VII; or 

(e) any Loan Party shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those referred to
in clauses (a), (b) and (d) above), and such failure shall remain unremedied for thirty (30) days after the earlier of (i) any Responsible Officer of the Borrower becomes aware of such failure, or (ii) notice thereof shall
have been given to the Borrower by the Administrative Agent or any Lender; 
 (f) the Borrower or any of its Subsidiaries shall
default in the performance or observance of any term, condition or provision of any Material Agreement that results in, or could reasonably be expected to result in, a Material Adverse Effect; or 

(g) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other surety) shall fail to pay any principal of or
premium or interest on any Material Indebtedness that is outstanding, when and as the same shall become due and payable (whether at scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after
the applicable grace period, if any, specified in the agreement or instrument evidencing such Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument relating to such Indebtedness and shall continue
after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be
declared to be due and payable, required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any offer to prepay, redeem, purchase or defease such Indebtedness shall be
required to be made, in each case prior to the stated maturity thereof; or 
 (h) the Borrower or any Subsidiary shall
(i) commence a voluntary case or other proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the
appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any substantial part of its property, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (i) of this Section 8.1(h), (iii) apply for or consent to the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any such Subsidiary or for a
substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the
purpose of effecting any of the foregoing; or 
  

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 (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or any substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency or other similar law now or
hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and in any such case, such proceeding or petition
shall remain undismissed for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or 

(j) the Borrower or any Subsidiary shall become unable to pay, shall admit in writing its inability to pay, or shall fail to pay, its
debts as they become due; or 
 (k) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken
together with other ERISA Events that have occurred, could reasonably be expected to result in liability to the Borrower and the Subsidiaries in an aggregate amount exceeding $1,000,000; or 

(l) any judgment or order for the payment of money where the amount not covered by insurance exceeds $5,000,000 individually or in the
aggregate shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a period of thirty
(30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 

(m) any non-monetary judgment or order shall be rendered against the Borrower or any Subsidiary that could reasonably be expected to have
a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 

(n) a Change in Control shall occur or exist; or 

(o) any provision of any Subsidiary Guarantee Agreement shall for any reason cease to be valid and binding on, or enforceable against,
any Subsidiary Loan Party, or any Subsidiary Loan Party shall so state in writing, or any Subsidiary Loan Party shall seek to terminate its Subsidiary Guarantee Agreement; or 

(p) any provision of any other Loan Document, at any time after its execution and delivery and for any reason other than as expressly
permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests in any manner the validity or enforceability of any Loan Document; or any Loan Party denies that it
has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; or 

(q) an event of default shall have occurred under any other Loan Document; 

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Section 8.1)
and at any time thereafter during the continuance of such event, the Administrative Agent may, and upon the written request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different
times: (i) terminate the Commitments, whereupon the Commitment of each Lender shall terminate immediately; (ii) declare the principal of and any accrued interest on the Loans, and all other Obligations (except obligations in respect of any
interest rate Hedging Agreement to which a Lender is a counterparty and such Lender has requested otherwise in writing to the Administrative Agent) owing hereunder, to be, whereupon the same shall become, due and payable immediately, without
presentment, demand, protest or other notice of any kind, 
  

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all of which are hereby waived by the Borrower and (iii) exercise all remedies contained in any other Loan Document; and that, if an Event of Default specified in either clause (h) or
(i) shall occur, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon, and all fees, and all other Obligations shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
 ARTICLE IX 

 THE ADMINISTRATIVE AGENT 

Section 9.1 Appointment and Authority. Each of the Lenders and the Issuing Bank hereby irrevocably appoints Bank of
America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and the Borrower
shall not have rights as a third party beneficiary of any of such provisions. 
 Section 9.2 Delegation of
Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The
Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to
the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 Section 9.3 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the Issuing Bank
acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder. 
 Section 9.4 Exculpatory Provisions. Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 

(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and 
  

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 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its
Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 10.2 and 8.1) or (ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the Issuing Bank. 
 The Administrative Agent shall
not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or
other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any
Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article III or
elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 

Section 9.5 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be
genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing
Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of
such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
 Section 9.6 The
Administrative Agent in its Individual Capacity. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not
the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual
capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. 
  

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 Section 9.7 Resignation of Administrative Agent. Administrative Agent may
at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30
days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth
above; provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and
(1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 10.3 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any
of them while the retiring Administrative Agent was acting as Administrative Agent. 
 Any resignation by Bank of America as
Administrative Agent pursuant to this Section shall also constitute its resignation as Issuing Bank and Swingline Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank and Swingline Lender, (b) the retiring Issuing Bank and Swingline Lender shall be discharged from all of their respective duties and
obligations hereunder or under the other Loan Documents, and (c) the successor Issuing Bank shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to the retiring Issuing Bank to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of Credit. 

Section 9.8 No Other Duties, etc. Anything herein to the contrary notwithstanding, the Sole Book Manager, Sole Lead
Arranger or [other titles as necessary] listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative
Agent, a Lender or the Issuing Bank hereunder. 
 ARTICLE X 

MISCELLANEOUS 

Section 10.1 Notices; Electronic Communications. 

(a) Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other
communications to any party herein to be effective 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: 

 

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	To the Borrower:	  	Watsco, Inc.
		  	2665 South Bayshore Drive, Suite 901
		  	Coconut Grove, Florida 33133
		  	Attention: Ana M. Menendez
		  	         Chief Financial Officer

		  	Facsimile: (305) 858-6898
		  	Website: www.watsco.com
		
	With a copy to:	  	Moore & Van Allen PLLC
		  	100 North Tryon Street, Suite 4700
		  	Charlotte, North Carolina 28202
		  	Attention: Stephen Hope, Esquire
		  	Facsimile: (704) 378-2036

  

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	To the Administrative Agent or the Swingline Bank:	  	Bank of America, N.A.
		  	100 N. Tryon Street
		  	Mail Code: NC1-001-04-39
		  	Charlotte, North Carolina 28255
		  	Attention: Sabrina D. Miles
		  	Telephone: (704) 388-1043
		  	Facsimile: (704) 719-8762
		  	Email: sabrina.d.miles@bankofamerica.com
		
	With a copy in each case to:	  	Bank of America, N.A.
		  	Agency Management
		  	100 Federal Street
		  	Mail Code: MA5-100-12-02
		  	Boston, Massachusetts 02110
		  	Attention: Tamisha Eason
		  	Telephone: (617) 434-9205
		  	Facsimile: (617) 790-1284
		  	Email: tamisha.eason@bankofamerica.com
		
	To the Issuing Bank:	  	Bank of America, N.A.
		  	Trade Operations
		  	1 Fleet Way
		  	Mail Code: PA6-580-02-30
		  	Scranton, Pennsylvania
		  	Attention: Alfonso Malave
		  	Telephone: (570) 330-4212
		  	Facsimile: (570) 330-4186
		  	Email: alfonso.malave@bankofamerica.com
		
	To any other Lender:	  	the address set forth in the Administrative Questionnaire

Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All such
notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if mailed, upon the fifth
Business Day after the date deposited into the mails or if delivered, upon delivery; provided, that notices delivered to the Administrative Agent, the Issuing Bank or the Swingline Bank shall not be effective until actually received by such
Person at its address specified in this Section 10.1. 
 (b) Any agreement of the Administrative Agent and the
Lenders herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Borrower. The Administrative Agent and the Lenders shall be entitled to rely on the authority of any Person purporting to be
a Person authorized by the Borrower to give such notice and the Administrative Agent and Lenders shall not have any liability to the Borrower or other Person on account of any action taken or not taken by the Administrative Agent or the Lenders in
reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all other Obligations hereunder shall not be affected in any way or to any extent by any failure of the Administrative Agent and the Lenders to
receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent and the Lenders of a confirmation which is at variance with the terms understood by the Administrative Agent and the Lenders to be
contained in any such telephonic or facsimile notice. 
  

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 (c) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply
to notices to any Lender or the Issuing Bank pursuant to Article II if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of
such procedures may be limited to particular notices or communications. 
 Unless the Administrative Agent otherwise prescribes,
(i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. 

(d) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO
NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.
In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender, the Issuing Bank or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any Lender, the Issuing Bank or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages). 

Section 10.2 Waiver; Amendments. 

(a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or any
other Loan Document, and no course of dealing between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder. The rights and remedies of the Administrative Agent, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of 

 

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any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) of this Section 10.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or the issuance
of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default or Event of Default at the
time. 
 No amendment or waiver of any provision of this Agreement or the other Loan Documents, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Required Lenders or the Borrower and the Administrative Agent with the consent of the Required Lenders (and, if the Administrative
Agent executes and delivers any such amendment, waiver or consent which states that it is being provided by the Administrative Agent in its capacity as such with the consent of the Required Lenders, the Borrower shall be entitled to rely thereon)
and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, that no amendment or waiver shall: (i) increase the Commitment of any Lender without the written
consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date
for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.20(b) or (c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) change any of the provisions of this Section 10.2 or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of
Lenders which are required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the consent of each Lender; (vi) release any guarantor or limit the liability of any such guarantor
under any guaranty agreement; (vii) release all or substantially all of the collateral (if any) securing any of the Obligations; (viii) waive any condition set forth in Section 3.2(a); provided further, that no such
agreement shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline Bank or the Issuing Bank without the prior written consent of such Person. 

Section 10.3 Expenses; Indemnification. 

(a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan
Documents and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and
disbursements of outside counsel and the allocated cost of inside counsel) incurred by the Administrative Agent, the Issuing Bank or any Lender in connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section 10.3, or in connection with the Loans made or any Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit. 
  

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 (b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
and each Related Party of any of the foregoing (each, an “Indemnitee”) against, and hold each of them harmless from, any and all costs, losses, liabilities, claims, damages and related expenses, including the fees, charges
and disbursements of any counsel for any Indemnitee, which may be incurred by or asserted against any Indemnitee arising out of, in connection with or as a result of (i) the execution or delivery of this Agreement or any other agreement or
instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of any of the transactions contemplated hereby, (ii) any Loan or Letter of Credit or any actual or proposed use
of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned by the Borrower or any Subsidiary or any Environmental Liability related in any way to the Borrower or any Subsidiary, (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto or (v) any civil penalty or fine
assessed by OFAC against any Lender, the Issuing Bank or the Administrative Agent and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, as a result of the funding of Loans, the
issuance of Letters of Credit, or the acceptance of payments under the Loan Documents; provided, that the Borrower shall not be obligated to indemnify any Indemnitee for any of the foregoing arising out of such Indemnitee’s gross
negligence or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable judgment. 

(c) The Borrower shall pay, and hold the Administrative Agent and each of the Lenders harmless from and against, any and all present and
future stamp, documentary, and other similar taxes with respect to this Agreement and any other Loan Documents, any collateral described therein, or any payments due thereunder, and save the Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to or resulting from any delay or omission to pay such taxes. 
 (d) To the extent
that the Borrower fails to pay any amount required to be paid to the Administrative Agent, the Issuing Bank or the Swingline Lender under clauses (a), (b) or (c) hereof, each Lender severally agrees to pay to the Administrative Agent, the
Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Pro Rata Share (determined as of the time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided, that the unreimbursed
expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such. 

(e) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the
transactions contemplated therein, any Loan or any Letter of Credit or the use of proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence of willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent
jurisdiction. 
  

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 (f) All amounts due under this Section 10.3 shall be payable promptly after
written demand therefor. 
 (g) The agreements in this Section shall survive the resignation of the Administrative Agent, the
Issuing Bank and the Swingline Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 

Section 10.4 Successors and Assigns. 

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of
the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by
way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at
any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in LC Exposure
and in Swingline Loans) at the time owing to it); provided that any such assignment shall be subject to the following conditions: 

(i) Minimum Amounts. 

(A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and 

(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000, unless each of the
Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to
members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining
whether such minimum amount has been met. 
  

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 (ii) Proportionate Amounts. Each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not apply to the Swingline
Lender’s rights and obligations in respect of Swingline Loans. 
 (iii) Required Consents. No
consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition: 

(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless
(1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; 

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

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

(D) the consent of the Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for
any assignment. 
 (iv) Assignment and Assumption. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 

(v) No Assignment to Borrower. No such assignment shall be made to the Borrower or any of the Borrower’s
Affiliates or Subsidiaries. 
 (vi) No Assignment to Natural Persons. No such assignment shall be made to
a natural person. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights
and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.17, 2.18,
2.19, and 10.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with subsection (d) of this Section. 
  

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 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and LC Exposure owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d)
Participations. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in LC Exposure and/or Swingline Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders and the Issuing Bank shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.2 that affects such Participant. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.17, 2.18 and 2.19 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection
(b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.7 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.20 as though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not
be entitled to receive any greater payment under Section 2.17 or 2.19 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation
to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.19 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.19(e) as though it were a Lender. 

(f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under
this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (g)
Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of 
  

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which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act. 
 (h) Resignation as Issuing Bank or Swingline Lender after Assignment. Notwithstanding anything to
the contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as Issuing
Bank and/or (ii) upon 30 days’ notice to the Borrower, resign as Swingline Lender. In the event of any such resignation as Issuing Bank or Swingline Lender, the Borrower shall be entitled to appoint from among the Lenders a successor
Issuing Bank or Swingline Lender hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America as Issuing Bank or Swingline Lender, as the case may be. If
Bank of America resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of the Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing Bank and
all LC Exposure with respect thereto. If Bank of America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender provided for hereunder with respect to Swingline Loans made by it and outstanding as of the effective date
of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swingline Loans pursuant to Section 2.5. Upon the appointment of a successor Issuing Bank and/or Swingline
Lender, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank or Swingline Lender, as the case may be, and (b) the successor Issuing Bank shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such successor or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such
Letters of Credit. 
 Section 10.5 Governing Law; Jurisdiction; Consent to Service of Process. 

(a) This Agreement and the other Loan Documents shall be construed in accordance with and be governed by the law (without giving effect to
the conflict of law principles thereof) of the State of North Carolina. 
 (b) The Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the United States District Court of the Western District of North Carolina, and of any state court of the State of North Carolina sitting in Mecklenburg
County and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such North Carolina state court or, to the extent permitted by
applicable law, such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document
against the Borrower or its properties in the courts of any jurisdiction. 
 (c) The Borrower irrevocably and unconditionally
waives any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in paragraph (b) of this Section 10.5 and brought in any court referred to in paragraph (b) of this
Section 10.5. Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

 

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 (d) Each party to this Agreement irrevocably consents to the service of process in the
manner provided for notices in Section 10.1. Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law. 

Section 10.6 Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.6. 

Section 10.7 Right of Setoff. In addition to any rights now or hereafter granted under applicable law and not by way
of limitation of any such rights, each Lender and the Issuing Bank shall have the right, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final) of the Borrower at any time held or other obligations at any time
owing by such Lender and the Issuing Bank to or for the credit or the account of the Borrower against any and all Obligations held by such Lender or the Issuing Bank, as the case may be, irrespective of whether such Lender or the Issuing Bank shall
have made demand hereunder and although such Obligations may be unmatured. Each Lender and the Issuing Bank agree promptly to notify the Administrative Agent and the Borrower after any such set-off and any application made by such Lender and the
Issuing Bank, as the case may be; provided, that the failure to give such notice shall not affect the validity of such set-off and application. 

Section 10.8 Counterparts; Effectiveness of Agreement; Integration. This Agreement may be executed by one or more of
the parties to this Agreement in any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Notwithstanding execution of this Agreement by the
Borrower and each of the Lenders party hereto and satisfaction (or waiver) of each of the conditions set forth in Section 3.1, this Agreement shall not be or become effective and binding upon the parties until executed and accepted by
the Administrative Agent in its capacity as such on behalf of the Lenders. This Agreement, the other Loan Documents, and any separate letter agreement(s) relating to any fees payable to the Administrative Agent constitute the entire agreement among
the parties hereto and thereto regarding the subject matters hereof and thereof and supersede all prior agreements and understandings, oral or written, regarding such subject matters. 

Section 10.9 Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding 

 

 70 

 
that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Commitments have not expired or terminated. The provisions of Sections 2.17, 2.18, 2.19, and 10.3 and Article IX shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof. All representations and warranties made herein, in
the certificates, reports, notices, and other documents delivered pursuant to this Agreement shall survive the execution and delivery of this Agreement and the other Loan Documents, and the making of the Loans and the issuance of the Letters of
Credit. 
 Section 10.10 Severability. Any provision of this Agreement or any other Loan Document held to be
illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining
provisions hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 10.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and each Lender agrees to take
normal and reasonable precautions to maintain the confidentiality of any information designated in writing as confidential and provided to it by the Borrower or any Subsidiary, except that, subject to taking such normal and reasonable precautions to
maintain the confidentiality thereof, such information may be disclosed by the Administrative Agent, the Issuing Bank and any Lender (i) to any Related Party of the Administrative Agent, the Issuing Bank or any such Lender, including without
limitation accountants, legal counsel and other advisors, provided, that such Related Party agrees to be bound by the provisions of this Section 10.11, (ii) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or authority, (iv) to the extent that such information becomes publicly available other than as a result of a breach of this
Section 10.11, or which becomes available to the Administrative Agent, the Issuing Bank, any Lender or any Related Party of any of the foregoing on a nonconfidential basis from a source other than the Borrower, (v) in connection
with the exercise of any remedy hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, and (vi) subject to provisions substantially similar to this Section 10.11, to any actual
or prospective assignee or Participant, or (vii) with the consent of the Borrower. Any Person required to maintain the confidentiality of any information as provided for in this Section 10.11 shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord its own confidential information. 

Section 10.12 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest
rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate of interest
(the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together
with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this
Section 10.12 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Rate to the date of repayment, shall have been received by such Lender. 
  

 71 

 Section 10.13 PATRIOT Act Notice. Each Lender subject to the Act hereby
notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will
allow such Lender to identify the Borrower in accordance with the Act. 
 Section 10.14 No Advisory or Fiduciary
Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arranger, are arm’s-length commercial transactions between the
Borrower and its Affiliates, on the one hand, and the Administrative Agent and the Arranger, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and
(C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arranger each
is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates or any other
Person and (B) neither the Administrative Agent nor the Arranger has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the
other Loan Documents and (iii) the Administrative Agent and the Arranger and their respective Affiliates may be engaged in a board range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and
neither the Administrative Agent nor the Arranger has any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have
against the Administrative Agent and the Arranger with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 

[Balance of page left intentionally blank] 
  

 72 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
under seal in the case of the Borrower by their respective authorized officers as of the day and year first above written. 
  

			
	WATSCO, INC.
		
	 By:
	 	 /s/ Ana M. Menendez

	 Name:
	 	Ana M. Menendez
	 Title:
	 	 Vice President

  

 1 

			
	 BANK OF AMERICA, N.A., as Administrative Agent

		
	 By:
	 	 /s/ Tamisha U. Eason

	 Name:
	 	Tamisha U. Eason
	 Title:
	 	Vice President

  

 2 

			
	 BANK OF AMERICA, N.A., as Issuing Bank, as Swingline Lender and as a Lender

		
	 By:
	 	 /s/ Adam Kaplan

	 Name:
	 	 Adam Kaplan

	 Title:
	 	 Senior Vice President

	
	Revolving Commitment: $60,000,000
	
	Swingline Commitment: $25,000,000

  

 3 

			
	JPMORGAN CHASE BANK, N.A.
		
	 By:
	 	 /s/ Robert P. Carswell

	 Name:
	 	 Robert P. Carswell

	 Title:
	 	 Vice President

	
	Revolving Commitment: $45,000,000

  

 4 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ David S. Matter

	 Name:
	 	 David S. Matter

	 Title:
	 	 Regional Vice President

	
	 Revolving Commitment: $40,000,000

 

 5 

			
	SUNTRUST BANK
		
	By:	 	 /s/ Robert Maddox

	Name:	 	 Robert Maddox

	Title:	 	 Vice President

	
	Revolving Commitment: $40,000,000

  

 6 

			
	MIZUHO CORPORATE BANK (USA)
		
	 By:
	 	 /s/ Robert Gallagher

	 Name:
	 	 Robert Gallagher

	 Title:
	 	 Senior Vice President

	
	 Revolving Commitment: $40,000,000

 

 7 

			
	COMERICA BANK
		
	 By:
	 	 /s/ Gerald R. Finney, Jr.

	 Name:
	 	 Gerald R. Finney, Jr.

	 Title:
	 	 Vice President

	
	 Revolving Commitment: $25,000,000

 

 8 

			
	THE NORTHERN TRUST COMPANY
		
	 By:
	 	 /s/ Rick J. Gomez

	 Name:
	 	 Rick J. Gomez

	 Title:
	 	 Commercial Banking Officer

	
	 Revolving Commitment: $25,000,000

 

 9 

			
	U.S. BANK NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ Frances W. Josephic

	 Name:
	 	 Frances W. Josephic

	 Title:
	 	 Vice President

	
	 Revolving Commitment: $25,000,000

 

 10 

 SCHEDULE I 

PRICING GRID 
  

							
	 CONSOLIDATED TOTAL

LEVERAGE RATIO
	  	APPLICABLE MARGIN FOR
LIBOR
LOANS/
Letter of Credit Fees	 	APPLICABLE MARGIN
FOR BASE
RATE
LOANS	 	COMMITMENT
FEE

	Greater than or equal to 3.0:1.00	  	1.125%	 	0.125%	 	0.200%
	Greater than or equal to 2.5:1.00 but less than 3.0:1.00	  	1.000%	 	0.000%	 	0.175%
	Greater than or equal to 2.0:1.00 but less than 2.5:1.00	  	0.750%	 	0.000%	 	0.150%
	Greater than or equal to 1.5:1.00 but less than 2.0:1.00	  	0.625%	 	0.000%	 	0.125%
	Greater than or equal to 1.0:1.00 but less than 1.5:1.00	  	0.500%	 	0.000%	 	0.100%
	Greater than or equal to 0.5:1.00 but less than 1.0:1.00	  	0.400%	 	0.000%	 	0.080%
	Less than 0.50:1.00	  	0.375%	 	0.000%	 	0.075%

  

 Schedule I 

 SCHEDULE II 

PERMITTED PRINCIPAL PAYMENT ON PRIVATE PLACEMENT DEBT 

$125,000,000 SECOND AMENDED AND RESTATED PRIVATE SHELF AGREEMENT dated as of December 10, 2004 by and among WATSCO, INC. and THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA and other purchasers party thereto. 
  

 Schedule 2.22 

 SCHEDULE 2.22 

EXISTING LETTERS OF CREDIT 
  

													
	 Issuer
	  	 Beneficiary
	  	Number	  	Inception
Date	  	Expiration
Date	  	Outstanding
Issue Amount	 
	 SunTrust Bank
	  	UBS Cayman Island	  	Standby	  	01/02/03	  	02/02/09	  	$	443,816.00	  
	 SunTrust Bank
	  	Royal Bank of Canada	  	Standby	  	01/01/03	  	01/02/08	  	$	509,226.00	* 
	 SunTrust Bank
	  	Park Central Industrial LLP	  	Standby	  	08/01/02	  	02/28/08	  	$	38,999.98	  
	 SunTrust Bank
	  	UBS Cayman Island	  	Standby	  	07/01/06	  	06/30/08	  	$	 2,895,990.00	  
	 SunTrust Bank
	  	PSBP Industrial, LLC	  	Standby	  	02/20/04	  	02/01/08	  	$	77,612.72	  
	 SunTrust Bank
	  	Prologis	  	Standby	  	08/18/06	  	08/16/07	  	$	100,000.00	  
	 Bank of America, N.A.
	  	Keentech International	  	64495788	  	07/13/07	  	08/20/07	  	$	33,790.09	  
	 Bank of America, N.A.
	  	Keentech International	  	64495786	  	07/13/07	  	08/20/07	  	$	41,587.92	  
	 Bank of America, N.A.
	  	Keentech International	  	64495787	  	07/13/07	  	08/24/07	  	$	44,471.46	  
	 Bank of America, N.A.
	  	Golden Power Manufacturing	  	68019234	  	06/15/07	  	09/21/07	  	$	187,478.95	  
	 Bank of America, N.A.
	  	Keentech International	  		  	07/26/07	  	10/29/07	  	$	40,499.80	  
		  	Total Letters of Credit	  		  		  		  	$	4,413,472.92	  

  

	*	Not to be renewed as of effective date of Revolving Credit Agreement. 

 

 Schedule 2.22 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 SCHEDULE 4.5(a)

 PENDING LITIGATION 
  

	1.	Robert Cormier, et al. vs 3M Corp, et al 

[***] 
  

	2.	Ronald Sutera v ADC Supply Co. Ann Elder, et al v Cummings Insulation, et al 

[***] 
  

	3.	Ann Elder, et al v. Cummings Insulation, et al 

[***] 
  

	4.	Kronk, Doris, et al vs. Homans Associates, Inc. et al. 

[***] 
  

	5.	Springer, Peter, et al vs. Homans Associates, Inc. et al. 

[***] 
  

 Schedule 4.5(a) 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 

	6.	Jane Sneider, et al v. ADC Supply Corp., et al 

[***] 
  

	7.	Lowell Jolley and Crystal Jolley vs. CRG Holdings LLC and Atlantic Service & Supply, LLC. 

[***] 
  

	8.	Ron Carney and Marilyn Carney v Tanglewood Investors Limited Partnership v Atlantic Service and Supply, LLC. 

[***] 
  

	9.	The Waldinger Corporation v. Zero Zone, Inc.; Zero Zone Refrigeration, LLC; Baker Distributing Company LLC; and Minus 40 Sales, Inc. 

[***] 
  

	10.	Farmer, Inc. d/b/a Express Personnel Services v. East Coast Metal, LLC 

[***] 
  

	11.	Gregory S. Keatley and Karen K. Keatley vs. Goodman Holding Company and East Coast Metal Distributors, LLC. 

[***] 
  

	12.	Dunhill Staffing Systems, Inc. v. Dunhill Franchisee Trust and Willie Miska, Case No. 13 181 Y 01674 04 

 

 Schedule 4.5(a) 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

[***] 
 The Borrower and its
subsidiaries vigorously defend all matters in which they are named defendant and, for insurable losses, maintains significant levels of insurance to protect against adverse judgments, claims or assessments that may affect it. In management’s
opinion, although the outcome of any legal proceeding or the adequacy of existing insurance coverage cannot be predicted with certainty, items 1. through 12. above and including other litigation, which is covered by insurance policies, the ultimate
liability associated with such litigation will not materially affect the Borrower’s financial condition or results of operations. 
 None
of the above-referenced matters are class action lawsuits. 
  

 Schedule 4.5(a) 

 SCHEDULE 4.5(b) 

ENVIRONMENTAL MATTERS 

The Borrower performs certain monitoring of groundwater contamination at its facility located at 666 E. H. Crump Boulevard, Memphis, Tennessee. All
testing and monitoring is being done pursuant to and in compliance with applicable laws and regulations. 
  

 Schedule 4.5(b) 

 SCHEDULE 4.18 

PRINCIPAL PLACES OF BUSINESS AND SUBSIDIARIES 

 

					
	 Name of Entity and Principal Places of Business
	  	 Incorporated
	  	 100% Ownership

	 Watsco, Inc.
 2665 S. Bayshore
Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Florida	  	
			
	 Air Systems Distributors LLC

2151 W. Hillsboro Blvd., Suite 400
 Deerfield
Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Tradewinds Flight Services LLC

2665 South Bayshore Drive, Suite 901
 Coconut
Grove, Florida 33133
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Atlantic Service & Supply LLC

6525 Baker Blvd.
 Fort Worth, Texas
76118
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Baker Distributing Company LLC

14610 Breakers Drive
 Jacksonville, Florida 32258

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Comfort Supply, Inc.
 407
Garden Oaks
 Houston, Texas 77018
	  	Delaware	  	Watsco, Inc.
			
	 Comfort Products Distributing LLC

13202 “I” Street
 Omaha, Nebraska 68137

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Cool Holdings LLC
 2665 South
Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 East Coast Metal Distributors LLC

1313 South Briggs Avenue
 Durham, North Carolina
27703
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Gemaire Caribe, Inc.
 2151 W.
Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Puerto Rico	  	Gemaire Distributors LLC
			
	 Gemaire Distributors LLC
 2151
W. Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.

  

 Schedule 4.18 

					
			
	 HBA Distributors LLC
 2151 W.
Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Heat Incorporated LLC
 9
Flagstone Drive
 Hudson, New Hamsphire 03051
	  	New Hampshire	  	Watsco Holdings, Inc.
			
	 Heating & Cooling Supply LLC

3980 Home Avenue
 San Diego, California 92105

	  	California	  	Watsco, Inc.
			
	 Homans Associates LLC
 250
Ballardvale Street
 Wilmington, Massachusetts 01887
	  	Delaware	  	Watsco Holdings, Inc.
			
	 The Florida Ad Company
 2151 W.
Hillsboro Blvd, Suite 400
 Deerfield Beach, Florida 33442
	  	Florida	  	Gemaire Distributors LLC
			
	 Three States Supply Company LLC

666 E. H. Crump Blvd.
 Memphis, Tennessee 38126

	  	Tennessee	  	Watsco Holdings, Inc.
			
	 Tradewinds Distributing Company LLC

14610 Breakers Drive
 Jacksonville, Florida 32258

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Watsco Holdings, Inc.
 2665
South Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 Watsco Investments LLC
 2665
South Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 NSI Supply, Inc.
 3980 Home
Avenue
 San Diego, California 92105
	  	Nevada	  	Watsco, Inc.
			
	 Coconut Grove Holdings, Inc.

701 Brazos Street, Suite 1050
 Austin, TX 78701

	  	Texas	  	Watsco Holdings, Inc.

  

 Schedule 4.18 

 SCHEDULE 7.1 

OUTSTANDING INDEBTEDNESS 
  

			
	 Description
	  	Outstanding Amount
	 Other
	  	
	Watsco, Inc. and subsidiaries in the ordinary course of business enter into various capital leases, equipment and vehicle notes, with principal amounts outstanding payable at
varying maturities	  	$160,000

  

 Schedule 7.1 

 SCHEDULE 7.2 

EXISTING LIENS 
  

	•	 	 Liens and security interests in favor of suppliers, lessors, landlords or lenders with respect to certain items of real property or equipment,
including forklifts, office equipment, telephone systems, computer software and hardware equipment, machinery and vehicles 

  

	•	 	 Consignment arrangements with Nordyne Inc. relating to heating and cooling equipment sold by Borrower and certain Subsidiaries

  

	•	 	 Consignment arrangements with Goodman Manufacturing Corporation relating to heating and cooling equipment sold by Borrower and certain Subsidiaries

  

	•	 	 Aircraft Lease 

  

	•	 	 Blanket lien and security interest in NationsBank export receivables agreement between NationsBanc Commercial Corporation and Gemaire Distributors,
Inc. as permitted under Section 7.6(e) assigned to GMAC Commercial Credit LLC. There are no amounts currently outstanding under this agreement. 

 

 Schedule 7.2 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 SCHEDULE 7.4 

EXISTING INVESTMENTS 
  

							
	 Description
	  	Physical
Location	  	Bank
Acct #	  	# shares
	 [***]
	  	E*Trade	  	[***]	  	25,200
	 [***]
	  	E*Trade	  	[***]	  	20,000

  

 Schedule 7.4 

 SCHEDULE 7.8 

RESTRICTIVE AGREEMENTS 

Aircraft Lease (S/N) dated as of September 14, 2004 between Suntrust Leasing Corporation as Lessor and Watsco Holdings, Inc. as Lessee 

 

 Schedule 7.8 

 EXHIBIT A 

REVOLVING CREDIT NOTE 
  

			
	[$                        ]	  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Watsco, Inc., a Florida corporation (the “Borrower”), hereby promises to pay to [name of Lender] (the “Lender”) or its registered assigns, at the office of Bank of America,
N.A., as administrative agent (the “Administrative Agent”), on the Commitment Termination Date (as defined in the Revolving Credit Agreement dated as of August 3, 2007, as the same may be amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent for the lenders, the lesser of the principal
sum of amount of such Lender’s Revolving Commitment and the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of America in
immediately available funds, and to pay interest from the date hereof on the principal amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates per annum and payable on such dates as provided in the Credit
Agreement. In addition, should legal action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees of the Lender. 

The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent permitted by law, overdue interest from
their due dates at a rate or rates provided in the Credit Agreement. 
 All borrowings evidenced by this Revolving Credit Note
and all payments and prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part
hereof, or otherwise recorded by such holder in its internal records; provided, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit Note and the Credit Agreement. 
 This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of, the Credit Agreement which, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for prepayment of the
principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein specified. THIS REVOLVING CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
  

			
	WATSCO, INC.
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 Exhibit A-1 

 LOANS AND PAYMENTS 

 

									
	 Date
	  	Amount and Type of Loan	  	Payments of Principal	  	Unpaid Principal Balance of
Note
	  	Name of Person Making
Notation
	  
	  	  
	  	  
	  	  
	  	  

	  
	  	  
	  	  
	  	  
	  	  

  

 Exhibit A-2 

 EXHIBIT B 

SWINGLINE NOTE 
  

			
	$25,000,000	  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Watsco, Inc., a Florida corporation (the “Borrower”), hereby promises to pay to BANK OF AMERICA, N.A. (the “Swingline Lender”) or its registered assigns, at the office of Bank
of America, N.A. (“Bank of America”), on the Swingline Termination Date (as defined in the Revolving Credit Agreement dated as of August 3, 2007, as the same may be amended, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent for the lenders, the lesser of the principal sum of Twenty-five Million
Dollars ($25,000,000) and the aggregate unpaid principal amount of all Swingline Loans made by the Swingline Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of America in immediately available funds, and
to pay interest from the date hereof on the principal amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates per annum and payable on such dates as provided in the Credit Agreement. In addition, should
legal action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees of the Swingline Lender. 

The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent permitted by law, overdue interest from
their due dates at a rate or rates provided in the Credit Agreement. 
 All borrowings evidenced by this Swingline Note and all
payments and prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part hereof,
or otherwise recorded by such holder in its internal records; provided, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower to make the payments of
principal and interest in accordance with the terms of this Swingline Note and the Credit Agreement. 
 This Swingline Note is
issued in connection with, and is entitled to the benefits of, the Credit Agreement which, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for optional and mandatory
prepayment of the principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein specified. THIS SWINGLINE NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
  

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit B-1 

 LOANS AND PAYMENTS 

 

									
	 Date
	  	Amount and Type of Loan	  	Payments of Principal	  	Unpaid Principal Balance of
Note
	  	Name of Person Making
Notation
	  
	  	  
	  	  
	  	  
	  	  

	  
	  	  
	  	  
	  	  
	  	  

  

 Exhibit B-2 

 EXHIBIT C 

[FORM OF] 

ASSIGNMENT AND ASSUMPTION 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth
below and is entered into by and between [the] [each] Assignor identified in item 1 below ([the] [each, an] “Assignor”) and [the] [each] Assignee identified in item 2 below ([the] [each, an]
“Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors] [the Assignees] hereunder are several and not joint.] Capitalized terms used but not defined herein shall have the meanings
given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 

For an agreed consideration, [the] [each] Assignor hereby irrevocably sells and assigns to [the Assignee] [the respective
Assignees], and [the] [each] Assignee hereby irrevocably purchases and assumes from [the Assignor] [the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s] [the respective Assignors’] rights and obligations in [its capacity as a Lender] [their respective capacities as
Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the
Assignor] [the respective Assignors] under the respective facilities identified below (including, without limitation, the Letters of Credit and the Swingline Loans included in such facilities) and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)] [the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not
limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned by [the] [any] Assignor to [the] [any] Assignee pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as [the] [an] “Assigned Interest”). Each such sale and
assignment is without recourse to [the] [any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the] [any] Assignor. 

 

	1.	Assignor[s]:
                                         
                    

  

	2.	Assignee[s]:
                                         
                    [for each Assignee, indicate [Affiliate] [Approved Fund] of [identify Lender]] 

 

	3.	Borrower: Watsco, Inc. 

  

	4.	Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement 

 

 C-1 

	5.	Credit Agreement: Credit Agreement, dated as of August 3, 2007, among Watsco, Inc., the Lenders from time to time party thereto, and Bank of America, N.A.,
as Administrative Agent, Issuing Bank and Swingline Lender 

  

	6.	Assigned Interest: 

  

															
	 Assignor[s]
	  	Assignee[s]	  	Facility Assigned	  	Aggregate Amount
of Commitment/
Loans for all
Lenders	  	Amount
of
Commitment/
Loans
Assigned	  	Percentage
Assigned of
Commitment/
Loans	  	CUSIP
Number
	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

  

	[7.	Trade Date:
                                         
       ] 

 Effective Date:
                                        ,
20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 

The terms set forth in this Assignment and Assumption are hereby agreed to: 

 

			
	ASSIGNOR
	[NAME OF ASSIGNOR]
		
	By:	 	  

	Title:	 	
	
	ASSIGNEE
	[NAME OF ASSIGNEE]
		
	By:	 	  

	Title:	 	

  

 C-2 

 [Consented to and] Accepted: 

 

			
	 BANK OF AMERICA, N.A., as
Administrative Agent

		
	By:	 	  

	Title:	 	

 [Consented to:] 
  

			
	WATSCO, INC.
		
	By:	 	  

	Title:	 	

  

 C-3 

 ANNEX 1 TO ASSIGNMENT AND ASSUMPTION 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION 

1. Representations and Warranties. 

1.1. Assignor. [The] [Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of
[the] [the relevant] Assigned Interest, (ii) [the] [such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with
the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower,
any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document. 
 1.2. Assignee. [The] [Each] Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement,
(ii) it meets all the requirements to be an assignee under Section 10.4(b)(iii), (v) and (vi) of the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement),
(iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the] [the relevant] Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it is sophisticated with respect to decisions to acquire assets of the type presented by [the] [such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the] [such]
Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered
pursuant to Section 5.1 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the]
[such] Assigned Interest, (vi) it has independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase [the] [such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by [the] [such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the] [any] 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, and (ii) 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. 
 2. Payments. From
and after the Effective Date, the Administrative Agent shall make all payments in respect of [the] [each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the] [the relevant] Assignor for
amounts which have accrued to but excluding the Effective Date and to [the] [relevant] Assignee for amounts which have accrued from and after the Effective Date. 
  

 C-4 

 3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of North Carolina. 
  

 C-5 

 EXHIBIT D 

[FORM OF] 

SUBSIDIARY GUARANTY AGREEMENT 

SUBSIDIARY GUARANTEE AGREEMENT dated as of August 3, 2007, among each of the Subsidiaries listed on Schedule I hereto (each
such subsidiary individually, a “Guarantor” and collectively, the “Guarantors”) of WATSCO, INC., a Florida corporation (the “Borrower”), and BANK OF AMERICA, N.A., as
administrative agent (the “Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”) and Bank of America, N.A., as Administrative Agent for the Lenders, swingline
lender and issuing bank (in such capacity, the “Issuing Bank”). Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

The Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has agreed to issue Letters of Credit for the account of the
Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement. Each of the Guarantors is a direct or indirect Subsidiary of the Borrower and acknowledges that it will derive substantial benefit from the
making of the Loans by the Lenders, and the issuance of the Letters of Credit by the Issuing Bank. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are conditioned on, among other things, the execution
and delivery by the Guarantors of a Subsidiary Guarantee Agreement in the form hereof. As consideration therefor and in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors are willing to execute
this Subsidiary Guarantee Agreement. 
 Accordingly, the parties hereto agree as follows: 

SECTION 1. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a surety, the due and punctual payment and performance of all Obligations of the Borrower, monetary or otherwise, under the Loan Documents. Each Guarantor further agrees that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. 

SECTION 2. Obligations Not Waived. To the fullest extent permitted by applicable law, each Guarantor waives presentment to, demand
of payment from and protest to the Borrower of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. To the fullest extent permitted by applicable law, the obligations of each Guarantor
hereunder shall not be affected by (a) the failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce or exercise any right or remedy against the Borrower or any other Guarantor under the provisions of the
Credit Agreement, any other Loan Document or otherwise, (b) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, this Agreement, any other Loan Document, any Guarantee or any other
agreement, including with respect to any other Guarantor under this Agreement, or (c) the failure to perfect any security interest in, or the release of, any of the security held by or on behalf of the Administrative Agent or any Lender.

  

 Exhibit D-1 

 SECTION 3. Security. Each of the Guarantors authorizes the Administrative Agent and
each of the Lenders to (a) take and hold such security, if any, for payment of this Guarantee and the Obligations as may be required by the Credit Agreement, and exchange, enforce, waive and release any such security, (b) apply such
security and direct the order or manner of sale thereof as they in their sole discretion may determine and (c) release or substitute any one or more endorsees, other guarantors or other obligors. 

SECTION 4. Guarantee of Payment. Each Guarantor further agrees that its guarantee constitutes a guarantee of payment when due and
not of collection, and waives any right to require that any resort be had by the Administrative Agent or any Lender to any of the security held for payment of the Obligations or to any balance of any deposit account or credit on the books of the
Administrative Agent or any Lender in favor of the Borrower or any other person. 
 SECTION 5. No Discharge or Diminishment
of Guarantee. The obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Obligations), including any claim
of waiver, release, surrender, alteration or compromise of any of the Obligations, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of
the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of the Administrative Agent or any Lender to assert
any claim or demand or to enforce any remedy under the Credit Agreement, any other Loan Document or any other agreement, by any waiver or modification of any provision of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or omission that may or might in any manner or to the extent vary the risk of any Guarantor or that would otherwise operate as a discharge of each Guarantor as a matter of law or equity (other than
the indefeasible payment in full in cash of all the Obligations). 
 SECTION 6. Defenses of Borrower Waived. To the
fullest extent permitted by applicable law, each Guarantor waives any defense based on or arising out of any defense of the Borrower or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of
the liability of the Borrower, other than the final and indefeasible payment in full in cash of the Obligations. The Administrative Agent and the Lenders may, at their election, foreclose on any security held by one or more of them by one or more
judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Borrower or any other guarantor, without affecting or impairing
in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully, finally and indefeasibly paid in cash. Pursuant to applicable law, each Guarantor waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Guarantor or guarantor, as the case may be,
or any security. 
 SECTION 7. Agreement to Pay; Subordination. In furtherance of the foregoing and not in limitation of
any other right that the Administrative Agent or any Lender has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for the benefit of the Lenders in cash the amount of such unpaid
Obligations. Upon payment by any Guarantor of any sums to the Administrative Agent, all rights of such Guarantor against the Borrower arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all the Obligations. In addition, any indebtedness of the 

 

 Exhibit D-2 

 
Borrower now or hereafter held by any Guarantor is hereby subordinated in right of payment to the prior payment in full in cash of the Obligations. If any amount shall erroneously be paid to any
Guarantor after the occurrence and during the continuance of a Default on account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or (ii) any such indebtedness of the Borrower, such amount shall be held in
trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the Administrative Agent to be credited against the payment of the Obligations, whether matured or unmatured, in accordance with the terms of the Loan
Documents. 
 SECTION 8. Information. Each Guarantor assumes all responsibility for being and keeping itself informed of
the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the Lenders will have any duty to advise any of the Guarantors of information known to it or any of them regarding such circumstances or risks. 

SECTION 9. Representations and Warranties. Each Guarantor represents and warrants as to itself that all representations and
warranties relating to it (as a Subsidiary of the Borrower) contained in the Credit Agreement are true and correct. 
 SECTION
10. Termination. The guarantees made hereunder (a) shall terminate when all the Obligations have been paid in full in cash and the Lenders have no further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to
zero and the Issuing Bank has no further obligation to issue Letters of Credit under the Credit Agreement and (b) shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
Obligation is rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or reorganization of the Borrower, any Guarantor or otherwise. In connection with the foregoing, the Administrative Agent shall execute and
deliver to such Guarantor or Guarantor’s designee, at such Guarantor’s expense, any documents or instruments which such Guarantor shall reasonably request from time to time to evidence such termination and release. 

SECTION 11. Binding Effect; Several Agreement; Assignments. Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the Guarantors that are contained in this Agreement shall bind and inure to the benefit of each party
hereto and their respective successors and assigns. This Agreement shall become effective as to any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall have been delivered to the Administrative Agent, and a counterpart
hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Guarantor and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of such Guarantor,
the Administrative Agent and the Lenders, and their respective successors and assigns, except that no Guarantor shall have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be
void). If all of the capital stock of a Guarantor is sold, transferred or otherwise disposed of pursuant to a transaction permitted by the Credit Agreement, such Guarantor shall be released from its obligations under this Agreement without further
action. This Agreement shall be construed as a separate agreement with respect to each Guarantor and may be amended, modified, supplemented, waived or released with respect to any Guarantor without the approval of any other Guarantor and without
affecting the obligations of any other Guarantor hereunder. 
  

 Exhibit D-3 

 SECTION 12. Waivers; Amendment. 

(a) No failure or delay of the Administrative Agent of any in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and of the Administrative Agent hereunder and of the Lenders under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent
to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver and consent shall be effective only in the specific instance and for the purpose for
which given. No notice or demand on any Guarantor in any case shall entitle such Guarantor to any other or further notice in similar or other circumstances. 

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered
into between the Guarantors with respect to which such waiver, amendment or modification relates and the Administrative Agent, with the prior written consent of the Required Lenders (except as otherwise provided in the Credit Agreement). 

SECTION 13. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH
CAROLINA. 
 SECTION 14. Notices. All communications and notices hereunder shall be in writing and given as provided in
Section 10.1 of the Credit Agreement. All communications and notices hereunder to each Guarantor shall be given to it at its address set forth on Schedule I attached hereto. 

SECTION 15. Survival of Agreement; Severability. 

(a) All covenants, agreements representations and warranties made by the Guarantors herein and in the certificates or other instruments
prepared or delivered in connection with or pursuant to this Agreement or the other Loan Document shall be considered to have been relied upon by the Administrative Agent and the Lenders and shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit by the Issuing Bank regardless of any investigation made by any of them or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any
other fee or amount payable under this Agreement or any other Loan Document is outstanding and unpaid or the LC Exposure does not equal zero and as long as the Commitments have not been terminated. 

(b) In the event one or more of the provisions contained in this Agreement or in any other Loan Document should be held invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 16. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original, but all of
which when taken together shall constitute a single contract (subject to Section 11), and shall become effective as provided in Section 11. Delivery of an executed signature page to this Agreement by facsimile transmission
shall be as effective as delivery of a manually executed counterpart of this Agreement. 
  

 Exhibit D-4 

 SECTION 17. Rules of Interpretation. The rules of interpretation specified in
Section 1.3 of the Credit Agreement shall be applicable to this Agreement. 
 SECTION 18. Jurisdiction; Consent
to Service of Process. 
 (a) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any North Carolina State court or Federal court of the United States of America sitting in North Carolina, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such North Carolina State court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against any Guarantor or its properties in the courts of any jurisdiction. 

(b) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any North Carolina State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 14.
Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 

SECTION 19. Waiver of Jury Trial. EACH PARTY HERETO HERBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 19. 

SECTION 20. Additional Guarantors. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that
was not in existence on the date of the Credit Agreement is required to enter into this Agreement as a Guarantor upon becoming Subsidiary Loan Party. Upon execution and delivery after the date hereof by the Administrative Agent and such Subsidiary
of an instrument in the form of Annex 1, such Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any instrument adding an additional
Guarantor as a party to this Agreement shall not require the consent of any other Guarantor hereunder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as
a party to this Agreement. 
  

 Exhibit D-5 

 SECTION 21. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and the Issuing Bank are hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other Indebtedness at any time owing by such Lender or the Issuing Bank to or for the credit or the account of any Guarantor against any or all the obligations of such Guarantor now or hereafter existing under this Agreement and the
other Loan Documents held by such Lender or the Issuing Bank, irrespective of whether or not such Person shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each
Lender and the Issuing Bank under this Section 21 are in addition to other rights and remedies (including other rights of setoff) which such Lender or the Issuing Bank, as the case may be, may have. 

[Balance of page intentionally left blank] 
  

 Exhibit D-6 

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

			
	EACH OF THE SUBSIDIARIES LISTED ON
SCHEDULE I HERETO
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit D-7 

 SCHEDULE I TO THE 

SUBSIDIARY GUARANTEE AGREEMENT 
  

							
	  	 	 Guarantor(s)
	  	 Address
	  	 

  

 Schedule I-D 

 ANNEX 1 TO THE 

SUBSIDIARY GUARANTEE AGREEMENT 

SUPPLEMENT NO. [    ] dated as of [            ], to the
Subsidiary Guarantee Agreement (the “Guarantee Agreement”) dated as of August 3, 2007 among each of the subsidiaries listed on Schedule I thereto (each such Subsidiary individually, a
“Guarantor” and collectively, the “Guarantors”) of WATSCO, INC., a Florida corporation (the “Borrower”), and BANK OF AMERICA, N.A., as Administrative Agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 
 A.
Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time
party thereto (the “Lenders”) and Bank of America, N.A., as Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
 B. Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the Guarantee Agreement and the Credit Agreement. 

C. The Guarantors have entered into the Guarantee Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue
Letters of Credit. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that was not in existence or not a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the Guarantee
Agreement as a Guarantor upon becoming a Subsidiary Loan Party. Section 20 of the Guarantee Agreement provides that additional Subsidiaries of the Borrower may become Guarantors under the Guarantee Agreement by execution and delivery of
an instrument in the form of this Supplement. The undersigned Subsidiary of the Borrower (the “New Guarantor”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor
under the Guarantee Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued. 

Accordingly, the Administrative Agent and the New Guarantor agree as follows: 

SECTION 1. In accordance with Section 20 of the Guarantee Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Guarantee Agreement with the same force and effect as if originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms and provisions of the Guarantee Agreement applicable to it as
Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the date hereof. Each reference to a Guarantor in the Guarantee Agreement shall
be deemed to include the New Guarantor. The Guarantee Agreement is hereby incorporated herein by reference. 
 SECTION 2. The
New Guarantor represents and warrants to the Administrative Agent and the Lenders that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms. 
 SECTION 3. This Supplement may be executed in counterparts each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Administrative Agent shall have received counterparts of this Supplement that, when taken together, bear the
signatures of the New Guarantor and the Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 

 

 Annex I-D-1 

 SECTION 4. Except as expressly supplemented hereby, the Guarantee Agreement shall remain in
full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NORTH CAROLINA. 
 SECTION 6. In case any one or more of the provisions contained in this Supplement should be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Guarantee Agreement shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision hereof in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 14 of the Guarantee
Agreement. All communications and notices hereunder to the New Guarantor shall be given to it at the address set forth under its signature below, with a copy to the Borrower. 

SECTION 8. The New Guarantor agrees to reimburse the Administrative Agent for its out-of-pocket expenses in connection with this
Supplement, including the fees, disbursements and other charges of counsel for the Administrative Agent. 
 IN WITNESS WHEREOF,
the New Guarantor and the Administrative Agent have duly executed this Supplement to the Guarantee Agreement as of the day and year first above written. 

 

			
	[Name of New Guarantor]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Address:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Annex I-D-2 

 SCHEDULE I 

TO SUPPLEMENT NO.      TO THE SUBSIDIARY 

GUARANTEE AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Schedule I-D-1 

 EXHIBIT E 

[FORM OF] 

INDEMNITY, SUBROGATION and CONTRIBUTION AGREEMENT dated as of August 3, 2007, among WATSCO, INC., a Florida corporation (the
“Borrower”), each Subsidiary listed on Schedule I hereto (the “Guarantors”), BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”)
for the Lenders (as defined in the Credit Agreement referred to below). 
 Reference is made to (a) the Revolving Credit
Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the
“Lenders”) and Bank of America, N.A., as Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”), and (b) the Subsidiary Guarantee Agreement dated as
August 3, 2007, among the Guarantors and the Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”). Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Credit Agreement. 
 The Lenders have agreed to make Loans to the Borrower, and
the Issuing Bank has agreed to issue Letters of Credit for the account of the Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement. The Guarantors have guaranteed such Loans and the other
Obligations (as defined in the Guarantee Agreement) of the Borrower under the Credit Agreement pursuant to the Guarantee Agreement. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are conditioned on,
among other things, the execution and delivery by the Borrower and the Guarantors of an agreement in the form hereof. 

Accordingly, the Borrower, each Guarantor and the Administrative Agent agree as follows: 

SECTION 1. Indemnity and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 3), the Borrower agrees that in the event a payment shall be made by any Guarantor under the Guarantee Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment. 

SECTION 2. Contribution and Subrogation. Each Guarantor (a “Contributing Guarantor”) agrees (subject to
Section 3) that, in the event a payment shall be made by any other Guarantor under the Guarantee Agreement and such other Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Borrower
as provided in Section 1, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment multiplied by a fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors on the date hereof (or, in the case of any Guarantor becoming a party hereto pursuant to Section 12, the date of the Supplement
hereto executed and delivered by such Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 2 shall be subrogated to the rights of such Claiming Guarantor under Section 1
to the extent of such payment. 
 SECTION 3. Subordination. Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors under Sections 1 and 2 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully 

 

 Exhibit E-1 

 
subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the part of the Borrower or any Guarantor to make the payments required under applicable law or
otherwise shall in any respect limit the obligations and liabilities of any Guarantor with respect to its obligations hereunder, and each Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder. 

SECTION 4. Termination. This Agreement shall survive and be in full force and effect so long as any Obligation is outstanding and
has not been indefeasibly paid in full in cash, and so long as the LC Exposure has not been reduced to zero or any of the Commitments under the Credit Agreement have not been terminated, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or reorganization of the Borrower, any Guarantor or otherwise. 

SECTION 5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH
CAROLINA. 
 SECTION 6. No Waiver; Amendment. 

(a) No failure on the part of the Administrative Agent or any Guarantor to exercise, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the Administrative Agent or any Guarantor preclude any other or further exercise thereof or the exercise of any other
right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. None of the Administrative Agent and the Guarantors shall be deemed to have waived any rights hereunder unless such waiver
shall be in writing and signed by such parties. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the Borrower, the Guarantors and the Administrative Agent, with the prior written consent of the Required Lenders (except as otherwise provided in the Credit Agreement).

 SECTION 7. Notices. All communications and notices hereunder shall be in writing and given as provided in the
Guarantee Agreement and addressed as specified therein. 
 SECTION 8. Binding Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the parties that are contained in this Agreement
shall bind and inure to the benefit of their respective successors and assigns. Neither the Borrower nor any Guarantor may assign or transfer any of its rights or obligations hereunder (and any such attempted assignment or transfer shall be void)
without the prior written consent of the Required Lenders. Notwithstanding the foregoing, at the time any Guarantor is released from its obligations under the Guarantee Agreement in accordance with such Guarantee Agreement and the Credit Agreement,
such Guarantor will cease to have any rights or obligations under this Agreement. 
 SECTION 9. Survival of Agreement;
Severability. 
 (a) All covenants and agreements made by the Borrower and each Guarantor herein and in the certificates or
other instruments prepared or delivered in connection with this Agreement or the other Loan Documents shall be considered to have been relied upon by the Administrative Agent, the Lenders and each Guarantor and shall survive the making by the
Lenders of the 
  

 Exhibit E-2 

 
Loans and the issuance of the Letters of Credit by the Issuing Bank, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loans or any other fee
or amount payable under the Credit Agreement or this Agreement or under any of the other Loan Documents is outstanding and unpaid or the LC Exposure does not equal zero and as long as the Commitments have not been terminated. 

(b) In case one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, no
party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the
invalid, illegal or unenforceable provisions. 
 SECTION 10. Counterparts. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts) each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall be effective with respect to any Guarantor when a
counterpart bearing the signature of such Guarantor shall have been delivered to the Administrative Agent. Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement. 
 SECTION 11. Rules of Interpretation. The rules of interpretation specified in
Section 1.3 of the Credit Agreement shall be applicable to this Agreement. 
 SECTION 12. Additional
Guarantors. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party of the Borrower that was not in existence or not such a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the
Guarantee Agreement as Guarantor upon becoming such a Subsidiary Loan Party. Upon the execution and delivery, after the date hereof, by the Administrative Agent and such Subsidiary of an instrument in the form of Annex I hereto, such
Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor hereunder. The execution and delivery of any instrument adding an additional Guarantor as a party to this Agreement shall not require
the consent of any Guarantor hereunder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to this Agreement. 

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

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EACH OF THE SUBSIDIARIES LISTED ON
SCHEDULE I HERETO, as a Guarantor
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit E-3 

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit E-4 

 SCHEDULE I 

TO THE INDEMNITY, SUBROGATION 

AND CONTRIBUTION AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Schedule I-E 

 ANNEX I TO 

THE INDEMNITY, SUBROGATION AND 

CONTRIBUTION AGREEMENT 

SUPPLEMENT NO. [    ] dated as of [            ], to the
Indemnity, Subrogation and Contribution Agreement dated as of August 3, 2007 (as the same may be amended, supplemented or otherwise modified from time to time, the “Indemnity, Subrogation and Contribution Agreement”)
among WATSCO, INC., a Florida corporation (the “Borrower”), each Subsidiary listed on Schedule I thereto (the “Guarantors”) and BANK OF AMERICA, N.A., as administrative agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 
 A.
Reference is made to (a) the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from
time to time party thereto (the “Lenders”) and Bank of America, N.A., as the Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”), and (b) the Subsidiary
Guarantee Agreement dated as August 3, 2007, among the Guarantors and the Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”). 

B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Indemnity,
Subrogation and Contribution Agreement and the Credit Agreement. 
 C. The Borrower and the Guarantors have entered into the
Indemnity, Subrogation and Contribution Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that was not in
existence or not such a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the Guarantee Agreement as a Guarantor upon becoming a Subsidiary Loan Party. Section 12 of the Indemnity, Subrogation and
Contribution Agreement provides that additional Subsidiaries may become Guarantors under the Indemnity, Subrogation and Contribution Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the
“New Guarantor”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor under the Indemnity, Subrogation and Contribution Agreement in order to induce the Lenders to
make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued. 

Accordingly, the Administrative Agent and the New Guarantor agree as follows: 

SECTION 1. In accordance with Section 12 of the Indemnity, Subrogation and Contribution Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Indemnity, Subrogation and Contribution Agreement with the same force and effect as if originally named therein as a Guarantor and the New Guarantor hereby agrees to all the terms and provisions of the
Indemnity, Subrogation and Contribution Agreement applicable to it as Guarantor thereunder. Each reference to a Guarantor in the Indemnity, Subrogation and Contribution Agreement shall be deemed to include the New Guarantor. The Indemnity,
Subrogation and Contribution Agreement is hereby incorporated herein by reference. 
  

 Annex I-E-1 

 SECTION 2. The New Guarantor represents and warrants to the Administrative Agent and the
Lenders that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts) each of which
shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Administrative Agent shall have received counterparts of this Supplement that, when taken
together, bear the signature of the New Guarantor and the Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this
Supplement. 
 SECTION 4. Except as expressly supplemented hereby, the Indemnity, Subrogation and Contribution Agreement shall
remain in full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NORTH CAROLINA. 
 SECTION 6. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, neither party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability
of the remaining provisions contained herein and in the Indemnity, Subrogation and Contribution Agreement shall not in any way be affected or impaired. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 7 of the Indemnity,
Subrogation and Contribution Agreement. All communications and notices hereunder to the New Guarantor shall be given to it at the address set forth under its signature. 

SECTION 8. The New Guarantor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent. 
  

 Annex I-E-2 

 IN WITNESS WHEREOF, the New Guarantor and the Administrative Agent have duly executed this
Supplement to the Indemnity, Subrogation and Contribution Agreement as of the day and year first above written. 
  

			
	[Name of New Guarantor]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Address:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Annex I-E-3 

 SCHEDULE I 

TO SUPPLEMENT NO.      TO THE INDEMNITY, 

SUBROGATION AND CONTRIBUTION AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Annex I-E-1 

 EXHIBIT 2.3 

NOTICE OF REVOLVING BORROWING 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement,
and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing requested hereby: 
  

	 	(A)	Aggregate principal amount of Revolving Borrowing 1/:
                                         
        

  

	 	(B)	Date of Revolving Borrowing (which is a Business Day):
                                         
        

  

	 	(C)	Interest Rate basis 2/:
                                         
        

  

	 	(D)	Interest Period 3/:
                                         
        

  

	 	(E)	Location and number of Borrower’s account to which proceeds of Revolving Borrowing are to be disbursed:
                                         
                                         
                           

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of
Section 3.2 of the Credit Agreement are satisfied. 
  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	1/	In the case of the Eurodollar Borrowings, not less than $5,000,000 and an integral multiple of $1,000,000 and, in the case of Base Rate Borrowings, not less than
$1,000,000 and an integral multiple of $100,000. 

	2/	Eurodollar Borrowing or Base Rate Borrowing. 

	3/	Which must comply with the definition of “Interest Period” and end not later than the Commitment Termination Date. 

 

 Exhibit 2.3 

 EXHIBIT 2.5 

NOTICE OF SWINGLINE BORROWING 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement,
and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing requested hereby: 
  

	 	(A)	Principal amount of Swingline Loan 4/:
                                         
        

  

	 	(B)	Date of Swingline Loan (which is a Business Day)
                                         
        

  

	 	(C)	Location and number of Borrower’s account to which proceeds of Swingline Loan are to be disbursed:
                                         
                                         
                           

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of
Section 3.2 of the Credit Agreement are satisfied. 
  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	4/	Not less than $100,000 and an integral multiple of $50,000. 

  

 Exhibit 2.5 

 EXHIBIT 2.7 

FORM OF CONTINUATION/CONVERSION 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Continuation/Conversion and the Borrower hereby requests the conversion or continuation of a Revolving Borrowing
under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing to be converted or continued as requested hereby: 

 

	 	(A)	Revolving Borrowing to which this request applies:
                                         
        

  

	 	(B)	Principal amount of Revolving Borrowing to be converted/continued:
                                         
        

  

	 	(C)	Effective date of election (which is a Business Day):
                                         
        

  

	 	(D)	Interest rate basis:
                                         
        

  

	 	(E)	Interest Period:
                                         
        

  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit 2.7 

 EXHIBIT 3.1(b)(iv) 

FORM OF SECRETARY’S CERTIFICATE OF WATSCO, INC. 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders named therein, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This certificate is being
delivered pursuant to Section 3.1 of the Credit Agreement. 
 I,
[                    ], Secretary of the Borrower, DO HEREBY CERTIFY that: 

(a) there have been no amendments or supplements to, or restatements of, the Articles of Incorporation of the Borrower delivered pursuant
to Section 3.1 of the Credit Agreement; 
 (b) no proceeding have been instituted or are pending or contemplated
with respect to the dissolution, liquidation or sale of all or substantially all the assets of the Borrower or threatening its existence or the forfeiture or any of its corporate rights; 

(c) annexed hereto as Exhibit A is a true and correct copy of the Bylaws of the Borrower as in effect on
                                 ,
             and at all times thereafter through the date hereof; 

(d) annexed hereto as Exhibit B is a true and correct copy of certain resolutions duly adopted by the Board of Directors of the Borrower
at a meeting of said Board of Directors duly called and held on                         
        , 2007, which resolutions are the only resolutions adopted by the Board of Directors of the Borrower or any committee thereof relating to the Credit Agreement and the other Loan Documents to
which the Borrower is a party and the transactions contemplated therein and have not been revoked, amended, supplemented or modified and are in full force and effect on the date hereof; and 

(e) each of the persons named below is and has been at all times since
                                 ,
             a duly elected and qualified officer of the Borrower holding the respective office set forth opposite his or her name and the signature set forth opposite of each such
person is his or her genuine signature: 
  

					
	 Name
	  	 Title
	  	 Specimen Signature

	 [Include all officers who are

signing the Credit Agreement

or any other Loan Documents.]
	  		  	

 IN WITNESS WHEREOF, I have hereunto signed my name this      day of
                        , 2007. 

 

	
	  

	Secretary

 I,
[                        ],
[                        ] of the Borrower, do hereby certify that
[                        ] has been duly elected, is duly qualified and is the Secretary of the Borrower, that the
signature set forth above is [his/her] genuine signature and that [he/she] has held such office at all times since
                                 ,
            . 
  

 Exhibit 3.1(b)(iv) 

 IN WITNESS WHEREOF, I have hereunto signed my name this      day
of                         , 2007. 

 

	
	  

	Title:

  

 Exhibit 3.1(b)(iv) 

 EXHIBIT 3.1(b)(vii) 

FORM OF OFFICER’S CERTIFICATE 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This
certificate is being delivered pursuant to Section 3.1(b)(vii) of the Credit Agreement. 
 I,
[                        ],
[                        ] of the Borrower, DO HEREBY CERTIFY that: 

(a) the representations and warranties of the Borrower set forth in the Credit Agreement are true and correct on and as of the date
hereof; 
 (b) the Borrower is in compliance with the conditions set forth in Section 3.2(a), (b) and
(c) of the Credit Agreement; 
 (c) attached hereto is a completed Compliance Certificate for the fiscal period
ended June 30, 2007; 
 (d) since March 31, 2007 there has been no event or condition which has had or could
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect; 
 (e) no action, suit,
investigation or proceeding is pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect; and 

(f) no consents, approvals, authorizations, registrations or filings are required to be made or obtained by any Loan Party in connection
with the Loans and any transactions being financed with the proceeds of the Loans. 
 IN WITNESS WHEREOF, I have hereunto signed
my name this      day of                         , 2007. 

 

			
	  

	Name:	 	  

	Title:	 	  

  

 Exhibit 3.1(b)(vii) 

 EXHIBIT 5.1(c) 

FORM OF COVENANT COMPLIANCE CERTIFICATE 

Financial Statement Date:
                        ,              

To: Bank of America, N.A., as Administrative Agent 

Ladies and Gentlemen: 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This
certificate is being delivered pursuant to Section 5.1(c) of the Credit Agreement. 
 The undersigned Responsible
Officer hereby certifies as of the date hereof that he/she is the
                                         
        of the Borrower, and that, as such, he/she is authorized to execute and deliver this certificate to the Administrative Agent on the behalf of the Borrower, and that: 

[Use following for fiscal year-end financial statements] 

1. Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 5.1(a) of the
Credit Agreement for the fiscal year of the Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following for fiscal quarter-end financial statements] 

1. Attached hereto as Schedule 1 are the unaudited financial statements required by Section 5.1(b) of the Credit
Agreement for the fiscal quarter of the Borrower ended as of the above date. Such financial statements fairly present the financial condition, results of operations, stockholders’ equity and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such periods, subject only to normal year-end audit adjustments and the absence of footnotes. 

2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under
his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the attached financial statements. 

3. A review of the activities of the Borrower during such fiscal period has been made under the supervision of the undersigned with a
view to determining whether during such fiscal period the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it, and 

[select one:] 
  

 Exhibit 5.1(c) 

 (a) [To the best knowledge of the undersigned during such fiscal period, the Borrower (and,
to the extent applicable, each Subsidiary) performed and observed each covenant and condition of the Loan Documents applicable to it and no Default or Event of Default exists as of the date of this certificate.] 

[or] 

[The following covenants or conditions have not been performed or observed by the Borrower (or, to the extent applicable, by a
Subsidiary) under the Loan Documents and the following is a list of each such Default or Event of Default and its nature and status:] 

[select one:] 

(b) [no change in GAAP or the application thereof has occurred since the date of the Borrower’s audited financial statements last
delivered to the Administrative Agent and each Lender pursuant to Section 5.1(a) of the Credit Agreement.] 
 [or]

 [a change in GAAP or the application thereof has occurred since the date of the Borrower’s audited financial
statements last delivered to the Administrative Agent and the effect of such change on the financial statements attached hereto as Schedule 1 is as follows:] 

4. The financial covenant calculations set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this
certificate and demonstrate compliance with Article VI of the Credit Agreement on and as of the date hereof. 
 IN
WITNESS WHEREOF, the undersigned has executed this certificate as of                         
        , 200    . 
  

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit 5.1(c) 

 SCHEDULE 1 

FISCAL [YEAR END] [QUARTER END] FINANCIAL STATEMENTS 
  

 Exhibit 5.1(c) 

 SCHEDULE 2 

FINANCIAL COVENANT CALCULATIONS 

Financial Statement Date:
                        ,              

[To be provided by the Borrower] 
  

 Exhibit 5.1(c)

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