Document:

Credit Agreement

 Exhibit 10.1 

EXECUTION VERSION 
  

 
  

$150,000,000 

CREDIT AGREEMENT 

dated as of 

April 30, 2010 

among 
 ARGO
GROUP INTERNATIONAL HOLDINGS, LTD., 
 ARGO GROUP US, INC., 

ARGO INTERNATIONAL HOLDINGS LIMITED, and 

ARGO UNDERWRITING AGENCY LIMITED, 

as Borrowers, 

The Lenders Party Hereto 

JPMORGAN CHASE BANK, N.A., 

as Administrative Agent, 

WELLS FARGO BANK, N.A., 

as Syndication Agent 

and 
 BARCLAYS
BANK PLC, THE FROST NATIONAL BANK and U.S. BANK, 
 as Co-Documentation Agents 

 
  

J.P. MORGAN SECURITIES INC., 

and 
 WELLS FARGO
SECURITIES, LLC 
 as Joint Bookrunners and Joint Lead Arrangers 

 
  

 

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
	 ARTICLE I    Definitions
	  	1
			
	 SECTION 1.01.
	 	Defined Terms	  	1
	 SECTION 1.02.
	 	Classification of Loans and Borrowings	  	22
	 SECTION 1.03.
	 	Terms Generally	  	22
	 SECTION 1.04.
	 	Accounting Terms; GAAP	  	23
	 SECTION 1.05.
	 	Foreign Currency Calculations	  	23
		
	 ARTICLE II    The Credits
	  	23
			
	 SECTION 2.01.
	 	Commitments	  	23
	 SECTION 2.02.
	 	Loans and Borrowings	  	24
	 SECTION 2.03.
	 	Requests for Revolving Borrowings	  	25
	 SECTION 2.04.
	 	Equalization of Borrowings	  	26
	 SECTION 2.05.
	 	[Intentionally Omitted]	  	27
	 SECTION 2.06.
	 	Letters of Credit	  	27
	 SECTION 2.07.
	 	Funding of Borrowings	  	31
	 SECTION 2.08.
	 	Interest Elections	  	32
	 SECTION 2.09.
	 	Termination and Reduction of Commitments	  	34
	 SECTION 2.10.
	 	Repayment of Loans; Evidence of Debt	  	35
	 SECTION 2.11.
	 	Prepayment of Loans	  	36
	 SECTION 2.12.
	 	Fees	  	36
	 SECTION 2.13.
	 	Interest	  	37
	 SECTION 2.14.
	 	Alternate Rate of Interest	  	38
	 SECTION 2.15.
	 	Increased Costs	  	39
	 SECTION 2.16.
	 	Break Funding Payments	  	40
	 SECTION 2.17.
	 	Taxes	  	40
	 SECTION 2.18.
	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	42
	 SECTION 2.19.
	 	Mitigation Obligations; Replacement of Lenders	  	43
	 SECTION 2.20.
	 	Joint and Several Liability of Borrowers.	  	44
	 SECTION 2.21.
	 	Additional Reserve Costs	  	46
	 SECTION 2.22.
	 	Defaulting Lenders	  	46
		
	 ARTICLE III    Representations and Warranties
	  	48
			
	 SECTION 3.01.
	 	Organization; Powers	  	48
	 SECTION 3.02.
	 	Authorization; Enforceability	  	48
	 SECTION 3.03.
	 	Governmental Approvals; No Conflicts	  	48
	 SECTION 3.04.
	 	Financial Condition; No Material Adverse Change	  	48
	 SECTION 3.05.
	 	Properties	  	49
	 SECTION 3.06.
	 	Litigation and Environmental Matters	  	49
	 SECTION 3.07.
	 	Compliance with Laws and Agreements	  	49
	 SECTION 3.08.
	 	Investment Company Status	  	49
	 SECTION 3.09.
	 	Taxes	  	49

  

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	 SECTION 3.10.
	 	ERISA	  	50
	 SECTION 3.11.
	 	Insurance Licenses	  	50
	 SECTION 3.12.
	 	Subsidiaries	  	50
	 SECTION 3.13.
	 	Material Agreements	  	50
	 SECTION 3.14.
	 	Environmental Matters	  	50
	 SECTION 3.15.
	 	Disclosure	  	51
	 SECTION 3.16.
	 	Solvency	  	51
	 SECTION 3.17.
	 	Foreign Pension Plan	  	51
		
	 ARTICLE IV    Conditions
	  	52
			
	 SECTION 4.01.
	 	Effective Date	  	52
	 SECTION 4.02.
	 	Each Credit Event	  	53
		
	 ARTICLE V    Affirmative Covenants
	  	53
			
	 SECTION 5.01.
	 	Financial Statements; Ratings Change and Other Information	  	53
	 SECTION 5.02.
	 	Notices of Material Events	  	56
	 SECTION 5.03.
	 	Existence; Conduct of Business	  	57
	 SECTION 5.04.
	 	Payment of Obligations	  	57
	 SECTION 5.05.
	 	Maintenance of Properties; Insurance	  	57
	 SECTION 5.06.
	 	Books and Records; Inspection Rights	  	57
	 SECTION 5.07.
	 	Compliance with Laws	  	58
	 SECTION 5.08.
	 	Use of Proceeds and Letters of Credit	  	58
	 SECTION 5.09.
	 	Insurance Licenses and Permits	  	58
		
	 ARTICLE VI    Negative Covenants
	  	58
			
	 SECTION 6.01.
	 	Indebtedness	  	58
	 SECTION 6.02.
	 	Liens	  	60
	 SECTION 6.03.
	 	Fundamental Changes	  	61
	 SECTION 6.04.
	 	Investments, Loans, Advances, Guarantees and Acquisitions	  	62
	 SECTION 6.05.
	 	Swap Agreements	  	63
	 SECTION 6.06.
	 	Restricted Payments	  	63
	 SECTION 6.07.
	 	Transactions with Affiliates	  	64
	 SECTION 6.08.
	 	Restrictive Agreements	  	64
	 SECTION 6.09.
	 	Minimum Interest Coverage Ratio	  	64
	 SECTION 6.10.
	 	Maximum Leverage Ratio	  	65
	 SECTION 6.11.
	 	Tangible Net Worth	  	65
	 SECTION 6.12.
	 	Risk Based Capital Ratio	  	65
	 SECTION 6.13.
	 	Fiscal Year	  	65
	 SECTION 6.14.
	 	Sale and Leaseback Transactions	  	65
	 SECTION 6.15.
	 	Rentals	  	65
	 SECTION 6.16.
	 	Subordinated Indebtedness; Other Indebtedness and Payments	  	65
		
	 ARTICLE VII    Events of Default
	  	66
		
	ARTICLE VIII    The Administrative Agent	  	68

  

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	 ARTICLE IX    Miscellaneous
	  	70
			
	 SECTION 9.01.
	 	Notices	  	70
	 SECTION 9.02.
	 	Waivers; Amendments	  	71
	 SECTION 9.03.
	 	Expenses; Indemnity; Damage Waiver	  	72
	 SECTION 9.04.
	 	Successors and Assigns	  	74
	 SECTION 9.05.
	 	Survival	  	77
	 SECTION 9.06.
	 	Counterparts; Integration; Effectiveness	  	77
	 SECTION 9.07.
	 	Severability	  	77
	 SECTION 9.08.
	 	Right of Setoff	  	77
	 SECTION 9.09.
	 	Governing Law; Jurisdiction; Consent to Service of Process	  	78
	 SECTION 9.10.
	 	WAIVER OF JURY TRIAL	  	78
	 SECTION 9.11.
	 	Headings	  	79
	 SECTION 9.12.
	 	Confidentiality	  	79
	 SECTION 9.13.
	 	Interest Rate Limitation	  	80
	 SECTION 9.14.
	 	USA PATRIOT Act	  	80
	 SECTION 9.15.
	 	Conversion of Currencies	  	80
	 SECTION 9.16.
	 	Appointment and Authorization of Borrower Representative.	  	81

  

	
	 SCHEDULES:

	
	 Schedule 1.01 — Pricing Schedule

	 Schedule 2.01 — Commitments

	 Schedule 3.11 — Licenses

	 Schedule 3.12 — Subsidiaries

	 Schedule 6.01 — Existing Indebtedness

	 Schedule 6.02 — Existing Liens

	 Schedule 6.08 — Existing Restrictions

	
	 EXHIBITS:

	
	 Exhibit A — Form of Assignment and Assumption

	 Exhibit B — Mandatory Costs Rate

 

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 CREDIT AGREEMENT dated as of April 30, 2010, among ARGO GROUP INTERNATIONAL HOLDINGS,
LTD, ARGO GROUP US, INC., ARGO INTERNATIONAL HOLDINGS LIMITED, and ARGO UNDERWRITING AGENCY LIMITED, as Borrowers, the LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent. 

The parties hereto agree as follows: 

ARTICLE I 

Definitions 

SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
 “Acquired Entity or
Business” means either (a) the assets constituting a business, division, facility, product line or line of business of any Person not already a Subsidiary or (b) all of the capital stock of any such Person, which Person shall, as
a result of such acquisition or merger, become a Wholly-Owned Subsidiary of the Parent (or shall be merged with and into the Parent or a Wholly-Owned Subsidiary, with the Parent or such Wholly-Owned Subsidiary being the surviving Person).

 “Adjusted Eurocurrency Rate” means, with respect to any Eurocurrency Borrowing in Dollars for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the Eurocurrency Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. For all other Eurocurrency Borrowings,
“Adjusted Eurocurrency Rate” means the Eurocurrency Rate. 
 “Administrative Agent” means JPMCB,
together with its permitted successors and assigns, in its capacity as administrative agent for the Lenders hereunder. 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 “Advance” means any Loan or any Letter of Credit. 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

“Agreement” means this Credit Agreement, as amended, restated, modified or supplemented from time to time. 

“Agreement Currency” shall have the meaning assigned to such term in Section 9.15(b). 

 

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 “Alternate Base Rate” means, for any day, a rate per
annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus
 1/2 of 1% and (c) the Adjusted Eurocurrency
Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the avoidance of doubt, the Adjusted Eurocurrency Rate for any day shall be based on the rate
appearing on the Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds
Effective Rate or the Adjusted Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted Eurocurrency Rate, respectively. 

“Annual Statement” means the annual statutory financial statement of any Insurance Subsidiary required to be filed with
the insurance commissioner (or similar authority) of its jurisdiction of incorporation, which statement shall be in the form required by such Insurance Subsidiary’s jurisdiction of incorporation or, if no specific form is so required, in the
form of financial statements recommended by the NAIC to be used for filing annual statutory financial statements and shall contain the type of information recommended by the NAIC to be disclosed therein, together with all exhibits or schedules filed
therewith, or, in the case of an Insurance Subsidiary not domiciled in the United States, any comparable statement. 

“Applicable Creditor” shall have the meaning assigned to such term in Section 9.15(b). 

“Applicable Lending Installation” is defined in Section 2.02(e). 

“Applicable Rate” means, for any day, with respect to any ABR Loan or Eurocurrency Loan or with respect to the facility
fees payable hereunder, the applicable rate per annum set forth on Schedule 1.01 under the caption “Eurocurrency Spread”, “Alternative Base Rate Spread” or “Facility Fee Rate”. 

“Approved Fund” has the meaning assigned to such term in Section 9.04. 

“Argo US” means Argo Group US, Inc., a Delaware corporation. 

“Argo Investment Policy” means the investment policy of the Parent and its Subsidiaries delivered to the Administrative
Agent and the Lenders prior to the Effective Date, together with any amendments or supplements thereto which do not materially alter or change the guidelines or objectives of such policy as exist on the Effective Date. 

“Asset Disposition” means any sale, transfer or other disposition of any asset of a Borrower or any Subsidiary in a
single transaction or in a series of related transactions (other than the sale of inventory or products in the ordinary course of business, the sale of obsolete or worn out property in the ordinary course of business or the sale of cash, cash
equivalents and other investments made in accordance with Section 6.04(a) in the ordinary course of business). 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent. 

 

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 “Availability Period” means the period from and including the Effective
Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments. 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America. 

“Borrower Representative” shall mean Argo US in its capacity as borrowing agent and Loan administrator for the Borrowers
hereunder and under each of the other Credit Documents. 
 “Borrowers” means, individually and collectively,
the Parent, Argo US, Argo International Holdings Limited, a private limited liability company organized under the laws of England and Wales and registered under company number: 06543704 and Argo Underwriting Agency Limited, a private limited
liability company organized under the laws of England and Wales and registered under company number: 03741768. 

“Borrowing” means Revolving Loans of the same Type, made pursuant to the same kind of commitment (i.e., either Dollar
Tranche Commitment or Multicurrency Tranche Commitment), made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect. 

“Borrowing Request” means a request by the Borrower Representative for a Revolving Borrowing in accordance with
Section 2.03. 
 “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City, London or Bermuda are authorized or required by law to remain closed; provided that, when used in connection with a Eurocurrency Loan, the term “Business Day” shall mean any day on which banks are
generally open in London for the conduct of substantially all of their commercial lending activities or for the sale and purchase of Euros which is also a day on which the TARGET (Trans-European Automated Real-Time Gross Settlement Express Transfer)
payment system is open for settlement of payment in Euros. 
 “Capital Lease Obligations” of any Person means
the obligations of such Person to pay rent or other amounts under any lease of (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. 

“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of Equity Interests representing more than 30% of the aggregate
ordinary voting power represented by the issued and outstanding Equity Interests of the Parent; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the

  

 3 

 
Parent by Persons who were neither (i) nominated by the board of directors of the Parent nor (ii) appointed by directors so nominated; (c) the acquisition of direct or indirect
Control of the Parent by any Person or group; (d) except as otherwise expressly permitted under the terms of this Agreement (including a disposition permitted under Section 6.03(b)), the Parent shall cease to own and control, directly or
indirectly, free and clear of all Liens and other encumbrances all of the economic and voting rights associated with all of the outstanding capital stock of each of its Insurance Subsidiaries or shall cease to have the power, directly or indirectly,
to elect all of the members of the board of directors of each of its Insurance Subsidiaries; (e) except as otherwise expressly permitted under the terms of this Agreement (including a disposition permitted under Section 6.03(b)), Argo US
shall cease to own and control, directly or indirectly, free and clear of all Liens and other encumbrances all of the economic and voting rights associated with all of the outstanding capital stock of each of its Insurance Subsidiaries or shall
cease to have the power, directly or indirectly, to elect all of the members of the board of directors of each of its Insurance Subsidiaries or (f) the Parent shall cease to own and control, directly or indirectly, free and clear of all Liens
and other encumbrances all of the economic and voting rights associated with all of the outstanding capital stock of any of the other Borrowers or shall cease to have the power, directly or indirectly, to elect all of the members of the board of
directors of any of the other Borrowers. 
 “Change in Law” means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or
the Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) 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. 
 “Charges” has the
meaning set forth in Section 9.13. 
 “Code” means the Internal Revenue Code of 1986, as amended from time
to time. 
 “Commitment” means, with respect to each Lender, the sum of the Dollar Tranche Commitment and the
Multicurrency Tranche Commitment of such Lender. 
 “Control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative
thereto. 
 “Credit Documents” means this Agreement and any note issued pursuant to Section 2.10(f)
hereof. 
 “Default” means any event or condition which constitutes an Event of Default or which upon notice,
lapse of time or both would, unless cured or waived, become an Event of Default. 
 “Defaulting Lender” means
any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit 

 

 4 

 
within three Business Days of the date required to be funded by it hereunder, (b) notified any Borrower, the Administrative Agent, the Issuing Bank or any Lender in writing that it does not
intend to comply or is refusing to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other
agreements in which it commits to extend credit, (c) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the
subject of a good faith dispute, or (d) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent
to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has
taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment. 

“Dollar Equivalent” means, on any date of determination (a) with respect to any amount in Dollars, such amount, and
(b) with respect to any amount in any Foreign Currency, the equivalent in Dollars of such amount, determined by the Administrative Agent pursuant to Section 1.05 using the Exchange Rate with respect to such Foreign Currency at the time in
effect under the provisions of such Section. 
 “Dollar Tranche Borrowing” means a Borrowing comprised
exclusively of Dollar Tranche Loans. 
 “Dollar Tranche Commitment” means, with respect to each Lender, the
commitment of such Lender to make Dollar Tranche Loans, expressed as an amount representing the maximum aggregate amount of such Lender’s Dollar Tranche Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time
to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Dollar Tranche Commitment is set forth on
Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Dollar Tranche Commitment, as applicable. The initial aggregate amount of the Lenders’ Dollar Tranche Commitments is $20,000,000.

 “Dollar Tranche Lender” means a Lender with a Dollar Tranche Commitment or any Dollar Tranche Revolving
Credit Exposure. 
 “Dollar Tranche Loan” means a Loan made pursuant to Section 2.01(a). 

“Dollar Tranche Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding
principal amount of such Lender’s Dollar Tranche Loans at such time. 
 “Dollar Tranche Revolving Credit Exposure
Percentage” means, with respect to any Lender, the percentage of the total Dollar Tranche Commitments represented by such Lender’s Dollar Tranche Commitment; provided that for purposes of Section 2.22 when a Defaulting
Lender shall exist, “Dollar Tranche Revolving Credit Exposure Percentage” shall 
  

 5 

 
mean the percentage of the total Dollar Tranche Commitments (disregarding any Defaulting Lender’s Dollar Tranche Commitment) represented by such Lender’s Dollar Tranche Commitment. If
the Dollar Tranche Commitments have terminated or expired, the Dollar Tranche Revolving Credit Exposure Percentages shall be determined based upon the Dollar Tranche Commitments most recently in effect, giving effect to any assignments and to any
Lender’s status as a Defaulting Lender at the time of determination. 
 “Dollar Tranche Utilization
Percentage” means, at any time, the percentage equivalent of the aggregate Dollar Tranche Revolving Credit Exposure at such time divided by the total Dollar Tranche Commitments at such time. 

“Dollars” or “$” refers to lawful money of the United States of America. 

“EBITDA” means, for any applicable computation period, the Parent’s and Subsidiaries’ Net Income on a
consolidated basis from continuing operations, plus, to the extent included in the determination of Net Income, (a) income and franchise taxes paid or accrued during such period, (b) Total Interest Expense for such period and
(c) amortization and depreciation for such period. 
 “Effective Date” means the date on which the
conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). 

“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by 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” means any liability, contingent or
otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Parent or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing; provided that the definition of “Environmental Liability” shall
not include any liability arising out of any insurance policy issued by the Borrowers or any Subsidiary thereof. 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

 

 6 

 “ERISA Affiliate” means any trade or business (whether or not incorporated)
that, together with any Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for 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” means (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 any 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 any Borrower or
any ERISA Affiliate from the PBGC or a plan administrator 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 any 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 any Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any 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. 

“Euro” or “€” means the single currency unit of the Participating Member States. 

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

“Eurocurrency Rate” means, (a) with respect to any Eurocurrency Borrowing denominated in Dollars or Sterling for
any Interest Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m., London time, on the Quotation Day for such Interest Period by reference to the British Bankers’ Association Interest Settlement Rates
for deposits in the currency of such Borrowing (as reflected on the applicable Reuters screen page (or on any successor or substitute page of such page)), for a period equal to such Interest Period and (b) with respect to any Eurocurrency
Borrowing denominated in Euros for any Interest Period, the rate appearing on the Reuters Screen EURIBOR01 Page (it being understood that this rate is the Euro interbank offered rate (known as the “EURIBOR Rate”) sponsored by the Banking
Federation of the European Union and the Financial Markets Association) at approximately 11:00 a.m., London time, on the Quotation Day prior to the commencement of such Interest Period, as the rate for deposits in Euros with a maturity comparable to
such Interest Period. To the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, the “Eurocurrency Rate” shall be the average (rounded upward, if necessary, to the next 1/100 of 1%)
determined by the Administrative Agent of the respective interest rates per annum reported to the Administrative Agent by JPMCB and each other Lender selected by the Administrative Agent (JPMCB and each such other Lender, the “Reference
Lenders”) as the rate at which each Reference Lender offers to place deposits in the currency of such Borrowing for such Interest Period to first-class banks in the London interbank market at approximately 11:00 a.m., London time, on the
Quotation Day for such Interest Period. 
  

 7 

 “Event of Default” has the meaning assigned to such term in Article VII.

 “Exchange Rate” means on any day, for purposes of determining the Dollar Equivalent of any currency other
than Dollars, the rate at which such currency may be exchanged into Dollars at 11:00 a.m. Local Time on such day on the Reuters Currency pages, if available, for such currency. In the event that such rate does not appear on any Reuters Currency
pages, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrowers, or, in the absence of such an agreement, such
Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the market where its foreign currency exchange operations in respect of such currency are then being conducted, at or about such time
as the Administrative Agent shall elect after determining that such rates shall be the basis for determining the Exchange Rate, on such date for the purchase of Dollars for delivery two Business Days later; provided that if at the time of any
such determination, for any reason, no such spot rate is being quoted, the Administrative Agent may use any reasonable method it deems appropriate to determine such rate, and such determination shall be conclusive absent manifest error. 

“Exchange Rate Date” means, if on such date any outstanding Loan or Letter of Credit is (or any Loan or Letter of Credit
that has been requested at such time would be) denominated in a currency other than Dollars, each of: 
 (a) the last Business
Day of each calendar month, 
 (b) if an Event of Default has occurred and is continuing, any Business Day designated as an
Exchange Rate Date by the Administrative Agent in its sole discretion, and 
 (c) each date (with such date to be reasonably
determined by the Administrative Agent) that is on or about the date of (i) a Borrowing Request or an Interest Election Request with respect to any Revolving Borrowing or (ii) each request for the issuance, amendment, renewal or extension
of any Letter of Credit. 
 “Excluded Taxes” means, 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 Borrowers 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 any of the Borrowers is organized or in which its principal office is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request
by the Borrower Representative under Section 2.19(b)), any withholding tax that is imposed by any jurisdiction other than the United Kingdom or Bermuda 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 
  

 8 

 
attributable to such Foreign Lender’s failure to comply with Section 2.17(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 Borrowers with respect to such withholding tax pursuant to Section 2.17(a); provided that the payment obligations of the Borrowers under
Section 2.17(a) are not thereby increased. 
 “Existing Letter of Credit” means letter of credit number
CTCS-713912 issued by JPMCB in the face amount of $140,000 upon the application of Argo US. 
 “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations
for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 

“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of any
Borrower. 
 “Foreign Currency” means Euros or Sterling. 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than the jurisdiction of
organization of the relevant Borrower to or to the account of which any funds are disbursed in the manner contemplated in this Agreement, or by or on account of which any payment obligation is made under the Agreement. For purposes of this
definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

“Foreign Pension Plan” means any plan, fund (including, without limitation, any superannuation fund) or other similar
program established or maintained outside the United States by a Borrower or any one or more of the Subsidiaries primarily for the benefit of employees of such Borrower or any Subsidiary residing outside the United States, which plan, fund or other
similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination or severance of employment, and which plan is not subject to ERISA or the Code. 

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

“Governmental Authority” means 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, including any insurance commissioner or other insurance regulatory authority, exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  

 9 

 “Guarantee” of or by any Person (the “guarantor”) means
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 of the guarantor, direct or indirect, (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 or other obligation or (d) as an account party in respect of
any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any
Guarantee made by any guarantor shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made and (b) the maximum amount for which such
guarantor may be liable pursuant to the terms of the instrument embodying such Guarantee, unless (in the case of a primary obligation that is not Indebtedness) such primary obligation and the maximum amount for which such guarantor may be liable are
not stated or determinable, in which case the amount of such Guarantee shall be such guarantor’s maximum reasonably anticipated liability in respect thereof as determined by the Borrowers in good faith. 

“Hazardous Materials” means 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. 
 “Indebtedness” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid,
(d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person,
(i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances,
(k) all Off-Balance Sheet Liabilities and (l) all Trust Preferred Securities and similarly structured indebtedness. 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. 
  

 10 

 “Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Insurance Subsidiary” means each of Argonaut Insurance Co., Argonaut Great Central Insurance Co., Argonaut-Midwest
Insurance Co., Select Markets Insurance Company, Argonaut-Southwest Insurance Co., Argonaut Limited Risk Insurance Company, Colony Insurance Co., Colony Specialty Insurance Co., Colony National Insurance Co., Rockwood Casualty Insurance Co.,
Somerset Casualty Insurance Co., ARGO RE Limited, and each other Subsidiary which is engaged in the business of insurance or reinsurance, together with their respective successors and permitted assigns. 

“Intercompany Loan Agreement” means that certain letter agreement dated as of April, 2008 between Argo Acquisition,
Limited and Argonaut Group, Inc., together with all amendments and modifications thereto entered into and provided to the Administrative Agent prior to the Effective Date, pursuant to which Argo US extended credit to Argo Acquisition, Limited up to
an original maximum amount of $199,500,000 (of which, up to a maximum of $80,000,000 remains outstanding as of the date hereof). 

“Interest Coverage Ratio” means, as of the end of any fiscal quarter of the Parent, the ratio of (a) EBITDA to
(b) Total Interest Expense, in each case for the period of four fiscal quarters then ended, computed on a consolidated basis for the Parent and its Subsidiaries. 

“Interest Election Request” means a request by the Borrower Representative to convert or continue a Revolving Borrowing
in accordance with Section 2.08. 
 “Interest Payment Date” means (a) with respect to any ABR Loan,
the last day of each March, June, September and December and (b) with respect to any Eurocurrency Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency Borrowing
with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period. 

“Interest Period” means, with respect to any Eurocurrency Borrowing, the period commencing on the date of such Borrowing
and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower Representative may elect; provided, that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period pertaining to a Eurocurrency Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period)
shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing. 
 “Issuing Bank” means JPMCB., in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i). The Issuing Bank 

 

 11 

 
may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate
with respect to Letters of Credit issued by such Affiliate. 
 “JPMCB” means JPMorgan Chase Bank, N.A., a
national banking association, and its successors. 
 “LC Disbursement” means a payment made by the Issuing Bank
pursuant to a Letter of Credit. 
 “LC Exposure” means, 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 yet been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure of any Lender at any time shall be
its Multicurrency Tranche Revolving Credit Exposure Percentage of the total LC Exposure at such time. 

“Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant
to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 

“Letter of Credit” means any letter of credit issued pursuant to this Agreement. 

“Leverage Ratio” means at any time, the ratio of Total Debt at such time to Total Capitalization at such time.

 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 

“Loans” means the loans made by the Lenders to the Borrowers pursuant to this Agreement. 

“Local Time” means (a) with respect to a Loan or Borrowing denominated in Dollars, Chicago time and (b) with
respect to a Loan or Borrowing denominated in any Foreign Currency, London time. 
 “Mandatory Costs Rate”
means the rate calculated in accordance with the formula and in the manner set forth in Exhibit B hereto. 
 “Material
Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of (i) the Parent and the Subsidiaries taken as a whole or (ii) Argo US and its subsidiaries taken
as a whole, (b) the ability of any of the Borrowers to perform any of its payment or other material obligations under this Agreement or any other Credit Document or (c) the rights of or benefits available to the Lenders under this
Agreement or any other Credit Document. 
  

 12 

 “Material Indebtedness” means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrowers and the Subsidiaries in an aggregate principal amount exceeding $10,000,000. For purposes of determining Material Indebtedness, the
“principal amount” of the obligations of a Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Borrower or such Subsidiary would
be required to pay if such Swap Agreement were terminated at such time. 
 “Maturity Date” means April 30,
2013. 
 “Maximum Rate” has the meaning set forth in Section 9.13. 

“Multicurrency Tranche Borrowing” means a Borrowing comprised exclusively of Multicurrency Tranche Loans. 

“Multicurrency Tranche Commitment” means, with respect to each Lender, the commitment of such Lender to make
Multicurrency Tranche Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Multicurrency Tranche Revolving Credit Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each
Lender’s Multicurrency Tranche Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Multicurrency Tranche Commitment, as applicable. The initial aggregate amount of
the Lenders’ Multicurrency Tranche Commitments is $130,000,000. 
 “Multicurrency Tranche Lender” means a
Lender with a Multicurrency Tranche Commitment or any Multicurrency Tranche Revolving Credit Exposure. 
 “Multicurrency
Tranche Loan” means a Loan made pursuant to Section 2.01(b). 
 “Multicurrency Tranche Revolving Credit
Exposure” means, with respect to any Lender at any time, the Dollar Equivalent of the sum of the outstanding principal amount of such Lender’s Multicurrency Tranche Loans and its LC Exposure at such time. 

“Multicurrency Tranche Revolving Credit Exposure Percentage” means, with respect to any Lender, the percentage of the
total Multicurrency Tranche Commitments represented by such Lender’s Multicurrency Tranche Commitment; provided that for purposes of Section 2.22 when a Defaulting Lender shall exist, “Multicurrency Tranche Revolving Credit
Exposure Percentage” shall mean the percentage of the total Multicurrency Tranche Commitments (disregarding any Defaulting Lender’s Multicurrency Tranche Commitment) represented by such Lender’s Multicurrency Tranche Commitment. If
the Multicurrency Tranche Commitments have terminated or expired, the Multicurrency Tranche Revolving Credit Exposure Percentages shall be determined based upon the Multicurrency Tranche Commitments most recently in effect, giving effect to any
assignments and to any Lender’s status as a Defaulting Lender at the time of determination. 
  

 13 

 “Multicurrency Tranche Utilization Percentage” means, at any time, the
percentage equivalent of the aggregate Multicurrency Tranche Revolving Credit Exposure at such time divided by the total Multicurrency Tranche Commitments at such time. 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 

“NAIC” means the National Association of Insurance Commissioners and any successors thereto. 

“Net Income” means, for any computation period, with respect to the Parent on a consolidated basis with its Subsidiaries
(other than any Subsidiary which is restricted from declaring or paying dividends or otherwise advancing funds to its parent whether by contract or otherwise (except pursuant to laws and/or regulations restricting the payment of dividends by
Insurance Subsidiaries)), cumulative net income earned during such period (determined before the deduction of minority interests) as determined in accordance with GAAP. 

“Obligations” shall mean (a) the unpaid principal of and interest on the Loans, (b) the obligation of the
Borrowers to pay the amounts of all drawings, together with interest accrued thereon, made under Letters of Credit, (c) the fees, expenses and all other liabilities of the Borrowers to the Administrative Agent and any Lender, which may arise
under, out of, or in connection with, this Agreement or any other Credit Document. 
 “Off-Balance Sheet
Liability” of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any liability under any Sale and Leaseback Transaction other than Capital
Lease Obligations, (c) any liability under any so-called “synthetic lease” arrangement or transaction entered into by such Person, 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 sheets of such Person. 

“Other Taxes” means 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. 

“Parent” means Argo Group International Holdings, Ltd., a company formed under the laws of Bermuda. 

“Participant” has the meaning set forth in Section 9.04. 

“Participating Member State” means any member state of the European Communities that adopts or has adopted the Euro as
its lawful currency in accordance with the legislation of the European Community relating to the Economic and Monetary Union. 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity
performing similar functions. 
  

 14 

 “Permitted Acquisition” means the acquisition by the Parent or a
Wholly-Owned Subsidiary thereof of an Acquired Entity or Business (including by way of merger of such Acquired Entity or Business with and into the Parent (so long as the Parent is the surviving corporation) or a Wholly-Owned Subsidiary thereof (so
long as the Wholly-Owned Subsidiary is the surviving corporation); provided that (a) in the case of the acquisition of the capital stock of any Person (including by way of merger), such Person shall own no capital stock of any other
Person (excluding de minimis amounts) unless either (i) such Person owns 100% of the capital stock of such other Person or (ii) (x) such Person and its Wholly-Owned Subsidiaries own at least 80% of the consolidated assets of such
other Person and its Subsidiaries and (y) any non-Wholly-Owned Subsidiary of such Person was a non-Wholly-Owned Subsidiary prior to the date of such Permitted Acquisition of such Person; (b) the Acquired Entity or Business acquired
pursuant to the respective Permitted Acquisition is in a business permitted by Section 6.03(c); (c) in the case of a stock acquisition, such acquisition shall have been approved by the board of directors of the Acquired Entity or Business;
and (d) all applicable requirements of Section 6.04(e) applicable to Permitted Acquisitions are satisfied. 

“Permitted Encumbrances” means: 

(a) Liens imposed by law for Taxes that are not yet due or are being contested in compliance with Section 5.04; 

(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law,
arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.04; 

(c) pledges and deposits made in the ordinary course of business for insurance regulatory or licensing purposes or in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations; 
 (d) deposits required for
insurance regulatory or licensing purposes or 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 liens in respect of judgments that do not constitute an Event of Default under clause (k) of
Article VII; 
 (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 interfere with the ordinary conduct of business of a Borrower or any Subsidiary; and

 (g) licenses, sublicenses, leases or subleases granted to other Persons not materially interfering with the conduct of the
business of a Borrower or any Subsidiary; 
 (h) Liens incurred pursuant to ordinary course investing, clearing and settling
activities; and 
  

 15 

 (i) bankers’ Liens, rights of setoff and other similar Liens not granted to secure
specific Indebtedness existing solely with respect to cash and cash equivalents on deposit in one or more accounts maintained by a Borrower or any Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with
which such accounts are maintained; 
 provided that the term “Permitted Encumbrances” shall not include any Lien
securing Indebtedness. 
 “Permitted Purchase Money Indebtedness” means, with respect to any Person, any
Indebtedness, whether secured or unsecured, including Capital Lease Obligations, incurred by such Person to finance the acquisition of fixed assets, so long as (a) at the time of such incurrence, no Default has occurred and is continuing or
would result from such incurrence, (b) such Indebtedness has a scheduled maturity and is not due on demand and (c) such Indebtedness does not exceed the lower of the fair market value or the cost of the applicable fixed assets on the date
acquired. 
 “Person” means any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity. 
 “Plan” means 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 a 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. 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in
effect at its office located at 270 Park Avenue, New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 

“Quotation Day” means, with respect to any Eurocurrency Borrowing and any Interest Period, the day on which it is market
practice in the London interbank market for prime banks to give quotations for deposits in the currency of such Borrowing for delivery on the first day of such Interest Period. If such quotations would normally be given by prime banks on more than
one day, the Quotation Day will be the last of such days. 
 “Rating” has the meaning set forth in Schedule
1.01. 
 “Register” has the meaning set forth in Section 9.04. 

“Related Parties” means, 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. 
 “Required
Lenders” means, at any time, subject to Section 2.22, Lenders having Revolving Credit Exposures and unused Commitments representing at least 51% of the sum of the total Revolving Credit Exposures and unused Commitments at such time.

  

 16 

 “Required Multicurrency Tranche Lenders” means, at any time, subject to
Section 2.22, Lenders having Multicurrency Tranche Revolving Credit Exposures and unused Multicurrency Tranche Commitments representing at least 51% of the sum of the total Multicurrency Tranche Revolving Credit Exposures and unused
Multicurrency Tranche Commitments at such time. 
 “Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Parent or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Parent or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Parent or any
Subsidiary. 
 “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of such
Lender’s Dollar Tranche Revolving Credit Exposure at such time and its Multicurrency Tranche Revolving Credit Exposure at such time. 

“Revolving Loan” means a Dollar Tranche Loan or a Multicurrency Tranche Loan. 

“Risk Based Capital Ratio” means, with respect to any Specified Insurance Subsidiary, the ratio (expressed as a
percentage) of the “Total Adjusted Capital” of such Specified Insurance Subsidiary at such time to the “Authorized Control Level Risk-Based Capital” of such Specified Insurance Subsidiary at such time, in each case as set forth
on lines 28 and 29, respectively of the applicable December 31 Annual Statements for such Specified Insurance Subsidiary. 

“S&P” means Standard & Poor’s Rating Services, a division of the McGraw Hill Companies, Inc.

 “Sale and Leaseback Transaction” means any sale or other transfer of property by any Person with the intent
to lease such property as lessee. 
 “SAP” means, with respect to any Insurance Subsidiary, the statutory
accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) as of the date hereof in the jurisdiction of incorporation of such Insurance Subsidiary for the preparation of annual statements and other
financial reports by insurance companies of the same type as such Insurance Subsidiary. 
 “Significant Insurance
Subsidiary” means any Significant Subsidiary which is an Insurance Subsidiary. 
 “Significant
Subsidiary” of a Person means a “significant subsidiary” as defined in Rule 1 02(w) of Regulation S-X of the Securities and Exchange Commission (17 CFR Part 210). Unless otherwise expressly provided, all references herein to a
“Significant Subsidiary” shall mean a Significant Subsidiary of any of the Borrowers. 
  

 17 

 “Solvent” means, when used with respect to a Person, that (a) the fair
saleable value of the assets of such Person is in excess of the total amount of the present value of its liabilities (including for purposes of this definition all liabilities (including loss reserves as determined by such Person), whether or not
reflected on a balance sheet prepared in accordance with GAAP and whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed), (b) such Person is able to pay its debts or obligations in the ordinary course as
they mature and (c) such Person does not have unreasonably small capital to carry out its business as conducted and as proposed to be conducted. “Solvency” shall have a correlative meaning. 

“Specified Insurance Subsidiaries” means, individually and collectively, each of Argonaut Insurance Company, an Illinois
insurance company, Rockwood Casualty Insurance Company, a Pennsylvania insurance company and Colony Insurance Company, a Virginia insurance company. 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the
denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is
subject with respect to the Adjusted Eurocurrency Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurocurrency 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 such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Sterling” or “£” means the lawful currency of the United Kingdom of Great Britain and Northern
Ireland. 
 “Subordinated Indebtedness” means (a) for purposes of Section 6.01(d), Indebtedness the
payment of which is subordinated to all obligations of the applicable Borrower or Borrowers hereunder or in connection herewith on terms of subordination no less favorable to the Lenders than the terms of subordination in the Trust Preferred
Securities referred to in part (ix) of the definition of Trust Preferred Securities and (b) for purposes of all other sections of this Agreement, Indebtedness the payment of which is subordinated to any of the obligations of the applicable
Borrower or Borrowers hereunder or in connection herewith, including without limitation the obligations of the Borrowers in respect of the Trust Preferred Securities or Indebtedness incurred pursuant to Section 6.01(d) or (f). 

“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited
liability company, partnership, 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, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the
ordinary voting power or, in the case of a partnership, more than 
  

 18 

 
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. 
 “Subsidiary” means any subsidiary of
the Parent. 
 “Subsidiary Rating” has the meaning set forth in Schedule 1.01 

“Substantial Portion” means, with respect to the property of the Parent and its Subsidiaries, property which
(a) represents more than 10% of the consolidated assets of the Parent and its Subsidiaries or (solely with respect to sales of property of Argo US and its subsidiaries) of Argo US and its subsidiaries, in either case as would be shown in the
consolidated financial statements of the Parent and its Subsidiaries (or, as applicable, Argo US and its subsidiaries) as at the beginning of the twelve-month period ending with the last day of the month preceding the month in which such
determination is made, or (b) is responsible for more than 10% of the consolidated net sales or of the consolidated net income of the Parent and its Subsidiaries or (solely with respect to sales of property of Argo US and its subsidiaries) of
Argo US and its subsidiaries, in either case as reflected in the financial statements referred to in clause (a) above. 

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or
similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of
a Borrower or the Subsidiaries shall be a Swap Agreement. 
 “Tangible Net Worth” means, with respect to a
Borrower, an amount equal to (a) such Borrower’s total shareholder’s equity determined in accordance with GAAP, minus (b) the aggregate book value of the intangible assets, including goodwill, of such Borrower and its
subsidiaries, all determined in accordance with GAAP. 
 “Taxes” means any and all present or future taxes,
levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
 “Total
Capitalization” means an amount equal to the sum of Tangible Net Worth of the Parent plus Total Debt. 
 “Total
Debt” means all Indebtedness of the Parent and its Subsidiaries, on a consolidated basis, which appears on a balance sheet calculated in accordance with GAAP plus, without duplication (a) the principal amount of all Trust
Preferred Securities, (b) all Off-Balance Sheet Liabilities of the Parent or any Subsidiary, (c) the face amount of all outstanding letters of credit in respect of which the Parent or any Subsidiary has any actual or contingent
reimbursement obligation (excluding letters of credit which are issued to support the reinsurance obligations of Subsidiaries of the Parent which have been fully collateralized and fully collateralized letters of credit which are issued to support
the capital requirements at Lloyd’s of 
  

 19 

 
London, otherwise known as “Funds at Lloyd’s”), (d) the maximum aggregate amount (giving effect to any netting agreements) that the Parent and its Subsidiaries would be
required to pay if all Swap Agreements of the Parent and its Subsidiaries with respect to interest on indebtedness for money borrowed were terminated at any date of determination and (d) the principal amount of all Guarantees of the Parent and
its Subsidiaries. 
 “Total Interest Expense” means, for any period, total cash interest expense deducted in
the computation of Net Income for such period (including that attributable to Capital Lease Obligations and interest paid under synthetic leases) of the Parent and its Subsidiaries for such period with respect to all outstanding Indebtedness of the
Parent and its Subsidiaries. 
 “Transactions” means the execution, delivery and performance by the Borrowers
of this Agreement, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. 

“Trust Preferred Securities” means, collectively, the following, which, without duplication, do not exceed $311,334,000
in the aggregate: 
 (i) those certain Floating Rate Capital Securities in the amount of $15,000,000 that were issued by
Argonaut Group Statutory Trust on May 15, 2003 and that mature in 2033, those certain Floating Rate Common Securities in the amount of $464,000 that were issued by Argonaut Group Statutory Trust to Argo US on May 15, 2003 and that mature
in 2033, and the related Floating Rate Junior Subordinated Deferrable Interest Debentures in the amount of $15,464,000 that were issued by Argo US on May 15, 2003 and that mature in 2033; 

(ii) those certain Capital Securities in the amount of $12,000,000 that were issued by Argonaut Group Statutory Trust III on
December 16, 2003 and that mature in 2034, those certain Common Securities in the amount of $372,000 that were issued by Argonaut Group Statutory Trust III to Argo US on December 16, 2003 and that mature in 2034, and the related Floating
Rate Junior Subordinated Debt Securities due 2034 in the amount of $12,372,000 that were issued by Argo US on December 16, 2003 and that mature in 2034; 

(iii) those certain Preferred Securities in the amount of $13,000,000 that were issued by Argonaut Group Statutory Trust IV on
April 29, 2004 and that mature in 2034, those certain Common Securities in the amount of $403,000 that were issued by Argonaut Group Statutory Trust IV to Argo US on April 29, 2004 and that mature in 2034, and the related Floating Rate
Junior Subordinated Debt Securities due 2034 in the amount of $13,403,000 that were issued by Argo US on April 29, 2004 and that mature in 2034; 

(iv) those certain Floating Rate Capital Securities in the amount of $13,000,000 that were issued by Argonaut Group Statutory Trust VI on
May 12, 2004 and that mature in 2034, those certain Floating Rate Common Securities in the amount of $403,000 that were issued by Argonaut Group Statutory Trust VI to Argo US on May 12, 2004 and that mature in 2034, and the related
Floating Rate Junior Subordinated Deferrable Interest Debentures in the amount of $13,403,000 that were issued by Argo US on May 12, 2004 and that mature in 2034; 

(v) those certain Preferred Securities in the amount of $12,000,000 that were issued by Argonaut Group Statutory Trust V on May 26,
2004 and that mature in 2034, those 
  

 20 

 
certain Common Securities in the amount of $372,000 that were issued by Argonaut Group Statutory Trust V to Argo US on May 26, 2004 and that mature in 2034, and the related Floating Rate
Junior Subordinated Debentures due 2034 in the amount of $12,372,000 that were issued by Argo US on May 26, 2004 and that mature in 2034; 

(vi) those certain Preferred Securities in the amount of $15,000,000 that were issued by Argonaut Group Statutory Trust VII on
September 17, 2004 and that mature in 2034, those certain Common Securities in the amount of $464,000 that were issued by Argonaut Group Statutory Trust VII to Argo US on September 17, 2004 and that mature in 2034, and the related Floating
Rate Junior Subordinated Debentures due 2034 in the amount of $15,464,000 that were issued by Argo US on September 17, 2004 and that mature in 2034; 

(vii) those certain Preferred Securities in the amount of $15,000,000 that were issued by Argonaut Group Statutory Trust VIII on
September 22, 2004 and that mature in 2034, those certain Common Securities in the amount of $464,000 that were issued by Argonaut Group Statutory Trust VIII to Argo US on September 22, 2004 and that mature in 2034, and the related
Floating Rate Junior Subordinated Debentures due 2034 in the amount of $15,464,000 that were issued by Argo US on September 22, 2004 and that mature in 2034; 

(viii) those certain Preferred Securities in the amount of $15,000,000 that were issued by Argonaut Group Statutory Trust IX on
October 22, 2004 and that mature in 2034, those certain Common Securities in the amount of $464,000 that were issued by Argonaut Group Statutory Trust IX to Argo US on October 22, 2004 and that mature in 2034, and the related Floating Rate
Junior Subordinated Debentures due 2034 in the amount of $15,464,000 that were issued by Argo US on October 22, 2004 and that mature in 2034; 

(ix) those certain Preferred Securities in the amount of $30,000,000 that were issued by Argonaut Group Statutory Trust X on
September 15, 2005 and that mature in 2035, those certain Common Securities in the amount of $928,000 that were issued by Argonaut Group Statutory Trust X to Argo US on September 15, 2005 and that mature in 2035, and the related
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures due 2035 in the amount of $30,928,000 that were issued by Argo US on September 15, 2005 and that mature in 2035; 

(x) those certain Trust Preferred Securities in the amount of $103,100,000 that were issued by PXRE Capital Trust I on January 29,
1997 and that mature in 2027, and the related Junior Subordinated Deferrable Interest Debentures that mature in 2027 that were issued by PXRE Corporation (n/k/a Argo Group US) on January 29, 1997; 

(xi) those certain capital trust pass-through securities in the amount of $18,000,000 that were issued by PXRE Capital Statutory Trust II
on May 15, 2003 and that mature in 2033; 
 (xii) those certain capital trust pass-through securities in the amount of
$15,500,000 that were issued by PXRE Capital Trust III on May 23, 2003 and that mature in 2033; 
  

 21 

 (xiii) those certain capital trust pass-through securities in the amount of $20,600,000 that
were issued by PXRE Capital Statutory Trust V on October 29, 2003 and that mature in 2033; and 
 (xiv) those certain
capital trust pass-through securities in the amount of $10,300,000 that were issued by PXRE Capital Trust VI on November 6, 2003 and that mature in 2033. 

“Trust Preferred Security Indebtedness” means any Indebtedness of a Borrower or a Subsidiary arising under Trust
Preferred Securities. 
 “Type”, when used in reference to any 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 Eurocurrency Rate or the Alternate Base Rate. 

“Wholly-Owned Subsidiary” of a Person means (a) any subsidiary all of the outstanding voting securities of which
shall at the time be owned or controlled, directly or indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or more Wholly-Owned Subsidiaries of such Person, or (b) any partnership,
limited liability company, association, joint venture or similar business organization 100% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled (other than in the case of Foreign Subsidiaries,
director’s qualifying shares and/or other nominal amounts of shares required to be held by Persons other than the Parent and its Subsidiaries under applicable law). 

“Withdrawal Liability” means 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 1.02. Classification
of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by class and Type (e.g., a
“Eurocurrency Revolving Loan”). Borrowings also may be classified and referred to by class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by class and Type (e.g., a
“Eurocurrency Revolving Borrowing”). 
 SECTION 1.03. 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”. Unless the context requires otherwise
(a) 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 from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, 
  

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and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower Representative notifies the Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate
the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower Representative that the Required Lenders request an amendment to
any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied
immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 

SECTION 1.05. Foreign Currency Calculations. (a) For purposes of determining the Dollar Equivalent of any Advance denominated
in a Foreign Currency or any related amount, the Administrative Agent shall determine the Exchange Rate as of the applicable Exchange Rate Date with respect to each Foreign Currency in which any requested or outstanding Advance or Letter of Credit
is denominated and shall apply such Exchange Rates to determine such amount (in each case after giving effect to any Advance to be made or repaid on or prior to the applicable date for such calculation). 

(b) For purposes of any determination hereunder (including determinations under Section 6.01, 6.02, 6.04 6.09, 6.10, 6.11 or 6.12 or
under Article VII), all amounts incurred, outstanding or proposed to be incurred or outstanding in currencies other than Dollars shall be translated into Dollars at the appropriate currency Exchange Rate; provided that no Default shall arise
as a result of any limitation set forth in Dollars in Section 6.01 or 6.02 being exceeded solely as a result of changes in Exchange Rates from those rates applicable at the time or times Indebtedness or Liens were initially consummated in
reliance on the exceptions under such Sections. For purposes of any determination under Section 6.04, 6.09, 6.10, 6.11 or 6.12, the amount of each investment, asset disposition or other applicable transaction denominated in a currency other
than Dollars shall be translated into Dollars at the applicable Exchange Rate. Such Exchange Rates shall be determined in good faith by the Borrowers. 

ARTICLE II 

The Credits 

SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein: 

(a) each Dollar Tranche Lender agrees to make revolving loans denominated in Dollars to the Borrowers from time to time during the
Availability Period in an aggregate 
  

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principal amount that will not result in (a) such Lender’s Dollar Tranche Revolving Credit Exposure exceeding such Lender’s Dollar Tranche Commitment, (b) the sum of the total
Dollar Tranche Revolving Credit Exposures exceeding the total Dollar Tranche Commitments or (c) the sum of the total Revolving Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions
set forth herein, the Borrowers may borrow, prepay and reborrow Dollar Tranche Loans. 
 (b) each Multicurrency Tranche Lender
agrees to make revolving loans denominated in Dollars and Foreign Currencies to the Borrowers from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Multicurrency Tranche
Revolving Credit Exposure exceeding such Lender’s Multicurrency Tranche Commitment, (b) the sum of the total Multicurrency Tranche Revolving Credit Exposures exceeding the total Multicurrency Tranche Commitments, (c) the Dollar
Equivalent of the aggregate amount of all Loans and Letters of Credit denominated in a Foreign Currency exceeding $75,000,000 or (d) the sum of the total Revolving Credit Exposures exceeding the total Commitments. Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Multicurrency Tranche Loans. 

SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of a Borrowing consisting, as applicable,
of either all Dollar Tranche Loans made by the Dollar Tranche Lenders ratably in accordance with their respective Dollar Tranche Commitments or all Multicurrency Tranche Loans made by the Multicurrency Tranche Lenders ratably in accordance with
their respective Multicurrency Tranche Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several
and no Lender shall be responsible for any other Lender’s failure to make Loans as required hereby. 
 (b) Subject to
Section 2.14, (i) each Revolving Borrowing denominated in Dollars shall be comprised entirely of ABR Loans or Eurocurrency Loans as the Borrower Representative may request in accordance herewith and (ii) each Revolving Borrowing
denominated in a Foreign Currency shall be comprised entirely of Eurocurrency Loans. Each Lender at its option may make any Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided
that any exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in accordance with the terms of this Agreement. 

(c) At the commencement of each Interest Period for any Eurocurrency Revolving Borrowing, such Borrowing shall be in an aggregate amount
that is an integral multiple of $1,000,000 (or, for any Foreign Currency Borrowing, an approximate equivalent thereof as determined by the Administrative Agent) and not less than $1,000,000 (or, for any Foreign Currency Borrowing, an approximate
equivalent thereof as determined by the Administrative Agent). At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $1,000,000;
provided that an ABR Revolving Borrowing may be in an aggregate amount (i) that is equal to the entire unused balance of the total Commitments or (ii) for a Multicurrency Tranche Loan, that is required to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.06(e). Borrowings of more than one Type may be outstanding at the 
  

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same time; provided that there shall not at any time be more than a total of twelve Eurocurrency Revolving Borrowings which are Dollar Tranche Drawings or twelve Eurocurrency Revolving
Borrowings which are Multicurrency Tranche Borrowings. 
 (d) Notwithstanding any other provision of this Agreement, the
Borrowers shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 

(e) Notwithstanding any other provision of this Agreement, each Lender at its option may make any ABR Loan or Eurocurrency Loan by
causing any domestic or foreign office, branch or Affiliate of such Lender (an “Applicable Lending Installation”) to make such Loan that has been designated by such Lender to the Administrative Agent. All terms of this Agreement
shall apply to any such Applicable Lending Installation of such Lender and the Loans and any Notes issued hereunder shall be deemed held by each Lender for the benefit of any such Applicable Lending Installation. Each Lender may, by written notice
to the Administrative Agent and the Borrower Representative, designate replacement or additional Applicable Lending Installations through which Loans will be made by it and for whose account Loan payments are to be made. 

SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing, the Borrower Representative shall notify the
Administrative Agent of such request by telephone (a) in the case of a Eurocurrency Borrowing, not later than 10:00 a.m., Local Time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
later than 10:00 a.m., Local Time, one Business Day before the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy (or by electronic communication
if, after the date hereof, arrangements for doing so shall be approved by the Administrative Agent) to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower Representative.
Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: 

(i) the Borrower to which the proceeds of the requested Borrowing shall be disbursed; 

(ii) the aggregate amount of the requested Borrowing; 

(iii) whether such Borrowing is to be comprised exclusively of Dollar Tranche Loans or exclusively of Multicurrency
Tranche Loans; 
 (iv) the currency (which may be Dollars or a Foreign Currency) in which such Borrowing is to be
denominated; 
 (v) the date of such Borrowing, which shall be a Business Day; 

(vi) in the case of a Borrowing denominated in Dollars, whether such Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; 
  

 25 

 (vii) in the case of a Eurocurrency Borrowing, the initial Interest Period
to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; 

(viii) the location and number of the account of a Borrower to which funds are to be disbursed, which shall comply with
the requirements of Section 2.07; and 
 (ix) information confirming the Borrowers’ compliance with
Section 2.04 (including reasonably detailed computations in support of such confirmation). 
 If no election as to the Type of Revolving
Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing, unless such Revolving Borrowing is denominated in a Foreign Currency, in which case such Revolving Borrowing shall be a Eurocurrency Borrowing. If no Interest
Period is specified with respect to any requested Eurocurrency Revolving Borrowing, then the Borrower Representative shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request
in accordance with this Section, but in any event prior to 11:00 a.m., Local Time on the date received if received before 10:00 a.m. Local Time, the Administrative Agent shall advise each applicable Lender of the details thereof and of the amount of
such Lender’s Loan to be made as part of the requested Borrowing. 
 SECTION 2.04. Equalization of Borrowings.

 (a) It is the intent of the parties that the Dollar Tranche Utilization Percentage and the Multicurrency Tranche Utilization
Percentage be at all times equal or as close to equal as reasonably possible giving effect to the Borrowers’ right to utilize the Multicurrency Tranche Commitment for Loans denominated in Foreign Currencies and for Letters of Credit.
Accordingly, the Borrowers shall, in consultation with the Administrative Agent, (i) allocate all Borrowings and prepayments between the Dollar Tranche Commitments and Dollar Tranche Loans on the one hand and the Multicurrency Tranche
Commitments and Multicurrency Tranche Loans on the other hand in such a manner as to accomplish such intent and (ii) whether or not resulting in breakage expense to the Borrowers, cause outstanding Borrowings under one facility (i.e., the
facility established hereby for Dollar Tranche Loans or for Multicurrency Tranche Loans) to be refinanced by Borrowings under the other facility established hereby as of the end of each Interest Period applicable to any Borrowing in such a manner as
to accomplish such intent. 
 (b) Notwithstanding anything in this Agreement to the contrary, (i) for purposes of
determining the Borrowers’ compliance with the Borrowing minimums and increments set forth in Section 2.02(c), amounts borrowed simultaneously pursuant to clause (i) of the second sentence of Section 2.04(a) shall be aggregated;
(ii) prepayments made pursuant to clause (ii) of the second sentence of Section 2.04(a) shall not be subject to the prepayment minimums and increments set forth in Section 2.11(b); and (iii) the conditions precedent set
forth in Section 4.02(a) and (b) (other than the absence of a Default under Article 7(h) or (i)) shall not be applicable to Borrowings made (and applied exclusively to the refinancing of Borrowings) pursuant to clause (ii) of the
second sentence of Section 2.04(a). 
  

 26 

 (c) Notwithstanding the foregoing, no equalization Borrowing or related prepayment pursuant
to this Section 2.04 shall be required if, absent such Borrowing and repayment and after giving effect to any Borrowing or prepayment being made which gave rise to the applicability of this Section 2.04, (i) the Dollar Tranche
Revolving Credit Exposure does not exceed by $1,000,000 or more an amount equal to what the Dollar Tranche Revolving Credit Exposure would be if the Dollar Tranche Revolving Credit Exposure Percentage and the Multicurrency Tranche Revolving Credit
Exposure Percentage were equal and (ii) the Multicurrency Tranche Revolving Credit Exposure does not exceed by $1,000,000 or more an amount equal to what the Multicurrency Tranche Revolving Credit Exposure would be if the Dollar Tranche
Revolving Credit Exposure Percentage and the Multicurrency Tranche Revolving Credit Exposure Percentage were equal. Moreover, the parties acknowledge that for administrative reasons it may not always be practicable to have Borrowings and prepayments
contemplated hereby occur simultaneously and agree that the Borrowers shall be deemed in compliance with this Section to the extent that they make such Borrowings and prepayments (and give related required notices) in a manner and time-frame
reasonably acceptable to the Administrative Agent and consistent with the stated objective of this Section. Exchange rate computations made for purposes of implementing this Section 2.04 shall be made on such days and at such times as may be
reasonably specified by the Administrative Agent to facilitate the objectives of this Section. 
 SECTION 2.05. [Intentionally
Omitted] 
 SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and conditions set forth
herein, the Borrower Representative may request the issuance of Letters of Credit for the joint and several account of the Borrowers, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time
during the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by any Borrower to, or entered
into by any Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. Upon the effectiveness of this Agreement, the Existing Letter of Credit shall, without any further action by any
party, be deemed to have been issued as a Letter of Credit hereunder on the date of such effectiveness and shall for all purposes hereof be treated as a Letter of Credit under this Agreement. As more specifically set forth in Section 2.06(d)
below, only Lenders with a Multicurrency Tranche Commitment shall be obligated to acquire participations in Letters of Credit. 

(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the Borrower Representative shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the
Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such
Letter of Credit, the name and address of the beneficiary 
  

 27 

 
thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the Borrower Representative also shall submit
a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended by the Issuing Bank only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit each Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed the Dollar
Equivalent of $15,000,000, (ii) the sum of the total Multicurrency Tranche Revolving Credit Exposures shall not exceed the total Multicurrency Tranche Commitments, (iii) the Dollar Equivalent of the aggregate amount of all Loans and
Letters of Credit denominated in a Foreign Currency shall not exceed $75,000,000 and (iv) the sum of the total Revolving Credit Exposures shall not exceed the total Commitments. 

(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the date one year or less after
the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year or less after such renewal or extension); provided that any Letter of Credit will include, if requested, customary
“evergreen” provisions; provided further that (i) the Issuing Bank shall be under no obligation to renew or extend any Letter of Credit after the Maturity Date and (ii) with respect to of any Letter of Credit expiring
after the Maturity Date, the Borrowers shall cash collateralize such Letter of Credit on or before the date five (5) Business Days prior to the Maturity Date in the manner and to the extent described in Section 2.06(j). 

(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof)
and without any further action on the part of the Issuing Bank or the Multicurrency Tranche Lenders, the Issuing Bank hereby grants to each Multicurrency Tranche Lender, and each Multicurrency Tranche Lender hereby acquires from the Issuing Bank, a
participation in such Letter of Credit equal to such Multicurrency Tranche Lender’s Multicurrency Tranche Revolving Credit Exposure Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Multicurrency Tranche Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Multicurrency Tranche Lender’s Multicurrency Tranche
Revolving Credit Exposure Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to
the Borrowers for any reason. Each Multicurrency Tranche Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever. 
 (e) Reimbursement. If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 3:00 p.m., Local time, on the date that such LC
Disbursement is made, if the Borrower Representative shall 
  

 28 

 
have received notice of such LC Disbursement prior to 10:00 a.m., Local time, on such date, or, if such notice has not been received by the Borrower Representative prior to such time on such
date, then not later than 3:00 p.m., Local time, on (i) the Business Day that the Borrower Representative receives such notice, if such notice is received prior to 10:00 a.m., Local time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower Representative receives such notice, if such notice is not received prior to such time on the day of receipt; provided that the Borrowers may, subject to the conditions to borrowing set forth
herein, request in accordance with Section 2.03 that such payment be financed with an ABR Revolving Borrowing in an equivalent amount and, to the extent so financed, the Borrowers’ obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Borrowing. If the Borrowers fail to make such payment when due, such amount shall bear interest at the Alternate Base Rate and the Administrative Agent shall notify each Multicurrency Tranche Lender of the
applicable LC Disbursement, the payment then due from the Borrowers in respect thereof and such Multicurrency Tranche Lender’s Multicurrency Tranche Revolving Credit Exposure Percentage thereof. Promptly following receipt of such notice, each
Multicurrency Tranche Lender shall pay to the Administrative Agent its Multicurrency Tranche Revolving Credit Exposure Percentage of the payment then due from the Borrowers, in the same manner as provided in Section 2.07 with respect to
Multicurrency Tranche Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Multicurrency Tranche Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the
amounts so received by it from the Multicurrency Tranche Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrowers pursuant to this paragraph, the Administrative Agent shall distribute such payment to the
Issuing Bank or, to the extent that Multicurrency Tranche Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Multicurrency Tranche Lenders and the Issuing Bank as their interests may appear. Any payment
made by a Multicurrency Tranche Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans as contemplated above) shall not constitute a Loan and shall not relieve the
Borrowers of their obligation to reimburse such LC Disbursement. 
 (f) Obligations Absolute. The Borrowers’
obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrowers’ obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason
of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or 
  

 29 

 
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 Borrowers to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by the Borrowers that are caused by the Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the 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 which 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. 

(g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower Representative by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has
made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrowers of their obligation to reimburse the Issuing Bank and the Multicurrency Tranche Lenders with
respect to any such LC Disbursement. 
 (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the
date that the Borrowers reimburse such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that, if the Borrowers fail to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Multicurrency Tranche Lender pursuant to
paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment. 

(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by written agreement among the Borrowers, the
Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrowers
shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations
of the Issuing Bank under this 
  

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Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any
previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 

(j) Cash Collateralization. If (i) any Event of Default shall occur and be continuing and if all outstanding Loans have been
declared to be due and payable pursuant to Article VII, then, on the Business Day that the Borrowers receive notice from the Administrative Agent or the Required Multicurrency Tranche Lenders demanding the deposit of cash collateral pursuant to this
paragraph, the Borrowers shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Multicurrency Tranche 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 other notice of any kind, upon
the occurrence of any Event of Default with respect to the Borrowers described in clause (h) or (i) of Article VII or (ii) any Letter of Credit shall have an expiration date after the Maturity Date, on the date five Business Days
prior to the Maturity Date the Borrowers shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Multicurrency Tranche Lenders, (A) in the case of Letters of Credit
denominated in Dollars, an amount in cash in Dollars equal to 105% of the face amount of such Letters of Credit and (B) in the case of Letters of Credit denominated in a Foreign Currency, in cash in Dollars equal to 120% of the face amount of
such Letter of Credit or, at the request of the Issuing Bank, in cash in the relevant Foreign Currency equal to 105% of the face amount of such Letter of Credit. Any such deposit shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrowers under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on
the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrowers under this Agreement. If the
Borrowers are required to provide an amount of cash collateral hereunder (i) as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrowers within three Business
Days after all Events of Default have been cured or waived and (ii) as a result of the expiration of a Letter of Credit extending past the Maturity Date, such amount (to the extent not applied as aforesaid) shall be returned to the Borrowers
within three Business Days after the surrender or expiration of such Letter of Credit. 
 SECTION 2.07. Funding of
Borrowings. (a) Each Dollar Tranche Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of 

 

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immediately available funds by 12:00 noon, Local Time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Dollar Tranche Lenders. The
Administrative Agent will make such Loans available to the Borrowers by promptly crediting the amounts so received, in like funds, to the account specified pursuant to Section 2.03, which shall be an account of a Borrower maintained with the
Administrative Agent in New York City and designated by the Borrower Representative in the applicable Borrowing Request. 
 (b)
Each Multicurrency Tranche Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, Local Time, to the account or accounts of the Administrative Agent most
recently designated by it for such purpose by notice to the Multicurrency Tranche Lenders. The Administrative Agent will make such Loans available to the Borrowers by promptly crediting the amounts so received, in like funds, to the account
specified pursuant to Section 2.03, which shall be an account of a Borrower maintained with the Administrative Agent in New York City (or, in the case of Loans denominated in a Foreign Currency, in such other location as may be designated by
the Administrative Agent) and designated by the Borrowers in the applicable Borrowing Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by
the Administrative Agent to the Issuing Bank. 
 (c) Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing 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 share available on such
date in accordance with paragraph (a) or (b) of this Section and may, in reliance upon such assumption, make available to the Borrowers a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the
date such amount is made available to the Borrowers to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, (x) the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation (in the case of a Borrowing denominated in Dollars) or (y) the rate reasonably determined by the Administrative Agent to be the cost to it of funding such
amount (in the case of a Borrowing denominated in a Foreign Currency) or (ii) in the case of the Borrowers, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in such Borrowing. 
 SECTION 2.08. Interest Elections. (a) Each
Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the
Borrower Representative may elect to convert such Borrowing to a different Type, in the case of Borrowings denominated in Dollars, or to continue such Borrowing and, in the case of a Eurocurrency Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower Representative 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 the
Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 
  

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 (b) To make an election pursuant to this Section, the Borrower Representative shall notify
the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower Representative were requesting a Revolving Borrowing of the Type and denominated in the currency
resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower Representative. 
 (c) Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02: 

(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect
to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

 (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a
Business Day; 
 (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

 (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be applicable thereto
after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”; and 

(v) confirmation of the Borrowers’ compliance with Section 2.04 (including reasonably detailed computations in
support of such confirmation). 
 If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an Interest
Period, then the Borrower Representative shall be deemed to have selected an Interest Period of one month’s duration. 

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each applicable Lender of the
details thereof and of such Lender’s portion of each resulting Borrowing. 
 (e) If the Borrower Representative fails to
deliver a timely Interest Election Request with respect to a Eurocurrency Revolving Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be converted to an ABR Borrowing (unless such Borrowing is denominated in a Foreign Currency, in which case such Borrowing shall be continued as a Eurocurrency Borrowing with an Interest Period of one month’s duration

  

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commencing on the last day of such Interest Period). Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Borrower Representative then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurocurrency Borrowing, (ii) unless
repaid, each Eurocurrency Revolving Borrowing denominated in Dollars shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto, and (iii) unless repaid, each Eurocurrency Revolving Borrowing denominated in a
Foreign Currency shall be continued as a Eurocurrency Revolving Borrowing with an Interest Period of one month’s duration. 

SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate on
the Maturity Date. 
 (b) The Borrowers may at any time terminate, or from time to time reduce, the Dollar Tranche Commitments;
provided that (i) each reduction of the Dollar Tranche Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrowers shall not terminate or reduce the Dollar Tranche
Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, the sum of (A) the Dollar Tranche Revolving Credit Exposures would exceed the total Dollar Tranche Commitments or (B) the
Revolving Credit Exposures would exceed the total Commitments. 
 (c) The Borrowers may at any time terminate, or from time to
time reduce, the Multicurrency Tranche Commitments; provided that (i) each reduction of the Multicurrency Tranche Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the
Borrowers shall not terminate or reduce the Multicurrency Tranche Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, the sum of (A) the Multicurrency Tranche Revolving Credit
Exposures would exceed the total Multicurrency Tranche Commitments or (B) the Revolving Credit Exposures would exceed the total Commitments. 

(d) The Borrower Representative shall notify the Administrative Agent of any election to terminate or reduce the Commitments under
paragraph (b) or (c) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the applicable Lenders of the contents thereof. Each notice delivered by the Borrower Representative pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments
delivered by the Borrower Representative may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower Representative (by notice to the Administrative Agent on
or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of (i) the Dollar Tranche Commitments shall be made ratably among the Dollar
Tranche Lenders and (ii) the Multicurrency Tranche Commitments shall be made ratably among the Multicurrency Tranche Lenders, in each case accordance with their respective Commitments. Notwithstanding anything to the contrary in
Section 2.09(b), (c) or (d), the Borrowers shall not be permitted to (i) voluntarily reduce or terminate the Dollar Tranche Commitments unless they contemporaneously 

 

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reduce by a like percentage or terminate, as applicable, the Multicurrency Tranche Commitments or (ii) voluntarily reduce or terminate the Multicurrency Tranche Commitments unless they
contemporaneously reduce by a like percentage or terminate, as applicable, the Dollar Tranche Commitments. 
 SECTION 2.10.
Repayment of Loans; Evidence of Debt. (a) The Borrowers hereby jointly and severally unconditionally promise to pay to the Administrative Agent for the account of each Dollar Tranche Lender the then unpaid principal amount of each Dollar
Tranche Loan on the Maturity Date. 
 (b) The Borrowers hereby jointly and severally unconditionally promise to pay to the
Administrative Agent for the account of each Multicurrency Tranche Lender the then unpaid principal amount of each Multicurrency Tranche Loan on the Maturity Date. 

(c) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrowers
to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

(d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type
thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
 (e) The entries made in
the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the terms of this Agreement. 

(f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrowers shall prepare, execute
and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory
note is a registered note, to such payee and its registered assigns). 
 (g) If at any time (i) the aggregate Dollar
Tranche Revolving Credit Exposure of the Dollar Tranche Lenders exceeds the aggregate Dollar Tranche Commitments of the Dollar Tranche Lenders, the Borrowers shall immediately prepay the Dollar Tranche Loans in the amount of such excess and
(ii) the aggregate Multicurrency Tranche Revolving Credit Exposure of the Multicurrency Tranche Lenders exceeds the aggregate Multicurrency Tranche Commitments of the Lenders (other than as a result of currency fluctuations), the Borrowers

  

 35 

 
shall immediately prepay the Multicurrency Tranche Loans in the amount of such excess. To the extent that, after the prepayment of all Multicurrency Tranche Loans an excess of the Multicurrency
Credit Exposure over the aggregate Multicurrency Tranche Commitments still exists, the Borrowers shall promptly cash collateralize the Letters of Credit in the manner described in Section 2.06(j) in an amount sufficient to eliminate such
excess. 
 (h) The Administrative Agent will determine the Dollar Equivalent of the aggregate LC Exposure and the Dollar
Equivalent of each Multicurrency Tranche Loan on each Exchange Rate Date. If at any time the sum of such amounts exceeds 105% of the aggregate Multicurrency Tranche Commitments of the Lenders, the Borrowers shall immediately prepay the Multicurrency
Tranche Loans in an amount sufficient to reduce the sum of such amounts to no greater than the amount of the aggregate Multicurrency Tranche Commitments of the Lenders. To the extent that, after the prepayment of all Multicurrency Tranche Loans an
excess of the sum of such amounts over the aggregate Multicurrency Tranche Commitments still exists, the Borrowers shall promptly cash collateralize the Letters of Credit in the manner described in Section 2.06(j) in an amount sufficient to
eliminate such excess. 
 SECTION 2.11. Prepayment of Loans. (a) The Borrowers shall have the right at any time and
from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section. 

(b) The Borrower Representative shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder
(i) in the case of prepayment of a Eurocurrency Revolving Borrowing, not later than 11:00 a.m., Local time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Revolving Borrowing, not later than
11:00 a.m., Local time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if
a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.09(d), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance
with Section 2.09(d). Promptly following receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the applicable Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing
shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13. 
 SECTION
2.12. Fees. (a) Subject to Section 2.22(a), the Borrowers agree to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the daily amount of the difference
between the Commitment of such Lender and the Revolving Credit Exposure of such Lender during the period from and including the date hereof to but excluding the date on which such Commitment terminates. Accrued commitment fees shall be payable in
arrears on the third Business Day after the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof. All commitment fees shall
be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  

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 (b) Subject to Section 2.22(c), the Borrowers agree to pay (i) to the
Administrative Agent for the account of each Multicurrency Tranche Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to
Eurocurrency Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the
later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate or rates per annum separately
agreed upon between the Borrowers and the Issuing Bank on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as the Issuing Bank’s customary and standard fees with respect to the issuance, amendment, renewal or extension
of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following
such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days
and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
 (c) The
Borrowers agree to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrowers and the Administrative Agent. 

(d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the
Issuing Bank, in the case of fees payable to it) for distribution, in the case of facility fees and participation fees, to the Lenders. Fees paid shall not be refundable under any circumstances. 

SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the
Applicable Rate. 
 (b) The Loans comprising each Eurocurrency Borrowing shall bear interest at the Adjusted Eurocurrency Rate
for the Interest Period in effect for such Borrowing plus the Applicable Rate. 
 (c) Notwithstanding the foregoing, if any
principal of or interest on any Loan or any fee or other amount payable by any of the Borrowers hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear

  

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interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in
the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section. 

(d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan, upon the final maturity
thereof and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than
a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any
Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

(e) All interest hereunder shall be computed on the basis of a year of 360 days, except that (i) interest on Borrowings denominated
in Sterling shall be computed on the basis of a year of 365 days, (ii) interest on Borrowings denominated in any other Foreign Currency for which it is required by applicable law or customary to compute interest on the basis of a year of 365
days or, if required by applicable law or customary, 366 days in a leap year, shall be computed on such basis, and (iii) interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate
shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted Eurocurrency Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. 

SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurocurrency Borrowing
denominated in any currency: 
 (a) the Administrative Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted Eurocurrency Rate for such Interest Period; or 

(b) the Administrative Agent is advised by the Required Lenders (with respect to Loans denominated in Dollars) or the
Required Multicurrency Tranche Lenders (with respect to Loans denominated in any Foreign Currency) that the Adjusted Eurocurrency Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period, which notice is accompanied by a written rationale for the determination of the Required Lenders, which will be shared with the Borrowers; 

then the Administrative Agent shall give notice thereof to the Borrowers and the Lenders by telephone or telecopy as promptly as practicable thereafter
and, until the Administrative Agent notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurocurrency Borrowing 
  

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denominated in such currency shall be ineffective, (ii) such Borrowing shall be converted to or continued as on the last day of the Interest Period applicable thereto (A) if such
Borrowing is denominated in Dollars, an ABR Borrowing or (B) if such Borrowing is denominated in a Foreign Currency, as a Borrowing in respect of which the rate to apply to each Lender’s participation is an interest rate to include
(1) the Applicable Rate for Eurocurrency Loans, (2) the rate notified to the Administrative Agent by such Lender as soon as practicable and in any event before interest is due to be paid in respect of the applicable Interest Period, to be
that which expresses as a percentage rate per annum the cost to such Lender of funding its participation in the applicable Borrowing from whatever source it may reasonably select; and (3) the Mandatory Costs Rate, if any, applicable to such
Lender’s participation in the applicable Borrowing, and (iii) if any Borrowing Request requests a Eurocurrency Borrowing in such currency, such Borrowing shall be made as an ABR Borrowing (if such Borrowing is requested to be made in
Dollars) or shall be made as a Borrowing bearing interest at the rate described under (ii)(B) above. 
 SECTION 2.15.
Increased Costs. (a) If any Change in Law shall: 
 (i) impose, modify or deem applicable any
reserve, special deposit or similar requirement 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 Eurocurrency Rate or compensated for by the
Mandatory Cost Rate) or the Issuing Bank; or 
 (ii) impose on any Lender or the Issuing Bank or the London
interbank market any other condition affecting this Agreement or Eurocurrency Loans made by such Lender or any Letter of Credit or participation therein; 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurocurrency Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Issuing
Bank hereunder (whether of principal, interest or otherwise), then the Borrowers will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank, as the case may
be, for such additional costs incurred or reduction suffered. 
 (b) If any Lender or the Issuing Bank determines that 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 holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such
Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing
Bank’s holding company with respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank
or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered. 
  

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 (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 its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower Representative and shall be conclusive absent
manifest error. The Borrowers shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 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 shall not constitute a
waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower Representative of the Change in Law giving rise to such increased costs or reductions and of such Lender’s
or the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof. 
 SECTION 2.16. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or pursuant to Section 2.04), (b) the conversion of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice
may be revoked under Section 2.11(b) and is revoked in accordance therewith) or (d) the assignment of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a result of a request by a Borrower
pursuant to Section 2.19, then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be
deemed to be an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted Eurocurrency Rate that would
have been applicable to such 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 Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the date of such event, for Dollar deposits in the
applicable currency of a comparable amount and period from other banks in the eurocurrency market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to
the Borrower Representative and shall be conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 

SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of any of the Borrowers hereunder shall be
made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if any of the Borrowers shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the

  

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sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent,
Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law. 
 (b) In addition, the Borrowers shall pay
any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c) The Borrowers shall indemnify
the Administrative Agent, each Lender and the Issuing Bank, within 10 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 any Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) 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 Representative 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 Borrowers to a Governmental Authority, the
Borrower Representative 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 any Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall, upon the request of the Borrower
Representative, deliver to the Borrower Representative (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 Representative as will permit such payments to be made without withholding or at a reduced rate. 

(f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes
as to which it has been indemnified by the Borrowers or with respect to which one of the Borrowers has paid additional amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrowers (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrowers under this Section 2.17 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrowers, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the
Borrowers (plus any penalties, interest or other charges imposed by 
  

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the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to any of the Borrowers or any other
Person. 
 SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) Each of the Borrowers
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 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon, Local time, on
the date when due, in immediately available funds, without set off 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 its offices at 10 South Dearborn, Floor 19, Chicago, Illinois 60603 (or, for payments denominated in a Foreign Currency, to J.P. Morgan
Europe Limited, 125 London Wall, London EC2Y 5AJ), except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 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 payable for the period of such extension. All payments hereunder of
(i) principal or interest in respect of any Loan shall be made in the currency in which such Loan is denominated, (ii) reimbursement obligations shall be made in the currency in which the Letter of Credit in respect of which such
reimbursement obligation exists is denominated or (iii) any other amount due hereunder or under another Credit Document shall be made in Dollars. Any payment required to be made by the Administrative Agent hereunder shall be deemed to have been
made by the time required if the Administrative Agent shall at or before such time have taken the necessary steps to make such payment in accordance with the regulations or operating procedures of the clearing or settlement system used by the
Administrative Agent to make such payment. 
 (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 off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender 

 

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receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders without recourse or warranty from the
other Lenders except as contemplated by Section 9.04 in respect of assignments 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 Loans and participations in LC Disbursements; 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 any of the Borrowers 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 to any assignee or participant, other
than to the Borrowers or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each of the Borrowers 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 any of the Borrowers rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation. 
 (d) Unless the Administrative Agent shall have received notice from the
Borrower Representative 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 Borrowers will not make such payment, the Administrative Agent may assume that
the Borrowers have 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 due. In such event, if the Borrowers have 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 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, (i) at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation (in the case of an amount denominated in Dollars) and (ii) the rate reasonably determined by the Administrative Agent to be the cost to it of funding such amount (in the case of
an amount denominated in a Foreign Currency). 
 (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.06(d) or (e), 2.07(c), 2.18(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter received by the Administrative Agent
for the account of such Lender and for the benefit of the Administrative Agent or the Issuing Bank to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid, and/or (ii) hold any such
amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under such Sections; in the case of each of (i) and (ii) above, in any order as determined by the Administrative
Agent in its discretion. 
 SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests
compensation under Section 2.15, or if any of the Borrowers is required to pay 
  

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any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, 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 judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, 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 Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 

(b) If any Lender requests compensation under Section 2.15, or if any of the Borrowers is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the Borrowers may, at their 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 contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee
that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower Representative shall have received the prior written consent of the Administrative Agent (and
if a Commitment is being assigned, the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC
Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, 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 Borrowers to require such assignment and delegation cease to
apply. 
 SECTION 2.20. Joint and Several Liability of Borrowers. 

(a) Each of the Borrowers shall be jointly and severally liable hereunder and under each of the other Credit Documents with respect to all
Loans and all other Obligations, regardless of which of the Borrowers actually receives the proceeds of the Loans or the benefit of any other extensions of credit hereunder, or the manner in which the Borrowers, the Administrative Agent, the Lenders
or the Issuing Bank accounts therefore in their respective books and records. In furtherance and not in limitation of the foregoing, (i) each Borrower’s obligations and liabilities with respect to proceeds of Loans which it receives or
Letters of Credit issued for its account, and related fees, costs and expenses, and (ii) each Borrower’s obligations and liabilities arising as a result of the joint and several liability of Borrowers hereunder with respect to proceeds of
Loans received by, or Letters of Credit issued for the account of, any of the other Borrowers, together with the related fees, costs and expenses, shall be separate and distinct obligations, both of which are primary obligations of such Borrower.
The joint and several liability of each of the Borrowers shall not be impaired or released by (A) the failure of the Administrative Agent, any Lender or the Issuing Bank, any successors or assigns thereof, or

  

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any holder of any of the Obligations to assert any claim or demand or to exercise or enforce any right, power or remedy against any Borrower, any Subsidiary, any other Person or otherwise;
(B) any extension or renewal for any period (whether or not longer than the original period) or exchange of any of the Obligations or the release or compromise of any obligation of any nature of any Person with respect thereto; (C) the
surrender, release or exchange of all or any part of any property securing payment, performance and/or observance of any of the Obligations or the compromise or extension or renewal for any period (whether or not longer than the original period) of
any obligations of any nature of any Person with respect to any such property; (D) any action or inaction on the part of the Administrative Agent, any Lender or the Issuing Bank, or any other event or condition with respect to any other
Borrower, including any such action or inaction or other event or condition, which might otherwise constitute a defense available to, or a discharge of, such Borrower, or a guarantor or surety of or for any or all of the Obligations; and
(E) any other act, matter or thing (other than indefeasible payment in full or performance of the Obligations) which would or might, in the absence of this provision, operate to release, discharge or otherwise prejudicially affect the
obligations of such Borrower or any other Borrower. 
 (b) Notwithstanding any provision to the contrary contained herein or in
any other of the Credit Documents, to the extent the joint obligations of a Borrower shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of Section 548 of Chapter 11 of the Bankruptcy Code
or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law) then the Obligations of each Borrower hereunder shall be limited to the maximum amount that is permissible under
applicable law (whether federal or state and including, without limitation, the federal Bankruptcy Code). 
 (c) To the extent
that any Borrower shall make a payment under this Section 2.20 of all or any of the Obligations (other than Loans the proceeds of which were received by such Borrower) (a “Surety Payment”) that, taking into account all other
Surety Payments then previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by such Surety Payment in the same proportion
that such Borrower’s “Allocable Amount” (as defined below) (as determined immediately prior to such Surety Payment) bore to the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such
Surety Payment, then, following indefeasible payment in full in cash of the Obligations and termination of the Commitments, such Borrower shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other
Borrower for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Surety Payment. As of any date of determination, the “Allocable Amount” of any Borrower shall be
equal to the maximum amount of the claim that could then be recovered from such Borrower under this Section 2.20 without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any
applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law. This Section 2.20(c) is intended only to define the relative rights of Borrowers and nothing set forth in this
Section 2.20(c) is intended to or shall impair the obligations of Borrowers, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Agreement, including
Section 2.20(a). Nothing contained in this Section 2.20(c) shall limit the liability of any Borrower to pay the Loans made directly or 

 

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indirectly to that Borrower and accrued interest, fees and expenses with respect thereto for which such Borrower shall be primarily liable. The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of the Borrower to which such contribution and indemnification is owing. The rights of the indemnifying Borrowers against other Borrowers under this Section 2.20(c) shall be
exercisable only upon the full and indefeasible payment of the Obligations and the termination of the Commitments. 
 (d) The
liability of Borrowers under this Section 2.20 is in addition to and shall be cumulative with all liabilities of each Borrower to the Administrative Agent and Lenders under this Agreement and the other Credit Documents to which such Borrower is
a party, without any limitation as to amount. 
 SECTION 2.21. Additional Reserve Costs. (a) For so long as any
Lender is required to comply with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the
European Central Bank, in each case in respect of such Lender’s Eurocurrency Loans, such Lender shall be entitled to require the Borrowers to pay, contemporaneously with each payment of interest on each of such Loans, additional interest on
such Loan at a rate per annum equal to the Mandatory Costs Rate calculated in accordance with the formula and in the manner set forth in Exhibit B hereto. 

(b) Any additional interest owed pursuant to paragraph (a) or (b) above shall be determined by the applicable Lender, which
determination shall be conclusive absent manifest error, and notified to the Borrower Representative (with a copy to the Administrative Agent) at least five Business Days before each date on which interest is payable for the applicable Loan, and
such additional interest so notified to the Borrower Representative by such Lender shall be payable to the Administrative Agent for the account of such Lender on each date on which interest is payable for such Loan. 

SECTION 2.22. Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender: 
 (a) fees
shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.12; 
 (b)
the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders, the Required Lenders or the Required Multicurrency Tranche Lenders have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 9.02), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender
differently than other affected Lenders shall require the consent of such Defaulting Lender; 
  

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 (c) if any LC Exposure exists at the time a Lender becomes a Defaulting Lender then:

 (i) all or any part of such LC Exposure shall be reallocated among the non-Defaulting Lenders in accordance
with their respective Multicurrency Tranche Revolving Credit Exposure Percentages but only to the extent (x) the sum of all non-Defaulting Lenders’ Multicurrency Tranche Revolving Credit Exposures plus such Defaulting Lender’s LC
Exposure does not exceed the total of all non-Defaulting Lenders’ Multicurrency Tranche Commitments and (y) the conditions set forth in Section 4.02 are satisfied at such time; and 

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrowers
shall within one Business Day following notice by the Administrative Agent cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the
procedures set forth in Section 2.06(j) for so long as such LC Exposure is outstanding; 
 (iii) if the
Borrowers cash collateralize any portion of such Defaulting Lender’s LC Exposure pursuant to Section 2.22(c), the Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to
such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized; 

(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to Section 2.22(c), then the fees
payable to the Lenders pursuant to Section 2.12 shall be adjusted in accordance with such non-Defaulting Lenders’ Multicurrency Tranche Revolving Credit Exposure Percentages; or 

(v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to
Section 2.22(c), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all facility fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such
Defaulting Lender’s Multicurrency Tranche Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing
Bank until such LC Exposure is cash collateralized and/or reallocated; and 
 (d) so long as any Lender is a Defaulting Lender,
the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Multicurrency Tranche Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by the Borrowers in accordance with Section 2.22(c), and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with
Section 2.22(c)(i) (and Defaulting Lenders shall not participate therein). 
 (e) In the event that the Administrative
Agent, the Borrowers and the Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to reflect the inclusion of
such Lender’s Multicurrency Tranche Commitment and on such date such 
  

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Lender shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its
Multicurrency Tranche Revolving Credit Exposure Percentage and/or its Dollar Tranche Revolving Credit Exposure Percentage, as applicable. 

ARTICLE III 

Representations and Warranties 

Each of the Borrowers represents and warrants to the Administrative Agent and the Lenders that: 

SECTION 3.01. Organization; Powers. Each of the Parent and its Subsidiaries is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 

SECTION 3.02. Authorization; Enforceability. The Transactions are within the Borrowers’ corporate powers and have been duly
authorized by all necessary corporate and, if required, stockholder action. This Agreement has been duly executed and delivered by the Borrowers and constitutes a legal, valid and binding obligation of the Borrowers, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or
at law. 
 SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or
approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter,
by-laws, memorandum or articles of association or other organizational documents of the Parent or any of its Subsidiaries or any order of any Governmental Authority applicable to the Parent or any of its Subsidiaries, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding upon the Parent or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Parent or any of its Subsidiaries,
and (d) will not result in the creation or imposition of any Lien on any asset of the Parent or any of its Subsidiaries except Liens created under the Credit Documents. 

SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Borrowers have heretofore furnished to the Lenders the
consolidated balance sheet and statements of income, stockholders equity and cash flows (including consolidating statements and schedules) of the Parent as of and for the fiscal years ended December 31, 2008 and December 31, 2009, reported
on without qualification by Ernst & Young LLP, independent public accountants. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its
consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP. 
  

 48 

 (b) Since December 31, 2009, there has been no material adverse change in the business,
assets, operations, prospects or condition, financial or otherwise, of the Parent and its Subsidiaries, taken as a whole or of Argo US and its subsidiaries, taken as a whole. 

SECTION 3.05. Properties. (a) The Parent and its Subsidiaries have good title to, or valid leasehold interests in, all their
real and personal property material to their business, taken as a whole, except for minor defects in title that do not interfere with their ability to conduct their business as currently conducted or to utilize such properties for their intended
purposes. 
 (b) Each of the Parent and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights,
patents and other intellectual property material to its business, and the use thereof by the Parent and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. 
 SECTION 3.06. Litigation and Environmental
Matters. (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrowers, threatened against or affecting the Parent or any of its Subsidiaries
(i) that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve this Agreement or the Transactions. 

(b) Except with respect to any matters that, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect, neither the Parent 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, (ii) has
become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 

SECTION 3.07. Compliance with Laws and Agreements. Each of the Parent and its Subsidiaries is in compliance with: (i) the
charter, by-laws, memorandum or articles of association or other organizational documents applicable to it, (ii) all laws, regulations and orders of any Governmental Authority applicable to it or its property and (iii) all indentures,
mortgages, leases, contracts, agreements and other instruments binding upon its or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default
has occurred and is continuing. Neither the Parent nor any Subsidiary is a party to any agreement or instrument or subject to any charter or other corporate restriction which could reasonably be expected to have a Material Adverse Effect.

 SECTION 3.08. Investment Company Status. Neither the Parent nor any of its Subsidiaries is an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940. 
 SECTION 3.09. Taxes.
Each of the Parent and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being

  

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contested in good faith by appropriate proceedings and for which the Parent or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the
failure to do so could not reasonably be expected to result in a Material Adverse Effect. 
 SECTION 3.10. 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. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting
such amounts, exceed by more than $10,000,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $10,000,000 the fair market value of the assets of all such underfunded Plans. 

SECTION 3.11. Insurance Licenses. As of the Effective Date, (i) Schedule 3.11 attached hereto lists all of the jurisdictions
in which any Significant Insurance Subsidiary holds active Licenses and is authorized to transact insurance business, (ii) no such License is the subject of a proceeding for suspension or revocation, there is no sustainable basis for such
suspension or revocation, and to any Borrower’s knowledge, no such suspension or revocation has been threatened by any Governmental Authority, except as could not reasonably be expected to result in a Material Adverse Effect,
(iii) Schedule 3.11 also indicates the type or types of insurance in which each such Insurance Subsidiary is permitted to engage with respect to each License therein listed, and (iv) none of the Significant Insurance Subsidiaries transacts
any insurance business, directly or indirectly, in any state other than those enumerated in Schedule 3.11. 
 SECTION 3.12.
Subsidiaries. As of the Effective Date, the Parent has no Subsidiaries other than those Subsidiaries listed on Schedule 3.12. Schedule 3.12 correctly sets forth, as of the Effective Date, (i) the percentage ownership (direct or indirect)
of the Parent in each class of capital stock or other equity of its Subsidiaries and also identifies the direct owner thereof, (ii) the jurisdiction of organization of each such Subsidiary and (iii) with respect to each such Subsidiary,
whether such Subsidiary is a Significant Insurance Subsidiary. 
 SECTION 3.13. Material Agreements. Neither the Parent
nor any Subsidiary is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement to which it is a party, which default could reasonably be expected to have a Material
Adverse Effect. 
 SECTION 3.14. Environmental Matters. In the ordinary course of its business, the officers of the
Borrowers consider the effect of Environmental Laws on the business of the Parent and its Subsidiaries, in the course of which they identify and evaluate potential risks and liabilities accruing to the Borrowers due to Environmental Laws. On the
basis of this consideration, the Borrowers have concluded that, other than laws affecting the insurance industry generally, Environmental Laws cannot reasonably be expected to have a Material Adverse Effect. Neither the Parent nor any Subsidiary has
received any notice to the effect that 
  

 50 

 
its operations are not in material compliance with any of the requirements of applicable Environmental Laws or are the subject of any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, which non compliance or remedial action could reasonably be expected to have a Material Adverse Effect. 

SECTION 3.15. Disclosure. Each of the Borrowers has disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports, financial
statements, certificates or other information furnished by or on behalf of the Borrowers to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder taken as a whole (as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information, the Borrowers represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time (it being understood that projected
financial information is as to future events and is not to be viewed as fact and that actual results during the period or periods covered by any such information may differ significantly from the projected results and such differences may be
material). 
 SECTION 3.16. Solvency. Each of the Borrowers is Solvent. 

SECTION 3.17. Foreign Pension Plan. Except as, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect, (i) each Foreign Pension Plan has been maintained in compliance with its terms and in compliance with the requirements of any and all applicable laws, statutes, rules, regulations and orders (including all funding
requirements and the respective requirements of the governing documents for each such Foreign Pension Plan) and has been maintained, where required, in good standing with applicable regulatory authorities, (ii) all contributions required to be
made with respect to a Foreign Pension Plan have been timely made, (iii) no actions or proceedings have been taken or instituted to terminate or wind-up a Foreign Pension Plan, and (iv) neither any Borrower nor any Subsidiary has incurred
any obligation in connection with the termination of or withdrawal from any Foreign Pension Plan. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Pension Plan, determined as of the end of the
Parent’s most recently ended fiscal year on the basis of actuarial assumptions, each of which is reasonable, did not exceed by more than $10,000,000 the current value of the assets of such Foreign Pension Plan allocable to such benefit
liabilities. 
  

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 ARTICLE IV 

Conditions 

SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and participate in Letters of Credit and of the Issuing
Bank to issue Letters 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 9.02): 

(a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement
signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 (b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of (i) Dewey & LeBoeuf LLP, US counsel for the Borrowers, (ii) Conyers Dill & Pearman, Bermuda counsel for the Borrowers, (iii) Dewey & LeBoeuf, UK counsel for the
Borrowers and (iv) in house counsel to Argo US, in form and substance reasonably satisfactory to the Administrative Agent and covering such other matters relating to the Borrowers, this Agreement or the Transactions as the Administrative Agent
shall reasonably request. The Borrowers hereby request such counsel to deliver such opinion. 
 (c) The Administrative Agent
shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Borrowers, the authorization of the Transactions and any other
legal matters relating to the Borrowers, this Agreement or the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel. 

(d) The Administrative Agent shall have received a certificate relating to the solvency of each of the Borrowers in form and substance
reasonably satisfactory to the Administrative Agent. 
 (e) The Administrative Agent shall have received a certificate, dated
the Effective Date and signed by the President, a Vice President or a Financial Officer of the Parent, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02, stating (i) the Argo US Rating
and (ii) the Subsidiary Rating of each Insurance Subsidiary of Argo US. 
 (f) All obligations of the Borrowers under their
Credit Agreement dated February 27, 2009 with JPMCB as administrative agent and the lenders party thereto, shall have been or shall substantially contemporaneously be repaid in full and such agreement shall be terminated. 

(g) The Administrative Agent shall have received projections for the Parent and its Subsidiaries for the fiscal years ending
December 31, 2010, December 31, 2011, December 31, 2012 and December 31, 2013 satisfactory to it in its sole discretion. 

(h) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including,
to the extent invoiced, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid by the Borrowers hereunder. 
  

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 The Administrative Agent shall notify the Borrower Representative and the Lenders of the Effective Date, and
such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions
is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., Chicago time, on April 30, 2010 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time). 

SECTION 4.02. 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, is subject to the satisfaction of the following conditions: 

(a) The representations and warranties of the Borrowers set forth in this Agreement shall be true and correct in all
material respects (except that any representation or warranty which is already qualified as to materiality or by reference to Material Adverse Effect shall be true and correct in all respects) on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and
correct in all material respects (except that any representation or warranty which is already qualified as to materiality or by reference to Material Adverse Effect shall be true and correct in all respects) as of such earlier date). 

(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension
of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 
 Each Borrowing and each issuance, amendment,
renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 

ARTICLE V 

Affirmative Covenants 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full and all Letters of Credit shall have expired or terminated (or, in the case of any Letter of Credit extending past the Maturity Date, been cash collateralized in accordance with Section 2.06(j)) and all LC Disbursements
shall have been reimbursed, each of the Borrowers covenants and agrees with the Lenders that: 
 SECTION 5.01. Financial
Statements; Ratings Change and Other Information. The Borrowers will furnish to the Administrative Agent for distribution to each Lender: 

(a) within 90 days after the end of each fiscal year of the Parent, audited consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows as of the end of and for such year (including unaudited consolidating balance 

 

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sheet and income statement schedules, as customarily prepared by the Parent, for each of the Parent its consolidated Subsidiaries and Argo US and its consolidated subsidiaries) for the Parent.
The consolidated financial statements will set forth in each case in comparative form the figures for the previous fiscal year as available, all reported on by Ernst & Young LLP or other independent public accountants of recognized national
standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied; 

(b) With respect to each Insurance Subsidiary domiciled in the United States, as soon as available, and in any event
(i) within 15 days after the date required to be filed, a copy of each such Insurance Subsidiary’s statutory Annual Statement for such year ended December 31, as filed with the insurance department (or other equivalent insurance
regulatory authority) of the state or other jurisdiction of domicile of such Insurance Subsidiary, and (ii) by June 15th of each year, a copy of each such Insurance Subsidiary’s audited or unaudited, as the case may be, financial
statements for such year ended December 31, as filed with the insurance department (or other equivalent insurance regulatory authority) of the state or other jurisdiction of domicile of such Insurance Subsidiary. The financial statements
referred to in this Section 5.01(b)(ii) shall fairly present in all material respects the statutory financial position of each such Insurance Subsidiary as of the dates therein specified and the statutory results of operations and cash flow of
each such Insurance Subsidiary for the periods therein specified, and shall be prepared in conformity with SAP. The financial statements referred to in sub-clause (ii) of this Section 5.01(b) shall, if required, be accompanied by an audit
report thereon of Ernst & Young LLP or such other firm of independent auditors of recognized national standing selected by the Parent that is reasonably satisfactory to the Administrative Agent to the effect that such financial statements
present fairly, in all material respects, the financial position of each such Insurance Subsidiary as of the end of the fiscal year being reported on in conformity with SAP and that the examination of such auditors in connection with such financial
statements has been conducted in accordance with generally accepted auditing standards and included such tests of the accounting records and such other auditing procedures as said auditors deemed necessary in the circumstances. 

(c) within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent, unaudited
consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year (including unaudited consolidating balance sheet
and income statement schedules, as customarily prepared by the Parent, for each of the Parent its consolidated Subsidiaries and Argo US and its consolidated subsidiaries) for the Parent. The consolidated financial statements will set forth in each
case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year as available, all certified by a Financial Officer of the Parent or Argo US, as
applicable, as presenting fairly in all material respects the financial condition and results of operations 
  

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of the Parent and its consolidated Subsidiaries on a consolidated basis and Argo US and its consolidated subsidiaries in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes; 
 (d) concurrently with any delivery of financial statements
under clause (a) or (c) above, a certificate of a Financial Officer of the Parent or Lynn Geurin, James Tees, Jay Bullock, or another person approved by the Administrative Agent as a Financial Officer of Argo US (i) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with
Sections 6.09, 6.10 and 6.11 (and, in the case of deliveries under clause (a) above, Section 6.12), (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements
referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate and (iv) solely with respect to certificates delivered with
Section 5.01(a) deliveries, an updated version of Schedule 3.11 providing current lists of the information required thereby; 

(e) promptly after the same become publicly available, copies of all 10K, 10Q and 8K reports (or successor forms thereof)
and other material reports, proxy statements and other materials filed by any Borrower or a Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with
any national securities exchange, as the case may be, in any event other than routine reports which are required to be provided to any of the above-listed entities concerning the management of employee benefit plans, including, without limitation,
stock purchases or the exercise of stock options made under any such employee benefit plan; 
 (f) promptly after
S&P or any other nationally recognized rating agency shall have announced a change in Rating, written notice of such rating change; 

(g) promptly after A.M. Best, S&P or any other nationally recognized rating agency shall have announced a change in
its financial strength rating of an Insurance Subsidiary or any Affiliate thereof, or shall have first assigned a rating thereto, written notice of such changed or initial rating; 

(h) prompt notice of the creation of any Subsidiary or of any Person becoming a Subsidiary; 

(i) as soon as practicable and in any event not later than sixty (60) days after the beginning of each fiscal year of
the Parent, commencing with the year beginning January 1, 2011, a copy of the plan and forecast of the Parent and its Subsidiaries for such fiscal year; 

(j) Promptly upon request by the Administrative Agent, reports in form reasonably satisfactory to the Administrative Agent
detailing the portfolio of investments held by the Parent and each of its Subsidiaries as of the end of their most recently 
  

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completed fiscal quarter certified by an officer of the Parent or Lynn Geurin, James Tees, Jay Bullock, or another person approved by the Administrative Agent as a Financial Officer of Argo US;
and 
 (k) promptly following any request therefor, such other information regarding the operations, business
affairs and financial condition of the Parent or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request, including any actuarial reports prepared regarding any Insurance
Subsidiary, provided, that the delivery of any actuarial reports shall be subject to the consent of the applicable independent actuarial consulting firm (if then required). 

Information required to be delivered pursuant to the foregoing Section 5.01(a), (c) and (e) shall be deemed to have been delivered on the
date on which the Borrowers deliver copies of such information to the Administrative Agent on behalf of the Lenders or on the date on which the Borrowers provide notice (including notice by electronic transmission) to the Administrative Agent that
such information has been posted on the U. S. Securities and Exchange Commission website on the Internet at sec.gov/edgar/searches.htm or at another website identified in such notice and accessible by the Lenders without charge. 

SECTION 5.02. Notices of Material Events. The Borrowers will furnish to the Administrative Agent for distribution to each Lender
promptly after any Borrower becomes aware thereof, written notice of the following: 
 (a) the occurrence of any
Default; 
 (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or
Governmental Authority against or affecting any Borrower or any Affiliate thereof that could reasonably be expected to result in a Material Adverse Effect; 

(c) 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 Parent and its Subsidiaries in an aggregate amount exceeding $10,000,000; 

(d) the receipt by the Parent or any Subsidiary of any notice from any Governmental Authority, trustee or actuary in
relation to any non-compliance with any laws, regulations and rules applicable to any Foreign Pension Plan, including funding requirements and the respective requirements of the governing documents for such Foreign Pension Plan, which could
reasonably be expected to result in liability of the Parent and its Subsidiaries in an aggregate amount which, either alone or with any other such events which have occurred, exceeds $10,000,000; 

(e)(i) the receipt by any Borrower or any Insurance Subsidiary of any notice from any Governmental Authority of the
expiration without renewal, revocation or suspension of, or the institution of any proceedings to revoke or suspend, any License now or hereafter held by any Insurance Subsidiary which is required to conduct insurance business in compliance with all
applicable laws and regulations, other than such expiration, revocation or suspension which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (ii) the receipt of any notice

  

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from any Governmental Authority of the institution of any disciplinary proceedings against or in respect of any Insurance Subsidiary, or the issuance of any order, the taking of any action or any
request for an extraordinary audit for cause by any Governmental Authority which, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (iii) any judicial or administrative order limiting or controlling the
insurance business of any Insurance Subsidiary (and not the insurance industry generally) which has been issued or adopted and which could reasonably be expected to have a Material Adverse Effect; 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 shall be accompanied by a statement of a Financial Officer or other executive officer of the Parent
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 5.03. Existence; Conduct of Business. The Borrowers will, and will cause each Subsidiary to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of the business of the Borrowers and their Subsidiaries, taken as a whole;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03. 

SECTION 5.04. Payment of Obligations. The Borrowers will, and will cause each Subsidiary to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect 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) such 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 5.05. Maintenance of Properties; Insurance. The Borrowers will, and will cause each
Subsidiary to, (a) keep and maintain all property material to the conduct of the business of the Borrowers and their Subsidiaries taken as a whole in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations. 

SECTION 5.06. Books and Records; Inspection Rights. The Borrowers will, and will cause each Subsidiary to, keep proper books of
record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrowers will, and will cause each Subsidiary to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested. 
  

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 SECTION 5.07. Compliance with Laws. The Borrowers will, and will cause each
Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. 
 SECTION 5.08. Use of Proceeds and Letters of Credit. The proceeds of the Loans will be used
only for general corporate purposes, including working capital and acquisitions permitted hereby. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of
the Board, including Regulations T, U and X. Letters of Credit shall be used solely to support the ordinary course obligations of the Parent and its Subsidiaries. Notwithstanding anything herein to the contrary, no Letter of Credit hereunder shall
be issued to support the capital requirements at Lloyd’s of London, otherwise known as “Funds at Lloyd’s”. 

SECTION 5.09. Insurance Licenses and Permits. The Borrowers shall cause each of the Insurance Subsidiaries to hold and maintain
certificates of authority and any other required insurance licenses in each state or other jurisdiction in which such Insurance Subsidiary conducts an insurance business except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. 
 ARTICLE VI 

Negative Covenants 

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been
paid in full and all Letters of Credit have expired or terminated (or, in the case of any Letter of Credit extending past the Maturity Date, been cash collateralized in accordance with Section 2.06(j)) and all LC Disbursements shall have been
reimbursed, each of the Borrowers covenants and agrees with the Lenders that: 
 SECTION 6.01. Indebtedness. The
Borrowers will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except: 

(a) Indebtedness created hereunder; 

(b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 (and any guaranties by the Borrowers thereof)
and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof, including any Subordinated Indebtedness that may be incurred pursuant to the proviso to the last sentence of
Section 6.16; 
 (c) Indebtedness outstanding under the Trust Preferred Securities in an aggregate principal
amount not to exceed $311,334,000 at any time, together with all guaranty obligations owing in respect thereof; 
  

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 (d) Other Indebtedness not otherwise permitted under this Section 6.01,
of the same or similar character as the Trust Preferred Securities together with all guaranty obligations owing in respect thereof and constituting Subordinated Indebtedness, so long as no Default shall arise hereunder upon the incurrence of such
Indebtedness, including without limitation a Default arising under Section 6.10, and a compliance certificate, meeting the requirements of Section 5.01(d) and showing the effect of the incurrence of such Indebtedness, shall have been
delivered to the Administrative Agent at least 5 days prior to the incurrence of such Indebtedness; 
 (e)
Indebtedness of any Borrower to any other Borrower, of any Borrower to any Subsidiary and of any Subsidiary to any Borrower or any other Subsidiary; provided that any such Indebtedness of a Borrower is unsecured and, at all times more than
five Business Days after the date hereof, is subordinated to the obligations of the Borrowers hereunder upon terms satisfactory to the Administrative Agent; provided further, that this clause (e) shall not permit the Parent or any
Subsidiary (other than Argo US or any subsidiary thereof) to incur Indebtedness owing to Argo US or any subsidiary thereof upon or during the continuance of a Default; 

(f) Subordinated Indebtedness of any of the Borrowers subordinated on terms satisfactory to the Administrative Agent to
the Borrowers’ obligations arising hereunder or under any note issued pursuant hereto; provided that all such Indebtedness shall mature at least ninety one days after the Maturity Date and shall otherwise be on terms and conditions
reasonably satisfactory to the Administrative Agent; 
 (g) Indebtedness (including Permitted Purchase Money
Indebtedness) secured by Liens, in a principal amount outstanding not to exceed $25,000,000 in the aggregate at any time; 

(h)(i) deferred purchase obligations in respect of Permitted Acquisitions which are in the nature of “earn out”
payments or similar payments relating to the performance of the acquired entity or business and (ii) unsecured or Subordinated Indebtedness of any Person in existence at the time such Person (A) becomes a Subsidiary or (B) is merged
with and into a Borrower, in either case pursuant to a Permitted Acquisition; provided that such Indebtedness was not incurred in connection with or in anticipation of such Permitted Acquisition and, with respect to any such Subsidiary, such Person
executes a Guarantee of the Obligations (accompanied by related reasonably requested certificates and legal opinions), all in form and substance satisfactory to the Administrative Agent at the time of such Permitted Acquisition; 

(i) Issuance of (i) collateralized letters of credit in the ordinary course of business of reinsurance operations or
(ii) fully collateralized letters of credit which are issued to support the capital requirements applicable to the Borrowers or any Insurance Subsidiary at Lloyd’s of London; 

(j) Issuance of letters of credit in the ordinary course of business in an outstanding undrawn face amount and/or
unreimbursed drawn amount not to exceed $5,000,000 in the aggregate at any time; 
  

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 (k) Unsecured senior notes incurred by any Borrower or Subsidiary (and
related guaranties thereof); provided that (i) on the date of any such incurrence, the Borrowers shall deliver to the Administrative Agent a certificate of a Financial Officer of the Parent or Lynn Geurin, James Tees or Jay Bullock as a
Financial Officer of Argo US setting forth reasonably detailed calculations demonstrating (A) compliance with Sections 6.09, 6.10 and 6.11 both immediately before and immediately after giving pro forma effect to such incurrence, and
(B) projected compliance with Sections 6.09, 6.10 and 6.11 for the succeeding twelve month period supported by attached projections based on reasonable assumptions of future results, (ii) no amortization or other scheduled principal
payments with respect to such Indebtedness shall be due or payable prior to the date 90 days after the Maturity Date (and the holders thereof shall have no optional put or similar rights with respect to such Indebtedness exercisable prior to the
date 90 days after the Maturity Date), (iii) the Rating shall be at least BBB- both immediately before the incurrence of such Indebtedness and after giving effect thereto (and after giving effect to any adjustment of the Rating associated with
the incurrence of such Indebtedness), (iv) the final maturity of such Indebtedness shall be at least five years from the date of incurrence and (v) with respect to any Subsidiary incurring such Indebtedness (whether as issuer or guarantor
thereof), such Subsidiary executes a Guarantee of the Obligations (accompanied by related reasonably requested certificates and legal opinions), all in form and substance satisfactory to the Administrative Agent at the time such Indebtedness is
incurred; 
 (l) Indebtedness permitted pursuant to Section 6.05; and 

(m) Indebtedness not otherwise permitted under this Section 6.01 in a principal amount outstanding not to exceed
$25,000,000 in the aggregate at any time; provided that no more than $10,000,000 of such amount may be incurred by Subsidiaries other than the Borrowers. 

SECTION 6.02. Liens. The Borrowers will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any
Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 

(a) Permitted Encumbrances; 

(b) any Lien on any property or asset of the Borrowers or any Subsidiary existing on the date hereof and set forth in
Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrowers or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
 (c) any Lien
existing on any property or asset prior to the acquisition thereof by a Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in connection 
  

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with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Borrowers or any Subsidiary and
(iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be 

(d) Liens securing Indebtedness permitted pursuant to Section 6.01(g); 

(e) Liens on fixed or capital assets acquired, constructed or improved by a Borrower or any Subsidiary; provided
that (i) such security interests secure Indebtedness permitted by clause (g) of Section 6.01, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the
completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such security interests shall not apply to any
other property or assets of the Borrowers or any Subsidiary; 
 (f) Liens not otherwise permitted under this
Section 6.02 securing Indebtedness of less than $10,000,000 in the aggregate; and 
 (g) Liens on cash or
debt securities and other investments pursuant to Section 6.04(a) securing (i) Indebtedness permitted pursuant to Section 6.01(i) or (ii) collateralized trusts, withheld balances and other collateral or security arrangements in
the ordinary course of reinsurance or insurance business. 
 SECTION 6.03. Fundamental Changes. (a) The Borrowers
will not, and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after
giving effect thereto no Default shall have occurred and be continuing (i) any Subsidiary may merge into a Borrower in a transaction in which such Borrower is the surviving corporation, (ii) any Subsidiary (other than a Borrower) may merge
into any Subsidiary in a transaction in which the surviving entity is a Subsidiary, (iii) a Person may be merged into a Borrower or any Subsidiary pursuant to a Permitted Acquisition, and (iv) any Subsidiary (other than a Borrower) may
liquidate or dissolve if the Borrowers determine in good faith that such liquidation or dissolution is in the best interests of the Borrowers 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 6.04. 

(b) The Borrowers will not, nor will they permit any Subsidiary to, make any Asset Disposition except for (i) Asset Dispositions
expressly permitted by Sections 6.04, 6.06 or 6.07 and (ii) other Asset Dispositions of property that, together with all other property of the Borrowers and the Subsidiaries previously leased, sold or disposed of in Asset Dispositions made
pursuant to Section 6.03(b) during the twelve-month period ending with the month in which any such lease, sale or other disposition occurs, do not constitute a Substantial Portion of the property of the Parent and its Subsidiaries;
provided that under no circumstances shall the Equity Interests in a Borrower be included in a permitted Asset Disposition. 
  

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 (c) The Borrowers will not, and will not permit any Subsidiary to, engage to any material
extent in any business other than businesses of the type conducted by the Parent and its Subsidiaries on the date of execution of this Agreement and businesses complementary, reasonably related or incidental thereto. 

SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Borrowers will not, and will not permit any
Subsidiary 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 capital stock, evidences 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, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: 

(a) investments complying with the terms of the Argo Investment Policy; 

(b) investments by the Parent or any Subsidiary in the capital stock of a Subsidiary or, in the case of treasury shares, capital stock of
the Parent held on the Effective Date or purchased thereafter in transactions permitted pursuant to Section 6.06(a)(ii); 

(c) loans or advances made by any Borrower to any other Borrower, by any Borrower to any Subsidiary or made by any Subsidiary to any
Borrower or any other Subsidiary to the extent the corresponding Indebtedness is permitted by Section 6.01(e); 
 (d)
Guarantees constituting Indebtedness permitted by Section 6.01; 
 (e) subject to the provisions of this Section 6.04
and, as applicable, the requirements contained in the definition of Permitted Acquisition, the Parent and its Wholly-Owned Subsidiaries may from time to time effect Permitted Acquisitions and investments in joint ventures for aggregate consideration
(including Equity Interests and the assumption of Indebtedness) not to exceed $200,000,000 in any fiscal year and $400,000,000 over the term of this Agreement provided that (i) no Default is existing either at the time of the
consummation of such proposed investment and immediately after giving effect thereto; (ii) with respect to any such proposed investment for aggregate consideration (including Equity Interests and the assumption of Indebtedness) exceeding
$50,000,000, (A) the Rating shall be at least BBB- both immediately before the consummation of such proposed investment and immediately after giving effect thereto (and after giving effect to any adjustment of the Rating associated with the
consummation of such proposed investment) and (B) the Administrative Agent shall have received written notice of any such proposed investment and information materials related thereto in form and substance reasonably satisfactory to it from the
Borrower Representative not less than 7 days prior to the consummation of such investment and (iii) the aggregate amount invested in joint ventures pursuant to this Section 6.04(e) (valued at initial cost less capital distributions) shall
not exceed $50,000,000; 
 (f) investments of any Person in existence at the time such Person becomes a Subsidiary pursuant to a
Permitted Acquisition; provided that such investment was not made in connection with or in anticipation of such Person becoming a Subsidiary; 
  

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 (g) payroll, travel and similar advances to directors, officers and employees of the Parent
or any Subsidiary that are made in the ordinary course of business not in excess of $2,500,000; and 
 (h) other investments
(valued at initial cost) at no time aggregating more than $10,000,000. 
 SECTION 6.05. Swap Agreements. The Borrowers
will not, and will not permit any Subsidiary to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which a Borrower or any Subsidiary has actual exposure (other than those in respect of Equity
Interests of a Borrower or any of its Subsidiaries), (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise)
with respect to any interest-bearing liability or investment of a Borrower or any Subsidiary and (c) Swap Agreements entered into in connection with any Restricted Payments permitted to be made under Section 6.06(a)(ii). 

SECTION 6.06. Restricted Payments. The Borrowers will not, and will not permit any Subsidiary to, declare, pay or make, or agree
to declare, pay or make, directly or indirectly, any Restricted Payment, except: 
 (a)(i) the Parent may declare and pay
publicly announced and regularly scheduled dividends on its issued and outstanding common stock that is traded publicly on a national securities exchange and (ii) the Parent or any Subsidiary may make stock repurchases and other Restricted
Payments, in each case of or relating to the Capital Stock of the Parent, pursuant to the stock repurchase plan approved by the board of directors of the Parent on November 13, 2007 in an aggregate amount not in excess of $120,000,000 after the
Effective Date; provided, however that no Restricted Payment shall be permitted to be declared, and no Restricted Payment (other than dividends declared in compliance herewith) shall permitted to be paid, under this clause (a) if any Default is
existing either at the time of the proposed Restricted Payment or immediately after giving effect thereto; 
 (b) the Parent may
pay dividends payable solely in its common stock; 
 (c) the Borrowers and any Subsidiary may make any scheduled payment
required in connection with the Trust Preferred Securities permitted under Sections 6.01(c) and (d); provided, however, that no payment shall be permitted under this clause (c) upon the occurrence and during the continuance of a Default;

 (d) the Borrowers and any Subsidiary may make any payment required in connection with exercising the call rights under
(i) any “Floating Rate Loan Stock” (as described in the notes to the Parent’s financial statements for the period ending December 31, 2009) or (ii) an aggregate amount of up to $150,000,000 of any other Trust Preferred
Securities permitted under Sections 6.01(c) and (d); provided, however, that no payment shall be permitted under this clause (d) if any Default is existing either at the time of the consummation of such proposed payment or immediately after
giving effect thereto; 
  

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 (e) the Borrowers and any Subsidiary may make any prepayment of the Trust Preferred
Securities permitted under Sections 6.01(c) and (d) in connection with a refinancing thereof permitted under Section 6.16; and 

(f) any Subsidiary may declare and pay or make Restricted Payments to any of the Borrowers or to a Wholly-Owned Subsidiary provided,
however, that Argo US shall not make any Restricted Payment pursuant to this clause (f) upon the occurrence and during the continuance of a Default or if a Default would result therefrom. 

SECTION 6.07. Transactions with Affiliates. The Borrowers will not, and will not permit any Subsidiary 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 such Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Parent and its Wholly Owned
Subsidiaries not involving any other Affiliate, (c) any Restricted Payment permitted by Section 6.06, (d) pursuant to the terms of the Intercompany Loan Agreement and (e) as permitted by Section 6.04. 

SECTION 6.08. Restrictive Agreements. The Borrowers will not, and will not permit any Subsidiary to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrowers or any Subsidiary to create, incur or permit to exist any Lien upon any of its property
or assets to secure the obligations of the Borrowers hereunder or under any guaranty thereof, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans
or advances to the Borrowers or any other Subsidiary or to Guarantee Indebtedness of the Borrowers or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by this
Agreement, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.08 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any
such restriction or condition) or to restrictions and conditions similar to those set forth in the Trust Preferred Securities upon the ability of special purpose trust Subsidiaries and other entities to pay dividends or make distributions related to
Indebtedness of the same or similar character as the Trust Preferred Securities, (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary or assets pending such
sale, provided that such restrictions and conditions apply only to the Subsidiary or assets to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by
any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary
provisions in leases and other contracts restricting the assignment thereof. 
 SECTION 6.09. Minimum Interest Coverage
Ratio. The Borrowers will not permit the Interest Coverage Ratio as of the end of any fiscal quarter of the Parent to be less than 2.5:1.00. 
  

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 SECTION 6.10. Maximum Leverage Ratio. The Borrowers will not permit the Leverage
Ratio to exceed .35 to 1.00 at any time. 
 SECTION 6.11. Tangible Net Worth. (a) Argo US will not permit at any
time its Tangible Net Worth to be less than the sum of (i) $600,131,000 plus (ii) 50% of the positive net income of Argo US and its subsidiaries on a consolidated basis for each fiscal quarter ending after December 31, 2009 and
(b) the Parent will not permit at any time its Tangible Net Worth to be less than the sum of (i) $1,024,503,000 plus (ii) 75% of positive net income of the Parent and its subsidiaries on a consolidated basis for each fiscal quarter
ending after December 31, 2009. 
 SECTION 6.12. Risk Based Capital Ratio. The Borrowers will not permit any of the
Specified Insurance Subsidiaries to have a Risk Based Capital Ratio of less than 300% as of December 31 of any calendar year from and including December 31, 2009. 

SECTION 6.13. Fiscal Year. The Borrowers shall not, nor shall it permit any Subsidiary to, change its fiscal year to end on any
date other than December 31 of each year. 
 SECTION 6.14. Sale and Leaseback Transactions. Except for Sale and
Leaseback Transactions entered into in the ordinary course of business with respect to real property owned by the Borrowers on the Effective Date or acquired thereafter pursuant to a Permitted Acquisition, the Borrowers will not, and will not permit
any Subsidiary to, enter into or suffer to exist any Sale and Leaseback Transaction. 
 SECTION 6.15. Rentals. The Parent
will not, nor will it permit any Subsidiary to, create, incur or suffer to exist obligations for operating lease rental expense in respect of any fiscal year of the Parent in excess of $30,000,000 in the aggregate for the Parent and its
Subsidiaries. 
 SECTION 6.16. Subordinated Indebtedness; Other Indebtedness and Payments. The Borrowers will not, and
will not permit any Subsidiary to, make any amendment or modification to the indenture, note or other agreement evidencing or governing any Subordinated Indebtedness or directly or indirectly voluntarily prepay, defease or in substance defease,
purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness; provided, however, that the Borrowers shall be allowed at any time to voluntarily refinance any Subordinated Indebtedness with new Subordinated Indebtedness
so long as (a) the principal amount of such new Indebtedness does not exceed the outstanding principal amount of the Subordinated Indebtedness being refinanced (other than as a result of any original issue discount not in excess of two
percent); (b) such Indebtedness is on terms (other than pricing), taken as a whole, no less favorable to the Borrowers than the terms of the Subordinated Indebtedness being refinanced; (c) such Indebtedness is subordinated to the
applicable Obligations at least to the same extent as the Subordinated Indebtedness being refinanced and (d) such Indebtedness has a final scheduled maturity at least six months after the Maturity Date and has scheduled payments prior to the
Maturity Date not in excess of the scheduled payments under the Subordinated Indebtedness being refinanced. Notwithstanding anything in this Section to the contrary, this Section 6.16 shall not apply to Indebtedness permitted by
Section 6.01(e). 
  

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 ARTICLE VII 

Events of Default 

If any of the following events (“Events of Default”) shall occur: 

(a) any of the Borrowers shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC
Disbursement or any cash collateral amount due pursuant to Section 2.06(j) when and as the same shall become due and payable (including under Section 2.20 hereof but excluding under Section 2.04 hereof), whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise; 
 (b) any of the Borrowers shall fail to pay any
interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for
a period of three Business Days; 
 (c) any representation or warranty made or deemed made by or on behalf of the
Borrowers or any Subsidiary in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this
Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect when made or deemed made; 

(d) the Borrowers shall fail to observe or perform any covenant, condition or agreement contained in Sections 5.02, 5.03
(with respect to any Borrower’s existence), 5.08 or in Article VI; 
 (e) the Borrowers shall fail to
observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice
thereof from the Administrative Agent to the Borrower Representative (which notice will be given at the request of any Lender); 

(f) any of the Borrowers or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless
of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable (giving effect to any applicable cure period relating thereto); 

(g) any event or condition occurs that results in any Material Indebtedness or any Trust Preferred Security Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or Trust Preferred Security Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness or Trust Preferred Security Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that
this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 

 

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 (h) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) liquidation, winding-up, administration, reorganization or other relief in respect of any of the Borrowers or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, administration, receivership or similar law now or hereafter in effect or (ii) the appointment of a liquidator, receiver, trustee, custodian, sequestrator, conservator, administrator, administrative receiver or similar
official for any of the Borrowers or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing
shall be entered; 
 (i) any of the Borrowers or any Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, winding-up, administration, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to
the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a liquidator, receiver, trustee, custodian,
sequestrator, conservator, administrator or similar official for any of the Borrowers or any 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; 

(j) any Borrower or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts
as they become due; 
 (k) one or more judgments for the payment of money in an aggregate amount in excess of
$10,000,000 shall be rendered against any Borrower, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets of any Borrower or any Subsidiary to enforce any such judgment; 

(l) an ERISA Event or circumstance in respect of any Foreign Pension Plan shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events and such circumstances that have occurred, could reasonably be expected to result in a Material Adverse Effect; 

(m) a Change in Control shall occur; 

(n) the AM Best Financial Strength Rating of any Significant Insurance Subsidiary shall be less than B++ (or any such
Significant Insurance Subsidiary shall have no AM Best Financial Strength Rating) and such event shall continue unremedied for a period of five (5) Business Days; 
  

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 (o) obligations owing in connection with the Trust Preferred Securities or
Indebtedness incurred pursuant to Section 6.01(f) shall at any time and for any reason cease to be fully subordinated to the Obligations outstanding in connection with the Credit Documents; 

(p) any governmental authority revokes or fails to renew any material license, permit or franchise of any Borrower or any
Significant Insurance Subsidiary, or any Borrower or any Significant Insurance Subsidiary for any reason loses any material license, permit or franchise, or any Borrower or any Significant Insurance Subsidiary suffers the imposition of any
restraining order, escrow, suspension or impound of funds in connection with any proceeding (judicial or administrative) with respect to any material license, permit or franchise, which could reasonably be expected to result in losses or liability
of the Borrowers or any of the Significant Insurance Subsidiaries, individually or in the aggregate, in excess of $10,000,000 and such event shall continue unremedied for a period of five (5) Business Days; 

then, and in every such event (other than an event with respect to any of the Borrowers described in clause (h) or (i) of this Article), and at
any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower Representative, take either or both of the following actions, at the same or
different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared
to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to any of the Borrowers described in clause
(h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers. 

ARTICLE VIII 

The Administrative Agent 

Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent 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, together with such actions and powers as are reasonably incidental thereto. 

The bank 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 such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrowers or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder. 
  

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 The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the
Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing
as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth herein, the Administrative Agent shall
not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrowers or any of its Subsidiaries that is communicated to or obtained by the bank serving as 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 with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02) or 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 written notice thereof is
given to the Administrative Agent by the Borrower Representative or a Lender, and 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, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be delivered to the 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 believed by it to be genuine and to have been signed
or sent 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 be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrowers), 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. 
 The Administrative Agent may perform any and all its duties and exercise its rights and powers 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 its duties and exercise its rights and powers through their respective Related Parties. The exculpatory
provisions of the preceding paragraphs 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. 
  

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 Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrowers. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrowers, to appoint a
successor. If no 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 which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 9.03 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 it was acting as Administrative Agent. 
 Each Lender acknowledges that 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 Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender 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 related agreement or any document furnished hereunder or thereunder. 

The Administrative Agent shall be permitted from time to time to designate one of its Affiliates to perform the duties to be performed by
the Administrative Agent hereunder with respect to Loans and Borrowings denominated in Foreign Currencies. The provisions of this Article VIII shall apply to any such Affiliate mutatis mutandis. 

The Lenders identified on the front page of this Agreement as Syndication Agent or Co-Documentation Agents shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such. 

ARTICLE IX 

Miscellaneous 

SECTION 9.01. Notices. (a) Except in the case of notices and other communications expressly permitted to be given by
telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows: 
 (i) if to any Borrower, to it c/o Argo Group US, Inc., 10101 Reunion Place, Suite 500,
San Antonio, Texas 78216, Attention of Jay Bullock, (Telecopy No. (210) 377-2637); with a copy to Lynn Geurin, (Telecopy No. (210) 344-5852 and Craig Comeaux, (Telecopy No. (210) 321-8409); 

 

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 (ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 1020 NE
Loop 410, 1st Floor, San Antonio, Texas 78209, Attention of Jennifer Wilkinson (Telecopy No. (210) 829-6109); 

(iii) if to the Administrative Agent for Eurocurrency Loans in Foreign Currencies, to J.P. Morgan Europe Limited, 125
London Wall, London EC1W 2JD, Attention of Ching Loh/The Manager, Telecopy No. +44(0) 207 777 2360); 
 (iv)
if to the Issuing Bank, to it at JPMorgan Chase Bank, N.A., 1020 NE Loop 410, 1st Floor, San Antonio, Texas 78209, Attention of Jennifer Wilkinson (Telecopy No. (210) 829-6109); and 

(v) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.

 (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower Representative 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. 
 (c) Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

 SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative Agent, the Issuing Bank or any
Lender in exercising any right or power 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 remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder 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 the Borrowers therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, 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 issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time. 
  

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 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the Borrowers and the Required Lenders or by the Borrowers and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall
(i) increase the Commitment of any Lender or alter the nature of such Commitment (i.e. its nature as either a Dollar Tranche Commitment or a Multicurrency Tranche Commitment) 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 scheduled date of payment of the
principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender affected thereby, (iv) change any portion of this Agreement in a manner that would alter the pro rata nature of payments, loans and Commitment reductions under this Agreement, without the written consent of each Lender,
(v) change any of the provisions of this Section or the definitions of “Required Lenders” or “Required Multicurrency Tranche Lenders” or any other provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender, (vi) release any Borrower from any of its joint and several liabilities in respect of the
Obligations without the written consent of each Lender or (vii) change any provision of Sections 2.04, 2.06(c), 2.06(j), 2.10(g) or 2.10(h) without the consent of each Lender adversely affected thereby; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the Issuing Bank hereunder without the prior written consent of the Administrative Agent or the Issuing Bank, as the case may be. 

(c) Notwithstanding the foregoing, Schedule 3.11 hereto shall be deemed amended without the consent of any other party solely to reflect
revisions or supplements of the type described in the parenthetical in the first sentence of Section 3.11 upon the delivery by the Borrower Representative to the Administrative Agent of a revised Schedule 3.11 reflecting such revisions and
supplements. 
 SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrowers shall pay (i) all
reasonable out of pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities
provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) without
duplication of amounts otherwise payable hereunder, 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 expenses incurred by the Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of (A) any counsel for the Administrative Agent, the Issuing Bank or any Lender, and
(B) a financial advisor for the 
  

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Administrative Agent, the Issuing Bank and the Lenders, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section,
or in connection with the Loans made or 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. 

(b) The Borrowers shall indemnify the Administrative Agent, the Issuing Bank and each Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, 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 agreement or instrument contemplated hereby, the
performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the 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 or operated by the Borrowers or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrowers or any of its Subsidiaries, or (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; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses resulting from the gross negligence or willful misconduct of such Indemnitee. 

(c) To the extent that the Borrowers fail to pay any amount required to be paid by them to the Administrative Agent or the Issuing Bank
under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent or the Issuing Bank, as the case may be, such Lender’s Dollar Revolving Commitment Exposure Percentage or Multicurrency
Revolving Commitment Exposure Percentage, as the case may be, (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or the Issuing Bank in its capacity as such. 

(d) To the extent permitted by applicable law, the Borrowers shall not assert, and hereby waive, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the
Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
 (e) All amounts due under this Section shall be
payable not later than ten days after written demand therefor. 
  

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 SECTION 9.04. Successors and Assigns. (a) 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 (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrowers may not
assign or otherwise transfer any of their respective rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrowers without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section. 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 (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) 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) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may 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 at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 

(A) the Borrowers, provided that no consent of the Borrowers shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; 

(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an
assignment of any Commitment to an assignee that is a Lender with a Commitment immediately prior to giving effect to such assignment; and 

(C) the Issuing Bank, provided that no consent of the Issuing Bank shall be required for an assignment of any
Dollar Tranche Commitment. 
 (ii) Assignments shall be subject to the following additional conditions: 

(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or 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) shall not be less than $5,000,000 unless each of the Borrowers and the Administrative Agent otherwise consent, provided that no such consent of the Borrowers shall be required if an Event of Default has
occurred and is continuing; 
 (B) 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; 
  

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 (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; and 

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire
in which the assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrowers and their affiliates and their related parties or their respective
securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws. 

For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning: 

“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course of its business and 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. 
 (iii) Subject to acceptance and recording thereof pursuant to paragraph
(b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto 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 2.15, 2.16, 2.17 and 9.03).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section. 
 (iv) The Administrative Agent, acting for
this purpose as an agent of the Borrowers, shall maintain at one of its offices 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 Commitment of, and
principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrowers, the Administrative Agent,
the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrowers, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  

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 (v) Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either
the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.06(d) or (e), 2.07(c), 2.18(d) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment
and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph. 
 (c) (i) Any Lender may, without the consent of the
Borrowers, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders 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, modification or waiver described in the first proviso
to Section 9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.18(c) as though it were a Lender. 
 (ii) A Participant shall
not be entitled to receive any greater payment under Section 2.15, 2.16 or 2.17 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 Borrowers’ 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 2.17 unless the Borrower Representative is notified of
the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with Section 2.17(e) as though it were a Lender. 

(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including 
  

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without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Borrowers 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 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 2.15, 2.16, 2.17 and 9.03 and Article VIII 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. 
 SECTION 9.06. Counterparts; Integration; Effectiveness. 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 and any separate letter agreements with respect to fees payable
to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as
provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 9.07.
Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting
the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its
Affiliates is 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 obligations at
any time owing by such Lender or Affiliate to or for the credit or the account of any of the 
  

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Borrowers against any of and all the obligations of such Person now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 

SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance
with and governed by the law of the State of New York. 
 (b) Each of the Borrowers hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Agreement, 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 New York State 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 against the Borrowers or their respective properties in the courts of any jurisdiction. 

(c) Each of the Borrowers hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any
objection which 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 in any court referred to in paragraph (b) of this Section. 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. 

(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.
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 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY 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 OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  

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 SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority,
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to any Borrower and its obligations,
(g) with the consent of the Borrowers or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank
or any Lender on a non-confidential basis from a source other than the Borrowers. For the purposes of this Section, “Information” means all information received from the Borrowers relating to any Borrower or its business, other than
any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrowers. Any Person required to maintain the confidentiality of Information as provided in
this Section 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 to its own confidential information.

 EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT
MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE PARENT AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL
HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS. 

ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWERS OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR
IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWERS AND THEIR AFFILIATES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES) AND ITS
SECURITIES. ACCORDINGLY, EACH 
  

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LENDER REPRESENTS TO THE BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW. 
 SECTION 9.13.
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 are treated as interest on such Loan under applicable
law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the 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 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 Effective Rate to the date of repayment, shall have been received by such Lender. 

SECTION 9.14. USA PATRIOT Act. Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrowers that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies such Person, which information
includes the names and addresses of the Borrowers and other information that will allow such Lender to identify the Borrowers in accordance with the Act. 

SECTION 9.15. Conversion of Currencies. (a) If, for the purpose of obtaining judgment in any court, it is necessary to
convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in
the relevant jurisdiction the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given. 

(b) The obligations of each Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the
“Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the
relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrowers agree, as
a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss. The obligations of the Borrowers contained in this Section 9.15 shall survive the termination of this Agreement and the payment
of all other amounts owing hereunder. 
  

 80 

 SECTION 9.16. Appointment and Authorization of Borrower Representative. 

(a) Each Borrower hereby designates, appoints, authorizes and empowers Argo US as its agent to act as specified in the capacity of
Borrower Representative under this Agreement and each of the other Credit Documents and Argo US hereby acknowledges such designation, authorization and empowerment, and accepts such appointment. Each Borrower hereby irrevocably authorizes and
directs the Borrower Representative to take such action on its behalf under the respective provisions of this Agreement and the other Credit Documents, and any other instruments, documents and agreements referred to herein or therein, and to
exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Borrower Representative by the respective terms and provisions hereof and thereof, and such other powers as are reasonably
incidental thereto, including, without limitation, to take the following actions for and on such Borrower’s behalf: 

(i) to submit on behalf of each Borrower Borrowing Requests, and notices of conversion or continuation of Loans to the
Administrative Agent in accordance with the provisions of this Agreement, each such notice to be submitted by the Borrower Representative to the Administrative Agent as soon as practicable after its receipt of a request to do so from a Borrower; and

 (ii) to submit on behalf of each Borrower requests for the issuance of Letters of Credit in accordance with
the provisions of this Agreement, each such request for the issuance of a Letter of Credit to be submitted by the Borrower Representative as soon as practicable after its receipt of a request to do so from any Borrower. 

(b) The Borrower Representative is further authorized and directed by each of the Borrowers to take all such actions on behalf of such
Borrower necessary to exercise the specific powers granted in clauses (i) and (ii) above and to perform such other duties hereunder and under the other Credit Documents, and deliver such documents as delegated to or required of the
Borrower Representative by the terms hereof or thereof. The Administrative Agent and each Lender may regard any notice or other communication pursuant to any Credit Documents from the Borrower Representative as a notice or communication from all
Borrowers, and may give any notice or communication required or permitted to be given to any Borrower or Borrowers hereunder to the Borrower Representative on behalf of such Borrower or Borrowers. Each Borrower agrees that each notice, election,
representation and warranty, covenant, agreement and undertaking made on its behalf by the Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to
the same extent as if the same had been made directly by such Borrower. 
 (c) The Borrower Representative may perform any of
its duties hereunder or under any of the other Credit Documents by or through its agents or employees. 
 [Signature page
follows] 
  

 81 

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

			
	ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
		
	 By
	 	 /s/ Jay S. Bullock

	 Name:
	 	 Jay S. Bullock

	 Title:
	 	 EVP & CFO

	
	 ARGO GROUP US, INC.

		
	 By
	 	 /s/ Jay S. Bullock

	 Name:
	 	 Jay S. Bullock

	 Title:
	 	 EVP, Finance

	
	ARGO INTERNATIONAL HOLDINGS LIMITED
		
	 By
	 	 /s/ Jay S. Bullock

	 Name:
	 	 Jay S. Bullock

	 Title:
	 	 Director

	
	 ARGO UNDERWRITING AGENCY LIMITED

		
	 By
	 	 /s/ Jay S. Bullock

	 Name:
	 	 Jay S. Bullock

	 Title:
	 	 Director

[Signature Page to Argo Credit Agreement] 

			
	 JPMORGAN CHASE BANK, N.A., individually

and as Administrative Agent

		
	 By
	 	 Jennifer Wilkinson

	 Name:
	 	Jennifer Wilkinson
	 Title:
	 	 Senior Vice President

[Signature Page to Argo Credit Agreement] 

			
	 Wells Fargo Bank.N.A

		
	 By
	 	 /s/ Terry L.Witte

	 Name:
	 	Terry L.Witte
	 Title:
	 	Sr. Vice President

 [Signature
Page to Argo Credit Agreement] 

			
	 U.S. Bank N.A.

		
	 By
	 	 /s/ Evan Glass

	 Name:
	 	Evan Glass
	 Title:
	 	Vice President

 [Signature Page to
Argo Credit Agreement] 

			
	 BARCLAYS BANK PLC

		
	 By
	 	 /s/ Stuart Ratcliffe

	 Name:
	 	Stuart Ratcliffe
	 Title:
	 	Director

 [Signature Page to Argo
Credit Agreement] 

			
	 The Bank Bermuda Limited

		
	 By
	 	 /s/ Matthew Living

	 Name:
	 	Matthew Living
	 Title:
	 	Senior Relationship Manager

  

			
	 The Bank Bermuda Limited

		
	 By
	 	 /s/ Guillermo Konecny

	 Name:
	 	Guillermo Konecny
	 Title:
	 	Head of Global Banking & Markets

[Signature Page to Argo Credit Agreement] 

			
	 BANK OF AMERICA, N.A.

		
	 By
	 	 /s/ Tiffany Burgess

	 Name:
	 	Tiffany Burgess
	 Title:
	 	Vice President

 [Signature Page to
Argo Credit Agreement] 

			
	 THE FROST NATIONAL BANK

		
	 By
	 	 /s/ Victor J Harris

	 Name:
	 	Victor J Harris
	 Title:
	 	Senior Vice President

 [Signature
Page to Argo Credit Agreement] 

 Schedule 1.01 

PRICING SCHEDULE 
  

										
	 APPLICABLE MARGIN

(ALTERNATIVE BASE RATE SPREAD)
	  	LEVEL I	 	 	LEVEL II	 	 	LEVEL III	 
	 Leverage Ratio £ 20%
	  	1.25	% 	 	1.50	% 	 	2.25	% 
	 Leverage Ratio £ 30%
	  	1.50	% 	 	1.75	% 	 	2.50	% 
	 Leverage Ratio > 30%
	  	1.75	% 	 	2.00	% 	 	3.00	% 

  

										
	 APPLICABLE0 MARGIN

(EUROCURRENCY SPREAD)
	  	LEVEL I	 	 	LEVEL II	 	 	LEVEL III	 
	 Leverage Ratio £ 20%
	  	2.25	% 	 	2.50	% 	 	3.25	% 
	 Leverage Ratio £ 30%
	  	2.50	% 	 	2.75	% 	 	3.50	% 
	 Leverage Ratio > 30%
	  	2.75	% 	 	3.00	% 	 	4.00	% 

  

										
	 COMMITMENT FEE
	  	LEVEL I	 	 	LEVEL II	 	 	LEVEL III	 
	 Commitment Fee Rate
	  	0.50	% 	 	0.50	% 	 	0.75	% 

 “Argo US
Rating” means, at any time, the rating issued by S&P and then in effect with respect to the Argo US’s Issuer Credit Rating, as determined without third-party enhancement. 

“Borrower Rating” means, as of any date of determination, the Argo US Rating; provided, however, that at
any time that there exists both an Argo US Rating and a Parent Rating and there is a split between such Ratings, then the
higher1 of such Ratings shall apply, unless there is a
split in Ratings of more than one level, in which case the level that is one level higher than the lower Rating shall apply. 

“Parent Rating” means, at any time, the rating, if any, issued by S&P and then in effect with respect to the Parent’s
Issuer Credit Rating, as determined without third-party enhancement. 
 “Rating” means an Argo US Rating or a Parent
Rating. 
 “Subsidiary Rating” means, at any time, the AM Best Financial Strength Rating then in effect for Argo
US’s rated operating insurance Subsidiaries. 
 “Level I Status” exists at any date if, on such date, the
Borrower Rating is BBB or better and the Subsidiary Rating is A or better. 
  

 

	1
	 It being understood and agreed, by way of example, that a Rating of A- is one level higher than a Rating of BBB+. 

 “Level II Status” exists at any date if, on such date, the Borrowers have not
qualified for Level I Status and the Borrower Rating is BBB- or better and the Subsidiary Rating is A- or better. 
 “Level
III Status” exists at any date if, on such date, the Borrowers have not qualified for Level I Status or Level II Status. 

“Status” means Level I Status, Level II Status and Level III Status. 

The Applicable Rate shall be determined in accordance with the foregoing table based on the Status as determined from the then current
Borrower Rating and Subsidiary Rating and the Leverage Ratio as reflected in the then most recent financial statements delivered pursuant to Section 5.01 (the “Financials”). The Borrower Rating and Subsidiary Rating in effect on any
date for the purposes of this Schedule shall be that in effect at the close of business on such date. Adjustments, if any, to the Applicable Rate arising out of a change in the Leverage Ratio shall be effective five Business Days after the
Administrative Agent has received the applicable Financials. If the Borrowers fail to deliver the Financials to the Administrative Agent at the time required pursuant to this Agreement, then the Applicable Rate shall be the highest Applicable Rate
set forth in the foregoing table for the then effective Borrower Rating and Subsidiary Rating until five Business Days after such Financials are so delivered. Until adjusted after the receipt of the first set of Financials delivered after the
Effective Date, Level II Status with a Leverage Ratio of 22% shall be deemed to exist. 
  

 2Amended Severance Plans for Corporate Officers

 Exhibit 10.1 

SARA LEE CORPORATION 

SEVERANCE PLANS FOR CORPORATE OFFICERS 

(As amended and restated effective January 1, 2009) 

INTRODUCTION 

This document sets forth the severance plans of Sara Lee Corporation (the “Corporation”) governing: 

 

	 	(a)	payments and benefits to be provided in the event of the involuntary termination of employment with the Corporation of an officer of the Corporation (excluding
assistant secretaries, assistant treasurers and any other positions below the level of a Board of Directors-appointed Corporate Vice President) who was elected by the Board of Directors of the Corporation (“Officer” or “Terminated
Officer”), as set forth in Article 2 below; and 

  

	 	(b)	payments and benefits to be provided in the event of the termination of employment with the Corporation of an Officer under certain circumstances following a change in
control of the Corporation, as set forth in Article 3 below. 

 ARTICLE 1 

COMMON PROVISIONS 

The following provisions shall apply to both the Involuntary Termination Plan (Article 2 below) and the Change in Control Plan (Article 3
below): 
 1.1 Definitions 

Whenever used in the Involuntary Termination Plan or the Change in Control Plan, capitalized terms used but not otherwise defined herein
shall have the meanings set forth below: 
  

	 	(a)	“Board” means the Board of Directors of the Corporation. 

  

	 	(b)	“Committee” means the Compensation and Employee Benefits Committee of the Board, a subcommittee thereof, or such other committee as may be appointed by
the Board. 

  

	 	(c)	“Code” means the United States Internal Revenue Code of 1986, as amended, and any successors thereto. 

 

	 	(d)	“Corporation” means Sara Lee Corporation and any successor thereto. 

 

	 	(e)	“Effective Date” of both the Involuntary Termination Plan and the Change in Control Plan as described herein means June 30, 2006.

 1.2 Employment Status 

Except as may be provided under any other agreement between an Officer and the Corporation, the employment of such Officer by the
Corporation is “at will,” and may be terminated by either such Officer or the Corporation at any time, subject to applicable law. 

 1.3 Severability 

In the event any provision of either the Involuntary Termination Plan or the Change in Control Plan shall be held illegal or invalid for
any reason, the illegality or invalidity of such provision shall not affect the remaining parts of such plan, and such plan shall be construed and enforced as if the illegal or invalid provisions had not been included. Further, the captions of the
plans are not part of the provisions thereof and shall have no force and effect. 
 1.4 Compliance with Section 409A 

 Notwithstanding anything in these plans to the contrary, the Corporation further intends that to the extent the plans provide
a severance pay benefit that constitutes a deferral of compensation as determined in accordance with Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Section 409A”), each provision in
these plans shall be interpreted to comply with the requirements of Section 409A and any provision that would conflict with such requirements shall not be valid or enforceable. 

ARTICLE 2 

INVOLUNTARY TERMINATION PLAN 

2.1 Introduction 

This plan (the “Involuntary Termination Plan”) has been established by the Corporation to govern payments and benefits to be
made in the event of the involuntary termination of employment with the Corporation of an Officer on or after the Effective Date. The Involuntary Termination Plan does not govern severance payments and benefits to be made in the event of a
Qualifying Termination (as such term is defined in Article 3 below), which matters are instead governed by the Change in Control Plan (Article 3 below). 

2.2 Statement of General Purpose 

It is intended by the Corporation that an Officer whose employment with the Corporation has been involuntarily terminated under the
circumstances described herein be entitled to specified severance pay and benefits as set forth in this Involuntary Termination Plan, and subject to the terms of a separation agreement between the Corporation and the Officer entered into in
connection with the termination of employment. This Involuntary Termination Plan duly recognizes the circumstances of termination and years of service with the Corporation as factors to be considered in the determination of the amount of severance
to be paid to a Terminated Officer. 
 2.3 Definitions 

Whenever used in the Involuntary Termination Plan, capitalized terms used but not otherwise defined herein shall have the meanings set
forth below: 
  

	 	(a)	“Base and Bonus Compensation” means one-twelfth (1/12) of the sum of (i) the annual salary in effect for the Officer immediately prior to the
Officer’s termination and (ii) 75% of the Officer’s target annual incentive as defined under the annual incentive plan of the Corporation (the “Annual Incentive Plan”) for the year in which the termination occurs.

  

	 	(b)	“Cause” shall mean a determination by the Corporation that the Officer has willfully engaged in conduct materially injurious to the Corporation or has
committed a crime involving dishonesty, moral turpitude or other disreputable behavior, including, but not limited to, a violation of the Corporation’s Global Business Standards. 

 

 2 

	 	(c)	“Disability” shall mean a determination by the Corporation under the Corporation’s disability plan that the Officer is disabled.

  

	 	(d)	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and any successors thereto. 

 

	 	(e)	“Retirement” shall mean a termination on or after the Officer’s normal retirement age (as defined in the applicable Retirement Plan) following
which the Terminated Officer is eligible for retirement benefits under such Retirement Plan. 

  

	 	(f)	“Retirement Plan” means the Sara Lee Corporation Salaried Pension Plan or any other qualified retirement plan of the Corporation, other than a 401(k)
plan. 

  

	 	(g)	“Termination Date” means the date of the Officer’s termination of employment with the Corporation and its Controlled Group Members by reason of
resignation or discharge, which shall be interpreted consistent with the definition of “separation from service” in Code Section 409A(a)(2)(A)(i) and any IRS guidance issued thereunder. For purposes of this definition,
“Controlled Group Member” means the Corporation and any affiliated or related corporation which is a member of a controlled group of corporations (within the meaning of Section 1563(a) of the Code) which includes the Corporation or
any trade or business (whether or not incorporated), which is under common control with the Corporation (within the meaning of Section 414(c) of the Code). 

2.4 Eligibility for Severance 
  

	 	(a)	Eligible Terminations. Subject to Section 2.4(b), an Officer may be eligible for severance payments and benefits pursuant to this Involuntary Termination
Plan only if his or her employment with the Corporation terminates under one of the following circumstances: 

  

	 	(i)	the Officer’s employment is terminated involuntarily due to an organizational restructuring which results in the elimination of the Officer’s position or
function; or 

  

	 	(ii)	the Officer terminates his or her employment at the direction of the Corporation. 

 

	 	(b)	Ineligible Terminations. Notwithstanding Section 2.4(a), an Officer shall not be eligible for any severance payments or benefits pursuant to this
Involuntary Termination Plan if his or her employment with the Corporation terminates under any of the following circumstances: 

  

	 	(i)	a termination for Cause; 

  

	 	(ii)	a termination due to Disability; 

  

	 	(iii)	a termination due to death; 

  

	 	(iv)	a termination due to Retirement; 

  

 3 

	 	(v)	a voluntary termination of employment by the Officer other than at the direction of the Corporation; 

 

	 	(vi)	a termination of employment of the Officer following which, within a reasonable period of time, the Officer is offered and accepts new employment with the Corporation;

  

	 	(vii)	the transfer of the Officer’s employment to a different division or operation of the Corporation with the consent of the Officer; 

 

	 	(viii)	the divestiture by the Corporation of the division or operation that employs the Officer and the continuance of employment by the new or acquiring entity on
substantially the same financial terms and conditions as in effect immediately prior to such disposition or on such other terms and conditions as are agreed to by the Officer; 

 

	 	(ix)	a termination of employment of the Officer under circumstances which entitle the Officer to receive severance payments or benefits pursuant to the terms of the Change
in Control Plan (Article 3 below) or another plan or agreement which is or has been established or entered into by the Corporation or assumed by the Corporation in an acquisition, merger or similar transaction (including without limitation a
change-in-control plan or agreement with a company which is acquired by the Corporation); or 

  

	 	(x)	any other termination of employment under circumstances not described in Section 2.4(a). 

 

	 	(c)	Characterization of Termination. The characterization of an Officer’s termination under this Involuntary Termination Plan shall be made by the
Corporation’s Executive Vice President-Human Resources, or such other person or committee designated by the Committee, which determination shall be final and binding (subject, however, to Section 2.10(c) below). 

2.5 Severance Benefits Payable 
  

	 	(a)	Severance Pay. An Officer terminated under circumstances described in Section 2.4(a), and not described in Section 2.4(b), shall receive the following
benefit (“Severance Pay”): 

  

	 	(i)	continued payment of the Officer’s Base and Bonus Compensation (the “Base and Bonus Portion of Severance”), over the number of months (the
“Severance Period”) determined by multiplying: 

  

	 	(A)	the number of the Officer’s full years of employment with the Corporation (including periods of employment with a predecessor employer, the business of which was
acquired by the Corporation), by 

  

	 	(B)	three months if the Officer is an Executive Vice President or an officer senior thereto; two months if the Officer is a Senior Vice President; or one month if the
Officer is a Vice President; 

  

 4 

 provided, however, in no event shall the Severance Period be less than twelve months or
more than twenty-four months; 
  

	 	(ii)	a pro-rata amount (from the first day of the current fiscal year of the Corporation to the Officer’s Termination Date) of: 

 

	 	(A)	the annual incentive, if any, payable under the Annual Incentive Plan in effect with respect to the fiscal year in which the Termination Date occurs, using actual
results, financial or non-financial, if applicable (the “Annual Incentive Portion of Severance”); and 

  

	 	(B)	the long-term incentive award, if any, payable under any long-term incentive program of the Corporation in which the Terminated Officer was a participant immediately
prior to such Officer’s Termination Date, if such long-term incentive award relates, in whole or in part, to the period prior to the Termination Date (the “Long-Term Incentive Portion of Severance”), with the pro-rata amount
calculated pursuant to the terms and conditions approved by the Committee at the time the award was granted and applicable to such long-term incentive program or award. 

 

	 	(iii)	a lump sum cash amount equal to the Officer’s unpaid base salary and accrued and unused vacation through the Officer’s Termination Date.

  

	 	(b)	 Health Coverage. Beginning at the Termination Date, a Terminated Officer shall be eligible to elect COBRA continuation coverage under the group
health plan (medical, dental and vision) available to similarly situated officers of the Corporation provided the Terminated Officer was enrolled in the group health insurance plan on the day prior to the Termination Date. If a Terminated Officer
eligible for severance under Section 2.4(a) elects COBRA continuation coverage, the Corporation shall subsidize the premium charged during the Severance Period so that the amount of such premium payable by such Terminated Officer shall equal
the amount payable by an active Officer of the Corporation for similar coverage. In the event the Severance Period exceeds the period during which the Terminated Officer is eligible for COBRA continuation coverage, the Corporation shall pay the
subsidy during the COBRA period and then shall pay the remainder of the subsidy to the Terminated Officer in a lump sum payment in the nineteenth month following the Termination Date; provided, however, that if the COBRA period terminates prior to
the end of eighteenth month following the Termination Date in accordance with the COBRA continuation of coverage provisions under the Corporation’s group health plan, then no such lump sum payment shall be made. The premium charged for COBRA
continuation coverage after the end of the Severance Period shall be entirely at the Terminated Officer’s expense and may be different from the premium charged during the Severance Period. The Terminated Officer’s COBRA continuation
coverage shall terminate in accordance with the COBRA continuation of coverage provisions under the Corporation’s group health plan. If the Terminated Officer is eligible for early retirement under the terms of a Retirement Plan (or would
become eligible if the Severance Period is considered as employment), then in lieu of COBRA continuation coverage under the group medical plan, the Terminated Officer may elect to participate in the Sara Lee Corporation Retiree Medical Plan
available to the Officers of the Corporation after the Termination Date in accordance with the terms and conditions of the plan in effect from time to time; provided, that such coverage shall not be available to the Terminated Officer unless he or
she elects such coverage within thirty (30) days following the Termination 

  

 5 

	 	
Date. The premium charged the Terminated Officer for such retiree medical coverage may be different from the premium charged an active Officer of the Corporation for similar coverage.

  

	 	(c)	 Participation In Other Plans. Except as otherwise provided herein or in the applicable plan, participation in all other plans of the Corporation
available to similarly situated Officers of the Corporation, including but not limited to, qualified pension plans, stock purchase plans, 401(k) plans and ESOPs, personal accident insurance, travel accident insurance, short and long term disability
insurance and accidental death and dismemberment insurance, shall cease on the Officer’s Termination Date. Any non-qualified 401(k), ESOP and pension benefits will be provided to a Terminated Officer eligible for severance through the Sara Lee
Corporation Supplemental Executive Retirement Plan by treating the Severance Period as a period of employment with the Corporation. The Corporation shall continue to maintain during the Severance Period life insurance covering the Terminated Officer
under the Executive Life Insurance Program, as such program is then in effect. If the Terminated Officer is eligible for early retirement or becomes eligible for early retirement during the Severance Period, then the Corporation will continue to pay
the premiums (or prepay the entire premium) so that the retired Terminated Officer has a paid-up life insurance benefit equal to his or her annual salary on the Termination Date. Any long-term incentive awards such Terminated Officer received prior
to the Termination Date shall continue to vest during the Severance Period pursuant to the terms of the long-term incentive grant agreements. Any stock option awards that vest prior to the end of the Severance Period must be exercised by the
Terminated Officer within the applicable period specified in the stock option plan and stock option grant agreements. A Terminated Officer eligible for severance under this Involuntary Termination Plan shall be permitted to continue using the
automobile provided to him or her by the Corporation in accordance with the terms of the Corporation’s Executive Car Program in effect at the Termination Date. A Terminated Officer shall not be eligible for reimbursement of club memberships and
expenses incurred, or for participation in the Corporation’s Matching Grant Program, after the Termination Date. A Terminated Officer who was an Executive Vice President or a Senior Vice President shall be entitled to continued financial
planning assistance provided by the Corporation through the Severance Period. Notwithstanding the foregoing, to the extent that any financial planning assistance or any other reimbursements are subject to Section 409A (i.e., because it
is provided more than 2- 1/2 months after the end of
the Corporation’s or the Terminated Officer’s taxable year containing the Termination Date and it exceeds the amount specified in Section 402(g) of the Code), then (i) such reimbursements shall be payable by the Corporation on or
before the last day of the Terminated Officer’s taxable year following the taxable year in which the expense was incurred; (ii) the expenses paid by the Corporation during any taxable year of the Terminated Officer will not affect the
expenses paid by the Corporation in another taxable year; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for another benefit. 

 

	 	(d)	Foreign Officers. If the Terminated Officer is domiciled outside of the United States on the Termination Date, at the discretion of the Committee, the Terminated
Officer shall receive the severance benefits required to be paid pursuant to the laws of the country in which the Terminated Officer is domiciled on the Termination Date in lieu of the benefits under paragraphs (a) through (c) above.

  

 6 

 2.6 Mode of Payment of Severance 

The Base and Bonus Compensation Portion of Severance shall be paid in accordance with the Corporation’s Corporate Officer pay
schedule. The Annual Incentive Portion of Severance, if any, shall be paid to the Terminated Officer in cash on the same date the active participants under the Annual Incentive Plan are paid and the Long-Term Incentive Portion of Severance, if any,
shall be paid to the Terminated Officer in the same form and on the same date the active participants under the applicable long term incentive plan are paid. 

Notwithstanding the foregoing, if a Terminated Officer is a “specified employee” (as defined in the Sara Lee Corporation Key
Employee Guide), the following rules shall apply: 
  

	 	(a)	 For purposes of applying the exception to Section 409A for short-term deferrals, each installment shall be treated as a separate
“payment” for purposes of Section 409A. Accordingly, any portion of the Severance Pay benefit paid (i) within
2- 1/2 months of the end of the Corporation’s
taxable year containing the Termination Date, or (ii) within
2- 1/2 months of the Terminated Officer’s
taxable year containing the Termination Date shall be exempt from Section 409A and shall be paid in accordance with the first paragraph of this Section 2.6. 

 

	 	(b)	To the extent benefits are not exempt from Section 409A under subparagraph (a) above, if the Terminated Officer’s Severance Pay benefit otherwise payable
in the first six months following the Termination Date is equal to or less than the lesser of the amounts described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and (2), such Severance Pay benefit shall be exempt from
Section 409A and shall be paid in accordance with the first paragraph of this Section 2.6. 

  

	 	(c)	Only to the extent a portion of the Terminated Officer’s Severance Pay benefit is not exempt from Section 409A pursuant to subparagraphs (a) and
(b) above, then, any such remaining Severance Pay benefit will not be paid to the Terminated Officer until the first payroll date of the seventh month following the Termination Date. Any deferred payments will be paid in a lump sum and shall be
equal to the portion of the Severance Pay benefit that exceeds the Section 409A limit, adjusted for interest calculated at the then-prevailing prime commercial lending rate published by the Wall Street Journal. Thereafter, the remainder of a
Terminated Officer’s Severance Pay benefit shall be payable in installments according to the Corporation’s Corporate Officer pay schedule. 

All payments hereunder shall be reduced by such amount as the Corporation may be required under all applicable federal, state, local or
other laws or regulations to withhold or pay over with respect to such payment. 
 2.7 Termination of Benefits 

All rights to receive or continue to receive Severance Pay and benefits pursuant to this Involuntary Termination Plan shall cease on the
earliest of: 
  

	 	(a)	the date the Terminated Officer begins receiving benefits under a Retirement Plan; 

 

	 	(b)	the date the Terminated Officer breaches any of the covenants in the Separation Agreement and Release, as defined in Section 2.8, including without limitation any
noncompetition, nonsolicitation, confidentiality or nondisparagement covenants contained therein; and 

  

 7 

	 	(c)	the date the Terminated Officer becomes reemployed by the Corporation. 

2.8 Separation Agreement 

No benefits under this Involuntary Termination Plan shall be payable to any Terminated Officer until the Terminated Officer and the
Corporation have executed a Separation Agreement and Release (in substantially the form approved by the Committee, with such revisions or modifications as shall be deemed necessary or appropriate by the Executive Vice President-Human Resources)
within 60 days of the Terminated Officer’s Termination Date, and the payment of benefits under this Involuntary Termination Plan shall be subject to the terms and conditions of such Separation Agreement and Release. 

2.9 Death of Terminated Officer 

In the event that the Terminated Officer shall die prior to the payment in full of (a) the Base and Bonus Compensation Portion of
Severance, (b) the Annual Incentive Portion of Severance, if any, or (c) the Long-Term Incentive Portion of Severance, if any, then the Terminated Officer’s estate or beneficiary, whichever is applicable, shall be paid the remaining
payments of such benefits. Such payments shall not affect or reduce any other death benefits that the Terminated Officer’s estate or beneficiary shall be entitled to receive under other plans of the Corporation. 

2.10 Administration of Plan 
  

	 	(a)	General. Except as specifically provided herein, the Involuntary Termination Plan shall be administered by the Committee. The Committee may delegate any
administrative duties, including, without limitation, duties with respect to the processing, review, investigation, approval and payment of severance benefits, to designated individuals or committees. The Committee shall be the
“administrator” and a “named fiduciary” under the Involuntary Termination Plan for purposes of ERISA. 

  

	 	(b)	Interpretations and Variations. The Committee shall have the duty and authority to interpret and construe, in its sole discretion, the terms of the Involuntary
Termination Plan in regard to all questions of eligibility, the status and rights of Officers, distributees and other persons under the Involuntary Termination Plan, and the manner, time and amount of any payment under the Involuntary Termination
Plan. The Committee or its representative shall decide any issues arising under this Involuntary Termination Plan, and the decision of the Committee shall be binding and conclusive on the Terminated Officer and the Corporation. Any variations from
the Involuntary Termination Plan may only be made by the Committee in its sole discretion. 

  

	 	(c)	Claims Procedure. Any Terminated Officer who believes that he or she is entitled to receive severance benefits under the Involuntary Termination Plan may file a
claim in writing with the Corporation. No later than ninety (90) days after the receipt of the claim, the Corporation shall either allow or deny the claim in writing, unless special circumstances require an extension of time for processing, in
which case a decision shall be rendered as soon as possible, but not later than one hundred eighty (180) days after receipt of the claim. A denial of a claim, in whole or in part, shall be written in a manner calculated to be understood by the
claimant and shall include: 

  

	 	(i)	the specific reason or reasons for the denial; 

  

 8 

	 	(ii)	specific reference to pertinent Involuntary Termination Plan provisions on which the denial is based; 

 

	 	(iii)	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is
necessary; and 

  

	 	(iv)	an explanation of the claim review procedure. 

A claimant whose claim is denied (or his or her duly authorized representative) may within 60 days after receipt of the denial of his or
her claim: 
  

	 	(v)	request a review upon written application to the Sara Lee Corporation ERISA Appeal Committee (“ERISA Appeal Committee”); 

 

	 	(vi)	review pertinent documents; and 

  

	 	(vii)	submit issues and comments in writing. 

The ERISA Appeal Committee shall notify the claimant of its decision on review within sixty (60) days after receipt of a request for
review unless special circumstances require an extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of a request for review. Notice of
the decision on review shall be in writing. The ERISA Appeal Committee’s decision on review shall be final and binding on any claimant or any successor in interest. If a Terminated Officer subsequently wishes to file a claim against the
Involuntary Termination Plan, any legal action must be filed within ninety (90) days of the ERISA Appeal Committee’s final decision. No action at law or in equity shall be brought to recover benefits under the Involuntary Termination Plan
until the appeal rights described herein have been exercised and the Involuntary Termination Plan benefits requested in such appeal have been denied in whole or in part. 

2.11 Miscellaneous 
  

	 	(a)	Amendment or Termination. Notwithstanding anything herein to the contrary, the Committee may amend, modify or terminate the Involuntary Termination Plan at any
time, which action may be effective prospectively or retroactively, as determined by the Committee; provided, however, that no amendment, modification or termination shall deprive any Terminated Officer of any payment or benefit payable pursuant to
the terms of a Separation Agreement and Release between the Corporation and such Terminated Officer, except as required by applicable law. Any amendment or termination of the Involuntary Termination Plan shall comply with the restrictions of Code
Section 409A to the extent applicable. Specifically, no amendment or termination of the Involuntary Termination Plan may accelerate a scheduled payment unless permitted by Treasury Regulations Section 1.409A-3(j)(4).

  

	 	(b)	Governing Law. This Involuntary Termination Plan shall be construed and enforced in accordance with ERISA and the Code and the laws of the State of Illinois
(without regard to any states’ conflict of laws principles) to the extent such laws are not preempted by ERISA or the Code. 

  

 9 

	 	(c)	Successors and Assigns. This Involuntary Termination Plan shall be binding upon and inure to the benefit of the Corporation and its successors and assigns and
shall be binding upon and inure to the benefit of a Terminated Officer and his or her legal representatives, heirs and assigns. No rights, obligations or liabilities of a Terminated Officer hereunder shall be assignable without the prior written
consent of the Corporation. 

 ARTICLE 3 

CHANGE IN CONTROL PLAN 

3.1 Statement of General Purpose 

It is intended by the Corporation that Officers shall be entitled to receive specified Change in Control Benefits upon termination of
employment under certain circumstances following a Change in Control. The objectives of this plan (the “Change in Control Plan”) are to: 
  

	 	(a)	assure the Corporation of continuity of management in the event of an actual, possible or threatened Change in Control of the Corporation; 

 

	 	(b)	induce Officers to remain in the employ of the Corporation; and 

  

	 	(c)	attract and retain well-qualified executives. 

3.2 Establishment and Term 

This Change in Control Plan will commence on the Effective Date and will continue in effect thereafter, subject to amendment or
termination by the Committee in accordance with Section 3.11(e) below. 
 3.3 Definitions 

Whenever used in this Change in Control Plan, capitalized terms used but not otherwise defined herein shall have the meanings set forth
below: 
  

	 	(a)	“Base And Bonus Compensation” means (i) the annual salary in effect for an Officer immediately prior to the Change in Control (or, if greater, any
annual salary in effect for such Officer at any time after the Change in Control) plus (ii) such Officer’s target annual incentive (as defined in the Annual Incentive Plan) for the year in which the Change in Control occurs (including any
deferred amounts). 

  

	 	(b)	“Beneficiary” means, with respect to an Officer, the persons or entities designated or deemed designated by such Officer pursuant to
Section 3.11(c). 

  

	 	(c)	“Cause” shall have the meaning set forth in Section 2.3 above. 

 

	 	(d)	“Change in Control” shall occur: 

  

	 	(i)	 upon the acquisition by any individual, entity or group, including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of
the Exchange Act (a 

  

 10 

	 	
“Person”), of beneficial ownership (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of 20% or more of the combined voting power of the then
outstanding capital stock of the Corporation that by its terms may be voted on all matters submitted to stockholders of the Corporation generally (such capital stock, “Voting Stock”); provided, however, that the following
acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Corporation (excluding any acquisition resulting from the exercise of a conversion or exchange privilege in respect of outstanding convertible or
exchangeable securities unless such outstanding convertible or exchangeable securities were acquired directly from the Corporation), (B) any acquisition by the Corporation, (C) any acquisition by an employee benefit plan (or related trust)
sponsored or maintained by the Corporation or any corporation controlled by the Corporation, or (D) any acquisition by any corporation pursuant to a reorganization, merger or consolidation involving the Corporation, if, immediately after such
reorganization, merger or consolidation, each of the conditions described in clauses (A), (B) and (C) of subsection (ii) below shall be satisfied; and provided further that, for purposes of clause (B) above, if
(1) any Person (other than the Corporation or any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any corporation controlled by the Corporation) shall become the beneficial owner of 20% or more of the
Voting Stock by reason of an acquisition by the Corporation and (2) such Person shall, after such acquisition by the Corporation, become the beneficial owner of any additional shares of the Voting Stock and such beneficial ownership is publicly
announced, then such additional beneficial ownership shall constitute a Change in Control; or 

  

	 	(ii)	upon the consummation of a reorganization, merger or consolidation of the Corporation, or a sale, lease, exchange or other transfer of all or substantially all of the
assets of the Corporation; excluding, however, any such reorganization, merger, consolidation, sale, lease, exchange or other transfer with respect to which, immediately after consummation of such transaction, (A) all or
substantially all of the beneficial owners of the Voting Stock of the Corporation outstanding immediately prior to such transaction continue to beneficially own, directly or indirectly (either by remaining outstanding or by being converted into
voting securities of the entity resulting from such transaction), more than 50% of the combined voting power of the voting securities of the entity resulting from such transaction (including, without limitation, the Corporation or an entity which as
a result of such transaction owns the Corporation or all or substantially all of the assets of the Corporation, directly or indirectly) (the “Resulting Entity”) outstanding immediately after such transaction, in substantially the same
proportions relative to each other as their ownership immediately prior to such transaction, and (B) no Person (other than any Person that beneficially owned, immediately prior to such reorganization, merger, consolidation, sale, lease,
exchange or other transfer, directly or indirectly, Voting Stock representing 20% or more of the combined voting power of the Corporation’s then outstanding securities) beneficially owns, directly or indirectly, 20% or more of the combined
voting power of the then outstanding securities of the Resulting Entity, and (C) at least a majority of the members of the board of directors of the entity resulting from such transaction were Continuing Directors of the Corporation at the time
of the execution of the initial agreement or action of the Board authorizing such reorganization, merger, consolidation, sale, lease, exchange or other transfer; or 

 

 11 

	 	(iii)	upon the consummation of a plan of complete liquidation or dissolution of the Corporation; or 

 

	 	(iv)	when those individuals who, immediately after the 2005 annual meeting of stockholders of the Corporation, constitute the Board (the “Continuing Directors”)
cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of the Corporation subsequent to the 2005 annual meeting of stockholders of the Corporation whose
election, or nomination for election by the Corporation’s stockholders, was approved by the vote of at least a majority of the Continuing Directors then comprising the Board (or by the nominating committee of the Board, if such committee is
comprised of Continuing Directors and has such authority) shall be deemed to have been a Continuing Director; and provided further, that no individual shall be deemed to be a Continuing Director if such individual initially was elected
as a director of the Corporation as a result of (A) an actual or threatened solicitation by a Person (other than the Board) made for the purpose of opposing a solicitation by the Board with respect to the election or removal of directors, or
(B) any other actual or threatened solicitation of proxies or consents by or on behalf of any Person (other than the Board). 

  

	 	(e)	“Change in Control Benefits” means the payment of severance compensation and benefits as provided in Section 3.4. 

 

	 	(f)	“Disability” has the meaning set forth in Section 2.3 above. 

 

	 	(g)	“Effective Date of Termination” means the date on which a Qualifying Termination occurs which triggers the payment of Change in Control Benefits
hereunder. 

  

	 	(h)	“Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 

 

	 	(i)	“Good Reason” means the occurrence of any one or more of the following (without the Officer’s written consent): 

 

	 	(i)	any failure to elect or reelect or otherwise to maintain the Officer in the office or the position, or a substantially equivalent office or position, of or with the
Corporation which the Officer held immediately prior to a Change in Control, or the removal of the Officer as a director of the Corporation (or any successor thereto) if the Officer shall have been a director of the Corporation immediately prior to
the Change in Control; 

  

	 	(ii)	the assignment to the Officer of duties materially inconsistent with the Officer’s authorities, duties, responsibilities or status, a materially adverse change in
the Officer’s reporting relationship, or any other action which results in a material diminution in the Officer’s authorities, duties, responsibilities, status or reporting relationship from those in effect immediately prior to the Change
in Control; 

  

	 	(iii)	the Corporation’s requiring the Officer to be based at an office location which is at least fifty (50) miles from his or her current office location, or the
Corporation’s requiring the Officer to travel on business to a substantially greater degree than required prior to the Change in Control; 

  

 12 

	 	(iv)	a material reduction in the Officer’s annual base salary as in effect immediately prior to the Change in Control (or, if greater, any annual base salary in effect
for such Officer at any time after the Change in Control); 

  

	 	(v)	a material reduction in the Officer’s level of participation in any of the Corporation’s annual and/or long-term incentive compensation plans, or employee
benefit or retirement plans, policies, practices or arrangements in which the Officer participates from the levels in place immediately prior to the Change in Control; 

 

	 	(vi)	the failure by the Corporation to obtain a satisfactory agreement from any successor to the Corporation to assume and agree to perform this Change in Control Plan;

  

	 	(vii)	any termination of the Officer’s employment by the Corporation that is not effected pursuant to a Notice of Termination; and 

 

	 	(viii)	any action or event described in clause (i), (ii), (iii), (iv) or (v) above taken by the Corporation prior to the Change in Control at the request of the
other party to the Change in Control transaction or otherwise in contemplation of the closing of the Change in Control transaction. 

The existence of Good Reason shall not be affected by an Officer’s temporary incapacity due to physical or mental illness not
constituting a Disability. An Officer’s Retirement shall constitute a waiver of his or her rights with respect to any circumstance constituting Good Reason. An Officer’s continued employment shall not constitute a waiver of his or her
rights with respect to any circumstances which may constitute Good Reason; provided, however, that an Officer may not rely on any particular action or event described in clause (i) through (viii) above as a basis for terminating his or her
employment for Good Reason unless he or she delivers a Notice of Termination based on that action or event within 90 days after its occurrence and the Corporation has failed to correct the circumstances cited by the Officer as constituting Good
Reason within 30 days of receiving the Notice of Termination. 
 Any determination by the Chief Executive Officer that he has
Good Reason to terminate his employment shall be binding on the Corporation, unless he or she is at the time serving as the Chief Executive Officer of, and reports directly to the board of directors (or equivalent governing body) of, the ultimate
parent of the corporate group which includes the Corporation (or its successor) following the Change in Control. 
  

	 	(j)	“Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Change in Control Plan relied upon,
and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of an Officer’s employment under the provision so indicated. 

 

	 	(k)	“Qualifying Termination” means either of the following events: 

 

	 	(i)	any termination of an Officer’s employment by the Corporation for reasons other than for Cause within six (6) months preceding or within two (2) years
following a Change in Control (regardless of whether or not a Notice of Termination is delivered to such Officer by the Corporation); or 

  

 13 

	 	(ii)	a voluntary termination by an Officer for Good Reason within two (2) years following a Change in Control pursuant to a Notice of Termination delivered to the
Corporation by such Officer. 

  

	 	(l)	“Retirement” has the meaning set forth in Section 2.3 above. 

3.4 Change in Control Benefits 
  

	 	(a)	Right to Change in Control Benefits. Each Officer shall be entitled to receive from the Corporation the Change in Control Benefits, as described in
Section 3.4(b), if (i) there has been a Change in Control and (ii) a Qualifying Termination of such Officer has occurred. Notwithstanding the foregoing, an Officer shall not be entitled to Change in Control Benefits if he or she is
terminated for Cause, or if his or her employment with the Corporation ends due to death, Disability or Retirement or due to a voluntary termination of employment by such Officer without Good Reason. 

 

	 	(b)	Description of Change in Control Benefits. 

  

	 	(i)	Change in Control Benefits. In the event an Officer becomes entitled to receive Change in Control Benefits, as provided in Section 3.4(a), the Corporation
shall pay to such Officer and provide such Officer with the following: 

  

	 	(A)	 A lump sum cash amount equal to either (1) 2- 1
/2 times Base and Bonus Compensation in the case of the Chief Executive Officer or any Executive Vice President or (2) 2 times Base and Bonus
Compensation for any other Officer. 

  

	 	(B)	A lump sum cash amount equal to the pro-rata amount (from the first day of the current fiscal year of the Corporation to the Officer’s Effective Date of
Termination) of the annual incentive, if any, payable under the annual incentive plan of the Corporation in effect with respect to the fiscal year in which the termination occurs using actual financial or other quantitative bonus objectives and
assuming a “target” level of performance with respect to any Individual Objectives portion of such incentive. 

  

	 	(C)	A lump sum cash amount equal to such Officer’s prorated long term incentive (as determined in accordance with Section 2.5(a)(ii)(B)).

  

	 	(D)	A lump sum cash amount equal to such Officer’s unpaid base salary and unused and accrued vacation through the Effective Date of Termination.

  

	 	(E)	 If the aggregate benefits accrued by the Officer as of the Effective Date of Termination under the savings and retirement plans sponsored by the
Corporation are not fully vested pursuant to the terms of the applicable plan, the difference between the benefits the Officer is entitled to receive under such plans and the benefits he would have received had he been fully vested will be provided
to the Officer under the Sara Lee Corporation Supplemental Executive Retirement Plan. In addition, for purposes of determining the Officer’s benefits under the Sara Lee Corporation Supplemental Executive Retirement Plan and the Officer’s

  

 14 

	 	
right to post-retirement medical benefits under the Sara Lee Corporation Retiree Medical Plan, the Officer shall be assumed to have continued in employment following the Effective Date of
Termination for 2- 1/2 years in the case of the
Chief Executive Officer or any Executive Vice President or 2 years in the case of any other Officer (i.e.,
2- 1/2 or 2 additional years of age and service
credits shall be added) subject, in each such case, to the maximum service periods under the Sara Lee Corporation Executive Retirement Plan and/or the Sara Lee Corporation Retiree Medical Plan, as applicable; provided, however, that for purposes of
determining “final average pay” under the Sara Lee Corporation Supplemental Executive Retirement Plan, the Officer’s employment shall be deemed to have continued for
2- 1/2 or 2 years following the Effective Date of
Termination with the annualized base salary rate and the annual incentive award used in the calculation of Base and Bonus Compensation. However, the Officer will not be eligible to begin receiving any retirement benefits under any such plans until
the later of (1) the third anniversary of the Effective Date of Termination in the case of the Chief Executive Officer or any Executive Vice President or the second anniversary of the Effective Date of Termination in the case of any other
Officer or (2) the date he or she would otherwise be eligible to begin receiving benefits under such plans. 

  

	 	(F)	 A continuation of the health insurance, life insurance, personal accident insurance, travel accident insurance and accidental death and dismemberment
insurance coverages available to similarly situated Officers on the Effective Date of Termination for a period of either
(1) 2- 1/2 years after the Effective Date of
Termination in the case of the Chief Executive Officer or any Executive Vice President or (2) 2 years after the Effective Date of Termination in the case of any other Officer. These benefits shall be provided to such Officer at the same premium
cost, and at the same coverage level, as in effect as of such Officer’s Effective Date of Termination. However, in the event the premium cost and/or level of coverage shall change for all employees with respect to supplemental benefits, the
cost and/or coverage level, likewise, shall change for such Officer in a corresponding manner. In the event the
2 1/2— or 2- year period (as appropriate)
exceeds the period during which the Officer is eligible for COBRA continuation of his or her health insurance coverage, the Corporation shall pay the subsidy during the COBRA period and then shall pay the remainder of the subsidy to the Officer in a
lump sum payment in the nineteenth month following the Effective Date of Termination. The continuation of all coverages described in this clause (i)(F) shall be discontinued prior to the end of the
2 1/2— or 2- year period (as appropriate) in
the event such Officer has available substantially similar coverages at a comparable cost from a subsequent employer, as determined by the Committee. 

 

	 	(G)	 In the case of the Chief Executive Officer, any Executive Vice President or any Senior Vice President, the Officer shall also continue to receive
financial planning and counseling services consistent with past practice at the Corporation’s sole cost and expense during such
2 1/2- or 2- year period (as applicable).
Notwithstanding the foregoing, to the extent that 

  

 15 

	 	
any financial planning assistance or any other reimbursements are subject to Section 409A (i.e., because it is provided more than
2- 1/2 months after the end of the
Corporation’s or the Terminated Officer’s taxable year containing the Termination Date and it exceeds the amount specified in Section 402(g) of the Code) then (1) such reimbursements shall be payable by the Corporation on or
before the last day of the Officer’s taxable year following the taxable year in which the expense was incurred; (2) the expenses paid by the Corporation during any taxable year of the Officer will not affect the expenses paid by the
Corporation in another taxable year; and (3) the right to reimbursement shall not be subject to liquidation or exchange for another benefit. 

  

	 	(H)	The Officer shall be permitted to continue using the car provided to him or her by the Corporation in accordance with the terms of the Corporation’s Executive Car
Program as it exists on the date of his Qualifying Termination. The Officer shall have the option to purchase such automobile at any time during or upon the conclusion of 30-day period following the date of Qualifying Termination pursuant to then
current terms of the Corporation’s Executive Car Program. 

  

	 	(I)	Stock Options and Restricted Shares. 

  

	 	(1)	All options to purchase the Corporation’s common stock held by the Officer that were issued prior to the Effective Date shall automatically vest upon a Change in
Control and all restrictions and/or forfeiture conditions on any restricted shares or restricted share units held by the Officer shall automatically lapse upon a Change in Control. All other options to purchase the Corporation’s common stock
held by the Officer shall automatically vest upon the Officer’s Qualifying Termination and all restrictions and/or forfeiture conditions on all other restricted shares or restricted share units held by the Officer shall automatically lapse upon
such Qualifying Termination; provided, however, that if the transaction giving rise to the Change in Control is an offer to purchase all of the Corporation’s outstanding voting stock for cash, then such options shall automatically vest and the
forfeitures conditions on the restricted shares or restricted share units shall lapse immediately prior to the Change in Control. 

  

	 	(2)	For purposes of each of the Officer’s stock options that is exercisable on the Effective Date of Termination, the Officer’s termination of employment shall be
disregarded, and each such option shall continue to be exercisable as though the Officer’s employment had continued through the last day on which such option would be exercisable in the absence of such employment termination.

  

	 	(J)	This Section 3.4(b)(i) shall be applicable notwithstanding any conflicting or contrary term of any plan, arrangement or agreement. 

 

 16 

	 	(ii)	Outplacement Services. The Corporation shall, at its sole cost and expense, provide the Officer with outplacement services suitable to the Officer’s
position for a period of 1 year or, if earlier, until the first acceptance by the Officer of an offer of employment. 

  

	 	(c)	Termination for Disability. Following a Change in Control, if an Officer’s employment is terminated due to Disability, such Officer shall receive his or her
base salary through the Effective Date of Termination, at which time such Officer’s benefits shall be determined in accordance with the Corporation’s disability, retirement, insurance and other applicable plans and programs then in effect.
If such Officer’s employment is terminated due to Disability, such Officer shall not be entitled to Change in Control Benefits. 

  

	 	(d)	Termination for Retirement or Death. Following a Change in Control, if an Officer’s employment is terminated by reason of his Retirement or death, such
Officer’s benefits shall be determined in accordance with the Corporation’s retirement, survivor’s benefits, insurance, and other applicable programs of the Corporation then in effect. In the event such Officer’s employment is
terminated by reason of his or her Retirement or death, such Officer shall not be entitled to Change in Control Benefits. 

  

	 	(e)	Termination for Cause, or Other Than for Good Reason or Retirement. Following a Change in Control, if an Officer’s employment is terminated either
(i) by the Corporation for Cause, or (ii) by such Officer (other than for Retirement or Good Reason), the Corporation shall pay such Officer his full base salary and accrued vacation through the Effective Date of Termination, at the rate
then in effect, plus all other amounts to which such Officer is entitled under any compensation plans of the Corporation, at the time such payments are due, and the Corporation shall have no further obligations to such Officer under this Change in
Control Plan. 

  

	 	(f)	Deferred Compensation. All amounts previously deferred by or accrued to the benefit of the Officer under any nonqualified deferred compensation plan sponsored by
the Corporation (including, without limitation, any vested amounts deferred under incentive plans), together with any accrued earnings thereon, shall be paid in accordance with the terms of such plan. 

 

	 	(g)	Notice of Termination. Any termination of employment by (i) the Corporation or (ii) by an Officer for Good Reason shall be communicated by a Notice of
Termination. 

 3.5 Form and timing for Change in Control Benefits 

 

	 	(a)	Form and Timing of Change in Control Benefits. Subject to Section 3.6 below, the Change in Control Benefits described in Sections 3.4(b)(i)(A), (B),
(C) and (D) of this Article shall be paid in cash to the Officer in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond 20 days from such date. Notwithstanding the foregoing, in the
event that an Officer experienced a Qualifying Termination under Section 3.3(k)(i) within 6 months prior to the Change in Control and such Officer is already receiving (or scheduled to receive) benefits under the Involuntary Termination Plan,
only the portion of the benefits not otherwise payable under the Involuntary Termination Plan shall be paid in a lump sum under this Change in Control Plan. 

  

 17 

	 	(b)	Withholding of Taxes. The Corporation shall be entitled to withhold from any amounts payable under this Change in Control Plan all taxes as legally shall be
required (including, without limitation, any United States federal taxes and any other state, city or local taxes). 

3.6 Reduction in Total Payments 
  

	 	(a)	Reduction to Maximize After-Tax Benefits. In the event that an Officer becomes entitled to Change in Control Benefits or any other payment or benefit under this
Change in Control Plan, or under any other agreement with or plan or policy of the Corporation (in the aggregate, “Total Payments”), if all or any part of the Total Payments will be subject to the tax (the “Excise Tax”) imposed
by Section 4999 of the Code (or any similar tax that may hereafter be imposed) and reducing the Total Payments would result in greater Change in Control Benefits (after taking into consideration the payment of all income and excise taxes that
would be owing as the result of the Total Payments) the Corporation shall reduce the Total Payments by the amount necessary to maximize the Change in Control Benefits for such Officer determined on an after-tax basis in the following order:
(i) any cash severance or other cash amount payable to the Officer hereunder, and (ii) any continued benefit valued as a “parachute payment” for purposes of Section 280G of the Code. 

For purposes of determining the amount of an Officer’s Change in Control Benefits on an after-tax basis, the Officer shall be deemed
to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Total Payments are to be made, and state and local income taxes at the highest marginal rate of taxation in the state and locality
of such Officer’s residence on the Effective Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

 

	 	(b)	Subsequent Recalculation. In the event the Internal Revenue Service adjusts any item included in the Corporation’s computations under Section 3.6(a) of
this Article so that such Officer did not receive the full net benefit intended under the provisions of this Section 3.6, the Corporation shall reimburse such Officer by the end of the calendar year following the year of such adjustment for the
full amount necessary to make such Officer whole, plus a market rate of interest, as determined by the Committee. 

3.7 The Corporation’s Payment Obligation 
  

	 	(a)	Payment Obligation Absolute. The Corporation’s obligation to make the payments and the arrangements provided for herein shall be absolute and unconditional,
and shall not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Corporation may have against such Officer or anyone else. All amounts payable by the Corporation
hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Corporation shall be final, and the Corporation shall not seek to recover all or any part of such payment from such Officer or from whomsoever may be
entitled thereto, for any reason except as provided in Section 3.6(b) above. 

 No Officer shall be obligated
to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Change in Control Plan, and the obtaining of any such other employment shall in no event result in any reduction of the Corporation’s
obligations to make the payments and arrangements required to be made under this Change in Control Plan, except to the extent provided in Section 3.4(b)(i)(F). 

 

 18 

	 	(b)	Contractual Right to Benefits. This Change in Control Plan establishes and vests in each of the Officers a contractual right to the benefits to which he or she
is entitled hereunder. However, nothing herein contained shall require or be deemed to prohibit the Corporation to segregate, earmark or otherwise set aside any funds or other assets, in trust or otherwise, to provide for any payments to be made or
required hereunder. 

 3.8 Separation Agreement 

No benefits under this Change in Control Plan shall be payable to any Terminated Officer until the Terminated Officer and the Corporation
have executed a Separation Agreement and Release (in substantially the form approved by the Committee or its Chairman, with such revisions or modifications as it or they shall deem necessary or appropriate) within 60 days from the Terminated
Officer’s Termination Date and the payment of benefits under this Change in Control Plan shall be subject to the terms and conditions of such Separation Agreement and Release. 

3.9 Legal Remedies 
  

	 	(a)	Payment of Legal Fees. To the extent permitted by law, the Corporation shall pay all reasonable legal fees, costs of litigation or arbitration, prejudgment or
pre-award interest, and other expenses incurred in good faith by an Officer as a result of the Corporation’s refusal to provide Change in Control Benefits, or as a result of the Corporation’s contesting the validity, enforceability or
interpretation of this Change in Control Plan, or as a result of any conflict (including conflicts related to the calculation of payments) between the Corporation and such Officer. 

 

	 	(b)	Arbitration. Except to the extent a Terminated Officer files a claim under Section 3.10(c) below, any dispute or controversy arising under or in connection
with this Change in Control Plan shall be settled by arbitration, conducted before a panel of 3 arbitrators sitting in a location selected by the Officer involved in such dispute or controversy within 50 miles from the location of his or her
employment with the Corporation, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the award of the arbitrator in any court having proper jurisdiction. All expenses of such arbitration,
including the fees and expenses of the counsel for such Officer, shall be borne by the Corporation. 

 3.10
Administration of Plan 
  

	 	(a)	General. Except as specifically provided herein, the Change in Control Plan shall be administered by the Committee. The Committee may delegate any administrative
duties, including, without limitation, duties with respect to the processing, review, investigation, approval and payment of severance benefits, to designated individuals or committees. The Committee shall be the “administrator” and a
“named fiduciary” under the Change in Control Plan for purposes of ERISA. 

  

	 	(b)	 Interpretations And Variations. The Committee shall have the duty and authority to interpret and construe, in its sole discretion, the terms of
the Change in Control Plan in regard to all questions of eligibility, the status and rights of Officers, distributees and other persons under the Change in Control Plan, and the manner, time and amount of any

  

 19 

	 	
payment under the Change in Control Plan. The Committee or its representative shall decide any issues arising under this Change in Control Plan, and the decision of the Committee shall be binding
and conclusive on the Terminated Officer and the Corporation. Any variations from the Change in Control Plan may only be made by the Committee in its sole discretion. 

 

	 	(c)	Claims Procedure. Any Terminated Officer who believes that he or she is entitled to receive severance benefits under the Change in Control Plan may, but is not
required to, file a claim in writing with the Corporation. In the event a Terminated Officer files such a claim, the claims procedure outlined in Section 2.10(c) above shall apply and Section 3.9(b) above shall not apply until such claim
procedure has been exhausted. 

 3.11 Miscellaneous 

 

	 	(a)	Successors to the Corporation. The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) of all
or substantially all of the business and/or assets of the Corporation to expressly assume and agree to perform the Corporation’s obligations under this Change in Control Plan in the same manner and to the same extent that the Corporation would
be required to perform them if no such succession had taken place. The date on which any such succession becomes effective shall be deemed to be the date of the Change in Control. 

 

	 	(b)	Assignment by an Officer. This Change in Control Plan shall inure to the benefit of and be enforceable by each Officer’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If an Officer dies while any amount would still be payable to him or her hereunder had he or she continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Change in Control Plan to such Officer’s Beneficiary. If such Officer has not named a Beneficiary, then such amounts shall be paid to such Officer’s devisee, legatee or other
designee, or if there is no such designee, to such Officer’s estate. 

  

	 	(c)	Beneficiaries. An Officer may designate one or more persons or entities as the primary and/or contingent Beneficiaries of any Change in Control Benefits owing to
such Officer under this Change in Control Plan. Such designation must be in the form of a signed writing reasonably acceptable to the Committee. Such Officer may make or change such designations at any time. 

 

	 	(d)	Governing Law. This Plan shall be construed and enforced in accordance with ERISA and the Code and the laws of the State of Illinois (without regard to any
states’ conflict of laws principles) to the extent such laws are not preempted by ERISA or the Code. 

  

	 	(e)	 Modification. No provision of this Change in Control Plan may be amended, terminated or waived unless such amendment, termination or waiver is
agreed to in writing and signed by each Officer entitled to Change in Control Benefits hereunder and by an authorized member of the Committee, or by the respective parties’ legal representatives and successors. Notwithstanding the foregoing,
the Committee shall have the right to amend or terminate this Change in Control Plan unilaterally in order to comply with applicable law. In addition, the Committee shall have the right to amend or terminate this Change in Control Plan unilaterally
for any reason by delivering written notice to each of the officers entitled to benefits hereunder; provided, that any such amendment, or termination shall only become effective upon the first anniversary of the delivery of such

  

 20 

	 	
notice to the Officers or such later date as the Committee may specify in such notice (such first anniversary or later date being referred to as the “Applicable Date”). Notwithstanding
the preceding sentence, no such unilateral amendment or termination shall become effective if a Change in Control occurs before the Applicable Date. 

  

	 	(f)	No Duplication. An Officer who receives the Change in Control Benefits specified in Article 3 shall not be entitled to receive payments or benefits under the
Involuntary Termination Plan set forth in Article 2 above. 

  

	 	(g)	Termination. This Change in Control Plan shall automatically terminate two years after the occurrence of a Change in Control. 

Last amendment: December 31, 2009 
  

 21 

 FIRST AMENDMENT OF THE 

SARA LEE CORPORATION 

SEVERANCE PLANS FOR CORPORATE OFFICERS 

(Effective June 24, 2009) 

WHEREAS, Sara Lee Corporation (the “Company”) maintains the Sara Lee Corporation Severance Plans for Corporate Officers (the
“Plan”), which Plan was amended and restated in its entirety effective as of January 1, 2009; and 
 WHEREAS,
amendment thereof the Plan is now considered desirable; 
 NOW, THEREFORE, pursuant to the authority reserved to the
Compensation and Employee Benefits Committee of the Company under subsection 2.11(a) of the Plan, the Plan is hereby amended, effective July 1, 2009, by substituting the following for the second , third, and fourth sentences of subsection
2.5(b) of the Plan: 
 “If a Terminated Officer eligible for severance under Section 2.5(a) elects COBRA continuation coverage, the
Corporation will subsidize the premium for such continuation coverage during the shorter of: (i) three months, or (ii) the Severance Period, so that the amount of such premium payable by such Terminated Officer shall equal the amount
payable by an active Officer of the Corporation for comparable coverage. Notwithstanding the foregoing, any Terminated Officer who was: (i) terminated in accordance with ‘Project Accelerate’ who received notice that the Terminated
Officer would receive subsidized COBRA coverage during the Terminated Officer’s entire Severance Period; or (ii) terminated in connection with the Corporation’s Business Process Outsourcing activities on or before June 30, 2010
shall receive subsidized COBRA coverage for the Severance Period. The period during which a Terminated Officer shall be charged active Officer rates for COBRA coverage shall be known as the ‘subsidized period.’ In the event the subsidized
period exceeds the period during which the Terminated Officer is eligible for COBRA continuation coverage, the Corporation shall pay the subsidy during the COBRA period and then shall pay the remainder of the subsidy to the Terminated Officer in a
lump sum payment in the nineteenth month following the Termination Date; provided, however, that if the COBRA period terminates prior to the end of eighteenth month following the Termination Date in accordance with the COBRA continuation of coverage
provisions under the Corporation’s group health plan, then no such lump sum payment shall be made. The premium charged for COBRA continuation coverage after the end of the subsidized period shall be entirely at the Terminated Officer’s
expense and may be different from the premium charged during the subsidized period. A Terminated Officer’s subsidized period shall count toward the period for which the Corporation must offer COBRA coverage to the Terminated Officer.”

*            *          
  * 

 SECOND AMENDMENT OF THE 

SARA LEE CORPORATION 

SEVERANCE PLANS FOR CORPORATE OFFICERS 

(Effective December 31, 2009) 

WHEREAS, Sara Lee Corporation (the “Company”) maintains the Sara Lee Corporation Severance Plans for Corporate Officers (the
“Plan”), which Plan was amended and restated in its entirety effective as of January 1, 2009; and 
 WHEREAS,
amendment thereof the Plan is now considered desirable; 
 NOW, THEREFORE, pursuant to the authority reserved to the
Compensation and Employee Benefits Committee of the Company under subsection 2.11(a) of the Plan, the Plan is hereby amended, effective December 31, 2009, as follows: 

 

	1.	By adding the following after the end of the first sentence of Section 3.3(g) of the Plan: 

“For the avoidance of doubt, the determination of the date of the resignation or discharge giving rise to the Qualifying Termination
shall be made consistent with the definition of “separation from service” in Code Section 409A(a)(2)(A)(i) and any IRS guidance issued thereunder.”; 
  

	2.	By removing the phrase “lump sum” from where it appears in Sections 3.4(b)(i)(A), (B) and (C) of the Plan; 

 

	3.	By substituting the following for the last sentence of Section 3.4(b)(i)(E) of the Plan: 

“However, the Officer will not be eligible to begin receiving any retirement benefits under any such plans until the later of
(1) the third anniversary of the Effective Date of Termination in the case of the Chief Executive Officer or any Executive Vice President or the second anniversary of the Effective Date of Termination in the case of any other Officer or
(2) the date he or she would otherwise be eligible to begin receiving benefits under such plans; provided that this sentence shall only apply to the extent such change in time of payment is permitted under Section 409A pursuant to an
exception or similar provision thereof.”; 
  

	4.	By substituting the following for Section 3.5(a) of the Plan: 

“Form and Timing of Change in Control Benefits. Subject to Section 3.6 below, the Change in Control Benefits described in
Sections 3.4(b)(i)(A), (B) and (C) of this Article shall be paid in accordance with Section 2.6 above. For the avoidance of doubt, the Change in Control Benefits described in (i) Section 3.4(b)(i)(A) shall be considered the
“Base and Bonus Compensation Portion of Severance,” which shall be payable in equal monthly installments and the “Severance Period” with respect thereto shall be considered to be the period of 2 -1/2 years (in the case of the
Chief Executive Officer or any Executive Vice President) or 2 years (in the case of any other Officer) after the Effective Date of Termination of the applicable Officer, (ii) Section 3.4(b)(i)(B) shall be considered the “Annual
Incentive Portion of Severance,” and (iii) Section 3.4(b)(i)(C) 

 
shall be considered the “Long-Term Incentive Portion of Severance.” In the event that the Officer shall die prior to the payment in full of any Change in Control Benefits described in
Sections 3.4(b)(i)(A), (B) and (C) of this Article, then the Officer’s estate or beneficiary, whichever is applicable, shall be paid the remaining payments of such benefits. Such payments shall not affect or reduce any other death
benefits that the Officer’s estate or beneficiary shall be entitled to receive under other plans of the Corporation. 

Subject to Section 3.6 below, the Change in Control Benefits described in Sections 3.4(b)(i)(D) of this Article shall be paid in cash
to the Officer in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond 20 days from such date.”; and 
  

	5.	By adding the following after the end of the first sentence of Section 3.9(a) of the Plan: 

“For the avoidance of doubt, to the extent that any reimbursements for fees, costs, interest and other expenses described in the
immediately preceding sentence (or any other provision of the Plan) are subject to Section 409A, then (i) any reimbursements shall be payable by the Corporation on or before the last day of the Officer’s taxable year following the
taxable year in which the fees, costs, interest and other expenses were incurred; (ii) the fees, costs, interest and other expenses paid by the Corporation during any taxable year of the Officer will not affect the fees, costs, interest and
other expenses paid by the Corporation in another taxable year; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for another benefit.” 

*            *          
  *

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