Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
  

 
  

$300,000,000 
 Patrick
Industries, Inc. 
 7.50% Senior Notes due 2027 

PURCHASE AGREEMENT 
 September 12,
2019 
  
  

 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 SECTION 1. Representations and Warranties
	  	 	2	 
		
	 SECTION 2. Sale and Delivery to Initial Purchasers; Closing; Agreements to Sell, Purchase and
Resell
	  	 	15	 
		
	 SECTION 3. Covenants of the Company and the Guarantors
	  	 	17	 
		
	 SECTION 4. Payment of Expenses
	  	 	21	 
		
	 SECTION 5. Conditions of Initial Purchasers’ Obligations
	  	 	21	 
		
	 SECTION 6. Indemnification
	  	 	24	 
		
	 SECTION 7. Contribution
	  	 	27	 
		
	 SECTION 8. Representations, Warranties and Agreements to Survive Delivery
	  	 	28	 
		
	 SECTION 9. Termination of Agreement
	  	 	29	 
		
	 SECTION 10. Default by One or More of the Initial Purchasers
	  	 	30	 
		
	 SECTION 11. Notices
	  	 	30	 
		
	 SECTION 12. Parties
	  	 	31	 
		
	 SECTION 13. GOVERNING LAW AND TIME
	  	 	31	 
		
	 SECTION 14. Effect of Headings
	  	 	31	 
		
	 SECTION 15. Definitions
	  	 	31	 
		
	 SECTION 16. Permitted Free Writing Documents
	  	 	33	 
		
	 SECTION 17. Absence of Fiduciary Relationship
	  	 	34	 
		
	 SECTION 18. Research Analyst Independence and Other Activities of the Initial Purchasers
	  	 	34	 
		
	 SECTION 19. Waiver of Jury Trial
	  	 	35	 
		
	 SECTION 20. Consent to Jurisdiction
	  	 	35	 

  
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 EXHIBITS 

Exhibit A – Initial Purchasers 
 Exhibit B –
Guarantors 
 Exhibit C – Subsidiaries of the Company 

Exhibit D – Form of Pricing Term Sheet 
 Exhibit E
– Amendments; Issuer Free Writing Documents 
 Exhibit F-1 – Form of Opinion of Company Counsel 

Exhibit F-2 – Form of Opinion of Indiana Counsel 

Exhibit F-3 – Form of Opinion of Arizona Counsel 

Exhibit F-4 – Form of Opinion of Nevada Counsel 

Exhibit F-5 – Form of Opinion of Wisconsin Counsel 

  
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 $300,000,000 

PATRICK INDUSTRIES, INC. 
 7.50%
Senior Notes due 2027 
 PURCHASE AGREEMENT 

September 12, 2019 
 Wells Fargo
Securities, LLC 
 As Representative of the several Initial Purchasers 

c/o Wells Fargo Securities, LLC 
 301 S. College Street

 Charlotte, North Carolina 28288 
 Ladies and Gentlemen: 

Patrick Industries, Inc., an Indiana corporation (the “Company”), confirms its agreement with Wells Fargo
Securities, LLC (“Wells Fargo”) and each of the other Initial Purchasers named on Exhibit A hereto (collectively, the “Initial Purchasers,” which term shall also include any person substituted for an
Initial Purchaser pursuant to Section 10 hereof), for whom Wells Fargo is acting as representative (in such capacity, the “Representative”), with respect to the issue and sale by the Company and the purchase by the Initial
Purchasers, acting severally and not jointly, of $300,000,000 in aggregate principal amount of the Company’s 7.50% Senior Notes due 2027 (the “Securities”). The Securities will be issued pursuant to an Indenture to be dated as
of September 17, 2019 (the “Indenture”) among the Company, the Guarantors referred to below, and U.S. Bank National Association, as trustee (the “Trustee”). The Company’s obligations under the Securities,
including the due and punctual payment of interest on the Securities, will be irrevocably and unconditionally guaranteed on a senior unsecured basis (the “Guarantees”) by the guarantors named on Exhibit B hereto (together, the
“Guarantors”). As used herein, the term “Securities” shall include the Guarantees, unless the context otherwise requires. Certain terms used in this purchase agreement (this “Agreement”) are defined in
Section 15 hereof. 
 The Securities will be offered and sold to the Initial Purchasers without registration under the 1933 Act, in
reliance on the exemption provided by Section 4(a)(2) of the 1933 Act. The Company and the Guarantors have prepared a preliminary offering memorandum, dated September 9, 2019 (the “Preliminary Offering Memorandum”), a
pricing term sheet substantially in the form attached hereto as Exhibit D (the “Pricing Term Sheet”) setting forth the terms of the Securities omitted from the Preliminary Offering Memorandum and an offering memorandum, dated
September 12, 2019 (the “Offering Memorandum”), setting forth information regarding the Company and the Securities. The Preliminary Offering Memorandum, as supplemented and amended as of the Applicable Time, together with the
Pricing Term Sheet and any of the documents listed on Exhibit E hereto are collectively referred to as the “General Disclosure Package.” The Company and the Guarantors hereby confirm that they have authorized the use of the
General Disclosure Package and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers. 

  
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 Concurrently with the offer and sale of the Securities, the Company intends to enter into a
new Third Amended and Restated Credit Agreement, to be dated as of the Closing Date, among the Company, as Borrower, the Guarantors, the lenders from time to time party thereto, and Wells Fargo Bank, National Association, as administrative agent
(the “Senior Credit Facility”). The proceeds of the initial borrowings under the Senior Credit Facility, together with the net proceeds of the offering of Securities, will be used to repay outstanding borrowings under the Company’s
existing Second Amended and Restated Credit Agreement, as described in the General Disclosure Package. 
 You have advised the Company that
you will offer and resell (the “Exempt Resales”) the Securities purchased by you hereunder on the terms set forth in each of the General Disclosure Package and the Offering Memorandum, as amended or supplemented, solely (i) to
persons whom you reasonably believe to be “qualified institutional buyers” as defined in Rule 144A under the 1933 Act (“QIBs”) and (ii) outside the United States to non-U.S.
persons in compliance with Regulation S under the 1933 Act (“Regulation S”). Those persons specified in clauses (i) and (ii) of this paragraph are referred to herein as “Eligible Purchasers.” 

SECTION 1. Representations and Warranties. 

(a)    Representations and Warranties by the Company and the Guarantors. The Company and each Guarantor,
jointly and severally, represent and warrant to each Initial Purchaser as of the date hereof, as of the Applicable Time, and as of the Closing Date referred to in Section 2(b) hereof, and agree with each Initial Purchaser, as follows: 

(1)    Rule 144A Information. Each of the Preliminary Offering Memorandum, the General Disclosure
Package and the Offering Memorandum, each as of its respective date, contains all the information required by Rule 144A(d)(4) under the 1933 Act. 

(2)    No Stop Orders. The Preliminary Offering Memorandum, the General Disclosure Package and the
Offering Memorandum have been prepared by the Company and the Guarantors for use by the Initial Purchasers in connection with the Exempt Resales. No order or decree preventing the use of the Preliminary Offering Memorandum, the General Disclosure
Package or the Offering Memorandum, or any order asserting that the transactions contemplated by this Agreement are subject to the registration requirements of the 1933 Act has been issued, and no proceeding for that purpose has commenced or is
pending or, to the knowledge of the Company or any of the Guarantors is contemplated. 
 (3)    No
Material Misstatement or Omission. (i) The Preliminary Offering Memorandum, as of the date thereof, did not include any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, (ii) the General Disclosure Package, as of the Applicable Time, did not include any untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not misleading, (iii) the Offering Memorandum, as of the date thereof, did not and, at the Closing Date, will not include any untrue statement of a material
fact or omit to state a material fact necessary to 

  
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make the statements therein, in the light of the circumstances under which they were made, not misleading and (iv) each Issuer Free Writing Document (as defined below), when taken together
with the General Disclosure Package, did not, and, at the Closing Date, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading. 
 The representations and warranties in the preceding paragraph do not apply to statements
in or omissions from the Preliminary Offering Memorandum, the Offering Memorandum, the General Disclosure Package, any Issuer Free Writing Document or any amendment or supplement to any of the foregoing made in reliance upon and in conformity with
written information furnished to the Company by or on behalf of any Initial Purchaser through the Representative expressly for use therein, it being understood and agreed that the only such information furnished by the Initial Purchasers as
aforesaid consists of the information described as such in Section 6(b) hereof. 

(4)    Reporting Compliance. The Company is subject to, and is in full compliance in all
material respects with, the reporting requirements of Section 13 and Section 15(d), as applicable, of the 1934 Act. 

(5)    Independent Accountants. (i) During the three years ended December 31, 2018 and the
six months ended June 30, 2018 covered by the financial statements contained in the Offering Memorandum and the General Disclosure Package, Crowe LLP were independent public accountants with respect to the Company as required by the rules of
the Public Company Accounting Oversight Board and the 1933 Act and the 1934 Act and the rules and regulations thereunder and (ii) Deloitte & Touche LLP are independent public accountants with respect to the Company as required by the
rules of the Public Company Accounting Oversight Board and the 1933 Act and the 1934 Act and the rules and regulations thereunder. 

(6)    Financial Statements. The financial statements of the Company included in the General
Disclosure Package and the Offering Memorandum, together with the related schedules (if any) and notes thereto, present fairly in all material respects the financial position of the Company and its consolidated subsidiaries at the dates indicated
and the results of operations, changes in stockholders’ equity and cash flows of the Company and its consolidated subsidiaries for the periods specified. Except as set forth in the Offering Memorandum and the General Disclosure Package, all of
such financial statements have been prepared in conformity with GAAP, applied on a consistent basis throughout the periods involved and comply in all material respects with all applicable accounting requirements under the 1933 Act and the 1933 Act
Regulations, or the 1934 Act and the 1934 Act Regulations, as applicable. The information in the Preliminary Offering Memorandum and the Offering Memorandum under the captions “Summary Selected Historical Consolidated Financial
Information” and “Selected Historical Consolidated Financial Information” presents fairly the information shown therein and has been prepared on a basis consistent with that of the audited financial statements of the Company included
in the General Disclosure Package and the Offering Memorandum. 

  
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 (7)    No Material Adverse Change in Business.
Since the dates for which financial statement information is last given in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent to
the date of this Agreement), (A) there has been no material adverse change or any development that could reasonably be expected to result in a material adverse change, in the condition (financial or other), results of operations, business,
properties or management of the Company and its subsidiaries taken as a whole, whether or not arising in the ordinary course of business (in any such case, a “Material Adverse Effect”); (B) except as otherwise disclosed in the
General Disclosure Package and the Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent to the date of this Agreement), neither the Company nor any of its subsidiaries has incurred any liability or
obligation, direct or contingent, or entered into any transaction or agreement that, individually or in the aggregate, is material with respect to the Company and its subsidiaries taken as a whole, and neither the Company nor any of its subsidiaries
has sustained any loss or interference with its business or operations from fire, explosion, flood, earthquake or other natural disaster or calamity, whether or not covered by insurance, or from any labor dispute or disturbance or court or
governmental action, order or decree which would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect; and (C) there has been no cash dividend or distribution of any kind declared, paid or made by the
Company on any class of its capital stock. 
 (8)    Good Standing of the Company, the Guarantors and
Subsidiaries. Each of the Company, the Guarantors and their respective subsidiaries has been duly organized and is validly existing as a corporation, limited liability company, limited company or limited partnership, as applicable, in good
standing under the laws of the state of its jurisdiction of organization and has power and authority to own, lease and operate its properties and to conduct its business as described in the Preliminary Offering Memorandum, the General Disclosure
Package and the Offering Memorandum and to enter into and perform its obligations under the Transaction Documents. Each of the Company, the Guarantors and their respective subsidiaries is duly qualified as a foreign corporation, limited liability
company, limited company or limited partnership, as applicable, to transact business and is in good standing in the state of its principal place of business and in each other jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except (solely in the case of jurisdictions other than its principal place of business) where the failure so to qualify or to be in good standing would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect. 
 (9)    Ownership of
Subsidiaries. All of the issued and outstanding shares of capital stock of each subsidiary of the Company that is a corporation, all of the issued and outstanding partnership interests of each subsidiary of the Company that is a limited or
general partnership and all of the issued and outstanding limited liability company interests, membership interests or other similar interests of each subsidiary of the Company that is a limited liability company have been duly authorized and
validly issued, are fully paid and (except in the case of general partnership interests) non-assessable and are owned by the Company, directly or through subsidiaries, free and clear

  
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of any Liens, except as described in the General Disclosure Package and the Offering Memorandum. None of the issued and outstanding shares of capital stock of any such subsidiary that is a
corporation, none of the issued and outstanding partnership interests of any such subsidiary that is a limited or general partnership, and none of the issued and outstanding limited liability company interests, membership interests or other similar
interests of any such subsidiary that is a limited liability company was issued in violation of any preemptive rights, rights of first refusal or other similar rights of any securityholder of such subsidiary or any other person. Exhibit 21 to
the Company’s most recent Annual Report on Form 10-K filed with the Commission accurately sets forth the name of each subsidiary of the Company and its jurisdiction of organization. Any subsidiaries
of the Company which are “significant subsidiaries” as defined by Rule 1-02 of Regulation S-X are listed on Exhibit C hereto under the caption
“Material Subsidiaries.” 
 (10)    Capitalization. The authorized, issued and
outstanding capital stock of the Company, as of June 30, 2019, is as set forth in the column entitled “Actual” and in the corresponding line items under the caption “Capitalization” in the Preliminary Offering Memorandum and
the Offering Memorandum. The shares of issued and outstanding capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. None of the outstanding shares of
capital stock of the Company was issued in violation of any preemptive rights, rights of first refusal or other similar rights of any securityholder of the Company or any other person. 

(11)    No Other Securities of Same Class. When the Securities and Guarantees are issued and
delivered pursuant to this Agreement, such Securities and Guarantees will not be of the same class (within the meaning of Rule 144A under the 1933 Act) as securities of the Company or the Guarantors that are listed on a national securities exchange
registered under Section 6 of the 1934 Act or that are quoted in a United States automated inter-dealer quotation system. 

(12)    No Registration. No registration under the 1933 Act of the Securities or the Guarantees, and
no qualification of the Indenture under the 1939 Act with respect thereto, is required for the sale of the Securities and the Guarantees to you as contemplated hereby or for the initial resale of Securities by you to the Eligible Purchasers in the
manner contemplated by the Preliminary Offering Memorandum and the Offering Memorandum, assuming the accuracy of the Initial Purchasers’ representations and warranties in this Agreement and the compliance by the Initial Purchasers with the
agreements set forth herein. 
 (13)    No General Solicitation. No form of general solicitation
or general advertising within the meaning of Regulation D under the 1933 Act (including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over
television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising) (each, a “General Solicitation”) was used by the Company or any of its affiliates or any of its
representatives (other than you and the other Initial Purchasers, as to whom the Company and the Guarantors make no representation) in connection with the offer and sale of the Securities. 

  
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 (14)    Regulation S Compliance. The Company is a
Category 2 issuer for purposes of Regulation S. No directed selling efforts within the meaning of Rule 902 under the 1933 Act were or will be used by the Company and its subsidiaries or any of their representatives (other than you and the other
Initial Purchasers, as to whom the Company and the Guarantors make no representation) with respect to Securities sold in reliance on Regulation S, and the Company, any affiliate of the Company and any person acting on its or their behalf (other than
you and the other Initial Purchasers, as to whom the Company and the Guarantors make no representation) has complied with and will comply with the “offering restrictions” required by Rule 902 under the 1933 Act in connection with the
offering of Securities outside the United States. 
 (15)    No Integration. Neither the Company,
any Guarantor nor any other person acting on behalf of the Company or any Guarantor (other than you and the other Initial Purchasers, as to whom the Company and the Guarantors make no representation) has sold or issued any securities that would be
integrated with the offering of the Securities contemplated by this Agreement pursuant to the 1933 Act, the rules and regulations thereunder or the interpretations thereof by the Commission. 

(16)    Authorization of Agreement. This Agreement has been duly authorized, executed and delivered
by the Company and each Guarantor. 
 (17)    Full Power. The Company and each Guarantor has full
right, power and authority to execute, deliver and perform its obligations under the Transaction Documents. 

(18)    The Indenture. The Indenture has been duly authorized by the Company and each Guarantor and,
on the Closing Date, will have been duly executed and delivered by the Company and each Guarantor and, assuming due authorization, execution and delivery by the Trustee, will constitute a valid and binding agreement of the Company and each
Guarantor, enforceable against the Company and each Guarantor in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or similar laws affecting
enforcement of creditors’ rights generally or by general principles of equity. 
 (19)    The
Securities. The Securities have been duly authorized and, at the Closing Date, will have been duly executed by the Company and, when authenticated in accordance with provisions of the Indenture and delivered against payment of the purchase price
therefor as provided in this Agreement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or by general principles of equity, and will be in the form contemplated by, and entitled to the benefits of, the Indenture. 

  
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 (20)     The Guarantees. The Guarantees have been
duly authorized and, at the Closing Date, the Indenture (which includes the Guarantees) will have been duly executed by the Guarantors. When the Securities are delivered against payment therefor as provided in this Agreement, and, when authenticated
in accordance with provisions of the Indenture, the Guarantees will constitute valid and binding obligations of the Guarantors, except as enforcement thereof may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium
or similar laws affecting enforcement of creditors’ rights generally or by general principles of equity. 

(21)    The Senior Credit Facility. The Senior Credit Facility has been duly authorized by the
Company and each Guarantor and, on the Closing Date, will have been duly executed and delivered by the Company and each Guarantor and will constitute a valid and binding agreement of the Company and each Guarantor, enforceable against the Company
and each Guarantor in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally or
by general principles of equity. 
 (22)    Description of the Securities and Agreements. The
Securities, the Guarantees and the Indenture conform and will conform in all material respects to the respective statements relating thereto contained in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering
Memorandum. 
 (23)    Absence of Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is (i) in violation of its Organizational Documents, (ii) in violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or
foreign, having jurisdiction over the Company or any of its subsidiaries or any of their respective assets, properties or operations or (iii) in breach or default (or with or without the giving of notice or the passage of time or both, would be
in breach or default) in the performance or observance of any obligation, agreement, covenant or condition contained in any Company Document, except in the case of clauses (ii) or (iii) for such violations, breaches or defaults that would not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. The execution, delivery and performance by the Company and the Guarantors of the Transaction Documents and the consummation of the transactions
contemplated therein and in the Preliminary Offering Memorandum, the General Disclosure Package and the Offering Memorandum (including the issuance and sale of the Securities and the use of the proceeds from the sale of the Securities as described
in the Preliminary Offering Memorandum and the Offering Memorandum under the caption “Use of Proceeds”) and compliance by the Company and the Guarantors with their obligations under the Transaction Documents do not and will not, whether
with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default, Termination Event or Repayment Event under, or result in the creation or imposition of any Lien upon any property or assets of the
Company or any of its subsidiaries pursuant to, any Company Documents except for any such conflict, breach, default, Termination Event, Repayment Event, or Lien that would not, individually or in the aggregate, reasonably be expected to have a
Material 

  
 7 

 
Adverse Effect or as would not materially adversely affect the ability of the Company and the Guarantors to consummate the transactions contemplated herein. Such actions will not result in any
violation of (i) the provisions of the Organizational Documents of the Company or any of its subsidiaries or (ii) any applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality
or court, domestic or foreign, having jurisdiction over the Company or any of its subsidiaries or any of its or their respective assets, properties or operations except in the case of clause (ii) as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect or as would not materially adversely affect the ability of the Company and the Guarantors to consummate the transactions contemplated herein. 

(24)    Transactions with Related Persons. No relationship, direct or indirect, that would be
required to be described in a registration statement of the Company pursuant to Item 404 of Regulation S-K exists, including between or among the Company and its subsidiaries, on the one hand, and the
directors, officers, affiliates, stockholders, customers or suppliers of the Company and its subsidiaries, on the other hand, that has not been described in the General Disclosure Package and the Offering Memorandum. 

(25)    Absence of Labor Dispute. No labor dispute with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company or any of its subsidiaries, is imminent. 

(26)    Absence of Proceedings. There is no action, suit, proceeding, inquiry or investigation
before or brought by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Company or its subsidiaries, threatened, against or affecting the Company or any of its subsidiaries (other than as
disclosed in the Preliminary Offering Memorandum, the General Disclosure Package or the Offering Memorandum), which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or to materially and adversely
affect the consummation of the transactions contemplated in the Transaction Documents or the performance by the Company or the Guarantors of their obligations under the Transaction Documents. 

(27)    Description of Legal Matters. The statements made in the General Disclosure Package and the
Offering Memorandum under the captions “Description of Notes,” “Description of Certain Other Indebtedness,” “Certain United States Federal Income Tax Considerations” and “Certain ERISA Considerations,” insofar
as they purport to constitute summaries of the terms of statutes, rules or regulations, legal or governmental proceedings or contracts or other documents, constitute accurate summaries of the terms of such statutes, rules and regulations, legal and
governmental proceedings and contracts and other documents in all material respects. 

(28)    Solvency. On the Closing Date, after giving pro forma effect to the entry into the Senior
Credit Facility and the initial borrowings thereunder, the Offering and the use of proceeds therefrom described under the caption “Use of Proceeds” in the General Disclosure Package and the Offering Memorandum, the Company and each
Guarantor (i) will be Solvent (as hereinafter defined), (ii) will have sufficient capital for carrying on its 

  
 8 

 
business and (iii) will be able to pay its debts as they mature. As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date
(i) the present fair market value (or present fair saleable value) of the assets of the Company and each Guarantor is not less than the total amount required to pay the liabilities of the Company and each Guarantor on its total existing debts
and liabilities (including contingent liabilities) as they become absolute and matured; (ii) the Company and each Guarantor is able to pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in
the normal course of business; (iii) assuming consummation of the issuance of the Securities as contemplated by this Agreement and the General Disclosure Package and the Offering Memorandum, neither the Company nor any Guarantor is incurring
debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) neither the Company nor any Guarantor is engaged in any business or transaction, and does not propose to engage in any business or transaction, for which
its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which the Company or any Guarantor is engaged; and (v) neither the Company nor any Guarantor is otherwise
insolvent under the standards set forth in applicable laws. 
 (29)    Possession of Intellectual
Property. The Company and its subsidiaries own or possess or have valid and enforceable licenses to use, all patents, patent rights, patent applications, copyrights, inventions, know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names, service names, software, internet addresses, domain names and other intellectual property
(collectively, “Intellectual Property”) that is described in the General Disclosure Package or the Offering Memorandum or that is necessary for the conduct of their respective businesses as currently conducted, except where the
failure to own or possess such rights would not, individually or in the aggregate, have a Material Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with
rights of others with respect to any Intellectual Property or of any facts or circumstances which would render any Intellectual Property invalid or inadequate to protect the interests of the Company or any of its subsidiaries therein, that would
reasonably likely to, individually or in the aggregate, have a Material Adverse Effect. 

(30)    Absence of Further Requirements. (A) No filing with, or authorization, approval,
consent, license, order, registration, qualification or decree of, any court or governmental authority or agency, domestic or foreign, (B) no authorization, approval, vote or consent of any holder of capital stock or other securities of the
Company or any Guarantor or creditor of the Company or any of its subsidiaries, (C) no authorization, approval, waiver or consent under any Company Document, and (D) no authorization, approval, vote or consent of any other person or
entity, is necessary or required for the execution, delivery or performance by the Company or the Guarantors of their obligations under the Transaction Documents, for the offering, issuance, sale or delivery of the Securities or the Guarantees
hereunder, or for the consummation of any of the other transactions contemplated by this Agreement, in each case on the terms contemplated by the General Disclosure Package and the Offering Memorandum, except

  
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such as have been or will have be obtained prior to the Closing Date and except that no representation is made as to any such consents, approvals authorizations, orders, registrations or
qualifications as may be required under state and foreign securities laws. 
 (31)    Possession of
Licenses and Permits. The Company and its subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or
foreign regulatory agencies or bodies necessary to conduct the business now operated by them. The Company and its subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply
would not, individually or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect. Neither the Company nor any of its subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such Governmental Licenses. 
 (32)    Title to
Property. The Company and each of its subsidiaries have good and marketable title in fee simple to all real property owned by any of them (if any) and good title to all other properties and assets that are material to the business of the Company
and its subsidiaries, in each case, free and clear of all Liens except such as (a) are described in the General Disclosure Package and the Offering Memorandum or (b) do not, individually or in the aggregate, materially affect the value of
such property or interfere with the use made and proposed to be made of such property by the Company or any of its subsidiaries. All real property, buildings and other improvements, and all equipment and other property, held under lease or sublease
by the Company or any of its subsidiaries is held by them under valid, subsisting and enforceable leases or subleases, as the case may be, with such exceptions that would not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect. 
 (33)    Neither the Company nor any of its subsidiaries has any written
notice of any claim adverse to the rights of the Company or any of its subsidiaries or which questions the rights of the Company or any of its subsidiaries to the continued possession of its leased or subleased premises or the continued use of its
leased or subleased equipment or other property, except for such claims which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

(34)    Investment Company Act. Neither the Company nor any of its subsidiaries is, and upon the
issuance and sale of the Securities as herein contemplated and the receipt and application of the net proceeds therefrom as described in the General Disclosure Package and the Offering Memorandum under the caption “Use Of Proceeds,” will
be required to register as an “investment company” under the 1940 Act. 

(35)    Environmental Laws. Except as described in the General Disclosure Package and the Offering
Memorandum and except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (A) neither the Company nor any of its subsidiaries is in violation of any federal, state, local or foreign
statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative interpretation thereof, including any judicial or administrative 

  
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order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or
subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products
(collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”),
(B) the Company and its subsidiaries have all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their requirements, (C)there are no pending or, to the knowledge of the
Company, threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, Liens, notices of noncompliance or violation, investigation or proceedings relating to any Environmental Law against the Company or any of
its subsidiaries and (D) to the knowledge of the Company, there are no events or circumstances that could reasonably be expected to form the basis of an order for clean-up or remediation, or an action,
suit or proceeding by any private party or governmental body or agency, against or affecting the Company or any of its subsidiaries relating to Hazardous Materials or any Environmental Laws. 

(36)    Tax Returns. The Company and its subsidiaries have filed all foreign, federal, state, local
and franchise tax returns that are required to be filed or have obtained extensions thereof, except where the failure so to file would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, and have
paid all taxes (including, without limitation, any estimated taxes) required to be paid and any other assessment, fine or penalty, to the extent that any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that
is currently being contested in good faith by appropriate actions and except for such taxes, assessments, fines or penalties the nonpayment of which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect. 
 (37)    Insurance. The Company and its subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; and neither the Company nor any of its subsidiaries has any reason to believe that it
will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business. 

(38)    Accounting and Disclosure Controls. The Company and its subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s general or specific authorizations; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability; (C) access to assets is permitted only in accordance with management’s general or specific authorization; and (D) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as described in the General Disclosure Package and the Offering

  
 11 

 
Memorandum, since December 31, 2018, there has been no material weakness in the Company’s internal control over financial reporting (whether or not remediated). The Company has
established, maintained and periodically evaluates the effectiveness of its “internal control over financial reporting” and “disclosure controls and procedures” (each as defined in Rules
13a-15 and 15d-15 under the 1934 Act). The Company’s internal control over financial reporting and disclosure controls and procedures are effective and comply with
the requirements of the 1934 Act in all material respects. 
 (39)    Compliance with the
Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act with
which any of them is required to comply, including Section 402 related to loans. 

(40)    Margin Requirements. None of the Company or its subsidiaries or their authorized
representatives (other than the Initial Purchasers, as to whom the Company and the Guarantors make no representation) has taken, and none of them will take, any action that would reasonably be expected to cause the transactions contemplated by this
Agreement (including, without limitation, the use of the proceeds from the sale of the Securities), to violate Regulations T, U and X of the Board of Governors of the Federal Reserve System. 

(41)    Absence of Manipulation. Neither the Company nor any of the Guarantors nor any of their
respective subsidiaries have taken and or will take, directly or indirectly, any action designed to or that would constitute or that would reasonably be expected to cause or result in the stabilization or manipulation of the price of any security to
facilitate the sale or resale of the Securities. 
 (42)    Statistical and Market-Related Data.
Any statistical, demographic, market-related and similar data included in the General Disclosure Package or the Offering Memorandum are based on or derived from sources that the Company believes to be reliable and accurate and accurately reflect the
materials upon which such data is based or from which it was derived. 
 (43)    No Unlawful
Payments. Neither the Company nor any of its subsidiaries nor any director, or officer of the Company or any of its subsidiaries nor, to the knowledge of the Company and each of the Guarantors, any employee, agent, affiliate or other person
associated with or acting on behalf of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that has resulted or would reasonably be expected to result in (i) the use of any funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) the making or taking of an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any
foreign or domestic government or regulatory official or employee, including of any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the
foregoing, or any political party or party official or candidate for political office; (iii) a violation by any such person of any provision of the Foreign 

  
 12 

 
Corrupt Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions, or the commission of an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery or anti-corruption laws; or (iv) the making, offering, requesting or taking of, or the agreement to take, an
act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. The Company and its subsidiaries have instituted,
maintain and enforce, and will continue to maintain and enforce policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws. 

(44)    Compliance with Money Laundering Laws. The operations of the Company and its subsidiaries
are in compliance in all material respects with applicable financial recordkeeping and reporting requirements, including as applicable, those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering
statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental or regulatory agency (collectively, the
“Anti-Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the
Anti-Money Laundering Laws is pending or, to the knowledge of the Company or any of its subsidiaries is, threatened. 

(45)    No Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries,
directors, or officers, nor, to the knowledge of the Company or any of the Guarantors, any agent, employee or affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries is currently the subject or the
target of any sanctions administered or enforced by the U.S. Government, (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State and
including, without limitation, the designation as a “specially designated national” or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury
(“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject or the target of
Sanctions, including, without limitation, Cuba, Iran, North Korea, Syria and Crimea (each, a “Sanctioned Country”); and the Company will not directly or indirectly use any of the proceeds of the offering, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the subject
or the target of any Sanctions, in violation of applicable law, (ii) to fund or facilitate any activities of or any business in any Sanctioned Country, in violation of applicable law, or (iii) in any other manner that would result in a
violation by any person (including any person participating in the transaction, whether as initial purchaser, advisor, investor or otherwise) of any Sanctions. For the past five years, the Company and its subsidiaries have not knowingly engaged in,
are not now knowingly engaged in, and will not engage in, any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of any Sanctions or with any Sanctioned Country, in violation
of applicable law. 

  
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 (46)    ERISA Compliance. None of the
following events has occurred or exists: (i) a failure to fulfill the obligations, if any, under the minimum funding standards of Section 302 of ERISA with respect to a Plan determined without regard to any waiver of such obligations or
extension of any amortization period; (ii) an audit or investigation by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other federal, state or foreign governmental or regulatory
agency with respect to the employment or compensation of employees by the Company or any of its subsidiaries that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect; or (iii) any breach of any
contractual obligation, or any violation of law or applicable qualification standards, with respect to the employment or compensation of employees by the Company or any of its subsidiaries that could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect. None of the following events has occurred or is reasonably likely to occur that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect: (i) a
material increase in the aggregate amount of contributions required to be made to all Plans in the current fiscal year of the Company and its subsidiaries compared to the amount of such contributions made in the Company’s most recently
completed fiscal year; (ii) a material increase in the “accumulated post-retirement benefit obligations” (within the meaning of Statement of Financial Accounting Standards 106) of the Company and its subsidiaries compared to the
amount of such obligations in the Company’s most recently completed fiscal year; (iii) any event or condition giving rise to a liability under Title IV of ERISA; or (iv) the filing of a claim by one or more employees or former
employees of the Company or any of its subsidiaries related to its or their employment. For purposes of this paragraph and the definition of ERISA, the term “Plan” means a plan (within the meaning of Section 3(3) of ERISA) with
respect to which the Company or any of its subsidiaries may have any liability. 
 (47)    No
Restrictions on Dividends. No subsidiary of the Company is a party to or otherwise bound by any instrument or agreement that limits, directly or indirectly, any subsidiary of the Company from paying any dividends or making any other
distributions on its capital stock, limited or general partnership interests, limited liability company interests, or other equity interests, as the case may be, or from repaying any loans or advances from, or (except for instruments or agreements
that by their express terms prohibit the transfer or assignment thereof or of any rights thereunder and the laws of the jurisdiction of formation of such entities) transferring any of its properties or assets to, the Company or any other subsidiary,
in each case except as described in the General Disclosure Package and the Offering Memorandum and any restriction or limitation that will be permitted under the Indenture. 

(48)    Brokers. There is not a broker, finder or other party that is entitled to receive from the
Company or any of its subsidiaries any brokerage or finder’s fee or other fee or commission as a result of any of the transactions contemplated by this Agreement, except for underwriting discounts and commissions payable to the Initial
Purchasers in connection with the sale of the Securities pursuant to this Agreement. 

  
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 (49)    Cyber Security; Data Protection. The
Company and its subsidiaries’ information technology and computer systems, networks, hardware, software, internet web sites, data and databases (including the data of their respective customers, employees, suppliers, vendors and any third party
data maintained by or on behalf of them), equipment or technology (collectively, “IT Systems and Data”) are adequate for, and operate and perform in all material respects as required in connection with, the operation of the business
of the Company and the subsidiaries as currently conducted, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company and its subsidiaries have implemented and maintained
commercially reasonable information technology, information security, cyber security and data protection controls, policies and procedures, including oversight, access controls, encryption, technological and physical safeguards, business
continuity/disaster recovery and incident response to adequately protect and prevent security breaches of, unauthorized access to and other similar compromises of IT Systems and Data in accordance with industry practices and as required by
applicable regulatory standards. The Company and its subsidiaries (i) to the knowledge of the Company and the Guarantors, have not experienced and have no knowledge of any cyber-attack, security breach, unauthorized access or other similar
compromise to their IT Systems and Data and (ii) are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal
policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except, in each case of clauses
(i) and (ii), for any such cyber-attack, security breach, unauthorized access or other similar compromise, or noncompliance, that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. 

(b)    Certificates. Any certificate signed by any officer of the Company, or any of its subsidiaries
(whether signed on behalf of such officer, the Company, or such subsidiary) and delivered to the Representative or to counsel for the Initial Purchasers shall be deemed a representation and warranty by the Company or such Guarantor to each Initial
Purchaser as to the matters covered thereby. 
 SECTION 2. Sale and Delivery to Initial Purchasers; Closing;
Agreements to Sell, Purchase and Resell 
 (a)    The Securities. On the basis of the representations
and warranties herein contained and subject to the terms and conditions herein set forth, the Company and each of the Guarantors agree to sell to each Initial Purchaser, severally and not jointly, and each Initial Purchaser, severally and not
jointly, agrees to purchase from the Company and each of the Guarantors, the aggregate principal amount of Securities set forth opposite such Initial Purchaser’s name in Exhibit A hereto plus any additional principal amount of Securities
which such Initial Purchaser may become obligated to purchase pursuant to the provisions of Section 10 hereof, in each case at a price equal to 98.5% of the principal amount thereof, plus accrued interest, if any, from September 17, 2019.
The Company and the Guarantors will not be obligated to deliver any of the Securities except upon payment for all the Securities to be purchased as provided herein. 

  
 15 

 (b)    Payment. Payment of the purchase price for, and
delivery of, the Securities shall be made at the offices of Cahill Gordon & Reindel LLP, 80 Pine Street, New York, New York 10005, or at such other place as shall be agreed upon by the Representative and the Company, at 9:00 A.M. (New
York City time) on September 17, 2019 (unless postponed in accordance with the provisions of Section 10), or such other time not later than five business days after such date as shall be agreed upon by the Representative and the Company
(such time and date of payment and delivery being herein called the “Closing Date”). 
 Payment shall be made to the
Company by wire transfer of immediately available funds to a single bank account designated by the Company against delivery to the Representative for the respective accounts of the Initial Purchasers of the Securities to be purchased by them. It is
understood that each Initial Purchaser has authorized the Representative, for its account, to accept delivery of, receipt for, and make payment of the purchase price for, the Securities which it has agreed to purchase. Wells Fargo, individually and
not as representative of the Initial Purchasers, may (but shall not be obligated to) make payment of the purchase price for the Securities to be purchased by any Initial Purchaser whose funds have not been received by the Closing Date, but such
payment shall not relieve such Initial Purchaser from its obligations hereunder. 
 (c)    Delivery of
Securities. The Company shall make one or more global certificates (collectively, the “Global Securities”) representing the Securities available for inspection by the Representative not later than 1:00 p.m., New York City
time, on the business day prior to the Closing Date and, on or prior to the Closing Date, the Company shall deliver the Global Securities to DTC or to the Trustee, acting as custodian for DTC, as applicable. Delivery of the Securities to the Initial
Purchasers on the Closing Date shall be made through the facilities of DTC unless the Representative shall otherwise instruct. 

(d)    Representations of the Initial Purchasers. Each of the Initial Purchasers, severally and not jointly hereby
represents and warrants to the Company that it intends to offer the Securities for sale upon the terms and conditions set forth in this Agreement and in the General Disclosure Package. Each of the Initial Purchasers, severally and not jointly,
hereby represents and warrants to, and agrees with, the Company, on the basis of the representations, warranties and agreements of the Company and the Guarantors, that such Initial Purchaser: (i) is a QIB and an institutional accredited
investor within the meaning of Rule 501(a) under the Securities Act; (ii) in connection with the Exempt Resales, will sell the Securities only to the Eligible Purchasers; and (iii) will not offer or sell the Securities in the United States
by any form of general solicitation or general advertising within the meaning of Regulation D under the 1933 Act and (iv) will not engage in any directed selling efforts within the meaning of Rule 902 under the 1933 Act, in connection with the
offering of the Securities. The Initial Purchasers have advised the Company that they will resell the Securities to Eligible Purchasers at a price initially equal to 100% of the principal amount thereof, plus accrued interest, if any, from
September 17, 2019. Such price may be changed by the Initial Purchasers at any time without notice. Each of the Initial Purchasers understands that the Company and, for purposes of the opinions to be delivered to the Initial Purchasers pursuant
to this Agreement, counsel to the Company and counsel to the Initial Purchasers, will rely upon the accuracy and truth of the foregoing representations, warranties and agreements, and the Initial Purchasers hereby consent to such reliance. 

  
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 SECTION 3. Covenants of the Company and the Guarantors. 

The Company and the Guarantors, jointly and severally, covenant with each Initial Purchaser as follows: 

(a)    Securities Law Compliance. The Company will (i) advise each Initial Purchaser promptly
after obtaining knowledge (and, if requested by any Initial Purchaser, confirm such advice in writing) of (A) the issuance by any U.S. or non-U.S. federal or state securities commission of any stop order
suspending the qualification or exemption from qualification of any of the Securities for offer or sale in any jurisdiction, or the initiation of any proceeding for such purpose by any U.S. or non-U.S. federal
or state securities commission or other regulatory authority, or (B) the happening of any event that makes any statement of a material fact made in the General Disclosure Package, any Issuer Free Writing Document or the Offering Memorandum,
untrue or that requires the making of any additions to or changes in the General Disclosure Package, any Issuer Free Writing Document or the Offering Memorandum, to make the statements therein, in the light of the circumstances under which they were
made, not misleading, (ii) use its reasonable best efforts to prevent the issuance of any stop order or order suspending the qualification or exemption from qualification of any of the Securities under any securities or “Blue Sky”
laws of U.S. state or non-U.S. jurisdictions and (iii) if, at any time, any U.S. or non-U.S. federal or state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from qualification of any of the Securities under any such laws, use its reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest possible time. 

(b)    Amendments. The Company will give the Representative notice of its intention to
prepare any amendment, supplement or revision to the Preliminary Offering Memorandum, the Offering Memorandum or any Issuer Free Writing Document, and the Company will furnish the Representative with copies of any such documents within a reasonable
amount of time prior to such proposed use, and will not use any such document to which the Representative or counsel for the Initial Purchasers shall reasonably object in a timely manner. The Company has given the Representative notice of any
filings made pursuant to the 1934 Act or the 1934 Act Regulations reasonably prior to the Applicable Time. The Company will give the Representative notice of its intention to make any such filing from and after the Applicable Time through the
Closing Date (or, if later, through the completion of the distribution of the Securities by the Initial Purchasers to Eligible Purchasers) and will furnish the Representative with copies of any such documents a reasonable amount of time prior to
such proposed filing, as the case may be, and will not file or use any such document to which the Representative or counsel for the Initial Purchasers shall reasonably object, unless such filing is required by law.    The
Representative shall notify the Company if the Initial Purchasers have not completed the distribution of Securities as of the Closing Date. 

(c)    Delivery of Disclosure Documents to the Representative. The Company will deliver to
the Representative and counsel for the Initial Purchasers, within two days of the date hereof and without charge, such number of copies of the Preliminary Offering Memorandum, the Pricing Term Sheet and the Offering Memorandum and any amendment or
supplement to any of the foregoing as they reasonably request. 

  
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 (d)    Continued Compliance with Securities
Laws. The Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated by this Agreement, the General
Disclosure Package and the Offering Memorandum. If at any time prior to the completion of the distribution of the Securities by the Initial Purchasers to Eligible Purchasers, any event shall occur or condition shall exist as a result of which it is
necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their reasonable judgment, it is necessary) to amend or supplement the General Disclosure Package or the Offering Memorandum so that the
General Disclosure Package or the Offering Memorandum, as the case may be, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made or then prevailing, not misleading or if it is necessary (or, if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their reasonable judgment, it is necessary) to amend or supplement
the General Disclosure Package or the Offering Memorandum in order to comply with the requirements of the 1933 Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations, the Company will promptly notify the Representative of such event
or condition and of its intention to prepare such amendment or supplement (or, if the Representative or counsel for the Initial Purchasers shall have notified the Company as aforesaid, the Company will promptly notify the Representative of its
intention to prepare such amendment or supplement) and will promptly prepare, subject to Section 3(b) hereof, such amendment or supplement as may be necessary to correct such untrue statement or omission or to comply with such requirements, and
the Company will furnish to the Initial Purchasers such number of copies of such amendment or supplement as the Initial Purchasers may reasonably request. If at any time an event shall occur or condition shall exist as a result of which it is
necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their reasonable judgment, it is necessary) to amend or supplement any Issuer Free Writing Document so that it will not include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made or then prevailing, not misleading, or if it is necessary (or, if the
Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement such Issuer Free Writing Document in order to comply with the requirements of the 1933 Act or the 1933 Act
Regulations, the Company will promptly notify the Representative of such event or condition and of its intention to prepare such amendment or supplement (or, if the Representative or counsel for the Initial Purchasers shall have notified the Company
as aforesaid, the Company will promptly notify the Representative of its intention to prepare such amendment or supplement) and will promptly prepare and, subject to Section 3(b) hereof distribute, such amendment or supplement as may be
necessary to eliminate or correct such conflict, untrue statement or omission or to comply with such requirements, and the Company will furnish to the Initial Purchasers such number of copies of such amendment or supplement as the Initial Purchasers
may reasonably request. 

  
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 (e)    Use of Offering Materials. The Company and
each of the Guarantors consents to the use of the General Disclosure Package and the Offering Memorandum in accordance with the securities or “Blue Sky” laws of the jurisdictions in which the Securities are offered by the Initial
Purchasers and by all dealers to whom Securities may be sold, in connection with the offering and sale of the Securities. 

(f)    “Blue Sky” and Other Qualifications. The Company will
cooperate with the Initial Purchasers, to qualify the Securities for offering and sale, or to obtain an exemption for the Securities to be offered and sold, under the applicable securities laws of such states and other jurisdictions (domestic or
foreign) as the Representative may reasonably request and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Securities; provided, however, that the Company shall not be
obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Securities have been so qualified or are exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to
continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Securities. 

(g)    Use of Proceeds. The Company will use the net proceeds received by it from the sale of the
Securities in the manner specified in the Preliminary Offering Memorandum and the Offering Memorandum under “Use of Proceeds.” 

(h)    Restriction on Sale of Securities. From and including the date of this Agreement
through and including the 90th day after the date of this Agreement, the Company and the Guarantors will not, without the prior written consent of Wells Fargo, directly or indirectly issue, offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option or right to sell or otherwise transfer or dispose of any debt securities of or guaranteed by the Company or any
Guarantor (other than the Securities issued under this Agreement) or any securities convertible into or exercisable or exchangeable for any debt securities of or guaranteed by the Company. 

(i)    Rule 144A Information. So long as any of the Securities are outstanding, during any period in
which the Company is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, the Company and the Guarantors will furnish at their expense to the Initial Purchasers, and, upon request, to the holders of the Securities and
prospective purchasers of the Securities, the information required by Rule 144A(d)(4) under the 1933 Act (if any). 

(j)    Pricing Term Sheet. The Company will prepare the Pricing Term Sheet reflecting the final
terms of the Securities, in substantially the form attached hereto as Exhibit D and otherwise in form and substance satisfactory to the Representative; provided that the Company will furnish the Representative with copies of any such
Pricing Term Sheet and will not use any such document to which the Representative or counsel to the Initial Purchasers shall object. 

  
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 (k)    Preparation of the Offering Memorandum.
As promptly as practicable following the execution of this Agreement, the Company will, subject to Section 3(b) hereof, prepare the Offering Memorandum, which shall contain the public offering price and terms of the Securities, the plan of
distribution thereof and such other information as the Representative and the Company may deem appropriate. 

(l)    DTC. The Company will use its best efforts to permit the Securities to be eligible for
clearance and settlement through DTC. 
 (m)    No Stabilization. The Company, the Guarantors and
their respective affiliates will not take, directly or indirectly, any action designed to or that has constituted or that reasonably could be expected to cause or result in the stabilization or manipulation of the price of any security of the
Company or the Guarantors in connection with the offering of the Securities. 
 (n)    No Affiliate
Resales. The Company and the Guarantors will not, and will not permit any of their respective affiliates (as defined in Rule 144 under the 1933 Act) to, resell any of the Securities that have been acquired by any of them, except for Securities
purchased by the Company, the Guarantors or any of their respective affiliates and resold in a transaction registered under the 1933 Act. 

(o)    No General Solicitation. In connection with any offer or sale of the Securities, except as
directed by the Initial Purchasers, the Company and the Guarantors will not engage, and will cause their respective affiliates and any person acting on their behalf (other than, in any case, the Initial Purchasers and any of their affiliates, as to
whom the Company and the Guarantors make no covenant) not to engage (i) in any form of general solicitation or general advertising (within the meaning of Regulation D of the 1933 Act), other than any General Solicitation with the prior consent
of the Representative and listed on Schedule 5 hereto, or any public offering within the meaning of Section 4(a)(2) of the 1933 Act in connection with any offer or sale of the Securities and/or (ii) in any directed selling effort with
respect to the Securities within the meaning of Regulation S under the 1933 Act, and to comply with the offering restrictions requirement of Regulation S of the 1933 Act.  

(p)    No Integration. The Company will not, and will ensure that no affiliate of the Company will,
sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the 1933 Act) that would be integrated with the sale of the Securities in a manner that would require the registration under
the 1933 Act of the sale to the Initial Purchasers or to the Eligible Purchasers of the Securities. 

(q)    Transaction Documents. The Company and the Guarantors will do and perform all things
reasonably required or necessary to be done and performed under the Transaction Documents by them prior to the Closing Date, and to satisfy all conditions precedent to the Initial Purchasers’ obligations hereunder to purchase the Securities.

  
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 SECTION 4. Payment of Expenses 

(a)    Expenses. The Company and the Guarantors, jointly and severally, will pay all expenses incident to the
performance of their respective obligations under this Agreement, including (i) the preparation, printing and delivery of the Preliminary Offering Memorandum, the General Disclosure Package, the Offering Memorandum and any Issuer Free Writing
Documents and each amendment thereto (in each case including exhibits) and any costs associated with electronic delivery of any of the foregoing, (ii) the word processing and delivery to the Initial Purchasers of each of the Transaction
Documents and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation, issuance and delivery of the certificates for the Securities and the issuance
and delivery of the Securities to the Initial Purchasers, including any issue or other transfer taxes and any stamp or other taxes or duties payable in connection with the sale, issuance or delivery of the Securities to the Initial Purchasers,
(iv) the fees and disbursements of the counsel, accountants and other advisors to the Company and the Guarantors, (v) the qualification or exemption of the Securities under securities laws in accordance with the provisions of
Section 3(f) hereof, including the reasonable fees and disbursements of counsel for the Initial Purchasers in connection therewith and in connection with the preparation, printing and delivery of the Blue Sky Survey and any supplements thereto,
(vi) the fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee in connection with the Transaction Documents, (vii) all fees charged by any rating agencies for rating the Securities and all
expenses and application fees incurred in connection with the approval of the Securities for clearance, settlement and book-entry transfer through DTC and (viii) all travel expenses of the Initial Purchasers of the Company and any other
expenses of the Company in connection with attending or hosting meetings with prospective purchasers of the Securities, and expenses associated with any electronic road show. 

(b)    Termination of Agreement. If this Agreement is terminated by the Representative in accordance with
the provisions of Section 5, Section 9(a)(i), Section 9(a)(iii) or Section 10 hereof, the Company and the Guarantors, jointly and severally, will reimburse the Initial Purchasers (but in the case of any termination in accordance
with Section 10, only the non-defaulting Initial Purchasers) for all of their out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for the Initial Purchasers. 
 SECTION 5. Conditions of Initial
Purchasers’ Obligations. 
 The obligations of the several Initial Purchasers hereunder are subject to the accuracy, on the date
hereof and at the Closing Date, of the representations and warranties of the Company and the Guarantors contained in this Agreement, or in certificates signed by any officer of the Company, any Guarantor or any subsidiary of the Company (whether
signed on behalf of such officer, the Company or such subsidiary) delivered to the Representative or counsel for the Initial Purchasers, to the performance by the Company and the Guarantors of their respective covenants and other obligations
hereunder, and to the following further conditions: 
 (a)    Opinions of Counsel for Company and the
Guarantors. At the Closing Date, the Representative shall have received the opinion, each dated as of the Closing Date, in form and substance satisfactory to the Representative of (i) McDermott Will &

  
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Emery LLP, New York, Delaware and California counsel for the Company and the Guarantors (“Company Counsel”) to the effect set forth in
Exhibit F-1 hereto, which shall include a negative assurance letter (ii) Warrick & Boyn, LLP, Indiana counsel for the Company and Guarantors to the effect set forth in Exhibit F-2 hereto, (iii) The Nelson Law Group, PLLC, Arizona counsel for the Company and Guarantors to the effect set forth in Exhibit F-3 hereto,
(iv) Brownstein Hyatt Farber Schreck, LLP, Nevada counsel for the Company and Guarantors to the effect set forth in Exhibit F-4 hereto and (v) Reinhart Boerner Van Deuren s.c., Wisconsin counsel
for the Company and Guarantors to the effect set forth in Exhibit F-5 hereto, in each case together with signed or reproduced copies of such opinion for each of the other Initial Purchasers. 

(b)    Opinion of Counsel for Initial Purchasers. At the Closing Date, the Representative
shall have received the favorable letter, dated as of the Closing Date, of Cahill Gordon & Reindel LLP, counsel for the Initial Purchasers, together with signed or reproduced copies of such letter for each of the other Initial Purchasers,
with respect to the Securities to be sold by the Company pursuant to this Agreement, the Indenture, the General Disclosure Package and the Offering Memorandum, and any amendments or supplements thereto and such other matters as the Representative
may reasonably request. 
 (c)    Officers’ Certificate. At the Closing
Date, there shall not have been, since the date hereof or since the respective dates as of which information is given in the General Disclosure Package and the Offering Memorandum (in each case exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement), any material adverse change or any development that would reasonably be expected to result in a material adverse change, in the condition (financial or other), results of operations, business,
properties or management of the Company and its subsidiaries taken as a whole, whether or not arising in the ordinary course of business. At the Closing Date, the Representative shall have received a certificate, signed on behalf of the Company and
each Guarantor by the President or the Chief Executive Officer of the Company and each Guarantor and the Chief Financial Officer or Chief Accounting Officer of the Company and each Guarantor, dated as of the Closing Date, to the effect that
(i) there has been no such material adverse change, (ii) the representations and warranties of the Company and the Guarantors in this Agreement are true and correct at and as of the Closing Date with the same force and effect as though
expressly made at and as of the Closing Date and (iii) the Company and the Guarantors have complied with all agreements and satisfied all conditions on their part to be performed or satisfied at or prior to the Closing Date under or pursuant to
this Agreement. 
 (d)    Accountants’ Comfort Letters. At the time of
the execution of this Agreement, the Representative shall have received (i) from Crowe LLP a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of
such letter for each of the other Initial Purchasers, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to initial purchasers with respect to the financial statements and certain
financial information of the Company contained in the General Disclosure Package, any Issuer Free Writing Documents (other than any electronic road show) and the Offering Memorandum and any amendments or supplements to any of the

  
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foregoing and (ii) from Deloitte & Touche LLP a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or
reproduced copies of such letter for each of the other Initial Purchasers, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to initial purchasers with respect to the financial
statements and certain financial information of the Company contained in the General Disclosure Package, any Issuer Free Writing Documents (other than any electronic road show) and the Offering Memorandum and any amendments or supplements to any of
the foregoing. 
 (e)    Bring-down Comfort Letter. At the Closing Date, the Representative
shall have received from Deloitte & Touche LLP a letter, dated as of the Closing Date and in form and substance satisfactory to the Representative, to the effect that they reaffirm the statements made in the letter furnished pursuant to
subsection (d) of this Section 5, except that the specified date referred to shall be a date not more than three business days prior to the Closing Date. 

(f)    No Downgrade. There shall not have occurred, on or after the date of this Agreement,
any downgrading in the rating of any debt securities of or guaranteed by the Company , any preferred stock of the Company or any debt securities, preferred stock or trust preferred securities of any subsidiary or subsidiary trust of the Company by
any “nationally recognized statistical rating organization” (as defined by the Commission in Section 3(a)(62) of the 1934 Act) or any public announcement that any such organization has placed its rating on the Company or any such debt
securities, preferred stock or other securities under surveillance or review or on a so-called “watch list” (other than an announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating) or any announcement by any such organization that the Company or any such debt securities, preferred stock or other securities has been placed on negative outlook. 

(g)    DTC Eligibility. The Securities shall be eligible for clearance and settlement through DTC.

 (h)    Transaction Documents. The Company, the Guarantors and the other parties thereto shall
have executed and delivered each of the Transaction Documents, and the Initial Purchasers shall have received original copies thereof, duly executed by the Company, the Guarantors and the other parties thereto. 

(i)    Additional Documents. At the Closing Date, counsel for the Initial Purchasers shall
have been furnished with such documents and opinions as they may require for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence the accuracy of any of the representations
or warranties, or the fulfillment of any of the conditions, contained in this Agreement, or as the Representative or counsel for the Initial Purchasers may otherwise reasonably request. 

  
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 (j)    Termination of Agreement. If any
condition specified in this Section 5 shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Representative by notice to the Company and the Guarantors at any time on or prior to the Closing
Date and such termination shall be without liability of any party to any other party except as provided in Section 4 hereof and except that Sections 1, 4(b), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18 19 and 20 hereof shall survive any such
termination of this Agreement and remain in full force and effect. 
 SECTION 6. Indemnification. 

(a)    Indemnification by the Company and the Guarantors. The Company and each Guarantor agree, jointly and
severally, to indemnify and hold harmless each Initial Purchaser, its affiliates, and its and their officers, directors, employees, agents, partners and members and each person, if any, who controls any Initial Purchaser within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: 
 (i)    against any and
all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact in the Preliminary Offering Memorandum, any Issuer Free Writing Document, the
General Disclosure Package or the Offering Memorandum (or any amendment or supplement to any of the foregoing), or in any materials, presentations or information provided to investors by, or with the approval of, the Company or any Guarantor in
connection with the marketing of the offering of the Securities, including any road show or investor presentations made to investors by the Company (whether in person or electronically), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

(ii)    against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the
extent of the aggregate amount paid in settlement of, or pursuant to a judgment or other disposition in, any litigation, or any investigation or proceeding by any governmental or self-regulatory agency or body, commenced or threatened, or of any
claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 6(d) below) any such settlement is effected with the written consent
of the Company and the Guarantors; and 
 (iii)    against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental or self-regulatory agency or body, commenced or
threatened, or any claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above, 

  
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 provided, however, that this indemnity agreement shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information about any Initial Purchaser furnished to
the Company or any Guarantor by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any Issuer Free Writing Document, the General Disclosure Package or the Offering Memorandum (or in any
amendment or supplement to any of the foregoing), it being understood and agreed that the only such information furnished by the Initial Purchasers as aforesaid consists of the information described as such in Section 6(b) hereof. 

(b)    Indemnification by the Initial Purchasers. Each Initial Purchaser agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors, their respective directors and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all
loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section 6, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in
the Preliminary Offering Memorandum, any Issuer Free Writing Document, the General Disclosure Package or the Offering Memorandum (or any amendment or supplement to any of the foregoing), in reliance upon and in conformity with written information
relating to such Initial Purchaser furnished to the Company or any Guarantor by such Initial Purchaser through the Representative expressly for use therein. The Company and the Guarantors hereby acknowledge and agree that the information furnished
to the Company and any Guarantor by the Initial Purchasers through the Representative expressly for use in the Preliminary Offering Memorandum, any Issuer Free Writing Document or the Offering Memorandum (or any amendment or supplement to any of the
foregoing), consists exclusively of the following information appearing under the caption “Plan of Distribution” in the Preliminary Offering Memorandum and the Offering Memorandum: (i) the information regarding stabilization,
syndicate covering transactions and penalty bids appearing in the first sentence of the ninth paragraph under such caption (but only insofar as such information concerns the Initial Purchasers) and (ii) the information regarding market making
by the Initial Purchasers appearing in the fourth sentence of the seventh paragraph under such caption. 

(c)    Actions Against Parties; Notification. Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder; provided, however, that the failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability that it may have under this Section 6, except to the extent that it has been materially prejudiced by such failure. In case any such action is brought against any indemnified party and such indemnified
party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice
delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any
such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it 

  
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and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assume the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 6 for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that the indemnifying party shall not be liable for
the expenses of more than one separate counsel (in addition to local counsel) representing the indemnified parties who are parties to such action (which separate counsel shall be selected by (x) the Representative, in the case of counsel
representing the Initial Purchasers or their related persons or (y) the Company, in the case of counsel representing the Company and the Guarantors or their respective related persons)) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the
indemnifying party. 
 (d)    Settlements. The indemnifying party under this Section 6 shall not be liable
for any settlement of any proceeding effected without its written consent, which will not be unreasonably withheld, but if settled with such consent or if there be a final judgment, the indemnifying party agrees to indemnify the indemnified party
against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Counsel to the indemnified parties shall be selected as follows: counsel to the Initial Purchasers and the other indemnified parties referred to in
Section 6(a) above shall be selected by Wells Fargo and counsel to the Company and the Guarantors, their respective directors, each of their respective officers and each person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by the Company and the Guarantors. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that
counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying party be liable for the fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for the Initial Purchasers and the other indemnified parties referred to in Section 6(a) above; and the fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for the Company and the Guarantors, their respective directors, each of their respective officers and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, in each case in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 or Section 7 hereof (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party. 

  
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 (e)    Settlement Without Consent if Failure to Reimburse.
If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 6, such indemnifying party agrees that it shall be liable for
any settlement contemplated by Section 6(a) effected without its written consent if all of the following exist (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request
(and the indemnifying party has not objected within such 45-day period to such settlement), (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement or shall not have disputed in good faith the
indemnified party’s entitlement to such reimbursement. 
 SECTION 7. Contribution. 

If the indemnification provided for in Section 6 hereof is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as
incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other hand from the offering of the Securities pursuant to this
Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantors on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations. 
 The relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on
the other hand in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant to this Agreement (before
deducting expenses) received by the Company and the Guarantors and the total discounts and commissions received by the Initial Purchasers, in each case as determined pursuant to this Agreement, bear to the aggregate initial offering price of the
Securities as set forth on the cover of the Offering Memorandum. 
 The relative fault of the Company and the Guarantors on the one hand and
the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information
supplied by the Company or the Guarantors on the one hand or by the Initial Purchasers on the other hand and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

  
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 The Company and the Guarantors and the Initial Purchasers agree that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. 
 Notwithstanding the provisions
of this Section 7, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discounts and commissions from the sale to Eligible Purchasers of the Securities initially purchased by it exceeds the
amount of any damages which such Initial Purchaser has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. 

No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. 
 For purposes of this Section 7, each affiliate, officer,
director, employee, partner and member of each Initial Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights
to contribution as such Initial Purchaser, and each director of the Company and of each Guarantor, each officer of the Company and of each Guarantor, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Guarantors. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 7 are several in proportion to the
principal amount of Securities set forth opposite their respective names in Exhibit A hereto and not joint. 
 SECTION
8. Representations, Warranties and Agreements to Survive Delivery. 
 All representations, warranties and agreements contained in this
Agreement or in certificates signed by any officer of the Company or any of its subsidiaries (whether signed on behalf of such officer, the Company, or such subsidiary) and delivered to the Representative or counsel to the Initial Purchasers, shall
remain operative and in full force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser, its affiliates and any of their any officers, directors, employees, partners, members or agents of any Initial Purchaser or
any person controlling any Initial Purchaser, or by or on behalf of the Company, any Guarantor, any officer, director or employee of the Company or any Guarantor or any person controlling the Company or any Guarantor, and shall survive delivery of
and payment for the Securities. 

  
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 SECTION 9. Termination of Agreement. 

(a)    Termination; General. The Representative may terminate this Agreement, by notice to the Company and
the Guarantors, at any time on or prior to the Closing Date (i) if there has been, at any time on or after the date of this Agreement or since the respective dates as of which information is given in the General Disclosure Package or the
Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent to the date of this Agreement), any material adverse change or any development that could reasonably be expected to result in a material adverse change,
in the condition (financial or other), results of operations, business, properties or management of the Company and its subsidiaries taken as a whole, whether or not arising in the ordinary course of business, or (ii) if there has occurred any
material adverse change in the financial markets in the United States or the international financial markets, any declaration of a national emergency or war by the United States, any outbreak of hostilities or escalation thereof or other calamity or
crisis or any change or development involving a prospective change in national or international political, financial or economic conditions (including, without limitation, as a result of terrorist activities), in each case the effect of which is
such as to make it, in the judgment of the Representative, impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities or to enforce contracts for the sale of the Securities on the terms and in the manner
contemplated in the General Disclosure Package and the Offering Memorandum, or (iii) (A) if trading in any securities of the Company has been suspended or materially limited by the Commission or the Nasdaq Global Market, or (B) if
trading generally on the NYSE, the Nasdaq Global Select Market or the Nasdaq Global Market has been suspended or limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of said
exchanges or by order of the Commission or any other governmental authority, or (C) if a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States or in Europe, or (iv) if a
banking moratorium has been declared by either Federal or New York authorities or (v) if there shall have occurred, on or after the date of this Agreement, any downgrading in the rating of any debt securities of or guaranteed by the Company or
any Guarantor, any preferred stock of any Guarantor or any debt securities, preferred stock or trust preferred securities of any subsidiary or subsidiary trust of the Company by any “nationally recognized statistical rating organization”
(as defined by the Commission in Section 3(a)(62) of the 1934 Act) or any public announcement that any such organization has placed its rating on the Company or any Guarantor or any such debt securities, preferred stock or other securities
under surveillance or review or on a so-called “watch list” (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such
rating) or any announcement by any such organization that the Company or any Guarantor or any such debt securities, preferred stock or other securities has been placed on negative outlook. 

(b)    Liabilities. If this Agreement is terminated pursuant to Section 5 or this Section 9, such
termination shall be without liability of any party to any other party except as provided in Section 4 hereof, and except that Sections 1, 4(b), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19 and 20 hereof shall survive such termination and
remain in full force and effect. 

  
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 SECTION 10. Default by One or More of the Initial Purchasers. 

(a)    If one or more of the Initial Purchasers shall fail at the Closing Date to purchase the aggregate principal amount
of Securities which it or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the Representative shall have the right, within 24 hours thereafter, to make arrangements for one or more of the
non-defaulting Initial Purchasers, or any other purchaser, to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however, the Representative shall not have
completed such arrangements within such 24-hour period, then: 

(i)    if the aggregate principal amount of Defaulted Securities does not exceed 10% of the aggregate
principal amount of Securities, each of the non-defaulting Initial Purchasers shall be obligated, severally and not jointly, to purchase the full amount of such Defaulted Securities in the proportions that
their respective underwriting obligations hereunder bear to the underwriting obligations of all non-defaulting Initial Purchasers; or 

(ii)    if the number of Defaulted Securities exceeds 10% of the aggregate principal amount of Securities,
this Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser. 

No action taken pursuant to this Section 10 shall relieve any defaulting Initial Purchaser from liability in respect of its default. 

In the event of any such default which does not result in a termination of this Agreement, the Representative shall have the right to postpone
the Closing Date for a period not exceeding seven days in order to effect any required changes in the General Disclosure Package or Offering Memorandum or in any other documents or arrangements. As used herein, the term “Initial Purchaser”
includes any person substituted for an Initial Purchaser under this Section 10. 
 SECTION 11. Notices 

All notices and other communications hereunder shall be in writing, shall be effective only upon receipt and shall be mailed, delivered by hand
or overnight courier, or transmitted by fax (with the receipt of any such fax to be confirmed by telephone). Notices to the Initial Purchasers shall be directed to the Representative at Wells Fargo Securities, LLC, 301 S. College St., 6th Floor, Charlotte, North Carolina 28288, Attention: Transaction Management, fax no. (704) 383-9165 (with such fax to be confirmed by telephone to
(704) 715-0541); and notices to the Company or any Guarantor shall be directed to it at 107 W. Franklin Street, P.O. Box 638, Elkhart, Indiana, Attention: Joshua Boone, email boonej@patrickind.com (with such
email to be confirmed by telephone to (574) 206-7734). 
 In accordance with the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective clients, including the
Company, which information may include the name and address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their respective clients. 

  
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 SECTION 12. Parties 

This Agreement shall each inure to the benefit of and be binding upon the Initial Purchasers, the Company, the Guarantors and their respective
successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the Initial Purchasers, the Company, the Guarantors and their respective successors and the
controlling persons and other indemnified parties referred to in Sections 6 and 7 and their successors, heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein
contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers, the Company, the Guarantors and their respective successors, and said controlling persons and other
indemnified parties and their successors, heirs and legal representatives, and for the benefit of no other person or entity. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor by reason merely of such purchase.

 SECTION 13. GOVERNING LAW AND TIME 

THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. 

SECTION 14. Effect of Headings 

The Section and Exhibit headings herein are for convenience only and shall not affect the construction hereof. 

SECTION 15. Definitions 

As used in this Agreement, the following terms have the respective meanings set forth below: 

“Applicable Time” means 1:37 p.m. (New York City time) on September 12, 2019 or such other time as agreed by the
Company, the Guarantors and the Representative. 
 “Common Stock” means the Company’s common stock, which has no
stated par value. 
 “Commission” means the Securities and Exchange Commission. 

“Company Documents” means all contracts, indentures, mortgages, deeds of trust, loan or credit agreements, bonds, notes,
debentures, evidences of indebtedness, swap agreements, leases or other instruments or agreements to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property
or assets of the Company or any of its subsidiaries is subject. 
 “DTC” means The Depository Trust Company. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published
interpretations thereunder. 

  
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 “FCPA” means the Foreign Corrupt Practices Act of 1977, as amended, and the
rules and regulations thereunder. 
 “GAAP” means generally accepted accounting principles in the United States. 

“Lien” means any security interest, mortgage, pledge, lien, encumbrance, claim or equity. 

“NYSE” means the New York Stock Exchange. 

“OFAC” means the Office of Foreign Assets Control of the U.S. Treasury Department. 

“Organizational Documents” means (a) in the case of a corporation, its charter and
by-laws; (b) in the case of a limited or general partnership, its partnership certificate, certificate of formation or similar organizational document and its partnership agreement; (c) in the case
of a limited liability company, its articles of organization, certificate of formation or similar organizational documents and its operating agreement, limited liability company agreement, membership agreement or other similar agreement; (d) in
the case of a trust, its certificate of trust, certificate of formation or similar organizational document and its trust agreement or other similar agreement; and (e) in the case of any other entity, the organizational and governing documents
of such entity. 
 “Repayment Event” means any event or condition which, either immediately or with notice or passage of
time or both, (i) gives the holder of any bond, note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any subsidiary of the Company, or (ii) gives any counterparty (or any person acting on such counterparty’s behalf) under any swap agreement, hedging agreement or similar agreement or instrument to which the
Company or any subsidiary of the Company is a party the right to liquidate or accelerate the payment obligations or designate an early termination date under such agreement or instrument, as the case may be. 

“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder or
implementing the provisions thereof. 
 “Termination Event” means any event or condition which gives any person the right,
either immediately or with notice or passage of time or both, to terminate or limit (in whole or in part) any Company Documents or any rights of the Company, or any of its subsidiaries thereunder, including, without limitation, upon the occurrence
of a change of control of the Company or any Guarantor or other similar events. 
 “Transaction Documents” means this
Agreement, the Indenture, the Securities, the Guarantees and the Senior Credit Facility, collectively. 
 “1933 Act” means
the Securities Act of 1933, as amended. 
 “1933 Act Regulations” means the rules and regulations of the Commission under
the 1933 Act. 

  
 32 

 “1934 Act” means the Securities Exchange Act of 1934, as amended. 

“1934 Act Regulations” means the rules and regulations of the Commission under the 1934 Act. 

“1939 Act” means the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder.

 “1940 Act” means the Investment Company Act of 1940, as amended. 

All references in this Agreement to the Preliminary Offering Memorandum and the Offering Memorandum, any Issuer Free Writing Document or any
amendment or supplement to any of the foregoing shall be deemed to include all versions thereof delivered (physically or electronically) to the Representative or the Initial Purchasers. 

All references in this Agreement to financial statements and schedules and other information which is “contained,”
“included” or “stated” in the Preliminary Offering Memorandum or the Offering Memorandum (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other
information which is incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum, as the case may be; and all references in this Agreement to amendments or supplements to the Preliminary Offering Memorandum or the
Offering Memorandum shall be deemed to mean and include the filing of any document under the 1934 Act which is incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum. 

SECTION 16. Permitted Free Writing Documents 

The Company and each Guarantor represents, warrants and agrees that it has not made and, unless it obtains the prior written consent of the
Representative, it will not make, and each Initial Purchaser, severally and not jointly, represents, warrants and agrees that it has not made and, unless it obtains the prior written consent of the Company, the Guarantors and the Representative, it
will not make, any offer relating to the Securities that (if the offering of the Securities was made pursuant to a registered offering under the 1933 Act) would constitute an “Issuer Free Writing Prospectus” (as defined in Rule 433)
(any such document, a “Issuer Free Writing Document”) or that would constitute a “free writing prospectus” (as defined in Rule 405) which would be required to be filed with the Commission in connection with an
offering registered under the 1933 Act; provided that the prior written consent of the Company, the Guarantors and the Representative shall be deemed to have been given in respect of the Issuer Free Writing Documents, if any, listed on
Exhibit E hereto and to any electronic road show in the form previously provided by the Company to and approved by the Representative. 

  
 33 

 SECTION 17. Absence of Fiduciary Relationship 

The Company and each Guarantor acknowledge and agree that: 

(a)    each of the Initial Purchasers is acting solely as an initial purchaser in connection with the sale of the
Securities and no fiduciary, advisory or agency relationship between the Company and any Guarantor, on the one hand, and any of the Initial Purchasers, on the other hand, has been created in respect of any of the transactions contemplated by this
Agreement, irrespective of whether or not any of the Initial Purchasers has advised or is advising the Company or any Guarantor on other matters (it being understood that in any event no Initial Purchaser shall be deemed to have provided legal,
accounting or tax advice to the Company, any Guarantor or any of their respective subsidiaries); 
 (b)    the offering
price of the Securities and the price to be paid by the Initial Purchasers for the Securities set forth in this Agreement were established by the Company and the Guarantors following discussions and arms-length negotiations with the Representative;

 (c)    they are capable of evaluating and understanding, and understand and accept, the terms, risks and conditions
of the transactions contemplated by this Agreement; 
 (d)    they are aware that the Initial Purchasers and their
respective affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and the Guarantors and that none of the Initial Purchasers has any obligation to disclose such interests and
transactions to the Company or the Guarantors by virtue of any fiduciary, advisory or agency relationship or otherwise; 

(e)    the Company and the Guarantors have consulted their own legal and financial advisors to the extent they deemed
appropriate; and 
 (f)    they waive, to the fullest extent permitted by law, any claims they may have against any of
the Initial Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty and agree that none of the Initial Purchasers shall have any liability (whether direct or indirect, in contract, tort or otherwise) to them in respect of such a
fiduciary duty claim or to any person asserting a fiduciary duty claim on their behalf or in right of them or the Company, the Guarantors or any stockholders, employees or creditors of Company or any Guarantor. 

SECTION 18. Research Analyst Independence and Other Activities of the Initial Purchasers 

The Company and the Guarantors acknowledge that the Initial Purchasers’ research analysts and research departments are required to be
separate from, and not influenced by, their respective investment banking divisions and are subject to certain regulations and internal policies, and that such Initial Purchasers’ research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to the Company or the Guarantors and/or the offering that differ from the views of their respective investment banking divisions. The Company and the Guarantors hereby waive and
release, to the fullest extent permitted by applicable law, any claims that the Company or the Guarantors may have against the Initial Purchasers arising from the fact that the views expressed by their research analysts and research departments may
be different from or inconsistent with the views or advice communicated to the Company or the Guarantors by such Initial Purchasers’ investment banking divisions. The Company and the Guarantors also acknowledge that each of the Initial
Purchasers is a full service securities firm and as such from time to time, subject to applicable securities laws, may effect transactions for its own account or the account of its customers, may make

  
 34 

 
recommendations and provide other advice, and may hold long or short positions in debt or equity securities of, or derivative products related to, the companies that may be the subject of the
transactions contemplated by this Agreement and the Company and the Guarantors hereby waive and release, to the fullest extent permitted by applicable law, any claims that the Company or the Guarantors may have against the Initial Purchasers with
respect to any such other activities. 
 SECTION 19. Waiver of Jury Trial. 

The Company , the Guarantors and each of the Initial Purchasers hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 

SECTION 20. Consent to Jurisdiction. 

The Company and the Guarantors hereby submit to the non-exclusive jurisdiction of any U.S. federal
or state court located in the Borough of Manhattan, the City and County of New York in any action, suit or proceeding arising out of or relating to or based upon this Agreement or any of the transactions contemplated hereby, and the Company and the
Guarantors irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding in any such court arising out of or relating to this Agreement or the transactions contemplated hereby and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding has been brought in an inconvenient forum. 

SECTION 21. Recognition of the U.S. Special Resolution Regimes. 

(a)    In the event that any Initial Purchaser is a Covered Entity and becomes subject to a proceeding under a U.S. Special
Resolution Regime, the transfer from such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution
Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States. 

(b)    In the event that any Initial Purchaser is a Covered Entity or a BHC Act Affiliate of such Initial Purchaser
becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against the Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be
exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States. 

(c)    For purposes of this Section 21, the following terms have the respective meanings set forth below: 

“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance
with, 12 U.S.C. § 1841(k). 

  
 35 

 “Covered Entity” means any of the following: 

(i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); 

(ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or 

(iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§
252.81, 47.2 or 382.1, as applicable. 
 “U.S. Special Resolution Regime” means each of (i) the Federal Deposit
Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder. 

[Signature Page Follows] 

  
 36 

 If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company and the Guarantors a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Initial Purchasers, the Company and the Guarantors in accordance with its terms. 

 

			
	Very truly yours,
	
	PATRICK INDUSTRIES, INC.
		
	By	 	 /s/ Joshua A. Boone

	Name:	 	Joshua A. Boone
	Title:	 	Vice President – Finance, Chief Financial Officer, Secretary and Treasurer

 
			
	ARRAN ISLE, INC.
	LASALLE BRISTOL CORPORATION
	BRISTOLPIPE, LLC
	HEYWOOD WILLIAMS USA, LLC
	LASALLE BRISTOL, LP
	DOWCO, INC.
	MARINE ACCESSORIES CORPORATION
	HIGHLAND LAKES ACQUISITION, LLC
	GREAT LAKES BOAT TOP LLC
	LASALLE BRISTOL, LLC
	XTREME MARINE CORPORATION
	MONSTER MARINE PRODUCTS, INC.
	DEHCO, INC.
	PATRICK TRANSPORTATION, LLC
	TRANSPORT INDIANA, LLC
	ADORN HOLDINGS, INC.
	KLS DOORS, LLC
	LARRY METHVIN INSTALLATIONS, INC.
	SHOWER ENCLOSURES AMERICA, INC.
	ALL COUNTIES GLASS, INC.
	ALL STATE GLASS, INC.
	BATHROOM & CLOSET, LLC
		
	By	 	 /s/ Joshua A. Boone

	Name:	 	Joshua A. Boone
	Title:	 	Authorized Signatory
	
	STRUCTURAL COMPOSITES, LLC
		
	By	 	 /s/ Andy L. Nemeth

	Name:	 	Andy L Nemeth
	Title:	 	Manager

  
 2 

			
	CONFIRMED AND ACCEPTED, as of the date first above written:
	
	WELLS FARGO SECURITIES, LLC
		
	By	 	 /s/ Peter Dilullo

	Name:	 	Peter Dilullo
	Title:	 	Authorized Signatory

 For itself and as Representative of the Initial Purchasers named in Exhibit A hereto. 

  
 3 

 EXHIBIT A 
  

					
	 Name of Initial Purchaser
	  	Principal
Amount of
Securities	 
	 Wells Fargo Securities, LLC
	  	$	127,500,000	 
	 BofA Securities, Inc.
	  	$	67,500,000	 
	 KeyBanc Capital Markets Inc.
	  	$	24,000,000	 
	 Capital One Securities, Inc.
	  	$	15,000,000	 
	 Fifth Third Securities, Inc.
	  	$	15,000,000	 
	 SunTrust Robinson Humphrey, Inc.
	  	$	15,000,000	 
	 U.S. Bancorp Investments, Inc.
	  	$	15,000,000	 
	 TD Securities (USA) LLC
	  	$	10,500,000	 
	 Robert W. Baird & Co. Incorporated
	  	$	3,000,000	 
	 C.L. King & Associates, Inc.
	  	$	3,000,000	 
	 CJS Securities, Inc.
	  	$	3,000,000	 
	 Sidoti & Company, LLC
	  	$	1,500,000	 
		  	  
	  
	 
	 Total
	  	$	300,000,000	 
		  	  
	  
	 

  
 A-1 

 EXHIBIT B 

GUARANTORS 
 ADORN Holdings, Inc., a
Delaware corporation 
 ALL COUNTIES GLASS, INC., a California corporation 

ALL STATE GLASS, INC., a California corporation 
 Arran Isle,
Inc., an Indiana corporation 
 BATHROOM & CLOSET, LLC, a Nevada limited liability company 

Bristolpipe, LLC, an Indiana limited liability company 
 DEHCO,
INC., an Indiana corporation 
 Dowco, Inc., a Wisconsin corporation 

Great Lakes Boat Top LLC, a Delaware limited liability company 

Heywood Williams USA, LLC, an Indiana limited liability company 

Highland Lakes Acquisition, LLC, a Delaware limited liability company 

KLS DOORS, LLC, a California limited liability company 
 LARRY
METHVIN INSTALLATIONS, INC., a California corporation 
 LaSalle Bristol Corporation, an Indiana corporation 

LaSalle Bristol, LLC, a Delaware limited liability company 

LaSalle Bristol, LP, an Indiana limited partnership 
 Marine
Accessories Corporation, an Arizona corporation 
 Monster Marine Products, Inc., a Delaware corporation 

Patrick Transportation, LLC, an Indiana limited liability company 

SHOWER ENCLOSURES AMERICA, INC., a California corporation 

Structural Composites, LLC, an Indiana limited liability company 

Transport Indiana, LLC, an Indiana limited liability company 

Xtreme Marine Corporation, a Delaware corporation 

  
 B-1 

 EXHIBIT C 

None 

  
 C-1 

 EXHIBIT D 

FORM OF PRICING TERM SHEET 

PATRICK INDUSTRIES, INC. 

7.50% Senior Notes due 2027 

September 12, 2019 

This term sheet relates to the Preliminary Offering Memorandum dated September 9, 2019 (the “Preliminary Offering Memorandum”)
related to the offering of the Notes described below and should be read together with the Preliminary Offering Memorandum before making an investment decision with regard to the Notes. Capitalized terms used but not defined in this term sheet have
the meanings assigned to such terms in the Preliminary Offering Memorandum. 
  

			
	 Issuer:
	  	Patrick Industries, Inc.
		
	 Security Description:
	  	7.50% Senior Notes due 2027
		
	 Distribution:
	  	144A / Regulation S for life (no registration rights)
		
	 Aggregate Principal Amount:
	  	$300,000,000
		
	 Gross Proceeds to Issuer:
	  	$300,000,000
		
	 Maturity:
	  	October 15, 2027
		
	 Coupon:
	  	7.50%
		
	 Yield to Maturity:
	  	7.50%
		
	 Offering Price:
	  	100.00% of principal amount
		
	 Interest Payment Dates:
	  	April 15 and October 15, commencing April 15, 2020
		
	 Record Dates:
	  	April 1 and October 1
		
	 Equity Clawback:
	  	Up to 40% of the principal amount at 107.50%, plus accrued and unpaid interest to the redemption date, prior to October 15, 2022

  
 D-1 

			
		
	 Optional Redemption:
	  	Make-whole call at T+50 basis points at any time prior to October 15, 2022, plus accrued and unpaid interest to the redemption date, then:

  

					
		  	On or after October 15 of:	  	Price:
		  	2022	  	103.750%
			
		  	2023	  	101.875%
			
		  	2024 and thereafter	  	100.000%

  

			
		
	 Change of Control:
	  	Putable at 101% of principal, plus accrued and unpaid interest to the repurchase date
		
	 Trade Date:
	  	September 12, 2019
		
	 Expected Settlement Date:
	  	 (T+3); September 17, 2019
 Under Rule 15c6-1 under the Exchange Act, trades in the secondary market generally are required to settle in two business days unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to
trade the Notes on the date of pricing will be required, by virtue of the fact that the Notes initially will settle in T+3, to specify an alternative settlement cycle at the time of any such trade to prevent failed settlement. Purchasers of the
Notes who wish to trade the Notes on the date of pricing should consult their own advisors.

		
	 Rule 144A CUSIP / ISIN:
	  	703343AC7 / US703343AC76
		
	 Regulation S CUSIP / ISIN:
	  	U70335AA9 / USU70335AA91
		
	 Denominations/Multiple:
	  	$2,000 / $1,000
		
	 Joint Book-Running Managers:
	  	 Wells Fargo Securities, LLC
 BofA Securities,
Inc.
 KeyBanc Capital Markets Inc.

		
	 Co-Managers:
	  	 Capital One Securities, Inc.
 Fifth Third
Securities, Inc.
 SunTrust Robinson Humphrey, Inc.
 TD
Securities (USA) LLC
 U.S. Bancorp Investments, Inc.
 Robert W.
Baird & Co. Incorporated
 C.L. King & Associates, Inc.

CJS Securities, Inc.
 Sidoti & Company, LLC

 *    *    * 

  
 D-2 

 The Notes and related guarantees have not been registered under the U.S. Securities Act of
1933, as amended (the “Securities Act”) or any state or foreign securities laws. The Notes and related guarantees are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule
144A under the Securities Act and outside the United States solely to non-U.S. persons in reliance on Regulation S under the Securities Act. The Notes and related guarantees may not be offered or sold in the
United States or to U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. 

This term sheet is confidential and is for your information only and is not intended to be used by anyone other than you. This term sheet does
not purport to be a complete description of the Notes and related guarantees and is qualified in its entirety by reference to the Preliminary Offering Memorandum. The information in this term sheet supplements the Preliminary Offering Memorandum and
supersedes the information in the Preliminary Offering Memorandum to the extent inconsistent with the information in the Preliminary Offering Memorandum. 

This term sheet does not constitute an offer to sell or a solicitation of an offer to buy any security in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful. 
 Any disclaimer or other notice that may appear below is not applicable to this
communication and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by Bloomberg or another email system. 

  
 D-3 

 EXHIBIT E 

PRELIMINARY OFFERING MEMORANDUM AMENDMENTS; ISSUER FREE WRITING DOCUMENTS 

(1)    Pricing Term Sheet containing the terms of the Securities, substantially in the form of Exhibit D hereto. 

  
 E-1 

 EXHIBIT F-1 

FORM OF OPINION OF COMPANY COUNSEL 

 EXHIBIT F-2 

FORM OF OPINION OF INDIANA COUNSEL 

 EXHIBIT F-3 

FORM OF OPINION OF ARIZONA COUNSEL 

 EXHIBIT F-4 

FORM OF OPINION OF NEVADA COUNSEL 

 EXHIBIT F-5 

FORM OF OPINION OF WISCONSIN COUNSELExhibit 4.33.1

 

2016 STOCK OPTION PLAN (AS AMENDED1)

OF

INTER PARFUMS, INC. 

 

1. Purposes
of The Plan. This stock option plan (the “Plan”) is designed to provide an incentive to key employees, officers,
directors and consultants of Inter Parfums, Inc., a Delaware corporation (the “Company”), and its present and future
subsidiary corporations, as defined in Paragraph 17 (“Subsidiaries”), and to offer an additional inducement in obtaining
the services of such individuals. The Plan provides for the grant of “incentive stock options,” within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), nonqualified stock options and stock appreciation
rights (“SARs”).

 

2. Shares
Subject To The Plan. The aggregate number of shares of Common Stock, $.001 par value per share, of the Company (“Common
Stock”) for which options or SARs may be granted under the Plan shall not exceed 1,000,000, and the Company hereby reserves
50,000 shares of Common Stock to be available solely for issuance to Nonemployee Directors, as hereinafter defined, upon options
to be granted under 2016 Option Plan. Such shares may, in the discretion of the Board of Directors, consist either in whole or
in part of authorized but unissued shares of Common Stock or shares of Common Stock held in the treasury of the Company. The Company
shall at all times during the term of the Plan reserve and keep available such number of shares of Common Stock as will be sufficient
to satisfy the requirements of the Plan. Subject to the provisions of Paragraph 14, any shares subject to an option or SAR which
for any reason expire, are canceled or are terminated unexercised (other than those which expire, are canceled or terminated pursuant
to the exercise of a tandem SAR or option) shall again become available for the granting of options or SARs under the Plan. The
number of shares of Common Stock underlying that portion of an option or SAR which is exercised (regardless of the number of shares
actually issued) shall not again become available for grant under the Plan.

 

3. Administration
Of The Plan.

 

(a) The
Plan shall be administered by the Board of Directors, or if appointed, by a committee consisting of not less than two (2) members
of the Board of Directors, each of whom shall be a “Nonemployee Director” within the meaning of Rule 16b-3 promulgated
by the Securities and Exchange Commission. (The group administering the plan is referred to as the “Committee”). The
failure of any of the Committee members to qualify as a Nonemployee Director shall not otherwise affect the validity of the grant
of any option or SAR, or the issuance of shares of Common Stock otherwise validly issued upon exercise of any such option. A majority
of the members of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at
which a quorum is present, and any acts approved in writing by all members without a meeting, shall be the acts of the Committee.

 

 

1 As amended September 12, 2019, with
deleted text in strikethrough font and new text underlined.

 

     

     

    

 

(b) Subject
to the express provisions of the Plan, the Committee shall have the authority, in its sole discretion, to determine the individuals
who shall receive options and SARS; the times when they shall receive them; whether an option shall be an incentive or a nonqualified
stock option; whether an SAR shall be granted separately, in tandem with or in addition to an option; the number of shares to be
subject to each option and SAR; the term of each option and SAR; the date each option and SAR shall become exercisable; whether
an option or SAR shall be exercisable in whole, in part or in installments, and if in installments, the number of shares to be
subject to each installment; whether the installments shall be cumulative, the date each installment shall become exercisable and
the term of each installment; whether to accelerate the date of exercise of any installment; whether shares may be issued on exercise
of an option as partly paid, and, if so, the dates when future installments of the exercise price shall become due and the amounts
of such installments; the exercise price of each option and the base price of each SAR; the form of payment of the exercise price;
the form of payment by the Company upon the optionee’s exercise of an SAR; whether to require that the optionee remain in the employ
of, or in association with, the Company or its Subsidiaries for a period of time from and after the date the option or SAR is granted
to him; the amount necessary to satisfy the Company’s obligation to withhold taxes; whether to restrict the sale or other disposition
of the shares of Common Stock acquired upon the exercise of an option or SAR and to waive any such restriction; to subject the
exercise of all or any portion of an option or SAR to the fulfillment of contingencies as specified in the Contract (as described
in Paragraph 12), including without limitations, contingencies relating to financial objectives (such as, but not limited to, earnings
per share, cash flow return, return on investment or growth in sales) for a specified period for the Company, a division, a product
line or other category, and/or the period of continued employment of the optionee with the Company or its Subsidiaries, and to
determine whether such contingencies have been met; to construe the respective Contracts and the Plan; with the consent of the
optionee, to cancel or modify an option or SAR, provided such option or SAR as modified would be permitted to be granted on such
date under the terms of the Plan; and to make all other determinations necessary or advisable for administering the Plan. The determinations
of the Committee on the matters referred to in this Paragraph 3 shall be conclusive.

 

(c) Subject
to the express provisions of the Plan and solely with respect to employees or consultants of the Company who are not executive
officers or directors of the Company, the Committee hereby delegates to the Chief Executive Officer, and to act in place and on
behalf of the Committee, the authority to grant nonqualified options and SARs to such employees or consultants; to determine the
term of such nonqualified options and SARs; to determine whether an option or SAR shall be exercisable in whole, in part or in
installments; to determine whether to require that the optionee remain in the employ of, or association with, the Company or its
Subsidiaries for a period of time from and after the date the option or SAR is granted to such person; and to subject the exercise
of all or any portion of an option or SAR to the fulfillment of contingencies as specified in the Contract. Any such action by
the Chief Executive Officer shall be promptly reduced to writing and provided to the Committee.

 

(d) With
regard to option grants to Nonemployee Directors, the Plan shall be self-executing. However, subject to the express provisions
of the Plan, with regard to Nonemployee Directors, the Committee have the power to interpret the Plan; correct any defect, supply
any omission or reconcile any inconsistency in the Plan; prescribe, amend and rescind rules and regulations relating to the Plan;
and make all other determinations necessary or advisable for the administration of the Plan.

 

    2 

     

    

 

4. Eligibility.

 

(a) The
Committee may, consistent with the purposes of the Plan, grant incentive stock options to key employees (including officers and
directors who are employees) and nonqualified stock options and SARs to key employees, officers, directors and consultants of the
Company or any of its Subsidiaries from time to time, but not to Nonemployee Directors, who are to receive automatic grants of
nonqualified stock options without discretion of the Committee, as hereinafter set forth, within ten (10) years from the date of
adoption of the Plan by the Board of Directors, covering such number of shares of Common Stock as the Committee may determine;
provided that, the aggregate market value (determined at the time the stock option is granted) of the shares for which any
eligible person may be granted incentive stock options under the Plan or any plan of the Company, or of a Parent or a Subsidiary
of the Company which are exercisable for the first time by such optionee during any calendar year shall not exceed $100,000. Any
option (or portion thereof) granted in excess of such amount shall be treated as a nonqualified stock option.

 

(b) Notwithstanding
any other provision of the Plan, if the Committee determines that at the time a person is granted an option or SAR, such person
is then, or is likely to become, a Covered Person (as hereinafter defined), then the Committee may provide that this Section 4(b)
is applicable to such grant.

 

(i) Notwithstanding
any provision of this Plan, no person eligible to receive a grant of an option or SAR under this Plan shall be granted options
to purchase or an SAR in excess of 150,000 shares of common stock in any one fiscal year. Such 150,000 maximum number shall be
appropriately adjusted for stock splits, stock dividends and the like.

 

(ii) Notwithstanding
any provision of this Plan, the exercise price for all options and the base price for all SARs to be granted under the Plan, shall
not be less than the Fair Market Value (as hereinafter defined) at the time of grant.

 

(iii) The
term “Covered Person” shall mean a “covered employee” within the meaning of Code Section 162(m)(3) or any
successor provision thereto.

 

(c) Nonemployee
Directors shall not be eligible to receive a stock option or SAR grant in the discretion of the Committee. In lieu of such discretionary
grants, each Nonemployee Director shall receive the following option grants:

 

(i)Each individual
who becomes a Nonemployee Director, shall on the date of his initial election or appointment to the Board be granted an option
to purchase 2,000 shares of Common Stock.

 

(ii)Each Nonemployee
Director shall be granted an option to purchase 1,000 1,500 shares of Common Stock commencing on the next
February 1st, and each succeeding February 1st throughout the term of this Plan for so long as such person is a Nonemployee Director.
Notwithstanding the foregoing, no option shall be granted on such February 1st grant date to any Nonemployee Director who first
becomes a Nonemployee Director within six (6) months prior to such February 1st grant date. Notwithstanding the foregoing, if a
Nonemployee Director did not attend one of the two in-person board meetings that are usually held the prior June-July and December-January,
then the option to be granted on the following February 1, under this Plan would be reduced by 50%; and if such Nonemployee Director
did not attend both of such meetings, then such Nonemployee Director would not receive any option grant on the following February
1.

 

    3 

     

    

 

(iii)If a sufficient
number of shares of Common Stock reserved for issuance upon proper exercise of options to be granted to Nonemployee Directors on
the February 1st grant date does not exist, then the aggregate remaining number of shares shall be prorated equally among options
to be granted to all Nonemployee Directors at such February 1st grant date, and options shall be granted to purchase such reduced
number of shares. Notwithstanding the foregoing, if a sufficient number of shares of Common Stock reserved for issuance upon proper
exercise of options to be granted to Nonemployee Directors on the February 1st grant date does not exist, then options shall be
granted under any pre-existing Nonemployee Director plan in order to satisfy such deficiency, if, and to the extent available.

 

(iv)All options
that may be granted from time to time under the Plan to Nonemployee Directors shall vest and become exercisable to purchase shares
of Common Stock as follows: 25% one year after the date of grant, and then 25% on each of the second, third and fourth consecutive
years from the date of grant on a cumulative basis, so that each option shall become fully vested and exercisable on the fourth
year from the date of grant.

 

(v)It is the
express intent that options to be granted to Nonemployee Directors shall be first made under the 2004 Nonemployee Director Stock
Option Plan, as amended (the “2004 Nonemployee Director Plan”), until all shares of Common Stock under that plan have
been exhausted. Upon no further shares of Common Stock being available for grant under the 2004 Nonemployee Director Plan, then
options to purchase Common Stock to Nonemployee Directors are to be granted under this Plan.

 

(vi)All grants
under this Plan to Nonemployee Directors shall be in lieu of any other option grants that a Nonemployee Director may have been
entitled to under any other plan of the Company.

 

5. Exercise
Price And Base Price.

 

(a) The
exercise price of the shares of Common Stock under each option and the base price for each SAR shall be determined by the Committee;
provided that, in the case of

 

(i)Nonemployee
Directors, all options granted under this Plan shall have an exercise price equal to one hundred percent (100%) of the fair market
value of the Common Stock as hereinafter determined (“Fair Market Value”) on the date of grant, and

 

(ii)an incentive
stock option, the exercise price shall not be less than 100% of the Fair Market Value on the date of grant, and further provided,
that if, at the time an incentive stock option is granted, the optionee owns (or is deemed to own) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company, of any of its Subsidiaries or of a Parent,
then the exercise price shall not be less than 110% of the Fair Market Value subject to the option at the time of the granting
of such option.

 

    4 

     

    

 

(b) The
Fair Market Value on the date of grant shall be: (i) If the principal market for the Common stock is a national securities exchange,
then the closing price of the Common Stock on the last trading day immediately preceding the date of grant as reported by such
exchange; or (ii) if the principal market for the Common Stock is not a national securities exchange, then the Fair Market Value
shall be determined by the Committee by any method consistent with United States generally accepted accounting principles. The
determination of the Committee shall be conclusive in determining Fair Market Value.

 

6. Term.

 

(a) Except
as otherwise provided in this Plan, the term of each option and SAR granted pursuant to the Plan shall be as established by the
Committee, in its sole discretion. The term of each incentive stock option granted pursuant to the Plan shall be for a period not
exceeding ten (10) years from the date of grant thereof; provided that, if, at the time an incentive stock option is granted,
the optionee owns (or is deemed to own) stock possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, of any of its Subsidiaries or of a Parent, then the term of the incentive stock option shall be
for a period not exceeding five (5) years.

 

(b) For
options granted to Nonemployee Directors, the term of each option shall be five (5) years.

 

(c) 
Options shall be subject to earlier termination as hereinafter provided.

 

7. Exercise.

 

(a) An
option or SAR (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal
office (at present 551 Fifth Avenue, New York, NY 10176) stating whether an incentive or nonqualified stock option or SAR is being
exercised, specifying the number of shares as to which such option or SAR is being exercised, and in the case of an option, accompanied
by payment in full of the aggregate exercise price therefor (or the amount due on exercise if the Contract permits installment
payments) in the discretion of the Committee (i) in cash, by certified check or by wire transfer of funds through the Federal Reserve
System, (ii) with previously acquired shares of Common Stock having an aggregate fair market value, on the date of exercise, equal
to the aggregate exercise price of all options being exercised, or (iii) any combination thereof. In addition, upon the exercise
of a nonqualified stock option or SAR, the Company may withhold cash and/or shares of Common Stock to be issued with respect thereto
having an aggregate fair market value equal to the amount which it determined is necessary to satisfy its obligation to withhold
Federal, state and local income taxes or other taxes incurred by reason of such exercise. Alternatively, the Company may require
the holder to pay to the Company such amount, in cash, promptly upon demand. The Company shall not be required to issue any shares
pursuant to any such option or SAR until all required payments have been made. Fair market value of the shares shall be determined
in accordance with Paragraph 5.

 

    5 

     

    

 

(b) A
person entitled to receive Common Stock upon the exercise of an option or SAR shall not have the rights of a shareholder with respect
to such shares until the date of issuance of such shares; provided that, until such shares are issued, any option holder
using previously acquired shares in payment of an option exercise price shall have the rights of a shareholder with respect to
such previously acquired shares.

 

(c) In
no case may a fraction of a share be purchased or issued under the Plan. Any option granted in tandem with an SAR shall no longer
be exercisable to the extent the SAR is exercised, and the exercise of the related option shall cancel the SAR to the extent of
such exercise.

 

8. Stock
Appreciation Rights.

 

(a) An
SAR may be granted separately, in tandem with or in addition to any option, and may be granted before, simultaneously with or after
the grant of an option hereunder. In addition, the holder of an option may, in lieu of making the payment required at the time
of exercise under Paragraph 7, include in the written notice referred to therein an “election” to exercise the option
as an SAR. In such case, the Committee shall have fifteen (15) days from the receipt of notice of the election to decide, in its
sole discretion, whether or not to accept the election and notify the option holder of its decision. If the Committee consents,
then such exercise shall be treated as the exercise of an SAR with a base price equal to the exercise price.

 

(b) Upon
the exercise of an SAR, the holder shall be entitled to receive an amount equal to the excess of the Fair Market Value on the date
of exercise over the base price of the SAR. Such amount shall be paid, in the discretion of the Committee, in cash, Common Stock
having a Fair Market Value on the date of payment equal to such amount, or a combination thereof. For purposes of this Paragraph
8, Fair Market Value shall be determined in accordance with Paragraph 5.

 

9. Termination
of Association with the Company (Other Than Death or Permanent Disability).

 

(a) Any
holder of an incentive option whose association with the Company (and its Subsidiaries) has terminated for any reason other than
his death or permanent and total disability as defined in Section 22(e)(3) of the Code (“Permanent Disability”) may
exercise such option, to the extent exercisable on the date of such termination, at any time within three (3) months after the
date of termination, but in no event after the expiration of the term of the option; provided that, if such association
shall be terminated either (i) for cause, or (ii) without the consent of the Company, then said option shall terminate immediately.

 

(b) Except
with regard to stock options granted to Nonemployee Directors, any and all nonqualified stock options or SARs granted under the
Plan shall terminate simultaneously with the termination of association of the holder of such nonqualified option or SAR with the
Company (and its Subsidiaries) for any reason other than the death or Permanent Disability of such holder.

 

    6 

     

    

 

(c) Options
and SARs granted under the Plan shall not be affected by any change in the status of an optionee so long as he continues to be
associated with the Company or any of the Subsidiaries.

 

(d) Nothing
in the Plan or in any option or SAR granted under the Plan shall confer on any individual any right to continue to be associated
with the Company or any of its Subsidiaries, or interfere in any way with the right of the Company or any of its Subsidiaries to
terminate the holder’s association at any time for any reason whatsoever without liability to the Company or any of its Subsidiaries.

 

(e) 
If a Nonemployee Director to whom an option has been granted under the Plan shall cease to serve on the Board, otherwise than by
reason of death or Permanent Disability, then such option may be exercised (to the extent that the Nonemployee Director was entitled
to do so at the time of cessation of service) at any time within three (3) months after such cessation of service but not thereafter,
and in no event after the date on which, except for such cessation of service, the option would otherwise expire.

 

10. Death
or Permanent Disability of An Optionee.

 

(a) Except
with regard to options held by Nonemployee Directors, if an optionee dies while he is associated with the Company or any of its
Subsidiaries, or within three (3) months after such termination for the holder of an incentive option (unless such termination
was for cause or without the consent of the Company), then the remaining unexercised portion of the option or SAR may be exercised
in whole or in part (notwithstanding that the option or SAR had not yet become exercisable with respect to all or part of such
shares at the date of death, i.e., all vesting requirements shall lapse) by such person’s executor, administrator
or other person at the time entitled by law to the decedent’s rights under the option or SAR, at any time within one (1)
year after death, but in no event after the expiration of the term of the option or SAR.

 

(b) If
a Nonemployee Director to whom an option has been granted under the Plan shall die while he is serving on the Board, or within
three (3) months after cessation of service on the Board, then the remaining unexercised portion of the option may be exercised
in whole or in part (notwithstanding that the option had not yet become exercisable with respect to all or part of such shares
at the date of such death, i.e., all vesting requirements shall lapse) by such person’s executor, administrator or
other person at the time entitled by law to the decedent’s rights, at any time within one (1) year after his death, but in
no event after the date on which, except for such death, the option would otherwise expire.

 

(c) Except
with regard to options held by Nonemployee Directors, any holder whose association with the Company or its Subsidiaries has terminated
by reason of a Permanent Disability may exercise his option or SAR, to the extent exercisable upon the effective date of such termination,
at any time within one (1) year after such date, but in no event after the expiration of the term of the option or SAR.

 

    7 

     

    

 

(d) 
If a Nonemployee Director to whom an option has been granted under the Plan shall cease to serve on the Board by reason of a Permanent
Disability, then the remaining unexercised portion of the option may be exercised in whole or in part by the Nonemployee Director
(notwithstanding that the option had not yet become exercisable with respect to all or part of such shares at the date of such
Permanent Disability i.e., all vesting requirements shall lapse) at any time within one (1) year after such Permanent Disability,
but not thereafter, and in no event after the date on which, except for such Permanent Disability, the option would otherwise expire.

 

11. Compliance
With Securities Laws. The Committee may require, in its discretion, as a condition to the exercise of an option or SAR that
either (a) a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), with respect
to such shares shall be effective at the time of exercise or (b) there is an exemption from registration under the Securities Act
for the issuance of shares of Common Stock upon such exercise. Nothing herein shall be construed as requiring the Company to register
shares subject to any option or SAR under the Securities Act. In addition, if at any time the Committee shall determine in its
discretion that the listing or qualification of the shares subject to such option or SAR on any securities exchange or under any
applicable law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or
in connection with, the granting of an option or SAR, or the issue of shares thereunder, then such option or SAR may not be exercised
in whole or in part unless such listing, qualification, consent or approval shall have been effected or obtained free of any conditions
not acceptable to the Committee.

 

12. Stock
Option and SAR Contracts. Each option and SAR shall be evidenced by an appropriate Contract which shall be duly executed by
the Company and the optionee, and shall contain such terms and conditions not inconsistent herewith as may be determined by the
Committee, and which shall provide, among other things, (i) that the optionee agrees that he will remain in the employ of or association
with the Company or its Subsidiaries, at the election of the Company, for the later of (A) the period of time determined by the
Committee at or before the time of grant or (B) the date to which such optionee is then contractually obligated to remain associated
with the Company or its Subsidiaries, (ii) that in the event of the exercise of an option or an SAR which is paid with Common stock,
unless the shares of Common Stock received upon such exercise shall have been registered under an effective registration statement
under the Securities Act, such shares will be acquired for investment and not with a view to distribution thereof, and that such
shares may not be sold except in compliance with the applicable provisions of the Securities Act, and (iii) that in the event of
any disposition of the shares of Common Stock acquired upon the exercise of an incentive stock option within two (2) years from
the date of grant of the option or one (1) year from the date of transfer of such shares to him, the optionee will notify the Company
thereof in writing within 30 days after such disposition, pay the Company, on demand, in cash an amount necessary to satisfy its
obligation, if any, to withhold any Federal, state and local income taxes or other taxes by reason of such disqualifying disposition
and provide the Company, on demand, with such information as the Company shall reasonably request to determine such obligation.

 

    8 

     

    

 

13. Adjustment
of and Changes in Common Stock. 

 

(a) If
the outstanding shares of the Common Stock are increased, decreased, changed into, or exchanged for a different number or kind
of shares or securities of the Corporation through reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or the like, then an appropriate and proportionate adjustment shall be made in the (i) aggregate number and
kind of securities available under the Plan, and (ii) number and kind of securities issuable upon the exercise of all outstanding
options and SARs granted under the Plan, without change in the total price applicable to the unexercised portion of such options
or SARs, but with a corresponding adjustment in the exercise price or base price for each unit of any security covered by such
options or SARs.

 

(b) Upon
the dissolution or liquidation of the Corporation, or upon a reorganization, merger or consolidation of the Corporation with one
or more corporations as a result of which the Corporation is not the surviving corporation, or upon the sale of substantially all
of the assets of the Corporation, the Committee shall provide in writing in connection with such transaction for one or more of
the following alternatives, separately or in combination: (i) the assumption by the successor entity of the options theretofore
granted or the substitution by such entity for such options of new options or SARs covering the stock of the successor entity,
or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; or (ii) the continuance
of such option agreements by such successor entity in which such options shall remain in full force and effect under the terms
so provided.

 

(c) Any
adjustments under this Section 13 shall be made by the Committee, whose good faith determination as to what adjustments shall be
made, and the extent thereof, shall be final, binding and conclusive.

 

14. Amendments
and Termination of The Plan. The Plan was adopted by the Board of Directors on June 28, 2016. No options may be granted under
the Plan after June 27, 2026. The Board of Directors, without further approval of the Company’s stockholders, may at any time suspend
or terminate the Plan, in whole or in part, or amend it from time to time in such respects as it may deem advisable, including,
without limitation, in order that incentive stock options granted hereunder meet the requirements for “incentive stock options”
under the Code, or any comparable provisions thereafter enacted and conform to any change in applicable law or to regulations or
rulings of administrative agencies; provided that, no amendment shall be effective without the prior or subsequent approval
of a majority of the Company’s outstanding stock entitled to vote thereon which would (a) except as contemplated in Paragraph 13,
increase the maximum number of shares for which options may be granted under the Plan, (b) materially increase the benefits to
participants under the Plan or (c) change the eligibility requirements for individuals entitled to receive options hereunder. No
termination, suspension or amendment of the Plan shall, without the consent of the holder of an existing option affected thereby,
adversely affect his rights under such option.

 

15. Nontransferability
Of Options. No option or SAR granted under the Plan shall be transferable otherwise than by will or the laws of descent and
distribution, or qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security
Act, and options and SARs may be exercised, during the lifetime of the holder thereof, only by him or his legal representatives.
Except to the extent provided above, options and SARs may not be assigned, transferred, pledged, hypothecated or disposed of in
any way (whether by operation of law or otherwise) and shall not subject to execution, attachment or similar process.

 

    9 

     

    

 

16. Substitutions
and Assumptions of Options of Certain Constituent Corporations. Anything in this Plan to the contrary notwithstanding, the
Board of directors may, without further approval by the stockholders, substitute new options for prior options and new SARs for
prior SARs of a Constituent Corporation (as defined in Paragraph 17) or assume the prior options or SARs of such Constituent Corporation.

 

17. Certain
Definitions.

 

(a) The
term “Subsidiary” shall have the same definition as “subsidiary corporation” in Section 424(f) of the Code.

 

(b) The
term “Parent” shall have the same definition as “parent corporation” in Section 424(e) of the Code.

 

(c) The
term “Constituent Corporation” shall mean any corporation which engages with the Company, its Parent or Subsidiary, in
a transaction to which section 424(a) of the Code applies (or would apply if the option or SAR assumed or substituted were an incentive
stock option), or any Parent or any Subsidiary of such corporation.

 

18. 
Conditions Precedent. The Plan shall be subject to approval by the holders of a majority of shares of the Company’s capital
stock outstanding and entitled to vote thereon at the next meeting of its stockholders, or the written consent of the holders of
a majority of shares that would have been entitled to vote thereon, and no options or SARs granted hereunder may be exercised prior
to such approval, provided that the date of grant of any options granted hereunder shall be determined as if the Plan had not been
subject to such approval.

 

 

10

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