Document:

Exhibit 10.25

 Exhibit 10.25 
 LOAN AND SECURITY AGREEMENT 
 dated as of February 9, 2007

 among 
 SFA, INC. 
 And Its Subsidiaries, 
 as Borrowers 
 THE LENDERS FROM TIME TO TIME PARTY HERETO, 
 SUNTRUST BANK, 
 as
Administrative Agent, 
 and 
 SUNTRUST ROBINSON HUMPHREY, 
 A DIVISION OF SUNTRUST CAPITAL MARKETS, INC.,

 as Lead Arranger and Book Manager 

 TABLE OF CONTENTS 
 This Table of Contents is for convenience of reference only and is not intended to define, limit or describe the scope, intent or meaning of any provision of this Agreement. 
  

							
	Section	 	1	  	Definitions; Construction	 	1
				
		 	1.1	  	Definitions	 	1
		 	1.2	  	Classifications of Loans and Borrowings	 	26
		 	1.3	  	Accounting Terms and Determination	 	26
		 	1.4	  	Terms Generally	 	26
				
	Section	 	2	  	Loans and Letters of Credit	 	27
				
		 	2.1	  	Loans and Letters of Credit	 	27
		 	2.2	  	Revolving Loans	 	27
		 	2.3	  	Procedure for Revolving Loan Borrowings	 	27
		 	2.4	  	Swingline Commitment	 	28
		 	2.5	  	Procedure for Swingline Borrowing	 	28
		 	2.6	  	Letters of Credit	 	30
		 	2.7	  	Term Loan Commitments	 	34
		 	2.8	  	Reserved	 	34
		 	2.9	  	Funding of Borrowings	 	34
		 	2.10	  	Interest Elections	 	35
		 	2.11	  	Repayment of Loans	 	36
		 	2.12	  	Interest on Loans	 	37
		 	2.13	  	Fees	 	38
		 	2.14	  	Computation of Interest and Fees	 	39
		 	2.15	  	Evidence of Indebtedness	 	39
		 	2.16	  	Inability to Determine Interest Rates	 	39
		 	2.17	  	Illegality	 	40
		 	2.18	  	Increased Costs	 	40
		 	2.19	  	Funding Indemnity	 	42
		 	2.20	  	Taxes	 	42
		 	2.21	  	Optional Reduction and Termination of Commitments	 	45
		 	2.22	  	Optional Prepayments	 	45
		 	2.23	  	Mandatory Prepayments	 	46
		 	2.24	  	Prepayment Premium	 	47
		 	2.25	  	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 	47
		 	2.26	  	Mitigation of Obligations; Replacement of Lenders	 	50
				
	Section	 	3	  	Security	 	51
				
		 	3.1	  	Security Interest	 	51
		 	3.2	  	Representations and Warranties Concerning the Collateral	 	51
		 	3.3	  	Covenants Concerning the Collateral	 	52
		 	3.4	  	Perfection of Security Interest	 	54
		 	3.5	  	Power of Attorney	 	58
		 	3.6	  	Limitations on Obligations	 	58

							
	Section	 	4	  	Representations And Warranties	 	59
				
		 	4.1	  	Incorporation, Good Standing and Due Qualification	 	59
		 	4.2	  	Power and Authority	 	59
		 	4.3	  	Legally Enforceable Agreement	 	59
		 	4.4	  	Financial Statements	 	59
		 	4.5	  	Litigation; Environmental Matters	 	60
		 	4.6	  	Ownership and Liens	 	60
		 	4.7	  	ERISA	 	60
		 	4.8	  	Taxes	 	61
		 	4.9	  	Use of Proceeds and Letters of Credit	 	61
		 	4.10	  	Debt	 	61
		 	4.11	  	Debarment and Suspension	 	61
		 	4.12	  	Material Contracts	 	61
		 	4.13	  	Intellectual Property	 	61
		 	4.14	  	True and Complete Information	 	62
		 	4.15	  	Integrated Business	 	62
		 	4.16	  	Employee Relations	 	62
		 	4.17	  	Burdensome Provisions	 	62
		 	4.18	  	Absence of Defaults	 	62
		 	4.19	  	Reserved	 	62
		 	4.20	  	OFAC	 	62
		 	4.21	  	Patriot Act	 	63
		 	4.22	  	Survival of Representations and Warranties, Etc	 	63
				
	Section	 	5	  	Affirmative Covenants	 	63
				
		 	5.1	  	Maintenance of Existence	 	63
		 	5.2	  	Maintenance of Records	 	63
		 	5.3	  	Maintenance of Properties	 	63
		 	5.4	  	Conduct of Business	 	64
		 	5.5	  	Maintenance of Insurance	 	64
		 	5.6	  	Compliance with Laws; Taxes	 	64
		 	5.7	  	Right of Inspection	 	64
		 	5.8	  	Reporting Requirements	 	65
		 	5.9	  	Primary Operating Account	 	67
		 	5.10	  	Additional Collateral, etc.	 	68
		 	5.11	  	Further Assurances	 	69
		 	5.12	  	Interest Rate Protection	 	69
				
	Section	 	6	  	Negative Covenants	 	69
				
		 	6.1	  	Liens	 	69
		 	6.2	  	Debt	 	70
		 	6.3	  	Mergers, etc.	 	71
		 	6.4	  	Reserved	 	71
		 	6.5	  	Sale and Leaseback	 	71
		 	6.6	  	Restricted Payments	 	71

  

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		 	6.7	  	Sale of Assets	 	71
		 	6.8	  	Investments, Loans, etc	 	71
		 	6.9	  	Reserved	 	72
		 	6.10	  	Acquisitions	 	72
		 	6.11	  	Transactions with Affiliates	 	72
		 	6.12	  	Consolidated Tax Return	 	73
				
	Section	 	7	  	Financial Covenants	 	73
				
		 	7.1	  	Minimum Net Worth	 	73
		 	7.2	  	Maximum Funded Debt Ratio	 	73
		 	7.3	  	Fixed Charges Coverage Ratio	 	73
				
	Section	 	8	  	Conditions Of Lending	 	73
				
		 	8.1	  	Conditions Precedent to Closing	 	73
		 	8.2	  	Conditions Precedent to Subsequent Disbursements	 	76
		 	8.3	  	Conditions to Subsidiaries Becoming Borrowers	 	76
				
	Section	 	9	  	Default	 	77
				
		 	9.1	  	Events of Default	 	77
		 	9.2	  	Remedies upon Default	 	79
				
	Section	 	10	  	The Administrative Agent	 	83
				
		 	10.1	  	Appointment of Administrative Agent	 	83
		 	10.2	  	Nature of Duties of Administrative Agent	 	83
		 	10.3	  	Lack of Reliance on the Administrative Agent	 	84
		 	10.4	  	Certain Rights of the Administrative Agent	 	84
		 	10.5	  	Reliance by Administrative Agent	 	85
		 	10.6	  	Administrative Agent’s Reimbursement and Indemnification by Lenders	 	85
		 	10.7	  	The Administrative Agent in its Individual Capacity	 	85
		 	10.8	  	Successor Administrative Agent	 	86
		 	10.9	  	Authorization to Execute other Loan Documents	 	86
		 	10.10	  	Other Agents	 	86
				
	Section	 	11	  	Miscellaneous	 	87
				
		 	11.1	  	Notices	 	87
		 	11.2	  	Waiver; Amendments	 	88
		 	11.3	  	Expenses; Indemnification	 	90
		 	11.4	  	Successors and Assigns	 	91
		 	11.5	  	Governing Law; Jurisdiction; Consent to Service of Process	 	94
		 	11.6	  	WAIVER OF JURY TRIAL	 	95
		 	11.7	  	Right of Setoff	 	95
		 	11.8	  	Counterparts; Integration	 	95
		 	11.9	  	Survival	 	96
		 	11.10	  	Severability	 	96
		 	11.11	  	Confidentiality	 	96

  

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		 	11.12	  	Interest Rate Limitation	 	97
		 	11.13	  	Captions	 	97
		 	11.14	  	Use of Defined Terms	 	97
		 	11.15	  	Accounting Terms	 	97
		 	11.16	  	USA PATRIOT Act Notice	 	98
		 	11.17	  	Right of First Refusal	 	98

 Exhibits and Schedules: 
 Exhibit A - Borrowing Base Certificate 
 Exhibit B
- Covenant Compliance Certificate * 
 Exhibit C - Intellectual Property Assignment 
 Schedule 1 - Existing Lines of Credit 
 Schedule 3.2 - Inventory and Equipment 
 Schedule 4.7 - Multiemployer Plans 
 Schedule 4.13 - Intellectual Property 
 Schedule 4.16 - Collective Bargaining Agreements 
  

	*	Please note that the Covenant Compliance Certificate attached is the certificate most recently delivered by the Company pursuant to this agreement.

  

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 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT, dated as of the 9th day of February, 2007, is made by and among SFA. INC., a Maryland corporation (the “Company”). THE
ANALYSIS CORP., a Delaware corporation and a wholly owned Subsidiary (as defined below) of the Company (“TAC”), and each other Subsidiary that becomes a party to this Agreement from time to time in accordance with the provisions set
forth below (together with the Company and TAC, collectively, the “Borrowers,” and individually, a “Borrower”), the several banks and other financial institutions from time to time party hereto (the “Lenders”).
SUNTRUST ROBINSON HUMPHREY, a division of SunTrust Capital Markets, Inc., as Lead Arranger and Book Manager (in such capacity, the “Arranger”) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders
(in such capacity, the “Administrative Agent”). 
 RECITALS 
 The Borrowers have requested that the Lenders (a) establish a $16,500,000 revolving credit facility for; (b) establish a $7,500,000
swingline facility for; (c) make term loans in an aggregate principal amount of $18,000,000 to; and (d) issue letters of credit for the account of, the Borrowers. 
 The Lenders severally, to the extent of their respective Commitments, as defined herein, have agreed to provide severally such financing to
the Borrowers, subject to the terms and conditions of this Agreement. 
 Accordingly, for good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the Lenders, the Administrative Agent and the Borrowers agree as follows: 
 Section 1 Definitions; Construction 
 1.1 Definitions. As used in this Agreement, the
following terms shall have the meanings assigned to them below, which meanings shall be equally applicable to the singular and plural forms of the terms defined. 
 “Administrative Agent” shall have the meaning assigned to such term in the preamble to this Agreement. 
 “Administrative Fee” means a fee of $7,500 per year. 
 “Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, such specified Person. The
term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of common stock, by contract or otherwise. 

 “Aggregate Exposure” means with respect to any Lender at any time, an amount equal
to (a) until the Closing Date, the aggregate amount of such Lender’s Commitments at such time and (b) thereafter, the sum of (i) the aggregate then unpaid principal amount of such Lender’s Term Loans, and (ii) the
amount of such Lender’s Revolving Commitment then in effect or, if the Revolving Commitments have been terminated, the amount of such Lender’s Revolving Credit Exposure then outstanding. 
 “Aggregate Exposure Percentage” means, with respect to any Lender at any time, the ratio (expressed as a percentage) of such
Lender’s Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at such time. 
 “Aggregate
Revolving Commitment Amount” means the aggregate principal amount of the Aggregate Revolving Commitments from time to time. On the Closing Date, the Aggregate Revolving Commitment Amount equals $16,500,000. 
 “Aggregate Revolving Commitments” means, collectively, all Revolving Commitments of all Revolving Credit Lenders at any time
outstanding. 
 “Aging Report” means a schedule of all outstanding Receivables of the Borrowers showing the age of
such Receivables from the initial invoice date in intervals of 30 days. 
 “Agreement” means this Loan and Security
Agreement as the same may be amended, modified or supplemented from time to time. 
 “Applicable Add-Back” means, for
the purpose of determining the Fixed Charge Charges Coverage Ratio and the Funded Debt Ratio for the period of four consecutive fiscal quarters ending on any Test End Date, (a) for the Test End Date on March 31, 2007, $4,432,283, plus the
Option/SAR Payments, plus the Legal/Valuation Expenses plus the Built-in Gain Taxes, (b) for the Test End Date on June 30, 2007, $3,722,288, plus the Option/SAR Payments plus the Legal/Valuation Expenses plus the Built-in Gain Taxes, (c)
for Test End Date on September 30, 2007, $2,923,505, plus the Option/SAR Payments, plus the Legal/Valuation Expenses plus the Built-in Gain Taxes, (d) for the Test End Date on December 31, 2007, $1,601,225, plus the Option/SAR
Payments, plus the Legal/Valuation Expenses plus the Built-in Gain Taxes, and (e) for the Test End Date on March 31, 2008, and each Test End Date thereafter, zero. 
 “Applicable Lending Office” means, for each Lender and for each Type of Loan, the “Lending Office” of such Lender (or an
Affiliate of such Lender) designated on the signature page hereto, or such other office of such Lender (or Affiliate of such Lender) as such Lender may from time to time specify to the Administrative Agent and the Borrowers as the office by which
its Loans are to be made and maintained. 
 “Applicable Margin” and “Applicable Unused Fee Percentage” shall
mean the applicable percentage for the Applicable Margin and the Applicable Unused Fee Percentage corresponding to the applicable Funded Debt Ratio set forth below, as calculated by the Administrative Agent based on the Company’s financial
statements prepared in accordance with the provisions of Section 5.8 and delivered to the Administrative Agent. The Applicable Margin on the Closing 
  

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 Date shall be 2.60% with respect to the Revolving Loans and 2.80% with respect to the Term Loans. The
Applicable Unused Fee Percentage on the Closing Date shall be 0.25%. The Applicable Margin will be adjusted on quarterly basis in accordance with the table set forth below: 
  

										
	 Funded Debt Ratio
	  	Applicable Margin for
Revolving Loans	 	 	Applicable
Margin for
Term Loans	 	 	Applicable
Unused Fee
Percentage	 
	 Less than or equal to 1.50 to 1.
	  	1.60	% 	 	1.80	% 	 	0.10	% 
	 Greater than 1.50 to 1, and less than or equal to 2.00 to 1.
	  	1.90	% 	 	2.10	% 	 	0.15	% 
	 Greater than 2.00 to 1, and less than or equal to 2.50 to 1.
	  	2.25	% 	 	2.45	% 	 	0.20	% 
	 Greater than 2.5.0 to 1.
	  	2.60	% 	 	2.80	% 	 	0.25	% 

 The Applicable Margin and the Applicable Unused Fee Percentage will be adjusted to
the percentage corresponding to the applicable Funded Debt Ratio in effect as of the last day of each fiscal quarter of the Company. The adjustment will become effective as of the first day of the calendar month next succeeding delivery to the
Administrative Agent of the Company’s financial statements and Covenant Compliance Certificate for the last month of each fiscal quarter pursuant to Section 5.8. No decrease in the Applicable Margin or the Applicable Unused Fee Percentage
shall become effective if, at such time, any Event of Default has occurred and is continuing. If the Company’s financial statements are not delivered to the Administrative Agent within the specified time periods, the Applicable Margin and the
Applicable Unused Fee Percentage may be increased, at the option of the Administrative Agent, or upon written notice from the Required Lenders to the Administrative Agent and the Company, to the highest applicable percentage from the date on which
the statements were due through the date on which such statements are delivered to the Administrative Agent. In the event that any financial statement or Covenant Compliance Certificate delivered pursuant to Section 5.8 is shown to be
inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin or Applicable Unused Fee
Percentage for any period (an “Applicable Period”) than the Applicable Margin or Applicable Unused Fee Percentage applied for such Applicable Period, then (i) the Borrowers shall immediately deliver to the Administrative Agent a
correct Covenant Compliance Certificate for such Applicable Period, (ii) the Applicable Margin and the Applicable Unused Fee Percentage shall be as if the higher applicable percentage were applicable for such Applicable Period, and (iii) the
Borrowers shall immediately pay to the Agent the accrued additional interest and fee owing as a result of such increased Applicable Margin and Applicable Unused Fee Percentage for such Applicable Period, which payment shall be promptly applied by
the Agent in accordance with Section 2.25. The foregoing shall not limit the rights of the Administrative Agent and the Lenders with respect to Sections 2.12(b) or Section 9. 
  

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 “Asset Sale” means any Disposition of assets or series of related Dispositions of
assets (excluding at all times any such Disposition permitted by Section 6.7(a), (b), (c), (d) or (e)) which yields gross proceeds to the Company or any of its Subsidiaries (valued at the initial principal amount thereof in the case of
non-cash proceeds consisting of notes or other debt securities and valued at fair market value in the case of other non-cash proceeds) in excess of $250,000. 
 “Assignment of Claims Act” means, collectively the Assignment of Claims Act of 1940, as amended 31 U.S.C. § 3727, 41 U.S.C. § 15, any applicable rules, regulations and interpretations
issued pursuant thereto, and any amendments to any of the foregoing. 
 “Assumption Agreement” means an assumption
agreement, in form and substance acceptable to the Administrative Agent, executed by a Subsidiary that becomes a party to this Agreement in accordance with the provisions of Section 8.3 below, pursuant to which such Subsidiary agrees to be
bound by all of the terms and conditions of the Loan Documents as though it were an original signatory thereto. 
 “Base
Rate” means the higher of (i) the Prime Rate, and (ii) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent (0.50%). 
 “Base Rate Loan” means any Loan or portion thereof with respect to which the interest rate is calculated by reference to the Base Rate. 
 “Borrower” and “Borrowers” shall have the meanings assigned to such terms in the preamble to this Agreement. 

“Borrowing” means a borrowing consisting of (i) Loans of the same Class and Type made converted or continued on the same
date and in the case of LIBOR Loans, as to which a single Interest Period is in effect, or (ii) a Swingline Loan. 
 “Borrowing Availability” means, at any time, the lesser of the Borrowing Base or the Maximum Amount. 
 “Borrowing Base” means, at any time, (a) the sum of the following, without duplication. (1) 55% of amounts due with respect to Eligible Billed Receivables plus (2) 55% of amounts to become due with respect to
Eligible Unbilled Receivables. The Administrative Agent shall have, and reserves, the right at any time, in its reasonable discretion, to adjust the foregoing advance rate percentages and to establish reserves under the Borrowing Base. 

“Borrowing Base Certificate” means a certificate of the Company containing a computation of the Borrowing Base and certifying
that no Default or Event of Default has occurred and is continuing, and otherwise substantially in the form of Exhibit A attached hereto. 
 “Borrowing Base Obligations” means, at any time, outstanding Revolving Credit Exposure. 
  

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 “Built-in Gain Taxes” means the expense recorded in the fiscal quarter of the
Company ending on June 30, 2007 on account of the capital gains tax which becomes payable by the Company with respect to TAC as a result of the transactions consummated in connection with the Stock Purchase Agreement, to the extent such expense
has been deducted to determine Net Income of the Company and its Subsidiaries. 
 “Business Day” means any day other
than a Saturday, Sunday or other day on which commercial banks are authorized or required to close under the laws of the State, and with respect to the determination of LIBOR and the Index Rate, or if such day relates to a Borrowing of, a payment or
prepayment of principal or interest on, a conversion of or into, or an Interest Period for, a LIBOR Loan or a notice with respect to any of the foregoing, any day on which dealings in Dollars are carried on in the London interbank market.

 “Capital Expenditures” means for any period, with respect to any Person, the aggregate of all expenditures by such
Person and its Subsidiaries for the acquisition of fixed or capital assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) which should be capitalized under GAAP on a consolidated balance
sheet of such Person and its Subsidiaries. 
 “Capital Lease” means any lease that has been or should be capitalized
on the books of the lessee in accordance with GAAP. 
 “Capital Stock” means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the
foregoing. 
 “Cash Equivalents” means (a) marketable direct obligations issued by, or unconditionally guaranteed
by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits,
eurodollar time deposits or overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof
having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by Standard & Poor’s Ratings Services (“S&P”) or P-l by Moody’s Investors Service, Inc.
(“Moody’s”), or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six months from the
date of acquisition; (d) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days with respect to securities issued or fully
guaranteed or insured by the United States government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision taxing authority or 
  

 5 

 foreign government (as the case may be) are rated at least A by S&P or A by Moody’s;
(f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this definition; or
(g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition. 
 “Cash Flow Available for Fixed Charges” means, for as of any Test End Date. EBITDA for the period of four consecutive fiscal
quarters of the Company then ended, plus the Applicable Add-Back for such Test-End Date, minus income taxes paid in cash during such period, and minus Non-Financed Capital Expenditures for such period, all as determined on a
consolidated basis for the Company and its Subsidiaries in accordance with GAAP. 
 “Cash Management Swingline Loans”
shall have the meaning assigned to such term in Section 2.5(a). 
 “CFC” means a “controlled foreign
corporation” within the meaning of Section 957 of the Code. 
 “Change in Control” means the occurrence of
one or more of the following events: (a) any sale, lease, exchange or other transfer (in a single transaction or a series of related transactions) of all or substantially all of the assets of the Company to any Person or “group”
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder in effect on the date hereof), (b) the acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) of 51% or more of the outstanding shares of the voting
stock of the Company; or (c) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by Persons who were neither (i) nominated by the current board of directors or (ii) appointed by
directors so nominated; provided that the purchase of the Borrowers pursuant to the Stock Purchase Agreement shall not qualify as a Change of Control. 
 “Change in Law” means (i) the adoption of any applicable law rule, or regulation after the date of this Agreement, (ii) any change in any applicable law, rule or regulation, or any
change in the interpretation or application thereof, by any governmental authority after the date of this Agreement, or (iii) compliance by any Lender (or its Applicable Lending Office) or the Issuing Bank (or for purposes of
Section 2.18(b), by such Lender’s or the Issuing Bank’s holding company, if applicable) with any request, guideline or directive (whether or not having the force of law) of any governmental authority made or issued after the date
of this Agreement. 
 “Class” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are Revolving Loans, Swingline Loans, or Term Loans and when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment or a Term Loan Commitment.

 “Closing” means the initial disbursement of the Loans. 
  

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 “Closing Date” means the date of the Closing. 
 “Closing Liquidity” means the sum of (a) cash and Cash Equivalents, as carried on the books of the Borrowers on the Closing
Date in accordance with GAAP, plus (b) Net Borrowing Availability. 
 “Code” means the Internal Revenue Code of
1986, as amended from time to time, and all regulations issued pursuant thereto. 
 “Collateral” means the following
properties, assets and rights (if any) of each Borrower, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof: all personal and fixture property of every kind and nature including without
limitation all goods (including inventory, equipment and all accessions thereto), instruments (including promissory notes), documents, accounts (including health-care-insurance receivables), chattel paper (whether tangible or electronic), deposit
accounts, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims, securities and all other investment property, supporting obligations, any other contract rights or rights to the payment of
money, insurance claims and proceeds, tort claims, and all general intangibles (including all payment intangibles and Intellectual Property). 
 “Commitment” means a Revolving Commitment, a Swingline Commitment or a Term Loan Commitment, or any combination thereof (as the context shall permit or require). 
 “Commitment Termination Date” means the earliest of (i) February 9, 2010, (ii) the date on which the Revolving
Commitments are terminated pursuant to Section 2.21 and (iii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise), and any
extension or extensions thereof granted by all of the Lenders. 
 “Company” shall have the meaning assigned to such
term in the preamble to this Agreement. 
 “Covenant Compliance Certificate” means a certificate executed by a
Principal Officer of the Company, containing a calculation of the financial covenants contained in Section 7 below and certifying that no Default or Event of Default has occurred, substantially in the form of Exhibit B attached hereto.

 “Customer” means any Person obligated to make payments with respect to a Receivable or any other Collateral.

 “Customer List” means a schedule of all Customers of the Borrowers, showing the address of each Customer and a
listing of the active contracts between each Borrower and such Customer, which is otherwise in form and substance reasonably satisfactory to the Administrative Agent, however, in all cases, subject to exclusion of classified information. 

 

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 “Debt” means collectively, and includes, without duplication, with respect to any
specified Person, (a) indebtedness or liability for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of assets to another Person subject to an understanding or agreement, contingent or otherwise, to
repurchase such assets from such Person) or for the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business); (b) obligations as a lessee under a Capital Lease or a Synthetic Lease;
(c) obligations, contingent or otherwise, to reimburse the issuer of letters of credit or acceptances; (d) all Guaranties; (e) net obligations under Hedging Agreements; (f) obligations under any foreign exchange contract, currency
swap or other similar agreements or arrangements designed to protect that Person against fluctuations in currency values; (g) all preferred stock or similar equity interests issued by such Person which by the terms thereof could be (at the
request of the holders thereof or otherwise) subject to mandatory sinking fund payments, redemption or acceleration at any time during the term of this Agreement; (h) the amount of contingent obligations of such Person incurred in connection
with acquisitions (including, without limitation, obligations to make earnout payments or other contingent payments), in each case determined in accordance with GAAP, (i) obligations secured by any Lien on property owned by the specified
Person, whether or not the obligations have been assumed, provided that if such obligation or liability has not been assumed the maximum value of such debt shall be the lesser of (1) the fair market value of such property and (2) the
amount or such obligation or liability, and (j) Off-Balance Sheet Liabilities. The Debt of any Person shall include the Debt of any partnership or joint venture in which such Person is a general partner or a joint venturer, except to the extent
that the terms of such Debt provide that such Person is not liable therefor. 
 “Default” means any condition or event
that, with the giving of notice, the lapse of time, or both, would constitute an Event of Default. 
 “Default
Interest” shall have the meaning assigned to such term in Section 2.12(b). 
 “Deposit Account Assignment”
means the Deposit Account Assignment, of even date herewith, from the Holding Company in favor of the Administrative Agent. 
 “Disposition” means with respect to any assets, any sale, lease, sale and leaseback, assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and “Disposed of” shall have
correlative meanings. 
 “Dollars” and “$” means the lawful currency of the United States of America.

 “Domestic Subsidiary” means any Subsidiary of the Company organized under the laws of any jurisdiction within the
United States of America. 
 “EBITDA” means, for any period, (a) consolidated Net Income of the Company and its
Subsidiaries for such period plus, (b) to the extent deducted to determine such consolidated Net Income, the sum of (1) depreciation expense, (2) Interest Expense, (3) amortization expense and (4) tax expense, less
(c) to the extent added to determine such consolidated Net Income, extraordinary or unusual gains or other gains not incurred in the ordinary course of business, unrealized gains on Hedging Agreements and revenues from discontinued operations,
plus, (d) to 
  

 8 

 the extent deducted to determine such consolidated Net Income, extraordinary or unusual losses or other
losses not incurred in the ordinary course of business, unrealized losses on Hedging Agreements and expenses from discontinued operations. 
 “Eligible Billed Receivables” means Eligible Receivables that have been billed to the appropriate Customer, and are aged not greater than 90 days from the date of the initial invoice. For the
purposes of this definition, the term “initial invoice” shall mean the first invoice relating to the applicable goods shipped or services rendered, and not any subsequent invoice relating thereto. No Eligible Billed Receivable shall be
included in more than three month-end Borrowing Base calculations; provided, however, that with the consent of the Administrative Agent, an Eligible Billed Receivable may be included in four month-end Borrowing Base calculations if not more than 90
days have elapsed since the date of the initial invoice therefor. 
 “Eligible Receivables” means Receivables of a
Borrower (a) that represent valid obligations incurred by a Customer for software, goods or services licensed, shipped and delivered, installed or completed under valid contracts of license, sale, or service that have been formally awarded to a
Borrower for which all required contract documents have been executed by such Borrower and such Customer, and, if the Government is the Customer, for which funds have been appropriated and allocated; (b) that are due and payable not more than
30 days from the initial invoice; (c) on which the Customer is not an Affiliate or Subsidiary of a Borrower; (d) with respect to which no Borrower has knowledge or notice of any inability of the Customer to make full payment; (e) from
the face amounts of which have been deducted all payments, setoffs, amounts subject to adverse claims made in writing to a Borrower, contractual allowances, bad debt reserves and other credits applicable thereto; (f) that are subject to no
Liens other than those created or permitted by this Agreement or the other Loan Documents; (g) that continue to be in conformity in all material respects with the representations and warranties made by the Borrowers to the Lenders in this
Agreement; (h) with respect to which the Administrative Agent is and continues to be satisfied with the credit standing of the Customer; (i) on which the Customer is not a creditor of a Borrower; (j) on which the Customer is not a
Foreign Customer, unless the Foreign Customer’s obligations are secured by a letter of credit reasonably acceptable to the Administrative Agent, or the Administrative Agent gives written notice to the Company that it has determined, in its sole
discretion, to permit such Receivable to be included in the Borrowing Base if it otherwise is an Eligible Receivable; (k) that are not subject to any material dispute; (1) with respect to which the applicable software, goods or services
have been accepted by the applicable Customer on an absolute sale basis and not on a bill and hold sale basis, a consignment sale basis, a guaranteed sale basis, a sale or return basis or on the basis of any other similar understanding pursuant to
which a Borrower would repurchase or accept a return of, or give a credit for, any such software, goods or services; (m) that are not subject to any contingencies, other than final audits of costs incurred under Government Contracts; and
(n) that do not arise out of advance or progress billings unless (i) the terms of the contract between a Borrower and the Customer provide for payment in advance for services to be rendered during the term of the contract, and (ii) if
the applicable contract is not one to which the Government is a party, the applicable Customer’s obligation to make such payment is not refundable or subject to set off if such services are not performed; provided, however, and
without limiting any other provisions of this Agreement with respect to the exclusion of Receivables from the category of 
  

 9 

 Eligible Receivables and the Borrowing Base, that (1) if the Administrative Agent reasonably determines
that the collectibility of any Receivable makes it unacceptable for inclusion in the Borrowing Base and gives written notice to the Company indicating the reasons for such determination, then, until such exception is remedied, such Receivable shall
thereafter be excluded from the category of Eligible Receivables; (2) if more than 50% of the aggregate face amount of Receivables owed by a Customer are aged more than 90 days, then, until such exception is remedied, all Receivables owed by
such Customer shall be excluded from the category of Eligible Receivables; (3) if the aggregate face amount of Receivables owed by a Customer that are more than 90 days past due exceeds 10% of total billed Receivables, then all Receivables owed
by such Customer, at the Administrative Agent’s option, shall be excluded from the category of Eligible Receivables; (4) Eligible Receivables shall not include any Receivable representing or arising out of retainages, holdbacks, revenues
recognized or costs incurred in excess of approved or allowed reimbursement rates, cost overruns, unauthorized work or work beyond the scope of a contract, rebillings (other than rebillings to correct a mistake and which do not result in a change of
the original invoice date of the applicable Receivable) or contracts under which the applicable Borrower’s performance is secured by a surety bond; (5) if the proceeds of any Receivable or any portion thereof are to be paid to an escrow
agent for the benefit of any Person other than a Borrower or the Administrative Agent, such Receivable shall not be included as an Eligible Receivable; and (6) Receivables of a Subsidiary shall not become Eligible Receivables until such
Subsidiary becomes a Borrower in accordance with Section 8.3 of this Agreement. 
 “Eligible Unbilled
Receivables” shall mean all accounts receivable of a Borrower arising from work actually performed by such Borrower pursuant to Government Contracts which (a) would constitute Eligible Receivables, except such accounts receivable have not
been billed, (b) are eligible to be billed to in accordance with the Government Contracts (with no additional performance required by any Person, and no condition to payment by the Government, other than receipt of an appropriate invoice), and
(c) may, in accordance with GAAP, be included as current assets of the Borrowers, even though such amounts have not been billed. 
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by or with any governmental authority, relating
in any way to the environment, preservation or reclamation of natural resources, the management, Release or threatened Release of any Hazardous Material or to health and safety matters. 
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of
environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of any Borrower or any Subsidiary directly resulting from or based upon (a) any actual violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any actual exposure to any Hazardous Materials, (d) the Release or threatened Release of any
Hazardous Materials. 
  

 10 

 “Equity Issuance” means any issuance or sale by a Person of its Capital Stock or
other similar equity security, or any warrants, options or similar rights to acquire, or securities convertible into or exchangeable for, such Capital Stock or other similar equity security, excluding the issuance of Capital Stock by any Subsidiary
to another Subsidiary or to the Company. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and all regulations issued pursuant thereto. 
 “Event of Default” means any of the events
specified as an “Event of Default” under this Agreement, provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied. 
 “Excluded Collateral” means (a) any Government Contract or other contractual agreement, which by its terms or applicable law
may not be assigned, it being understood, however, that in such situations, the Administrative Agent’s security interest shall include (i) the entirety of each Borrower’s right, title and interest in and to all accounts, payment
intangibles and other proceeds directly or indirectly arising from such Government Contract or other contractual agreement, and (ii) all other rights and interests which any Borrower may lawfully convey to the Administrative Agent; (b) any
Borrower’s rights or interests in any license, contract or agreement to which such Borrower is a party or any of its rights or interests thereunder to the extent, but only to the extent, that (i) such a grant would, under the terms of such
license, contract or agreement, result in a breach of the terms thereof, or constitute a default thereunder, (ii) such license, contract or agreement was not entered into by the applicable Borrower with the intent to avoid granting a security
interest therein and (iii) such license, contract or agreement is a license, contract or agreement that typically places restrictions on the granting of a security interest therein; or (c) more than 65% of the total outstanding voting capital
stock of any CFC. 
 “Excluded Taxes” means with respect to the Administrative Agent, any Lender, the Issuing Bank or
any other recipient of any payment to be made by or on account of any obligation of a Borrower hereunder, (a) net income, profits, capital or franchise taxes imposed on such recipient by the United States of America, any state or political
subdivision thereof, or by the jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its Applicable Lending Office is located or where such recipient is
deemed to be doing business for tax purposes, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which any Lender is located, (c) any withholding tax that is
attributable to such recipient’s failure to comply with Sections 2.20 (e) and 2.20 (f) and (d) in the case of a Foreign Lender, any withholding tax that (i) is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party to this Agreement, and (ii) is imposed on amounts payable to such Foreign Lender at any time that such Foreign Lender designates a new lending office, other than taxes that have accrued prior to the
designation of such lending office that are otherwise not Excluded Taxes, and (e) interest and penalties with respect to such taxes. 
  

 11 

 “Existing Agreement” means that certain letter agreement, dated as of March 15,
2004, as amended, by and among SunTrust Bank, the Company and TAC. 
 “Facility” means each of (a) the Term Loan
Commitments and the Term Loans made hereunder, and (b) the Revolving Commitments and the extensions of credit made hereunder. 
 “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the
Federal Reserve System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be
the average rounded upwards, if necessary to the next 1/100th of 1% of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent. 
 “Fixed Charges” means, for the Company and its Subsidiaries for any period, the sum (without duplication) of (a) Interest
Expense for such period (provided, however, that for any period ending prior to the first anniversary of the Closing Date, Interest Expense shall be annualized from the Closing Date to the end of such period), and (b) current maturities of
long-term Debt, including Capital Leases, as of the end of such period and payable over the next succeeding period of four fiscal quarters; provided that for the principal payment of the Term Loans due on the Term Loan Maturity Date, the amount to
be included pursuant to this clause (b) shall be equal only to the principal installment due with respect to the Term Loans on the payment date immediately preceding the Term Loan Maturity Date. 
 “Fixed Charges Coverage Ratio” means, for each period of four consecutive fiscal quarters ending on any Test End Date, the ratio
of (a) Cash Flow Available for Fixed Charges for such period, to (b) Fixed Charges for such period. The foregoing shall be determined on a consolidated basis for the Company and its Subsidiaries in accordance with GAAP. 
 “Foreign Customer” means a Customer that is a foreign government, an entity organized under the laws of a country other than the
United States or an individual who is not a United States citizen. 
 “Foreign Lender” means any Lender that is not a
United States person under Section 7701(a)(3) of the Code. 
 “Foreign Subsidiary” means any Subsidiary of the
Company that is not a Domestic Subsidiary. 
 “Funded Debt” means, for any Person, the sum of the consolidated Debt of
such Person and its Subsidiaries, without duplication, for (a) borrowed money, (b) the deferred purchase price of property or services, (c) obligations under repurchase agreements, (d) Capital Lease obligations, (e) the
aggregate implied principal amount of Synthetic Lease obligations of such Person calculated in accordance with applicable federal income tax laws and regulations, (f) the amount of any outstanding Debt described in this definition of Funded
Debt which has been 
  

 12 

 Guaranteed by such Person, (g) contingent or matured reimbursement obligations for letters of credit
issued for the account of such Person or any Subsidiary of such Person, (h) all preferred stock or similar equity interests issued by such Person which by the terms thereof could be (at the request of the holders thereof or otherwise) subject
to mandatory sinking fund payments, redemption or acceleration at any time during the term of this Agreement, (i) the maximum amount of contingent obligations of such Person incurred in connection with acquisitions (including, without
limitation, obligations to make earnout payments) that are required to be reflected as liabilities in accordance with GAAP, and (j) any Debt incurred in the context of a partnership or a joint venture in which such Person or any Subsidiary of
such Person is a general partner or a joint venturer except to the extent that the terms of such Debt provide that such Person is not liable therefor, in each case determined in accordance with GAAP. 
 “Funded Debt Ratio” means, at any time, the ratio of (a) consolidated Funded Debt of the Company and its Subsidiaries then
outstanding to (b) consolidated EBITDA of the Company and its Subsidiaries for the period of four consecutive fiscal quarters of the Company ending on the most recently ended Test End Date, or in the case of calculations as of a Test End Date,
for the period of four consecutive fiscal quarters then ending, plus the Applicable Add-Back for such Test End Date. 
 “GAAP” means United States generally accepted accounting principles consistently applied. 
 “Government” means the United States of America or any agency or instrumentality thereof. 
 “Government
Contract” means any contract with the Government under which a Borrower is a prime contractor or a subcontractor. 
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any
other Person (the “primary obligor”) in any manner, whether directly or indirectly and including any obligation, direct or indirect, of the guarantor (a) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property securities or services for the purpose of assuring the owner of
such Debt or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Debt or other
obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued in support of such Debt or obligation; provided, that the term “Guarantee” shall not include endorsements for collection or
deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which Guarantee is made or, if not so stated or determinable,
the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has a corresponding meaning.

  

 13 

 “Hazardous Materials” means all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law. 
 “Hedging Agreement” means interest rate swap, cap
or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity agreements and other similar agreements or arrangements designed to protect against fluctuations in interest
rates, currency values or commodity values. 
 “Holding Company” means Global Technology Strategies, Inc., a Delaware
corporation. 
 “Indemnified Taxes” means Taxes other than Excluded Taxes and Other Taxes. 
 “Index Rate” means that rate per annum effective on any Index Rate Determination Date which is equal to the quotient of:

 (i) the rate per annum equal to the offered rate for deposits in U.S. Dollars for a one (1) month period, which rate
appears on that page of Bloomberg reporting service, or such similar service as determined by the Lender, that displays British Bankers’ Association interest settlement rates for deposits in U.S. Dollars, as of 11:00 a.m. (London, England time)
two (2) Business Days prior to the Index Rate Determination Date; provided, that if no such offered rate appears on such page, the rate used for such period will be the per annum rate of interest determined by the Administrative Agent to
be the rate at which U.S. Dollar deposits for such period, are offered to the Administrative Agent in the London Inter-Bank Market as of 11:00 a.m. (London, England time), on the day which is two (2) Business Days prior to the Index Rate
Determination Date, divided by 
 (ii) a percentage equal to 1.00 minus the maximum reserve percentages (including any
emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upward to the next 1/100th of 1%) in effect on any day to which the Administrative Agent is subject with respect to any Index Rate Loan pursuant to
regulations issued by the Board of Governors of the Federal Reserve System with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities” under Regulation D). This percentage will be adjusted automatically on and
as of the effective date of any change in any reserve percentage. 
 “Index Rate Determination Date” means the Closing
Date and the first Business Day of each calendar month thereafter. 
 “Index Rate Borrowing” and “Index Rate
Loan” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Index Rate. 
  

 14 

 “Intellectual Property” means – all copyrights – (whether registered or
unregistered), copyright registrations, trademarks, servicemarks, patents, patent applications and licenses to use any of the foregoing. 
 “Intellectual Property Assignment” means a Collateral Assignment, Patent Mortgage and Security Agreement in substantially the form of Exhibit C attached hereto, as the same may be amended,
modified or supplemented from time to time. 
 “Interest Expense” means, for any period, the sum of the following,
determined on a consolidated basis for the Company and its Subsidiaries in accordance with GAAP: (a) all interest in respect of Debt (including the interest component of any payments in respect of Capital Leases and Synthetic Leases) accrued or
capitalized during such period, plus (b) the net amount payable (or minus the net amount receivable) under any Hedging Agreement during such period. 
 “Interest Period” means (i) with respect to any LIBOR Borrowing, a period of one, two three or six months, and (ii) with respect to a Swingline Loan, a period of such duration not to
exceed five days, as the Company may request and the Swingline Lender may agree in accordance with Section 2.5; provided, that: 
 (i) the initial Interest Period for such Borrowing shall commence on the date of such Borrowing (including the date of any conversion from a Borrowing of another Type) and each Interest Period occurring
thereafter in respect of such Borrowing shall commence on the day on which the next preceding Interest Period expires; 
 (ii) if any Interest Period would otherwise end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless, in the case of a LIBOR Borrowing, such Business Day falls in another
calendar month, in which case such Interest Period would end on the next preceding Business Day; 
 (iii) any
Interest Period in respect of a LIBOR Borrowing which begins on the last Business Day of a calendar month or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on the last
Business Day of such calendar month; 
 (iv) each principal installment of the Term Loans shall have an Interest
Period ending on each installment payment date and the remaining principal balance (if any) of the Term Loans shall have an Interest Period determined as set forth above; and 
 (v) no Interest Period may extend beyond the Commitment Termination Date, the Term Loan Maturity Date or the Swingline
Termination Date, as the case may be. 
  

 15 

 “Issuing Bank” means SunTrust Bank or any other Lender, each in its capacity as an
issuer of Letters of Credit pursuant to Section 2.6. 
 “LC Commitment” means that portion of the Aggregate
Revolving Commitments that may be used by the Borrowers for the issuance of Letters of Credit in an aggregate face amount not to exceed $500,000. 
 “LC Disbursement” means a payment made by the Issuing Bank pursuant to the terms of a Letter of Credit. 
 “LC Documents” means each Letter of Credit Agreement, the Letters of Credit and all other applications, agreements and instruments executed and delivered by any Borrower relating to the Letters
of Credit. 
 “LC Exposure” means, at any time, the sum of (i) the aggregate undrawn amount of all outstanding
Letters of Credit at such time, plus (ii) the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure of any Lender shall be its Revolving Credit Percentage of
the total LC Exposure at such time. 
 “Legal/Valuation Expenses” means the expense recorded in the fiscal quarters of
the Company ending on December 31, 2006 and March 31, 2007 on account of legal fees paid by the ESOP in connection with the Stock Purchase Agreement, legal fees paid by the Company in connection with the Stock Purchase Agreement and the
post-closing balance sheet valuation of the Company required by GAAP in connection with the Stock Purchase Agreement, in an aggregate amount not to exceed $850,000 for the Test End Dates on March 31, 2007, June 30, 2007 and
September 30, 2007, or $650,000 for the Test End Date on December 31, 2007, and in each case to the extent such expenses have been deducted to determine Net Income of the Company and its Subsidiaries. 
 “Lenders” shall have the meaning assigned to such term in the preamble to this Agreement, and shall include, where appropriate,
the Swingline Lender; it being expressly understood and agreed that the Swingline Lender shall not be included with respect to any determination of Required Lenders. 
 “Letter of Credit” means any letter of credit issued pursuant to Section 2.6 by the Issuing Bank for the account of any Borrower, pursuant to the LC Commitment, whether now outstanding or
issued after the date of this Agreement. 
 “Letter of Credit Agreement” means, collectively and individually, each
standard form of Application and Agreement for Irrevocable Standby Letter of Credit, to be executed and delivered by the Borrowers to the Issuing Bank in connection with each Letter of Credit, as any of the same may be amended, modified or
supplemented from time to time. 
 “LIBOR” means, with respect to any LIBOR Loan for any Interest Period, the rate per
annum obtained by dividing (i) Fixed LIBOR for such Interest Period (rounded upwards to the 
  

 16 

 next 1/100th of 1%) by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. For purposes hereof,
the term “Fixed LIBOR” means, for any applicable Interest Period with respect to any LIBOR Loan, the rate per annum for deposits in Dollars for a period equal to such Interest Period appearing on the display designated as Page 3750
on the Dow Jones Markets Service (or such other page on that service or such other service designated by the British Banker’s Association for the display of such Association’s Interests Settlement Rates for Dollar deposits) as of 11:00
a.m. (London England time) on the day that is two Business Days prior to the first day of the Interest Period or if such Page 3750 is unavailable for any reason at such time, the rate which appears on the Reuters Screen ISDA Page as of such date and
such time; provided, that if the Administrative Agent determines that the relevant foregoing sources are unavailable for the relevant Interest Period, LIBOR means the rate of interest determined by the Administrative Agent to be the average
(rounded upward, if necessary, to the nearest 1/100th of
1%) of the rates per annum at which deposits in Dollars are offered to the Administrative Agent two (2) Business Days preceding the first day of such Interest Period by leading banks in the London interbank market as of 10:00 a.m. London,
England time) for delivery on the first day of such Interest Period, for the number of days comprised therein and in an amount comparable to the amount of the LIBOR Loan of the Administrative Agent. “Eurodollar Reserve Percentage”
means the aggregate of the maximum reserve percentages (including, without limitation, any emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect on any day to which the Administrative Agent is
subject with respect to LIBOR pursuant to regulations issued by the Board of Governors of the Federal Reserve System (or any Governmental Authority succeeding to any of its principal functions) with respect to eurocurrency funding (currently
referred to as “eurocurrency liabilities” under Regulation D). LIBOR Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. The Administrative Agent’s
determination of Fixed LIBOR and the Eurodollar Reserve Percentage shall be conclusive and binding on the Company, its Subsidiaries and the Lenders absent manifest error. 
 “LIBOR Borrowing” and “LIBOR Loan” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate
determined by reference to LIBOR (other than an Index Rate Loan or an Index Rate Borrowing). 
 “Lien” means any
mortgage, deed of trust, pledge, security interest, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preference, priority or other security agreement, or preferential arrangement, escrow agreement (other
than the escrow agreement established by the Company pursuant to the Stock Purchase Agreement), charge or encumbrance of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any
Capital Lease, any Synthetic Lease and the filling of any financing statement under the UCC or comparable law of any jurisdiction to evidence any of the foregoing). 
  

 17 

 “Loan Documents” means this Agreement, each Notice of Borrowing, each Revolving
Note, each Term Note, the Deposit Account Assignment, each Assumption Agreement, each Intellectual Property Assignment, each Letter of Credit Agreement, each LC Document, each Hedging Agreement between any Borrower and the Administrative Agent or
any Lender or the Issuing Bank or any Affiliate of the Administrative Agent or any Lender or the Issuing Bank, any Mortgage and any other document now or hereafter executed or delivered in connection with the Obligations, in evidence thereof or as
security therefor, including, without limitation, any life insurance assignment, pledge agreement, security agreement, interest rate swap agreement or similar agreement, deed of trust, mortgage, guaranty, promissory note or subordination agreement.

 “Loans” means all Revolving Loans, Swingline Loans and Term Loans in the aggregate or any of them, as the context
may require, to be made by the Lenders to Borrowers pursuant to Section 2.1 of this Agreement. 
 “Material Adverse
Effect” means a material adverse effect on (a) the business, assets, results of operations, financial conditions, of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company and its Subsidiaries to perform its
obligations under any Loan Document, (c) the rights of or benefits available to the Administrative Agent, the Issuing Bank and the Lenders under any Loan Document, or (d) the legality, validity or enforceability of any of the Loan
Documents. 
 “Material Contract” means any contract or other arrangement (other than the Loan Documents) to which a
Borrower or any Subsidiary is a party (a) requiring payments by any party thereto of more than 10% per annum of the annual consolidated gross revenues of the Company and its Subsidiaries, or (b) as to which the breach, nonperformance,
cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect. 
 “Minimum Compliance Level” means the greater of $2,350,000 or 85% of Net Worth as of March 31, 2007, as reflected on the audited financial statement of the Company for the fiscal year then ended, and adjusted upward,
(a) effective as of the end of each fiscal year of the Company, beginning on March 31, 2008, by an amount equal to the sum of (i) 50% of the consolidated Net Income of the Company and its Subsidiaries for fiscal year then ended, with
each of the foregoing increases being fully cumulative, and with no reduction being made on account of any negative consolidated Net Income of the Company and its Subsidiaries for any period, plus (ii) the aggregate amount of all cash and other
consideration received by the Company or any Subsidiary in respect of any Equity Issuance during such period. 
 “Moody’s” shall mean Moody’s Investors Service, Inc., and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Moody’s” shall be
deemed to refer to any other nationally recognized securities rating agency designated by the Company with the consent of the Administrative Agent. 
 “Mortgage” means a mortgage or deed of trust made by any Borrower in favor of, or for the benefit of the Administrative Agent for the ratable benefit of the Lenders, in form and substance
acceptable to the Administrative Agent, as the same may be amended, supplemented or otherwise modified from time to time. 
  

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 “Net Borrowing Availability” means, at any time, the amount by which Borrowing
Availability exceeds the Borrowing Base Obligations. 
 “Net Cash Proceeds” means (a) in connection with any
Asset Sale or any Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment
receivable or otherwise, but only as and when received) of such Asset Sale or Recovery Event, net of attorneys’ fees, accountants’ fees, investment banking fees, professional advisors’ fees amounts required to be applied to the
repayment of Debt secured by a Lien expressly permitted hereunder on any asset which is the subject of such Asset Sale or Recovery Event (other than any Lien pursuant to a Loan Document) and other customary fees and expenses actually incurred in
connection therewith and net of taxes paid or reasonably estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements) and (b) in connection with any issuance or
sale of equity securities or debt securities or instruments or the incurrence of loans, the cash proceeds received from such issuance or incurrence, net of attorneys’ fees, investment banking fees, professional advisors’ fees, accountants
fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith. 
 “Net Income” means, for any Person for any period, the consolidated gross revenues of such Person and its Subsidiaries for such period less all consolidated operating and non-operating expenses (including taxes) of such Person and
its Subsidiaries for such period, all as determined in accordance with GAAP. 
 “Net Worth” means, for any Person as
of any date, (i) the total assets of such Person and its Subsidiaries that would be reflected on such Person’s consolidated balance sheet as of such date prepared in accordance with GAAP, after eliminating all amounts properly attributable to
minority interests, if any, in the stock and surplus of such Person’s Subsidiaries, minus the (ii) sum of (x) the total liabilities of such Persons and its Subsidiaries that would be reflected on such Person’s
consolidated balance sheet as of such date prepared in accordance with GAAP and (y) the amount of any write-up in the book value of any assets resulting from a revaluation thereof or any write-up in excess of the cost of such assets acquired
reflected on the consolidated balance sheet of such Person and its Subsidiaries as of such date prepared in accordance with GAAP. 
 “Non-Financed Capital Expenditures” means, for any Person, Capital Expenditures other than those financed within 30 days after incurrence with Debt (other than Revolving Loans or Swingline Loans) incurred by such Person, or
pursuant to a sale and leaseback transaction. 
 “Notes” means, collectively, the Revolving Notes, the Swingline Note
and the Term Notes. 
  

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 “Notice of Borrowing” means a written notice (or telephonic notice promptly
confirmed in writing) constituting a request for a Revolving Loan Borrowing, a Swingline Loan or the Term Loans, containing the specific requirements of Sections 2.3, 2.5 or 2.8, as the case may be. 
 “Notice of Conversion/Continuation” means the notice given by the Company to the Administrative Agent in respect of the conversion
or continuation of an outstanding Borrowing as provided in Section 2.10(b) hereof. 
 “Obligations” means
(a) the Loans, the LC Disbursements, the Revolving Notes, the Term Notes, the Letter of Credit Agreements, all indebtedness and obligations of a Borrower under this Agreement and the other Loan Documents and all other Debt and obligations of a
Borrower to the Administrative Agent, the Issuing Bank or any Lender (including the Swingline Lender), now existing or hereafter arising, of every kind and description, direct or indirect, fixed or contingent, liquidated or unliquidated, due or to
become due, secured or unsecured, joint, several or joint and several, as amended, modified, renewed, extended or increased from time to time, including without limitation, all principal, interest (including any interest accruing after the filing of
any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrowers, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), (b) any overdrafts
in any deposit account maintained by a Borrower with the Administrative Agent or any Lender (including the Swingline Lender), (c) any obligations arising under any Hedging Agreements between a Borrower and the Administrative Agent or any
Affiliate of the Administrative Agent, (d) any obligations under any purchasing card or credit card account established for a Borrower by the Administrative Agent or any Affiliate of the Administrative Agent, (e) any obligations of a Borrower
arising under any agreement between a Borrower and the Administrative Agent or any Affiliate of the Administrative Agent relating to foreign exchange transactions, (f) all reimbursement obligations, fees, expenses, indemnification and
reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent and any Lender) incurred pursuant to this Agreement or any other Loan Document, and (g) all obligations and liabilities incurred
in connection with collecting and enforcing the foregoing, together with all renewals, extensions, or modifications thereof. 
 “Off-Balance Sheet Liabilities” of any Person means (i) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any
sale and leaseback transactions which do not create a liability on the balance sheet of such Person, (iii) any liability of such Person under any Synthetic Lease transaction, or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person. 
 “Option/SAR Payments” means the expense recorded in the fiscal quarter of the Company ending on March 31, 2007 on account of payments made by the Company to retire options and stock
appreciation rights as required by the Stock Purchase Agreement, to the extent such expense has been deducted to determine Net Income of the Company and its Subsidiaries, but in no event greater than $23,000,000. 
  

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 “Other Taxes” means any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
 “Payment Office” means the office of the Administrative Agent located at 303 Peachtree Street, N.E.,
25th Floor, Atlanta, Georgia 30308, or such other location
as to which the Administrative Agent shall have given written notice to the Company and the other Lenders. 
 “Person”
means an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority, limited liability company or other entity of whatever nature. 
 “Primary Operating Account” means any deposit account or controlled disbursement account on which any Borrower draws to pay all or
substantially all of its operating expenses. 
 “Prime Rate” means the rate of interest established and announced from
time to time by the Administrative Agent and recorded in its Central Credit Administration Division as its Prime Rate, it being understood and agreed that the Prime Rate is used as a reference for fixing the lending rate on commercial loans and is
not necessarily the lowest or most favorable rate of interest charged by the Administrative Agent on such loans. The Administrative Agent may make commercial loans or other loans at rates of interest at, above or below its Prime Rate. Each change in
the Administrative Agent’s Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
 “Principal Officer” means the President, the Vice President of Finance, the Controller or the Assistant Controller of the Company or any Subsidiary. 
 “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, including, without limitation, Capital Stock. 
 “Purchase Price Refund” means any amount in
excess of $250,000 received by the Company or any Subsidiary as a result of a purchase price adjustment or similar event in connection with any acquisition or Disposition by the Company or any Subsidiary. 
 “Receivables” means all rights to payments for property sold or licensed or for services rendered, whether now owned or hereafter
acquired by the Company or any Subsidiary. 
 “Recovery Event” means any settlement of or payment in respect of any
property or casualty insurance claim or any condemnation proceeding relating to any asset of the Company or any of its Subsidiaries in excess of $250,000 in the aggregate during any fiscal year of the Company. 
 “Reinvestment Deferred Amount” means with respect to any Reinvestment Event, the aggregate Net Cash Proceeds received by the
Company or any of its Subsidiaries in connection therewith that are not applied to prepay the Loans as a result of the delivery of a Reinvestment Notice. 
  

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 “Reinvestment Event” means any Asset Sale, Purchase Price Refund or Recovery Event
in respect of which a Borrower has delivered a Reinvestment Notice. 
 “Reinvestment Notice” means a written notice
executed by a Principal Officer stating that no Event of Default has occurred and is continuing and that the Company (directly or indirectly through a Subsidiary) intends and expects to use all or a specified portion of the Net Cash Proceeds of an
Asset Sale, Purchase Price Refund or Recovery Event to acquire equipment or other fixed assets useful in its business and of the same or similar type as the assets subject to such Asset Sale, Purchase Price Refund or Recovery Event. 
 “Reinvestment Prepayment Amount” means with respect to any Reinvestment Event, the Reinvestment Deferred Amount relating thereto
less any amount expended prior to the relevant Reinvestment Prepayment Date to acquire equipment or other fixed assets useful in the business of the Company (directly or indirectly through a Subsidiary) and of the same or similar type as the assets
subject to such Reinvestment Event. 
 “Reinvestment Prepayment Date” means with respect to any Reinvestment Event,
the earlier of (a) the date occurring six months after such Reinvestment Event and (b) the date on which a Borrower shall have determined not to, or shall have otherwise ceased to, acquire assets useful in the Borrower’s business with
all or any portion of the relevant Reinvestment Deferred Amount. 
 “Related Acquisition Documents” means the
documents described or referred to in the Stock Purchase Agreement and related in any manner to the acquisition of the Capital Stock of the Company by the Holding Company in accordance with the terms of the Stock Purchase Agreement. 
 “Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal,
leaching or migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within any building, structure, facility or fixture. 
 “Required Lenders” means, at any time, Lenders holding more than 50% of the Aggregate Exposure of all Lenders. 
 “Restricted Payment” means (a) the declaration or payment of a dividend by the Company to its shareholders on any class of
the Company’s Capital Stock, or any payment by any Borrower on account of, or setting apart assets of any Borrower for a sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of, any shares
of Capital Stock of the Company now or hereafter outstanding, or (b) any payment by any Borrower on account of, or setting apart assets of any Borrower for a sinking fund or other analogous fund designated for, the purchase, redemption,
retirement or other acquisition by any Borrower of, any options, warrants, or other rights to purchase Capital Stock of the Company, whether now or hereafter outstanding, or (c) the making of any other distribution by reduction of capital or
otherwise in respect of any shares of the Capital Stock of the Company. 
  

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 “Revolving Commitment” means, with respect to each Lender, the obligation of such
Lender to make Revolving Loans to the Borrowers and to participate in Letters of Credit and Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to such Lender on the signature pages to this Agreement, or
in the case of a Person becoming a Lender after the Closing Date, the amount of the assigned “Revolving Commitment” as provided in an assignment and acceptance agreement, reasonably acceptable in form and substance to the Administrative
Agent and the Borrowers, executed by such Person as an assignee. 
 “Revolving Credit Exposure” means, with respect to
any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans, such Lender’s LC Exposure and such Lender’s Swingline Exposure. 
 “Revolving Credit Lender” means each Lender that has a Revolving Commitment or is the holder of Revolving Credit Exposure.

 “Revolving Credit Percentage” means as to any Revolving Credit Lender at any time, the percentage which such
Lender’s Revolving Commitment then constitutes of the aggregate Revolving Commitments (or, at any time after the Closing Date, the percentage which the aggregate principal amount of such Lender’s Revolving Credit Exposure then outstanding
constitutes of the aggregate principal amount of the Revolving Credit Exposures of all Lenders then outstanding). 
 “Revolving Loan” means a loan made by a Lender (other than the Swingline Lender) to the Borrowers under its Revolving Commitment, which may either be a Base Rate Loan or a LIBOR Loan. 
 “Revolving Note” means a promissory note payable to the order of a requesting Revolving Credit Lender, in form and substance
acceptable to the Administrative Agent and the requesting Revolving Credit Lender, in the principal amount of such Revolving Credit Lender’s Revolving Commitment, and evidencing the joint and several obligations of the Borrowers to repay the
Revolving Loans made by such Revolving Credit Lender, together with interest thereon, and all extensions, renewals, modifications and amendments of such note, made in accordance with the terms hereof. 
 “S&P” means Standard & Poor’s, a division of McGraw-Hill, Inc., a corporation organized and existing under the
laws of the State of New York, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other
nationally recognized securities rating agency designated by the Company with the consent of the Administrative Agent. 
  

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 “Seller” means Reliance Trust Company (the “Trustee”), solely in its
capacity as trustee under the SFA, Inc. Employee Stock Ownership Trust Agreement (the “Trust Agreement”) forming part of the SFA, Inc. Employee Stock Ownership Plan. 
 “State” means the State of New York. 
 “Stock Purchase Agreement” means the Stock Purchase Agreement among the Seller, the Holding Company and the Company, dated February 9, 2007, and pursuant to which the Holding Company agrees
to purchase the all of Capital Stock of the Company from the Seller. 
 “Stock Purchase Agreement Payments” means the
payments required to be made by the Company pursuant to Section 2.2 of the Stock Purchase Agreement. 
 “Subsidiary” as to any Person, means a corporation, partnership, limited partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock
or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Company. 
 “Swingline Commitment” means the commitment of the Swingline Lender to make Swingline
Loans in an aggregate principal amount at any time outstanding not to exceed $7,500,000, or such other amount as may be mutually agreed upon by the Borrowers and the Swingline Lender. 
 “Swingline Exposure” means, with respect to each Lender, the principal amount of the Swingline Loans with respect to which such
Lender is legally obligated either to make a Base Rate Loan or to purchase a participation in accordance with Section 2.5, which shall equal such Lender’s Revolving Credit Percentage of all outstanding Swingline Loans. 
 “Swingline Lender” means SunTrust Bank, or any other Lender that may agree to make Swingline Loans hereunder. 
 “Swingline Loan” means a loan made to the Borrowers by the Swingline Lender under the Swingline Commitment. 
 “Swingline Note” means the promissory note of the Borrowers payable to the order of the Swingline Lender in the principal amount
of the Swingline Commitment. 
 “Swingline Termination Date” means the earliest of (i) February 9, 2010,
(ii) the date on which the Revolving Commitments are terminated pursuant to Section 2.21 and (iii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether
by acceleration or otherwise) and any extension or extensions thereof granted by the Required Lenders. 
  

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 “Synthetic Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where the transaction is considered Debt for borrowed money for federal income tax purposes but is classified as an operating lease in accordance with GAAP for financial reporting
purposes. 
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any governmental authority. 
 “Term Loan” has the meaning assigned to such term in as defined
in Section 2.7. 
 “Term Loan Commitment” means as to any Lender, the obligation of such Lender, if any, to make
a Term Loan to the Borrowers hereunder in a principal amount not to exceed the amount set forth with respect to such Lender on the signature pages to this Agreement. The original aggregate amount of the Term Loan Commitments is $18,000,000.

 “Term Loan Lender” means each Lender that has a Term Loan Commitment or is the holder of a Term Loan. 

“Term Loan Maturity Date” means, with respect to the Term Loans, the earlier of (a) February 9, 2010, or (b) the
date on which the principal amount of all outstanding Term Loans have been declared or automatically have become due and payable (whether by acceleration or otherwise). 
 “Term Loan Percentage” means as to any Term Loan Lender at any time, the percentage which such Lender’s Term Loan Commitment then constitutes of the aggregate Term Loan Commitments (or, at
any time after the Closing Date, the percentage which the aggregate principal amount of such Lender’s Term Loans then outstanding constitutes of the aggregate principal amount of the Term Loans then outstanding). 
 “Term Note” means a promissory note payable to the order of a requesting Term Loan Lender, in form and substance acceptable to the
Administrative Agent and the requesting Term Loan Lender, in the principal amount of such Term Loan Lender’s Term Loan Commitment, and evidencing the joint and several obligations of the Borrowers to repay the Term Loan made by such Term Loan
Lender, together with interest thereon, and all extensions, renewals, modifications and amendments of such note, made in accordance with the terms hereof. 
 “Test End Date” means the last day of each fiscal quarter of the Company. 
 “Type,” when used in reference to a Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to LIBOR, the Index Rate or the Base Rate.

 “UCC” means the Uniform Commercial Code as adopted in the State, and all amendments thereto. 
  

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 “Unused Facility Balance” means, at any time, the amount by which the Aggregate
Revolving Commitment Amount exceeds the sum of outstanding Revolving Loans and Letters of Credit. 
 1.2 Classifications
of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan,” or “Term Loan”) or by Type (e.g., a “LIBOR Loan,” “Index Rate Loan”
or “Base Rate Loan”) or by Class and Type (e.g., “Revolving LIBOR Loan”). Borrowings also may be classified and referred to by Class (e.g., “Revolving Loan Borrowing”) or by Type (e.g., “LIBOR Borrowing”) or
by Class and Type (e.g., “Revolving LIBOR Borrowing”). 
 1.3 Accounting Terms and Determination. Unless
otherwise defined or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance
with GAAP as in effect from time to time, applied on a basis consistent (except for such changes approved by the Company’s independent public accountants) with the most recent audited consolidated financial statements of the Company delivered
pursuant to Section 5.8(c); provided, that if the Company notifies the Administrative Agent that the Borrower wishes to amend any covenant in Section 7 to eliminate the effect of any change in GAAP on the operation of such covenant
(or if the Administrative Agent notifies the Company that the Required Lenders wish to amend Section 7 for such purpose), then the Company’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately
before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Company and the Required Lenders. 
 1.4 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. In the computation of periods of time from a specified date to a later specified date, the word
“from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the words “hereof”, “herein” and “hereunder”
and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles,
Sections, Exhibits and Schedules to this Agreement and (v) all references to a specific time shall be construed to refer to the time in the city and state of the Administrative Agent’s principal office, unless otherwise indicated.

  

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 Section 2 Loans and Letters of Credit 
 2.1 Loans and Letters of Credit. Subject to the terms and conditions of this Agreement, (a) the Revolving Credit Lenders
hereby establish in favor of the Borrowers a revolving credit facility pursuant to which the Revolving Credit Lenders severally agree (to the extent of each Revolving Credit Lender’s Revolving Credit Percentage up to such Revolving Credit
Lender’s Revolving Commitment) to make Revolving Loans to the Borrowers in accordance with Section 2.2; (b) the Issuing Bank agrees to issue Letters of Credit for the account of the Borrowers in accordance with Section 2.6;
(c) the Swingline Lender agrees to make Swingline Loans in accordance with Section 2.4; (d) each Revolving Credit Lender severally agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant
to the terms and conditions hereof; provided, that in no event shall the aggregate amount of Revolving Credit Exposure exceed at any time the Aggregate Revolving Commitments from time to time in effect; and (e) each Term Loan Lender
severally agrees to make a Term Loan to the Borrowers in a principal amount not exceeding such Term Loan Lender’s Term Loan Commitment on the Closing Date. 
 2.2 Revolving Loans. Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make Revolving Loans to the Borrowers, from time to time until the
Commitment Termination Date in an aggregate principal amount at any one time outstanding that will not result in (a) such Revolving Credit Lender’s Revolving Credit Exposure exceeding such Revolving Credit Lender’s Revolving
Commitment, (b) the aggregate amount of the Revolving Credit Exposure outstanding exceeding the Aggregate Revolving Credit Commitments, or (c) the aggregate amount of the Borrowing Base Obligations outstanding exceeding the Borrowing Base.

 2.3 Procedure for Revolving Loan Borrowings. The Company, on behalf of the Borrowers, shall give the
Administrative Agent a Notice of Borrowing with respect to each Revolving Loan Borrowing (x) prior to 11:00 a.m. (Eastern time) one (l) Business Day prior to the requested date of each Base Rate Borrowing or Index Rate Borrowing and
(y) prior to 11:00 a.m. (Eastern time) three (3) Business Days prior to the requested date of each LIBOR Borrowing. Each Notice of Borrowing under this Section shall be irrevocable and shall specify: (i) the aggregate principal amount
of such Revolving Loan Borrowing, (ii) the date of such Revolving Loan Borrowing (which shall be a Business Day), (iii) the Type of the Revolving Loans comprising such Borrowing, (iv) in the case of a LIBOR Borrowing, the duration of
the initial Interest Period applicable thereto (subject to the provisions of the definition of Interest Period), and (v) at the option of the Administrative Agent, shall be accompanied by a current Borrowing Base Certificate and a current Aging
Report. Subject to the provisions of Section 2.10(e), each Revolving Loan Borrowing shall consist entirely of Base Rate Loans, Index Rate Loans or LIBOR Loans, as the Company may request, provided, that on the Closing Date all Revolving
Loans shall be Index Rate Loans. Promptly following the receipt of a Notice of Borrowing in accordance with this Section, the Administrative Agent shall advise each Revolving Credit Lender of the details thereof and the amount of such Revolving
Credit Lender’s Revolving Loan to be made as part of the requested Revolving Loan Borrowing. If required by the Administrative Agent, any request made by telephone shall include all of the information required by a current Borrowing Base
Certificate and a current Aging Report. Each Borrower appoints the Company as its agent to request and receive the proceeds of the 
  

 27 

 Revolving Loans on behalf of all Borrowers. The Company agrees to distribute the proceeds of the Revolving
Loans among the Borrowers when and as needed by the Borrowers for working capital. Revolving Loans may be requested by those individuals designated by the Company from time to time in written instruments delivered to the Administrative Agent;
provided, however, that the Borrowers shall remain liable with respect to any Revolving Loan disbursed by any Lender in good faith hereunder, even if such Revolving Loan is requested by an individual who has not been so designated. The
proceeds of each Revolving Loan will be credited to a deposit account maintained with the Administrative Agent by the Company. In addition to the foregoing, as long as SunTrust Bank is the only Revolving Credit Lender, it agrees to make Revolving
Loans to the Company from time to time in accordance with the treasury and cash management services and products provided to the Company by SunTrust Bank. 
 2.4 Swingline Commitment. Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Borrowers, from time to time from the Closing Date
to the Swingline Termination Date, in an aggregate principal amount outstanding at any time not to exceed the lesser of (i) the Swingline Commitment then in effect and (ii) the difference between the Aggregate Revolving Commitments and the
aggregate Revolving Credit Exposures of all Revolving Credit Lenders; provided, that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan; and further provided, that no Swingline Loan will be
disbursed by the Swingline Lender if, after such disbursement the aggregate Borrowing Base Obligations outstanding would exceed the Borrowing Base then in effect. The Borrowers shall be entitled to borrow, repay and reborrow Swingline Loans in
accordance with the terms and conditions of this Agreement. 
 2.5 Procedure for Swingline Borrowing. 

(a) The Swingline Lender agrees to make Swingline Loans to the Company from time to time in accordance with the treasury and cash
management services and products provided to the Company by the Swingline Lender (the “Cash Management Swingline Loans”). For other Swingline Loans, the Company, on behalf of the Borrowers, shall give the Administrative Agent a Notice of
Borrowing with respect to each Swingline Loan prior to 10:00 a.m. (Eastern time) on the requested date of each Swingline Borrowing. Each Notice of Borrowing under this Section shall be irrevocable and shall specify: (i) the principal amount of
such Swingline Loan, (ii) the date of such Swingline Loan (which shall be a Business Day), (iii) the Type of such Swingline Loan and (iv) the account of the Company to which the proceeds of such Swingline Loan should be credited. The
Administrative Agent will promptly advise the Swingline Lender of each such request and the details thereof. Each Cash Management Swingline Loan shall be made initially as an Index Rate Loan, and each other Swingline Loan shall be made as a Base
Rate Loan or an Index Rate Loan. The Swingline Lender will make the proceeds of each Swingline Loan available to the Borrowers in Dollars in immediately available funds at the account specified by the Company in the applicable request not later than
1:00 p.m. (Eastern time) on the requested date of such Swingline Loan. The Administrative Agent will notify the Lenders on a quarterly basis if any Swingline Loans occurred during such quarter. 
  

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 (b) The Swingline Lender, at any time and from time to time in its sole discretion,
may, on behalf of the Borrowers (which hereby irrevocably authorizes and directs the Swingline Lender to act on its behalf), give a Notice of Borrowing with respect to Revolving Loans to the Administrative Agent and the Company requesting the
Revolving Credit Lenders (including the Swingline Lender) to make Base Rate Loans in an amount equal to the unpaid principal amount of any Swingline Loan. Each Revolving Credit Lender will make the proceeds of its Base Rate Loan included in such
Borrowing available to the Administrative Agent for the account of the Swingline Lender in accordance with Section 2.9, which will be used solely for the repayment of such Swingline Loan. 
 (c) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not,
made in accordance with the foregoing provisions, then such Swingline Loan shall automatically be converted to a Base Rate Loan, upon notice from the Swingline Lender to the Administrative Agent and the Company, and each Revolving Credit Lender
(other than the Swingline Lender) shall purchase an undivided participating interest in such Swingline Loan in an amount equal to its Revolving Credit Percentage thereof on the date that such Base Rate Borrowing should have occurred. On the date of
such required purchase, each Revolving Credit Lender shall promptly transfer, in immediately available funds, the amount of its participating interest to the Administrative Agent for the account of the Swingline Lender. 
 (d) Each Revolving Credit Lender’s obligation to make a Base Rate Loan pursuant to Section 2.5(b) or to purchase the
participating interests pursuant to Section 2.5(c) shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such
Revolving Credit Lender or any other Person may have or claim against the Swingline Lender, any Borrower or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of any Revolving
Credit Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of any event or condition which has had or could reasonably be expected to have a Material Adverse Effect, (iv) any breach of this Agreement or any other
Loan Document by any Borrower, the Administrative Agent or any Revolving Credit Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available to
the Swingline Lender by any Revolving Credit Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Revolving Credit Lender, together with accrued interest thereon for each day from the date of demand thereof at
the Federal Funds Rate. Until such time as such Revolving Credit Lender makes its required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation for all purposes of
the Loan Documents. In addition, such Revolving Credit Lender shall be deemed to have assigned any and all payments made of principal and interest on its Loans and any other amounts due to it hereunder, to the Swingline Lender to fund the amount of
such Revolving Credit Lender’s participation interest in such Swingline Loans that such Revolving Credit Lender failed to fund pursuant to this Section, until such amount has been purchased in full. 
  

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 2.6 Letters of Credit. 
 (a) Until the Commitment Termination Date, the Issuing Bank, in reliance upon the agreements of the other Revolving Credit Lenders
pursuant to Section 2.6(d), agrees to issue, at the request of the Company, Letters of Credit for the account of the Borrowers on the terms and conditions hereinafter set forth; provided, that (i) each Letter of Credit shall expire
on the earlier of (A) the date one year after the date of issuance of such Letter of Credit (or in the case of any renewal or extension thereof, one year after such renewal or extension) and (B) the date that is five (5) Business Days
prior to the Commitment Termination Date (except pursuant to a clause whereby the Issuing Bank is entitled to terminate the Letter of Credit on an annual basis by giving prior written notice to the beneficiary thereof in accordance with the written
terms of such Letter of Credit): (ii) each Letter of Credit shall be in a stated amount of at least $50,000; and (iii) the Borrowers may not request any Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC
Exposure would exceed the LC Commitment, (B) the aggregate LC Exposure, plus the aggregate outstanding Revolving Loans of all Revolving Credit Lenders would exceed the Aggregate Revolving Commitments then in effect, or (c) the
outstanding Borrowing Base Obligations would exceed the Borrowing Base. Upon the issuance of each Letter of Credit each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank
without recourse a participation in such Letter of Credit equal to such Revolving Credit Lender’s Revolving Credit Percentage of the aggregate amount available to be drawn under such Letter of Credit. Each issuance of a Letter of Credit shall
be deemed to utilize the Revolving Commitment of each Revolving Credit Lender by an amount equal to the amount of such participation. 
 (b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of an outstanding Letter of Credit), the Company shall give the Issuing Bank and the Administrative Agent irrevocable written notice at least
three (3) Business Days prior to the requested date of such issuance specifying the date (which shall be a Business Day) such Letter of Credit is to be issued (or amended, extended or renewed, as the case may be), the expiration date of such
Letter of Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. In addition to the satisfaction of the
conditions precedent to the effectiveness of this Agreement, the issuance of such Letter of Credit (or any amendment which increases the amount of such Letter of Credit) will be subject to the further conditions that such Letter of Credit shall be
in such form and contain such terms as the Issuing Bank shall approve and that the Borrowers shall have executed and delivered any Letter of Credit Agreement relating to such Letter of Credit as the Issuing Bank shall reasonably require; provided,
that in the event of any conflict between such Letter of Credit Agreement and this Agreement, the terms of this Agreement shall control. 
 (c) At least two Business Days prior to the issuance of any Letter of Credit, the Issuing Bank will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent
has received such notice and if not, the Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the Issuing Bank has received notice from the Administrative Agent on or before the Business Day immediately preceding the date
the Issuing Bank is to issue the requested Letter of Credit (1) directing the Issuing Bank not to issue the Letter of Credit because such issuance is not then permitted hereunder because of the limitations 
  

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 set forth in Section 2.6(a) or (2) that one or more of the conditions precedent set forth in
Section 8 of this Agreement are not then satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall, on the requested date, issue such Letter of Credit in accordance with the Issuing Bank’s usual and customary
business practices. 
 (d) The Issuing Bank shall examine all documents purporting to represent a demand for payment
under a Letter of Credit promptly following its receipt thereof. The Issuing Bank shall notify the Company and the Administrative Agent of such demand for payment and whether the Issuing Bank has made or will make a LC Disbursement hereunder;
provided, that any failure to give or delay in giving such notice shall not relieve the Borrowers of their obligations to reimburse the Issuing Bank and the Revolving Credit Lenders with respect to such LC Disbursement. The Borrowers shall be
irrevocably and unconditionally obligated to reimburse the Issuing Bank for any LC Disbursements paid by the Issuing Bank in respect of such drawing upon the Issuing Bank’s written demand therefor, but otherwise without presentment, demand, or
other formalities of any kind. Unless the Company shall have notified the Issuing Bank and the Administrative Agent prior to 11:00 a.m. (Eastern time) on the Business Day immediately prior to the date on which drawing is honored that the Borrowers
intend to reimburse the Issuing Bank for the amount of such drawing in funds other than from the proceeds of Revolving Loans, the Borrowers shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent requesting the
Revolving Credit Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact amount due to the Issuing Bank. The Administrative Agent shall notify the Revolving Credit Lenders of such Borrowing in accordance with
Section 2.3, and each Revolving Credit Lender shall make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Issuing Bank in accordance with Section 2.9. The proceeds
of such Borrowing shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for such LC Disbursement. 
 (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Revolving Credit Lender (other than the
Issuing Bank) shall be obligated to fund the participation that such Revolving Credit Lender purchased pursuant to subsection (a) in an amount equal to its Revolving Credit Percentage of such LC Disbursement on and as of the date which such
Base Rate Borrowing should have occurred. Each Revolving Credit Lender’s obligation to fund its participation shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any setoff,
counterclaim, recoupment, defense or other right that such Revolving Credit Lender or any other Person may have against the Issuing Bank or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or
the termination of the Aggregate Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrowers or any of their Subsidiaries, (iv) any breach of this Agreement by any Borrower or any other
Revolving Credit Lender, (v) any amendment, renewal or extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. On the date that such participation is
required to be funded, each Revolving Credit Lender shall promptly transfer, in immediately available funds, the amount of its participation to the 
  

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 Administrative Agent for the account of the Issuing Bank. Whenever, at any time after the Issuing Bank has
received from any such Revolving Credit Lender the funds for its participation in a LC Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment on account thereof, the Administrative Agent or the Issuing Bank,
as the case may be, will distribute to such Revolving Credit Lender its Revolving Credit Percentage of such payment: provided, that if such payment is required to be returned for any reason to a Borrower or to a trustee, receiver, liquidator,
custodian or similar official in any bankruptcy proceeding, such Revolving Credit Lender will return to the Administrative Agent or the Issuing Bank any portion thereof previously distributed by the Administrative Agent or the Issuing Bank to it.

 (f) To the extent that any Revolving Credit Lender shall fail to pay any amount required to be paid pursuant to
paragraph (d) of this Section 2.6 on the due date therefor, such Revolving Credit Lender shall pay interest to the Issuing Bank (through the Administrative Agent) on such amount from such due date to the date such payment is made at a rate per
annum equal to the Federal Funds Rate: provided, that if such Revolving Credit Lender shall fail to make such payment to the Issuing Bank within three (3) Business Days of such due date, then, retroactively to the due date, such
Revolving Credit Lender shall be obligated to pay interest on such amount at the rate for Default Interest. 
 (g) If any Event of Default shall occur and be continuing, on the Business Day that the Company receives notice from the Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this
paragraph, the Borrowers shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the ratable benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and
unpaid interest thereon: provided, that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrowers described in Sections 9.1 (h) or 9.1 (i). Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the
Borrowers under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments
shall be made at the option and sole discretion of the Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest. Interest and profits, if any, on such investments shall accumulate in such account.
Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it had not been reimbursed and to the extent so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, with the consent of the Required Lenders, be applied to satisfy other obligations of the Borrowers under this Agreement. If the
Borrowers are required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not so applied as aforesaid) shall be returned to the Borrowers with three Business Days after
all Events of Default have been cured or waived. 
  

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 (h) Promptly following the end of each fiscal quarter, the Issuing Bank shall deliver
(through the Administrative Agent) to each Lender and the Company a report describing the aggregate Letters of Credit outstanding at the end of such fiscal quarter. Upon the request of any Lender from time to time, the Issuing Bank shall deliver to
such Lender any other information reasonably requested by such Lender with respect to each Letter of Credit then outstanding. 
 (i) The Borrowers’ obligations to reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under all circumstances
whatsoever and irrespective of any of the following circumstances: 
 (1) Any lack of validity or enforceability
of any Letter of Credit or this Agreement; 
 (2) The existence of any claim, set-off, defense or other right
which a Borrower or any Subsidiary or Affiliate of a Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or transferee may be acting), any Lender
(including the Issuing Bank) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction; 
 (3) Any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect
or any statement therein being untrue or inaccurate in any respect; 
 (4) Payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document to the Issuing Bank that does not strictly comply with the terms of such Letter of Credit; 
 (5) Any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrowers’ obligations hereunder; or 
 (6) The existence of a Default or an Event of Default. 
 (j) Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Affiliate of any of the foregoing shall have any
liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to above), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided, that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrowers to the extent of any 
  

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 direct damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Borrowers to the extent permitted by applicable law) suffered by the Borrowers that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts or other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree, that in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank
shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented that appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information
to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 
 (k) (Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued and subject to applicable laws, performance under Letters of Credit by the Issuing
Bank, its correspondents, and the beneficiaries thereof will be governed by the rules of the “International Standby Practices 1998” (ISP98) (or such later revision as may be published by the Institute of International Banking
Law & Practice on any date any Letter of Credit may be issued), and, to the extent not inconsistent therewith, the governing law of this Agreement set forth in Section 11.5. 
 2.7 Term Loan Commitments. Subject to the terms and conditions set forth herein, each Term Loan Lender severally agrees to
make a term loan (each, a “Term Loan”) to the Borrowers on the Closing Date in a principal amount not to exceed the Term Loan Commitment of such Term Loan Lender; provided, that if for any reason the full amount of such Term Loan
Lender’s Term Loan Commitment is not fully drawn on the Closing Date, the undrawn portion thereof shall automatically be cancelled. The execution and delivery of this Agreement by the Borrowers and the satisfaction of all conditions precedent
to the effectiveness of this Agreement shall be deemed to constitute the request of the Company and the other Borrowers to borrow the Term Loans on the Closing Date. 
 2.8 Reserved. 
 2.9 Funding of Borrowings. 

(a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in
immediately available funds by 11:00 a.m. (Eastern time) to the Administrative Agent at the Payment Office; provided that the Swingline Loans will be made as set forth in Section 2.5. The Administrative Agent will make such Loans
available to the Borrowers by promptly crediting the amounts that it receives, in like funds by the close of business on such proposed date, to an account maintained by the Company with the Administrative Agent or at the Company’s option, by
effecting a wire transfer of such amounts to an account designated by the Company to the Administrative Agent. 
  

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 (b) Unless the Administrative Agent shall have been notified by any Lender prior to
5:00 p.m. (Eastern time) one (1) Business Day prior to the date of a Borrowing in which such Lender is participating that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date, and the Administrative Agent, in reliance on such assumption, may make available to the Borrowers on such date a corresponding
amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender
together with interest at the Federal Funds Rate for up to two (2) days and thereafter at the rate specified for such Borrowing. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Company, and the Borrowers shall immediately pay such corresponding amount to the Administrative Agent together with interest at the rate specified for such Borrowing. Nothing in this
subsection shall be deemed to relieve any Lender from its obligation to fund its pro rata share of any Borrowing hereunder or to prejudice any rights which the Borrowers may have against any Lender as a result of any default by such Lender
hereunder. 
 (c) No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and
each Lender shall be obligated to make its Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder. 
 2.10 Interest Elections. 
 (a) On the Closing Date, each
Borrowing shall be an Index Rate Loan. After the Closing Date, each Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing, and in the case of a LIBOR Borrowing, shall have an initial Interest Period as specified in
such Notice of Borrowing. Thereafter, the Borrowers may elect to convert such Borrowing into a different Type or to continue such Borrowing and in the case of a LIBOR Borrowing may elect Interest Periods therefor, all as provided in this Section.
The Borrowers may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. Notwithstanding the foregoing, at no time shall the total number of LIBOR Borrowings outstanding exceed four (4) and the aggregate principal amount of each LIBOR Borrowing shall be not
less than $1,000,000 or a larger multiple of $500,000, and the aggregate principal amount of each Base Rate Borrowing and each Index Rate Borrowing shall not be less than $500,000 or a larger multiple of $100,000; provided, that Base Rate Loans and
Index Rate Loans made pursuant to Section 2.5 or Section 2.6(d) may be made in lesser amounts as provided therein. If a Notice of Borrowing does not specify a Type, the Borrowers shall be deemed to have requested an Index Rate Borrowing
with respect to Swingline Loans, and a Base Rate Borrowing with respect to any other Loans. 
 (b) To make an election
pursuant to this Section, the Company shall give the Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) 
  

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 of each Borrowing (a “Notice of Conversion/Continuation”) that is to be converted or continued, as
the case may be, (x) prior to 10:00 a.m. (Eastern time) one (1) Business Day prior to the requested date of a conversion into a Base Rate Borrowing and (y) prior to 11:00 a.m. (Eastern time) three (3) Business Days prior to a
continuation of or conversion into a LIBOR Borrowing. Each such Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which such Notice of Continuation/Conversion applies and if different options are
being elected with respect to different portions thereof, the portions thereof that are to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) shall be specified for
each resulting Borrowing): (ii) the effective date of the election made pursuant to such Notice of Continuation/Conversion, which shall be a Business Day, (iii) whether the resulting Borrowing is to be a Base Rate Borrowing, an Index Rate
Borrowing or a LIBOR Borrowing; and (iv) if the resulting Borrowing is to be a LIBOR Borrowing, the Interest Period applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of
“Interest Period.” If any such Notice of Continuation/Conversion requests a LIBOR Borrowing but does not specify an Interest Period, the Borrowers shall be deemed to have selected an Interest Period of one month. 
 (c) If, on the expiration of any Interest Period in respect of any LIBOR Borrowing, the Company shall have failed to deliver a Notice
of Conversion/Continuation when required by Section 2.10(b), then, unless such Borrowing is repaid as provided herein, the Borrowers shall be deemed to have elected to convert such Borrowing to a Base Rate Borrowing. No Borrowing may be
converted into, or continued as, a LIBOR Borrowing if a Default or an Event of Default exists, unless the Administrative Agent and the Required Lenders shall have otherwise consented in writing. 
 (d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall promptly notify each Lender of the details
thereof and of such Lender’s portion of each resulting Borrowing. 
 (e) Notwithstanding the foregoing provisions or
any other provision of this Agreement if there is more than one Lender, the Borrowers shall not have the right to obtain Index Rate Loans, and, unless all of the Lenders otherwise agree in writing, each Loan, other than Swingline Loans, shall be a
Base Rate Loan or a LIBOR Loan. 
 2.11 Repayment of Loans. 
 (a) The outstanding principal amount of all Revolving Loans shall be due and payable (together with accrued and unpaid interest
thereon) on the Commitment Termination Date. 
 (b) The principal amount of each Swingline Borrowing shall be due and
payable on the Swingline Termination Date. 
 (c) The Borrowers unconditionally promise to pay to the Administrative
Agent for the account of each Term Loan Lender the then unpaid principal amount of the Term Loans of such Term Loan Lender in equal consecutive quarterly installments of $900,000, each 
  

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 due on the first day of each January, April, July and October, beginning July 1, 2007. To the extent
not previously paid, the aggregate unpaid principal balance of the Term Loans, together with all accrued and unpaid interest thereon, shall be due and payable on the Term Loan Maturity Date. 
 2.12 Interest on Loans. 
 (a) The Borrowers shall pay interest on the unpaid principal amount of each Loan from the date of such Loan until such principal amount shall be paid in full, at the following rates per annum:

 (1) During such periods as such Loan is an Index Rate Loan, at a rate per annum equal to the Index Rate plus
the Applicable Margin in effect from time to time. The interest rate on Index Rate Loans shall be established based on the Index Rate in effect on the first Index Rate Determination Date, and shall be adjusted on each Index Rate Determination Date
thereafter to reflect the Index Rate then in effect. 
 (2) During such periods as such Loan is a Base Rate Loan,
a rate per annum equal at all times to the Base Rate in effect from time to time. The rate at which interest accrues on the unpaid principal balance of the Base Rate Loans shall be changed effective as of the date of any change in the Base Rate.

 (3) During such periods as such Loan is a LIBOR Loan, at a rate per annum equal to the LIBOR for the
applicable Interest Period plus the Applicable Margin in effect from time to time. The applicable LIBOR shall remain in effect until the end of the applicable Interest Period. 
 (b) While an Event of Default exists or after acceleration, the Borrowers shall pay interest (“Default Interest”) with
respect to all LIBOR Loans at the rate otherwise applicable for the then-current Interest Period plus an additional 2% per annum until the last day of such Interest Period, and thereafter, and with respect to all all other Obligations
hereunder, at the rate then in effect for Base Rate Loans, plus an additional 2% per annum. 
 (c) Interest
on the principal amount of all Loans shall accrue from and including the date such Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Base Rate Loans and Index Rate Loans shall be payable monthly in
arrears on the first day of each calendar month and on the Commitment Termination Date, the Swingline Termination Date or the Term Loan Maturity Date, as the case may be Interest on all outstanding LIBOR Loans shall be payable on the last day of
each Interest Period applicable thereto, and, in the case of any LIBOR Loans having an Interest Period in excess of three months, on each day which occurs every three months, after the initial date of such Interest Period, and on the Commitment
Termination Date or the Term Loan Maturity Date, as the case may be Interest on any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion or on the date of any such
repayment or prepayment (on the amount repaid or prepaid) thereof. All Default Interest shall be payable on demand. 
  

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 (d) The Administrative Agent shall determine each interest rate applicable to the
Loans hereunder and shall promptly notify the Company and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and binding for all purposes, absent manifest error.

 2.13 Fees. 
 (a) The Borrowers shall pay to the Administrative Agent and the Arranger, for their own respective accounts, fees in the amounts and at the times as may be agreed upon in writing by the Borrowers
and the Administrative Agent and the Arranger from time to time. 
 (b) In consideration of the Term Loan Lenders’
commitment to make the Term Loans, the Borrowers shall pay to the Administrative Agent on the Closing Date a non-refundable origination fee of 0.375% of the aggregate amount of the Term Loan Commitments for the pro rata benefit of each Term Loan
Lender. 
 (c) The Borrowers agree to pay to the Administrative Agent for its own account the Administrative Fee on the
Closing Date and each anniversary thereof. 
 (d) In consideration of the expenses incurred by the Lenders in connection
with administering the Loans and monitoring the Borrowing Base, the Borrowers agree to pay to the Administrative Agent for the account of each Revolving Credit Lender a fee on the Unused Facility Balance outstanding from time to time calculated at a
rate of the Applicable Unused Fee Percentage per annum, which fee shall accrue on a daily basis, beginning on the date of this Agreement, and shall be payable in arrears, on the first day of each January, April, July and October, beginning on
April 1, 2007, and on the Commitment Termination Date. 
 (e) The Borrowers agree to pay
(i) to the Administrative Agent, for the account of each Revolving Credit Lender, a letter of credit fee with respect to its participation in each Letter of Credit, which shall accrue at the Applicable Margin then applicable to Revolving LIBOR
Loans, on the average daily amount of such Revolving Credit Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable to such Letter of Credit during the period from and including the date
of issuance of such Letter of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full (including without limitation any LC Exposure that remains outstanding after the Commitment Termination Date) and (ii) to
the Issuing Bank for its own account a fronting fee, which shall accrue at the rate of 0.25% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable to
such Letter of Credit during the period from and including the date of issuance of such Letter of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full (including without limitation any LC Exposure that remains
outstanding after the Commitment Termination Date), as well as the Issuing Bank’s standard fees with respect to issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Accrued letter of credit and
fronting fees shall be payable quarterly in arrears on the first day of each January, April, July and October, commencing on the first such date next succeeding the Closing Date, and on the Commitment Termination Date (and if later, the date the LC
Exposure shall be repaid in its entirety). 
  

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 2.14 Computation of Interest and Fees. All computations of interest and fees
hereunder shall be made on the basis of a year of 360 days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable (to the extent computed on the basis of
days elapsed). Each determination by the Administrative Agent of an interest amount or fee hereunder shall be made in good faith and, except for manifest error, shall be final, conclusive and binding for all purposes. 
 2.15 Evidence of Indebtedness. 
 (a) Each Lender shall maintain in accordance with its usual practice appropriate records evidencing the
indebtedness of the Borrowers to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender from time to time under this Agreement. The
Administrative Agent shall maintain appropriate records in which shall be recorded (i) the Revolving Commitment and the Term Loan Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class and Type
thereof and the Interest Period applicable thereto, (iii) the date of each continuation thereof pursuant to Section 2.10, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to Section 2.10,
(v) the date and amount of any principal or interest due and payable or to become due and payable from the Borrowers to each Lender hereunder in respect of such Loans and (vi) both the date and amount of any sum received by the
Administrative Agent hereunder from the Borrowers in respect: of the Loans and each Lender’s pro rata share thereof. The entries made in such records shall be prima facie evidence of the existence and amounts of the obligations of the Borrowers therein recorded; provided, that the
failure or delay of any Lender or the Administrative Agent in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligations of the Borrowers to repay the Loans (both principal and unpaid
accrued interest) of such Lender in accordance with the terms of this Agreement. 
 (b) At the request of any Lender
(including the Swingline Lender) at any time, each Borrower agrees that it shall execute and deliver to such Lender a Revolving Note, and/or a Term Note and, in the case of the Swingline Lender only, a Swingline Note, payable to the order of such
Lender, in the applicable amount of such Lender’s Commitment. 
 2.16 Inability to Determine Interest
Rates. If prior to the commencement of any Interest Period for any LIBOR Borrowing or on the Index Rate Determination Date for any Index Rate Borrowing. 
 (1) the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrowers)
that, by reason of circumstances affecting the relevant interbank market, adequate means do not exist for ascertaining LIBOR for such Interest Period or the Index Rate on such Index Rate Determination Date, or 
  

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 (2) the Administrative Agent shall have received notice from any Lender that
the applicable LIBOR or the Index Rate, as applicable, does not adequately and fairly reflect the cost to such Lender of making, funding or maintaining its, as the LIBOR Loans for such Interest Period or its Index Rate Loans, as applicable.

 the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in writing) to the Company and to the Lenders as
soon as practicable thereafter. In the case of LIBOR Loans, until the Administrative Agent shall notify the Company and the Lenders that the circumstances giving rise to such notice no longer exist (which it shall promptly do), (i) the
obligations of the Lenders to make LIBOR Loans or Index Rate Loans or to continue or convert outstanding Loans as or into LIBOR Loans or Index Rate Loans shall be suspended and (ii) all such affected LIBOR Rate Loans shall be converted into
Base Rate Loans on the last day of the then current Interest Period applicable thereto, and all Index Rate Loans shall automatically be converted to Base Rate Loans, unless, in either case, the Borrowers prepay such Loans in accordance with this
Agreement. Unless the Company notifies the Administrative Agent at least one Business Day before the date of any LIBOR Revolving Loan Borrowing for which a Notice of Borrowing as to such Revolving Loan Borrowing has previously been given that the
Borrowers elect not to borrow on such date, then such Revolving Loan Borrowing shall be made as a Base Rate Borrowing. 
 2.17 Illegality. If any Change in Law shall make it unlawful or impossible for any Lender to make, maintain or fund any LIBOR Loan or Index Rate Loan and such Lender shall so notify the Administrative Agent, the
Administrative Agent shall promptly give notice thereof to the Company and the other Lenders, whereupon until such Lender notifies the Administrative Agent and the Company that the circumstances giving rise to such suspension no longer exist (which
it shall promptly do), the obligation of such Lender to make LIBOR Loans and Index Rate Loans, or to continue or convert outstanding Loans as or into LIBOR Loans or Index Rate Loans, shall be suspended. In the case of the making of a LIBOR Revolving
Loan Borrowing or Index Rate Revolving Loan Borrowing, such Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Loan Borrowing and if the affected LIBOR Loan or Index Rate Loan is then outstanding, such Loan
shall be converted to a Base Rate Loan either (i) on the last day of the then current Interest Period applicable to such LIBOR Loan if such Lender may lawfully continue to maintain such Loan to such date or (ii) immediately if such Lender
shall determine that it may not lawfully continue to maintain such LIBOR Loan to such date, and immediately in the case of an Index Rate Loan. Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the
Administrative Agent, designate a different Applicable Lending Office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its
discretion. 
 2.18 Increased Costs. 
 (a) Except with respect to Taxes, which are addressed in Section 2.20, if any Change in Law shall: 
 (1) impose, modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included in
the determination of LIBOR or the Index Rate hereunder against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Index Rate or LIBOR) or the Issuing Bank: or

  

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 (2) impose on any Lender or on the Issuing Bank or the eurodollar interbank
market any other condition affecting this Agreement or any Index Rate Loans or LIBOR Loans made by such Lender or any Letter of Credit or any participation therein; 
 and the result of the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining an Index Rate Loan or a LIBOR Loan or to increase the cost to such Lender or
the Issuing Bank of participating in or issuing any Letter of Credit or to reduce the amount received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or any other amount), then the Borrowers shall promptly
pay, upon written notice from and demand by such Lender on the Company (with a copy of such notice and demand to the Administrative Agent), to the Administrative Agent for the account of such Lender, within ten (10) Business Days after the date
of such notice and demand, the additional amount or amounts sufficient to compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) If any Lender or the Issuing Bank shall have determined that on or after the date of this Agreement any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital (or on the capital of such Lender’s or the Issuing Bank’s parent company) as a consequence of its
obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent company could have achieved but for such Change in Law (taking
into consideration such Lender’s or the Issuing Bank’s policies or the policies of such Lender’s or the Issuing Bank’s parent company with respect to capital adequacy) then, from time to time, within ten (10) Business Days
after receipt by the Company of written demand by such Lender (with a copy thereof to the Administrative Agent), the Borrowers shall pay to such Lender such additional amounts as will compensate such Lender or the Issuing Bank or such Lender’s
or the Issuing Bank’s parent company for any such reduction suffered. 
 (c) A certificate of a Lender or the
Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent company, as the case may be, specified in paragraph (a) or (b) of this
Section, and the calculation thereof, shall be delivered to the Company (with a copy to the Administrative Agent) and shall be conclusive, absent manifest error. The Borrowers shall pay any such Lender or the Issuing Bank, as the case may be, such
amount or amounts within 10 days after receipt thereof. 
  

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 (d) Failure or delay on the part of any Lender or the Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation. 
 2.19 Funding Indemnity. In the event of (a) the payment of any principal of a LIBOR Loan other than on the last day of the Interest Period applicable thereto (including as
a result of an Event of Default), (b) the conversion or continuation of a LIBOR Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure by the Borrowers to borrow, prepay, convert or continue any LIBOR
Loan on the date specified in any applicable notice (regardless of whether such notice is withdrawn or revoked), then, in any such event, the Borrowers shall compensate each Lender, within ten (10) Business Days after written demand from such
Lender, for any loss, cost or expense attributable to such event. In the case of a LIBOR Loan, such loss, cost or expense shall be deemed to include an amount determined by such Lender to be the excess, if any, of (A) the amount of interest
that would have accrued on the principal amount of such LIBOR Loan if such event had not occurred at LIBOR applicable to such LIBOR Loan for the period from the date of such event to the last day of the then current Interest Period therefor (or in
the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such LIBOR Loan) over (B) the amount of interest that would accrue on the principal amount of such LIBOR Loan for the same period
if LIBOR were set on the date such LIBOR Loan was prepaid or converted or the date on which the Borrowers failed to borrow, convert or continue such LIBOR Loan. A certificate as to any additional amount payable under this Section submitted to a
Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive, absent manifest error. 
 2.20
Taxes. 
 (a) Except as otherwise required by applicable Law, any and all payments by or
on account of any obligation of the Borrowers hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes: provided, that if the Borrowers shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable:
shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, any Lender or the Issuing Bank (as the case may be) shall receive
an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers shall pay the full amount deducted to the relevant governmental authority in
accordance with applicable law. 
 (b) In addition, the Borrowers shall pay any Other Taxes to the relevant governmental
authority in accordance with applicable law. 
 (c) The Borrowers shall indemnify the Administrative Agent, each Lender
and the Issuing Bank, within thirty (30) Business Days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with
respect to any payment by or on account of any obligation of the Borrowers hereunder (including Indemnified Taxes or Other Taxes 
  

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 imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant governmental authority. Notwithstanding the foregoing, the
Borrowers shall not be obligated to make payment to any of the Administrative Agent, Lender or Issuing Bank with respect to penalties, interest and expenses if (i) such amounts arose as a result of such party’s failure to timely pay such
Indemnified Taxes or Other Taxes, (ii) written demand therefore was not made within 60 days from the date on which such party received a written notice of the imposition of Indemnified Taxes or Other Taxes, (iii) such amounts arose or
accrued after the Borrowers’ satisfaction of their indemnification obligations under this Section 2.20(c), or (iv) such amounts are attributable to such party’s gross negligence or willful misconduct. A certificate prepared in
good faith as to the amount of such payment or liability delivered to the Borrowers by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest
error. 
 (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrowers to a
governmental authority, the Borrowers shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such governmental authority evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Any Foreign Lender that becomes a
party to this Agreement and that is entitled to an exemption from or reduction of withholding tax under the Code or any treaty to which the United States is a party with respect to payments under this Agreement shall deliver to the Borrowers (with a
copy to the Administrative Agent), at the time or times prescribed in this Section 2.20(e) or as otherwise prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by
the Borrowers as will permit such payments to be made without withholding or at a reduced rate. Without limiting the generality of the foregoing, each Foreign Lender agrees that it will deliver to the Administrative Agent and the Borrowers (or in
the case of a Participant, to the Lender from which the related participation shall have been purchased), as appropriate, two (2) duly completed copies of (i) Internal Revenue Service Form W-8 ECI, or any successor form thereto, certifying
that the payments received from the Borrowers hereunder are effectively connected with such Foreign Lender’s conduct of a trade or business in the United States; or (ii) Internal Revenue Service Form W-8 BEN, or any successor form thereto,
certifying that such Foreign Lender is entitled to benefits under an income tax treaty to which the United States is a party which reduces the rate of withholding tax on payments of interest; or (iii) Internal Revenue Service Form W-8 BEN, or
any successor form prescribed by the Internal Revenue Service, together with a certificate (A) establishing that the payment to the Foreign Lender qualifies as “portfolio interest” exempt from U.S. withholding tax under Code section
871(h) or 881(c), and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code section 881(c)(3)(A); (2) the Foreign Lender is not a 10% shareholder of a Borrower within the meaning of Code section 871(h)(3) or
881(c)(3)(B); and (3) the Foreign Lender is not a controlled foreign corporation that is related to a Borrower within the meaning of Code section 881(c)(3)(C); or (iv) such other Internal Revenue Service forms as may be applicable to the
Foreign Lender, including 
  

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 Forms W-8 IMY or W-8 EXP. Each such Foreign Lender shall deliver to the Borrowers and the Administrative
Agent such forms on or before the Closing Date or the date that it otherwise becomes a party to this Agreement (or in the case of a Participant, on or before the date such Participant purchases the related participation). In addition, each such
Foreign Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Foreign Lender. Each such Foreign Lender shall promptly notify the Borrowers and the Administrative Agent at any time that
it determines that it is no longer in a position to provide any previously delivered certificate to the Borrowers (or any other form of certification adopted by the Internal Revenue Service for such purpose). 
 (f) On or prior to the date any Lender or Issuing Bank becomes a party to this Agreement (or, in the case of any Participant, on or
before the date such Participant purchases the related participation), each Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the Code) (a “US Lender”) shall deliver to the Borrowers and the
Administrative Agent two accurate and complete copies of Internal Revenue Service Form W-9, or any subsequent versions or successors to such form. In addition, each such US Lender shall deliver such forms promptly upon the obsolescence or invalidity
of any form previously delivered by such US Lender. Each such US Lender shall promptly notify the Borrowers and the Administrative Agent at any time that it determines that it is no longer in a position to provide any previously delivered Forms to
the Borrowers (or any other form of certification developed by the Internal Revenue Service for such purpose). 
 (g) If
the Administrative Agent, any Lender or Issuing Bank determines, in its reasonable discretion, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by a Borrower or with respect to which a
Borrower has paid additional amounts pursuant to this Section 2.20, it shall reasonably promptly pay over such refund to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this
Section 2.20 with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent, such Lender or Issuing Bank and without interest (other than any interest
paid by the relevant governmental authority with: respect to such refund): provided that each Borrower, upon the request of the Administrative Agent, such Lender or Issuing Bank agrees to repay the amount paid over to such Borrower
(plus any penalties, interest or other charges imposed by the relevant governmental authority) to the Administrative Agent, such Lender or Issuing Bank in the event the Administrative Agent, such Lender or Issuing Bank is required to repay
such refund to such governmental authority; provided further that the Borrower shall not be required to repay the Administrative Agent, Lender or Issuing Bank an amount in excess of the amount paid over by such party to such Borrower
pursuant to this Section 2.20(g). This Section 2.20 shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to
any Borrower or any other Person. 
  

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 2.21 Optional Reduction and Termination of Commitments. 
 (a) Unless previously terminated, all Revolving Commitments shall terminate on the Commitment Termination Date, except that the
Swingline Commitment shall terminate on the Swingline Termination Date. The Term Loan Commitments shall terminate on the Closing Date upon the making of the Term Loans pursuant to the terms of this Agreement. 
 (b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) from
the Company to the Administrative Agent (which notice shall be irrevocable), the Borrowers may reduce the Aggregate Revolving Commitments in part or terminate the Aggregate Revolving Commitments in whole; subject to the payment of the premium, if
any, described in Section 2.24, provided, that (i) any partial reduction shall apply to reduce proportionately and permanently the Revolving Commitment of each Revolving Credit Lender, (ii) any partial reduction pursuant to
this Section 2.21 shall be in an amount of at least $500,000 and any larger multiple of $100.000, and (iii) no such reduction shall be permitted which would reduce the Aggregate Revolving Commitments, to an amount less than the outstanding
Revolving Credit Exposures of all Revolving Credit Lenders, after the application of any payments of the Revolving Loans on such date. Any such reduction in the Aggregate Revolving Commitments shall result in a reduction in the Swingline Commitment
to the extent that the Swingline Commitment would exceed the Aggregate Revolving Commitments as so reduced. 
 2.22
Optional Prepayments. The Borrowers shall have the right at any time and from time to time to prepay any Borrowing, in whole or in part, subject to the payment of the premium, if any, described in Section 2.24, by giving
irrevocable written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent no later than (i) in the case of prepayment of any LIBOR Borrowing. 11:00 a.m. (Eastern time) not Less than three (3) Business Days
prior to any such prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing or index Rate Borrowing, not less than one Business Day prior to the date of such prepayment, and (iii) in the case of Swingline Borrowings, prior to
11:00 a.m. on the date of such prepayment, provided that no notice shall be required for the prepayment of any Cash Management Swingline Loans, Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the
principal amount of each Borrowing or portion thereof to be prepaid. Upon receipt of any such notice, the Administrative Agent shall promptly notify each affected Lender of the contents thereof and of such Lender’s pro rata share of any such
prepayment. If such notice is given, the aggregate amount specified in such notice shall be due and payable on the date designated in such notice, together with accrued interest to such date on the amount so prepaid in accordance with
Section 2.12(c): provided, that if a LIBOR Borrowing is prepaid on a date other than the last day of an Interest Period applicable thereto, the Borrowers shall also pay all amounts required pursuant to Section 2.19. Each partial
prepayment of any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case of an advance of a Revolving Loan Borrowing of the same Type pursuant to Section 2.2 or in the case of a Swingline Loan pursuant to
Section 2.4. Each prepayment of a Borrowing shall be applied ratably to the Loans comprising such Borrowing, and in the case of a prepayment of a Term Loan Borrowing, to principal installments in inverse order of maturity. 
  

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 2.23 Mandatory Prepayments. 
 (a) Upon the occurrence of any Equity Issuance by the Company or any of its Subsidiaries resulting in Net Cash Proceeds in excess of
$100,000, an amount equal to 60% of the Net Cash Proceeds thereof shall be applied within ten (10) Business Days of the date of such issuance toward the prepayment of the Term Loans and the Revolving Loans as set forth in Section 2.23(c).

 (b) If on any date the Company or any of its Subsidiaries shall receive Net Cash Proceeds from any
Asset Sale, Purchase Price Refund or Recovery Event then, unless a Reinvestment Notice shall be delivered in respect thereof (within ten (10) Business Days of such Asset Sale, Purchase Price Refund or Recovery Event), such Net Cash Proceeds
shall be applied on the 11th Business Day following such
Asset Sale, Purchase Price Refund or Recovery Event toward the prepayment of the Term Loans and the Revolving Loans as set forth in Section 2.23(c); provided, that, notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of
Asset Sales and Recovery Events that may be excluded from the foregoing requirement pursuant to a Reinvestment Notice shall not exceed $250,000 in any fiscal year of the Company; and (ii) on each Reinvestment Prepayment Date, an amount equal to
the Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event shall be applied toward the prepayment of the Term Loans and the payment of the Revolving Loans as set forth in Section 2.23(c). 
 (c) Amounts to be applied in connection with prepayments made pursuant to Section 2.23(a) and Section 2.23(b) shall be
applied first, to the prepayment of the Term Loans, and second, to the prepayment of the Revolving Loans, but not the reduction of the Revolving Commitments. The application of any prepayment pursuant to this Section shall be made,
first, to Base Rate Loans, second, to Index Rate Loans, and, third, to LIBOR Loans. Each prepayment of the Loans under this Section (except in the case of Revolving Credit Loans that are Base Rate Loans and Swing Line Loans)
shall be accompanied by accrued interest to the date of such prepayment on the amount prepaid. 
 (d) To the extent that
the aggregate amount of outstanding Borrowing Base Obligations exceeds the Borrowing Base at any time, and upon the Administrative Agent’s demand therefor, the Borrowers shall pay such excess amount by first prepaying the Revolving Loans, next
prepaying amounts paid by the Issuing Bank under the Letters of Credit for which it has not been reimbursed by the Borrowers, and then providing cash collateral for the Letters of Credit, as specified below. In the event that the Borrowers shall be
required to provide cash collateral for the Letters of Credit pursuant to the foregoing sentence, the Borrowers shall effect the same by paying to the Administrative Agent, for the benefit of the Issuing Bank, immediately available funds in an
amount equal to the required amount, which funds shall be retained by the Administrative Agent, for the benefit of the Issuing Bank, in a cash collateral account until the earlier to occur of (1) the date the affected Letters of Credit shall have
been terminated or cancelled, and (2) the date the aggregated amount of outstanding Borrowing Base Obligations no longer exceeds the Borrowing Base, at which time the cash collateral shall be paid to the Company. 
 (e) If the Administrative Agent determines, based on its review of the audited financial statements of the Company for its fiscal
year ended on March 31, 2007, that EBITDA 
  

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 plus the Applicable Add-Backs for such fiscal year was less than $11,500,000, or if such audited financial
statements are not delivered to the Administrative Agent within 30 days of the date on which they are due, the Borrowers shall, within 10 Business Days after the Administrative Agent makes a written demand therefor, prepay the Term Loans in an
aggregate amount of $2,000,000. 
 2.24 Prepayment Premium. Each optional or mandatory prepayment in respect of
the Loans, including any prepayment upon the acceleration thereof upon the occurrence of an Event of Default, financed directly or indirectly with one or more credit facilities provided by any Person or Persons other than all of the Revolving Credit
Lenders and Term Loan Lenders party to this Agreement at the time of such termination or prepayment, shall be accompanied by a prepayment premium equal to 0.20% of the sum of the original Aggregate Revolving Commitments plus the aggregate amount of
Term Loans prepaid during the first year following the Closing Date and 0.10% of the sum of the original Aggregate Revolving Commitments plus the amount prepaid during the second and third years following the Closing Date. Any payment of Revolving
Loans or Swingline without a corresponding reduction in the Aggregate Revolving Commitments in the ordinary course of business and not financed by such other credit facilities shall not be subject to a prepayment premium. 
 2.25 Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 
 (a) Each Borrowing by the Borrowers from the Lenders hereunder, each payment by the Borrowers on account of any origination fee,
Administrative Fee or Letter of Credit, fee (other than the fronting fee and standard fees with respect to issuance, amendment renewal or extension of any Letter of Credit or processing of drawings thereunder payable solely to the Issuing Bank) and
any reduction of the Revolving Commitments of the Lenders shall be made pro rata according to the respective Term Loan Percentages or Revolving Credit Percentages, as the case may be of the relevant Lenders. Each payment (other than
prepayments) in respect of principal or interest in respect of the Loan’s and each payment in respect of fees payable hereunder shall be applied to the amounts of such obligations owing to the Lenders pro rata according to the
respective amounts then due and owing to the Lenders. 
 (b) Each mandatory prepayment required by Section 2.23(a)
and 2.23(b) to be applied to the Term Loans shall be allocated pro rata according to the respective outstanding principal amounts of the Term Loans. Each optional prepayment in respect of the Term Loans shall be allocated pro
rata according to the respective outstanding principal amounts of the Term Loans. Each payment (including each prepayment) of the Term Loans shall be allocated among the Term Loan Lenders holding such Term Loans pro rata based
on the principal amount of such Term Loans held by such Term Loan Lenders. Prepayments required by Section 2.23(e) shall be applied ratably to the remaining installments of such Term Loans. All other prepayments shall be applied to the
installments of such Term Loans in the inverse order of the scheduled maturities of such installments. Amounts prepaid on account of the Term Loans may not be reborrowed. 
  

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 (c) Each payment (including each prepayment) by the Borrowers on account of principal
of and interest on the Revolving Credit Loans shall be made pro rata according to the respective outstanding principal amounts of the Revolving Credit Loans then held by the Revolving Credit Lenders. Each payment in respect of LC
Disbursements in respect of any Letter of Credit shall be made to the Issuing Bank that issued such Letters of Credit. 
 (d)
The Borrowers shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Sections 2.18, 2.19 or 2.20, or otherwise) prior to 12:00 noon
(Eastern time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.18, 2.19 and 2.20 and 11.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of
any payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars. 
 (e) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties and
(ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

 (f) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of
any principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans that would result in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations
in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Loans and participations in LC Disbursements and Swingline Loans; provided, that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrowers pursuant to 
  

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 and in accordance with the express Terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements or Swingline Loans to any assignee or participant, other than to the Borrowers or any Subsidiary or Affiliate thereof (as to
which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law that any Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrowers rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of a Borrower in the amount of such participation. 
 (g) Unless the Administrative Agent shall have received notice from the Company prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such payment, the Administrative Agent may assume that the Borrowers have made such payment on such date in accordance herewith and
may in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be the amount or amounts due. In such event, if the Borrowers have not in fact made such payment, then each of the Lenders or the Issuing Bank, as
the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with generally accepted banking industry rules on interbank compensation then in
effect. 
 (h) If any Lender shall fail to make any payment required to be made by it pursuant to this Agreement, then
the Administrative Agent may in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid. 
 (i) Notwithstanding anything to
the contrary in Section 2.23 or this Section 2.25, each Term Loan Lender may, at its option, decline any mandatory prepayment applicable to the Term Loans of such Lender. Accordingly, with, respect to the amount of any
mandatory prepayment described in Section 2.23 that is allocated to Term Loans (such amounts, the “Term Loan Prepayment Amount”), the Borrowers will in the case of any mandatory prepayment required to be made pursuant to
Section 2.23 in lieu of applying such amount to the prepayment of the Term Loans, as provided in paragraph Section 2.23(c), on the date specified in Section 2.23 for such mandatory prepayment, give the
Administrative Agent telephonic notice (promptly confirmed in writing) requesting that the Administrative Agent prepare and provide to each Term Loan Lender a notice (each, a “Prepayment Option Notice”) as described below. As
promptly as practicable after receiving such notice from the Borrowers, the Administrative Agent will send to each Term Loan Lender a Prepayment Option Notice, which shall be in the form of Exhibit 2.25, and shall include an offer by the
Borrowers to prepay on the date (each a “Prepayment Date”) that is 10 Business Days after the date of the Prepayment Option Notice, the relevant Term Loans of such Term Loan Lender by an amount equal to the portion of the Term Loan

  

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 Prepayment Amount indicated in such Term Loan Lender’s Prepayment Option Notice as being applicable to
such Term Loan Lender’s Term Loans. On the Prepayment Date, (i) the Borrowers shall pay to the Administrative Agent the aggregate amount necessary to prepay that portion of the outstanding relevant Term Loans in respect of which Term Loan
Lenders have accepted prepayment as described above (such Term Loan Lenders, the “Accepting Lenders”), and such amount shall be applied to reduce the Term Loan Prepayment Amounts with respect to each Accepting Lender, (ii) the
Borrowers shall pay to the Administrative Agent an amount equal to Term Loan Prepayment Amount not accepted by the Accepting Lenders, and such amount shall be applied to the prepayment of the Revolving Loans until paid in full, without any reduction
in the Aggregate Revolving Commitments, and (iii) the remaining portion of the Term Loan Prepayment Amount not accepted by the Accepting Lenders shall be returned to the Borrowers. 
 2.26 Mitigation of Obligations; Replacement of Lenders. 
 (a) Determination of amounts payable under Sections 2.17, 2.18, 2.19 or 2.20 in connection with a LIBOR Borrowing shall be calculated
as though each Lender funded its LIBOR Borrowing through the purchase of a deposit of the type and maturity corresponding to the deposit used as a reference in determining the LIBOR applicable to such LIBOR Borrowing whether in fact that is the case
or not. If any Lender requests compensation under Section 2.18, or if the Borrowers are required to pay any additional amount to any Lender or any governmental authority for the account of any Lender pursuant to Section 2.20, then, upon
the Company’s written request to such Lender, such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the sole judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under Section 2.18 or Section 2.20, as the case may be, in the future and
(ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with such
designation or assignment requested by the Company. 
 (b) If any Lender requests compensation under
Section 2.18 or if a Borrower is required to pay any additional amount to any Lender or any governmental authority for the account of any Lender pursuant to Section 2.20, or if any Lender defaults in its obligation to fund Loans hereunder, or
if any Lender does not consent to any amendment, waiver or consent to any Loan Document for which the consent of the Required Lenders is obtained but that requires the consent of all Lenders, then the Borrowers may, at their sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions set forth in Section 11.4(b), and the Borrowers shall be obligated to pay
the recordation and processing fee referred to therein) all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender); provided, that (i) the
Borrowers shall have received the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal amount of all
Loans owed to it, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (in the case of such outstanding 
  

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 principal and accrued interest) and from the Borrowers (in the case of all other amounts), (iii) in the
case of a claim for compensation under Section 2.18 or payments required to be made pursuant to Section 2.20, such assignment will result in a reduction in such compensation or payments, and (iv) the Borrowers shall be liable to such
replaced Lender under Section 2.19 (as though Section 2.19 were applicable) if any LIBOR Loan owing to such replaced Lender shall be purchased other than on the last day of the Interest Period relating thereto. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 
 Section 3 Security 
 3.1 Security Interest. Each Borrower hereby assigns and pledges to the Administrative Agent, for the ratable benefit of the Lenders, and hereby grants to the Administrative Agent, for the
ratable benefit of the Lenders, a first priority security interest in all of such Borrower’s right, title and interest in and to the Collateral (subject to Liens permitted by this Agreement or any other Loan Document), whether now owned or
hereafter acquired by such Borrower, including all proceeds of any and all of the foregoing or hereinafter-described Collateral (including, without limitation, proceeds that constitute property of the types described herein) and, to the extent not
otherwise included, all policies of insurance on any property of such Borrower and all payments and proceeds under any such insurance (whether or not the Administrative Agent is the loss payee thereof, for the ratable benefit of the Lenders), or any
indemnity warranty or guaranty payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral all cash proceeds of the Collateral; and all books of account and records, including all computer software relating
thereto. This Agreement secures the payment of all Obligations of the Borrowers now or hereafter existing or arising. Without limiting the generality of the foregoing, this Agreement secures the payment of all amounts that constitute part of the
Obligations and would be owed by each Borrower to the Administrative Agent and any of the Lenders but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such
Borrower. Notwithstanding anything to the contrary in this Agreement or in any Loan Document, (i) no Subsidiary that is a CFC, or that is owned in whole or in part, directly or indirectly, by a Subsidiary that is a CFC, shall be required to
pledge any of its assets or otherwise provide any security of any of the Loans or any of the obligations of the Borrowers under any of the Loan Documents, (ii) no Borrower or Subsidiary shall be required to pledge, directly or indirectly, more
than 65% of the stock of any CFC, and (iii) no security interest, pledge or assignment shall attach to any Excluded Collateral prior to the occurrence of an Event of Default. 
 3.2 Representations and Warranties Concerning the Collateral. 
 (a) As of the date hereof (i) all items of equipment and inventory of each Borrower are located at the places specified in
Schedule 3.2 hereto; (ii) during the five years immediately preceding the date of this Agreement, no Borrower nor any predecessor of any Borrower has used any corporate or fictitious name other than its current corporate name except as set
forth on Schedule 3.2 hereto; (iii) no Borrower has any trade names except as set forth on 
  

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Schedule 3.2 hereto; (iv) the chief executive office and mailing address of the Company is 220 Defense Highway, Suite 405, Crofton, MD and TAC is 1501 Farm Credit Drive, Suite 2300, McLean.
VA 22102; (v) the exact legal name of each Borrower is that indicated on the signature pages hereof; (vi) the Borrowers are organizations of the types, and are organized in the jurisdictions, set forth herein; and (vii) the signature
page hereof accurately sets forth each Borrower’s organizational identification number. 
 (b) The Borrowers are the
legal and beneficial owners of the Collateral free and clear of any lien, security interest, option or other charge or encumbrance except for the security interest created by this Agreement or permitted by this Agreement. 
 (c) The Borrowers have exclusive possession and control of the Collateral. 
 (d) This Agreement creates a valid security interest in the Collateral, securing the payment of the Obligations and, when properly
perfected, shall constitute a valid perfected security interest in such Collateral, free and clear of all Liens except as created or permitted by this Agreement. 
 (e) The inventory of each Borrower has been produced by such Borrower in compliance with all requirements of the Fair Labor Standards Act. 
 (f) Each Borrower represents and warrants as to each and every Eligible Receivable now existing that: (1) it is a bona
fide existing obligation, valid and enforceable against the Customer, for software installed or licensed, goods sold or leased or services rendered in the ordinary course of business; (2) it is subject to no material dispute, defense or
offset except as disclosed in writing to the Administrative Agent or as reflected or reserved for in the financial statements delivered from time to time by the Borrowers to the Administrative Agent hereunder; (3) all instruments, chattel paper
and other evidence of indebtedness issued to a Borrower with respect to any Eligible Receivable have been made available to the Administrative Agent, and, together with all supporting documents delivered to the Administrative Agent, are genuine,
complete, valid and enforceable in accordance with their terms; (4) it is not subject to any discount, allowance or special terms of payment except in the ordinary course of business or as disclosed in writing to the Administrative Agent; and
(5) except as required by the Assignment of Claims Act, it is not and shall not be subject to any prohibition or limitation upon assignment. Each Borrower covenants and agrees that each Eligible Receivable arising after the date of this
Agreement will be in conformance with the foregoing representations in all material respects. Each Borrower acknowledges and agrees that the disclosures made pursuant to the foregoing clauses (2) and (4) shall not alter or diminish the
right of the Administrative Agent to exclude the applicable Receivable from the category of Eligible Receivables if it does not satisfy all of the requirements for Eligible Receivables set forth in the definition of such term. 
 3.3 Covenants Concerning the Collateral. 
 (a) Each Borrower shall immediately inform the Administrative Agent of (1) any dispute in excess of $250,000 with a Customer and (2) the bankruptcy, insolvency, receivership, assignment
for the benefit of creditors or suspension of business of any material

  

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Customer of which such Borrower has knowledge. No Borrower shall compromise or discount any Receivable without the prior written consent of the Administrative Agent except for (i) ordinary
trade discounts or allowances for prompt payment, and (ii) prior to the occurrence of an Event of Default, such compromises or discounts that, after giving effect thereto, will not cause the Borrowing Base to be less than the unpaid principal
balance of the Revolving Credit Exposure then outstanding. 
 (b) Upon the written demand of the Administrative Agent
following the occurrence of an Event of Default, each Borrower shall establish and maintain a lockbox with the Administrative Agent and shall direct all Customers to make payments on Collateral to such lockbox by printing such direction on all
invoices given to Customers. Each Borrower also shall remit to such lockbox or deliver to the Administrative Agent all payments on Collateral received by such Borrower. Such payments shall be remitted or delivered in their original form on the day
of receipt. All notes, checks and other instruments so received by each Borrower shall be duly endorsed to the order of the Administrative Agent. The payments remitted to the lockbox and all payments delivered to the Administrative Agent shall be
credited to a cash collateral account maintained by the Administrative Agent in the name of the Company over which the Administrative Agent shall have the exclusive power of withdrawal. All collected funds in such cash collateral account shall be
applied to the Obligations by the Administrative Agent on each Business Day, whether or not the Obligations are then due. 
 (c) Upon the occurrence and during the continuation of an Event of Default, to facilitate direct collection of the Collateral, the Administrative Agent shall have the right to take over the post office boxes of the Borrowers or make
other arrangements, with which the Borrowers shall cooperate, to receive the mail of each Borrower. 
 (d) The Borrowers
shall execute all other agreements, instruments and documents and shall perform all further acts that the Administrative Agent may require with respect to Receivables owing by the Government to ensure compliance with the Assignment of Claims Act,
provided that, as long as no Event of Default has occurred and is continuing, the Administrative Agent has no present intent to require, but reserves the right to so require whether or not any Event of Default has occurred and is continuing,
Assignment of Claims Act filings for any Government Contract. 
 (e) All of the inventory and equipment of each Borrower
will be kept only at the locations set forth on Schedule 3.2, or at such other locations as shall be disclosed in writing to the Administrative Agent by the Borrowers, other than inventory and equipment with an aggregate book value of not
more than $250,000. The Borrowers shall give the Administrative Agent prior written notice before any material inventory or equipment is moved or delivered to a location other than such designated places of business, and the lien and security
interest of the Administrative Agent for the ratable benefit of the Lenders will be maintained despite the location of the inventory or equipment. Without the prior written consent of the Administrative Agent, no Borrower shall move or deliver
inventory or equipment with a book value in any instance or in the aggregate of $250,000 or more to a location outside of the United States of America. The foregoing provisions shall not apply to inventory sold in the ordinary course of business of
the Borrowers. 
  

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 (f) Each Borrower shall have its equipment and inventory insured against loss or
damage by fire, theft, burglary, pilferage, loss in transportation and such other hazards as the Administrative Agent shall reasonably specify, by insurers reasonably satisfactory to the Administrative Agent, in amounts reasonably satisfactory to
the Administrative Agent and under policies containing loss payable clauses satisfactory to the Administrative Agent. Any such insurance policies, or certificates or other evidence thereof satisfactory to the Administrative Agent, shall be deposited
with the Administrative Agent. Each Borrower agrees that the Administrative Agent, for the ratable benefit of the Lenders, shall have a security interest in such policies and the proceeds of such policies thereof, and if any loss shall occur during
the continuation of an Event of Default, the proceeds relating to the loss or damage of the equipment or inventory may be applied to the payment of the Obligations or to the replacement or restoration of the inventory or equipment damaged or
destroyed, as the Administrative Agent may elect or direct. After the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right to file claims under any insurance policies, to receive, receipt and
given acquittance for any payments that may be made thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect to the collection, compromise, or settlement
of any claims under any of the insurance policies. 
 3.4 Perfection of Security Interest. 
 (a) Each Borrower hereby irrevocably authorizes the Administrative Agent, for the ratable benefit of the Lenders, at any time and from
time to time to file in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (1) indicate the Collateral (i) as all assets of such Borrower or words of similar effect, regardless of whether
any particular asset comprised in the Collateral falls within the scope of Article 9A of the Uniform Commercial Code of the State or such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (2) contain
any other information required by part 5 of Article 9A of the Uniform Commercial Code of the State or such jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether such Borrower
is an organization, the type of organization and any organization identification number issued to such Borrower and, (ii) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or
timber to be cut, a sufficient description of real property to which the Collateral relates. Each Borrower agrees to furnish any such information to the Administrative Agent promptly upon request. 
 (b) Without providing at least 10 days’ prior written notice to the Administrative Agent, no Borrower shall change its name, its
type of organization, jurisdiction of organization or other legal structure, its principal place of business or, if more than one, chief executive office, or its mailing address or organizational identification number if it has one. If a Borrower
does not have an organizational identification number and later obtains one, such Borrower shall forthwith notify the Administrative Agent of such organizational identification number. 
  

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 (c) If a Borrower shall at any time hold or acquire any promissory notes or tangible
chattel paper as part of the Collateral, such Borrower shall forthwith endorse, assign and deliver the same to the Administrative Agent, for the ratable benefit of the Lenders, accompanied by such instruments of transfer or assignment duly executed
in blank as the Administrative Agent may from time to time specify, provided that if no Default or Event of Default has occurred, provisions of this paragraph shall not apply to promissory notes and tangible chattel paper with an aggregate face
value of not greater than $100,000. 
 (d) For each deposit account that a Borrower at any time opens or maintains, such
Borrower shall, at the Administrative Agent’s request, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, cause the depositary bank to agree to comply at any time during the continuation of an
Event of Default with instructions from the Administrative Agent to such depositary bank directing the disposition of funds from time to time credited to such deposit account, without further consent of such Borrower. The Administrative Agent agrees
with each Borrower that the Administrative Agent shall not give any such instructions or withhold any withdrawal rights from such Borrower, unless an Event of Default has occurred and is continuing, or, after giving effect to any withdrawal not
otherwise permitted by the Loan Documents, would occur. The provisions of this paragraph shall not apply to (i) any deposit account for which a Borrower, the depositary bank and the Administrative Agent have entered into a cash collateral
agreement specially negotiated among such Borrower, the depositary bank and the Administrative Agent for the specific purpose set forth therein, (ii) deposit accounts for which the Administrative Agent is the depositary, (iii) deposit
accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of such Borrower’s salaried employees, (iv) deposit accounts for which such Borrower is acting as an
agent to distribute funds other than funds of the Borrower to a third party, and (v) if no Default or Event of Default has occurred, deposit accounts which in the aggregate hold funds not in excess of $100,000. 
 (e) If a Borrower shall at any time hold or acquire any certificated securities, such Borrower shall, upon the Administrative
Agent’s written request therefor, forthwith endorse, assign and deliver the same to the Administrative Agent to be held as Collateral for the ratable benefit of the Lenders, accompanied by such instruments of transfer or assignment duly
executed in blank as the Administrative Agent may from time to time specify. If any securities now or hereafter acquired by a Borrower are uncertificated and are issued to such Borrower or its nominee directly by the issuer thereof, that Borrower
shall immediately notify the Administrative Agent thereof and, at the Administrative Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, cause the issuer to agree to
comply during the continuation of an Event of Default with instructions from the Administrative Agent as to such securities, without further consent of such Borrower or such nominee. If any securities, whether certificated or uncertificated, or
other investment property now or hereafter acquired by a Borrower are held by such Borrower or its nominee through a securities intermediary or commodity intermediary, such Borrower shall immediately notify the

  

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Administrative Agent thereof and, at the Administrative Agent’s request, pursuant to a securities control agreement in form and substance reasonably satisfactory to the Administrative Agent,
cause such securities intermediary or (as the case may be) commodity intermediary to agree to comply during the continuation of an Event of Default with entitlement orders or other instructions from the Administrative Agent to such securities
intermediary as to such securities or other investment property, or (as the case may be) to apply any value distributed on account of any commodity contract as directed by the Administrative Agent to such commodity intermediary, in each case without
further consent of such Borrower or such nominee. The Administrative Agent agrees with each Borrower that the Administrative Agent shall not give any such entitlement orders or instructions or directions to any such issuer, securities intermediary
or commodity intermediary, and shall not withhold its consent to the exercise of any withdrawal or dealing rights by such Borrower, unless an Event of Default has occurred and is continuing, or, after giving effect to any such investment and
withdrawal rights not otherwise permitted by the Loan Documents, would occur. The provisions of this paragraph shall not apply to (i) any financial assets credited to a securities account for which the Administrative Agent is the securities
intermediary, and (ii) if no Default or Event of Default has occurred, financial assets with an aggregate value not in excess of $100,000. 
 (f) If any goods are at any time in the possession of a bailee, each Borrower shall promptly notify the Administrative Agent thereof and, if requested by the Administrative Agent, shall promptly
obtain an acknowledgement from the bailee, in form and substance reasonably satisfactory to the Administrative Agent, that the bailee holds such Collateral for the benefit of the Administrative Agent and shall act upon the instructions of the
Administrative Agent, without the further consent of such Borrower, provided that such Borrower shall not be in violation of this requirement if, after such Borrower has exercised reasonably commercial efforts, such bailee refuses to provide such
acknowledgement and the Administrative Agent determines that the rights of the Lenders will not be materially impaired thereby. The Administrative Agent agrees with each Borrower that the Administrative Agent shall not give any such instructions
unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Borrower with respect to the bailee. The provisions of this paragraph shall not apply, if no Default or Event of Default has
occurred, to goods with an aggregate book value not in excess of $100,000. 
 (g) If a Borrower at any time holds or
acquires an interest in any electronic chattel paper or any “transferable record,” as that term is defined in Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or in §16 of the Uniform
Electronic Transactions Act as in effect in any relevant jurisdiction, such Borrower shall promptly notify the Administrative Agent thereof and, at the request of the Administrative Agent, shall take such action as the Administrative Agent may
reasonably request to vest in the Administrative Agent, for the ratable benefit of the Lenders, control, under §9-105 of the Uniform Commercial Code, of such electronic chattel paper or control under Section 201 of the Federal Electronic
Signatures in Global and National Commerce Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. The Administrative Agent agrees with each Borrower that
the Administrative Agent will arrange, pursuant to procedures satisfactory to the Administrative

  

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Agent and so long as such procedures will not result in the Administrative Agent’s loss of control, for such Borrower to make alterations to the electronic chattel paper or transferable
record permitted under UCC §9-105 or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or §16 of the Uniform Electronic Transactions Act for a party in control to make without
loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Borrower with respect to such electronic chattel paper or transferable record. The provisions of this paragraph
shall not apply, if no Default or Event of Default has occurred, to electronic chattel paper and transferable records with an aggregate book value not in excess of $100,000. 
 (h) If a Borrower is at any time a beneficiary under a letter of credit now or hereafter issued in favor of such Borrower, that
Borrower shall promptly notify the Administrative Agent thereof and, at the request of the Administrative Agent, such Borrower shall, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, arrange for the
issuer and any confirmer of such letter of credit to consent to an assignment to the Administrative Agent, for the ratable benefit of the Lenders, during the continuation of an Event of Default of the proceeds of any drawing under the letter of
credit, with the Administrative Agent agreeing that the proceeds of any drawing under the letter to credit are to be applied to the payment of the Obligations, for the ratable benefit of the Lenders, provided that such Borrower shall not be in
violation of this requirement if, after such Borrower has exercised reasonably commercial efforts, such issuer refuses to provide such agreement and the Administrative Agent determines that the rights of the Lenders will not be materially impaired
thereby. The provisions of this paragraph shall not apply, if no Default or Event of Default has occurred, to letters of credit with an aggregate face value not in excess of $100,000. 
 (i) If a Borrower shall at any time hold or acquire a commercial tort claim, that Borrower shall immediately notify the
Administrative Agent in a writing signed by such Borrower of the brief details thereof and grant to the Administrative Agent, for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance satisfactory to the Administrative Agent. The provisions of this paragraph shall not apply, if no Default or Event of Default has occurred, to commercial tort claims with an
aggregate value not in excees of $100,000. 
 (j) If a Borrower at any time holds any Intellectual Property registered
with the Register of Copyrights or the United States Patent and Trademark Office, as applicable, that Borrower shall promptly notify the Administrative Agent thereof, and if required by the Administrative Agent, shall execute and deliver to the
Administrative Agent an Intellectual Property Assignment with respect thereto and shall cause such Intellectual Property Assignment to be recorded in such office. The provisions of this paragraph shall not apply, if no Default or Event of Default
has occurred, to Intellectual Property with an aggregate value not in excess of $100,000. 
  

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 (k) Each Borrower further agrees to take any other action reasonably requested by the
Administrative Agent to insure the attachment, perfection and first priority of, and the ability of the Administrative Agent to enforce, the Administrative Agent’s security interest in any and all of the Collateral, for the ratable benefit of
the Lenders, including, without limitation, (1) executing, delivering and, where appropriate, filing financing statements and amendments relating thereto under the Uniform Commercial Code, to the extent, if any, that such Borrower’s
signature thereon is required therefor, (2) causing the Administrative Agent’s name to be noted as the Lender on any certificate of title for a titled good if such notation is a condition to attachment, perfection or priority of, or
ability of the Administrative Agent to enforce, the Administrative Agent’s security interest in such Collateral, held for the ratable benefit of the Lenders, (3) complying with any provision of any statute, regulation or treaty of the
United States as to any Collateral if compliance with such provision is a condition to attachment, perfection or priority of, or ability of the Administrative Agent to enforce, the Administrative Agent’s security interest in such Collateral,
held for the ratable benefit of the Lenders, (4) obtaining governmental and other third party consents and approvals, including without limitation any consent of any licensor, lessor or other person obligated on Collateral, (5) obtaining
waivers from mortgagees and landlords in form and substance satisfactory to the Administrative Agent and (6) taking all actions required by any earlier versions of the Uniform Commercial Code or by other law, as applicable in any relevant
Uniform Commercial Code jurisdiction, or by other law as applicable in any foreign jurisdiction. 
 3.5 Power of
Attorney. Each Borrower appoints the Administrative Agent and any officer, employee or agent of the Administrative Agent, as the Administrative Agent from time to time may designate, as attorneys-in-fact for a Borrower to perform all actions
necessary or desirable in the discretion of the Administrative Agent to enforce its security interest in the Collateral, for the ratable benefit of the Lenders, and to exercise such rights and powers as each Borrower might exercise with respect to
the Collateral, all at the reasonable cost and expense of the Borrowers. Each Borrower agrees that neither the Administrative Agent nor any other such attorney-in-fact will be liable for any acts of omission or commission, nor for any error of
judgment or mistake of law or fact, unless such acts were willful and malicious or grossly negligent. This power is coupled with an interest and is irrevocable so long as any Obligations are outstanding. The Administrative Agent agrees that it shall
be entitled to exercise its rights under this Section 3.5 only upon the occurrence and during the continuation of an Event of Default. 
 3.6 Limitations on Obligations. It is expressly agreed by each Borrower that, notwithstanding any other provision of this Agreement, each Borrower shall remain liable under each Receivable
and contract giving rise to each Receivable to observe and perform all the conditions and obligations to be observed and performed by each Borrower in accordance with and pursuant to the terms and provisions of each such Receivable and contract.
Neither the Administrative Agent nor any Lender shall have any obligation or liability under any Receivable or contract by reason of or arising out of this Agreement or the assignment of such Receivable or contract to the Administrative Agent, for
the ratable benefit of the Lenders, or the receipt by the Administrative Agent, for the ratable benefit of the Lenders, of any payment relating to the Receivable pursuant to this Agreement, nor shall the Administrative Agent or any Lender be
required or obligated in any manner to perform or fulfill any of the obligations of a Borrower under or pursuant to any Receivable or contract, or to make any payment, or to make any inquiry

  

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as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any Receivable, or to present or file any claim, or to take any action
to collect or enforce any performance or the payment of any amounts that may have been assigned to it or to which it may be entitled at any time or times. 
 Section 4 Representations And Warranties 
 Each Borrower represents
and warrants to the Administrative Agent and each Lender that: 
 4.1 Incorporation, Good Standing and Due
Qualification. Each Borrower (a) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation; (b) has the power and authority to own its assets
and to transact the business in which it is now engaged or in which it is proposed to be engaged; and (c) is duly qualified as a foreign corporation or limited liability corporation and in good standing under the laws of each other jurisdiction
in which such qualification is required, except when the failure to be so qualified would not have a Material Adverse Effect. As of the date of this Agreement, the Company has no Subsidiaries other than TAC. 
 4.2 Power and Authority. The execution, delivery and performance by the Borrowers of the Loan Documents have been duly
authorized by all necessary corporate actions and do not and will not (a) require any consent or approval of, or filing or registration with, any governmental agency or authority or the stockholders of a Borrower, other than the filing of
financing statements as required by the UCC and filings required by the Assignment of Claims Act; (b) contravene a Borrower’s articles or certificate of incorporation, articles or certificate of organization, or bylaws or operating
agreement, as applicable; (c) result in a breach of or constitute a default under any material agreement or instrument to which a Borrower is a party or by which it or its material properties may be bound or affected other than those that would
not, in any individual case or in the aggregate, have a Material Adverse Effect; (d) result in or require the creation or imposition of any Lien upon or with respect to any of the properties now owned or hereafter acquired by a Borrower, except
in favor of the Administrative Agent, for the ratable benefit of the Lenders; or (e) cause a Borrower to be in default under any material law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the
Borrower, except, in the cases of clauses (a), (c) and (e), compliance with, and filings and notices under, the Assignment of Claims Act. 
 4.3 Legally Enforceable Agreement. This Agreement is, and each of the other Loan Documents when delivered under this Agreement will be, legal, valid and binding
obligations of each Borrower, enforceable against each Borrower in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization or similar laws or equitable principles relating to creditors’ rights generally.

 4.4 Financial Statements. The Company has furnished to the Administrative Agent and each
Lender (a) the audited consolidated and unaudited consolidating balance sheet of the Company and its Subsidiaries as of March 31, 2006, and the related consolidated and consolidating statements of income, stockholders’ equity and cash
flows for the fiscal year then

  

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ended prepared by Grant Thornton LLP and (b) the unaudited consolidated and consolidating balance sheet of the Company and its Subsidiaries as of November 30, 2006, and the related
unaudited consolidated and consolidating statement of income for the fiscal quarter and year-to-date period then ending, certified by a Principal Officer. Such financial statements are complete and correct and fairly present in all material respects
the financial condition of the Company and its Subsidiaries on a consolidated and consolidating basis as of the dates of such statements subject, in the case of the statements referred to in clause (b) to normal year-end adjustments and the
absence of footnote disclosure. Since the dates of such statements, there has been no material adverse change in the business, assets, liabilities, results of operations, or financial condition of the Borrowers taken as a whole. 
 4.5 Litigation: Environmental Matters. 
 (a) There is no pending or threatened action, investigation or proceeding against or affecting a Borrower before any court, governmental agency or arbitrator, that, in any one case or in the
aggregate, could reasonably be expected to have a Material Adverse Effect. 
 (b) Except that either individually or in
the aggregate could not be reasonably expected to have a Material Adverse Effect, no Borrower (i) is the subject of any pending or threatened claim alleging that it has failed to comply with any Environmental Law or to obtain, maintain or
comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv)
knows of any facts or circumstances that would reasonably be expected to subject the Borrower to any material Environmental Liabilities. 
 4.6 Ownership and Liens. Each Borrower has title to or leasehold interests in all of its assets, including the Collateral, and none of the Collateral or such assets is subject to any
Lien, except Liens created or permitted by this Agreement or the other Loan Documents. 
 4.7 ERISA. No
Borrower has incurred any material “accumulated funding deficiency” within the meaning of § 302 of ERISA or § 412 of the Code, nor has any Borrower incurred any material liability to the PBGC in connection with any
“employee pension benefit plan” (as defined in § 3(2) of ERISA) established or maintained by a Borrower. None of the employee pension benefit plans (as defined above) or “welfare plans” (as defined in §
3(1) of ERISA) of a Borrower, nor any trusts created thereunder, nor any trustee or administrator thereof, has engaged in a “prohibited transaction,” as such term is defined in § 406 of ERISA or § 4975 of the Code, that
could subject such plans or any of them, any such trust, or any trustee or administrator thereof, or any party dealing with such plans or any such trust to any material liability or tax or penalty on prohibited transactions imposed by such
§§ 406 or 4975. None of the Borrowers nor any Affiliate of any Borrower is now, or at any time in the past three (3) years has been, obligated to make contributions to a “multiemployer plan,” as such term is defined
in § 4001(a)(3) of ERISA, with respect to which the withdrawal of any Borrower or any such Affiliate at any time could reasonably be expected to have a Material Adverse Effect. The only such multiemployer plans to which any Borrower is
obligated to make contributions are those described on Schedule 4.7. 
  

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 4.8 Taxes. Each Borrower has filed all federal and state income tax returns
and other material tax returns (federal, state and local) required to be filed and has paid all taxes, assessments and governmental charges and levies shown thereon to be due, including interest and penalties, except for such taxes being contested
in good faith and as for which reserves are being maintained in accordance with GAAP. 
 4.9 Use of Proceeds and Letters
of Credit. The Borrowers will use (a) the proceeds of the Revolving Loans to (i) finance working capital needs and for other general corporate purposes (other than Stock Purchase Agreement Payments, but including fees and expenses
related to the Stock Purchase Agreement and which the Company is required to pay and the fees and expenses related to this Agreement, the other Loan Documents and the transactions contemplated by this Agreement), (ii) finance up to $7,000,000
of the Stock Purchase Agreement Payments, and (iii) to allow for issuance of up to an aggregate $500,000 in standby letters of credit, which shall be Letters of Credit issued hereunder, and (b) the proceeds of the Term Loans to finance the
Stock Purchase Agreement Payments. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that would violate any rule or regulation of the Board of Governors of the Federal Reserve System, including
Regulations T, U or X. All Letters of Credit will be used for general corporate purposes. 
 4.10 Debt. No
Borrower is obligated with respect to any Debt that is not permitted by this Agreement. 
 4.11 Debarment and
Suspension. No event has occurred and, to the knowledge of the Borrowers, no condition exists that may reasonably be expected to result in the debarment or suspension of a Borrower from any contracting with the Government, and no Borrower
nor any Affiliate of a Borrower has been subject to any such debarment or suspension prior to the date of this Agreement. No Government investigation or inquiry involving fraud, deception or willful misconduct has been commenced in connection with
any Government Contract of a Borrower or a Subsidiary or any activities of any Borrower or any Subsidiary. 
 4.12
Material Contracts. No Borrower, Subsidiary or, to the knowledge of the Borrowers, any other party thereto is in material default under any Material Contract that would have a Material Adverse Effect. 
 4.13 Intellectual Property. As of the date hereof, the Borrowers and the Subsidiaries do not own or hold any registered
copyrights, patents or trademarks, other than as listed on Schedule 4.13 attached hereto and other than such Intellectual Property that has not been used by the Borrowers in the past 12 months or from which no revenue has been derived in the
past 12 months. Each Borrower and each Subsidiary owns or has the right to use under valid license agreements or otherwise all Intellectual Property that is required or necessary for the conduct of the business of each Borrower and its Subsidiaries
as now conducted to the knowledge of the Borrowers without any conflict with any rights of any other Person that would have a Material Adverse Effect. 
  

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 4.14 True and Complete Information. All factual and financial information
(taken as a whole) previously furnished to the Administrative Agent or any Lender in connection with this Agreement by the Borrowers and each Subsidiary is, and all factual and financial information (taken as a whole) furnished to the Administrative
Agent or any Lender by the Borrowers and the Subsidiaries after the date of this Agreement will be, true and accurate in all material respects on the date on which such information is dated, certified or furnished, and is not, and will not be,
incomplete by omitting to state any material fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. 
 4.15 Integrated Business. The Borrowers and the Subsidiaries at all times will be, engaged as an integrated group in providing
services and goods to their respective Customers. The integrated operation will require financing on such a basis that credit supplied to the Borrowers be made available from time to time to all Borrowers and Subsidiaries of the Borrowers, as
required for the successful operation of the Borrowers and the Subsidiaries separately, and the integrated operation as a whole. In that connection, the Borrowers and the Subsidiaries will request that the Lenders provide the Loans to, and that the
Issuing Bank issue the Letters of Credit for, the Borrowers to finance such operation. Each Borrower will derive benefit, directly and indirectly, from the credit so extended to the Borrowers, both in its separate capacity and as a member of the
integrated group. 
 4.16 Employee Relations. As of the date hereof, except for the agreement(s) set forth on
Schedule 4.16, no Borrower is a party to any collective bargaining agreement nor has any labor union been recognized as the representative of its employees. Except as would not have a Material Adverse Effect, no Borrower knows of any pending,
threatened or contemplated strikes, work stoppage or other collective labor disputes involving its employees. 
 4.17 Burdensome Provisions. No Borrower is a party to any indenture, agreement, lease or other instrument, or subject to any corporate or partnership restriction, governmental approval or applicable law that individually or in the aggregate could be reasonably expected to
have a Material Adverse Effect. 
 4.18 Absence of Defaults. No event has occurred and is continuing which
constitutes a Default or an Event of Default. 
 4.19 Reserved. 
 4.20 OFAC. No Borrower (i) is a person whose property or interest in property is blocked or subject to blocking
pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any
dealings or transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such person in any manner violative of Section 2, or (iii) is a person on the list of Specially Designated Nationals
and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order. 
  

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 4.21 Patriot Act. Each Borrower is in compliance, in all material respects,
with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used, directly or indirectly,
for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 4.22 Survival
of Representations and Warranties, Etc. All representations and warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and as of the date hereof, the Closing Date and at and as of the date of the
disbursement of any Loan or issuance of any Letter of Credit, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and
accurate on and as of such earlier date). All such representations and warranties shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents, the making of the Loans and the issuance of the Letters of Credit.

 Section 5 Affirmative Covenants 
 The Borrowers covenant and agree that so long as any Lender has a Commitment hereunder or the principal of or interest on any Loan remains unpaid or any fee or any LC Disbursement remains unreimbursed or
any Letter of Credit remains outstanding: 
 5.1 Maintenance of Existence. Each Borrower will preserve and
maintain its corporate existence and good standing in the jurisdiction of its formation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which such qualification is required, except where such failure to qualify as
a foreign corporation would not have a Material Adverse Effect. 
 5.2 Maintenance of Records. Each Borrower will
keep adequate records and books of account, in which complete entries will be made in accordance with GAAP, reflecting all financial transactions of such Borrower. The principal records and books of account, including those concerning the
Collateral, shall be kept at the chief executive office of the Borrowers described above. No Borrower will move such records and books of account or change its chief executive office or the name under which it does business without (a) giving
the Administrative Agent at least 30 days’ prior written notice, and (b) filing, or authorizing the filing by the Administrative Agent of financing statements reasonably satisfactory to the Administrative Agent prior to such move or
change. 
 5.3 Maintenance of Properties. Each Borrower will maintain, keep and preserve all of its properties
(tangible and intangible) necessary in the proper conduct of its business in good working order and condition, ordinary wear and tear and casualty excepted. 
  

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 5.4 Conduct of Business. Each Borrower will continue to engage in a business
of the same general type as conducted by it on the date of this Agreement and as otherwise defined in the articles or certificate of incorporation or articles or certificate of organization, as applicable. 
 5.5 Maintenance of Insurance. Each Borrower will maintain insurance with financially sound and reputable insurance companies
or associations in such amounts and covering such risks as are customarily carried by companies engaged in the same or a similar business and similarly situated, including, without limitation, insurance covering the inventory and equipment as
required hereby. 
 5.6 Compliance with Laws; Taxes. 
 (a) Each Borrower will comply in all respects with all applicable laws, rules, regulations and orders (including, without limitation,
ERISA and all Environmental Laws) except where the failure to so comply, either individually or in the aggregate, could not be reasonably expected to have a Material Adverse Effect. 
 (b) Each Borrower shall file all federal and state income tax returns and other material tax returns (federal,
state and local) required to be filed and shall pay all taxes, assessments and governmental charges and levies shown thereon to be due, including interest and penalties, except for such taxes being contested in good faith and as for which reserves
are being maintained in accordance with GAAP. 
 5.7 Right of Inspection. At any reasonable time and from time to
time, with reasonable notice, each Borrower will permit, except as prohibited by applicable law, the Administrative Agent or any agent or representative of the Administrative Agent to audit, examine and verify the Collateral, examine and make copies
of and abstracts from the records and books of account of, and visit the properties of, each Borrower, and to discuss the affairs, finances and accounts of each Borrower with any of its officers and directors and each Borrower’s independent
accountants, and to discuss the status of Government Contracts of each Borrower with the applicable contracting officers. The Administrative Agent agrees to give the Borrowers not fewer than five days prior written notice of taking any action
described in the preceding sentence and to obtain the Borrowers’ permission prior to contacting the contracting officer under any Government Contract, provided that if an Event of Default has occurred and is continuing, the Administrative Agent
shall not be required to give such prior notice or obtain such permission. The Borrowers agree to reimburse the Administrative Agent for all reasonable audit and Collateral verification and examination expenses incurred by it with respect to each
audit and Collateral verification of each Borrower conducted by the Administrative Agent no more than two (2) times annually unless an Event of Default has occurred. If the Administrative Agent uses employees or Affiliates to perform the
audits, the Borrowers’ reimbursement obligations shall be limited to the reasonable out-of-pocket expenses of the Administrative Agent that would have been paid to an independent auditing firm for such audits. 
  

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 5.8 Reporting Requirements. The Borrowers will furnish to the Administrative
Agent, at each address for the Administrative Agent specified in Section 11.1(a) (and the Administrative Agent will promptly after receipt provide copies thereof to each Lender): 
 (a) Monthly Financial Statements of the Company. As soon as available and in any event within 30 days after the end of each
fiscal month of each fiscal year, unaudited financial statements consisting of consolidated and consolidating balance sheets of the Company and its Subsidiaries as of the end of such month and consolidated and consolidating statements of income and
changes in stockholders equity of the Company and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such month, all in reasonable detail and stating in comparative form the respective
variances between such consolidated and consolidating figures and the Company’s operating plan or budget for such fiscal year, and all prepared in accordance with GAAP. Such financial statements shall be certified to be accurate by a Principal
Officer of the Company (subject to year-end adjustments and the absence of footnote disclosure); 
 (b) Quarterly Reports. As soon as available and in any event within 45 days after the end of each fiscal quarter (1) a contract backlog report reflecting all contracts of the Borrowers, each as of the end of such fiscal quarter and each in
form and detail reasonably acceptable to the Administrative Agent, and (2) a Covenant Compliance Certificate as of such fiscal quarter then ended, executed by a Principal Officer. A copy of each item described in clause (1) of this paragraph
shall be delivered within the deadline specified to the Lender’s Government Contracts Administration Division at 8330 Boone Boulevard, 7th Floor, Vienna, Virginia 22182; 
 (c) Annual Financial Statements of the Company and the Holding Company. As soon as available and, in any
event, within 120 days after the end of each fiscal year of the Company, audited financial statements consisting of the consolidated and consolidating balance sheets of the Holding Company, the Company and its Subsidiaries as of the end of such
fiscal year, and consolidated and consolidating statements of income changes in stockholders equity and cash flows of the Holding Company, the Company and its Subsidiaries for such fiscal year, all in reasonable detail and all prepared in accordance
with GAAP, accompanied by an unqualified opinion thereon of an independent certified public accounting firm selected by the Company and reasonably acceptable to the Administrative Agent; 
 (d) Management Letters. Promptly upon receipt thereof, copies of any reports submitted to the Company by independent certified
public accountants in connection with examination of the financial statements of the Company made by such accountants; 
 (e) Notice of Litigation: Proceedings. Promptly after the commencement thereof, notice of all actions, suits, investigations and proceedings before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, affecting a Borrower, that, if determined adversely to such Borrower, could have a Material Adverse Effect; 
  

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 (f) Notice of Defaults and Events of Default. As soon as possible and in any
event, within ten days after the occurrence of each Default and Event of Default, a written notice setting forth the details of such Default or Event of Default and the action that is proposed to be taken by the Borrowers with respect thereto;

 (g) Proxy Statements, etc. If applicable, promptly after the same are sent or upon their becoming available,
copies of (i) all Securities and Exchange Commission reports of the Borrowers, (ii) all financial statements, reports, notices and proxy statements sent or made available by the any Borrower or the Holding Company to its public
equityholders, (iii) all regular and periodic reports and all registration statements and prospectuses, if any, filed by any of the Borrowers with any securities exchange or with the Securities and Exchange Commission or any governmental or private
regulatory authority, and (iv) all press releases and other written statements made available by any of the Borrowers to the public concerning material developments in the business of any of the Borrowers; provided that any such information
shall be deemed delivered to the Administrative Agent upon the filing of such information with the Securities and Exchange Commission; 
 (h) Borrowing Base Certificate, Receivables Detail and Contracts Detail. As soon as available and in any event, (1) within 30 days after the end of each monthly accounting period of the
Borrowers, a Borrowing Base Certificate appropriately completed and executed by a Principal Officer of the Company and including a computation of the Borrowing Base as of the last day of the previous monthly accounting period, accompanied by
(i) an Aging Report as of the last day of the previous monthly accounting period, (ii) such other supporting documents as the Administrative Agent from time to time reasonably may request, and (iii) such invoices, instruments, chattel
paper and other evidence of indebtedness representing any Receivables, duly endorsed to the Administrative Agent, as the Administrative Agent may request; and (2) if required by the Administrative Agent, within 30 days after the end of each
monthly accounting period, an unbilled accounts receivable report, including a summary of work under Government Contracts which have not been awarded to the Borrower, for which funds have not been appropriated and allocated or for which all
applicable contract documents have not been executed, in form and detail acceptable to the Administrative Agent. A copy of each item described in this 5.8(h) shall be delivered within the deadline specified to the Administrative Agent’s Government
Contracts Administration Division at 8330 Boone Boulevard, 7th Floor, Vienna, Virginia 22182; 
 (i) Customer List. If required by the Administrative Agent or any
Lender, within 90 days after the end of each fiscal quarter of the Company, a current Customer List, which shall at all times be maintained by the Administrative Agent, each Issuing Bank and each Lender subject to the confidentiality provisions set
forth in Section 11.11 hereof; 
 (j) Management Changes. Prompt written notice of any new appointments to
the offices of the president, chief executive officer, chairman, chief financial officer or vice president of finance of any Borrower; 
  

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 (k) Projections. If required by the Administrative Agent, within 30 days after
the end of each fiscal year, consolidated and consolidating balance sheets, income statements, cash flows and operating budget of the Borrowers setting forth projections for the next succeeding fiscal year and a pro forma balance sheet and income
statement projections for such fiscal year, and setting forth in reasonable detail the assumptions underlying such projections; 
 (l) Notice of Material Adverse Effect. Prompt notice of any change in the business, assets, liabilities, financial condition or results of operations of a Borrower or any Subsidiary which has had or may have a Material Adverse
Effect; 
 (m) Material Contracts. Promptly after entering into any Material Contract or amendment thereof, a
notice containing a description of such Material Contract or amendment (with copies thereof if requested by the Administrative Agent), and prompt written notice of the termination or breach by any Person of a Material Contract (to the extent any
Borrower has actual knowledge of each termination or breach if such termination or breach is by a Person other than such Borrower); 
 (n) Government Contract Audits. Promptly after any Borrower’s receipt thereof, notice of any final decision of a contracting officer disallowing costs aggregating more than $250,000, which disallowed costs arise out of
any audit of Government Contracts of any Borrower; 
 (o) Environmental Matters. Notice of the occurrence of any
event or any other development by which any Borrower or any of its Subsidiaries (i) fails to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law,
(ii) becomes subject to any Environmental Liability, (iii) receives notice of any claim with respect to any Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the preceding
clauses, which individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect; 
 (p) Estimate Costs to Complete Report. As soon as available and in any event within 45 days after the end of each calendar month report, in form and detail reasonably acceptable to the Administrative Agent, reflecting the
estimated costs to complete and time for completion, as of the end of such month, for all contracts of the Borrowers providing for progress billings; and 
 (q) General Information. Such other information respecting the condition or operations, financial or otherwise, of the Borrowers as the Administrative Agent from time to time reasonably may
request. 
 5.9 Primary Operating Account. Each Borrower agrees to maintain its Primary Operating Account with the
Administrative Agent. 
  

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 5.10 Additional Collateral, etc. 
 (a) With respect to any Property acquired after the Closing Date by the Company or any of its Subsidiaries (other than
(w) Property with an aggregate book value not to exceed $100,000 at any time, (x) any Property described in paragraph (b) or paragraph (c) of this Section, (y) any Property subject to a Lien expressly permitted by
Section 6.1(c)) and (z) Property acquired by a Subsidiary that is a CFC or that is owned in whole or in part, directly or indirectly, by a Subsidiary that is a CFC) as to which the Administrative Agent, for the ratable benefit of the
Lenders, does not have a perfected Lien, the Company or the applicable Subsidiary shall promptly (i) execute and deliver to the Administrative Agent such amendments to the Loan Documents as the Administrative Agent deems necessary or advisable
to grant to the Administrative Agent, for the ratable benefit of the Lenders, a security interest in such Property and (ii) take all actions necessary or advisable to grant to the Administrative Agent, for the ratable benefit of the Lenders, a
perfected first priority security interest in such Property, including without limitation, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by this Agreement or by law or as may be requested by the
Administrative Agent. 
 (b) With respect to any fee interest in any real property, or any leasehold estate in any real
property with a term (including all renewal options) of more than 20 years, in each case having a value (together with improvements thereof) of at least $250,000, acquired after the Closing Date by the Company or any of its Subsidiaries (other than
any such real property owned by a Subsidiary that is a CFC or that is owned in whole or in part, directly or indirectly, by a Subsidiary that is a CFC, the Company or the applicable Subsidiary shall promptly (i) execute and deliver a first
priority Mortgage in favor of the Administrative Agent, for the ratable benefit of the Lenders, covering such real property (ii) if requested by the Administrative Agent, provide the Lenders with (x) title and extended coverage insurance
covering such real property in an amount at least equal to the purchase price of such real estate (or such other amount as shall be reasonably specified by the Administrative Agent) as well as a current ALTA survey thereof, together with a
surveyor’s certificate and (y) any consents or estoppels reasonably deemed necessary or advisable by the Administrative Agent in connection with such mortgage or deed of trust, each of the foregoing in form and substance reasonably
satisfactory to the Administrative Agent and (iii) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent. 
 (c) With respect to any new Subsidiary
created or acquired after the Closing Date by the Company or any of its Subsidiaries (other than any Subsidiary that is a CFC or that is owned in whole or in part, directly or indirectly, by a Subsidiary that is a CFC), the Company or the applicable
Subsidiary shall promptly (i) execute and deliver to the Administrative Agent such amendments to the Loan Documents as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the ratable benefit of the
Lenders, a perfected first priority security interest in the Capital Stock of such new Subsidiary that is owned by the Company or any of its Subsidiaries, (ii) deliver to the Administrative Agent the certificates representing such Capital
Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the Company or such Subsidiary, as the case may be,

  

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and (iii) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and
from counsel, reasonably satisfactory to the Administrative Agent. 
 5.11 Further Assurances. The Company and
each of its Subsidiaries shall from time to time execute and deliver, or cause to be executed and delivered, such additional instruments, certificates or documents, and take all such actions, as the Administrative Agent may reasonably request, for
the purposes of implementing or effectuating the provisions of this Agreement and the other Loan Documents, or of more fully perfecting or renewing the rights of the Administrative Agent and the Lenders with respect to the Collateral (or with
respect to any additions thereto or replacements or proceeds thereof or with respect to any other property or assets hereafter acquired by the Company or any Subsidiary which may be deemed to be part of the Collateral) pursuant hereto or thereto.
Upon the exercise by the Administrative Agent or any Lender of any power, right, privilege or remedy pursuant to this Agreement or the other Loan Documents which requires any consent, approval, recording, qualification or authorization of any
governmental authority, the Company and each of its Subsidiaries will execute and deliver, or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that the Administrative Agent or
such Lender may be required to obtain from the Company or any of its Subsidiaries for such governmental consent, approval, recording, qualification or authorization. 
 5.12 Interest Rate Protection. As promptly as practicable, and in any event within 30 days after the
Closing Date, the Company will enter into, and thereafter maintain in effect, one or more Hedging Transactions on such terms and with such parties as shall be reasonably satisfactory to the Administrative Agent, the effect of which shall be to fix
or limit the interest cost to the Borrower with respect to at least 35% of the Term Loans outstanding on the closing Date for a period of not less than three years from the Closing Date. 
 Section 6 Negative Covenants 
 The Borrowers covenant and agree that so long as any Lender has a Commitment hereunder or the
principal of or interest on any Loan remains unpaid or any fee or any LC Disbursement remains unreimbursed or any Letter of Credit remains outstanding: 
 6.1 Liens. No Borrower will create, incur, assume or permit to exist, any Lien upon or with respect to any of its properties, now owned or hereafter acquired, except: 
 (a) Liens in favor of the Administrative Agent for the ratable benefit of the Lenders pursuant to this Agreement and the other Loan
Documents; 
 (b) Liens that are incidental to the conduct of the business of a Borrower, are not incurred in connection
with the obtaining of credit and do not materially impair the value or use of assets of such Borrower; 
 (c)
purchase-money Liens, whether now existing or hereafter arising (including those arising out of a Capital Lease or a Synthetic Lease) on any fixed assets provided

  

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that (1) any property subject to a purchase money Lien is acquired by such Borrower in the ordinary course of its respective business and the Lien on any such property is created
contemporaneously with such acquisition, (2) each such Lien shall attach only to the property so acquired and the proceeds thereof, and (3) the Debt secured by all such purchase money Liens shall not exceed at any time outstanding $250,000
in the aggregate for all of the Borrowers; 
 (d) Liens imposed by law for taxes, assessments, or charges of any
Governmental Authority for claims not yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained by such Person in accordance with
and if required by GAAP; 
 (e) statutory Liens of landlords and of carriers, warehousemen, mechanics, materialmen, and
other Liens imposed by law or that arise by operation of law in the ordinary course of business from the date of creation thereof, in each case only for amounts not yet due or which are being contested in good faith by appropriate proceedings and
with respect to which adequate reserves or other appropriate provisions are being maintained by such Person in accordance with and if required by GAAP; 
 (f) Liens (1) incurred or deposits made (including, without limitation, surety bonds and appeal bonds) in connection with workers compensation, unemployment insurance and other types of social
security benefits or to secure the performance of tenders, bids, leases, contracts (other than for the repayment of Debt), statutory obligations and other similar obligations, or (2) arising as a result of progress payments under government
contracts; 
 (g) the interest or title of any lessor or sublessor in Property leased under an
operating lease or of any licensor or sublicensor in Property licensed to a Borrower; 
 (h) encumbrances and restrictions on real property (including
easements, covenants, rights of way and similar restrictions of record) that do not materially interfere with the present use of such real property; and 
 (i) Liens not otherwise permitted hereunder that do not exceed $50,000 at any time outstanding. 
 6.2 Debt. No Borrower will create, incur, assume or permit to exist, any Debt, except: (a) the Obligations; (b) Debt of a Borrower subordinated to the Obligations on terms satisfactory
to the Required Lenders; (c) Debt of a Borrower or any Subsidiary (including Debt arising out of a Capital Lease or a Synthetic Lease) secured by purchase-money Liens permitted by this Agreement; (d) Guarantees in respect of Debt not prohibited hereunder; (e) intercompany
Debt and Guarantees between the Borrowers; (f) obligations arising from agreements providing for indemnification, purchase price adjustments and earnout payments arising in connection with the acquisition not prohibited hereunder;
(g) unsecured Debt not otherwise permitted by this Section 6.2 in an amount not to exceed $250,000 in the aggregate for all Borrowers; and (h) Debt arising from the honoring by a bank or other financial institution of a check, draft
or similar instrument inadvertently drawn in the ordinary course of business against insufficient funds, so long as such Debt is promptly repaid. 
  

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 6.3 Mergers, etc. No Borrower will merge or consolidate with any Person other
than a Borrower. 
 6.4 Reserved. 
 6.5 Sale and Leaseback. No Borrower will sell, transfer or otherwise dispose of, any real or personal property to any Person and thereafter, directly or indirectly, lease back the same or
similar property. 
 6.6 Restricted Payments. No Borrower make any Restricted Payment provided
that, (i) a Borrower may make Restricted Payments to another Borrower, (ii) Restricted Payments may be made to consummate the transactions contemplated by the Stock Purchase Agreement, and (iii) Restricted Payments may be made to employees
who terminate employment with the Company and are eligible to receive stock options, provided that no Default or Event of Default shall have occurred or will occur after giving effect thereto and the aggregate amount of such Restricted Payments
shall not exceed $250,000 in any fiscal year of the Company. 
 6.7 Sale of Assets. No
Borrower will sell, lease, assign, transfer, license or otherwise dispose of, any of its now owned or hereafter acquired assets, except for (a) any inventory and Intellectual Property sold, licensed or leased in the ordinary course of business; (b) the Disposition of assets
(other than such inventory and Intellectual Property) no longer used or useful in the conduct of its business; (c) the disposition of Cash Equivalents, Restricted Payments or any other Investment permitted hereunder; (d) intercompany transfers of
assets or property among the Borrowers; (e) discounts or forgiveness of accounts receivable in the ordinary course of business in connection with the collection or compromise thereof, to the extent permitted by this Agreement; and (f) other
dispositions not to exceed $250,000 per fiscal year in the aggregate for all Borrowers. 
 6.8 Investments, Loans,
etc. No Borrower will purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger), any common stock, evidence of indebtedness, Capital Stock or other equity
interests or other securities (including any option, warrant, or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other
interest in, any other Person (all of the foregoing being collectively called “Investments”), or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person that constitute a business unit,
except: 
 (a) Cash Equivalents; 
 (b) Travel advances or other advances in an aggregate amount not to exceed in aggregate amount for all Borrowers of $100,000 at any one time outstanding, which are made to any employee of a
Borrower in the ordinary course of such Borrower’s business; 
 (c) Hedging Agreements entered into in the ordinary
course of business to hedge or mitigate risks to which a Borrower is exposed in the conduct of its business or the management of its liabilities; 
  

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 (d) Investments in deposit accounts in which the Administrative
Agent has been granted a security interest under the Loan Documents; 
 (e) Investments (including debt obligations)
received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with customers and suppliers arising in the ordinary course of business; 
 (f) Receivables owing to a Borrower created or acquired in the ordinary course of business and payable on customary trade terms of
such Borrower; 
 (g) Other Investments so long as the aggregate amount thereof (determined as the amount originally
advanced, loaned or otherwise invested (without giving effect to any write-downs or write-offs thereof), less any realized returns on the respective investment not to exceed the original amount invested) at no time outstanding exceeds $250,000 in
the aggregate for all Borrowers; 
 (h) Existing Investments described on Schedule 6.8; and 
 (i) Investments in new Subsidiaries, other than a CFC, which become Borrowers in accordance with the terms of this Agreement.

 6.9 Reserved. 
 6.10 Acquisitions. No Borrower will form a CFC, become a partner or joint venturer with any
person, or purchase or acquire all or substantially all of the assets of any Person, or any division or business line of any Person, or any Capital Stock of or ownership interest in any other Person. If the Required Lenders consent to the
acquisition of a Subsidiary by a Borrower, or if a Subsidiary is formed by a Borrower, such Borrower will cause such Subsidiary to (a) execute and deliver to the Administrative Agent an Assumption Agreement, and (b) satisfy all of the conditions set
forth in Section 8.3, and until such conditions are satisfied, no Receivables of such Subsidiary may be included in the Borrowing Base. 
 6.11 Transactions with Affiliates. No Borrower will enter into any transaction, including, without limitation, the purchase, sale or exchange of property or the rendering of any
service, with any Affiliate, except (a) in the ordinary course of and pursuant to the reasonable requirements of such Borrower’s business and upon fair and reasonable terms no less favorable to such Borrower than would be applicable in a
comparable arm’s-length transaction with a Person not an Affiliate, (b) transactions between Borrowers (c) reasonable payments to non-employee directors who are not affiliated with Affiliates of the Borrowers; (d) compensation of
officers and employees (including bonuses) and other benefits (including retirement, health, stock options and other benefit plans) and indemnification arrangements arising in the ordinary course of business; (e) the payment of incentive bonuses to
employees and officers of the Borrowers; and (f) transactions contemplated by the Stock Purchase Agreement; provided, however, that in no event shall a Borrower, directly or indirectly, pay any management, consulting or similar fees to any
Affiliate or to any manager, director, officer or employee of the Borrowers or any of their Subsidiaries without the prior written consent of the Administrative Agent. 
  

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 6.12 Consolidated Tax Return. No Borrower shall file or become subject
to a consolidated federal income tax return with any Person other than another Borrower and the Holding Company, exclusive of any Subsidiaries or Affiliates of Holding Company which are not Borrowers. 
 Section 7 Financial Covenants 
 The Borrowers agree that so long as any Lender has a Commitment hereunder or the principal of or interest on any Loan remains unpaid or any fee or any LC Disbursement remains unreimbursed or any Letter of
Credit remains outstanding: 
 7.1 Minimum Net Worth. Net Worth shall not be less than
the Minimum Compliance Level as of March 31, 2007 or at
any time thereafter. 
 7.2 Maximum Funded Debt Ratio. The Funded Debt Ratio shall not exceed (a) 3.00
to 1 at any time prior to March 31, 2008, or (b) 2.75 to 1 as of March 31, 2008, and all times thereafter prior to March 31, 2009, and (c) 2.50 to 1 as of March 31, 2009, or at any time thereafter. 
 7.3 Fixed Charges Coverage Ratio. The Fixed Charges Coverage Ratio shall not be less than 1.20 to 1
as of any Test End Date. 
 Section 8 Conditions Of Lending 
 The obligations of the Lenders to make Loans and the obligations of the Issuing Bank to issue any Letter of Credit shall be subject to the following conditions: 
 8.1 Conditions Precedent to Closing. The Closing and the initial disbursement of the Loans shall be subject to the
following conditions precedent: 
 (a) The Loan Documents shall have been appropriately completed, duly executed by the
parties thereto, recorded where necessary and delivered to the Administrative Agent. 
 (b) No Default or Event of
Default shall have occurred and be continuing. 
 (c) All representations and warranties contained herein shall be true
and correct in all material respects at the Closing Date. 
 (d) All legal matters incident to the Loans shall be
reasonably satisfactory to the Administrative Agent, and the Borrowers agree to execute and deliver to the Administrative Agent such additional documents and certificates relating to the Loans as the Administrative Agent reasonably may request.

  

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 (e) Financing statements in form and substance satisfactory to the Administrative
Agent shall have been properly filed in each office where necessary to perfect the security interest of the Administrative Agent, for the ratable benefit of the Lenders, in the Collateral, termination statements shall have been filed with respect to
any other financing statements covering all or any portion of the Collateral, except with respect to financing statements perfecting Liens permitted by this Agreement, and all taxes and fees with respect to such recording and filing shall have been
paid by the Borrowers. 
 (f) The Borrowers shall have delivered to the Administrative Agent
(1) certified copies of evidence of all corporate and company actions taken by the Borrowers and the Holding Company to authorize the execution and delivery of the Loan Documents, (2) certified copies of the articles or certificate of
incorporation, bylaws, articles or certificate of organization and operating agreement of the Borrowers and the Holding Company, (3) a certificate of incumbency for the officers of the Borrowers and the Holding Company executing the Loan Documents, (4) a good standing certificate, dated not
more than 30 days prior to the Closing Date, from the appropriate state official of any state in which the Borrowers or the Holding Company are incorporated, and (5) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request.

 (g) The Administrative Agent shall have received (l) a Borrowing Base Certificate,
(2) an Aging Report, (3) a contract status and backlog report relating to Eligible Receivables for the period ended on December 31, 2006, in form and substance satisfactory to the Lender, (4) the financial statements of the
Company for the period ended on December 31, 2006, and (5) a pro forma Covenant Compliance Certificate, giving effect to the Transaction and the initial disbursement of the Loans, and certifying that no Default or Event of Default exists as of the Closing Date, nor would any Default or
Event of Default occur after giving effect thereto. 
 (h) The Administrative Agent shall have received a field
examination report of the Collateral in form and substance acceptable to it. 
 (i) The Administrative Agent shall have
received financing statement, judgment and tax lien searches reflecting that there are no Liens outstanding against the Collateral other than those created or permitted by this Agreement or the other Loan Documents. 
 (j) Reserved. 
 (k) The Administrative Agent shall have received evidence that the insurance on the Collateral required by this Agreement has been obtained and is in full force and effect. 
 (l) The Administrative Agent shall have received a written opinion of Latham & Watkins LLP, counsel to the Company
and Linowes and Blocher LLP. Maryland counsel to the Company, each in form and substance reasonably satisfactory to the Administrative Agent. 
 (m) There shall not have occurred a material adverse change since March 31, 2006, in the business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or
prospects of the Borrowers and their respective Subsidiaries taken as a whole or in the facts and information regarding such entities as represented to date. 
  

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 (n) The absence of any action, suit, investigation or proceeding pending or
threatened in any court or before any arbitrator or governmental authority that purports (a) to materially and adversely affect the Borrowers or their respective Subsidiaries, or (b) to affect any transaction contemplated hereby or the
ability of the Borrowers and their respective Subsidiaries or any other obligor under the guarantees or security documents to perform their respective obligations under the Loan Documents. 
 (o) The transactions subject to the Stock Purchase Agreement and the Related Acquisition Documents shall have been consummated, or
shall be consummated simultaneously with the initial Loan disbursed hereunder, and the Capital Stock of the Company acquired by the Holding Company and the Company, in accordance with the terms thereof and in compliance with applicable law and
regulatory approvals. The Stock Purchase Agreement and Related Acquisition Documents as approved by the Lender shall not have been altered, amended or otherwise changed or supplemented in any material respect or any material condition therein waived
without the prior written consent of the Administrative Agent. 
 (p) The corporate capital and
ownership structure (including articles or certificate of incorporation, by-laws, articles or certificate of organization and operating agreements), shareholders agreements and management of the Borrowers (after giving effect to the purchase of the
Capital Stock of the Company by the Holding Company), shall be satisfactory to the Administrative Agent. 
 (q) The
Administrative Agent shall have received a solvency certificate from the chief financial officer of the Company which shall document the solvency of the Borrowers after giving effect to the transactions contemplated hereby. 
 (r) After giving effect to the closing of the Stock Purchase Agreement and the payment of all amounts in respect thereto, the closing
of this Agreement and the Loans and Letters of Credit outstanding hereunder. Closing Liquidity shall not be less than the greater of (1) $7,500,000, or (2) the aggregate amount of payroll expense of the Company and its Subsidiaries for the
two most recently ended calendar months. 
 (s) The Administrative Agent shall have received a duly completed Covenant
Compliance Certificate as of the last day of the fiscal quarter of the Company ended on December 31, 2006 giving pro forma effect to any repayments or incurrence of Debt after such date (including any incurrence of Loans under this Agreement on
the Closing Date), signed by a Principal Officer of the Company. 
 (t) The Administrative Agent shall have received a
duly completed Borrowing Base Certificate as of December 31, 2006, giving pro forma effect to the Revolving Loans made under this Agreement on the Closing Date, signed by a Principal Officer of the Company. 
  

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 8.2 Conditions Precedent to Subsequent Disbursements. The disbursement and
issuance of subsequent Loans and Letters of Credit shall be subject to the following conditions precedent: 
 (a) No
Default or Event of Default shall have occurred and be continuing. 
 (b) No event or condition shall have occurred which
has a Material Adverse Effect. 
 (c) All representations and warranties of the Borrowers contained in the Loan Documents
shall be true and correct in all material respects at the date of such disbursement, except for representations and warranties that relate to an earlier date (in which case such representations and warranties shall have been true and accurate on and
as of such earlier date). 
 (d) No change shall have occurred in any law or regulations thereunder or interpretations
thereof that would make it illegal for the Administrative Agent or any Lender to make Loans, or for the Issuing Bank to issue Letters of Credit, hereunder. 
 (e) If required by the Administrative Agent because the Administrative Agent has reasonably determined, in good faith, that after giving effect to such disbursement, the aggregate principal amount
of the Borrowing Base Obligations would exceed the Borrowing Base, the Borrowers shall have delivered to the Administrative Agent a current Borrowing Base Certificate and a current Aging Report duly executed by a Principal Officer of the Company and
appropriately completed, and such other supporting data and documentation relating to the Collateral as may be required by the Administrative Agent in its reasonable discretion. 
 8.3 Conditions to Subsidiaries Becoming Borrowers. Each Subsidiary of the Company (other than a CFC formed or
acquired with the consent of the Required Lenders) shall become a Borrower under this Agreement and shall satisfy the following conditions upon the acquisition or formation of such Subsidiary: 
 (a) The Subsidiary shall execute and deliver to the Administrative Agent an Assumption Agreement. 
 (b) The Administrative Agent shall have received an opinion of counsel to the Subsidiary, addressed to the Administrative Agent,
covering such matters as the Administrative Agent may reasonably request, in form and substance satisfactory to the Administrative Agent. 
 (c) Financing statements in form and substance reasonably satisfactory to the Administrative Agent shall have been properly filed in each office where necessary to perfect the security interest of
the Administrative Agent (held for the ratable benefit of the Lenders) in the Collateral of the Subsidiary, termination statements shall have been filed with respect to any other financing statements covering all or any portion of such Collateral
(except with respect to Liens or security interests created or permitted by this Agreement or the other Loan Documents), all taxes and fees with respect to such recording and filing shall have been paid by such Subsidiary and the Administrative
Agent shall have received such lien searches or reports as it shall require confirming that the foregoing filings and recordings have been completed. 
  

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 (d) The Subsidiary shall have delivered the following documents to the Administrative
Agent, each of which shall be certified as of the date on which it is to become a Borrower, by its secretary or representative performing similar functions: (1) copies of evidence of all actions taken by the Subsidiary to authorize the execution and
delivery of the Assumption Agreement and the other Loan Documents; (2) copies of the articles or certificate of incorporation and bylaws (or comparable organizational documents) of the Subsidiary; and (3) a certificate as to the incumbency and
signatures of the officers executing the Loan Documents. 
 (e) The Administrative Agent shall have received a
certificate of good standing and qualification (or similar instrument) issued by the appropriate state official of the state of incorporation of the Subsidiary, dated not more than 30 days prior to the date of the applicable Loan Documents.

 (f) The Administrative Agent shall have received a listing and aging of Receivables of such Subsidiary, a listing of
accounts payable of the Subsidiary, a report setting forth the status of all contracts relating to its Eligible Receivables and such other financial information of such Subsidiary as may be requested by the Administrative Agent from time to time,
all of which shall be of a current date and shall be in form and substance satisfactory to the Administrative Agent. 
 (g) If required by the Administrative Agent, the Administrative Agent shall have received a satisfactory field examination of the Collateral and internal control systems of the Subsidiary performed by a consultant selected by
the Administrative Agent, and the Borrowers shall have reimbursed the Administrative Agent for the cost of such consultant. 
 Section 9 Default 
 9.1 Events of Default. Each of the following shall constitute an Event of
Default under this Agreement: 
 (a) Failure of a Borrower to pay any Obligation, including, without limitation, the
principal of or interest on any Revolving Note, Term Note or the Loans, or any reimbursement obligation in respect of any LC Disbursement or other amounts due under a Letter of Credit Agreement, within three days after the same shall become due and
payable, whether at maturity, or otherwise; or 
 (b) If a Borrower refuses to permit the Administrative Agent to
inspect, examine, verify or audit the Collateral in accordance with the provisions of this Agreement; or 
 (c) Failure
of a Borrower to perform or observe any covenant contained in Sections 6 or 7 of this Agreement; or 
  

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 (d) Failure of the Borrower to perform its obligations under Section 5.8(h), and
such failure shall continue for a period of two Business Days; or 
 (e) Failure of a Borrower to perform or observe any
other term, condition, covenant, warranty, agreement or other provision contained in this Agreement (except any such failure resulting in the occurrence of another Event of Default described in this Section), which failure continues for 30 days
after the earlier of (1) the date upon which a Principal Officer of any Borrower knew of such failure or (2) date upon which written notice thereof is given to the Borrowers by the Administrative Agent; or 
 (f) If any representation or warranty made or deemed made by a Borrower in this Agreement, any Loan Document or any statement or
representation made in any certificate, report or opinion delivered pursuant to this Agreement (including any Covenant Compliance Certificate, Borrowing Base Certificate or financial statements) or in connection with any borrowing under this
Agreement was materially untrue or is breached in any material respect; or 
 (g) If, as a result of default, any other
obligation of a Borrower for the payment of any Debt in excess of $250,000 to any other creditor becomes or is declared to be due and payable prior to the expressed maturity thereof, unless and to the extent that the declaration is being contested
in good faith in a court of appropriate jurisdiction; or 
 (h) The Company or a Subsidiary makes an assignment for the
benefit of creditors, files a petition in bankruptcy petitions or applies to any tribunal for any receiver or any trustee of the Company or such Subsidiary or any substantial part of its property, or commences any proceeding relating to the Company
or such Subsidiary under any reorganization, arrangement, readjustments of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or 
 (i) If, within 60 days after the filing of a bankruptcy petition or the commencement of any proceeding against the Company or a
Subsidiary seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, the proceeding shall not have been dismissed, or, if, within 60 days
after the appointment, without the consent or acquiescence of the Company or such Subsidiary, of any trustee, receiver or liquidator of the Company or a Subsidiary or of all or any substantial part of the properties of the Company or a Subsidiary,
the appointment shall not have been vacated; or 
 (j) Any judgment against a Borrower in excess of $250,000 or any
attachment in excess of $250,000 against any property of a Borrower that remains unpaid, undischarged, unbonded or undismissed for a period of 30 days, unless and to the extent that the judgment or attachment is appealed in good faith in a court of
higher jurisdiction and the appeal remains pending; or 
 (k) If any of the following events shall occur or exist with
respect to any Borrower or any employee pension benefit plan established, maintained or to which contributions have been made by any Borrower or any other Person that, together with a

  

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Borrower, would be treated as a single employer under § 4001 of ERISA, and that the same would have a Material Adverse Effect: (1) any prohibited transaction (as defined in § 406 of
ERISA or § 4975 of the Code), (2) any reportable event (as defined in § 4043 of ERISA and the regulations issued thereunder), (3) the filing under § 4041 of ERISA of a notice of intent to terminate any such plan or the
termination of such plan, or (4) the institution of proceedings by the PBGC under § 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such plan; or 
 (l) Reserved; or 
 (m) The dissolution, liquidation or termination of existence of any Borrower unless the assets of the dissolved, liquidated or terminated Borrower are transferred to another Borrower; or 
 (n) If a Borrower fails to give the Administrative Agent or any Lender any notice required by this Agreement within ten days after
the occurrence of the event giving rise to the obligation to give such notice, provided that such failure to give notice shall not constitute an Event of Default if the applicable Event of Default or breach is cured within any grace period that
otherwise would have been applicable had the notice been timely given; or 
 (o) If a Change in Control shall occur; or

 (p) If any Borrower or any Subsidiary shall be debarred or suspended from any contracting with the Government; or
if a notice of debarment or notice of suspension shall have been issued to any Borrower or any Subsidiary; or the actual termination for default of any Material Contract with the Government, or if a notice of termination for default shall have been
issued to or received by any Borrower or any Subsidiary with respect to a Material Contract and such notice could reasonably be expected to have a Material Adverse Effect; or 
 (q) The Loan Documents shall for any reason cease to create a valid and perfected first priority security interest in any of the
Collateral with value in excess of $100,000 purported to be covered thereby, subject to Liens permitted by this Agreement or any other Loan Document, or if any Loan Document ceases to be in full force and effect; or 
 (r) The occurrence of a specified event of default under any other Loan Document and the expiration of all applicable cure periods.

 9.2 Remedies upon Default. Upon the occurrence of an Event of Default, the following provisions shall be
applicable: 
 (a) The Administrative Agent, at its option, may, and upon the written request of the Required Lenders,
shall, terminate the Commitments (whereupon the Commitment of each Lender shall terminate immediately), terminate the obligations of the Lenders to make Loans, and the obligations of the Issuing Bank to issue Letters of Credit, under this Agreement,
and to declare all Obligations, whether incurred prior to, contemporaneous with or subsequent to the date of this Agreement, and whether represented in writing or otherwise, immediately due and

  

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payable and may exercise all of rights and remedies of the Lenders against the Borrowers and any Collateral. The Administrative Agent also, at its option, may, and upon the written request of the
Required Lenders, shall, require the Borrowers to pay (for the benefit of the Issuing Bank), and the Borrowers agree to pay, to the Administrative Agent (for the benefit of the Issuing Bank) an amount of cash equal to the aggregate amount of the LC
Exposure then outstanding, and any amounts paid by the Borrowers shall be held by the Administrative Agent in a cash collateral account, over which the Administrative Agent shall have the exclusive power of withdrawal, for the benefit of the Issuing
Bank, as security for the Obligations arising out of the Letters of Credit and the Letter of Credit Agreements. 
 (b)
The Administrative Agent may foreclose its lien and security interest in the Collateral, held for the ratable benefit of the Lenders, in any way permitted by applicable law and shall have, without limitation, the remedies of a secured party under
the UCC. The Administrative Agent may enter the premises of any Borrower in compliance with the UCC without legal process and without incurring liability to any Borrower and remove the Collateral to such place or places as the Administrative Agent
may deem advisable, or the Administrative Agent may require the Borrowers to assemble the Collateral and make the Collateral available to the Administrative Agent at a convenient place in accordance with the UCC and, with or without having the
Collateral at the time or place of sale, the Administrative Agent may, for the ratable benefit of the Lenders, sell or otherwise dispose of all or any part of the Collateral whether in its then condition or after further preparation or processing,
either at public or private sale or at any broker’s board, in lots or in bulk, for cash or for credit, at any time or place, in one or more sales and upon such terms and conditions as the Administrative Agent may elect. The Administrative Agent
shall give not less than ten Business Days’ prior written notice to the Borrowers of the time and place of any public sale of the Collateral or the time after which the Collateral may be sold in a private sale, which each Borrower agrees
constitutes commercially reasonable notice. At any such sale the Administrative Agent or any Lender may be the purchaser, subject to the applicable provisions of the UCC. 
 (c) The Borrowers shall, at the request of the Administrative Agent, notify account debtors and other persons obligated on any of the Collateral of the security interest of the Administrative Agent
(held for the ratable benefit of the Lenders) in any account, chattel paper, general intangible, instrument or other Collateral and that payment thereof is to be made directly to the Administrative Agent or to any financial institution designated by
the Administrative Agent as the Administrative Agent’s agent therefor, and the Administrative Agent may itself, without notice to or demand upon such Borrower, so notify account debtors and other persons obligated on Collateral. After the
making of such a request or the giving of any such notification, such Borrower shall hold any proceeds of collection of accounts, chattel paper, general intangibles, instruments and other Collateral received by such Borrower as trustee for the
Administrative Agent without commingling the same with other funds of such Borrower and shall turn the same over to the Administrative Agent in the identical form received, together with any necessary endorsements, or assignments. The Administrative
Agent shall apply the proceeds of collection of accounts, chattel paper, general intangibles, instruments and other Collateral received by the Administrative Agent to the Obligations, ratably in favor of the Lenders, such proceeds to be immediately
entered after final payment in cash or other immediately available funds of the items giving rise to them. 
  

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 (d) Notwithstanding any other provisions of this Agreement to the contrary, after the
occurrence of an Event of Default and the declaration of the Obligations to be immediately due and payable in accordance with the provisions of this Agreement, all amounts collected or received by the Administrative Agent or any Lender on account of
the Obligations or any other amounts outstanding under any of the Loan Documents or in respect of the Collateral shall be paid over or delivered as follows: 
 (1) FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including without limitation reasonable
attorneys’ fees) of the Administrative Agent in connection with enforcing the rights of the Lenders under the Loan Documents and any advances made by the Administrative Agent with respect to the Collateral pursuant to Section 9.2(h);

 (2) SECOND, to the payment of all reasonable out-of-pocket costs and expenses of each of the Lenders in
connection with enforcing its respective rights under the Loan Documents or otherwise with respect to the Obligations owing to such Lender (including without limitation, reasonable attorneys’ fees) and the reasonable fees of appraisers,
investment bankers or other professionals retained by the Administrative Agent to provide services to sell, collect or otherwise dispose of the Collateral; 
 (3) THIRD, to the payment of all of the Obligations consisting of accrued fees and interest, and including with respect to any Hedging Agreement between any Borrower and any Lender, or any Affiliate of a
Lender, any fees, premiums and scheduled periodic payments due under such Hedging Agreement and any interest accrued thereon; 
 (4) FOURTH, to the payment of the outstanding principal amount of the Obligations and the payment or cash collateralization of the outstanding LC Exposure and including with respect to any Hedging
Agreement between any Borrower and any Lender, or any Affiliate of a Lender, any breakage, termination or other payments due under such Hedging Agreement and any interest accrued thereon; 
 (5) FIFTH, to all other Obligations and other obligations which shall have become due and payable under the Loan Documents or
otherwise and not repaid pursuant to clauses “FIRST” through “FOURTH” above; 
 (6) SIXTH, to
all other Debt owing by the Company and its Subsidiaries to the Administrative Agent under corporate credit card arrangements or other bank products; and 
 (7) SEVENTH, the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus. 
  

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 In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of the Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then outstanding Aggregate Exposure and obligations
outstanding under the Hedging Agreements (if any) held by such Lender (and its Affiliates in the case of Hedge Agreement obligations) bears to the aggregate then outstanding Aggregate Exposure and obligations outstanding under the Hedging Agreements
between any Borrower and any Lender or any Affiliate of a Lender that are required of amounts available to be applied pursuant to clauses “THIRD” and “FOURTH” above; and (iii) to the extent that any amounts available for
distribution pursuant to clause “FOURTH” above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Administrative Agent in a cash collateral account and applied
(A) first, to reimburse the Issuing Bank from time to time for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types described in clauses
“FOURTH” and “FIFTH” above in the manner provided in this Section. 
 (e) To the extent that the
Obligations are now or hereafter secured by property other than the Collateral described herein or by the Guarantee, endorsement or property of any other Person, the Administrative Agent, at its option, may, and upon the written request of the
Required Lenders, shall, proceed against such other Guarantee, endorsement or property upon the occurrence of an Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which rights, security, liens,
security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying or affecting any of them or any of the Administrative
Agent’s rights hereunder. 
 (f) Subject to Section 2.25(f), the Administrative Agent is hereby authorized at
any time or from time to time, without prior notice to the Borrowers (any such notice being expressly waived by each Borrower), to setoff and apply any deposit (general or special, time or demand, provisional or final) or investment account at any
time held, including any certificate of deposit, and other indebtedness at any time owed by the Administrative Agent or any Lender, whether or not any such deposit or indebtedness is then due, to or for the credit or account of any Borrower against
any and all of the Obligations. The Administrative Agent shall give written notice of any setoff to the Borrowers. 
 (g)
EACH BORROWER, HAVING KNOWLEDGE THAT IT MAY BE ENTITLED TO NOTICE AND A HEARING PRIOR TO REPOSSESSION OF THE COLLATERAL, WAIVES ANY RIGHT THAT IT MAY HAVE TO NOTICE OF FORECLOSURE, OTHER THAN NOTICES REQUIRED BY THE UCC, TO ANY HEARING THAT MAY BE
HELD RELATING TO FORECLOSURE, AND TO ANY NOTICE THAT MAY BE REQUIRED TO BE GIVEN BY THE ADMINISTRATIVE AGENT OR ANY LENDER PRIOR TO SUCH HEARING, OTHER THAN THE NOTICES OR HEARINGS REQUIRED BY THE LOAN DOCUMENTS, THE UCC OR ANY OTHER APPLICABLE LAW.
THE ADMINISTRATIVE AGENT, EACH LENDER AND EACH BORROWER EXPRESSLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. 
  

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 (h) The Administrative Agent itself may perform or comply, or otherwise cause
performance or compliance, for the ratable benefit of the Lenders, with the obligations of a Borrower contained in this Agreement, including, without limitation, the obligations of each Borrower to defend and insure the Collateral. The expenses of
the Administrative Agent incurred in connection with such performance or compliance, together with interest thereon at the Base Rate plus 2%, from the date such expenses are paid until the same are repaid, shall be payable by the Borrowers to the
Administrative Agent on demand and shall constitute Obligations. 
 Section 10 The Administrative Agent 

10.1 Appointment of Administrative Agent. 
 (a) Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes it to take such actions on such Lender’s behalf and to exercise such powers as are delegated to
the Administrative Agent under this Agreement and the other Loan Documents, together with all such actions and powers that are reasonably incidental thereto. The Administrative Agent may perform any of its duties hereunder by or through any one or
more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers through their respective Affiliates. The exculpatory provisions set forth
in this Section shall apply to any such sub-agent and the Affiliates of the Administrative Agent and any such sub-agent and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent. 
 (b) The Issuing Bank shall act on behalf of the Lenders with respect to
any Letters of Credit issued by it and the documents associated therewith until such time and except for so long as the Administrative Agent may agree at the request of the Required Lenders to act for the Issuing Bank with respect thereto; provided,
that the Issuing Bank shall have all the benefits and immunities (i) provided to the Administrative Agent in this Section 10 with respect to any acts taken or omissions suffered by the Issuing Bank in connection with Letters of Credit issued by
it or proposed to be issued by it and the application and agreements for letters of credit pertaining to the Letters of Credit as fully as the term “Administrative Agent” as used in this Section 10 included the Issuing Bank with respect to
such acts or omissions and (ii) as additionally provided in this Agreement with respect to the Issuing Bank. 
 10.2
Nature of Duties of Administrative Agent. The Administrative Agent shall not have any duties or obligations except those expressly set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing,
(a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except those discretionary rights and powers expressly contemplated by the Loan Documents that the

  

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Administrative Agent is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary as otherwise provided herein), and
(c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Borrower or any of its Subsidiaries that
is communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent will promptly deliver to the Lenders copies of any financial statements and other information required by Section 5.8,
default notices or other material notices sent to the Borrowers under the terms of the Loan Documents, and will promptly provide to the Lenders copies of any material notices or other material information received from Borrowers that are not
otherwise required to be provided to the Lenders, and the Lenders agree that the Administrative Agent may provide such material notices and other material information to the Lenders by posting it to a secure website to which the Lenders are given
access. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary as otherwise provided
herein) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until written notice thereof is given to the Administrative
Agent by the defaulting Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements, or other terms and
conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition precedent to the
effectiveness of this Agreement or any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
 10.3 Lack of Reliance on the Administrative Agent. Each of the Lenders, the Swingline Lender and the Issuing Bank acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders, the Swingline Lender and the Issuing Bank
also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, continue to make its own decisions in taking or not taking
of any action under or based on this Agreement, any related agreement or any document furnished hereunder or thereunder. 
 10.4 Certain Rights of the Administrative Agent. If the Administrative Agent shall request instructions from the Required Lenders with respect to any action or actions (including the failure to act) in connection with this
Agreement, the Administrative Agent shall be entitled to refrain from such act or taking such act, unless and until it shall have received instructions from such Lenders; and the Administrative Agent shall not incur liability to any Person by reason
of so refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder in accordance with the
instructions of the Required Lenders where required by the terms of this Agreement. 
  

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 10.5 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed, sent or made by the proper
Person. The Administrative Agent may also rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person and shall not incur any liability for relying thereon. The Administrative Agent may consult with
legal counsel (including counsel for the Borrowers), independent public accountants and other experts selected by it and shall not be liable for any action taken or not taken by it in accordance with the advice of such counsel, accountants or
experts. 
 10.6 Administrative Agent’s Reimbursement and Indemnification by Lenders. The Lenders agree to
reimburse and indemnify the Administrative Agent ratably in proportion to their respective Aggregate Exposure Percentages (or, if the Commitments have been terminated, in proportion to their Aggregate Exposure Percentages immediately prior to such
termination) (i) for any amounts not reimbursed by any Borrower for which the Administrative Agent is entitled to reimbursement by the Borrowers under the Loan Documents, (ii) for any other expenses incurred by the Administrative Agent on
behalf of the Lenders, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the Administrative Agent in connection with any dispute
between the Administrative Agent and any Lender or between or among two or more of the Lenders) and (iii) for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated
thereby (including, without limitation, for any such amounts incurred by or asserted against the Administrative Agent in connection with any dispute between the Administrative Agent and any Lender or between or among two or more of the Lenders), or
the enforcement of any of the terms of the Loan Documents or of any such other documents, provided that (i) no Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Administrative Agent and (ii) any indemnification required pursuant to Section 11.3 shall, notwithstanding the provisions
of this Section 10.6, be paid by the relevant Lender in accordance with the provisions thereof. The obligations of the Lenders under this Section 10.6 shall survive payment of the Obligations and termination of this Agreement. 

10.7 The Administrative Agent in its Individual Capacity. The bank serving as the Administrative Agent shall have the same
rights and powers under this Agreement and any other Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent; and the terms
“Lenders”, “Required Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent, in its individual capacity. The bank acting as the
Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with any Borrower or any Subsidiary or Affiliate of any Borrower as if it were not the Administrative Agent hereunder.

  

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 10.8 Successor Administrative Agent. 
 (a) The Administrative Agent may resign at any time by giving notice thereof to the Lenders and the Company. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent, subject to the approval by the Borrowers provided that no Event of Default shall exist at such time. If no successor Administrative Agent shall have
been so appointed, and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a
successor Administrative Agent, subject to the approval by the Borrowers provided that no Event of Default shall exist at such time, which shall be a commercial bank organized under the laws of the United States of America or any state thereof or a
bank which maintains an office in the United States, having a combined capital and surplus of at least $500,000,000. 
 (b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a successor, such successor Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. If within 45 days after written
notice is given of the retiring Administrative Agent’s resignation under this Section 10.8 no successor Administrative Agent shall have been appointed and shall have accepted such appointment, then on such 45th day (i) the retiring Administrative Agent’s resignation
shall become effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (iii) the Required Lenders shall thereafter perform all duties of the retiring
Administrative Agent under the Loan Documents until such time as the Required Lenders appoint a successor Administrative Agent as provided above; provided however, that appropriate arrangements to maintain the effectiveness of the security interests
granted herein shall be retaken prior to any such resignation being effective. After any retiring Administrative Agent’s resignation hereunder, the provisions of this Section 10 shall continue in effect for the benefit of such retiring
Administrative Agent and its representatives and agents in respect of any actions taken or not taken by any of them while it was serving as the Administrative Agent. 
 10.9 Authorization to Execute other Loan Documents. Each Lender hereby authorizes the Administrative Agent to execute on behalf of all Lenders all Loan Documents other than this Agreement.

 10.10 Other Agents. The Arranger shall have no obligations, responsibilities or duties under this Agreement or
under any other Loan Document. 
  

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 Section 11 Miscellaneous 
 11.1 Notices. 
 (a) Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications to any party herein to be effective shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
  

			
	To the Borrowers:	  	 The Analysis Corporation
 1501 Farm Credit Drive
 Suite 2300
 McLean, VA 22102-5000
 Attention: Jerry Robinson
 Facsimile: (703) 218-6141

		
		  	 SFA, Inc.
 2220 Defense
Highway
 Suite 405
 Crofton, MD 21114

 Attention: Jerry Robinson
 Facsimile:
(703) 218-6141

		
	To the Administrative Agent or Swingline Lender:	  	 SunTrust Bank
 8330 Boone
Blvd.
 Suite 700
 Vienna VA 22182-2624

 Attention: Lindsey Rheaume, Senior Vice President
 Telecopy Number: 703-442-1613

		
	With a copy to:	  	 SunTrust Bank
 Agency
Services
 303 Peachtree Street, N.E./ 25th Floor
 Atlanta, Georgia 30308
 Attention: Ms. Doris Folsom
 Telecopy Number: (404) 658-4906

		
	To the Issuing Bank:	  	 SunTrust Bank
 25 Park
Place, N.E./Mail Code 3706
 Atlanta, Georgia 30303
 Attention: Sharon Anderson
 Telecopy Number: (404) 588-8129

		
	To the Swingline Lender:	  	 SunTrust Bank
 Agency
Services
 303 Peachtree Street, N.E./25th Floor

		  	 Atlanta, Georgia 30308
 Attention: Doris Folsom
 Telecopy Number: (404) 658-4906

		
	To any other Lender :	  	the Applicable Lending Office for such Lender

  

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 Any party hereto may change its address or telecopy number for notices and other communications hereunder by
notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile
machine, respectively, or if mailed, upon the third Business Day after the date deposited into the mails or if delivered, upon delivery; provided, that notices delivered to the Administrative Agent, the Issuing Bank or the Swingline Lender shall not
be effective until actually received by such Person at its address specified in this Section 11.1.  
 (b) Any agreement of the Administrative Agent and the Lenders herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Company. The Administrative Agent and the Lenders shall
be entitled to rely on the authority of any Person purporting to be a Person authorized by the Company and any other Borrower to give such notice and the Administrative Agent and Lenders shall not have any liability to the Borrowers or other Person
on account of any action taken or not taken by the Administrative Agent or the Lenders in reliance upon such telephonic or facsimile notice. The joint and several obligations of the Borrowers to repay the Loans and all other Obligations hereunder
shall not be affected in any way or to any extent by any failure of the Administrative Agent and the Lenders to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent and the Lenders of a
confirmation which is at variance with the terms understood by the Administrative Agent and the Lenders to be contained in any such telephonic or facsimile notice. 
 11.2 Waiver: Amendments. 
 (a) No failure or delay by the
Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or any other Loan Document, and no course of dealing between the Borrowers and the Administrative Agent or any Lender, shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or
thereunder. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of any provision
of this Agreement or any other Loan Document or consent to any departure by the Borrowers therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or the issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of
Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default or Event of Default at the time. 
  

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 (b) No amendment or waiver of any provision of this Agreement or the other Loan
Documents, nor consent to any departure by the Borrowers therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrowers and the Required Lenders or the Borrowers and the Administrative Agent with the
consent of the Required Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, that no amendment or waiver shall: (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or unreimbursed LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, or change the method of
calculating any of the foregoing, without the written consent of each Lender affected thereby, (iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or unreimbursed LC Disbursement or interest thereon or
any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section
2.25(e) or 2.25(f), or any other provision hereof relating to pro rata sharing of payments among the Lenders, in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender affected
thereby, (v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the consent of each Lender; (vi) release any guarantor or limit the liability of any such guarantor under any guaranty agreement without the consent of each Lender,
except in connection with a transaction permitted by Section 6.3 or Section 6.7; (vii) except as provided in the Deposit Account Assignment, release Collateral securing any of the Obligations or agree to subordinate any Lien in such
Collateral to any other creditor of a Borrower or any Subsidiary without the consent of each Lender, other than Collateral that the Borrowers are entitled to sell or otherwise dispose of pursuant to Section 6.7 and other Collateral with an
aggregate value not to exceed $100,000 in any fiscal year of the Company; (viii) reduce the percentage specified in the definition of Required Lenders with respect to any Facility without the written consent of all Lenders under such Facility;
(ix) change the definition of “Borrowing Base” without the consent of each Lender, or change in any material respect any defined term set forth in the definition of “Borrowing Base;”, (x) amend, modify or waive any
condition precedent to any extension of credit under the Revolving Credit Facility set forth in this Agreement (including, without limitation, the waiver of an existing Default or Event of Default required to be waived in order for such extension of
credit to be made) without the consent of the Required Revolving Credit Facility Lenders; or (xi) consent to any assignment by any Borrower of its rights or obligations hereunder without the consent of each Lender except in connection with a
transaction permitted by Section 6.3, or; provided further, that no such agreement shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline Lender or the Issuing Bank without
the prior written consent of such Person. Each Lender shall reply within ten (10) Business Days after the Administrative Agent’s written request for approval action to be taken by it or any Lenders hereunder, or such lesser time as may be
reasonably determined by the 
  

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 Administrative Agent due to time constraints in the Loan Documents and specified in the request for
approval. In the event any Lender fails to reply to a request for approval from the Administrative Agent within fifteen (15) Business Days (or such shorter period of time as may be requested by the Administrative Agent for actions that are
reasonably required to preserve or protect the Collateral), such Lender shall be deemed to have approved any matters set forth in the request for approval. 
 11.3 Expenses: Indemnification. 
 Except with respect to Taxes, which
are addressed in Section 2.20: 
 (a) The Borrowers shall pay (i) all reasonable, out-of-pocket costs and
expenses of the Administrative Agent and SunTrust Capital Markets, Inc., including the reasonable fees, charges and disbursements of counsel for the Administrative Agent and SunTrust Capital Markets, Inc., in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and disbursements of outside counsel and the allocated cost of inside counsel) incurred by the Administrative Agent, the Issuing Bank or any Lender in
connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made or any Letters of Credit issued hereunder, including all such reasonable
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit, in each case to the extent a written invoice has been provided to the Borrowers with respect thereto. 
 (b) The Borrowers shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Bank, each
Affiliate of such Person, and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time
charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by a Borrower arising out of, in connection with, or as a result of an investigation,
litigation or proceeding arising out of (i) the execution or delivery of this Agreement any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of

  

 90 

 
such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials related to the Company’s or any of its Subsidiaries operations on or from any property
owned or operated by the Company or any of its Subsidiaries, or any Environmental Liability related in any way to the operations of the Company or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by a Borrower, and regardless of whether any Indemnitee is a party thereto, provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrowers against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the
Borrowers have obtained a final and nonappealable judgment in their favor on such claim as determined by a court of competent jurisdiction. 
 (c) To the extent that the Borrowers fail to pay any amount required to be paid to the Administrative Agent, the Issuing Bank or the Swingline Lender under clauses (a), (b) or (c) hereof,
each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be such Lender’s Aggregate Exposure Percentage (determined as of the time that the unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided, that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the
Issuing Bank or the Swingline Lender in its capacity as such. 
 (d) To the extent permitted by applicable law, the
Borrowers shall not assert, and hereby waive, any claim against any lndemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a
result of, this Agreement or any agreement or instrument contemplated hereby, the transactions contemplated therein, any Loan or any Letter of Credit or the use of proceeds thereof. 
 (e) All amounts due under this Section shall be payable promptly after written demand therefor. 
 11.4 Successors and Assigns. 
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that no Borrower may assign or transfer
any of its rights hereunder, other than in a transaction permitted by Section 6.3, without the prior written consent of each Lender (and any attempted assignment or transfer by a Borrower without such consent shall be null and void).

 (b) Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under
this Agreement and the other Loan Documents (including all or a portion of its Commitment and the Loans, the Swingline Exposure and LC Exposure at the time owing to or held by it); provided, that (i) except in the case of an

  

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assignment to a Lender or an Affiliate of a Lender, the Company and the Administrative Agent (and, in the case of an assignment of all or a portion of a Commitment or any Lender’s
obligations in respect of its LC Exposure or Swingline Exposure, the Issuing Bank and the Swingline Lender) must give their prior written consent (which consent shall not be unreasonably withheld or delayed if the assignment is to a commercial bank
or financial institution), (ii) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire amount of the assigning Lender’s Commitment hereunder or an assignment while an Event of Default has
occurred and is continuing, the amount of the Commitment of the assigning Lender subject to each such assignment (determined as of the date an assignment and acceptance agreement, in form and substance satisfactory to the Administrative Agent, with
respect to such assignment is delivered to the Administrative Agent) shall not be less than $1,000,000 (unless the Company and the Administrative Agent shall otherwise consent), (iii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this Agreement and the other Loan Documents with respect to any Commitment and the Loans related thereto, (iv) the assigning Lender and the assignee shall
execute and deliver to the Administrative Agent an assignment and acceptance agreement, in form and substance satisfactory to the Administrative Agent, together with a processing and recordation fee payable by the assigning Lender or the assignee
(as determined between such Persons) in an amount equal to $3,500, and (v) such assignee, if it is not a Lender, shall deliver to the Administrative Agent all information reasonably requested by the Administrative Agent; provided, that
any consent of the Company otherwise required hereunder shall not be required if an Event of Default has occurred and is continuing. Upon the execution and delivery of the assignment and acceptance agreement and payment by such assignee to the
assigning Lender of an amount equal to the purchase price agreed between such Persons, and the granting of the consents required herein, such assignee shall become a party to this Agreement and any other Loan Documents to which such assigning Lender
is a party and, to the extent of such interest assigned by such assignment and acceptance agreement, shall have the rights and obligations of a Lender under this Agreement, and the assigning Lender shall be released from its obligations hereunder to
a corresponding extent (and, in the case of an assignment and acceptance agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 2.18, 2.20 and 11.3 with respect to any period of time during which it was a Lender hereunder). Upon the consummation of any such assignment hereunder, the assigning Lender, the Administrative Agent and the
Borrowers shall make appropriate arrangements to have new Notes issued if so requested by either or both the assigning Lender or the assignee. Any assignment or other transfer by a Lender that does not fully comply with the terms of this clause
(b) shall be treated for purposes of this Agreement as a sale of a participation pursuant to clause (c) below. 
 (c) Any Lender may at any time, without the consent of the Borrowers, the Administrative Agent, the Issuing Bank or the Swingline Lender, sell participations to one or more banks or other financial institutions (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment, the Loans owing to it and its LC Exposure): provided, that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other

  

 92 

 
parties hereto for the performance of its obligations hereunder, and (iii) the Borrowers, the Administrative Agent, the Swingline Lender, the Issuing Bank and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Loan Documents. Any agreement between such Lender and the Participant with respect to such
participation shall provide that such Lender shall retain the sole right and responsibility to enforce this Agreement and the other Loan Documents and the right to approve any amendment, modification or waiver of this Agreement and the other Loan
Documents; provided, that such participation agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver of this Agreement described in the first proviso of
Section 11.2(b) that affects the Participant. Each Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.18 and 2.20 to the same extent as if it were a Lender hereunder and had acquired its interest by assignment
pursuant to paragraph (b); provided, that no Participant shall be entitled to receive any greater payment under Sections 2.18 and 2.20 than the applicable Lender would have been entitled to receive with respect to the participation sold to
such Participant unless the sale of such participation is made with the Company’s prior written consent. To the extent permitted by law, the Borrowers agree that each Participant shall be entitled to the benefits of Section 2.20 as though
it were a Lender, provided, that such Participant agrees to share with the Lenders the proceeds thereof in accordance with Section 2.20 as fully as if it were a Lender hereunder. A Participant shall not be entitled to the benefits of
Section 2.20 unless such Participant agrees, for the benefit of the Borrowers, to comply with Sections 2.20(e) and 2.20 as though it were a Lender hereunder. 
 (d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement and its Notes (if any) to secure its obligations to a Federal Reserve
Bank without complying with this Section; provided, that no such pledge or assignment shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (e) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle organized or otherwise formed under the laws of the United States or any State thereof (an “SPV”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent
and the Borrowers, the option to provide to the Borrowers all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrowers pursuant to this Agreement; provided, that (i) nothing herein shall
constitute a commitment by any SPV to make any Loan (ii) if an SPV elects not to exercise such option or otherwise fails to provide all or any part of any Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof, and (iii) the Granting Lender shall not be released from any of its obligations hereunder and the Borrowers shall be entitled to treat such Granting Lender as a lender for all purposes hereunder. The making of a Loan by an SPV hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as if such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPV shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of

  

 93 

 
this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it will not institute
against, or join any other person in instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State. Notwithstanding any provision to the contrary in
this Section 11.4, any SPV may (i) with notice to, but without the prior written consent of, the Borrowers and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans
to the Granting Lender or to any financial institutions (consented to by the Company and the Administrative Agent) providing liquidity and/or credit support to or for the account of such SPV to support the funding or maintenance of Loans and
(ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPV. As this clause
(e) applies to any particular SPV, this Section may not be amended without the written consent of such SPV. 
 11.5
Governing Law: Jurisdiction: Consent to Service of Process. 
 (a) This Agreement and the other Loan Documents
shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of New York. EACH LOAN DOCUMENT (OTHER THAN AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 
 (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of
the United States District Court of the Southern District of New York, and of any court of the State of New York sitting in New York county and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in such New York state court or, to the extent permitted by applicable law, such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or
any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrowers or their respective properties in the courts of any jurisdiction. 
 (c) Each Borrower irrevocably and unconditionally waives any objection which it may now or hereafter have to the laying of venue of
any such suit, action or proceeding described in paragraph (b) of this Section and brought in any court referred to in paragraph (b) of this Section. Each of the parties hereto irrevocably waives, to the fullest extent permitted by
applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  

 94 

 (d) Each party to this Agreement irrevocably consents to the service of process in
the manner provided for notices in Section 11.1. Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law. 
 (e) The representations, warranties, covenants and agreements contained in this Agreement shall be deemed to have been given and
undertaken by the Borrowers jointly and severally. 
 11.6 WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. 
 11.7 Right of Setoff. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, each Lender and the Issuing Bank shall have the right, subject to Section 2.25(f), at any time or from time to time upon the occurrence and during the continuance of an Event of
Default, without prior notice to the Borrowers, any such notice being expressly waived by the Borrowers to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final)
of the Borrowers at any time held or other obligations at any time owing by such Lender or the Issuing Bank to or for the credit or the account of the Borrowers against any and all Obligations held by such Lender or the Issuing Bank, as the case may
be, irrespective of whether such Lender or the Issuing Bank shall have made demand hereunder and although such Obligations may be unmatured. Each Lender and the Issuing Bank agree promptly to notify the Administrative Agent and the Borrowers after
any such set-off and any application made by such Lender and the Issuing Bank, as the case may be; provided, that the failure to give such notice shall not affect the validity of such set-off and application. 
 11.8 Counterparts; Integration. This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Agreement, the other Loan Documents, and any separate letter agreement(s)

  

 95 

 
relating to any fees payable to the Administrative Agent constitute the entire agreement among the parties hereto and thereto regarding the subject matters hereof and thereof and supersede all
prior agreements and understandings, oral or written, regarding such subject matters. 
 11.9 Survival. All
covenants, agreements, representations and warranties made by the Borrowers herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that
the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.18, 2.19, 2.20, 11.3, 11.11 and Section 9 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof. All representations and warranties made herein, in the certificates, reports, notices, and other documents delivered pursuant to
this Agreement shall survive the execution and delivery of this Agreement and the other Loan Documents, and the making of the Loans and the issuance of the Letters of Credit. 
 11.10 Severability. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in
any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the
illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 11.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and each Lender agrees to take normal and reasonable
precautions to maintain the confidentiality of any information designated in writing as confidential and provided to it by the Borrowers or any Subsidiary, except that such information may be disclosed (i) to any Affiliate of the Administrative
Agent, the Issuing Bank or any such Lender, and their respective accountants, legal counsel and other professional advisors (provided that all such Persons shall have agreed in writing to keep such information confidential in accordance with the
terms of this Section), (ii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or governmental authority having jurisdiction over
the disclosing Administrative Agent, Issuing Bank or Lender, (iv) to the extent that such information becomes publicly available other than as a result of a breach of this Section, or which becomes available to the Administrative Agent, the
Issuing Bank, any Lender or any Affiliate, or their accountants, legal counsel or other professional advisors, of any of the foregoing on a nonconfidential basis from a source other than the Borrowers, (v) in connection with the exercise of any
remedy hereunder or any suit, action or proceeding relating to this

  

 96 

 
Agreement or the enforcement of rights hereunder, (vi) subject to provisions substantially similar to this Section 11.11, to any actual or prospective assignee or Participant, or (vii) with
the prior written consent of the Company. Any Person required to maintain the confidentiality of any information as provided for in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such information as such Person would accord its own confidential information. 
 11.12 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on
such Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate of interest (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan
in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that
would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but nor
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to the date of repayment, shall have been received by such Lender. 
 11.13 Captions. The captions of the various sections and paragraphs of this Agreement have been inserted only for the purposes
of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any of the provisions of this Agreement. 
 11.14 Use of Defined Terms. All terms defined in this Agreement shall have the defined meanings when used in certificates,
reports or other documents made or delivered pursuant to this Agreement, unless the context shall otherwise require. 
 11.15
Accounting Terms. Unless otherwise defined or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder
shall be prepared, in accordance with GAAP as in effect from time to time, applied on a basis consistent (except for such changes approved by the Company’s independent public accountants) with the most recent audited consolidated financial
statements of the Company delivered pursuant to Section 5.8(c); provided, that if the Company notifies the Administrative Agent that the Company wishes to amend any covenant in Section 7 to eliminate the effect of any change in GAAP
on the operation of such covenant (or if the Administrative Agent notifies the Company that the Required Lenders wish to amend Section 7 for such purpose), then the Company’s compliance with such covenant shall be determined on the basis
of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Company the Administrative Agent and the Required Lenders.

  

 97 

 11.16 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrowers in accordance with the Patriot Act, and each Borrower hereby agrees to provide the Administrative Agent and each Lender with all information necessary in order for the Administrative
Agent and each Lender to comply with the Patriot Act. 
 11.17 Right of First Refusal. Each Borrower hereby agrees
that if at any time any Borrower or any Subsidiary or Affiliate of any Borrower (a “Borrower Entity”) receives from a third party an offer, term sheet or commitment, or any Borrower Entity makes a proposal substantially acceptable to or
accepted by any Person (all of the foregoing being referred to as an “Offer”), which Offer provides for more than $250,000 of permanent financing, long term financing, short term financing, cash flow financing, working capital financing,
accounts receivable financing, real estate financing, inventory or equipment financing, financing secured in whole or in part by assets (tangible or intangible) or personal property of any Borrower Entity, or sale/leaseback financing, the applicable
Borrower Entity shall first forward the Offer to the Administrative Agent, which shall have fifteen (15) days after receipt thereof (the “Option Period”) to agree to provide similar financing in the place of such Person upon the terms
and conditions set forth in the Offer and to notify the applicable Borrower Entity in writing of the Administrative Agent’s acceptance of the Offer (the “Acceptance Notice”). If the Borrower Entity has not received an Acceptance
Notice within the Option Period, the Borrower Entity shall be free to consummate the transaction described in the Offer with the third party providing the Offer (the “Transaction”); provided, however, that the foregoing, and Administrative
Agent’s failure to respond to issue an Acceptance Notice, shall not be construed as a waiver of any of the terms, covenants or conditions of the Loan Documents. In the event that the Transaction is not consummated under similar terms with such
Person during the ninety (90) day period following the expiration of the Option Period, or any material term is changed, the applicable Borrower Entity shall not be permitted to consummate the Transaction without again complying with this
Section. 
 [SIGNATURES ON FOLLOWING PAGE] 
  

 98 

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

			
	BORROWERS:
	
	COMPANY:
	
	 SFA, INC., a Maryland corporation
 Organizational Identification Number: D00285346

		
	By:	 	 /s/    Jerry D. Robinson

	Name:	 	Jerry D. Robinson
	Title:	 	President & CEO
	
	TAC:
	
	THE ANALYSIS CORP., a Delaware corporation Organizational Identification Number: 2220948
		
	By:	 	 /s/    Jerry D. Robinson

	Name:	 	Jerry D. Robinson
	Title:	 	Secretary

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

			
	ADMINISTRATIVE AGENT:
	
	SUNTRUST BANK, a Georgia banking corporation
		
	By:	 	 /s/ Lindsey Rheaume

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

			
	LENDERS:
	
	 SUNTRUST BANK, a Georgia banking
 corporation

		
	By:	 	 /s/    Lindsey Rheaume

		 	Lindsey Rheaume
		 	Senior Vice President

  

			
	Revolving Commitment:	  	$16,500,000
		
	Term Loan Commitment:	  	$18,000,000

 Applicable Lending Office: 
 SunTrust Bank 
 8330 Boone Blvd. 
 Suite 700 
 Vienna VA 22182-2624 
 Attention: Lindsey Rheaume, Senior Vice President 
 Telecopy Number: 703-442-1613 

 EXHIBIT A 
 BORROWING BASE CERTIFICATE 

 CONSOLIDATED BORROWING BASE CERTIFICATE 
 OF REPORT DATED DECEMBER 31, 2006 
 COMPANY NAME: SFA, INC. 
 SFA, INC./The Analysis Corp. 
  

					
	 A:
	 	 Total Billed Accounts Receivable
	  	
		 	 (Line B of A/R Activity Reports)
	  	15,066,256.45
		 		  	 
			
	 B:
	 	 Total Eligible Accounts Receivable
	  	
		 	 (Line D of Borrowing Availability Reports)
	  	16,902,277.16
			
	 C:
	 	 TOTAL BORROWING BASE
	  	12,821,273.03
		 		  	 
		 	 (Line G of Borrowing Availability Reports)
	  	
		 	 Not to Exceed Line Amount of $16,500,000
	  	12,821,273.03
		 		  	 
			
	 D:
	 	 Less
	  	
		 	 Loan Balance as of Report Date
	  	0.00
			
	 E:
	 	 Letters of Credit as of Report Date
	  	
		 	 (Not to exceed $500,000)
	  	0.00
			
	 F:
	 	 Borrowing Availability as of Report Date
	  	
		 	 (G Minus D&E)
	  	12,821,273.03
		 		  	 

 The undersigned certifies that the information reported in this report is true and correct.

  

			
	SFA, Inc.
		
	By:	 	 

	
	Title: Vice President/Controller
	08-Feb-07

 SFA, INC 
 ACCOUNTS RECEIVABLE ACTIVITY AS OF DECEMBER 31, 2006 
  

					
	A:	 	Total Billed Accounts Receivable
as of Last Report Dated 11/30/2006	  	10,048,379.71
			
		 	Additions:	  	
		 	 1. New Billed Accounts Receivable
     Since Last Report
	  	7,651,914.25
			
		 	2. Adjustments	  	0.00
			
		 	Deductions;	  	
		 	1. Receipts Since Last Report	  	8,162,267.70
			
		 	2. Adjustments	  	0.00
			
	B:	 	Total Billed Accounts Receivable	  	9,538,026.26

 SFA, INC./The Analysis Corp. 
 ACCOUNTS RECEIVABLE ACTIVITY AS OF DECEMBER 31, 2006 
  

					
	 A:
	 	 Total Billed Accounts Receivable
	  	
		 	as of Last Report Dated 11/30/2006	  	6,851,462.73
			
		 	 Additions:
	  	
		 	 1. New Billed Accounts Receivable
     Since Last Report
	  	2,597,435.77
			
		 	 2. Adjustments
	  	0.00
			
		 	 Deductions:
	  	
		 	 1. Receipts Since Last Report
	  	3,920,668.31
			
		 	 2. Adjustment’s
	  	0.00
			
	 B:
	 	 Total Billed Accounts Receivable
	  	5,528,230.19

 SFA, INC. 
 BORROWING AVAILABILITY COMPUTATION AS OF DECEMBER 31, 2006 
  

										
	 	  	GOVERNMENT	 	 	COMMERCIAL	 	 	TOTAL	 
	 A.
	  			 			 		
	 Total Billed Accounts Receivable
	  	9,512,726.16	  	 	25,300.10	  	 	9,538,026.26	  
		  	 	 	 	 	 	 	 	 
	 Total Unbilled Accounts Receivable
	  	9,608,926.71	  	 	0.00	  	 	9,608,926.71	  
		  	 	 	 	 	 	 	 	 
				
	 B. Less Ineligible Receivable:
	  			 			 		
				
	 1. Accounts Receivable Aged Over 90 Days
	  	101,224.81	  	 	0.00	  	 	101,224.81	  
		  	 	 	 	 	 	 	 	 
				
	 2. “At Risk” Work: (holdbacks)
	  	393,828.13	  	 	0.00	  	 	393,828.13	  
		  	 	 	 	 	 	 	 	 
				
	 3. Foreign Receivables Not Backed by Either FCIA Insurance or Acceptable Letters of Credit
	  	0.00	  	 	0.00	  	 	0.00	  
		  	 	 	 	 	 	 	 	 
				
	 4. Retainages
	  	21,609.87	  	 	0.00	  	 	21,609.87	  
		  	 	 	 	 	 	 	 	 
				
	 5. Rate Variance
	  	1,014,719.48	  	 	0.00	  	 	1,014,719.48	  
		  	 	 	 	 	 	 	 	 
				
	 6. Other (Reserves/Intercompany A/R)
	  	(183,900.23	) 	 	0.00	  	 	(183,900.23	) 
		  	 	 	 	 	 	 	 	 
				
	 C. Total Ineligible Receivables:
	  	1,347,482.06	  	 	0.00	  	 	1,347,482.06	  
		  	 	 	 	 	 	 	 	 
				
	 D.
	  			 			 		
	 Eligible Receivables (Line A Minus C1)
	  	9,411,501.35	  	 	25,300.10	  	 	9,436,801.45	  
		  	 	 	 	 	 	 	 	 
	 Eligible Unbilled Receivables (Line A Minus C2-6)
	  	8,362,669.46	  	 	0.00	  	 	8,362,669.46	  
		  	 	 	 	 	 	 	 	 
				
	 E. Advance Rate:
	  	55.00	% 	 	55.00	% 	 		
		  	 	 	 	 	 	 		
				
	 F. Contribution to Borrowing base
	  	9,775,793.95	  	 	13,915.06	  	 	9,789,709.00	  
		  	 	 	 	 	 	 	 	 
				
	 G. Total Borrowing Base:
	  	9,789,709.00	  	 			 		
		  	 	 	 			 		

 SFA, INC./The Analysis Corp. 
 BORROWING AVAILABILITY COMPUTATION AS OF DECEMBER 31, 2006 
  

									
	 	  	GOVERNMENT	 	 	COMMERCIAL	 	 	TOTAL
	 A.
	  			 			 	
	 Total Billed Accounts Receivable
	  	5,522,677.19	  	 	5,553.00	  	 	5,528,230.19
		  	 	 	 	 	 	 	 
	 Total Unbilled Accounts Receivable
	  	202,247.57	  	 	0.00	  	 	202,247.57
		  	 	 	 	 	 	 	 
				
	 B. Less Ineligible Receivable:
	  			 			 	
				
	 1. Accounts Receivable Aged Over 90 Days
	  	196,627.60	  	 	2,503.00	  	 	199,130.60
		  	 	 	 	 	 	 	 
				
	 2. “At Risk” Work:
	  	19,208.57	  	 	0.00	  	 	19,208.57
		  	 	 	 	 	 	 	 
				
	 3. Foreign Receivables Not Backed by Either FCIA Insurance or Acceptable Letters of Credit
	  	0.00	  	 	0.00	  	 	0.00
		  	 	 	 	 	 	 	 
				
	 4. Retainages
	  	0.00	  	 	0,00	  	 	0.00
		  	 	 	 	 	 	 	 
				
	 5. Rate Variance
	  	204.00	  	 	0.00	  	 	204.00
		  	 	 	 	 	 	 	 
				
	 6. Other (Reserves)
	  	0.00	  	 	0.00	  	 	0.00
		  	 	 	 	 	 	 	 
				
	 C. Total Ineligible Receivables:
	  	216,040.17	  	 	2,503.00	  	 	218,543.17
		  	 	 	 	 	 	 	 
				
	 D.
	  			 			 	
	 Eligible Receivables (Line A Minus C1)
	  	5,326,049.59	  	 	3,050.00	  	 	5,329,099.59
		  	 	 	 	 	 	 	 
	 Eligible Unbilled Receivables (Line A Minus C2-6)**
	  	182,835.00	  	 	0.00	  	 	182,835.00
		  	 	 	 	 	 	 	 
	 ** (Assume TSC and DIA subcontractor and consultants are billable in subsequent month)

				
	 E. Advance Rate:
	  	55.00	% 	 	55.00	% 	 	
		  	 	 	 	 	 	 	
				
	 F. Contribution to Borrowing base
	  	3,029,886.52	  	 	1,677.50	  	 	3,031,564.02
		  	 	 	 	 	 	 	 
				
	 G. Total Borrowing Base:
	  	3,031,564.02	  	 			 	
		  	 	 	 			 	

 EXHIBIT B 
 COVENANT COMPLIANCE CERTIFICATE 

 GLOBAL STRATEGIES GROUP (N.A.) 
 COVENANT COMPLIANCE CERTIFICATION 
 QUARTER ENDED
JUNE 30, 2009 
 In connection with the terms of the Loan and Security Agreement, dated as of February 9, 2007 (as amended, modified or
supplemented from time to time, the “Agreement”), between SFA, Inc., a Maryland corporation (the “Company”), the Analysis Corporation, a Delaware corporation and a wholly owned Subsidiary of the Company, SunTrust Bank, a Georgia
banking corporation (the “Administrative Agent”); SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc., as Lead Arranger and Book Manager, and each Lender and each other Subsidiary that is, or may become, a party
thereto, the undersigned certifies that the following information is true and correct as of the date of this Covenant Compliance Certificate: 
  

												
	Net Worth (Section 7.1):	  	  	  	  	 	 	  	 	 	 
					
	 Common Stock
	  		  			 	 	32,938	  	 	
	 Additional paid-in capital
	  		  			 	 	57,262,836	  	 	
	 Accumulated other comprehensive gain/(loss)
	  		  			 	 	-  	  	 	
	 Retained earnings
	  		  			 	 	(141,883	) 	 	
	 Current Earnings
	  		  			 	 	3,124,319	  	 	
		  		  			 	 	 	 	 	
	 Total Net Worth
	  		  			 	 	60,278,210	  	 	
		  		  			 	 	 	 	 	
					
	Actual:	  		  			 	 	60,278,210	  	 	In compliance
		  		  			 	 	 	 	 	
					
	Covenant:	  		  			 	$	45,874,760	  	 	
		  		  			 	 	 	 	 	
					
	Fixed Charges Coverage Ratio (Section 7.3)	  	  	  	  	 	 	  	 	 	 
					
	 Cash Available for fixed Charges:
	  		  			 				 	
	 EBITDA (Trailing 4 Quarters)
	  		  			 	 	21,325,036	  	 	
	 Less:
	  		  			 				 	
	 Lender Approved Restricted Payments
	  		  	-  	  	 				 	
	 Cash Income tax payments (Trailing)
	  		  	(4,358,247	) 	 				 	
	 Non-financed Capital Expenditures (Trailing 4 Quarters)
	  		  	(910,585	) 	 	 	(5,268,832	) 	 	
		  	 	 	 	
					
		  		  			 	 	16,056,204	  	 	
		  		  			 	 	 	 	 	
	Fixed Charges:	  		  			 				 	
	 Interest Expense
	  		  			 	 	1,103,671	  	 	
	 Current maturities of LT debt - Notes
	  		  			 	 	3,600,000	  	 	
	 (Payments amortized on current schedule)
	  		  			 				 	
		  		  			 	 	4,703,671	  	 	
		  		  			 	 	 	 	 	
					
		  	Actual:	  			 	 	3.41	  	 	In compliance
		  		  			 	 	 	 	 	
					
		  	Covenant:	  			 	 	1.20	  	 	Min
		  		  			 	 	 	 	 	
					
	Maximum Funded Debt to EBITDA Ratio (Section 7.2)	  	  	  	  	 	 	  	 	 	 
					
	Funded Debt Obligations:	  		  			 				 	
	 Revolver Debt
	  		  			 	 	13,597,598	  	 	
	 Term Debt (Includes $3,000,000 Overline Loan)
	  		  			 	 	13,800,000	  	 	
	 Ltr of Credit Exposure
	  		  			 	 	-  	  	 	
	 Other Debt
	  		  			 	 	-  	  	 	
	 Capital Leases
	  		  			 	 	-  	  	 	
		  		  			 	 	 	 	 	
	 Total Funded Debt
	  		  			 	 	27,397,598	  	 	
		  		  			 	 	 	 	 	
					
	 Trailing 4 Quarter Adjusted EBITDA
	  		  			 	 	21,325,036	  	 	
					
		  	Actual:	  			 	 	1.285	  	 	In compliance
		  		  			 	 	 	 	 	
					
		  	Covenant:	  			 	 	3.25	  	 	Max
		  		  			 	 	 	 	 	

 Capitalized terms shall have same meaning as those assigned in the Loan &
Security Agreement. 
  

			
		 	GLOBAL STRATEGIES GROUP (N.A.)
		
	By:	 	 /s/ Kenn Kissner

		
	Title:	 	 Controller

		
	Date:	 	  

 EXHIBIT C 
 INTELLECTUAL PROPERTY ASSIGNMENT 

 EXHIBIT C 
 COLLATERAL ASSIGNMENT, PATENT MORTGAGE 
 AND SECURITY AGREEMENT

 This Collateral Assignment, Patent Mortgage and Security Agreement (the “Assignment”) dated as of the
     day of                     , 200[ ], from
                    , a                     
(“Assignor”), in favor of SUNTRUST BANK, a Georgia banking corporation (“Assignee”), as administrative agent for the Lenders (as such term is defined in the Loan Agreement). 
 RECITALS 
 The Lenders and Assignee (as the Administrative Agent for the Lenders) have entered into a Loan and Security Agreement, dated as of February 9, 2007 (as amended, modified or supplemented from time to time, the “Loan
Agreement,” the capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) with Assignor and each other Subsidiary that enters into an Assumption Agreement, thereby becoming a Borrower under the
Loan Agreement in accordance with the terms and conditions thereof, and, by its execution and delivery hereof, an Assignor. It is a condition precedent to the making of the Loans and the issuance of Letters of Credit by Assignee, the Lenders or the
Issuing Bank, as applicable, under the Loan Agreement that Assignor shall have assigned certain property to Assignee (for the ratable benefit of the Lenders and the Issuing Bank) in accordance with this Assignment. 
 NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

 1. Assignment, Patent Mortgage and Grant of Security Interest. As collateral security for the prompt and complete
payment and performance of the Obligations, Assignor hereby assigns, transfers, conveys and grants a security interest and mortgage to Assignee, for the ratable benefit of the Lenders and the Issuing Bank, as security, but not as an ownership
interest, in and to its entire right, title and interest in, to and under the following (all of which shall collectively be called the “Collateral”): 
 (a) All present and future United States copyright registrations owned by Assignor, including, without limitation, the registered copyrights listed in Exhibit A-1 to this Assignment, as amended and
supplemented from time to time (and including all of the exclusive rights afforded a copyright registrant in the United States under 17 U.S.C. §106 and any exclusive rights owned by Assignor which may in the future arise by act of Congress or
otherwise) (collectively, the “Registered Copyrights”), and any and all royalties, payments, and other amounts payable to Assignor in connection with the Registered Copyrights, together with all renewals and extensions of the
Registered Copyrights, Assignor’s right to recover for all past, present, and future infringements of the Registered Copyrights, and all Assignor’s computer programs, computer databases, computer program flow diagrams, source codes, object
codes and all tangible property embodying or incorporating the Registered Copyrights, and all other rights of every kind whatsoever owned by Assignor accruing thereunder or pertaining thereto; 

 (b) All present and future accounts, accounts receivable and other rights to payment arising
from, in connection with or relating to the Copyrights; 
 (c) All registered patents and like protections owned by Assignor
including, without limitation, improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, including without limitation the patents set forth on Exhibit B attached hereto as amended and
supplemented from time to time (collectively, the “Patents”), and any and all royalties, payments, and other amounts payable to Assignor in connection with the Patents, together with all renewals and extensions of the Patents, the
right of Assignor to recover for all past, present, and future infringements of the Patents, and all computer programs, computer databases, computer program flow diagrams, source codes, object codes and all tangible property of Assignor embodying or
incorporating the Patents, and all other rights of every kind whatsoever accruing thereunder or pertaining thereto; 
 (d) Any
federally registered trademark and servicemark rights owned by Assignor and the entire goodwill of the business of Assignor connected with and symbolized by such trademarks, including without limitation those set forth on Exhibit C attached
hereto, as amended, and supplemented from time to time (collectively, the “Trademarks”), and any and all royalties, payments, and other amounts payable to Assignor in connection with the Trademarks, together with all renewals and
extensions of the Trademarks, and the right of Assignor to recover for all past, present, and future infringements of the Trademarks; 
 (e) Any and all claims of Assignor for damages by way of past, present, and future infringements of any of the Copyrights, Patents and Trademarks included above, with the right, but not the obligation, to sue for and collect such damages
for said use or infringement of the intellectual property rights of Assignor identified above; 
 (f) Assignor’s interest
in all licenses or other rights granted by Assignor to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties owing to Assignor arising from such use to the extent permitted by such license or rights; 
 (g) All amendments, extensions, renewals and extensions of any of the Copyrights, Trademarks or Patents; and 
 (h) All proceeds and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty
payable in respect of any of the foregoing. 
 THE INTEREST IN THE COLLATERAL BEING ASSIGNED HEREUNDER SHALL NOT BE CONSTRUED AS A CURRENT
ASSIGNMENT, BUT AS A CONTINGENT ASSIGNMENT TO SECURE ASSIGNOR’S OBLIGATIONS TO ASSIGNEE, THE LENDERS AND THE ISSUING BANK. 
 This Assignment secures the payment of all of the Obligations. Without limiting the generality of the foregoing, this Assignment secures the payment of all amounts that constitute part of the Obligations and would be owed by Assignor to
Assignee, the Lenders or the Issuing Bank, as applicable, but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving Assignor. 
  

 2 

 2. Authorization and Request. Assignor authorizes and requests that the Register of
Copyrights and the Commissioner of Patents and Trademarks record this conditional assignment. 
 3. Covenants and
Warranties. Assignor represents, warrants, covenants and agrees as follows: 
 (a) As of the date hereof, the Assignor does
not own or hold any registered copyrights, patents or trademarks, other than as listed on Exhibits A, B and C attached hereto and other than such Intellectual Property that has not been used by the Borrowers in the past 12 months or from
which no revenue in excess of $100,000 has been derived in the past 12 months. 
 (b) This Assignment creates, and in the case
of after acquired Collateral, this Assignment will create at the time Assignor first has rights in such after acquired Collateral, in favor of Assignee, for the ratable benefit of the Lenders and the Issuing Bank, a valid and perfected first
priority security interest in the Collateral in the United States securing the payment and performance of the Obligations upon making the filings referred to in Section 5(a) below. 
 4. Inspection Rights. Assignor hereby grants to Assignee rights of inspection with respect to the Collateral, as more particularly
set forth in Section 5.7 of the Loan Agreement. 
 5. Further Assurances; Attorney in Fact. Assignor represents,
warrants, covenants and agrees, as follows: 
 (a) Assignor will make, execute, acknowledge and deliver, and file and record in
the proper filing and recording places in the United States, all such instruments, including, appropriate financing and continuation statements and collateral agreements and filings with the United States Patent and Trademark Office and the Register
of Copyrights, and take all such action as may reasonably be deemed necessary or advisable, or as requested by Assignee, to perfect Assignee’s security interest (held for the ratable benefit of the Lenders and the Issuing Bank) in all
Copyrights, Patents and Trademarks and otherwise to carry out the intent and purposes of this Assignment, or for assuring and confirming to Assignee (for the ratable benefit of the Lenders and the Issuing Bank) the grant or perfection of a security
interest in all Collateral. 
 (b) Upon an Event of Default, Assignor hereby irrevocably appoints Assignee as its
attorney-in-fact, with full authority in the place and stead of Assignor and in the name of Assignor, Assignee or otherwise, from time to time in Assignee’s discretion, upon Assignor’s failure or inability to do so, to take any action and
to execute any instrument which Assignee may deem necessary or advisable to accomplish the purposes of this Assignment, including: 
 (i) To modify, in its sole discretion, this Assignment without first obtaining Assignor’s approval of or signature to such modification by amending Exhibit A, Exhibit B and Exhibit C, thereof, as appropriate, to include reference to
any right, title or interest in any Copyrights, Patents or Trademarks acquired by Assignor after the execution hereof or to delete any reference to any right, title or interest in any Copyrights, Patents or Trademarks in which Assignor no longer has
or claims any right, title or interest; and 
  

 3 

 (ii) To file, in its sole discretion, one or more financing or continuation statements and
amendments thereto, relative to any of the Collateral without the signature of Assignor where permitted by law. 
 6.
Remedies. Upon the occurrence and continuance of an Event of Default under the Loan Agreement, Assignee shall have the right to exercise, for the ratable benefit of the Lenders and the Issuing Bank, all the remedies of a secured party under
the UCC, including, without limitation, the right to: 
 (a) Require Assignor to assemble any tangible property in which the
Collateral is embodied and in which Assignor has a security interest, held for the ratable benefit of the Lenders and the Issuing Bank, and to make it available to Assignee at a place designated by Assignee; 
 (b) Exercise any and all rights as beneficial and legal owner of the Collateral (for the ratable benefit of the Lenders and the Issuing
Bank), including, without limitation, any and all consensual rights and powers with respect to the Collateral, and 
 (c)
Without limiting the foregoing paragraphs (a) or (b), the Assignee shall have the right, for the ratable benefit of the Lenders and the Issuing Bank, to sell or assign or grant a license to use, or cause to be sold or assigned or grant a
license to use any or all of the Collateral or any part thereof, in each case, free of all rights and claims of Assignor therein and thereto, except to the extent such actions would violate restrictions against assignments contained in any
Collateral in which Assignor’s rights arise by contract or license. In that connection, Assignee shall have the right to cause any or all of the Collateral to be transferred of record into the name of Assignee or its nominee (for the ratable
benefit of the Lenders and the Issuing Bank) and the right to impose (i) such limitations and restrictions on the sale or assignment of the Collateral as Assignee may deem to be necessary or appropriate to comply with any law, rule or
regulation having applicability to such sale or assignment and (ii) requirements for any necessary governmental approvals. To the extent not inconsistent with any license or contract under which Assignor’s rights arise, Assignee (for the
ratable benefit of the Lenders and the Issuing Bank) shall have a nonexclusive, royalty-free license to use the Copyrights, Patents and Trademarks to the extent reasonably necessary to permit Assignee to exercise its rights and remedies (for the
ratable benefit of the Lenders and the Issuing Bank) upon the occurrence of an Event of Default. Assignor will pay any expenses (including reasonable attorney’s fees) incurred by Assignee in connection with the exercise of any of
Assignee’s rights hereunder, including without limitation any expense incurred in disposing of the Collateral. All of Assignee’s rights and remedies with respect to the Collateral shall be cumulative. 
 7. Release. At such time as Assignors shall completely satisfy all of the Obligations, Assignee shall execute and deliver to
Assignors all assignments and other instruments as may be reasonably necessary or proper to terminate Assignee’s security interest (held for the ratable benefit of the Lenders and the Issuing Bank) and any conditional assignment in the
Collateral, subject to any disposition of the Collateral which may have been made by Assignee (for the ratable benefit of the Lenders and the Issuing Bank) pursuant to this Assignment. For the purpose of this Assignment, the Obligations shall be
deemed to continue if any Assignor enters into any bankruptcy or similar proceeding at a time when any amount paid to Assignee could be ordered to be repaid as a preference or pursuant to a similar theory, and shall continue until it is finally
determined that no such repayment can be ordered. 
  

 4 

 8. No Waiver. No course of dealing between any Assignor and Assignee, nor any failure
to exercise nor any delay in exercising, on the part of Assignee, any right, power, or privilege under this Assignment or under the Loan Agreement or any other agreement, shall operate as a waiver. No single or partial exercise of any right, power,
or privilege under this Assignment or under the Loan Agreement or any other agreement by Assignee shall preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege by Assignee.

 9. Rights Are Cumulative. All of Assignee’s rights and remedies with respect to the Collateral whether
established by this Assignment, the Loan Agreement, or any other documents or agreements, or by law shall be cumulative and may be exercised concurrently or in any order. 
 10. Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof. 
 11. Attorneys’ Fees. If any action relating to this Assignment is brought by either party hereto against the other party, the
prevailing party shall be entitled to recover reasonable attorneys fees, costs and disbursements. 
 12. Amendments. This
Assignment may be amended only by a written instrument signed by both parties hereto. To the extent that any provision of this Assignment conflicts with any provision of the Loan Agreement, the provision giving Assignee greater rights or remedies
shall govern, it being understood that the purpose of this Assignment is to add to, and not detract from, the rights granted to Assignee under the Loan Agreement. This Assignment, the Loan Agreement, and the documents relating thereto comprise the
entire agreement of the parties with respect to the matters addressed in this Assignment. 
 13. Severability. The
provisions of this Assignment are severable. If any provision of this Assignment is held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such provision or part thereof in any other jurisdiction, or any other provision of this Assignment in any jurisdiction. 
 14. Counterparts. This Assignment may be executed in two or more counterparts, each of which shall be deemed an original but all of
which together shall constitute the same instrument. 
 15. Governing Law and Jurisdiction. This Assignment shall be
governed by the laws of the State of New York, without regard for choice of law provisions. Assignor and Assignee consent to the nonexclusive jurisdiction of any state or federal court located in New York. 
 16. Confidentiality. In handling any confidential information, Assignee (and its agents) hereby expressly agree to maintain the
confidentiality of such information in accordance with the provisions of Section 11.11 of the Loan Agreement. 
  

 5 

 17. WAIVER OF RIGHT TO JURY TRIAL. ASSIGNEE AND ASSIGNOR EACH HEREBY WAIVE
THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO: (a) THIS ASSIGNMENT; OR (b) ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN ASSIGNEE AND ASSIGNOR; OR (c) ANY CONDUCT,
ACTS OR OMISSIONS OF ASSIGNEE OR ASSIGNOR OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH ASSIGNEE OR ASSIGNOR; IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE. 
 [SIGNATURES ON FOLLOWING PAGE] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Assignment on the day and year
first above written. 
  

							
		 		 	ASSIGNOR:
			
		 		 	                                       
   ,
		 		 	a                      corporation
				
	Address of Assignor:	 		 		 	
				
		 		 	By:	 	  

		 		 	Name:	 	  

		 		 	Title:	 	  

			
		 		 	ASSIGNEE:
			
	Address of Assignee:	 		 	SUNTRUST BANK, a Georgia banking corporation
				
	8330 Boone Boulevard	 		 	By:	 	  

	Suite 700	 		 	Name:	 	  

	Vienna, Virginia 22182	 		 	Title:	 	  

  

 7 

					
		 	                                       
  OF
                                        
        )	 	
			
		 	COUNTY OF
                                         
                              )	 	
			
		 	On                                       
  ,         , before me,                        
                                         
                                         
                       	 	
		
	                                       
                                         
                                         
                               , Notary Public, personally appeared	 	
		
	                                       
                                         
                                         
                                         
                                         
         .	 	

 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed, the instrument. 
 Witness my hand and official seal. 
  

	
	  
	Notary Public

 (Seal) 
  

					
		 	                                       
  OF
                                        
        )	 	
			
		 	COUNTY OF
                                         
                              )	 	
			
		 	On                                       
  ,         , before me,                        
                                         
                                         
                       	 	
		
	                                       
                                         
                                         
                               , Notary Public, personally appeared	 	
		
	                                       
                                         
                                         
                                         
                                         
         .	 	

 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument. 
 Witness my hand and official seal. 
  

	
	  
	Notary Public

 (Seal) 
  

 8 

 EXHIBIT “A-1” 
 REGISTERED COPYRIGHTS 
  

					
	 REG. NO.
	  	 REG. DATE
	  	 COPYRIGHT

 EXHIBIT “B” 
 PATENTS 
  

									
	 DOCKET NO.
	  	 COUNTRY
	  	 SERIAL NO.
	  	 FILING DATE
	  	 STATUS

 SCHEDULE 1 
 EXISTING LETTERS OF CREDIT 
 None. 

 SCHEDULE 3.2 
 INVENTORY AND EQUIPMENT LOCATIONS 
 1501 Farm Credit Drive, Suites 1900 and
2300 
 McLean, Virginia 22101-5000 
 West Oaks Executive Park 
 3702 Pender Drive 
 Fairfax, Virginia 22030 
 8613 Lee Highway 
 Merrifield, Virginia 22081 
 28712 Glebe Road

 Easton, Maryland. 21601 
 450 Sagner
Avenue 
 Frederick, Maryland. 21701 
 20 South Wisner Street, 
 Frederick, Maryland 21701 
 30 South Wisner Street 
 Van Shop #1 
 Frederick, Maryland 21701 
 30 South Wisner Street 
 Van Shop #2 
 Frederick, Maryland 21701 

Crofton Business Centre 
 2200 Defense Highway

 Crofton, Maryland 21114 
 Lynnhaven
Corporate Center II 
 760 Lynnhaven Parkway 
 Virginia Beach, Virginia 23452 
 Corporate Square I 
 Suite 201 
 2420 Mall Drive 
 North Charleston, South Carolina 29406 

 Mission Redwood 
 2727 Camino del Rio South 
 Suite 104 
 San Diego, California 92108 
 Gateway West 
 6192 Oxon Hill Road 
 Suite 411 
 Oxon Hill, Maryland 20745 

 SCHEDULE 4.7 
 MULTIEMPLOYER PLANS 
 None. 

 SCHEDULE 4.13 
 INTELLECTUAL PROPERTY 
 Trademarks 
  

									
	Trademark	  	Registration No.
(App. No.)	 	Registr. Date
(App. Bate)	 	Record Owner	  	Status
	SFA and Design	  	2,217,374	 	01/12/1999	 	SFA, Inc.	  	Registered
	TAC THE ANALYSIS CORPORATION HELPING SAFEGUARD
AMERICA	  	(76-661,666)	 	(06/15/2006)	 	The Analysis Corporation	  	Pending
	FUZZY FINDER	  	(78-275,295)	 	(07/17/2003)	 	The Analysis Corporation	  	Inactive
	CELATRO	  	(78-266189)	 	(06/24/2003)	 	The Analysis Corporation	  	Inactive
					
	 Copyrights
  
	  		 		 		  	
	Title	  	Registration No.	 	 Registration
 Date
	 	Record Owner	  	Status
	Silver Streak outdoor power equipment replacement parts:
[catalog].	  	TX593450	 	12/08/1980	 	Frederick Manufacturing Company, Inc.	  	Registered
	Silver Streak engine parts: [catalog].	  	TX593449	 	12/08/1980	 	Frederick Manufacturing Company, Inc.	  	Registered
					
	 Patents
  
	  		 		 		  	
	Patent Title	  	Patent No.	 	Issue Date	 	Record Owner	  	Status
	Radio interface	  	D368474	 	04/02/1996	 	SFA, Inc.	  	Issued

 SCHEDULE 4.16 
 COLLECTIVE BARGAINING AGREEMENTS 
 None. 
  

 6 

 Table of Contents 
  

			
	  	 	 Page

  

 110Form of Senior Secured Term Loan Agreement

 Exhibit 10.1 
  
  
  
 SENIOR SECURED TERM LOAN
AGREEMENT 
 Dated as of October 20, 2009 
 among 
 WILLIAM LYON HOMES, INC. as Borrower, 

 and 
 COLFIN WLH FUNDING, LLC, as Administrative Agent, 
 and 
 COLFIN WLH FUNDING, LLC, as Initial Lender and Lead Arranger, 
 and 
 The Lenders Party Hereto 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS	  	1
			
	            1.01  	 	DEFINED TERMS	  	1
	1.02  	 	OTHER INTERPRETIVE PROVISIONS	  	31
	1.03  	 	ACCOUNTING TERMS	  	32
	1.04  	 	ROUNDING	  	32
	1.05  	 	TIMES OF DAY	  	33
		
	ARTICLE II. CREDIT EXTENSION	  	33
			
	2.01  	 	LOANS.	  	33
	2.02  	 	[RESERVED]	  	34
	2.03  	 	PREPAYMENTS	  	34
	2.04  	 	REPAYMENT OF LOANS	  	36
	2.05  	 	INTEREST	  	36
	2.06  	 	FEES	  	37
	2.07  	 	COMPUTATION OF INTEREST AND FEES	  	37
	2.08  	 	EVIDENCE OF DEBT	  	37
	2.09  	 	PAYMENTS GENERALLY; ADMINISTRATIVE AGENT’S CLAWBACK	  	38
	2.10  	 	SHARING OF PAYMENTS BY LENDERS	  	38
	2.11  	 	SECURITY	  	39
		
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY	  	39
			
	3.01  	 	TAXES.	  	39
	3.02  	 	[RESERVED]	  	41
	3.03  	 	[RESERVED]	  	41
	3.04  	 	COMPENSATION FOR LOSSES	  	41
	3.05  	 	MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS	  	42
	3.06  	 	SURVIVAL	  	42
		
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSION	  	42
			
	4.01  	 	CONDITIONS TO INITIAL DRAW CLOSING DATE TERM LOAN FUNDING	  	42
	4.02  	 	CONDITIONS TO DELAYED DRAW CLOSING DATE TERM LOAN FUNDING	  	47
	4.03  	 	CONDITIONS TO EACH POST CLOSING CREDIT EXTENSION	  	49
	4.04  	 	CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS UNIMPROVED LAND	  	50
	4.05  	 	CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS LAND UNDER DEVELOPMENT	  	51
	4.06  	 	CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS FINISHED LOTS	  	52
	4.07  	 	CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS HOMES UNDER CONSTRUCTION	  	53

  

 i 

					
	            4.08  	  	CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS MODEL HOMES	  	54
	4.09  	  	GENERAL CONDITIONS TO REAL PROPERTY ELIGIBLE COLLATERAL BEING INCLUDED IN THE BORROWING BASE	  	55
		
	ARTICLE V. REPRESENTATIONS AND WARRANTIES	  	57
			
	5.01  	  	EXISTENCE, QUALIFICATION AND POWER; COMPLIANCE WITH LAWS	  	57
	5.02  	  	AUTHORIZATION; NO CONTRAVENTION	  	57
	5.03  	  	GOVERNMENTAL AUTHORIZATION; OTHER CONSENTS	  	57
	5.04  	  	BINDING EFFECT	  	57
	5.05  	  	FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT; SOLVENCY	  	58
	5.06  	  	LITIGATION	  	58
	5.07  	  	NO DEFAULT	  	58
	5.08  	  	OWNERSHIP OF PROPERTY; LIENS	  	58
	5.09  	  	SECURED INDEBTEDNESS	  	60
	5.10  	  	INSURANCE	  	60
	5.11  	  	TAXES	  	60
	5.12  	  	ERISA COMPLIANCE	  	60
	5.13  	  	SUBSIDIARIES; JOINT VENTURES	  	61
	5.14  	  	MARGIN REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING COMPANY ACT	  	61
	5.15  	  	DISCLOSURE	  	61
	5.16  	  	COMPLIANCE	  	61
	5.17  	  	COMPLIANCE WITH ENVIRONMENTAL LAWS	  	62
	5.18  	  	LOANS AS SENIOR INDEBTEDNESS	  	63
	5.19  	  	LAWS PERTAINING TO LAND SALES	  	63
	5.20  	  	FISCAL YEAR	  	63
	5.21  	  	COMMON ENTERPRISE AND CONSIDERATION	  	63
	5.22  	  	SUBSIDIARIES OWNING REAL PROPERTY	  	63
	5.23  	  	GUARANTORS OF THE INDENTURES	  	64
	5.24  	  	ENTITLEMENTS	  	64
	5.25  	  	MATERIAL AGREEMENTS; NO MATERIAL DEFAULTS	  	64
	5.26  	  	NO CONDEMNATION	  	64
	5.27  	  	CFD AND SUBDIVISION BOND	  	65
	5.28  	  	UTILITIES	  	65
	5.29  	  	LOT AND UNIT SALES	  	65
	5.30  	  	GOLF COURSES	  	65
	5.31  	  	MORATORIUMS	  	65
	5.32  	  	CONSTRUCTION DEFECTS; WARRANTIES	  	65
	5.33  	  	AMENITIES	  	66
	5.34  	  	ORAL AGREEMENTS; MATTERS NOT OF RECORD	  	66
	5.35  	  	BORROWING BASE	  	66
	5.36  	  	LEASED REAL PROPERTY	  	66
	5.37  	  	CREATION, PERFECTION AND PRIORITY OF LIENS	  	66
	5.38  	  	EQUITY SECURITIES	  	66

  

 ii 

					
	            5.39  	  	NO AGREEMENTS TO MERGE	  	67
	5.40  	  	LABOR MATTERS	  	67
	5.41  	  	BURDENSOME CONTRACTUAL OBLIGATIONS ETC	  	67
	5.42  	  	BROKERAGE COMMISSIONS	  	67
	5.43  	  	AGREEMENTS WITH AFFILIATES AND OTHER AGREEMENTS	  	67
	5.44  	  	FOREIGN ASSETS CONTROL, ETC.	  	67
	5.45  	  	INTERNAL CONTROLS	  	67
	5.46  	  	INTERCOMPANY RECEIVABLES	  	68
	5.47  	  	EFFECTIVE DATE; MATERIALITY THRESHOLD OF CERTAIN REPRESENTATIONS AND WARRANTIES	  	68
	5.48  	  	REPRESENTATIONS AND WARRANTIES UPON DELIVERY OF FINANCIAL STATEMENTS, DOCUMENTS, AND OTHER INFORMATION	  	69
		
	ARTICLE VI. AFFIRMATIVE COVENANTS	  	69
			
	6.01  	  	FINANCIAL STATEMENTS AND OTHER REPORTS	  	69
	6.02  	  	CERTIFICATES; OTHER INFORMATION	  	70
	6.03  	  	NOTICES	  	73
	6.04  	  	PAYMENT OF OBLIGATIONS	  	73
	6.05  	  	PRESERVATION OF EXISTENCE, ETC.	  	73
	6.06  	  	MAINTENANCE OF PROPERTIES	  	74
	6.07  	  	MAINTENANCE OF INSURANCE	  	74
	6.08  	  	COMPLIANCE	  	75
	6.09  	  	BOOKS AND RECORDS	  	75
	6.10  	  	INSPECTION RIGHTS	  	75
	6.11  	  	USE OF PROCEEDS	  	75
	6.12  	  	NEW SUBSIDIARIES	  	76
	6.13  	  	INTANGIBLE, RECORDING AND STAMP TAX	  	76
	6.14  	  	FURTHER ASSURANCES	  	76
	6.15  	  	SENIOR UNSECURED NOTES	  	76
	6.16  	  	SPECIAL COVENANTS RELATING TO COLLATERAL	  	77
	6.17  	  	PAPA OBLIGATIONS	  	83
	6.18  	  	TRANSFER OF CF PROPERTY AND MF PROPERTY TO BORROWER	  	84
		
	ARTICLE VII. NEGATIVE COVENANTS	  	85
			
	7.01  	  	PERMITTED INDEBTEDNESS	  	85
	7.02  	  	PERMITTED LIENS	  	86
	7.03  	  	INVESTMENTS	  	87
	7.04  	  	FUNDAMENTAL CHANGES	  	87
	7.05  	  	ACQUISITIONS	  	88
	7.06  	  	TRANSACTIONS WITH AFFILIATES	  	88
	7.07  	  	SENIOR UNSECURED NOTES	  	89
	7.08  	  	PERMITTED DISTRIBUTIONS	  	89
	7.09  	  	CHANGE IN NATURE OF BUSINESS	  	89
	7.10  	  	USE OF PROCEEDS	  	90
	7.11  	  	NO OTHER NEGATIVE PLEDGE	  	90

  

 iii 

					
	            7.12  	  	LOANS TO AFFILIATES	  	90
	7.13  	  	[RESERVED]	  	91
	7.14  	  	[RESERVED]	  	91
	7.15  	  	TANGIBLE NET WORTH	  	91
	7.16  	  	SECURED INDEBTEDNESS	  	91
	7.17  	  	EXPENDITURES OUTSIDE OF CORE BUSINESSES	  	91
	7.18  	  	EMPLOYEE COMPENSATION	  	92
	7.19  	  	[RESERVED]	  	92
	7.20  	  	CHANGES IN KEY MANAGEMENT	  	92
	7.21  	  	EXCLUDED ASSETS	  	92
	7.22  	  	IMPROVEMENTS	  	92
	7.23  	  	PAPA OBLIGATION	  	92
	7.24  	  	NEGATIVE PLEDGE	  	93
	7.25  	  	CF PROPERTY AND MF PROPERTY	  	93
	7.26  	  	REFINANCED WACHOVIA REVOLVING CREDIT AGREEMENT	  	93
	7.27  	  	REFINANCED CBT, CNB AND JPM REVOLVING CREDIT AGREEMENTS	  	93
		
	ARTICLE VIII. RELEASES	  	93
			
	8.01  	  	GENERAL REQUIREMENTS FOR RELEASES	  	93
	8.02  	  	STANDARD RELEASES	  	95
	8.03  	  	DEDICATIONS	  	96
	8.04  	  	PERMITTED CONSTRUCTION INDEBTEDNESS	  	96
		
	ARTICLE IX. EVENTS OF DEFAULT AND REMEDIES	  	97
			
	9.01  	  	DEFAULT	  	97
	9.02  	  	REMEDIES UPON EVENT OF DEFAULT	  	100
	9.03  	  	APPLICATION OF FUNDS	  	101
	9.04  	  	PROTECTIVE ADVANCES/CURE RIGHTS	  	101
		
	ARTICLE X. ADMINISTRATIVE AGENT	  	102
			
	10.01	  	APPOINTMENT AND AUTHORITY	  	102
	10.02	  	RIGHTS AS A LENDER	  	102
	10.03	  	EXCULPATORY PROVISIONS	  	102
	10.04	  	RELIANCE BY ADMINISTRATIVE AGENT	  	103
	10.05	  	DELEGATION OF DUTIES	  	103
	10.06	  	RESIGNATION OF ADMINISTRATIVE AGENT	  	104
	10.07	  	NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS	  	104
	10.08	  	NO OTHER DUTIES ETC	  	104
	10.09	  	ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM	  	105
	10.10	  	COLLATERAL AND GUARANTY MATTERS	  	105
		
	ARTICLE XI. MISCELLANEOUS	  	106
			
	11.01	  	AMENDMENTS, ETC	  	106
	11.02	  	NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION	  	107
	11.03	  	NO WAIVER; CUMULATIVE REMEDIES	  	108

  

 iv 

					
	            11.04	  	EXPENSES; INDEMNITY; DAMAGE WAIVER	  	108
	11.05	  	PAYMENTS SET ASIDE	  	110
	11.06	  	SUCCESSORS AND ASSIGNS	  	110
	11.07	  	TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY	  	113
	11.08	  	RIGHT OF SETOFF	  	114
	11.09	  	INTEREST RATE LIMITATION	  	114
	11.10	  	COUNTERPARTS; INTEGRATION; EFFECTIVENESS	  	115
	11.11	  	SURVIVAL OF REPRESENTATIONS AND WARRANTIES	  	115
	11.12	  	SEVERABILITY	  	115
	11.13	  	REPLACEMENT OF LENDERS	  	115
	11.14	  	GOVERNING LAW; JURISDICTION; ETC.	  	116
	11.15	  	WAIVER OF JURY TRIAL	  	116
	11.16	  	ARBITRATION	  	117
	11.17	  	RELATIONSHIP OF PARTIES	  	119
	11.18	  	USA PATRIOT ACT NOTICE	  	119
	11.19	  	DISCRETION STANDARD	  	119
	11.20	  	TIME OF THE ESSENCE	  	120

  

 v 

 SENIOR TERM LOAN AGREEMENT 
 THIS SENIOR SECURED TERM LOAN AGREEMENT (“Agreement”) is entered into as of October 20, 2009, among WILLIAM LYON
HOMES, INC., a California corporation (“Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), COLFIN WLH FUNDING, LLC, a Delaware limited
liability company, as Initial Lender, and COLFIN WLH FUNDING, LLC, a Delaware limited liability company, as Administrative Agent. 
 Borrower has requested that the Lenders provide a multiple draw term loan facility, which multiple draw term loan facility will be used by Borrower to, among other things, refinance certain of Borrower’s existing revolving credit
facilities. 
 The Lenders are willing to do so on the terms and conditions set forth herein. 
 In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
 ARTICLE I. 
 DEFINITIONS AND ACCOUNTING TERMS 
 1.01 DEFINED TERMS. 
 As used in this Agreement, the following terms shall have the meanings set forth below: 
 “AAA” has the meaning specified in Section 11.16(b). 
 “Administrative Agent” means ColFin WLH Funding, LLC in its capacity as administrative agent under any of the Loan
Documents, or any successor administrative agent. 
 “Administrative Agent Fee Letter” means the letter
agreement dated as of the date hereof, between Borrower and Administrative Agent. 
 “Administrative Agent’s
Office” means Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02, or such other address or account as Administrative Agent may from time to time notify to Borrower and the Lenders. 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by Administrative Agent.

 “Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Aggregate
Loans” means the Loans of all the Lenders. 
 “Aggregate Real Property” means any and all of the
Borrower Real Property, the CF Property and the MF Property. 

 “Agreement” means this Senior Term Loan Agreement. 
 “Amenities” means, collectively, the gatehouses, maintenance sheds, golf courses, marinas, clubhouses, and swimming, tennis
and other recreational facilities or types of amenities, and Improvements ancillary thereto, located at or used in connection with any Project or Asset by owners of Units or Lots. 
 “Annual Budget” has the meaning specified in Section 4.01(d). 
 “Annual Period” has the meaning specified in Section 2.03(c)(i). 
 “Anti-Terrorism Law” shall mean each of: (a) the Executive Order, (b) the Patriot Act, (c) the Money
Laundering Control Act of 1986, 18 U.S.C. Sect. 1956, and (d) any other Law now or hereafter enacted to monitor, deter or otherwise prevent terrorism or the funding or support of terrorism. 
 “Apartment” means a residential apartment building consisting of single family residential units for rent. 
 “Applicable Discount Rate” means with respect to the Eligible Real Property Collateral, a discount rate determined by
reference to the Real Property Classification of the Borrower Real Property included therein, as follows: 
  

			
	 Real Property

Classification:
  
	  	 Applicable Discount

 Rate:
  

	 Unimproved Land
  
	  	 25%
  

	 Land
Under Development
  
	  	 20%
  

	 Finished
Lots
  
	  	 15%
  

	 Homes
Under Construction
  
	  	 12%
  

	 Model Homes
  
	  	 10%
  

 In addition, with respect to any Real Property acquired after the Closing Date that
is subject to any PAPA Obligations, and with respect to which the Borrower has not obtained and delivered a duly executed, acknowledged, recorded subordination of the PAPA Obligations in form substantially in accordance with the respective forms
which were agreed to between Borrower and Administrative Agent on or prior to the Closing Date, the Applicable Discount Rate set forth in the chart above which is applicable to such Real Property shall be the percentage value reflected in the chart
above for the applicable Real Property Classification plus 200 basis points (e.g., in such a case, the Applicable Discount Rate for Model Homes would be increased from 10% to 12%, and so on). 
  

 2 

 “Applicable Percentage” means with respect to any Lender as of any date,
the percentage (carried out to the ninth decimal place) of the Aggregate Loans owed such Lender at such time. The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable. 
 “Applicable Rate” means
fourteen percent (14.0%) per annum. 
 “Appraisal” means, with respect to (x) Eligible Real Property
Collateral, each appraisal that meets the following requirements: (i) such appraisal is prepared by an appraiser selected by Majority Lenders; (ii) such appraisal satisfies all applicable requirements set forth in Section 6.16(j);
(iii) the values set forth in such appraisal have been reviewed and are satisfactory to Majority Lenders; and (iv) such appraisal is otherwise in form and content satisfactory to Majority Lenders, (y) any PCI Released Property
securing Permitted Construction Indebtedness, each Revolver Appraisal and (z) with respect to the CF Property and the MF Property, each appraisal that meets the following requirements: (i) such appraisal is prepared by an appraiser
selected by Majority Lenders; (ii) such appraisal satisfies all applicable requirements set forth in Section 6.16(j), (except that for purposes of this clause (z) only, any references in Section 6.16(j) with respect to any
Borrower Real Property shall be deemed to be to the CF Property and the MF Property); (iii) the values set forth in such appraisal have been reviewed and are satisfactory to Majority Lenders. 
 “Appraised Value” means, with respect to Eligible Real Property Collateral and PCI Released Property, the appraised value
of such Borrower Real Property set forth in the most recent Appraisal received by Majority Lenders in accordance with the Loan Documents, less, to the extent not taken into account in the Appraisal, the reductive effect of any CFD Obligations, PAPA
Obligations and the reasonable and customary anticipated costs of sale related to such Borrower Real Property. 
 “Asset” means Borrower Real Property (whether now owned or hereafter acquired) constituting a full separate product line of Units (consistent with those sixty-eight (68) separate product lines on Schedule GAP and
Schedule GBP which in the aggregate make up the Group A Property and the Group B Property, including adequate access, ingress and egress and with access to and rights to any common areas and Amenities related to the applicable Project), but not just
a Phase or portion of such a product line. (References to “asset” (using lower case “a”) are not to be confused with this definition of “Asset”.) 
 “Asset Sale” means any sale, sale-leaseback, transfer, lease, conveyance or other disposition by any member of the
Consolidated Group of assets (including the Equity Securities of any Subsidiary or any Joint Venture) not in the ordinary course of such member of the Consolidated Group’s Core Businesses. 
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 11.06(b)), and accepted by Administrative Agent, in substantially the form of Exhibit “C” attached hereto and made a part hereof or any other form approved by Administrative
Agent. 
  

 3 

 “Audited Financial Statements” means the audited consolidated balance sheet
of Parent and its direct and indirect Subsidiaries for the fiscal year ended December 31, 2008, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Consolidated
Group, including the notes thereto. 
 “Borrower” has the meaning specified in the introductory paragraph
hereto. 
 “Borrower Real Property” means any interest in Real Property owned or acquired by Borrower from time
to time. 
 “Borrower’s Knowledge” means the best knowledge of Borrower after diligent investigation and
inquiry, including inquiry of the Consolidated Group and as it relates to any Real Property, the project managers for such Real Property. 
 “Borrowing Base” means, (x) as of the date of this Agreement, $264,371,000 and (y) on any date of determination thereafter, sixty percent (60%) of the sum of the following,
each as of the date of determination: 
 (a) Unrestricted Cash; plus 
 (b) Escrow Receivables; plus 
 (c) the Eligible Real Property Collateral Valuation. 
                     , subject to the following: 
 In determining the Borrowing Base: (1) no asset shall be counted more than once in the calculation of the Borrowing Base; (2) no asset or component shall be included in the Borrowing Base unless
on the relevant date of determination (x) Administrative Agent on behalf of the Lenders holds an enforceable first priority perfected Lien subject, with respect to Borrower Real Property only, to Permitted Exceptions, (y) except as set
forth in the preceding clause (x), there are no Liens encumbering such asset and (z) other than the assets described in clause (a) above, such asset constitutes Real Property and is qualified as Eligible Real Property Collateral under the
terms of this Agreement; (3) notwithstanding anything to the contrary in this Agreement (including in Article IV), no Borrower Real Property or other asset that is subject to any lien in favor of the lenders of any Permitted Construction
Indebtedness shall be included in the computation of Borrowing Base; (4) notwithstanding anything to the contrary in this Agreement (including in Article IV), neither Unentitled Land nor any Real Property other than Borrower Real Property shall
be included in the computation of Borrowing Base. 
 “Borrowing Base Report” means a report with respect to the
Borrowing Base in the form attached hereto as Exhibit “E”, which form may be changed by Majority Lenders from time to time, and which shall include a certificate from a Responsible Officer of Borrower setting forth a detailed calculation
of the Borrowing Base, broken down by Project, Asset or Phase and by Real Property Classification within such Project, Asset or Phase, and attaching all documentation used in calculating the Borrowing Base. The computation of the components of the
Borrowing Base included in such report shall include the Certified Net Cash Flow Report and a computation of the Net Present Value of Projected Net Revenues and the Net Present Value of Projected Total Project Costs in such detail as is from time to
time requested by the Administrative Agent. 
  

 4 

 “Broker’s Commission” means any and all brokerage commissions,
finder’s fees or similar fees or payments owed in connection with the extensions of credit contemplated by this Agreement as a result of any agreement (express or implied, written or oral) entered into by Borrower or any member of the
Consolidated Group. 
 “Building Permit” means all Entitlements (including the building permit) required under
applicable Law necessary to commence Vertical Construction of the contemplated type and number of single- or multi- family “for sale” residential Units and related Amenities on the applicable Borrower Real Property. 
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the States of California or New York. 
 “Cash Equivalents” shall
mean: 
 (a) Direct obligations of, or obligations the principal and interest on which are unconditionally guaranteed by, the
United States of America or obligations of any agency of the United States of America to the extent such obligations are backed by the full faith and credit of the United States of America, in each case maturing within one year from the date of
acquisition thereof; 
 (b) Certificates of deposit maturing within one year from the date of acquisition thereof issued by a
commercial bank or trust company organized under the laws of the United States of America or a state thereof or that is a Lender, provided that (i) such deposits are denominated in Dollars, (ii) such bank or trust company has capital,
surplus and undivided profits of not less than $100,000,000 and (iii) such bank or trust company has certificates of deposit or other debt obligations rated at least A-1 (or its equivalent) by Standard and Poor’s Ratings Services or P-1
(or its equivalent) by Moody’s Investors Service, Inc.; 
 (c) Open market commercial paper (other than commercial paper of
Borrower or any other member of the Consolidated Group) maturing within 270 days from the date of acquisition thereof issued by a corporation organized under the laws of the United States of America or a state thereof, provided such commercial paper
is rated at least A-1 (or its equivalent) by Standard and Poor’s Ratings Services or P-1 (or its equivalent) by Moody’s Investors Service, Inc.; 
 (d) Any repurchase agreement entered into with a commercial bank or trust company organized under the laws of the United States of America or a state thereof, provided that (i) such bank or trust
company has capital, surplus and undivided profits of not less than $100,000,000, (ii) such bank or trust company has certificates of deposit or other debt obligations rated at least A-1 (or its equivalent) by Standard and Poor’s Ratings
Services or P-1 (or its equivalent) by Moody’s Investors Service, Inc., (iii) the repurchase obligations of such bank or trust company under such repurchase agreement are fully secured by a perfected security interest in a security or
instrument of the type described in clause (a), (b) or (c) above and (iv) such security or instrument so securing the repurchase obligations has a fair market value at the time such repurchase agreement is entered into of not less
than 100% of such repurchase obligations; and 
  

 5 

 (e) Shares of money market mutual or similar funds which invest exclusively in assets
satisfying the requirements of clauses (a) through (d) of this definition. 
 “Certified Net Cash Flow
Report” means a combined schedule setting forth as of the date of determination the projected amounts and timing of Projected Net Revenues and Projected Total Project Costs for the Eligible Real Property Collateral from the date of
determination through the date the last parcel of Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit included in Eligible Real Property Collateral is projected to be sold, which report shall be prepared by the Borrower and
certified by a Responsible Officer that such report has been prepared in good faith based on assumptions that such Responsible Officer believed as of the date of such report to be reasonable and to Borrower’s Knowledge no information has come
to the attention of Borrower from the date of such report to the date of delivery to the Administrative Agent which would render such report to be untrue or misleading. 
 “CFD” means any means any improvement district, “Mello Roos” district, school mitigation plan or district, community facilities district, special assessment district or similar
district or any other municipal utility, levee, water improvement or similar district with respect to any Real Property. 
 “CFD Obligations” means the obligations, with respect to any CFD, binding upon either the Real Property subject to the CFD or the owner of the Real Property subject to the CFD. 
 “CF/MF Appraised Value” means, with respect to the CF Property and the MF Property, the appraised value set forth in the
most recent Appraisal received by Majority Lenders in accordance with the Loan Documents, less, to the extent not taken into account in the Appraisal, the reductive effect of any CFD Obligations, PAPA Obligations and the reasonable and customary
anticipated costs of sale related to such CF Property and MF Property. 
 “CF Property” means the Real Property
located in Queen Creek, Arizona, commonly known as the Church Farms property, as more specifically described on Schedule CF. 
 “CF Owner” means Circle G at the Church Farm North Joint Venture, LLC, an Arizona limited liability company. 
 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental
Authority. 
 “Change of Control” means an event or series of events by which: 
 (a) Parent shall cease to be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has

  

 6 

 
the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time) (“Beneficial Owner”) of one
hundred percent (100.0%) of the Equity Securities of Borrower and the Guarantors entitled to vote for member of the board of directors or equivalent governing body of Borrower and the Guarantors; or 
 (b) the shareholders of Parent on the Closing Date and/or Permitted Holders thereafter shall cease to be the Beneficial Owner of one hundred
percent (100.0%) of the Equity Securities of Parent entitled to vote for members of the board of directors or equivalent governing body of Parent; or 
 (c) during any period of twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent governing body of any Loan Party cease to be composed of individuals
(i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred
to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any
person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); or 
 (d) any Person or two or more Persons acting in concert (other than the owners of the Equity Securities of Parent on the Closing Date or Permitted Holders thereafter) shall have acquired by contract or otherwise, or shall have entered into
a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of the Parent, or Borrower, or control over
the Equity Securities of Parent or Borrower entitled to vote for members of the board of directors or equivalent governing body of Parent or Borrower on a fully-diluted basis (and taking into account all such securities that such Person or Group has
the right to acquire pursuant to any option right) representing ten percent (10%) or more of the combined voting power of such securities; or 
 (e) for any reason a “change in control” or similar event shall occur as provided in any Indenture or Permitted Construction Indebtedness; 
 provided, however, that the acquisition by or on behalf of an employee benefit plan or employee stock purchase plan of the Parent or Borrower shall not be
included in determining whether a Change of Control shall have occurred. 
 “Claims” has the meaning set forth
in Section 11.04(b). 
  

 7 

 “Closing Date” means the first date all the conditions precedent in
Section 4.01 are satisfied or waived in accordance with Section 11.01. 
 “Code” means the Internal
Revenue Code of 1986. 
 “Collateral” means all now owned or hereafter acquired or created Property of the Loan
Parties in which Administrative Agent or any Lender has a Lien to secure the Obligations or the Unconditional Guarantees. 
 “Collateral Certificate” shall mean a Collateral Certificate in form and substance satisfactory to Majority Lenders. 
 “Commitment” means, with respect to each Lender, such Lender’s Initial Term Loan Commitment, Delayed Draw Term Loan Commitment and/or Second Term Loan Commitment, as applicable.

 “Compliance Certificate” means a certificate substantially in the form of Exhibit “B” attached
hereto and made a part hereof, which certificate shall demonstrate Borrower’s compliance with the Financial Covenants and which shall be certified by the chief financial officer of Borrower. 
 “Conditions to Delayed Draw Term Loan Funding” means the conditions set forth in Sections 4.02 and 4.03. 
 “Conditions to Second Term Loan Funding” means the conditions set forth in Section 4.03. 
 “Consolidated Group” means, collectively, Parent, Borrower and their respective Subsidiaries. 
 “Construction Agreements” means construction agreements and agreements with architects, engineers, contractors or
subcontractors. 
 “Contractual Obligation” means, as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
 “Control Agreement” shall mean a control agreement among the Borrower or any Guarantor, a depository bank or securities intermediary, as the case may be, and Administrative Agent, in form and substance acceptable to
Administrative Agent. 
 “Core Businesses” means (a) the business of developing “for sale”
residential Aggregate Real Property into Lots and Units, and constructing “for sale” residential Units, and selling Lots and Units; (b) business directly related thereto as undertaken on the Closing

  

 8 

 
Date; and (c) other lines of business directly related to homebuilding that are approved by the Majority Lenders. Core Businesses expressly excludes the ownership of Aggregate Real Property
for investment, including ownership of rental Real Property, except for Aggregate Real Property, if any, used by the Consolidated Group as their business offices. 
 “Credit Advance” has the meaning set forth in Section 7.12(a). 
 “Credit Extension” means a borrowing. 
 “Customer Deposit Liabilities” means
collectively, Escrow Receivables, and down payments or earnest money deposited by purchasers pursuant to Purchase Contracts. 
 “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 “Dedication” means a customary transfer by Borrower, or the granting of easements, rights of way, and licenses by Borrower,
to municipalities, utility providers, municipal districts, and property owners’ associations (of a type, value and nature, and in form and content, as is customary under the circumstances) in connection with the development of a Project, which
shall be subject to the reasonable approval of Majority Lenders, and shall only be for the purpose of providing streets, common areas, parks, water, waste water and sewage treatment facilities, hillside and other areas, and similar land and
improvements. 
 “Deed of Trust” shall mean, for each Project, a Deed of Trust (or Mortgage), Security
Agreement and Fixture Filing (With Assignment of Rents and Leases) in form approved by Majority Lenders from time to time with respect to each applicable jurisdiction executed by Borrower, as trustor, to Title Company, as trustee, and naming
Administrative Agent as beneficiary for the benefit of itself and the Lenders, creating a first priority Lien on the Borrower Real Property and the Collateral situated thereon, and all rights and easements appurtenant thereto. Each Deed of Trust
shall secure Indebtedness equal to the Total Commitment. For purposes of this Agreement, all such Deeds of Trust securing the Loan shall be referred to individually and collectively in the singular as the “Deed of Trust.” 
 “Default” means any event or condition set forth in Section 9.01 or that, with the giving of any notice, the passage
of time, or both, would be an Event of Default. 
 “Default Rate” means an interest rate equal to (i) the
Applicable Rate plus (ii) five percent (5.0%) per annum. 
 “Defaulting Lender” means any Lender that
(a) has failed to fund any portion its Commitment, if any, with respect to a Credit Extension when required hereunder, (b) has otherwise failed to pay over to Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one (1) Business Day of the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 
  

 9 

 “Delayed Draw Term Loan” means, for each Lender, the term loan facility
advanced by such Lender on the Delayed Draw Closing Date pursuant to Section 2.01(b). 
 “Delayed Draw Closing
Date” means the date on which the Conditions to Delayed Draw Term Loan Funding have been met and the Lenders have each advanced their Delayed Draw Term Loan Commitment. In no event shall the Delayed Draw Closing Date be later than the
Delayed Draw Commitment Termination Date. 
 “Delayed Draw Term Loan Commitment” means the commitment of a
Lender to make or otherwise fund a Delayed Draw Term Loan. The amount of each Lender’s Delayed Draw Term Loan Commitment is as set forth on Schedule 2.01 or in the applicable Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable. 
 “Delayed Draw Commitment Termination Date” means 10:00 a.m. (Los Angeles time)
on the date that is sixty (60) days after the Closing Date. 
 “Designated Person” shall mean any Person
who (a) is named on the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control and/or any other similar lists maintained by the U.S. Department of the
Treasury’s Office of Foreign Assets Control pursuant to authorizing statute, executive order or regulation, (b) (i) is a Person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of the
Executive Order or any related legislation or any other similar executive order(s) or (ii) engages in any dealings or transactions prohibited by Section 2 of the Executive Order or is otherwise associated with any such Person in any manner
violative of Section 2 of the Executive Order or (c) (i) is an agency of the government of a country, (ii) an organization controlled by a country, or (iii) a Person resident in a country that is subject to a sanctions
program identified on the list maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control, or as otherwise published from time to time, as such program may be applicable to such agency, organization or Person.

 “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition
(including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith,
and including any condemnation of any property of such Person. 
 “Distribution” means any of the following:
(a) the payment by any Person of any distributions or other payments to its shareholders, partners, Affiliates, members or other equity interest holders; (b) the declaration or payment of any dividend on or in respect of shares of any
class of capital stock of, or partnership, membership or other equity interest in, any Person; (c) the purchase or other retirement of any shares of any class of capital stock of, or partnership, membership or equity interest in, any Person,
directly or indirectly through a Subsidiary or otherwise; (d) the return of capital by any Person to its shareholders, partners, Affiliates, members or other equity interest holders; and (e) any other payment on or in respect of any shares
of any class of capital stock of, or partnership, membership or other equity interest in, any Person, including payments to members or partners of Joint Ventures. 
  

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 “Dollar” and “$” mean lawful money of the United States.

 “Eligible Assignee” means (a) a Lender; (b) a Related Fund; or (c) an Affiliate of a Lender
or a Related Fund; and (c) any other Person (other than a natural person) approved by (i) Majority Lenders, and (ii) unless an Event of Default has occurred and is continuing, Borrower (which approval of Borrower shall not be
unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include Borrower or any of Borrower’s Affiliates or Subsidiaries. If any such approval from Borrower is not withheld in
writing with a statement of the reasons therefor delivered to Administrative Agent within ten (10) days after notice is given to Borrower of the intended assignment, such approval shall be deemed given. 
 “Eligible Participant” means any other Person (other than a natural person); provided that notwithstanding the foregoing,
“Eligible Participant” shall not include Parent, Borrower or any of their respective Affiliates or Subsidiaries. 
 “Eligible Project” has the meaning set forth in Section 4.09. 
 “Eligible Real Property
Collateral” means on the Closing Date, to the extent that all of the conditions in Section 4.01 are satisfied, the Group A Property; on the date that all of the conditions in Section 4.02 are satisfied, the Group B Property; and
thereafter (including with respect to the Group A Property and the Group B Property and any other Borrower Real Property), Borrower Real Property that meets all of the conditions of Section 4.09 and all of the conditions in at least one of
Sections 4.04, 4.05, 4.06, 4.07 or 4.08 of this Agreement for inclusion in the Borrowing Base as Eligible Real Property Collateral. The conditions in Section 4.01 with respect to the Group A Property must only be met on the Closing Date and the
conditions in Section 4.02 with respect to the Group B Property must only be met on the earlier of (1) the Delayed Draw Closing Date, (2) the Second Term Loan Funding Date or (3) the date that is sixty (60) days after the
Closing Date, and thereafter, for purposes of determining whether Group A Property or Group B Property is Eligible Real Property Collateral and which Real Property Classification may apply, the conditions in Sections 4.01 and 4.02 are superseded by
the conditions in Section 4.04 through 4.09, inclusive. Notwithstanding anything to the contrary in this Agreement: (i) neither the CF Property nor the MF Property may be Eligible Real Property Collateral unless, with respect to the CF
Property or the MF Property, the fee interest has been conveyed to Borrower free of the Lien of the Existing Secured Indebtedness and free of all other Liens except Permitted Exceptions, and all of the conditions in this Agreement for inclusion of
Borrower Real Property as Eligible Real Property Collateral have been met with respect to the Real Property constituting the CF Property or the MF Property, as applicable; and (ii) at Majority Lender’s discretion, Borrower Real Property
that meets all of the conditions to be Eligible Real Property Collateral, other than the condition requiring Borrower Real Property to be (or to be intended to be) developed into single- or multi- family “for sale” residential uses, that
is intended to be used for commercial purposes, and that is part of, adjacent to, ancillary to, or used in connection with, single- or multi- family “for sale” residential Eligible Real Property Collateral, may be Eligible Real Property
Collateral, provided that such Borrower Real Property shall in no event account for more than five percent (5%) of the Eligible Real Property Collateral Valuation at any time, and the value of such Real Property Collateral shall be determined
by Majority Lenders. 
  

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 “Eligible Real Property Collateral Valuation” means the amount derived as
follows,, without duplication, for any Unimproved Land (to the extent that it is not a Lot or Unit), and each Lot or Unit included in the Eligible Real Property Collateral: (i) the Net Present Value of the Projected Net Revenues of such
Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit minus (ii) the Net Present Value of Total Project Costs of such Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit included in Eligible Real
Property Collateral. Notwithstanding the foregoing, in no event will the Eligible Real Property Collateral Valuation for any Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit included in Eligible Real Property Collateral
exceed the most recent Appraised Value, if any, received by the Majority Lenders with respect to such Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit. 
 “Entitlements” means, for each Project or Asset, as the case may be, each and all approvals, authorizations, consents,
certificates, entitlements, franchises, licenses, permits, registrations, qualifications, zoning classifications, variances and other actions and rights granted by or applications or filings with any Persons necessary or appropriate for the
improvement and development of the Aggregate Real Property for single- or multi- family “for sale” residences or for the conduct of the Core Businesses. 
 “Environmental Indemnity” means that certain Environmental Indemnity executed by Borrower, which indemnity shall be in form and content acceptable to Majority Lenders. 
 “Environmental Laws” means any and all applicable Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the generation, handling, use, transport,
storage, disposal or release of any materials which may adversely affect the environment or public health, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Loan Parties or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the presence,
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or
(e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
 “Environmental Matters” means claims, liabilities, investigations, litigation, administrative proceedings, whether pending or, to Borrower’s Knowledge threatened in writing, or
judgments or orders relating to any Hazardous Materials asserted or threatened in writing against any member of the Consolidated Group or any past or present tenant, operator or owner of all or any part of the Real Property owned, leased or used by
any member of the Consolidated Group. 
  

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 “Equity Securities” means, with respect to any Person, (a) all common
stock, preferred stock, participations, shares, partnership interests, limited liability company interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and (b) all
warrants, options and other rights to acquire any of the foregoing. 
 “ERISA Affiliate” means any trade or
business (whether or not incorporated) under common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code). 
 “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal
by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as
such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a
notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition
which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than
for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate. 
 “Escrow Receivables” means, as of any date of determination, the amounts due to Borrower and held at an escrow or title company following the sale and conveyance of title of a Lot or Unit to a buyer to the extent that such
amounts are free and clear of all Liens, rights and claims of third parties and are not subject to any restriction pursuant to any Contractual Obligations. 
 “Event of Default” shall mean the occurrence of any Default and Administrative Agent, acting at the direction of Majority Lenders, and following applicable grace periods, if any, has
declared the occurrence of such event or events an Event of Default by providing Borrower written notice thereof; provided, however, that with respect to any Default listed in Section 9.01(f), such an event shall be an automatic Event of
Default with no requirement that the Administrative Agent, acting at the direction of Majority Lenders, provide Borrower written notice thereof. 
 “Excluded Assets” means, from time to time, those assets specifically set forth on the report delivered by the Borrower to the Administrative Agent pursuant to Section 6.02(b)(v)
(or, provided no Event of Default or Default has occurred and is continuing, at any other time a detailed report conforming to the report required by 6.02(b)(v) is delivered by Borrower to the Administrative Agent) and which assets have a value, in
the aggregate at any one time, not in excess of $20,000,000 and which assets consist solely of (i) deposit accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for

  

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the benefit of any Loan Party’s salaried employees, (ii) Investments in any Subsidiary or any Joint Venture, (iii) cash, Cash Equivalents or deposit accounts (or the credit
balances thereof) utilized by a Loan Party to collateralize obligations of a Loan Party as account debtor under any letter of credit application (including the letters of credit under the Refinanced Revolving Credit Facility with Wachovia Bank) or
(iv) other deposit accounts used in the Core Businesses, provided that the aggregate value of any cash, Cash Equivalents or deposit accounts in respect of items (i) and (iv) of this definition shall not exceed the lesser of
(A) $10,000,000 and (B) at any time after the date that is six months from the Closing Date, the value from time to time of the daily average balance over the immediately preceding six (6) month period of cash, Cash Equivalents or
deposit accounts attributable to items (i) and (iv) of this definition. 
 “Excluded Subsidiaries”
means (a) the Subsidiaries set forth on Schedule 5.13 as of the Closing Date, and (b) any other Subsidiary designated as such from time to time by Borrower and (except in the case of Subsidiaries that are Joint Ventures formed as Excluded
Assets with notice to the Administrative Agent) consented to by Majority Lenders. 
 “Excluded Taxes” means,
with respect to Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of Borrower hereunder or under any other Loan Document, (a) taxes imposed on or measured by its overall net
income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located
or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by Borrower under Section 11.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 3.0l(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from Borrower with respect to such withholding tax pursuant to Section 3.01 (a). 
 “Executive Order” shall mean Executive Order No. 13224 on Terrorist Financings: - Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism issued on 23rd September, 2001, as amended by Order No. 132684, as so amended. 
 “Existing Environmental Matters” means those Environmental Matters affecting portions of the Aggregate Real Property identified on Schedule 5.17(a). 
 “Existing Secured Indebtedness” means the outstanding Indebtedness on the date of this Agreement secured by the existing
first priority deeds of trust on the CF Property and MF Property, as such Indebtedness may be extended, renewed, refinanced or replaced; provided that (i) the principal amount of any such refinancing does not exceed the principal amount of the
Indebtedness being refinanced (other than the interest rate and fees under such refinanced Indebtedness which may be at a rate consistent with the rates

  

 14 

 
and fees then prevailing in the market for similar Indebtedness for borrowers engaged in the Core Businesses and with similar credit risks as Borrower) and (ii) the material terms and
provisions of any such refinancing (including redemption, prepayment, security, default and subordination provisions) are no less favorable to CF Owner or MF Owner, as applicable, and the Lenders than the Indebtedness being refinanced (other than
the interest rate and fees under such refinanced Indebtedness which may be at a rate consistent with the rates and fees then prevailing in the market for similar Indebtedness for borrowers engaged in the Core Businesses and with similar credit risks
as Borrower). 
 “Existing Secured Indebtedness Collateral Value” means the sum, without duplication,
for the CF Property and the MF Property, of the following amounts: (i) the Net Present Value of the Projected Net Revenues of the CF Property and MF Property (as applicable) minus (ii) the Net Present Value of Total Project Costs of such
CF Property and MF Property (as applicable). Notwithstanding the foregoing, in no event will (i) the Existing Secured Indebtedness Collateral Value for the CF Property or the MF Property exceed the most recent CF/MF Appraised Value, if any,
received by the Majority Lenders with respect to the CF Property or the MF Property, as applicable, and (ii) the Existing Secured Indebtedness Collateral Value of either the CF Property or the MF Property exceed the outstanding principal
balance of the Existing Secured Indebtedness which is secured by such CF Property or MF Property, as applicable . For purposes of this definition of Existing Secured Indebtedness Collateral Value only, in the definitions of “Projected Net
Revenues” and “Total Project Costs”, the term “Eligible Real Property Collateral” shall be deemed replaced with “the CF Property and the MF Property”. 
 “Exit Fee” shall have the meaning assigned to such term in the Fee Letter. 
 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published an such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1.0%) charged to Bank of America, N.A. on such day on such transactions as determined by Administrative Agent.

 “Fee Letter” means the letter agreement dated as of as of the date hereof, between Borrower and Initial
Lender. 
 “Final Map” means the final tract or plat map for each Project, Asset or Phase, as the case
may be, which map shall be in form and content acceptable to Majority Lenders. 
 “Financial Covenants”
means the covenants set forth in Sections 7.15 and 7.16. 
  

 15 

 “Finished Lots” means those portions of the Borrower Real Property for
which Borrower has satisfied the conditions set forth in Section 4.06 and with respect to which Borrower has not yet satisfied all of the conditions set forth in Section 4.07. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which Borrower is
resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied or, if the financial statements required to be delivered pursuant to Section 6.01 are prepared in
accordance with IFRS, IFRS. 
 “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 
 “Group A Projects” shall mean the Eligible Projects that include Group A Property, which Group A Projects are listed on Schedule GAP, which Schedule includes the Real Property
Classifications for the Real Property included in each Group A Project. 
 “Group B Projects” shall mean the
Eligible Projects that include Group B Property, which Group B Projects are listed on Schedule GBP, which Schedule includes the Real Property Classifications for the Real Property included in each Group B Project. 
 “Group A Property” means the Borrower Real Property that meets all of the conditions for Real Property to be included in
the Borrowing Base as of the Closing Date. 
 “Group B Property” means other than the Group A Property,
all Borrower Real Property on the earlier of (i) the Delayed Draw Closing Date, (ii) the Second Term Loan Funding Date or (iii) the date that is sixty (60) days after the Closing Date. 
 “Guarantee” means, as to any Person, any (a) obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or
level of income or cash flow of the primary obligor so as to enable the primary obligor to

  

 16 

 
pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment
or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such
Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the reasonably anticipated liability in respect thereof as determined by the guaranteeing Person
in good faith. The term “Guarantee” as a verb has a corresponding meaning. 
 “Guarantors” means, on
the Closing Date, Parent and, thereafter, each of the Subsidiaries of Parent or Borrower that become a party to the Unconditional Guaranty by execution of a joinder and consented to by Majority Lenders. 
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law. 
 “Homes Under Construction” means Units for which Borrower has satisfied all of the
requirements and conditions set forth in Section 4.07, but less than all of the conditions and requirements set forth in Section 4.08. 
 “Horizontal Improvements” means (i) those certain improvements on the Borrower Real Property (or beyond the boundaries thereof to the extent required by the Entitlements) for the
development of the Borrower Real Property as Units or Amenities (including curbs, grading, storm and sanitary sewers, paving, sidewalks, landscaping, hardscaping, sprinklers, electric lines, gas lines, telephone lines, cable television lines, fiber
optic lines, pipelines and other utilities) necessary to make the Borrower Real Property suitable for Vertical Construction of Units or Amenities, and (ii) any common area improvements to be constructed on the Borrower Real Property (or beyond
the boundaries thereof to the extent required by the Entitlements) or to obtain the Entitlements for the development of the Borrower Real Property as Units or Amenities, all built by the Borrower in compliance with and permitted under all applicable
Laws and Entitlements. 
 “IFRS” means the International Financial Reporting Standards as in effect on the date
hereof and from time to time hereafter, consistently applied. 
 “Improvements” means the improvements made or
to be made on any Real Property from time to time, which shall include all construction and development of the Horizontal Improvements, Vertical Construction, Amenities, homes, and all other infrastructure or housing improvements and related
amenities made in preparation for the development, marketing and sale of Real Property. 
  

 17 

 “Indebtedness” means, without duplication, with respect to any Person
(a) indebtedness or liability for borrowed money, including subordinated indebtedness; (b) obligations evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property or
services, provided, however, that Indebtedness shall not include obligations with respect to options to purchase Real Property that have not been exercised; (d) obligations as lessee under capital leases to the extent that the same would, in
accordance with GAAP, appear as liabilities in such Person’s consolidated balance sheet; (e) current liabilities in respect of unfunded vested benefits under any Pension Plans and incurred withdrawal liability under any Pension Plan;
(f) reimbursement obligations under letters of credit (including contingent obligations with respect to letters of credit not yet drawn upon); (g) obligations under acceptance facilities; (h) all guaranties, endorsements (other than
for collection or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any other Person, or otherwise to assure a creditor against loss;
(i) obligations secured by any Liens on any property of such Person, whether or not the obligations have been assumed; (j) net liabilities under interest rate swap, exchange or cap agreements (valued as the termination value thereof,
computed in accordance with a method approved by the International Swaps and Derivatives Association and agreed to by such Person in the applicable agreement); and (k) all Guarantees of such Person with respect to the foregoing. Indebtedness
shall not include (i) trade accounts payable and accruals incurred in the ordinary course of the Core Businesses so long as such trade accounts payable or accruals are not outstanding for more than ninety (90) days from receipt of an
invoice (unless such trade accounts payable or accruals (A) are being contested in good faith by appropriate proceedings or (B) are for retentions consistent with industry practice and such Person’s past practices, in which case such
ninety day limit shall not apply) are on terms and conditions reasonable and customary in the industry and are not owed to an Affiliate of such Person and (ii) payment and performance and surety bonds, completion guarantees, and other
performance obligations and guaranties with respect thereto incurred in the ordinary course of the Core Businesses so long as such payment and performance and surety bonds, completion guarantees and other performance obligations and guaranties are
on terms and conditions reasonable and customary in the industry . 
 “Indemnified Taxes” means Taxes other
than Excluded Taxes. 
 “Indemnitee” has the meaning specified in Section 11.04(b). 
 “Indentures” means, collectively, (i) that certain Indenture, dated as of March 17, 2003, among Borrower, as
issuer, the guarantors party thereto, and U.S. Bank National Association, as trustee, (ii) that certain Indenture, dated as of February 6, 2004, among Borrower, as issuer, the guarantors party thereto, and U.S. Bank National Association,
as trustee, and (iii) that certain Indenture, dated as of November 22, 2004, among Borrower, as issuer, the guarantors party thereto, and U.S. Bank National Association, as trustee, in each case, as such Indenture may be extended, renewed,
refinanced or replaced in accordance with Section 7.01(e) hereof. 
 “Initial Lender” means ColFin WLH
Funding, LLC. 
 “Initial Term Loan” means, for each Lender, the term loan facility advanced by such Lender on
the Closing Date pursuant to Section 2.01(a). 
  

 18 

 “Initial Term Loan Commitment” means the commitment of a Lender to make or
otherwise fund an Initial Term Loan. The amount of each Lender’s Initial Term Loan Commitment is as set forth on Schedule 2.01 or in the applicable Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 “Intangible Asset” means, with respect to the Loan Parties and as of any date, all unamortized debt discount
and expense, unamortized deferred charges, deferred financing costs, goodwill, patents, trademarks, service marks, trade names, copyrights, write-ups of assets over their carrying value (other than write-ups which occurred prior to the Closing Date
and other than, in connection with the acquisition of an asset, the write-up of the value of such asset to its fair market value in accordance with GAAP on the date of acquisition) and all other items which would be treated as intangibles on the
consolidated balance sheet of the Loan Parties prepared in accordance with GAAP. 
 “Intercompany Subordination
Agreement” means that certain subordination agreement among Administrative Agent, on behalf of the Lenders, and each member of the Consolidated Group, pursuant to which, each member of the Consolidated Group agrees to subordinate any claims
it may have against another member of the Consolidated Group to the Obligations of the Borrower hereunder. 
 “Intercreditor Agreement” means any agreement between the Administrative Agent and/or the Lenders, and the lender, agent or trustee under any Permitted Construction Indebtedness. 
 “Interest Payment Date” means the first Business Day of each calendar month during the term of this Agreement, commencing
on December 1, 2009, and the Maturity Date. 
 “Investment” means, as to any Person, any direct or
indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Securities of another Person, (b) a loan, advance (other than advances with respect to accounts receivable made in the
ordinary course of business on customary credit terms) or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any
partnership or joint venture interest in such other Person (including capital contributions to any Joint Ventures) and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or (c) the purchase or other
acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. 
 “IRS” means the United States Internal Revenue Service. 
 “Joint Venture” means any
Person (other than a Subsidiary) in which Parent, Borrower or any other member of the Consolidated Group holds any Equity Securities (other than Equity Securities issued by a public company and purchased on a recognized stock exchange). 

“Key Management” means William H. Lyon, President and Chief Operating Officer of Parent; Matthew R. Zaist, Vice
President Business Development and Operations of Parent; Richard S. Robinson, Senior Vice President Finance of Parent; and Colin T. Severn, Vice President, Chief Financial Officer, Corporate Controller and Secretary of Parent. 
  

 19 

 “Laguna” means Laguna Big Horn, LLC, a Delaware limited liability company.

 “Land Under Development” means those portions of the Borrower Real Property on which Units will be developed
for which Borrower has satisfied the conditions set forth in Section 4.05 and with respect to which Borrower has not yet satisfied all of the conditions set forth in Section 4.06. 
 “Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines,
regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directives, decrees, policies, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law, rule,
regulation, ordinance, order, code interpretation, judgment, decree, directive, guideline, policy or similar form of decision of any Governmental Authority. 
 “Lead Arranger” means ColFin WLH Funding, LLC. 
 “Lender” has the meaning specified in the introductory paragraph hereto and shall include the Initial Lender so long as such Initial Lender remains a Lender hereunder. 
 “Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify Borrower and Administrative Agent. 
 “Lien” means any recorded or unrecorded, express or implied, written or oral mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, Preemptive Purchase or Lease
Right, Lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any covenant, condition, restriction, lease, easement, right of way or other encumbrance on title to Real Property, and any financing lease having substantially the same economic effect as any of the foregoing). 
 “Loan” means an extension of credit by a Lender to Borrower under Article II or Section 9.04. 
 “Loan Documents” means this Agreement, each Note, the Fee Letter, the Administrative Agent Fee Letter, the
Unconditional Guaranty, Environmental Indemnity, the Security Documents, the Pledge Agreement, the Collateral Certificate, any Intercreditor Agreement, the Intercompany Subordination Agreement and all other documents, instruments, letters and
agreements delivered to Administrative Agent or any Lender pursuant to Article IV and all other documents, instruments, letters and agreements delivered by any Loan Party to Administrative Agent or any Lender in connection with this Agreement or any
other Loan Document on or after the date of this Agreement, including any amendments, consents or waivers, as the same may be amended, restated, supplemented or modified from time to time. 
 “Loan Parties” means, collectively, Borrower and each Guarantor. 
  

 20 

 “Lots” means lots zoned for single- or multi- family residences for sale
into which the subject Borrower Real Property is to be or has been subdivided in compliance with all Laws, as set forth on a Final Map recorded in the Official Records. 
 “Majority Lenders” means (a) prior to the Closing Date, Lenders whose Commitments then exceed fifty percent (50%) of the Total Commitment, and (b) from and after the
Closing Date, the Lenders whose (A) Total Outstandings and (B) remaining Commitments then exceed fifty percent (50%) of the sum of the aggregate Total Outstandings and remaining Total Commitments; provided that the portion of the
Total Outstandings held, or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Majority Lenders. 
 “Make Whole Amount” means, with respect to the payment of any principal amount of the Loans before the Maturity Date, a premium equal to an amount, if positive, of the present value of
all payments (without giving effect to the date on which is required to be mandatorily prepaid) of interest which would become due with respect to such prepaid amount from the date of prepayment thereof through and including the Maturity Date,
discounted at the Applicable Rate. 
 “Material Adverse Effect” means (i) a material adverse change in, or
a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of (a) Parent, (b) Borrower or (c) the Consolidated Group taken as a whole;
(ii) a material impairment of the ability of any Loan Party to perform its obligations under any Loan Document to which it is a party; or (iii) a material adverse effect upon the legality, validity, binding effect or enforceability against
any Loan Party of any Loan Document to which it is a party. 
 “Material Agreements” has the meaning specified
in Section 5.25(a). 
 “Maturity Date” means October 20, 2014. 
 “Maximum Permitted Secured Indebtedness” means (x) if Total Secured Debt is greater than 55% of Total Secured Debt
Collateral Value but less than 60% of the Total Secured Debt Collateral Value on the date of determination, $300 million, or (y) if the Total Secured Debt is 55% or less of the Total Secured Debt Collateral Value on the date of determination,
$340 million; provided, however, under no circumstances shall Maximum Permitted Secured Indebtedness exceed 60% of the Total Secured Debt Collateral Value. 
 “Maximum Rate” has the meaning set forth in Section 11.09. 
 “Mechanics’ Liens” means Liens of carriers, warehousemen, mechanics and materialmen and other like Liens, except to that (i) such Liens arise in the ordinary course of business, (ii) such Liens are being
contested in good faith by appropriate legal proceedings, with all potential liabilities either (a) bonded in a manner satisfactory to Majority Lenders or (b) not in excess of $1,000,000 in the aggregate for Borrower at any time,
(iii) Borrower has demonstrated to Majority Lenders’ satisfaction that the proceedings will conclusively operate to prevent the sale of any part of the Collateral, and (iv) Borrower takes all other actions as required by Majority
Lenders, to prevent the sale of any Collateral to satisfy any such Lien and to prevent impairment of the Collateral. 
  

 21 

 “MF Property” means the Real Property located in Pahrump, Nevada, commonly
known as the Mountain Falls property, as more specifically described on Schedule MF. 
 “MF Owner” means
Mountain Falls, LLC, a Nevada limited liability company and Mountain Falls Golf Course, LLC, a Nevada limited liability company. 
 “Model Home” means a Unit that meets all of the conditions in Section 4.08. 
 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding
five plan years, has made or been obligated to make contributions. 
 “Net Income” means, for any period, the
consolidated net income (or consolidated net loss) of Parent, Borrower and their respective Subsidiaries (other than Excluded Subsidiaries), determined in accordance with GAAP. 
 “Net Present Value” means, with respect to any amount, the net present value as of the date of determination of such amount
using a discount rate equal to the Applicable Discount Rate. 
 “Net Proceeds” shall mean: 
 (a) With respect to any sale of Property by any Person, the aggregate gross consideration received in any form by such Person from such sale
less the sum of (i) the actual amount of the customary and reasonable fees and commissions directly related to such sale that are paid by the seller to Persons other than the seller or any Affiliate or Related Parties of the seller, the
reasonable legal expenses and other costs and expenses directly related to such sale that are paid by the seller and (ii) the amount of any Indebtedness (other than the Obligations) which is secured by such Property and is required to be repaid
or prepaid by the Seller as a result of such sale; 
 (b) With respect to any issuance or incurrence of any Indebtedness by any
Person, the aggregate loan proceeds and other consideration received by such Person from such issuance or incurrence less the sum of the actual amount of the reasonable fees and commissions payable to Persons other than such Person or any
Affiliate of such Person, the reasonable legal expenses and the other customary and reasonable costs and expenses directly related to such issuance or incurrence that are to be paid by such Person; and 
 (c) With respect to any issuance of Equity Securities by any Person, the aggregate capital contribution and other consideration received by
such Person from such issuance less the sum of the actual amount of the reasonable fees and commissions payable to Persons other than such Person or any Affiliate of such Person, the reasonable legal expenses and the other customary and
reasonable costs and expenses directly related to such issuance that are to be paid by such Person. 
  

 22 

 “Net Worth” means, as of any date, the excess of Total Assets over Total
Liabilities. 
 “Note” means a promissory note made by Borrower in favor of a Lender evidencing Loans made by
such Lender, substantially in the form of Exhibit “A” attached hereto and made a part hereof. 
 “Notice of
Borrowing” has the meaning specified in Section 2.01(d). 
 “Obligations” means all advances to,
and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or
to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 
 “Official
Records” means the official real estate records of the county in which any Real Property is located for which a Deed of Trust is being recorded. 
 “Organization Documents” means: (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust
or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization
with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity. 
 “Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or
similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
 “PAPA Obligations” means any obligations affecting Real Property under any recorded or unrecorded payment, participation,
development and/or performance agreements, buyback rights, bulk sale restriction agreements, repurchase options, rights of first refusal, deeds of trust securing any of the same, and /or other similar agreements, obligations or encumbrances.

 “Parent” means William Lyon Homes, a Delaware corporation. 
 “Participant” has the meaning specified in Section 11.06(d). 
 “Patriot Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as the USA Patriot Act). 
  

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 “PBGC” means the Pension Benefit Guaranty Corporation. 
 “PCI Release” has the meaning set forth in Section 8.01(b). 
 “PCI Released Property” has the meaning set forth in Section 8.01(b). 
 “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA),
other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a
multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 
 “Permitted Construction Indebtedness” means Indebtedness incurred by Borrower from a Revolver Lender in accordance with Section 8.04 and provided that such Indebtedness
(i) shall be on terms and conditions reasonably satisfactory to the Majority Lenders, (ii) shall be secured solely by the applicable PCI Released Property which constitutes Finished Lots, Homes Under Construction and/or Model Homes (with
ownership of the PCI Released Property required to be retained by Borrower throughout construction and marketing and until ultimate sale), (iii) is not for (A) any acquisition costs of any Real Property, including the PCI Released Property
or other land that would become part of the Phase, Asset or Project that includes the PCI Released Property (except that reasonable land draws are permitted for use in Vertical Construction of the PCI Released Property), (B) Horizontal
Improvements or (C) payment of any of the fees or other amounts required to be paid in connection with obtaining any Entitlements necessary for any of the PCI Released Property to become Finished Lots, (iv) complies with the limitations in
this Agreement on Maximum Secured Indebtedness, and (v) does not (a) contain provisions (including financial covenants, coverage ratios and restrictions on debt, transfers and encumbrances which are not complied with as a result of the
existence of (or Borrower’s compliance with) any Loan or Loan Document or (b) prohibit any Net Proceeds of such Indebtedness (and the Net Proceeds of any sales of the PCI Released Property after any required payments on such Indebtedness)
from being held in an account which is pledged to Lenders and is subject to a Control Agreement in favor of Lenders. 
 “Permitted Construction Indebtedness Collateral Value” means, as of any date, the sum of the Appraised Values of the PCI Released Property owned by Borrower on the date of determination as reflected in the Revolver
Appraisals. 
 “Permitted Exceptions” means (i) all items shown in Schedule B Part 1 of the Title Policy;
(ii) Liens granted to Administrative Agent to secure the Obligations; and (iii) all other exceptions approved in writing by Majority Lenders. 
 “Permitted Holders” means General William Lyon, his wife, his lineal descendants and his other close family members, any corporation, limited liability company or partnership in which any
of the foregoing has voting control and is the direct and beneficial owner of a majority of the Equity Interests and any trust or estate planning device for the benefit of him, his wife, his lineal descendants or his other close family members.

 “Permitted Indebtedness” has the meaning specified in Section 7.01. 
  

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 “Permitted Liens” has the meaning specified in Section 7.02.

 “Permitted Reinvestments” means the purchase of assets (other than securities, unless such securities
represent Equity Securities in an entity engaged solely in a Core Business, such entity becomes a Loan Party and Parent or Borrower acquires Control of such entity) to be used by the Loan Parties in the Core Businesses. 
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity. 
 “Personal Property” means any personal property or
asset, whether tangible or intangible. 
 “Phase” means the Aggregate Real Property consisting of portions of
Assets that consist of a group of Lots or Units commonly marketed with a marketing scheme, or portions of Assets including more than one such group. 
 “Plan” means any Pension Plan, any “employee pension plan” (as such term is defined in Section 3(2) of ERISA) that is subject to Section 412 of the Code (other than a
Multiemployer Plan) and that is established by Borrower or any ERISA Affiliate, or any “employee welfare plan” (as such term is defined in Section 3(1) of ERISA) established by Borrower that provides for post-employment health
benefits other than as required by Sections 601 et seq. of ERISA (commonly known as COBRA) or as required by any similar Laws. 
 “Plans, Drawings and Specifications” means the plans, drawings and specifications for the construction of the Horizontal Improvements, Vertical Construction and/or Units, as applicable, that have been approved by Majority
Lenders pursuant to this Agreement. 
 “Pledge Agreement” means that certain Pledge Agreement, dated as of the
date hereof, among Parent, Borrower and Administrative Agent. 
 “Preemptive Purchase or Lease Right” means any
option, put, right of first or last refusal, right of first or last offer, right of first or last negotiation, or any other preemptive rights to purchase, sell or lease any Real Property. 
 “Project” means (a) an Asset which is not part of a group in clause “(b)” of this sentence or (b) a
group of two (2) or more Assets in the same geographic area (which in the case of either (a) or (b) share(s) common areas and Amenities). 
 “Project Eligibility Request” means each and every request by Borrower for the Borrower Real Property in a Project to be Eligible Real Property Collateral for inclusion in the Borrowing
Base, which request shall be in the form attached hereto as Exhibit “F” 
 “Projected Net Revenues”
means, with respect to any Eligible Real Property Collateral, the Net Proceeds estimated by the Borrower in good faith to be received by the Borrower after the date of determination from the sale of the Eligible Real Property Collateral or interests
therein. In determining Projected Net Revenues, (i) Net Proceeds from the sale of Eligible Real Property Collateral subject to a Purchase Contract shall not exceed the contracted sales price (net of customary costs and expenses), (ii) Net
Proceeds from the sale of Eligible Real Property Collateral that are being offered for sale by the Borrower shall not exceed the current

  

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offer price (net of customary costs and expenses), (iii) Net Proceeds shall be adjusted to take into account as a deduction from estimated Net Proceeds any projected CFD Obligations, PAPA
Obligations, and reasonable and customary anticipated costs of sale related to sales of any Real Property, (iv) Model Homes included as part of the Eligible Real Property shall be assumed to be held until substantially all other Units of the
same type as the Model Home in the Asset are projected to be sold, (v) the amount and timing of receipt of Projected Net Revenues shall be prepared by Borrower in good faith based on assumptions that it believes to be reasonable on the date of
determination, and (vi) the amount and timing of receipt of Projected Net Revenues shall be consistent with the most recent Certified Net Cash Flow Report delivered by Borrower to the Administrative Agent under the Loan Documents with such
adjustments necessary to reflect subsequent changes in actual sales prices and absorption rates achieved at the various Assets with Eligible Real Property Collateral. Projected Net Revenues as of the date of any Borrowing Base Report shall be
reflected on the Certified Net Cash Flow Report for the Eligible Real Property Collateral. 
 “Projected Total Project
Cost” means, with respect to any Eligible Real Property Collateral, the Total Project Cost estimated by the Borrower in good faith to be paid after the date of determination with respect to the Eligible Real Property Collateral. In
determining Projected Total Project Costs, (i) the amount and timing of the payment of Total Project Costs shall be prepared by Borrower in good faith based on assumptions that it believes to be reasonable at the date of determination,
(ii) the amount and timing of the payment of Total Project Costs shall be consistent with the most recent Certified Net Cash Flow Report delivered by Borrower to the Administrative Agent under the Loan Documents with such adjustments necessary
to reflect changes in the actual cost of materials and workmanship and absorption rates achieved at the various Projects or Assets as the case may be with Eligible Real Property Collateral. Projected Total Project Costs as of the date of any
Borrowing Base Report shall be reflected on the Certified Net Cash Flow Report for the Eligible Real Property Collateral. 
 “Property” means Real Property and Personal Property. 
 “Property Entity” means CF
Owner and MF Owner. 
 “Purchase Contract” means any purchase and sale agreement or other agreement entered
into by Borrower, as seller, and a purchaser for the purchase and sale of any Borrower Real Property. 
 “Real
Property” means any interest in land including any Improvements situated thereon. 
 “Real Property
Classifications” means Unentitled Land, Unimproved Land, Land Under Development, Finished Lots, Homes Under Construction, and Model Homes. 
 “Refinanced CBT, CNB and JPM Revolving Credit Agreements” means the Refinanced Revolving Credit Agreements between Borrower and each of California Bank & Trust, California
National Bank and JPMorgan Chase. 
 “Refinanced Revolving Credit Agreements” means those six
(6) revolving credit agreements of Borrower (one (1) with each of California Bank & Trust, California National Bank, Comerica Bank, Guaranty Bank, JPMorgan Chase (as successor-in-interest to Bank One) and Wachovia Bank) that will
be refinanced with the proceeds hereof on the Closing Date. 
  

 26 

 “Refinanced Wachovia Revolving Credit Agreement” means the Refinanced
Revolving Credit Agreement between Borrower and Wachovia Bank. 
 “Related Fund” means with respect to any
Lender which is a fund (or in which a fund has a beneficial ownership interest of at least twenty percent (20%)) that is allowed or permitted under its Organizational Documents to make or invest in loans, any other fund that is allowed or
permitted by its Organizational Documents to make or invest in loans and that is managed by the same investment advisor as such Lender or by an Affiliate of such Lender or such investment advisor. 
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents and advisors of such Person and of such Person’s Affiliates. 
 “Reportable Event” means
any of the events set forth in Section 4043(c) of ERISA, other than events for which the thirty (30) day notice period has been waived. 
 “Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer or the general counsel of a Loan Party or any Person designated by a Responsible
Officer to act on behalf of a Responsible Officer; provided that such designated Person may not designate any other Person to be a Responsible officer. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 “Restricted Cash” means all cash and Cash Equivalents of the Loan Parties allocated for expenditure or
Distribution held as reserves for the Permitted Indebtedness described in Section 7.01(b) or the Permitted Liens described in Sections 7.02(a), (b) and (c), held as reserves against any other claim, judgment and good faith contests or held
as Customer Deposit Liabilities or otherwise characterized as a deposit. 
 “Revolver Appraisal” means an
appraisal of PCI Released Property as described in the definition of “Revolver Lender.” 
 “Revolver
Lender” means one or more banks with FDIC-insured deposits, that are making a loan to Borrower constituting Permitted Construction Indebtedness pursuant to loan documents substantially similar to Borrower’s Refinanced CBT, CNB and JPM
Revolving Credit Agreements as of the date of this Agreement (other than the changes thereto requested by the Lenders as provided for in this Agreement) pursuant to which: (i) appraisals of the PCI Released Property securing the loan are
required at least annually which meet the requirements of Section 6.16(j)(i) and which take into account the reductive effect of any CFD Obligations, PAPA Obligations and the reasonable and customary anticipated costs of sale related to the PCI
Released Property, and any impairment of such PCI Released Property and (ii) PAPA Obligations are covered by a subordination agreement in the Revolver Lender’s favor reasonably acceptable to Majority Lenders. (For avoidance of doubt, the
relevant appraisals shall be (and under appraisal procedures)

  

 27 

 
in form and substance satisfactory to the Revolver Lender in its sole and absolute discretion (instead of the Majority Lenders) and the classifications of Borrower Real Property and methods of
valuation in Section 6.16(j) shall be used without regard to the fact that the PCI Released Property does not technically constitute Eligible Real Property Collateral under the requirements of Article IV for such Real Property Classifications).

 “Rules” has the meaning specified in Section 11.16(b). 
 “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal
functions. 
 “Second Term Loan” means, for each Lender, the term loan facility, if any, advanced by such
Lender on the Second Term Loan Funding Date pursuant to Section 2.01(c). 
 “Second Term Loan Commitment”
means the commitment of a Lender to make or otherwise fund a Second Term Loan. The amount of each Lender’s Second Term Loan Commitment is as set forth on Schedule 2.01 or in the applicable Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable. 
 “Second Term Loan Commitment Termination Date” means 1:00 p.m. (Los
Angeles time) on the date that is one hundred eighty (180) days after the Closing Date. 
 “Second Term Loan
Funding Date” means the date on which the Conditions to Second Term Loan Funding have been met and the Lenders have each advanced their Second Term Loan Commitment. In no event shall the Second Term Loan Funding Date be later than the
Second Term Loan Commitment Termination Date. 
 “Secured Debt” means, as of any date, the Indebtedness
outstanding under the Loan Documents, the Permitted Construction Indebtedness and the Existing Secured Indebtedness. 
 “Secured Intercompany Loan” means a Credit Advance made by Borrower in accordance with the terms and conditions of Section 7.12 or Section 7.13. 
 “Security Agreement” means that certain Security Agreement, dated as of the date hereof, among Borrower, Parent, the other
Guarantors party thereto, if any, and Administrative Agent, on behalf of the Lenders, together with any documents, supplements or agreements contemplated thereby, and any amendment or supplement thereto. 
 “Security Documents” shall mean and include the Security Agreement, each Deed of Trust, each Control Agreement and all
other instruments, agreements, certificates, opinions and documents (including Uniform Commercial Code financing statements, fixture filings and landlord waivers) delivered to Administrative Agent or any Lender in connection with any Collateral or
to secure the Obligations or the obligations of Guarantor under the Loan Documents. 
 “Senior Unsecured Notes”
means, collectively, the notes issued pursuant to the Indentures, as such Indentures may be extended, renewed, refinanced or replaced. 
  

 28 

 “Standard Retail Sale” has the meaning set forth in Section 8.01(b).

 “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other
business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Borrower. 
 “Tangible Net Worth” means, as of any date, the Net Worth less the net book value (after deducting reserves applicable thereto) of all of the Intangible Assets. 
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 “Tentative Map” means the tentative tract map for each Project, Asset or Phase, as the case may be. 
 “Title Company” means Fidelity National Title Insurance Company or Chicago Title Insurance Company. 
 “Title Policy” means Extended Coverage American Land Title Association loan policies of title insurance (2006 form with the creditors’ rights exception and arbitration provisions deleted and with the endorsements
listed on Schedule TP and such other endorsements as may be reasonably required by Majority Lenders) for each Deed of Trust, and which shall provide coverage (including mechanics’ lien coverage) satisfactory to Majority Lenders and insure the
Deed of Trust as a first Lien on the Project, subject only to Permitted Exceptions. 
 “Total Assets” means, as
of any date, all assets of the Loan Parties, determined in accordance with GAAP less (without duplication) (1) any assets attributable Equity Securities of the Excluded Subsidiaries held by the Loan Parties and (2) all write-ups subsequent
to the Closing Date in the book value of any asset owned by the Loan Parties. 
 “Total Closing Date
Commitment” shall mean, at any time, One Hundred Thirty One Million Dollars ($131,000,000) or such lesser amount to which the same is so reduced, in accordance with the terms hereof, and in effect at such time. 
 “Total Commitment” shall mean, at any time, Two Hundred Six Million Dollars ($206,000,000) or such lesser amount to which
the same is so reduced, in accordance with the terms hereof, and in effect at such time. 
 “Total Delayed Draw Closing
Date Commitment” shall mean Zero Dollars ($0). 
 “Total Initial Draw Closing Date Commitment” shall
mean One Hundred Thirty One Million Dollars ($131,000,000). 
  

 29 

 “Total Liabilities” means, as of any date, all consolidated liabilities of
the Loan Parties, as determined in accordance with GAAP. 
 “Total Outstandings” means, as of any date, the
aggregate outstanding amount of all Loans, including accrued but unpaid interest and fees and any Exit Fee or Make Whole Amount, to the extent that any Exit Fee or Make Whole Amount due and owing on such date, under the Loan Documents. 

“Total Project Costs” with respect to each parcel of Unimproved Land (to the extent that it is not a Lot or Unit), Lot
or Unit included as part of Eligible Real Property Collateral as of any date means the sum of the following costs and expenses to be paid following the date of determination: (x) all acquisition and other land costs incurred to acquire or
upgrade the land constituting part of such parcel of Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit and (y) all costs to be incurred for the construction, marketing and sale of any Improvements on such parcel of
Unimproved Land (to the extent that it is not a Lot or Unit), Lot or Unit, including those costs and expenses incurred for direct construction, house fees, landscape, consultants, indirect construction, warranty costs, property taxes, miscellaneous
financing costs, common area costs, model upgrades, miscellaneous capitalized costs, model operations and advertising, direct selling expense, general and administrative expenses, design center income and other, but excluding interest expense. Total
Project Costs shall be estimated and categorized in a manner consistent with the Asset cash flow schedules provided to the Majority Lenders in connection with the negotiation and execution of the Loan Documentation. 
 “Total Second Term Loan Commitment” shall mean, at any time, Seventy Five Million Dollars ($75,000,000) or such lesser
amount to which the same is so reduced, in accordance with the terms hereof, and in effect at such time. 
 “Total
Secured Debt” means, as of any date, the sum of all Indebtedness of each Loan Party and the Property Entities constituting Secured Debt. 
 “Total Secured Debt Collateral Value” means, as of any date, the sum of (x) the Eligible Real Property Collateral Valuation, (y) the Permitted Construction Indebtedness
Collateral Value plus (z) the Existing Secured Indebtedness Collateral Value. 
 “Unconditional Guaranty”
means the Unconditional Guaranty made by the Guarantors in favor of Administrative Agent and the Lenders, substantially in the form of Exhibit “D” attached hereto and made a part hereof. 
 “Unentitled Land” means Real Property (i) with respect to which all conditions set forth in Section 4.04 for
inclusion in the Borrowing Base have not been satisfied, (ii) which are not designated for development into residences for sale to the public but are reserved as open space or as streets and common areas to be dedicated to homeowners’
associations and other Governmental Authorities, or (iii) that are Amenities (including golf courses). 
 “Unfunded
Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year. 
  

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 “Uniform Commercial Code” shall mean the Uniform Commercial Code as the
same may, from time to time, be in effect in the State of California; provided, however, in the event that, by reason of mandatory provisions of applicable Law, any or all of the attachment, perfection or priority of the Administrative Agent’s
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of California, the term “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions. 
 “Unimproved Land” means those portions of the Borrower Real Property on which Units will be developed for which Borrower
has satisfied the conditions set forth in Section 4.04 and with respect to which Borrower has not yet satisfied all of the conditions set forth in Section 4.05. 
 “United States” and “U.S.” mean the United States of America. 
 “Upfront Fee” shall have the meaning assigned to such term in the Fee Letter. 
 “Units” means single- or multi- family “for sale” residences whether Vertical Construction thereof has commenced or been completed, wholly owned held by Borrower for sale in the
ordinary course of business, and in which the rights of ownership and occupancy are to be sold by Borrower other than on a time-sharing or periodic basis, and each Unit shall include the Lot that the Unit has been or will be built upon. 

“Unrestricted Cash” means all cash and Cash Equivalents of the Loan Parties which is not Restricted Cash. 
 “Vertical Construction” means the vertical construction, after all Entitlements for such construction including the
Building Permit has been obtained, of Units or Amenities on the Borrower Real Property by Borrower in compliance with and permitted under all applicable Laws and Entitlements. 
 “Whitney Ranch” means Whitney Ranch Village 5, LLC, a Delaware limited liability company. 
 “WL Southwest” means William Lyon Southwest, Inc., an Arizona corporation. 
 1.02 OTHER INTERPRETIVE PROVISIONS. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document: 
 (a) The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any organization document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such

  

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amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors
and assigns, (iii) the words “herein,” “hereof and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular
provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear,
(v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights. 
 (b) In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and
including.” 
 (c) Section headings herein and in the other Loan Documents are included for convenience of reference only
and shall not affect the interpretation of this Agreement or any other Loan Document. 
 1.03 ACCOUNTING TERMS. 
 (a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial
data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein. 
 (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either Borrower or Majority Lenders shall so request, Administrative Agent, the
Lenders and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of Majority Lenders); provided that, until so amended,
(i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) Borrower shall provide to Administrative Agent and the Lenders financial statements and other documents required
under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
 1.04 ROUNDING. Any financial ratios required to be maintained by Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding- up if there is no
nearest number). 
  

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 1.05 TIMES OF DAY. Unless otherwise specified, all references herein to times of day shall
be references to Pacific time (daylight or standard, as applicable). 
 ARTICLE II. 
 CREDIT EXTENSION 
 2.01 LOANS. 
 (a) Closing Date Term Loan. Subject to the terms and conditions set
forth herein, including the terms and conditions of Section 4.01, each Lender severally agrees to make, on the Closing Date, an Initial Term Loan to Borrower in an amount equal to such Lender’s Initial Term Loan Commitment. The Initial
Term Loans are not revolving commitments and Borrower shall have no right to re-borrow any amounts repaid hereunder. Each Lender’s Initial Term Loan Commitment shall terminate immediately and without further action on the earlier of
(i) the Closing Date after giving effect to the funding of such Lender’s Initial Term Loan Commitment on such date and (ii) October 23, 2009 if the conditions precedent to the Initial Term Loans have not been fulfilled on or
before such date. The aggregate amount all Initial Term Loans shall not exceed the Total Initial Draw Closing Date Commitment. 
 (b) Delayed Draw Term Loan. Subject to the terms and conditions set forth herein, including the terms and conditions of Section 4.02, each Lender severally agrees to make, on or before the Delayed Draw Commitment Termination Date, a
Delayed Draw Term Loan to Borrower in an amount equal to such Lender’s Delayed Draw Term Loan Commitment. The Delayed Draw Term Loans are not revolving commitments and Borrower shall have no right to re-borrow any amounts repaid hereunder. Each
Lender’s Delayed Draw Term Loan Commitment shall terminate immediately and without further action on the earlier to occur of (i) the making of the Delayed Draw Term Loan by such Lender, and (ii) the Delayed Draw Commitment Termination
Date. The aggregate amount all Delayed Draw Term Loans shall not exceed the Total Delayed Draw Closing Date Commitment and the aggregate amount of the Initial Term Loans and the Delayed Draw Term Loans shall not exceed the Total Closing Date
Commitment. 
 (c) Second Term Loan. Subject to the terms and conditions set forth herein, including the terms and conditions of
Section 4.03, each Lender severally agrees to make, on or before the Second Term Loan Commitment Termination Date, a Second Term Loan to Borrower in an amount equal to such Lender’s Second Term Loan Commitment. The Second Term Loans are
not revolving commitments and Borrower shall have no right to re-borrow any amounts repaid hereunder. Each Lender’s Second Term Loan Commitment shall terminate immediately and without further action on the earlier to occur of (i) the
making of the Second Term Loan by such Lender, and (ii) the Second Term Loan Commitment Termination Date. Total aggregate amount of all Second Term Loans shall not exceed the Total Second Term Loan Commitment and the aggregate amount of the
Initial Term Loans, Delayed Draw Term Loans and Second Term Loans shall not exceed to the Total Commitment. 
  

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 (d) Borrowing Mechanics. For each Credit Extension requested by Borrower hereunder, Borrower
shall provide written notice to Administrative Agent (“Notice of Borrowing”) no less than fifteen (15) Business Days before the requested funding date of such Credit Extension. 
 (e) Purpose. The Borrower may use the proceeds of the Initial Term Loans to (i) repay in full its existing Indebtedness under the
Refinanced Revolving Credit Agreements, (ii) pay certain fees and expenses incurred in connection with the transactions contemplated hereby and (iii) provide for working capital and other general corporate purposes all in accordance with
the “Sources and Uses” description attached as Schedule 2.01. The proceeds of the Delayed Draw Term Loan and Second Term Loan shall otherwise be used to finance capital expenditures of Borrower and to provide for working capital
needs for the Core Businesses of Borrower in a manner consistent with the provisions of this Agreement and for other general corporate purposes, including the acquisitions and Investments permitted under Sections 7.03, 7.04 and 7.05, in each case
consistent with the most recent Annual Budget delivered to Administrative Agent. 
 2.02 [RESERVED]. 
 2.03 PREPAYMENTS. 
 (a) Prepayments Generally. Notwithstanding anything to the contrary, express or implied, in this Agreement or otherwise, upon the prepayment of any Loan (whether such prepayment is an optional prepayment or a mandatory prepayment, including
a prepayment upon acceleration), the Borrower shall pay to Administrative Agent for the benefit of the Lender that made such Loan all accrued but unpaid interest and fees to the date of such prepayment on the amount prepaid, the Make Whole Amount
and Exit Fee with respect thereto, and any and all other amounts which may be payable hereunder and under the other Loan Documents. 
 (b) Voluntary Prepayments. The Borrower may, upon notice to Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part; provided that (i) such notice must be received by Administrative Agent not
later than 12:00 noon fifteen (15) days prior to any date of prepayment; and (ii) any prepayment of Loans shall be in a minimum principal amount of $5,000,000 or a whole multiple of $5,000,000 in excess thereof, if less, the entire
principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment. Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s
Applicable Percentage of such prepayment. If such notice is given by Borrower, Borrower shall make such prepayment and the payment amount specified in such notice, together with the Make Whole Amount and Exit Fee as described in
Section 2.03(e), shall be due and payable on the date specified therein. Each such prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages. 
 (c) Mandatory Prepayments. Borrower shall prepay the Loans as follows: 
 (i) if any member of the Consolidated Group engages in an Asset Sale, Borrower and/or Parent shall, or shall cause such
member of the Consolidated Group to, no later than three hundred thirty (330) days following the consummation thereof, and so

  

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long as (i) no Default or Event of Default shall have occurred and be continuing and (ii) Borrower demonstrates, to the satisfaction of Majority Lenders, it is in compliance with the
Financial Covenants (both before and after giving effect to such Asset Sale) reinvest the Net Proceeds from such Asset Sale in Permitted Reinvestments; provided that during such three hundred thirty (330) day period, Borrower deposits such Net
Proceeds into a deposit account that is subject to a first in Lien favor of Administrative Agent and which is the subject of a Control Agreement. Immediately upon any reinvestment of Net Proceeds from an Asset Sale in a Permitted Reinvestment,
Borrower shall deliver proof, reasonably satisfactory to Administrative Agent, acting at the direction of Majority Lenders, that such Net Proceeds have been so reinvested. If at any time after the Closing Date, the Net Proceeds from Asset Sales that
have not been reinvested in a Permitted Reinvestment within three hundred thirty (330) days from the relevant Asset Sale exceeds $10,000,000, such excess shall be paid over to Administrative Agent for the benefit of the Lenders as a mandatory
prepayment of the Loans in accordance with this Section 2.03(c) immediately upon such Net Proceeds exceeding $10,000,000. 
 (ii) If on any date the Total Outstandings exceed the Borrowing Base, Borrower shall make a mandatory prepayment on the Loans in the amount of such excess within five (5) Business Days. 

(iii) If on any date, the Total Secured Debt exceeds the Maximum Permitted Secured Indebtedness, Borrower shall make a
mandatory prepayment on the Loans in the amount of such excess within five (5) calendar days; provided, however, Borrower shall not be required to make such mandatory prepayment to the extent, during such five (5) Business Day period,
Borrower provides evidence reasonably acceptable to the Majority Lenders, that it has reduced the total Indebtedness outstanding under the Existing Secured Indebtedness or the Permitted Construction Indebtedness such that Total Secured Debt is equal
to or is less than the Maximum Permitted Secured Indebtedness by the end of such five (5) Business Day period. 
 Any prepayment of the
Loans in accordance with this Section 2.03(c) shall concurrently reduce each Lender’s obligation to fund any further Loans hereunder on a dollar for dollar basis. 
 (d) Lenders’ Prepayment Option. Notwithstanding anything to the contrary in this Agreement, at the written direction of Majority
Lenders given to Borrower at least ninety (90) days before payment of all or any portion of the outstanding principal balance under the Indentures or no later than five (5) Business Days after a written notice by Borrower to Administrative
Agent and each Lender of intent to prepay, Borrower shall make a mandatory prepayment of the Loans in an amount which bears the same proportionate relationship to the Total Outstandings as the prepayment or payment on the Indentures bears to the
total outstanding principal balances on the Indentures or such lesser amount as Majority Lenders may elect in writing (e.g. if the repayment of principal under the Indentures is twenty percent (20%) of the total outstanding principal amount
under all of the Indentures, then the mandatory prepayment requested by Majority Lenders may be an amount up to twenty percent (20%) of the Total Outstandings). All prepayments pursuant to this Section 2.03(d) shall be made by Borrower no
less than thirty (30) days before the date of such prepayment or payment on the Indentures. In furtherance of the foregoing, Borrower shall give Administrative Agent and each Lender at least one hundred twenty (120) advance written notice
of any payment of principal under the Indentures or at least eight (8)

  

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Business Days advance written notice of any prepayment of principal under the Indentures. In the event that Borrower has not received, in connection with a repayment, notice from Majority Lenders
by such ninetieth day (or in the event of a prepayment within the five (5) Business Day response period provided above), Borrower shall provide a notice to the Administrative Agent and each Lender that it has failed to receive such notice and
the Lenders shall have an additional ten (10) days from receipt (in the event of a repayment) or two (2) Business Days from receipt (in the event of a prepayment) of such notice to require a prepayment of the Loans in accordance with the
terms of this Section. Any prepayment pursuant to this Section 2.03(d) shall not be subject to the Make Whole Amount, but shall be subject to the Exit Fee and all other amounts due and payable hereunder. 
 (e) Except as provided in Section 2.03(d), if required by Majority Lenders (which prepayments under Section 2.03(d) are not
subject to the Make Whole Amount), in the event of any other prepayment of the Loans, whether in whole or in part and whether voluntary or involuntary due to a default or otherwise, or upon acceleration, Borrower shall pay to Administrative Agent
for the pro rata account of the Lenders, the Make Whole Amount and to the account of the Initial Lender the Exit Fee. The Make Whole Amount and Exit Fee shall be applicable to all prepayments including any amounts paid if an Event of Default exists.
The Make Whole Amount and the Exit Fee shall be in addition to all other amounts due and payable hereunder. 
 2.04 REPAYMENT OF
LOANS. Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Loans outstanding on such date, together with all accrued and unpaid interest and all other amounts due and payable hereunder and under the other Loan
Documents, including the Exit Fee. 
 2.05 INTEREST. 
 (a) Subject to the provisions of subsection (b) below, each Loan shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the Applicable Rate. 
 (b) (i) If any amount of principal or
interest of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a rate per annum at all times equal to the Default
Rate and Borrower shall pay a late fee equal to five percent (5.0%) of such late payment of principal or interest, in each case, to the fullest extent permitted by applicable Laws. 
 (ii) If any amount (other than principal or interest of any Loan) payable by Borrower under any Loan Document is not paid
when due, whether at stated maturity, by acceleration or otherwise, then upon the request of Majority Lenders, such amount shall thereafter bear interest at a rate per annum at all times equal to the Default Rate and, if requested by Majority
Lenders, Borrower shall pay a late fee equal to five percent (5.0%) of such late payment, in each case, to the fullest extent permitted by applicable Laws. 
  

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 (iii) Upon the request of Majority Lenders, while any Event of Default
exists, Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 
 (iv) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon
demand. 
 (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at
such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 

2.06 FEES. 
 (a) Borrower shall pay (i) to Initial Lender the fees in the amount and at the times designated in the Fee Letter, and (ii) to Administrative Agent the fees in the amount and at the times designated in the Administrative Agent Fee
Letter. Once paid, such fees shall not be refundable for any reason whatsoever. 
 (b) Borrower shall pay to the Lenders such
fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Once paid, such fees shall not be refundable for any reason whatsoever. 
 2.07 COMPUTATION OF INTEREST AND FEES. For all Loans, all computations of fees and interest shall be made on the basis of a 365-day year, or
a 366-day year (as applicable), and actual days elapsed. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid. Each
determination by Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 2.08 EVIDENCE OF DEBT. The Credit Extension made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by Administrative Agent in the ordinary course of
business. The accounts or records maintained by Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to Borrower and the interest and payments thereon. Any failure
to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records
maintained by any Lender and the accounts and records of Administrative Agent in respect of such matters, the accounts and records of Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through
Administrative Agent, Borrower shall execute and deliver to such Lender (through Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and
endorse thereon the date, amount and maturity of its Loans and payments with respect thereto. 
  

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 2.09 PAYMENTS GENERALLY; ADMINISTRATIVE AGENT’S CLAWBACK. 
 (a) General. All payments to be made by Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or
setoff. Except as otherwise expressly provided herein, all payments by Borrower hereunder shall be made to Administrative Agent, for the account of the respective Lenders to which such payment is owed, at Administrative Agent’s Office in
Dollars and in immediately available funds not later than 1:00 p.m. on the date specified herein. Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment
in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by Administrative Agent after 1:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall
continue to accrue. If any payment to be made by Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as
the case may be. 
 (b) Payments by Borrower; Presumptions by Administrative Agent. Unless Administrative Agent shall have
received notice from Borrower prior to the date on which any payment is due to Administrative Agent for the account of the Lenders that Borrower will not make such payment, Administrative Agent may assume that Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to Administrative Agent
forthwith on demand the amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to Administrative
Agent, at the Federal Funds Rate. 
 A notice of Administrative Agent to any Lender or Borrower with respect to any amount owing
under this subsection (b) shall be conclusive, absent manifest error. 
 2.10 SHARING OF PAYMENTS BY LENDERS. If any Lender
shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it, resulting in such Lender’s receiving payment of a proportion of the aggregate
amount of such Loans or participations and accrued interest thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify Administrative Agent of such fact, and
(b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them, provided that: 
 (i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest; and 
 (ii) the provisions of this
Section 2.10 shall not be construed to apply to (x) any payment made by Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the

  

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assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to Borrower or any Subsidiary thereof (as to which the provisions of this Section shall
apply). 
 Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law,
that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan
Party in the amount of such participation. 
 2.11 SECURITY. 
 (a) Security Documents. The Loans, together with all other Obligations, shall be secured by the Liens granted by the Borrower and the
Guarantors under the Security Documents. All obligations of a Guarantor under the Loan Documents shall be secured by the Liens granted by such Guarantor under the Security Documents. 
 (b) Further Assurances. The Borrower shall deliver, and shall cause each Guarantor to deliver, to Administrative Agent such additional
mortgages, deeds of trust, security agreements, lessor consents and estoppels (containing appropriate mortgagee and lender protection language), Control Agreements and other instruments, agreements, certificates, opinions and documents (including
Uniform Commercial Code financing statements, fixture filings and landlord waivers) as Administrative Agent or Majority Lenders may reasonably request to: 
 (i) grant, perfect, maintain, protect and evidence security interests in favor of Administrative Agent, for the benefit of Administrative Agent and the Lenders, in any or all present and future Real
Property and Personal Property of the Borrower and the Guarantors (other than (x) Excluded Assets and (y) “Excluded Property,” as defined in the Security Agreement) prior to the Liens or other interests of any Person, except for
Permitted Liens; and 
 (ii) Otherwise establish, maintain, protect and evidence the rights provided to the
Administrative Agent, for the benefit of Administrative Agent and the Lenders, pursuant to the Security Documents. 
 The Borrower shall fully
cooperate with the Administrative Agent and the Lenders and perform all additional acts reasonably requested by the Administrative Agent or any Lender to effect the purposes of this Section 2.11. 
 ARTICLE III. 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 3.01 TAXES. 
 (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of Borrower hereunder or under any other Loan Document
shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if Borrower shall be required by applicable law to deduct any Indemnified Taxes (including any Other Taxes)

  

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from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under
this Section 3.01(a)) Administrative Agent or Lender, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
 (b) Payment of
Other Taxes by Borrower. Without limiting the provisions of subsection (a) above, Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c) Indemnification by Borrower. Borrower shall indemnify Administrative Agent and each Lender, within five (5) days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by Administrative Agent or such Lender, as the case
may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to Borrower or by a Lender (with a copy to Administrative Agent), or by Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by Borrower to a
Governmental Authority, Borrower shall deliver to Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to Administrative Agent. 
 (e) Status of Lenders. Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the jurisdiction in which Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document
shall deliver to Borrower (with a copy to Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by Borrower or Administrative Agent, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by Borrower or Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by Borrower or Administrative Agent as will enable Borrower or Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. 
 Without limiting the generality of the foregoing, in the event that Borrower is resident for tax purposes in the United States, any Foreign
Lender shall deliver to Borrower and Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of Borrower or Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable: 
 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty
to which the United States is a party, 
  

 40 

 (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

 (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under
section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower within the
meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881 (c) (3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or

 (iv) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in
United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit Borrower to determine the withholding or deduction required to be made. 
 (f) Treatment of Certain Refunds. If Administrative Agent, or any Lender determines, in its sole discretion, that it has received a refund
of any Taxes or Other Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section, it shall pay to Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of Administrative Agent, and such Lender, as the case may be,
and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that Borrower, upon the request of Administrative Agent, or such Lender, agrees to repay the amount paid over to
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to Administrative Agent or such Lender in the event Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This subsection shall not be construed to require Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to Borrower or any other Person.

 3.02 [RESERVED]. 
 3.03 [RESERVED]. 
 3.04 COMPENSATION FOR LOSSES. Upon demand of any Lender (with a
copy to Administrative Agent) from time to time, Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of any failure by Borrower (other than the failure of such
Lender to make a Loan) to borrow on the date or in the amount notified by Borrower, including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan.
Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. 
  

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 3.05 MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS. 
 (a) Designation of a Different Lending Office. If Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, then such Lender (x) shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01, as the case may be, in the future, and
(ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender, and (y) shall deliver to Administrative Agent and Borrower a calculation of any such
compensation or additional amount, in reasonable detail. Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
 (b) Replacement of Lenders. If Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, Borrower may replace such Lender in accordance with Section 11.13. 
 3.06
SURVIVAL. All of Borrower’s obligations under this Article III shall survive termination of this Agreement and repayment of all Obligations hereunder. 
 ARTICLE IV. 
 CONDITIONS PRECEDENT TO CREDIT EXTENSION

 4.01 CONDITIONS TO INITIAL DRAW CLOSING DATE TERM LOAN FUNDING. The obligation of each Lender to make its Initial
Term Loan hereunder is subject to satisfaction of the following conditions precedent: 
 (a) Administrative Agent’s receipt
of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to each of the Lenders: 
 (i) executed counterparts of this Agreement, the Fee Letter, the Administrative Agent Fee Letter, the Unconditional Guaranty, the Security Agreement, the Pledge Agreement, the Intercompany Subordination
Agreement, Control Agreements in respect of each of the deposit accounts and securities accounts pledged pursuant to the Security Agreement, and each other Loan Document sufficient in number for distribution to Administrative Agent, each Lender and
the Loan Parties thereto; 
 (ii) for each Group A Project, fee title shall be vested in Borrower, and Borrower
shall have provided to Administrative Agent (i) the Deed of Trust as a first priority Lien, subject only to Permitted Exceptions, duly executed by Borrower, acknowledged, delivered and recorded in the Official Records; and (ii) the Title
Policy. 
  

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 (iii) a Note executed by Borrower in favor of each Lender; 
 (iv) [reserved]; 
 (v) a Compliance Certificate duly executed by a Responsible Officer of Borrower demonstrating Borrower’s compliance with the Financial Covenants on a pro forma basis after giving effect to the Credit
Extension being made on such date; 
 (vi) such certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of each Loan Party as Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 
 (vii) such
documents and certifications as Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of its business require such qualification, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; 

(viii) a favorable opinion of Borrower’s counsel, addressed to Administrative Agent and each Lender, as to such
matters concerning the Loan Parties and the Loan Documents as the Lenders may reasonably request; 
 (ix) a
certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by such Loan Party and the validity against such
Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required; 
 (x) a certificate signed by a Responsible Officer of each Loan Party certifying (A) that there has been no event or
circumstance since June 30, 2009 that has had or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect; (B) the representations and warranties set forth in Article V and in the other Loan
Documents are true and correct in all material respects (except for such representations and warranties made as of a specified date, which shall be true and correct as of such specified date); and (C) no Default or Event of Default has occurred
and is continuing as of such date or would occur after giving effect to the Credit Extension made on such date; 
 (xi) evidence that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect and that Administrative Agent has been named loss payee, or Administrative Agent and the Lenders have been named as
additional insureds, as applicable, thereunder and Administrative Agent may direct the insurers to cause all payments of insurance proceeds to be payable to it from and after the date of a Default without further consent of Borrower or any Loan
Party; and 
  

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 (xii) such other assurances, certificates, documents, instruments,
agreements, consents or opinions as Administrative Agent, or Majority Lenders reasonably may require, including such other documents, instruments and evidence to establish and perfect the Liens granted to Administrative Agent or any Lender under the
Loan Documents. 
 (b) Evidence satisfactory to Majority Lenders that Borrower has repaid, or concurrently
herewith will repay, all Indebtedness under the Refinanced Revolving Credit Agreements and any Liens (and the deeds of trust, security agreements or mortgages creating such Liens) granted to secure such Indebtedness on all of the Group A Property
and the Group B Property have been reconveyed, discharged and terminated, including payoff letters in form and substance satisfactory to Majority Lenders, from the lenders, agents or trustees, as applicable, under the Refinanced Revolving Credit
Agreements and addressed to Borrower; provided that even though the Liens securing the Refinanced Revolving Credit Agreements are required to be reconveyed, discharged and terminated: (i) the commitments to fund set forth in the Refinanced CBT,
CNB and JPM Revolving Credit Agreements are not required to be terminated and the Refinanced Wachovia Revolving Credit Agreement is not required to be terminated (but any amounts outstanding under any and all of such Refinanced Revolving Credit
Agreements other than that certain letter of credit existing on the Closing Date under the Refinanced Wachovia Revolving Credit Agreement in an amount not to exceed $5,330,000 shall concurrently herewith have been paid in full, except only those
amounts to be repaid from the sales proceeds under those escrows on up to ten (10) Lots or Units mentioned in (ii) below), and (ii) in order to facilitate the mechanics of the reconveyance of the Refinanced Revolving Credit
Facilities, and recognizing that a small number sales of Lots or Units to retail end users are in the escrow closing process on the Closing Date, Lender will allow Borrower under the Refinanced CBT, CNB and JPM Revolving Credit Agreements to allow a
maximum of ten (10) such Lots or Units to close escrow in the period of time on and from the Closing Date until and including the fifth (5th) Business Day after the Closing Date without reconveying the Lien of the applicable Refinanced CBT, CNB and JPM
Revolving Credit Agreement until the earlier of the closing date of each such escrow or the fifth (5th) Business Day after the Closing Date; and (2) the Refinanced Wachovia Revolving Credit Agreement is in all respects reconveyed, discharged and terminated, except that there is an existing
letter of credit in an amount not more than $5,330,000 secured 100% by cash subject to a Control Agreement. 
 (c)
Administrative Agent shall have received Uniform Commercial Code, Lien searches and other evidence satisfactory to Lenders that the only Liens on the Collateral (other than Group B Property) are Permitted Liens. 
 (d) Administrative Agent and each Lender shall have received a five (5) year business plan and budget (commencing on the Closing Date),
with a narrative executive summary (“Annual Budget”) for the Consolidated Group, which Annual Budget shall include annual base compensation for senior management of the Consolidated Group. 
 (e) The Majority Lenders shall be satisfied, as of the Closing Date, based upon financial models developed by the Lenders and Borrower, that
no default or event of default under the Indentures has occurred or would occur upon giving effect to the transactions contemplated by the Loan Documents. 
  

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 (f) The representations and warranties of the Borrower and each other Loan Party contained
in Article 5 or any other Loan Document or which are contained in any document furnished in connection herewith shall be true and correct. 
 (g) The Lenders shall have completed financial, accounting, insurance and legal due diligence satisfactory to the Lenders in their sole discretion regarding the Loan Parties. 
 (h) Borrower shall have delivered to Administrative Agent, and Majority Lenders shall have approved, a schedule of all maps and plats in
existence with respect to the each of the Group A Projects in the possession of, or prepared for, any of the Consolidated Group. Each such map or plat must (i) be made available by Borrower for review and copying by Lender, (ii) contain a
legal description of the subject Group A Project, (iii) describe and show all boundaries of and lot lines within said Group A Project and all streets and other dedications and (iv) contain such other information and certifications as
Administrative Agent or Lender may request. 
 (i) Borrower shall have provided Administrative Agent with, and Majority Lenders
shall have approved, a schedule of any Tentative Maps relating to any Group A Property. 
 (j) Borrower shall have provided to
Administrative Agent, and Majority Lenders shall have approved, a schedule of all soils/hydrology test reports relating to the Group A Projects in the possession of, or prepared for, any of the Consolidated Group, and such test reports shall be made
available by Borrower for review by Administrative Agent or Lender. The contents of the soils/hydrology test reports must be satisfactory to Majority Lenders. 
 (k) Borrower shall have delivered to Administrative Agent, and Majority Lenders shall have approved, a schedule of all environmental assessments of the Group A Projects in the possession of, or prepared
for, any of the Consolidated Group, and such assessments shall have been made available by Borrower for review by Administrative Agent or Lender. If Majority Lenders determine that any further review should be obtained, Borrower shall also provide
such follow up testing, reports, and other actions as may be required by Administrative Agent. If such reports (or reports listed in paragraph (j) immediately above) are addressed to Borrower, Borrower shall cause a reliance letter, in form and
substance satisfactory to Majority Lenders, to be provided to Administrative Agent. 
 (l) Borrower shall have delivered to
Administrative Agent, the Environmental Indemnity, fully completed and duly executed by Borrower. 
 (m) Borrower shall have
provided Administrative Agent and Majority Lenders shall have approved, a preliminary title report for each Group A Project, prepared by the Title Company, together with a legible copy of each “SCHEDULE B” item. 
 (n) Borrower shall have provided to Administrative Agent evidence satisfactory to Majority Lenders as to whether (a) each Group A
Project, or any portion thereof, is located in an area designated by the Department of Housing and Urban Development as having special flood or mudslide hazards, and (b) the community in which such Group A Project is located is participating in
the National Flood Insurance Program. 
  

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 (o) For each Group A Project, Administrative Agent shall have received evidence of the
completion of all recordings and filings to establish or maintain the perfection and priority of the Liens on the Collateral granted in the Loan Documents and required by Administrative Agent to be in effect prior to the effectiveness of this
Agreement. 
 (p) Borrower shall have used commercially reasonable efforts to obtain and deliver to Administrative Agent a duly
executed and acknowledged subordination agreement, recorded in the Official Records, from each party in interest to an agreement that includes a PAPA Obligation or Preemptive Purchase or Lease Right with respect to any Group A Property, which
subordination agreement shall (i) subordinate each of such PAPA Obligations and Preemptive Purchase or Lease Right to the Lien of this Loan on the applicable Group A Property, and (ii) be in form and substance reasonably acceptable to
Majority Lenders (provided that they should be consistent in all material respects with the forms provided by Initial Lender’s counsel prior to the Closing Date). 
 (q) Any fees required to be paid on or before the Closing Date shall have been paid in full by Borrower. 
 (r) Unless waived by Administrative Agent, Borrower shall have paid all fees, charges and disbursements of counsel to Administrative Agent and each Lender and all out of pocket due diligence costs of
Initial Lender, in each case to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or
to be incurred by it through the closing and post closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between Borrower, the Lenders and Administrative Agent). Without limiting the generality of
the provisions of Section 10.04, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto. 
 (s) Each of the Group A Projects shall be listed on Schedule 4.01(s), which Schedule
shall include the Real Property Classifications for the Borrower Real Property included in each Group A Project pursuant to the conditions set forth in Sections 4.04 through 4.08, inclusive. 
 (t) All of the conditions to inclusion to of Real Property as Eligible Real Property Collateral in Section 4.09(b) shall have been met
with respect to all of the Group A Property. 
 (u) Each of Borrower (after giving effect to the transactions contemplated
hereby), and the Consolidated Group on a

  

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consolidated basis, is solvent, has assets having a fair value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured, and has
access to adequate funds for the conduct of its business and the ability to pay its debts from time to time incurred in connection therewith as such debts mature. 
 4.02 CONDITIONS TO DELAYED DRAW CLOSING DATE TERM LOAN FUNDING. The obligation of each Lender to make its Delayed Draw Term Loan hereunder is subject to satisfaction of the following conditions precedent:

 (a) For each Group B Project, fee title shall be vested in Borrower, and Borrower shall have provided to Administrative Agent
(i) the Deed of Trust as a first priority Lien, subject only to Permitted Exceptions, duly executed by Borrower, acknowledged, delivered and recorded and (ii) the Title Policy. 
 (b) Administrative Agent shall have received Uniform Commercial Code, Lien searches, and other evidence satisfactory to Lenders that the
only Liens on the Collateral are Permitted Liens (except that the Liens on Real Property shall be subject only to Permitted Exceptions). 
 (c) Permitted Construction Indebtedness incurred by Borrower when added to the Total Outstandings and Indebtedness under the Existing Secured Indebtedness, shall not exceed the Maximum Permitted Secured
Indebtedness. 
 (d) a favorable opinion of Borrower’s counsel, addressed to Administrative Agent and each Lender, as to
such matters concerning the Loan Parties and the Loan Documents as the Lenders may reasonably request; 
 (e) A certificate
signed by a Responsible Officer of each Loan Party certifying (A) that there has been no event or circumstance since the Closing Date that has had or would reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect; (B) the representations and warranties set forth in Article V and in the other Loan Documents are true and correct in all material respects (except for such representations and warranties made as of a specified date, which shall
be true and correct as of such specified date); and (C) no Default or Event of Default has occurred and is continuing as of such date or would occur after giving effect to the Credit Extension made on such date; 
 (f) Evidence that all insurance required to be maintained pursuant to the Loan Documents continues to be in effect and that Administrative
Agent continues to be named loss payee, Administrative Agent and the Lenders continue to be named as additional insureds thereunder and Administrative Agent may direct the insurers to cause all payments of insurance proceeds to be payable to it from
and after the date of a Default without further consent of the Borrower or any Loan Party; and 
 (g) Such other assurances,
certificates, documents, instruments, agreements, consents or opinions as Administrative Agent, or Majority Lenders reasonably may require, including such other documents, instruments and evidence to establish and perfect the Liens granted to
Administrative Agent or any Lender under the Loan Documents. 
  

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 (h) Borrower shall have delivered to Administrative Agent, and Majority Lenders shall have
approved, a schedule of all maps and plats in existence with respect to the each of the Group B Projects in the possession of, or prepared for, any of the Consolidated Group. Each such map or plat must (i) be made available by Borrower for
review and copying by Lender, (ii) contain a legal description of the subject Group B Project, (iii) describe and show all boundaries of and lot lines within said Group B Project and all streets and other dedications and (iv) contain
such other information and certifications as Administrative Agent or Lender may request. 
 (i) Borrower shall have provided
Administrative Agent with, and Majority Lenders shall have approved, a schedule of any Tentative Maps relating to any Group B Property. 
 (j) Borrower shall have provided to Administrative Agent, and Majority Lenders shall have approved, a schedule of all soils/hydrology test reports relating to the Group B Projects in the possession of, or
prepared for, any of the Consolidated Group, and such test reports shall be made available by Borrower for review by Administrative Agent or Lender. The contents of the soils/hydrology test reports must be satisfactory to Majority Lenders.

 (k) Borrower shall have delivered to Administrative Agent, and Majority Lenders shall have approved, a schedule of all
environmental assessments of the Group B Projects in the possession of, or prepared for, any of the Consolidated Group, and such assessments shall have been made available by Borrower for review by Administrative Agent or Lender. If Majority Lenders
determine that any further review should be obtained, Borrower shall also provide such follow up testing, reports, and other actions as may be required by Administrative Agent. If such reports (or reports listed in paragraph (j) immediately
above) are addressed to Borrower, Borrower shall cause a reliance letter, in form and substance satisfactory to Majority Lenders, to be provided to Administrative Agent. 
 (l) Borrower shall have delivered to Administrative Agent, the Environmental Indemnity, fully completed and duly executed by Borrower and Parent. 
 (m) Borrower shall have provided Administrative Agent and Majority Lenders shall have approved, a preliminary title report for each Group B
Project, prepared by the Title Company, together with a legible copy of each “Schedule B” item. 
 (n) Borrower shall
have provided to Administrative Agent evidence satisfactory to Majority Lenders as to whether (a) each Group B Project, or any portion thereof, is located in an area designated by the Department of Housing and Urban Development as having
special flood or mudslide hazards, and (b) the community in which such Group B Project is located is participating in the National Flood Insurance Program. 
 (o) Borrower shall have used commercially reasonable efforts to obtain and deliver to Administrative Agent a duly executed and acknowledged subordination agreement, recorded in the Official Records, from
each party in interest to an agreement that includes a PAPA Obligation or Preemptive Purchase or Lease Right with respect to any Group A Property and Group B Property, which subordination agreement shall (i) subordinate each of such PAPA
Obligations and Preemptive Purchase or Lease Right to the Lien of this Loan on the applicable Group A Property and Group B Property, and (ii) be in form and substance reasonably acceptable to Majority Lenders (provided that they should be
consistent in all material respects with the forms provided by Initial Lender’s counsel prior to the Closing Date). 
  

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 (p) For each Group B Project, Administrative Agent shall have received evidence of the
completion of all recordings and filings to establish or maintain the perfection and priority of the Liens on the Collateral granted in the Loan Documents and required by Administrative Agent to be in effect prior to the effectiveness of this
Agreement. 
 (q) Each of the Group B Projects shall be listed on Schedule 4.02(q), which Schedule shall include the
correct Real Property Classifications for the Borrower Real Property included in each Group B Project pursuant to the conditions set forth in Sections 4.04 through 4.08, inclusive. 
 (r) All of the conditions to inclusion to of Real Property as Eligible Real Property Collateral in Section 4.09(b) shall have been met
with respect to all of the Group B Property. 
 (s) Each of Borrower (after giving effect to the transactions contemplated
hereby), and the Consolidated Group on a consolidated basis, is solvent, has assets having a fair value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured, and has access to
adequate funds for the conduct of its business and the ability to pay its debts from time to time incurred in connection therewith as such debts mature. 
 (t) A Borrowing Base Report duly executed by a Responsible Officer of Borrower demonstrating Borrower’s compliance with the Borrowing Base on a pro forma basis after giving effect to the Credit
Extension being made on such date. 
 4.03 CONDITIONS TO EACH POST CLOSING CREDIT EXTENSION. The occurrence of each Credit
Extension (other than the initial Credit Extension) is subject to the further conditions that: 
 (a) Borrower shall have
satisfied all of the conditions related to the Group A Property and Group A Projects set forth in Section 4.01. 
 (b)
Borrower shall have satisfied all of the conditions related to the Group B Property and Group B Projects set forth in Section 4.02. 
 (c) Borrower shall have delivered to Administrative Agent and each Lender a Notice of Borrowing for such Credit Extension in accordance with this Agreement; 
 (d) Borrower shall have delivered to Administrative Agent and each Lender a Borrowing Base Report duly executed by a Responsible Officer of
Borrower, demonstrating Borrower’s compliance with the Borrowing Base; 
 (e) Borrower shall have delivered to
Administrative Agent and each Lender a Compliance Certificate duly executed by a Responsible Officer of Borrower demonstrating Borrower’s compliance with the Financial Covenants; 
  

 49 

 (f) Permitted Construction Indebtedness incurred by Borrower, when added to the Total
Outstandings and Indebtedness under the Existing Secured Indebtedness, shall not exceed the Maximum Permitted Secured Indebtedness. 
 (g) Each of Borrower (after giving effect to the transactions contemplated hereby), and the Consolidated Group on a consolidated basis, is solvent, has assets having a fair value in excess of the amount required to pay its probable
liabilities on its existing debts as they become absolute and matured, and has access to adequate funds for the conduct of its business and the ability to pay its debts from time to time incurred in connection therewith as such debts mature.

 (h) Borrower shall have delivered to Administrative Agent and each Lender a certificate of a Responsible Officer that on the
date such Credit Extension is to occur and after giving effect thereto, the following are true and correct: 
 (i) The representations and warranties of Borrower and the other Loan Parties set forth in Article V and in the other Loan Documents are true and correct in all material respects as if made on such date (except for representations and
warranties expressly made as of a specified date, which shall be true and correct as of such date); 
 (ii) No
Default or Event of Default has occurred and is continuing or will result from such Credit Extension; 
 (iii)
All of the Loan Documents remain in full force and effect; and 
 (iv) That there has been no event or
circumstance since the Closing Date that has had or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
 The submission by Borrower to Administrative Agent of each Notice of Borrowing shall be deemed to be a representation and warranty by Borrower that each of the statements set forth above in this
Section 4.03(d) is true and correct as of the date of such notice. 
 4.04 CONDITIONS PRECEDENT TO ADMISSION OF REAL
PROPERTY TO THE BORROWING BASE AS UNIMPROVED LAND. Borrower may, from time to time, request Administrative Agent to include a portion of the Borrower Real Property as Unimproved Land for purposes of the Borrowing Base. In connection with each such
request, and as a condition to any Borrower Real Property qualifying as Unimproved Land at any time including on the Closing Date the date that is sixty (60) days after the Closing Date, the date of any Credit Extension or the date of any
determination of the Borrowing Base, the following conditions precedent shall have been satisfied at the sole cost and expense of Borrower. Upon the satisfaction of such conditions precedent, as determined by Majority Lenders, such portions of the
Borrower Real Property shall be included in the Borrowing Base as Unimproved Land: 
 (a) REQUEST. Borrower shall have submitted
to Administrative Agent a request in the form of Exhibit “G” to include in the Borrowing Base as Unimproved Land portions of the Borrower Real Property as set forth in such request. Such request and all

  

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other documents and instruments described in this Section 4.04 shall be submitted with the Borrowing Base Report in which Borrower intends to include such portion of the Borrower Real
Property in the Borrowing Base as Unimproved Land. Each such request shall be deemed a renewal of all representations and warranties of Borrower set forth in the Loan Documents. 
 (b) DEFAULTS. No Default shall have occurred and be continuing on and as of the date that each portion of the Borrower Real Property is
included as Unimproved Land. 
 (c) ZONING APPROVALS. Borrower shall have provided to Administrative Agent and Majority Lenders
shall have approved evidence of appropriate vested zoning for the anticipated development of the Unimproved Land “for sale” single- or “for sale” multi- family residential property, which zoning shall be consistent with
(i) the anticipated use of such Unimproved Land and (ii) the Core Businesses. 
 (d) ELIGIBLE REAL PROPERTY
COLLATERAL. All Unimproved Land shall have met all of the requirements in this Agreement to be Eligible Real Property Collateral. 
 (e) OTHER. Borrower shall have provided such other documents and information reasonably requested by Administrative Agent. 
 4.05 CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS LAND UNDER DEVELOPMENT. Borrower may, from time to time, request Administrative Agent to include a portion of the Borrower Real Property as Land Under
Development for purposes of the Borrowing Base. In connection with each such request, and as a condition to any Borrower Real Property qualifying as Land Under Development at any time including on the Closing Date, the date that is sixty
(60) days after the Closing Date, the date of any Credit Extension or the date of any determination of the Borrowing Base, the following conditions precedent shall have been satisfied at the sole cost and expense of Borrower. Upon the
satisfaction of such conditions precedent, as determined by Majority Lenders, such portions of the Borrower Real Property shall be included in the Borrowing Base as Land Under Development: 
 (a) REQUEST. Borrower shall have submitted to Administrative Agent a request in the form of Exhibit “H” to include in the
Borrowing Base as Land Under Development portions of the Borrower Real Property as set forth in such request. Such request and all other documents and instruments described in Sections 4.04 and 4.05 shall be submitted with the Borrowing Base Report
in which Borrower intends to include such portion of the Borrower Real Property in the Borrowing Base as Land Under Development. Each such request shall be deemed a renewal of all representations and warranties of Borrower set forth in the Loan
Documents. 
 (b) DEFAULTS. No Default shall have occurred and be continuing on and as of the date that each portion of the
Borrower Real Property is included as Land Under Development. 
  

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 (c) HORIZONTAL IMPROVEMENTS. Borrower shall have provided to Administrative Agent and
Majority Lenders shall have approved evidence of Horizontal Improvements are ongoing on the applicable Borrower Real Property. 
 (d) ELIGIBLE REAL PROPERTY COLLATERAL. All Land Under Development meets all of the requirements in this Agreement to be Eligible Real Property Collateral. 
 (e) OTHER. Borrower shall have provided such other documents and information reasonably requested by Administrative Agent. 
 4.06 CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS FINISHED LOTS. Borrower may, from time to time, request Administrative Agent to include a portion of the Borrower Real
Property as Finished Lots for purposes of the Borrowing Base. In connection with each such request, and as a condition to any Borrower Real Property qualifying as Finished Lots at any time including on the Closing Date, the date that is sixty
(60) days after the Closing Date, the date of any Credit Extension or the date of any determination of the Borrowing Base, the following conditions precedent shall have been satisfied at the sole cost and expense of Borrower. Upon the
satisfaction of such conditions precedent, as determined by Majority Lenders, such portions of the Borrower Real Property shall be included in the Borrowing Base as Finished Lots: 
 (a) REQUEST. Borrower shall have submitted to Administrative Agent a request in the form of Exhibit “I” to include in the
Borrowing Base as Finished Lots portions of the Borrower Real Property as set forth in such request. Such request and all other documents and instruments described in Sections 4.04, 4.05 and 4.06 shall be submitted with the Borrowing Base Report in
which Borrower intends to include such portion of the Borrower Real Property in the Borrowing Base as Finished Lots. Each such request shall be deemed a renewal of all representations and warranties of Borrower set forth in the Loan Documents.

 (b) DEFAULTS. No Default shall have occurred and be continuing on and as of the date that each portion of the Borrower Real
Property is included as Finished Lots. 
 (c) FINAL MAP. Borrower shall have delivered to Administrative Agent and Majority
Lenders shall have approved a Final Map (a Tentative Map is not sufficient for inclusion of Borrower Real Property as Finished Lots) of the Finished Lots pursuant to the applicable subdivision map requirements, which Final Map shall have been
recorded in the Official Records. Each Final Map must contain a legal description of the Finished Lots, must describe and show all boundaries of and lot lines within such Finished Lots and all streets and other dedications, and must contain such
other information and certifications as Administrative Agent may request. 
 (d) SUBSTANTIAL COMPLETION OF HORIZONTAL
IMPROVEMENTS. Borrower shall have delivered to Administrative Agent and Majority Lenders shall have approved evidence that all Horizontal Improvements on the Borrower Real Property to be included as Finished Lots are substantially compete.

 (e) PERMIT READY; UTILITIES. Borrower shall have provided to Administrative Agent and Majority Lenders shall

  

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have approved evidence that all fees due to any Governmental Authority have been paid (including all fees up and to the point of pulling the final building permit necessary to commence Vertical
Construction), and all conditions and requirements necessary to be met have been met unconditionally, for issuance of all Building Permits for the Finished Lots;, and no conditions will exist to affect Borrower’s right to connect into and have
adequate use of such utilities except for the payment of a normal connection charges or tap charges and except for the payment of subsequent charges for such services to the utility supplier. 
 (f) ELIGIBLE REAL PROPERTY COLLATERAL. All Finished Lots meet all of the requirements in this Agreement to be Eligible Real Property
Collateral. 
 (g) OTHER. Borrower shall have provided such other documents and information reasonably requested by
Administrative Agent. 
 4.07 CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS HOMES UNDER
CONSTRUCTION. Borrower may, from time to time, request Administrative Agent to include a portion of the Borrower Real Property as Homes Under Construction, as applicable, for purposes of the Borrowing Base. In connection with each such request, and
as a condition to any Borrower Real Property qualifying as Homes Under Construction at any time including on the Closing Date the date that is sixty (60) days after the Closing Date, the date of any Credit Extension or the date of any
determination of the Borrowing Base, the following conditions precedent shall have been satisfied at the sole cost and expense of Borrower. Upon the satisfaction of such conditions precedent, as determined by Majority Lenders, such portion of the
Borrower Real Property shall be included in the Borrowing Base as Homes Under Construction, as applicable: 
 (a) REQUEST.
Borrower shall have submitted to Administrative Agent a request in the form of Exhibit “J” to include in the Borrowing Base as Homes Under Construction portions of the Borrower Real Property as set forth in such request. Such request and
all other documents and instruments described in Sections 4.04, 4.05, 4.06 and 4.07 shall be submitted with the Borrowing Base Report in which Borrower intends to include such portion of the Borrower Real Property in the Borrowing Base as Homes
Under Construction. Each such request shall be deemed a renewal of all representations and warranties of Borrower set forth in the Loan Documents. 
 (b) DEFAULTS. No Default shall have occurred and be continuing on and as of the date that each portion of the Borrower Real Property as Homes Under Construction for purposes of the Borrowing Base.

 (c) DOCUMENTS AND INFORMATION. Borrower shall have provided to Administrative Agent, and Majority Lenders shall have
approved, all documents and information required pursuant to Sections 4.04, 4.05 and 4.06, with respect to the applicable portion of the Borrower Real Property as Homes Under Construction for purposes of the Borrowing Base. 
 (d) VERTICAL CONSTRUCTION. Borrower shall have provided to Administrative Agent, and Majority Lenders shall have approved, evidence that the
Building Permit has been issued and that Vertical Construction has commenced on the Finished

  

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Lots. Homes Under Construction will include Units that meet all of the requirements and conditions to be Homes Under Construction and will continue to include any such Units up until and
including the point that such Units have become finished Units (i.e., through Vertical Construction, regardless of what stage of Vertical Construction is ongoing, and including upon completion of Vertical Construction) and (other than with respect
to Units that meet all of the conditions and requirements under Section 4.08 below to become Model Homes) escrow has closed on the sales of such Units in accordance with Section 8.02. 
 (e) ELIGIBLE REAL PROPERTY COLLATERAL. All Homes Under Construction meet all of the requirements in this Agreement to be Eligible Real
Property Collateral. 
 (f) OTHER. Borrower shall have provided such other documents and information reasonably requested by
Administrative Agent. 
 4.08 CONDITIONS PRECEDENT TO ADMISSION OF REAL PROPERTY TO THE BORROWING BASE AS MODEL HOMES. Borrower
may, from time to time, request Administrative Agent to include a portion of the Borrower Real Property as Model Homes for purposes of the Borrowing Base. In connection with each such request, and as a condition to any Borrower Real Property
qualifying as Model Homes at any time including on the Closing Date, the date that is sixty (60) days after the Closing Date, the date of any Credit Extension or the date of any determination of the Borrowing Base, the following conditions
precedent shall have been satisfied at the sole cost and expense of Borrower. Upon the satisfaction of such conditions precedent, as determined by Majority Lenders, such portions of the Borrower Real Property shall be included in the Borrowing Base
as Model Homes: 
 (a) REQUEST. Borrower shall have submitted to Administrative Agent a request in the form of Exhibit
“K” to include in the Borrowing Base as Model Homes portions that a portion of the Borrower Real Property as set forth in such request. Such request and all other documents and instruments described in this Sections 4.04, 4.05, 4.06, 4.07
and 4.08 shall be submitted with the Borrowing Base Report in which Borrower intends to include such portion of the Borrower Real Property in the Borrowing Base as Model Homes. Each such request shall be deemed a renewal of all representations and
warranties of Borrower set forth in the Loan Documents. 
 (b) DEFAULTS. No Default shall have occurred and be continuing on and
as of the date that each portion of the Borrower Real Property as Model Homes for purposes of the Borrowing Base. 
 (c)
DOCUMENTS AND INFORMATION. Borrower shall have provided to Administrative Agent, and Majority Lenders shall have approved, all documents and information required pursuant to Sections 4.04, 4.05, 4.06 and 4.07, with respect to the applicable portion
of the Borrower Real Property as Model Homes for purposes of the Borrowing Base. 
 (d) UNIT CONSTRUCTION COMPLETION. Borrower
shall not be entitled to include any portion of the Borrower Real Property as Model Homes for purposes of the Borrowing Base unless and until Vertical Construction has been completed to the

  

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satisfaction of Majority Lenders and the Model Homes have been completed with such fit and finish and furnishing as Borrower reasonably believes is necessary in connection with marketing and
sales of Units of the type of the Model Home in the Project in which the Model Home is located. Units that are unsold shall not be deemed to be Model Homes (but rather a Home Under Construction) unless such Unit is furnished or merchandized and used
as part of marketing and sales of Units of the type of the Model Home, and located in a Model Unit complex (provided that Model Unit complexes shall not include more Units than is industry standard and is consistent with Borrower’s past
practice in designating Model Homes). 
 (e) ELIGIBLE REAL PROPERTY COLLATERAL. All Model Homes meet all of the requirements in
this Agreement to be Eligible Real Property Collateral. 
 (f) OTHER. Borrower shall have provided such other documents and
information reasonably requested by Administrative Agent. 
 4.09 GENERAL CONDITIONS TO REAL PROPERTY ELIGIBLE COLLATERAL BEING
INCLUDED IN THE BORROWING BASE. In addition to any other conditions to any Borrower Real Property being included in the Borrowing Base from time to time, the Borrower Real Property must be Eligible Real Property Collateral, and in order to be
Eligible Real Property Collateral, Real Property must be included in a Project that shall have met the following conditions precedent as determined by Majority Lenders (an “Eligible Project”): 
 (a) PROJECT DELIVERABLES. Administrative Agent has received and approved: 
 (i) A fully completed Project Eligibility Request (other than for a Group A Project or a Group B Project, for which the other
applicable conditions in this Agreement to inclusion in the Borrowing Base shall have been met), executed by Borrower, with all attachments and enclosures; 
 (ii) A fully executed and acknowledged Deed of Trust for the Real Property included in the Project, which Deed of Trust shall be recorded in the Official Records, and upon recordation of the Deed of
Trust, Administrative Agent shall have received a Title Policy issued by the Title Company, and except for the Permitted Exceptions, there are no Liens encumbering such Real Property; 
 (iii) Fully executed collateral assignments of any material Construction Agreements for the Project; and 
 (iv) For informational purposes and with no right of Lender to approve, to the extent such information is available for the
Horizontal Improvements or Vertical Construction to be constructed as part of the Project as of the date entry of the Project’s Borrower Real Property into the Borrowing Base, if requested by Administrative Agent or any Majority Lender:
(1) copies of the Plans, Drawings and Specifications, architect’s and engineers agreements, construction contracts, and all other agreements, and Entitlements concerning the Project being submitted for approval; (2) all cost
breakdowns for the Improvements to be constructed as part of the Project; and (3) Project sources and uses of funds, Project economics and feasibility, market data and other similar information concerning the Project as reasonably requested by
Administrative Agent. 
  

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 (b) ADDITIONAL REQUIREMENTS. Without limitation of any other conditions to any Borrower Real
Property being Eligible Real Property Collateral, the following are conditions to any Borrower Real Property being Eligible Real Property Collateral: 
 (i) The Borrower Real Property is not zoned or being developed for commercial use or any other use that is inconsistent with the single- or multi- family “for sale” use intended in connection
with the Core Businesses (e.g., land zoned for hotel or golf course uses); 
 (ii) The Real Property (other than
Amenities which may have been transferred to the Project’s homeowners’ association) shall be Borrower Real Property owned in fee, subject only to the Permitted Exceptions; 
 (iii) Administrative Agent shall have no obligation to approve a Project as an Eligible Project if there is a Default;

 (iv) The Borrower Real Property is not (or the holder of Permitted Construction Indebtedness does not have the
right to cause such Borrower Real Property to become) collateral for any Permitted Construction Indebtedness or Existing Secured Indebtedness; 
 (v) The Borrower Real Property is not Unentitled Land; 
 (vi) The
Borrower Real Property is not zoned for, and will not be developed as, Apartments, except that the Asset identified on Schedule APT (and no other Aggregate Real Property) is zoned for Apartments and may be Eligible Real Property Collateral that is
Unimproved Land, Land Under Development or Finished Lots on the Closing Date, if such Asset meets all of the conditions to be Eligible Real Property Collateral other than those conditions requiring that the Unimproved Land, Land Under Development or
Finished Lots as the case may be for single- or multi- family “for sale” residential use; 
 (vii)
There is a Deed of Trust, recorded in the Official Records, creating an enforceable first priority Lien in favor of Administrative Agent on behalf of the Lenders on the Borrower Real Property, and except for the Permitted Exceptions, there are no
Liens encumbering such Borrower Real Property; and 
 (viii) Borrower shall have used commercially reasonable
efforts to obtain and deliver to Administrative Agent: (a) a duly executed and acknowledged subordination agreement, recorded in the Official Records, from each party in interest to an agreement that includes a PAPA Obligation or Preemptive
Purchase or Lease Right with respect to the Borrower Real Property, which subordination agreement shall (1) subordinate each of such PAPA Obligations and Preemptive Purchase or Lease Right to the Lien of this Loan on the applicable Borrower
Real Property, and (2) be in form and substance reasonably acceptable to Majority Lenders (provided that they should be consistent in all material respects with the forms provided by Initial Lender’s

  

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counsel prior to the Closing Date); and (b) delivered to Administrative Agent a legal opinion in a form reasonably acceptable to Majority Lenders that such subordination agreement is
enforceable and is in a form sufficient to be a subordination agreement. 
 ARTICLE V. 
 REPRESENTATIONS AND WARRANTIES 
 In order to induce Administrative Agent and the Lenders to enter into this Agreement, Borrower represents and warrants to Administrative Agent and the Lenders for itself and each of the other members of
the Consolidated Group that: 
 5.01 EXISTENCE, QUALIFICATION AND POWER; COMPLIANCE WITH LAWS. Each Loan Party and Property
Entity (a) is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) own its assets and carry on its business, and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and
in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws. 
 5.02 AUTHORIZATION; NO CONTRAVENTION. The execution, delivery and performance by each Loan Party of each Loan Document to which such Person
is a party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents, (b) conflict with or result in any
breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its
Subsidiaries or any Joint Venture in which it is a member or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject, or (c) violate any Law.

 5.03 GOVERNMENTAL AUTHORIZATION; OTHER CONSENTS. No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document.

 5.04 BINDING EFFECT. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly
executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan
Party that is party thereto in accordance with its terms. 
  

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 5.05 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT. 
 (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered
thereby; and (ii) present fairly, in all material respects, the consolidated financial condition of the Consolidated Group, as determined in accordance with GAAP, as of the date thereof and their consolidated results of operations and their
cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby. 
 (b) The unaudited consolidated balance sheet of the Consolidated Group dated June 30, 2009, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for the fiscal quarter ended on that
date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, and (ii) present fairly, in all material respects, the consolidated financial condition of the Consolidated Group, as determined in
accordance with GAAP, as of the date thereof and their consolidated results of operations and their cash flows for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end
audit adjustments. 
 (c) Since June 30, 2009, there has been no event or circumstance, either individually or in the
aggregate, that has had or would reasonably be expected to have a Material Adverse Effect. 
 5.06 LITIGATION. Except for the
litigation described on Schedule 5.06, or any litigation addressed by Section 5.32, there are no actions, inquiries, suits, proceedings, claims or disputes pending or, to Borrower’s Knowledge, threatened, at law, in equity, in arbitration
or before any Governmental Authority, by or against any Loan Party and/or Property Entity or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, (b) purport to affect or pertain to any Project, Asset or portion thereof or (c) if adversely determined, would reasonably be expected to result in a Material Adverse Effect. 
 5.07 NO DEFAULT. No member of the Consolidated Group is in default under or with respect to any material Contractual Obligation (including
the Indentures). No Default or Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document. 
 5.08 OWNERSHIP OF PROPERTY; LIENS. 
 (a) Borrower has good and marketable fee title to all of the Borrower Real Property and good title to the other components of the Property owned by Borrower free and clear of all Liens, subject only to
Permitted Exceptions. CF Owner has good and marketable fee title to all of the CF Property free and clear of all Liens, subject only to the Existing Permitted Indebtedness and Permitted Exceptions. MF Owner has good and marketable fee title to all
of the MF Property free and clear of all Liens, subject only to the Existing Permitted Indebtedness and Permitted Exceptions. Borrower owns or leases all Real Property (other than the CF Property and the MF Property) and Personal Property necessary
for the use, entitlement, management, development, operation, marketing and sale of the Aggregate Real Property. There are no outstanding Mechanics’ Liens. There are no delinquent ground

  

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rents, assessments for Improvements or other similar outstanding charges or impositions affecting the Aggregate Real Property. No Improvements lie outside the boundaries and building restriction
lines of the Aggregate Real Property or encroach onto any easements (unless affirmatively insured by a Title Policy), and no Improvements on adjoining properties encroach upon the Aggregate Real Property. The Title Policy premium has been fully
paid. Except for customary gap undertakings, neither Borrower, any Loan Parties nor any other Person has provided any title indemnities (or analogous documentation) or deposits of cash or other security to the title insurer to obtain any Title
Policy. The Permitted Exceptions do not and will not materially interfere with the security intended to be provided by any Deed of Trust, or with the use, entitlement, management, development, operation, marketing and sale of the Borrower Real
Property, or the marketability or value of the Borrower Real Property. Borrower and each Loan Party will preserve its right, title and interest in and to the Collateral for so long as the Obligations remain outstanding and will warrant and defend
same and the validity and priority of the Deeds of Trust and the Liens in favor of Administrative Agent arising pursuant to the Loan Documents from and against any and all Claims whatsoever other than the Permitted Exceptions. 
 (b) As of the Closing Date, the Consolidated Group owns no Real Property other than the (i) Group A Property and the Group B Property,
and all Group A Property is Borrower Real Property and all Group B Property is Borrower Real Property, (ii) CF Property and (iii) MF Property. On the earlier of (i) the Delayed Draw Closing Date, (ii) the date that is sixty
(60) days after the Closing Date or (iii) the Second Term Loan Funding Date, the Consolidated Group owns no Real Property other than Borrower Real Property, the CF Property and the MF Property (except to the extent that the CF Property or
MF Property has been transferred to Borrower). Other than the Real Property described in the legal description set forth on Schedule A of the Title Policy for any Asset, at the time of issuance of that Title Policy, there is no Borrower Real
Property that is a part of such Asset, or any related Amenities and/or common areas owned by the Consolidated Group and/or any of their Affiliates, and such legal description is a true, correct and complete legal description of the Asset (provided
that if a representation in this Section 5.08(b) is breached, Borrower will be given the opportunity to cure such breach by complying with Section 6.19 with respect to the applicable Real Property). 
 (c) Neither Borrower, CF Owner, MF Owner nor any other member of the Consolidated Group has engaged in acts or omissions which have caused a
default under any PAPA Obligation or triggered any buyback, repurchase options or rights of refusal thereunder. Neither Borrower, CF Owner, MF Owner nor any other member of the Consolidated Group has borrowed any amount from the holder of any PAPA
Obligation, nor has any advance of funds been made by the holder of any PAPA Obligation on behalf of Borrower, CF Owner MF Owner, or any other member of the Consolidated Group. 
 (d) All covenants, conditions, restrictions, easements and other similar matters that exist with respect to the Group A Projects or the
Group B Projects are listed as exceptions on the Title Polices for the Group A Projects and the Group B Projects, respectively. 
 (e) The aggregate outstanding principal balance of the Existing Secured Indebtedness secured by the CF Property is $18,889,150. The aggregate outstanding principal balance of the Existing Secured Indebtedness secured by the MF Property is
$38,146,984. 
  

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 5.09 SECURED INDEBTEDNESS. No Loan Party or Property Entity has any secured Indebtedness,
other than indebtedness permitted by the provisions contained in Section 7.01. 
 5.10 INSURANCE. The Loan Parties maintain
insurance in compliance with Section 6.07. 
 5.11 TAXES. 
 (a) The Loan Parties have filed all Federal, state and other material tax returns and reports required to be filed, and have paid all
Federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. No Loan Party is party to any tax sharing agreement. 
 (b) There is no proposed tax assessment against any Loan Party that would, if made, have a Material Adverse Effect. 
 5.12 ERISA COMPLIANCE. 
 (a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws. Each Plan that is intended to qualify under Section 401 (a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to Borrower’s Knowledge, nothing has occurred which would prevent, or cause the loss of, such
qualification. Borrower and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to
Section 412 of the Code has been made with respect to any Plan. 
 (b) There are no pending or, to the Borrower’s
Knowledge, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that would reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or would reasonably be expected to result in a Material Adverse Effect. 
 (c) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
(v) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. 
 5.13 SUBSIDIARIES; JOINT VENTURES. None of Parent or Borrower has any Subsidiaries other than those (i) specifically

  

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disclosed in Part (a) of Schedule 5.13 and (ii) those Subsidiaries that will be disclosed in Part (a) of Schedule 5.13 as required by, and in compliance with,
Section 6.01(e). No Loan Party owns or holds of record and/or beneficially (whether directly or indirectly) any shares of any class in the capital of any corporations nor any legal and/or beneficial interests in any Joint Venture, except for
(i) the Joint Ventures listed on Part (b) of Schedule 5.13, and (ii) the Joint Ventures that will be disclosed in Part (b) of Schedule 5.13 as required by, and in compliance with, Section 6.01(e). Borrower is
the wholly owned Subsidiary of Parent and the Property Entities are the wholly owned Subsidiaries of Borrower. 
 5.14 MARGIN
REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING COMPANY ACT 
 (a) None of the proceeds of the Loan will be used in
violation of Regulations U or X of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 221 and 207) (the “Margin Regulations”), for the purpose of purchasing or carrying any “margin stock” as defined in
the Margin Regulations or reducing or retiring any Indebtedness which was originally incurred to purchase or carry margin stock or for any other purpose which might make this transaction a “purpose credit” within the meaning of the Margin
Regulations. Neither any of the Loan Parties nor any Person acting on behalf of any of the Loan Parties have taken or will take any action which might cause any Loan Document to violate the Margin Regulations or any other regulations of the Board of
Governors of the Federal Reserve System or to violate Section 7 of the Securities Exchange Act of 1934, or any rule or regulation promulgated thereunder, in each case as now in effect or as the same may hereafter be in effect. 
 (b) The Loan Parties are not subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the
Investment Company Act of 1940, the Interstate Commerce Act (as any of the preceding have been amended), or any other law which regulates the incurring by any Loan Party of indebtedness, including laws relating to common or contract carriers or the
sale of electricity, gas, steam, water or other public utility services. 
 5.15 DISCLOSURE. No report, SEC filing, financial
statement, certificate or other information furnished by or at the direction of any Loan Party to Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder
or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading in any material respect; provided that with respect to projected financial information, Borrower represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time. 
 5.16 COMPLIANCE. 
 (a) The location, construction, occupancy, development, management, operation, sale, marketing and use of the Aggregate Real Property comply
in all respects with the terms of the Permitted Exceptions relating to the Aggregate Real Property. 
  

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 (b) Borrower, Parent and Property Entities and all of the Aggregate Real Property is in
compliance with all applicable Laws and all Entitlements. 
 5.17 COMPLIANCE WITH ENVIRONMENTAL LAWS. 
 (a) Neither any of the Consolidated Group, nor any operator of the Aggregate Real Property or any operations thereon has violated or is in
violation, or alleged violation, of any Environmental Laws. Neither any of the Consolidated Group, nor any operator of the Aggregate Real Property or any operations thereon has failed to obtain or comply with any permit required pursuant to
Environmental Laws for the occupation of any Aggregate Real Property or to conduct the operations thereon. The separate certification from Borrower dated of even date herewith describes all of the Existing Environmental Matters, each of which are
listed on Schedule 5.17(a). Borrower shall take all actions necessary to comply with all compliance orders affecting the Borrower Real Property and cause the Existing Environmental Matters to comply with all Environmental Laws. Borrower shall
take all actions necessary to cause the CF Owner and the MF Owner to (1) comply with all compliance orders affecting the CF Property and the MF Property, respectively and (2) cause the Existing Environmental Matters to comply with all
Environmental Laws. 
 (b) Except for the Existing Environmental Matters, none of the Consolidated Group has received notice
from any third party including any federal, state or local Governmental Authority: (i) regarding any actual or alleged violation of Environmental Laws or any Environmental Liabilities, including any investigatory, remedial, or corrective
liabilities, relating to any of them or the Aggregate Real Property; (ii) that it has been identified by the United States Environmental Protection Agency as a potentially responsible party under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, with respect to a site listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B (1986); (iii) that any Hazardous Materials which any of the Consolidated Group has generated,
transported or disposed of has been found at any site at which a federal, state or local Governmental Authority or other third party has conducted or has ordered that any of the Consolidated Group conduct a remedial investigation, removal or other
response action pursuant to any Environmental Law; or (iv) that any of the Consolidated Group is a named party to any claim, action, cause of action, complaint, or legal or administrative proceeding (in each case, contingent or otherwise)
arising out of any third party’s incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with the release or presence of Hazardous Materials. 
 (c) Except for the Existing Environmental Matters: (i) none of the Consolidated Group or any operator of any Aggregate Real Property
has handled, processed, treated, stored, disposed of, arranged for or permitted the disposal of any Hazardous Material and no portion of the Aggregate Real Property has been used for the handling, processing, treatment, storage or disposal of
Hazardous Materials except in accordance with applicable Environmental Laws; (ii) no underground tank or other underground storage receptacle for Hazardous Materials, asbestos containing material in any form or condition, materials or equipment
containing polychlorinated biphenyls, or landfills, surface impoundments, or disposal areas are located on any portion of the Aggregate Real Property; (iii) in the course of any activities conducted by any of the Consolidated Group or operators
of its properties, no Hazardous Materials have been generated or are being used on the Aggregate Real Property except in accordance with applicable Environmental

  

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Laws; (iv) to Borrower’s Knowledge, there have been no releases (i.e. any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, disposing or dumping) or threatened releases of Hazardous Materials on, upon, into or from any Aggregate Real Property of any of the Consolidated Group (and no such Aggregate Real Property is contaminated with any such substance);
(v) to Borrower’s Knowledge, there have been no releases on, upon, from or into any Real Property in the vicinity of any of the Aggregate Real Property which, through soil or groundwater contamination, may have come to be located on the
Aggregate Real Property; and (vi) to Borrower’s Knowledge, any Hazardous Materials that have been generated, accumulated or stored on any of the Aggregate Real Property have been transported offsite only by carriers having an
identification number issued by the Environmental Protection Agency, treated or disposed of only by treatment or disposal facilities maintaining valid permits as required under applicable Environmental Laws, which transporters and facilities have
been and are, to Borrower’s Knowledge, operating in compliance with such permits and applicable Environmental Laws. 
 5.18
LOANS AS SENIOR INDEBTEDNESS. The Loan Parties and Property Entities have no Indebtedness that is senior or pari passu in right of payment to the Obligations of the Loan Parties to the Lenders (other than (a) Indebtedness under the Indentures,
(b) Indebtedness under the Permitted Construction Indebtedness, (c) Indebtedness under the Existing Secured Indebtedness and (d) Permitted Indebtedness, but only to the extent that such Permitted Indebtedness is allowed to be senior
or pari passu in right of payment to the Obligations under Section 7.01). 
 5.19 LAWS PERTAINING TO LAND SALES. None of
the Loan Parties or Property Entities have received any notice that it is in violation of the Interstate Land Sales Full Disclosure Act, or any other laws pertaining to land sales (including any laws pertaining to the sale of interests in timeshare
units) in any state in which any Loan Parties or Property Entities sells, transfers, manages, operates, develops or otherwise disposes of Aggregate Real Property. 
 5.20 FISCAL YEAR. The Consolidated Group has a fiscal year ending December 31 of each calendar year. 
 5.21 COMMON ENTERPRISE AND CONSIDERATION. The Loan Parties are collectively engaged in a common enterprise for the furtherance of the Core Businesses. Accordingly, the Loan Parties have received good and
adequate consideration for the entering into the Loan Documents to which they are parties to. Furthermore, any advance to Borrower that is subsequently disbursed by Borrower to any other Loan Party for use by such Loan Party shall benefit all of the
other Loan Parties, even if the advance is based upon a Borrowing Base which includes assets of Loan Parties that do not receive the disbursement from Borrower. Each Loan Party will each receive good and adequate benefit from this common arrangement
given the common enterprise of all of the foregoing as set forth above. 
 5.22 SUBSIDIARIES OWNING REAL PROPERTY. Except for
Laguna Big Horn, LLC, a Delaware limited liability company and Whitney Ranch Village 5, LLC, a Delaware limited liability company (which collectively own less than fifty (50) Units, which are all anticipated to be sold promptly after the
Closing Date) CF Owner and MF Owner are the only Subsidiaries of Parent or Borrower that own Real Property. Parent does not own any Real Property. 
  

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 5.23 GUARANTORS OF THE INDENTURES. The entities on Schedule 5.23, as such Schedule
shall be updated immediately upon any additional entities becoming guarantors of the obligations under the Indentures, are all of the guarantors of the obligations under the Indentures. 
 5.24 ENTITLEMENTS. Other than as listed on Schedule 5.24(a), the Aggregate Real Property is Entitled for single- or multi- family
“for sale” residential use which allows for the development of at least one Unit on each Lot and all contemplated Amenities, which Entitlements are unconditional, vested, in full force and effect, and beyond all applicable appeal periods.
Neither the Entitlements nor any other rights relating to the use, entitlement, management, development, operation, marketing or sale the Aggregate Real Property are in any way dependent upon or related to any real estate other than the Aggregate
Real Property, validly created, existing appurtenant perpetual easements insured in the Title Policy or use of public rights of way. In the event that all or any part of the Improvements are destroyed or damaged, said Improvements can be legally
reconstructed to their condition prior to such damage or destruction, and thereafter exist for the same use without violating any zoning Laws or Laws applicable thereto and without the necessity of obtaining any variances or special permits. All
Entitlements necessary to operate the Aggregate Real Property as it is currently operated are in full force and effect including all water permits and approvals. No Loan Party or Property Entity has received any written notice of any violation of
any Entitlements. Schedule 5.24(b) accurately reflects for each Project or Asset as applicable, whether a Final Map, a Tentative Map, or neither, has been recorded or approved, as applicable. 
 5.25 MATERIAL AGREEMENTS; NO MATERIAL DEFAULTS. 
 (a) Attached hereto as Schedule 5.25 is a true and correct listing of all material contracts, equipment leases, permits, development agreements not of record, covenants not of record, restrictions not of
record, option agreements not of record, purchase and sale agreements, land banking agreements, instruments and other agreements under which any Loan Party or Property Entities (or all Loan Parties and Property Entities in the aggregate) has a
potential outstanding liability in excess of $1,000,000 under any one of the foregoing or under any category of the foregoing (collectively “Material Agreements”). 
 (b) No event has occurred which, immediately or upon the expiration of applicable cure or grace periods, would constitute a default under
any Material Agreement. 
 5.26 NO CONDEMNATION. No condemnation proceeding is pending, or to Borrower’s Knowledge,
threatened against any Aggregate Real Property which would impair the use, entitlement, management, development, operation, marketing and sale of such Aggregate Real Property. If the foregoing representation and warranty shall cease to be true
(subject to Section 5.47(b)) with respect to a Project or Asset or a portion thereof, such Project or Asset (or such portion thereof, as the case may be) shall cease to be part of the Borrowing Base until such time as such representation and
warranty is once again true. 
  

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 5.27 CFD AND SUBDIVISION BOND. Except as set forth on Schedule 5.27(a), neither Borrower nor
any Property Entity has any CFD Obligations in existence. The information regarding the CFD Obligations delivered as part of the due diligence materials prior to the Closing Date is true and correct in all material respects and accurately reflects
all outstanding, annual assessment amount under such bonds, the improvements covered by such bonds and the status of work, the anticipated release date of such bonds, interest reserves and any current or potential defaults under such bonds, there
are no CFD Obligations in existence with respect to any Project or Asset or portion thereof. None of the Aggregate Real Property, Borrower or Property Entities are subject to any subdivision improvement bonds, except as set forth on Schedule
5.27(b). The information provided to Initial Lender includes the total principal amount of the subdivision improvement bonds outstanding, the improvements covered by such bonds and the status of the work, the anticipated release date of such bonds,
third party guarantees of such bonds and any current or potential defaults under such bonds, there are no subdivision improvement bonds in existence with respect to any Asset. 
 5.28 UTILITIES. Other than as listed on Schedule 5.28, Borrower or the applicable Property Entity has obtained binding commitments from each
applicable utility provider for the provision of adequate telephone service, electric power, storm sewer, sanitary sewer and water for the use, entitlement, management, development, operation, marketing and sale of each Lot and Unit in each Asset.

 5.29 LOT AND UNIT SALES. Other than as set forth on Schedule 5.29, as of October 11, 2009 there were no pending sales of
Aggregate Real Property by Borrower or any Property Entity, and such schedule accurately reflects for each pending sale the gross sale price, concessions, closing costs, broker’s commission, and any seller financing. 
 5.30 GOLF COURSES. Other than as listed on Schedule 5.30, no Project, Asset or any portion thereof includes or is anticipated to include a
golf course. 
 5.31 MORATORIUMS. Other than as listed on Schedule 5.31, there are no current, or to Borrower’s Knowledge,
proposed, moratoriums on the construction or occupancy of any Improvements. 
 5.32 CONSTRUCTION DEFECTS; WARRANTIES.

 (a) Other than as listed on Schedule 5.32(a), there are no pending or threatened construction defect claims in excess of an
aggregate of $500,000 (in excess of available insurance) per Asset by Unit owners or occupiers who have purchased or occupied Units from or constructed by any of the Consolidated Group, and no repetitive warranty claims relating to a common product
or matter in excess of an aggregate of $1,000,000 (in excess of available insurance) with respect to all Real Property owned by any member of the Consolidated Group. 
 (b) Other than as listed on Schedule 5.32(b), there are no pending or threatened construction defect claims, and no repetitive warranty claims relating to a common product or matter in excess of $500,000
(in excess of available insurance) per Asset with respect to any Project by any homeowners’ association or similar entity. 
  

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 5.33 AMENITIES. All Amenities at or related to or used by owners of Units or Lots in each
Project or Asset have been conveyed to such Project’s homeowners’ association or are subject to the Lien of a Deed of Trust (except for Amenities on the CF Property or the MF Property, which are owned by CF Owner and MF Owner,
respectively, or the applicable homeowner’s association). 
 5.34 ORAL AGREEMENTS; MATTERS NOT OF RECORD. Other than as set
forth on Schedule 5.34, no Loan Party or Property Entity is a party to any oral agreement or matters that are not of record that are or would otherwise be Liens on any of the Aggregate Real Property. 
 5.35 BORROWING BASE. The Real Property Classification of each and all Borrower Real Property included in the Borrowing Base is true and
correct. 
 5.36 LEASED REAL PROPERTY. Schedule 5.36 lists all Real Property that is leased by the Loan Parties or Property
Entities as either lessor or lessee (and lists the material terms thereof), to the extent that the potential liability or value to Borrower, Parent or any Property Entity under or of any such lease is equal to $100,000 or more. 
 5.37 CREATION, PERFECTION AND PRIORITY OF LIENS. As of the Closing Date, (i) the execution and delivery of the Security Documents by
each Loan Party, together with the filing of any Uniform Commercial Code financing statements delivered to Administrative Agent for filing and recording, and the recording of each Deed of Trust, are effective to create in favor of Administrative
Agent for the benefit of itself and the Lenders, as security for the Obligations, a valid and perfected first priority Lien on all of the Collateral (other than Group B Property) then in existence (subject only to (A) Permitted Exceptions in
the case of Collateral consisting of Real Property and (B) Permitted Liens in the case of Collateral consisting of Personal Property), and (ii) all filings and other actions necessary or desirable to perfect and maintain the perfection and
first priority status of such Liens have been duly made or taken and remain in full force and effect. 
 5.38 EQUITY SECURITIES.
All outstanding Equity Securities of each member of the Consolidated Group are duly authorized, validly issued, fully paid and non-assessable. Except as set forth on Schedule 5.38, there are no outstanding subscriptions, options, conversion rights,
warrants or other agreements or commitments of any nature whatsoever (firm or conditional) obligating such member of the Consolidated Group to issue, deliver or sell, or cause to be issued, delivered or sold, any additional Equity Securities of such
member of the Consolidated Group, or obligating such member of the Consolidated Group to grant, extend or enter into any such agreement or commitment. All Equity Securities of each member of the Consolidated Group have been offered and sold in
compliance with all federal and state securities laws and all other applicable Law, except where any failure to comply, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. None of the Equity
Securities of any member of the Consolidated Group are subject to any Lien except those in favor of Administrative Agent. 
 5.39 NO AGREEMENTS TO MERGE. No Loan Party has any legal obligation, absolute or contingent, to any Person to effect any merger, consolidation or other reorganization or to enter into any agreement with respect thereto. 
  

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 5.40 LABOR MATTERS. There are no disputes presently subject to grievance procedure,
arbitration or litigation under any of the collective bargaining agreements, employment contracts or employee welfare or incentive plans to which any Loan Party is a party, no Loan Party is a party to or bound by any collective bargaining agreement
or other contract with a labor union or labor organization and there are no strikes, lockouts, work stoppages or slowdowns, or, to Borrower’s Knowledge, jurisdictional disputes or organizing activities occurring or threatened, which, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
 5.41 BURDENSOME CONTRACTUAL
OBLIGATIONS ETC.. No Loan Party, Property Entity nor any of their respective Properties are subject to any Contractual Obligation or requirement of Law which, either individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect. 
 5.42 BROKERAGE COMMISSIONS. No Broker’s Commission is to be paid by the Lenders with respect to the
extensions of credit contemplated hereby as a result of any agreement entered into by a Loan Party. 
 5.43 AGREEMENTS WITH
AFFILIATES AND OTHER AGREEMENTS. Except as disclosed on Schedule 5.43, no Loan Party has entered into any material agreement or contract with any of its Affiliates or any Joint Venture which is required to be disclosed to the SEC and has not been
disclosed to the SEC. No Loan Party is a party to or is bound by any Contractual Obligation or is subject to any restriction under its charter or formation documents, which could reasonably be expected to have a Material Adverse Effect. 

5.44 FOREIGN ASSETS CONTROL, ETC. 
 (a) No Loan Party (A) is, or is controlled by, a Designated Person; (B) has received funds or other property from a Designated Person; or (C) is in breach of or is the subject of any action
or investigation under any Anti-Terrorism Law. No Loan Party engages or will engage in any dealings or transactions, or is or will be otherwise associated, with any Designated Person. The Borrower, Parent and each Subsidiary are in compliance, in
all material respects, with the Patriot Act. Each Loan Party has taken reasonable measures to ensure compliance with the Anti-Terrorism Laws including the requirement that (1) no Person who owns any direct or indirect interest in any Loan Party
is a Designated Person and (2) funds invested directly or indirectly in any Loan Party by are derived from legal sources. 
 (b) No portion of the proceeds of any Loan or other credit made hereunder has been or will be used, directly or indirectly for, and no fee, commission, rebate or other value has been or will be paid to, or for the benefit of, any
governmental official, political party, official of a political party or any other Person acting in an official capacity in violation of any applicable law, including the U.S. Foreign Corrupt Practices Act of 1977, as amended. 
 5.45 INTERNAL CONTROLS. From and after a Public Offering: 
 (a) The Borrower has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-14

  

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under the Securities Exchange Act of 1934, as amended, and the rules of the SEC (the “Exchange Act”), which (A) are designed to ensure that material information relating to
the Borrower, including its consolidated Subsidiaries, is made known to the Borrower’s principal executive officer and its principal financial officer or persons performing similar functions by others within those entities, particularly during
the periods in which the periodic reports required under the Exchange Act are being prepared; (B) have been evaluated for effectiveness as of a date within 90 days prior to the filing of the Borrower’s most recent annual or quarterly
report filed with the Securities Exchange Commission; and (C) are effective in all material respects to perform the functions for which they were established; 
 (b) Based on the evaluation of its disclosure controls and procedures, the Borrower is not aware of (A) any significant deficiency in the design or operation of internal controls which could
adversely affect the Borrower’s ability to record, process, summarize and report financial data or any material weaknesses in internal controls or (B) any fraud, whether or not material, that involves management or other employees who have
a significant role in the Borrower’s internal controls; and 
 (c) Since the date of the most recent evaluation of such
disclosure controls and procedures, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies and
material weaknesses, other than those disclosed in filings made by the Borrower under the reporting requirements of the Exchange Act. 
 5.46 INTERCOMPANY RECEIVABLES. No Subsidiaries of Parent and no Subsidiaries of Borrower owe any amounts to WL Southwest. 
 5.47 EFFECTIVE DATE; MATERIALITY THRESHOLD OF CERTAIN REPRESENTATIONS AND WARRANTIES. 
 (a) The representations and
warranties made by Borrower to Administrative Agent and the Lenders in Sections 5.08(a), 5.09, 5.18, and 5.38 as they relate to the Group A Property are first made on the Closing Date and as they relate to the Group B Property are first made on the
earlier of (i) the Delayed Draw Closing Date, (ii) the date that is sixty (60) days after the Closing Date or (iii) the Second Term Loan Funding Date. Once made, each of the representations and warranties referenced in this
Section 5.47 shall be true, correct and complete at all times. 
 (b) The breach of the representations and warranties made
by Borrower to Administrative Agent and the Lenders in Sections 5.01(d), 5.06 (in excess of available insurance), 5.08(a), 5.16, 5.17, 5.19, 5.24, 5.25(b), 5.26, 5.31, 5.33 and 5.34, shall not result in a Default unless any such breaches taken as an
aggregate would reduce the value of, or cause liability, damage or loss to, or Claims against, the any individual Asset by or in an amount equal to $1,000,000 or more (the calculation of such reduction in value, liability, damage or Claim with
respect to a specific breach shall be made without regard to any limitation or qualification as to materiality set forth in such representation or warranty). This Section 5.47(b) only applies to the representations and warranties
listed in the first sentence of this Section 5.47(b), and only with respect to the aggregate of all such Claims against an Asset up to

  

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$1,000,000 (and any amount in excess of the $1,000,000 per Asset shall constitute a Default) and not to any reduction in the value of, or liability, damage or loss to, or Claims against, Borrower
or any of the Consolidated Group; provided, however, whether or not a Default exists after applying such $1,000,000 limitations above, nonetheless a Default shall exist if any breach or breaches of the representations and warranties set forth in the
first sentence of this Section 5.47(b) occur(s) that individually or in the aggregate would reduce the value of, or cause liability, damage or loss to, or Claims against, any or all of the Aggregate Real Property or any portion thereof in an
amount equal to $20,000,000 or more (the calculation of such aggregate reduction in value, liability, damage or Claim with respect to any or all of the Aggregate Real Property shall be made without regard to any limitation or qualification as to
materiality set forth in such representation or warranty and without the deduction of $1,000,000 for any Asset in making such computation). Nothing in this Section 5.47 shall relieve Borrower of any covenants or obligations under the Loan
Documents related to the subject matter of such representations and warranties whether or not a “Default” exists under this Section 5.47. 
 5.48 REPRESENTATIONS AND WARRANTIES UPON DELIVERY OF FINANCIAL STATEMENTS, DOCUMENTS, AND OTHER INFORMATION. Each delivery by any Loan Party to Administrative Agent or any Lender of any schedules
(including the schedules attached to this Agreement), financial statements, Borrowing Base Report, Project Eligibility Request other documents or information on or after the date of this Agreement (including documents and information delivered in
connection with the Delayed Draw Term Loan or the Second Term Loan) shall be a representation and warranty that such schedules, financial statements, other documents and information are true, correct and complete (in accordance with GAAP) in all
material respects, that there are no material omissions therefrom that would result in such financial statements, other documents or information being materially incomplete, incorrect or misleading in any material respect as of the date thereof, and
that such financial statements accurately present the financial condition and results of operations of the Loan Parties as at the dates thereof in all material respects and for the periods covered thereby. 
 ARTICLE VI. 
 AFFIRMATIVE COVENANTS 
 So long as any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each member of the Consolidated Group to: 
 6.01 FINANCIAL STATEMENTS AND OTHER REPORTS. Deliver to Administrative Agent, in form and detail satisfactory to Majority Lenders: 
 (a) as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Parent, a
consolidated and consolidating balance sheet of the Consolidated Group, as determined in accordance with GAAP, as at the end of such fiscal year, and the related consolidated and consolidating statements of income or operations, shareholders’
equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of an
independent certified public

  

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accountant of nationally recognized standing reasonably acceptable to Administrative Agent (which may be Windes and McClaughry), which report and opinion shall be prepared in accordance with GAAP
and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit; 
 (b) as soon as available, but in any event within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of Parent, a consolidated and consolidating
balance sheet of the Consolidated Group, as determined in accordance with GAAP, as at the end of such fiscal quarter, and the related consolidated and consolidating statements of income or operations, shareholders’ equity and cash flows for
such fiscal quarter and for the portion of Parent’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the
previous fiscal year, all in reasonable detail, certified by a Responsible Officer of Borrower as fairly presenting the financial condition, results of operations, shareholders’ equity and cash flows of the Consolidated Group in accordance with
GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; 
 (c) as soon as available, and in any
event no later than one hundred twenty (120) days after the end of each fiscal year of Parent, a projected balance sheet, income statement, cash flow statement and compliance with the Financial Covenants for the next fiscal year; and

 (d) as soon as available, and in any event not later than one hundred twenty (120) days after the end of each fiscal
year of Parent, an updated Annual Budget for the (i) Borrower and (ii) Consolidated Group and, as soon as available, any material revisions to or any final revisions of any such projected consolidated Annual Budgets; 
 (e) as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter of each fiscal year of
Borrower, updates to Schedule 5.13 (upon the deliveries of such updates, Schedule 5.13 shall be automatically updated, without any further consent from Administrative Agent or the Lenders) to the extent that such Schedule is not
accurate or complete as of the last day of such fiscal quarter. 
 6.02 CERTIFICATES; OTHER INFORMATION. Deliver to
Administrative Agent, in form and detail satisfactory to Majority Lenders and with sufficient copies for each Lender: 
 (a)
concurrently with the delivery of the financial statements referred to in Section 6.01(a), a certificate of its independent certified public accountants certifying such financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default under the Financial Covenants set forth herein or, if any such Default shall exist, stating the nature and status of such event; 
 (b) concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b), (i) a duly completed Compliance
Certificate signed by a Responsible Officer of Borrower, (ii) a report of all loans made by any Loan Party to any officers, directors, board members, employees, shareholders or Affiliates of any Loan Party during such previous fiscal quarter,
(iii) a report of all Investments made any Loan Party in suppliers and customers of each of the Loan Parties during the previous fiscal quarter, (iv) a

  

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report of all of all transactions between the Loan Parties and their Affiliates during such previous fiscal quarter, (v) a report of all bonus compensation paid or awarded to any Key Manager
by any member of the Consolidated Group during the previous fiscal quarter and (vi) a detailed list, by category, of all Excluded Assets; 
 (c) promptly after any request by Administrative Agent or any Lender, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit
committee of the board of directors) of Borrower or Parent by independent accountants in connection with the accounts or books of Borrower, Parent or any other member of the Consolidated Group, or any audit of any of them; 
 (d) within five (5) days after the same are available, and to the extent the same are made public in accordance with the Exchange Act,
copies of each of the following documents of Borrower or any other member of the Consolidated Group not otherwise required to be delivered to Administrative Agent pursuant to this Agreement: 
 (i) proxy statements and annual reports to shareholders; 
 (ii) annual reports on Form 10-K; 
 (iii) quarterly reports on Form 10-Q; and 
 (iv) each current report on Form 8-K (other than current reports on Form 8-K relating only to “Other Events” under
Item 5 of Form 8-K or other items defined as “Other Events” as may be assigned in the future) and transaction statements On Schedule TO, 13D or 13E-3 that such Person may file under the Exchange Act; 
 (e) promptly, and in any event within five (5) Business Days after receipt thereof by any member of the Consolidated Group, copies of
each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any formal investigation or other formal inquiries not in the ordinary course by such agency regarding financial or
other operational results of any Loan Party or any Subsidiary thereof; 
 (f) as soon as available, but in any event no later
than (i) twenty (20) days after the end of each calendar quarter, a preliminary Borrowing Base Report, which preliminary Borrowing Base Report shall include a detailed calculation of the Borrowing Base, together with copies of accounts
statements during the preceding three (3) months from each depository maintaining a deposit account that is subject to a Control Agreement, and (ii) forty five (45) days after the end of each calendar quarter, a final Borrowing Base
Report, which final Borrowing Base Report shall include a detailed calculation of the Borrowing Base, together with any new account statements covering deposit accounts described above; 
 (g) as soon as available, but in any event no later than three (3) Business Days after the end of each week, (i) a report of all
Asset Sales, and all sales and closings of Aggregate Real Property (on an asset-by-asset basis, including Units and Lots) from the previous week (including gross sales prices, deductions therefrom to reach Net Proceeds and estimated net sale prices
with respect to

  

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each such transaction), (ii) a summary of the current cash balances in the deposit accounts of the Loan Parties that are subject to Control Agreements and (iii) such additional
information as may be reasonably requested by Administrative Agent or otherwise agreed to by the parties hereto; 
 (h) as soon
as available, but in any event no later than ten (10) Business Days after the end of each calendar month, a report of (i) all construction activity, together with a report of all sales and closings of Units and Lots from the previous
month, with such additional information as may be agreed to by the parties hereto, (ii) all acquisitions of any fee or other interest in Real Property during such previous calendar month, (iii) all Distributions made during such calendar
month, (iv) all expenditures or series of related expenditures outside of the Core Businesses in excess of $100,000 during such previous calendar month, (v) all repurchases and payments of the Senior Unsecured Notes during such previous
calendar month, together with the aggregate outstanding principal amount of the Senior Unsecured Notes as of the last day of such calendar month and (vi) all drawdowns or borrowings under any Permitted Construction Indebtedness during such
previous calendar month; 
 (i) promptly, such additional information regarding the business, financial or corporate affairs of
any Loan Party, or compliance with the terms of the Loan Documents, as Administrative Agent or any Lender may from time to time reasonably request. Documents required to be delivered pursuant to Section 6.01 or Section 6.02(d) (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which such documents are posted on Borrower’s behalf on
a secure Internet or intranet website, if any, to which each Lender and Administrative Agent have access (whether a commercial, third-party website or whether sponsored by Administrative Agent); provided that: 
 (i) Borrower shall deliver paper copies of such documents to Administrative Agent or any Lender that requests Borrower to
deliver such paper copies until a written request to cease delivering paper copies is given by Administrative Agent or such Lender and 
 (ii) Borrower shall notify Administrative Agent and each Lender (by facsimile or electronic mail) of the posting of any such documents and provide to Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every instance Borrower shall be required to provide paper copies of the Compliance Certificates required by Section 6.02(b) to Administrative Agent.
Except for such Compliance Certificates, Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by Borrower
with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents; 
 (j) promptly upon and in any event within five (5) days after receipt thereof, copies of all notices delivered to Borrower or any other member of the Consolidated Group under the Indentures, the
Permitted Construction Indebtedness and the Existing Secured Indebtedness; and 
  

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 (k) at least five (5) business days’ advance notice of any refinancing of
(i) the Indebtedness under the Indentures or (ii) any Permitted Construction Indebtedness 
 6.03 NOTICES. Promptly
notify Administrative Agent of: 
 (a) the occurrence of any Default or Event of Default; 
 (b) any matter that has resulted or would reasonably be expected to result in a Material Adverse Effect, including (i) breach or
non-performance of, or any default under, a Contractual Obligation of any member of the Consolidated Group (including failure to pay any amount due in respect of an Indenture or any other Permitted Indebtedness on the date scheduled for payment
therefor, without giving effect to any grace period); (ii) any dispute, litigation, investigation, proceeding or suspension between any member of the Consolidated Group and any Governmental Authority; or (iii) the commencement of, or any
material development in, any material litigation or proceeding affecting Parent, Borrower or any of their respective Subsidiaries, including pursuant to any applicable Environmental Laws; 
 (c) the occurrence of any ERISA Event; 
 (d) any material change in accounting policies or financial reporting practices by any Loan Party; 
 (e) the occurrence of a default or event of default under any of the Indentures, Permitted Construction Indebtedness, Existing Secured Indebtedness or any other Indebtedness of Borrower, Parent or any
Property Entity; 
 (f) any change in Key Management; and 
 (g) any Distribution in Excess of $250,000. 
 Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a Responsible Officer of Borrower setting forth details of the occurrence referred to therein and stating what action
Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 
 6.04 PAYMENT OF OBLIGATIONS. Pay and discharge as the same shall become due and payable, all its obligations and liabilities, including
(a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance
with GAAP are being maintained by Parent or Borrower; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions
contained in any instrument or agreement evidencing such Indebtedness. 
 6.05 PRESERVATION OF EXISTENCE, ETC. (a) Preserve,
renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04(a); (b) take all reasonable action to maintain all
rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its

  

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business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which would reasonably be expected to have a Material Adverse Effect. 
 6.06 MAINTENANCE OF PROPERTIES. Preserve and maintain the Aggregate Real Property in good order, repair and condition, and shall promptly restore damage from casualty or condemnation to the condition existing immediately prior to such
damage, and shall not permit or commit waste on the Aggregate Real Property or permit impairment or deterioration of the Aggregate Real Property. 
 6.07 MAINTENANCE OF INSURANCE. 
 (a) Property. Maintain with financially sound and
reputable insurers having an A.M. Best rating of A- or better and not Affiliates of Borrower or Parent insurance with respect to its Properties and business against such casualties and contingencies, including fire, lightening and other perils, as
shall be in accordance with the general practices of businesses engaged in similar activities in similar geographic areas and the Consolidated Group’s past practices and consistent with the Consolidated Group’s practices on the Closing
Date, and in amounts, containing such terms, in such forms and for such periods as may be reasonable and prudent in accordance with sound business practices. The Consolidated Group shall at all times comply with and conform to all provisions of each
such insurance policy and to all requirements of the insurers thereunder applicable to the Consolidated Group, the Properties or to the use, occupation, possession, operation, maintenance or repair of all or any portion of the Aggregate Real
Property. 
 (b) Liability. Maintain with financially sound and reputable insurers having an A.M. Best rating of A- or better
and not Affiliates of Borrower or Parent protecting the Consolidated Group, Administrative Agent and each Lender against loss from liability imposed by law or assumed in any agreement, document, or instrument and arising from bodily injury, death or
property damage, as shall be in accordance with the general practices of businesses engaged in similar activities in similar geographic areas and the Consolidated Group’s past practices and consistent with the Consolidated Group’s
practices on the Closing Date, and in amounts, containing such terms, in such forms and for such periods as may be reasonable and prudent in accordance with sound business practices. 
 (c) Additional Insurance. 
 (i) Such other policies of insurance as Administrative Agent, acting at the direction of Majority Lenders, may reasonably request in writing to the extent available on commercially reasonable terms.

 (d) General. All policies for required insurance will be in form and substance satisfactory to Administrative Agent, acting
at the direction of Majority Lenders in their absolute and sole discretion. All property policies evidencing required insurance will name Administrative Agent, on behalf of the Lenders, as first mortgagee and loss payee. All liability policies
evidencing required

  

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insurance will name Administrative Agent and each Lender as additional insured. The policies will not be cancelable as to the interests of Administrative Agent or the Lenders due to the acts of
Borrower or any other member of the Consolidated Group. The policies will provide for at least thirty (30) days prior written notice of the cancellation or modification thereof to be given to Administrative Agent. A certified copy of each
insurance policy or, if acceptable to Administrative Agent and Majority Lenders, certificates of insurance evidencing that such insurance is in full force and effect, will be delivered to Administrative Agent, together with proof of the payment of
the premiums thereof. Prior to the expiration of each such policy, Borrower shall furnish Administrative Agent and the Lenders evidence that such policy has been renewed or replaced in the form of the original or a certified copy of the renewal or
replacement policy or, if acceptable to Administrative Agent, acting at the direction of Majority Lenders, a certificate reciting that there is in full force and effect, with a term covering at least the next succeeding calendar year, insurance of
the types and in the amounts required in this Section 6.07. 
 (e) Borrower will not (and will not permit any Loan Party or
Property Entity to) settle any claim under any casualty insurance policies, if such claim involves any loss in excess of $1,000,000, without the prior written approval of Administrative Agent, acting at the direction of Majority Lenders, and the
Borrower shall use commercially reasonable efforts to cause each such policy that is renewed or entered into after the Closing Date to contain a provision to such effect. 
 6.08 COMPLIANCE. Comply, and cause the Aggregate Real Property (including the location, construction, occupancy, development, management, operation, sale, marketing and use thereof) to comply in all
material respects, with all Entitlements, all Permitted Exceptions and all Laws, including all Environmental Laws, applicable to it or to the Core Businesses or the Aggregate Real Property. 
 6.09 BOOKS AND RECORDS. Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP
consistently applied shall be made of all financial transactions and matters involving the assets and business of Borrower or each other member of the Consolidated Group, as the case may be. 
 6.10 INSPECTION RIGHTS. Upon the reasonable request of Administrative Agent or any Lender, allow Administrative Agent and/or any Lender and
their representatives to inspect any of their Aggregate Real Property, to review reports, files, and other records maintained in the ordinary course of the Core Businesses, from time to time, during reasonable business hours; provided that unless a
Default or Event of Default has occurred and is continuing and except in the case of Administrative Agent and its representatives, Borrower shall not be responsible for the costs and expenses of such inspections more than once per fiscal year, other
than in connection with inspections regarding the accuracy, truthfulness or completeness of any Borrowing Base Report. 
 6.11
USE OF PROCEEDS. Use the proceeds of the Loans solely to refinance the Borrower’s revolving credit facilities debt and to provide working capital needs for the Core Businesses in a manner consistent with the provisions of this Agreement and
other general corporate purposes, including the acquisitions and Investments permitted under Sections 7.03, 7.04, and 7.05 hereof. 
  

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 6.12 NEW SUBSIDIARIES. Promptly, and in any event within twenty (20) days after the
formation or acquisition of any new direct or indirect Subsidiary of Parent or Borrower after the date hereof (a) notify Administrative Agent and each Lender of such event, (ii) cause each such Subsidiary which is not an Excluded
Subsidiary to become a party to the Unconditional Guarantee, the Security Agreement and each other applicable Security Document in accordance with the terms thereof and amend the Security Documents (and related filings) as appropriate in light of
such event to pledge to Administrative Agent for the benefit of itself and the Lenders all assets of such Subsidiary, and, in each case, execute and deliver all documents or instruments required thereunder or appropriate to perfect the security
interests created thereby, (iii) cause each document (including each Uniform Commercial Code financing statement) required by applicable Laws or reasonably requested by Administrative Agent to be filed, registered or recorded in order to create
in favor of Administrative Agent for the benefit of itself and the Lenders a valid, legal and perfected first priority Lien on the Collateral subject to the Security Documents to be so filed, registered or recorded and evidence thereof delivered to
Administrative Agent and (iv) deliver an opinion of counsel in form and substance reasonably satisfactory to Majority Lenders with respect to each such Person and the matters set forth in this Section 6.12(a). 
 6.13 INTANGIBLE, RECORDING AND STAMP TAX. Promptly pay all intangible taxes or documentary stamp taxes assessed against the Loan Parties,
Property Entities, Administrative Agent or any of Lenders as a result of this Agreement, recordation of any Deed of Trust or any document related hereto, if any. 
 6.14 FURTHER ASSURANCES. At any time and from time to time, execute, acknowledge and deliver such further documents, agreements and instruments and take such further action as may reasonably be requested
by Administrative Agent, in each case further and more perfectly to effect the purposes of this Agreement and the other Loan Documents, including, from time to time to better assure, preserve, protect and perfect the interest of Administrative Agent
in the Collateral and the rights and remedies of Administrative Agent under the Loan Documents. Without limiting the foregoing, to the extent that Administrative Agent, acting at direction of Majority Lenders, determines from time to time that
additional deeds of trust, amendments to deeds of trust, financing statements, subordinations and other documents are required in order to perfect all Liens and encumbrances in favor of Administrative Agent, and cause all Collateral encumbered by
any of the Deeds of Trust to be subject only to Permitted Exceptions, Borrower shall execute and deliver such documents, instruments and other agreements as Administrative Agent or Majority Lenders may reasonably request. 
 6.15 SENIOR UNSECURED NOTES. Immediately upon the purchase of Senior Unsecured Notes by any Loan Party, and unless such Senior Unsecured
Notes are retired or cancelled, such Loan Party shall takes such actions as requested by Administrative Agent, acting at the direction of Majority Lenders, in order the grant and convey to Administrative Agent for the benefit of itself and the
Lenders, as security for the Obligations, a valid and perfected first priority Lien on such Senior Unsecured Notes. 
  

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 6.16 SPECIAL COVENANTS RELATING TO COLLATERAL. 
 (a) Defense of Title. Borrower shall (or shall cause the applicable Loan Party or Property Entity, as applicable, to) defend the Collateral,
the title and interest therein of Borrower (or the applicable Loan Party or Property Entity) represented and warranted in the Security Documents and the legality, validity, binding nature and enforceability of each Lien and encumbrance contained in
the Security Documents and the first priority of the Security Documents against all matters, including: (a) any attachment, levy, or other seizure by legal process or otherwise of any or all Collateral; (b) except for Permitted Exceptions,
any Lien or encumbrance or claim thereof on any or all Collateral; (c) any attempt to foreclose, conduct a trustee’s sale, or otherwise realize upon any or all Collateral under any Lien or encumbrance, regardless of whether a Permitted
Lien and regardless of whether junior or senior to the Security Documents; and (d) any claim questioning the legality, validity, binding nature, enforceability or priority of the Security Documents. Borrower shall notify Administrative Agent
and each Lender promptly in writing of any of the foregoing and will provide such information with respect thereto as Administrative Agent may from time to time request. During the period of time that Borrower is not able to comply with the
covenants set forth herein for a Project or portion thereof for a period of thirty (30) days following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure such non-compliance within such thirty
(30) day period, such thirty (30) day period shall be extended for a reasonable period not in excess of thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have
commenced such cure within such thirty (30) day period and shall diligently thereafter proceed to effect such cure), then such Project (or portion thereof, as the case may be) shall cease to have any value in the computation of the Borrowing
Base until Borrower shall so comply. 
 (b) [Reserved]. 
 (c) Plats, Annexations and Approvals. For each Project or any portion thereof to be included in the Borrowing Base: 
 (i) Each plat, Tentative Map or Final Map with respect to any portion of any Project shall comply with all Laws and shall be
satisfactory in form and substance to Majority Lenders. Prior to evaluation by Majority Lenders of the plat or map for approval, Borrower shall deliver to Administrative Agent such certifications, maps, surveys and other documents and information as
Majority Lenders requires. Prior to the recordation of any plat or map relating to any Borrower Real Property, Borrower shall deliver to Administrative Agent such title insurance endorsements insuring the continued priority of the Deed of Trust
after recording of the plat or map as Majority Lenders may require. Borrower agrees to take such steps as Majority Lenders may require in (i) either re-recording the Deed of Trust or amending the Deed of Trust to reflect the new plat legal
description, and (ii) obtaining an endorsement to the Title Policy to amend the legal description therein. 
 (ii) Based on the applicable stage of development, Borrower shall obtain and, upon request, provide Administrative Agent with, evidence of: (i) appropriate Entitlements for the use, entitlement, management, development, operation,
marketing and sale of each Project or portion thereof and compliance therewith in all material respects; (ii) all necessary approvals and permits of Governmental Authorities and other third parties necessary to permit the use, entitlement,
management, development, operation,

  

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marketing and sale of each Project or portion thereof, including all applicable public reports, architectural committee approvals, public offering statements, exemptions and other approvals
required pursuant to any applicable Laws or Permitted Exceptions; (iii) all Entitlements necessary to commence, carry out and complete Horizontal Improvements or Vertical Construction; and (iv) evidence of payment of all fees and other
required amounts for such approvals and permits. 
 (iii) At Administrative Agent’s or any Lender’s
request, Borrower shall provide Administrative Agent or such Lender with true and correct copies of all documents and instruments relating to proposed easements, boundary line adjustments, covenants, conditions and restrictions and other similar
matters affecting title to each Project or portion thereof in connection with the use, entitlement, management, development, operation, marketing and sale thereof, together with all surveys, plats, contracts and other information requested by
Administrative Agent or such Lender in connection therewith. Such easements, boundary line adjustments, covenants, conditions and restrictions and other matters shall not be entered into by Borrower unless consented to in writing by Majority
Lenders, which consent shall not be unreasonably withheld by Majority Lenders, so long as they are entered into in the ordinary course of developing each Project. If such consent is granted by Majority Lenders, Administrative Agent on behalf of
itself and the Lenders will also enter into such subordinations and releases as may be appropriate in connection with such easements, boundary line adjustments and covenants, conditions and restrictions, provided that such subordinations are in form
satisfactory to Majority Lenders, and, in connection with any such releases, Borrower has satisfied the conditions precedent set forth in Section 8.03. 
 In the event that Borrower is not able to comply with the covenants set forth herein for a Project or portion thereof for a period of ten (10) days following written notice from Administrative Agent
(provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day period shall be extended for a reasonable period not in excess of thirty (30) days from the date of
Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced such cure within such ten (10) day period and shall diligently thereafter proceed to effect such cure), then such Project (or portion
thereof, as the case may be) shall cease to have any value in calculation of the Borrowing Base until Borrower shall so comply. 
 (d) Utilities. Borrower shall provide or cause to be provided all telephone service, electric power, storm sewer, sanitary sewer and water facilities for each Project, and such utilities will be adequate to serve such Project in all
material respects. No condition will exist to affect Borrower’s right to connect into and have adequate use of such utilities, except for the payment of normal connection charges or tap charges and except for the payment of subsequent charges
for such services to the utility supplier. In the event that Borrower is not able to comply with the covenants set forth herein for a Project or portion thereof for a period of ten (10) days following written notice from Administrative Agent
(provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day period shall be extended for a reasonable period not in excess of thirty (30) days from the date of
Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced

  

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such cure within such ten (10) day period and shall diligently thereafter proceed to effect such cure), then such Project (or portion thereof, as the case may be) shall cease to have any
value in calculation of the Borrowing Base until Borrower shall so comply. 
 (e) Plans, Drawings and Specifications. Borrower
shall be the sole owner of all Plans, Drawings and Specifications for the Improvements for each Project or, to the extent that Borrower is not the sole owner of such Plans, Drawings and Specifications, Borrower shall have the unconditional right to
use such Plans, Drawings and Specifications in connection with the construction of the Improvements for such Project. None of Administrative Agent nor any Lenders will be restricted in any way in use of such Plans, Drawings and Specifications from
and after a Default in connection with the Horizontal Improvements or Vertical Construction of the Improvements and the exercise of Administrative Agent’s and Lenders’ other rights and remedies, and Borrower shall obtain all consents and
authorizations necessary for the use of such Plans, Drawings and Specifications by Administrative Agent on behalf of itself and the Lenders. In the event that Borrower is not able to comply with the covenants set forth herein for a Project or
portion thereof for a period of ten (10) days following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day period shall be
extended for a reasonable period not in excess of thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced such cure within such ten (10) day period and
shall diligently thereafter proceed to effect such cure), then such Project (or portion thereof, as the case may be) shall cease to have any value in calculation of the Borrowing Base until Borrower shall so comply. 
 (f) Compliance with Permitted Exceptions. Borrower shall keep and maintain in full force and effect all restrictive covenants, development
agreements, easements and other similar agreements with Governmental Authorities and other Persons that are necessary or desirable for the use, entitlement, management, development, operation, marketing and sale of each Project. Borrower shall not
default in any material respect under any such covenants, development agreements, easements and other agreements and will diligently enforce its rights thereunder. In the event that Borrower is not able to comply with the covenants set forth herein
for a Project or portion thereof for a period of ten (10) days following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day
period shall be extended for a reasonable period not in excess of thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced such cure within such ten
(10) day period and shall diligently thereafter proceed to effect such cure), then such Project (or portion thereof, as the case may be) shall cease to have any value in calculation of the Borrowing Base until Borrower shall so comply.

 (g) Project Development. For each Project: 
 (i) Borrower shall at all times, in all material respects, develop, maintain and operate the Projects and use its best
efforts to market and sell Units in each Project. Borrower shall pay all costs and expenses arising in connection with the management, use, entitlement, development, operation, marketing and sale of each Project. The Improvements for each Project
shall be constructed and developed in conformity in all material respects with the Plans, Drawings and Specifications therefor, and shall be contained

  

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wholly within the lot lines of the land included within the Project and will not encroach in any material respect on any other real estate, easements, building lines or setback requirements.
Within ten (10) days after Borrower receives notice or knowledge thereof, Borrower shall proceed with diligence to correct any material departure from applicable Plans, Drawings and Specifications and any departure from applicable laws, rules
and regulations of any Governmental Authority with jurisdiction over such Project. 
 (ii) With respect to those
portions of each Project which are to be “open space” or otherwise constitute streets and other common areas to be Dedications to homeowners’ associations or other Governmental Authorities with jurisdiction over such Project and are
not otherwise included within the portions of the Borrower Real Property to be developed by Borrower, Borrower shall take such actions as may be necessary to cause such Dedications to be made promptly and in accordance with applicable covenants,
conditions and restrictions and Law. Majority Lenders’ may notify Borrower that such Dedications are required, in which case Borrower shall cause such Dedications to occur within thirty (30) days after such notification. 
 In the event that Borrower is not able to comply with the covenants set forth herein for a Project or portion thereof for a period of ten (10) days
following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day period shall be extended for a reasonable period not in excess of
thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced such cure within such ten (10) day period and shall diligently thereafter proceed to effect such
cure), then such Project (or portion thereof, as the case may be) shall cease to be included in the Borrowing Base until Borrower shall so comply. 
 (h) Title Policy Endorsements. If required by Majority Lenders, from time to time in connection with the approvals that may be granted by Majority Lenders pursuant to the Loan Documents, Borrower shall
provide such continuation endorsements, date down endorsements, survey endorsements and other endorsements to each Title Policy for each Project or Asset, as the case may be, in form and substance satisfactory to Majority Lenders as they determine
are necessary to insure the priority of each Deed of Trust as a valid first Lien on the applicable Collateral, subject only to Permitted Exceptions. Borrower agrees to furnish to the Title Company, at Borrower’s sole cost and expense, such
surveys and other documents and information as Majority Lenders or the Title Company may require for the Title Company to issue such endorsements. In the event that Borrower is not able to comply with the covenants set forth herein for a Project or
Asset, as the case may be, for a period of ten (10) days following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure such non-compliance within such ten (10) day period, such ten (10) day
period shall be extended for a reasonable period not in excess of thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance provided that Borrower shall have commenced such cure within such ten
(10) day period and shall diligently thereafter proceed to effect such cure), then such Project or Asset, as the case may be, shall cease to have any value in calculation of the Borrowing Base until Borrower shall so comply. 
  

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 (i) Improvement Districts. For any Project, without obtaining the prior written consent of
Majority Lenders, Borrower shall not consent to, or vote in favor of, the inclusion of all or any part of the Collateral in any improvement district, any “Mello Roos” district (for Projects in California), special assessment district or
similar district. Borrower shall give immediate notice to Administrative Agent and each Lender of any notification or advice that Borrower may receive from any municipality or other third party of any intent or proposal to include all or any part of
the Collateral in an improvement, assessment or other district. Upon prior written notice to Borrower, Administrative Agent, acting at the direction of Majority Lenders, shall have the right to file a written objection to the inclusion of all or any
part of the Collateral in an improvement, assessment or other district, either in its own name or in the name of Borrower or any Lender, and to appear at, and participate in, any hearing with respect to the formation of any such district. In the
event that Borrower is not able to comply with the covenants set forth herein for a Project or portion thereof for a period of ten (10) days following written notice from Administrative Agent (provided that if Borrower cannot reasonably cure
such non-compliance within such ten (10) day period, such ten (10) day period shall be extended for a reasonable period not in excess of thirty (30) days from the date of Administrative Agent’s notice to cure such non-compliance
provided that Borrower shall have commenced such cure within such ten (10) day period and shall diligently thereafter proceed to effect such cure), then such Project shall cease to have any value in calculation of the Borrowing Base until
Borrower shall so comply. 
 (j) Appraisals. 
 (i) Appraisal Requirements. The form and substance of each Appraisal must be reasonably satisfactory to Majority
Lenders, provided that in reviewing Appraisals, Majority Lenders shall apply the policies and procedures generally used by Majority Lenders in their real estate lending activities. Each Appraisal of Borrower Real Property that is Unimproved Land,
Land Under Development or Finished Lots shall be based upon the “bulk finished appraised value” of such Borrower Real Property. Each Appraisal of Borrower Real Property that are Homes Under Construction or Model Homes will be at least a
“FNMA plan type appraisal”. Each Appraisal must include, without limitation, the following information: (i) a narrative economic and demographic feasibility analysis of the market, including a supply and demand comparison; (ii) a
narrative comparison of each subject Asset to competing projects in the same metropolitan area; (iii) a base plan type value for each type of Unit in each Asset; and (iv) a market and absorption study for each Asset. All Appraisals must
comply with the appraisal policies and procedures of Majority Lenders and with all applicable laws, rules, and regulations, including the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended. All Appraisals shall be
addressed to each Lender and their respective successors and assigns for their reliance. 
 (ii) Appraiser
Engagement. Each Appraisal must be prepared by either (1) an M.A.I.-certified appraiser selected by Majority Lenders and reasonably approved by Borrower, or (2) by the an M.A.I.- certified appraiser employed in the real property
appraisal department of Majority Lenders’ selection of either Ernst & Young, PriceWaterhouse Coopers, KPMG or Deloitte, and which appraiser shall be engaged by Majority Lenders. Upon request by Majority Lenders, Borrower will provide
to Majority Lenders all information (including Lot and Unit premiums and upgrades, if applicable) necessary to allow an

  

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Appraisal to be ordered by Majority Lenders. Majority Lenders will engage an appraiser to perform an Appraisal only when it receives all information deemed necessary by the Majority Lenders and
the appraiser for preparation of such Appraisal. Majority Lenders will not have any liability to Borrower or any other Person with respect to delays in the Appraisal process. Borrower and its Affiliates will not employ any appraiser that prepares an
Appraisal for any of the Borrower Real Property unless specifically requested to do so by Majority Lenders. Majority Lenders may employ a staff appraiser or a fee appraiser and Borrower will reimburse Majority Lenders at Majority Lenders’
reasonable cost therefor. 
 (iii) Appraisal Evaluation. Upon receipt of an Appraisal, Majority Lenders
will review the Appraisal in accordance with the appraisal policies and procedures of Majority Lenders and establish an Appraised Value. Majority Lenders will notify Borrower of such Appraised Value. 
 (iv) Appraisals. Notwithstanding anything in this Section 6.16(j) to the contrary, Majority Lenders may order
Appraisals or updated Appraisals as set forth below. 
 (A) Majority Lenders may order Appraisals or updated
Appraisals at any time and from time to time if required by any Law; 
 (B) Majority Lenders may order Appraisals
for up to one-third of all Eligible Real Property Collateral as it elects each calendar year; 
 (C) Within 45
days following the receipt of any Borrowing Base Report, Majority Lenders may order an Appraisal on any Borrower Real Property that was first added to Eligible Real Property Collateral during the quarter ending on the date of such Borrowing Base
Report if the Majority Lenders do not approve the Net Present Value of Projected Revenues and Net Present Value of Projected Total Project Costs included in the Certified Net Cash Flow Report included as part of such Borrowing Base Report;

 (D) Within 90 days following the receipt of Financial Statement that reflects an impairment or write down of
the carrying or book value of any Eligible Real Property Collateral, the Majority Lenders may order an Appraisal on the Eligible Real Property Collateral with respect to which such impairment or write down was recorded in the books and records of
the Borrower for financial statement purposes; 
 (E) In the event that Borrower reasonably believes that there
has been a material increase in the value of any Borrower Real Property since the previous Appraisal of such Borrower Real Property, then not less than six (6) months after the date of such previous Appraisal, Borrow may request that Majority
Lenders order a new Appraisal of such Borrower Real Property from the appraiser that prepared the previous Appraisal; 
  

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 (F) Not more than once every six (6) months on any Asset where the
existing Appraised Value is lower than the amount determined in the first sentence of the definition of “Eligible Real Property Collateral Valuation”, Borrower may request that Lender order a new Appraisal; and 
 (G) Majority Lenders may order updated or new Appraisals at any time and from time to time. 
 (v) Expenses. Borrower shall pay the cost and expense of all Appraisals obtained by Majority Lenders in connection with the
Loan; provided, however, that, except with respect to Appraisals ordered after the occurrence of a Default, or pursuant to Sections 6.16 (j)(ii), or 6.16(j)(iv)(A), (B), (C), (D), (E) or (F) with respect to any particular Asset, Lots or
Units. Unless Borrower is required to pay the cost and expense of an Appraisal under the previous sentence, Lender shall pay for an Appraisal ordered under 6.16(j)(iv)(G). Other than as set forth in the immediately preceding sentence, Borrower will
reimburse Majority Lenders for all costs and expenses incurred in the appraisal process and in establishing and monitoring Appraised Values. All reimbursements by Borrower to Majority Lenders required by this Section 6.16(j)(v) will be paid to
Majority Lenders within fifteen (15) days after notice from Majority Lenders to Borrower. 
 (vi) No
ordering of any Appraisal under any of Sections 6.16(j)(iv)(A) through (G), inclusive, shall limit Lender’s right to order Appraisals under any of such sections (for example, an Appraisal ordered under Section 6.16(j)(iv)(F) will not count
against Lenders’ rights under Section 6.16(j)(iv)(B)). 
 (k) Group B Property. Borrower shall have satisfied all of the
conditions related to the Group B Property set forth in Sections 4.02 and conveyed to Administrative Agent for the benefit of itself and the Lenders an enforceable first priority Lien on such Group B Property and Group B Projects on or before the
earlier to occur of the date (i) that is sixty (60) days after the Closing Date, (ii) the Second Term Loan Funding Date or (iii) the Delayed Draw Closing Date. 
 6.17 PAPA OBLIGATIONS. Without limitation of the other provisions of this Agreement, it is acknowledged and agreed by Borrower (a) that
a portion of the proceeds of the Loan will be used for acquisitions and development of Real Property which is Eligible Real Property Collateral as to which the PAPA Obligations exist, including toward fulfilling certain development obligations to
the parties owed such PAPA Obligations and performance and payment of PAPA Obligations when due, (b) that Borrower shall not engage in acts or omissions which would cause a default under any PAPA Obligations (or trigger any buyback, repurchase
options or rights of first refusal, and in no event shall any sale pursuant to those matters constitute a sale in the ordinary course of the Core Businesses), (c) that Borrower shall promptly provide evidence of compliance with all PAPA
Obligations upon Administrative Agent’s request and without request to promptly provide notice of any default or asserted default with respect to any PAPA Obligations, (d) that upon Administrative Agent’s request, Borrower will
promptly provide evidence of compliance with any options held by the Consolidated Group to acquire Real Property and without request promptly provide notice of any exercise, pending expiration or default or asserted default under any such options,
and (e) except to the extent that Borrower is required by the

  

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Entitlements to improve areas adjacent to the Boundaries of the Borrower Real Property, in no event shall Borrower use (or allow any other Person to use) any proceeds of the Loan to improve any
Real Property which is not actually owned by Borrower (whether or not an option is held thereon). Further, notwithstanding anything to the contrary in this Agreement, in no event shall any Real Property or any such option to acquire Real Property be
transferred by Borrower to any Affiliate or Related Party or any member of the Consolidated Group including that no such transfer shall be permitted in connection with any transaction contemplated with respect to Article VIII. 
 6.18 TRANSFER OF CF PROPERTY AND MF PROPERTY TO BORROWER. Concurrently with the repayment of the Existing Secured Indebtedness secured by
the MF Property and/or CF Property, or any portion thereof, Borrower shall (a) cause the MF Property Owner or the CF Property Owner, or the applicable portion thereof, as applicable, to transfer fee title of the MF Property or CF Property, as
applicable, to Borrower and (b) deliver the Title Policy to Administrative Agent and cause such Real Property (together with all appurtenant Personal Property) to become Collateral hereunder and under the Security Documents. Concurrently with
the repayment and satisfaction of the Existing Secured Indebtedness (other than in connection with repayment and reconveyance of portions of the Existing Secured Indebtedness to allow closings of retail sales of lots or units in the ordinary course
of business at arm’s length to Persons other than Related Parties), with respect to the: (a) CF Property, or any portion thereof, (i) cause the Lien of the deed(s) of trust securing the Existing Secured Indebtedness to be fully
reconveyed, (ii) convey fee title of the CF Property, or applicable portion thereof, to Borrower, (iii) execute, acknowledge and record in the Official Records, a Deed of Trust, subject only to Permitted Exceptions, as a Lien against the
CF Property, or the applicable portion thereof, and (iv) cause the Title Policy to be issued; and (b) MF Property, or any portion thereof, (i) cause the Lien of the deed(s) of trust securing the Existing Secured Indebtedness to be
fully reconveyed, (ii) convey fee title of the MF Property, or applicable portion thereof, to Borrower, (iii) execute, acknowledge and record in the Official Records, a Deed of Trust, subject only to Permitted Exceptions, as a Lien against
the MF Property, or the applicable portion thereof, and (iv) cause the Title Policy to be issued. 
 6.19 PROPERTY
TRANSFERS. If at any time Borrower owns any Real Property (that is not released pursuant to Article VIII) that is not subject to the Lien of a Deed of Trust, Borrower shall upon request of Majority Lenders, as soon as reasonably practicable:
(i) execute, acknowledge and record in the Official Records, a Deed of Trust (or an amendment to an existing Deed of Trust to include such added Real Property as Collateral), subject only to Permitted Exceptions, as a Lien on such Real
Property; and (ii) cause a Title Policy (or an endorsement to an existing Title Policy, as required by Majority Lenders, insuring the priority of the Deed of Trust on such added Real Property) to be issued. 
  

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 ARTICLE VII. 
 NEGATIVE COVENANTS 
 So long as any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, Borrower shall not, nor shall it permit any member of the Consolidated Group to, directly or indirectly: 
 7.01 PERMITTED INDEBTEDNESS. Incur or permit to exist or remain outstanding any Indebtedness; provided, however, that the Loan Parties may incur or permit to exist or remain outstanding the following
Indebtedness (“Permitted Indebtedness”): 
 (a) Indebtedness of any Loan Party arising under this Agreement or
the other Loan Documents; 
 (b) Indebtedness in respect of taxes, assessments, governmental charges, and claims for labor,
materials or supplies, to the extent that payment thereof is not yet due or is being contested in good faith by appropriate proceedings, and an adequate reserve has been established therefor and is maintained in accordance with GAAP; 
 (c) [reserved]; 
 (d) Indebtedness incurred to finance the purchase of equipment used in the ordinary course of the Core Businesses in an aggregate amount not to exceed $5,000,000, and provided that at any time outstanding and extensions, renewals,
refinancings and replacements thereof; provided that (i) the principal amount of any such refinancing does not exceed the principal amount of the Indebtedness being refinanced and (ii) the material terms and provisions of any such
refinancing (including redemption, prepayment, security, default and subordination provisions) are no less favorable to the applicable Loan Party and the Lenders than the Indebtedness being refinanced (other than the interest rate and fees under
such refinanced Indebtedness which may be at a rate consistent with the rates and fees then prevailing in the market for similar Indebtedness for borrowers engaged in the Core Businesses and with similar credit risks as Borrower); 
 (e) Indebtedness of any Loan Party arising under the Indentures in an aggregate principal amount not to exceed $395,133,000 and extensions,
renewals, refinancings and replacements thereof; provided that (i) the principal amount of any such refinancing does not exceed the principal amount of the Indebtedness being refinanced, (ii) the maturity date of such Indebtedness is
extended beyond the first anniversary of the Maturity Date and (iii) the material terms and provisions of any such refinancing (including redemption, prepayment, security, default and subordination provisions) are no less favorable to the
applicable Loan Party and the Lenders than the Indebtedness being refinanced (other than the interest rate and fees under such refinanced Indebtedness which may be at a rate consistent with the rates and fees then prevailing in the market for
similar Indebtedness for borrowers engaged in the Core Businesses and with similar credit risks as Borrower); 
 (f) Secured
Debt in an aggregate amount not to exceed at any time the Maximum Permitted Secured Indebtedness; 
  

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 (g) Indebtedness of MF Owner or CF Owner incurred in accordance with Section 7.12
hereof. 
 7.02 PERMITTED LIENS. Create or permit to exist any Lien on any Property of Borrower or any member of the
Consolidated Group, including Parent, whether now or hereafter acquired, except for the following (the “Permitted Liens”): 
 (a) Liens and other encumbrances arising from attachments or similar proceedings, pending litigation, judgments or taxes or assessments or government charges in any such event whose validity or amount is
being contested in good faith by appropriate proceedings and for which adequate cash reserves have been established and are maintained in accordance with GAAP, or taxes and assessments which are not due and delinquent; 
 (b) Mechanics’ Liens; 
 (c) pledges or deposits made in connection with workmen’s compensation, employee benefit plans, unemployment or other insurance, old age pensions, or other Social Security benefits; 
 (d) Liens securing Indebtedness permitted under Sections 7.01(d) and (f); provided that in the case of in the case of Liens securing
Indebtedness permitted under Section 7.01(d), such Liens exist at the time such equipment was acquired and in any event such Liens extend only to the property acquired; 
 (e) precautionary Uniform Commercial Code financing statements related to equipment leases or other operating leases in the ordinary course
of business; 
 (f) easements, rights-of-way and other such restrictions of record customary in any of the Core Businesses and
which do not diminish the value of the subject Collateral; 
 (g) Liens in favor of Administrative Agent and the Lenders under
or pursuant to this Agreement and the other Loan Documents; 
 (h) Liens on Excluded Assets; 
 (i) Permitted Exceptions; 
 (j) rights of setoff or bankers’ Liens upon deposits of cash in favor of banks or other depository institutions whether arising by contract or operation of law, incurred in the ordinary course of business so long as such deposits are
not intended to be collateral for any obligations; 
 (k) Liens in favor of the trustees under Section 7.07 of the
Indentures; 
 (l) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness permitted under
Section 7.01(d) (provided no such Liens encumber any Aggregate Real Property) and (f) to the extent such extensions, renewals or refinancings individually and in the aggregate are in accordance with the terms of Section 7.01(d) and
(f); provided that any

  

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extension, renewal or replacement Lien (i) is in each case limited to the assets covered by the existing Lien and (ii) secures Indebtedness individually and in the aggregate which is no
greater in amount than the Indebtedness secured by the existing Lien; and 
 (m) Liens securing Secured Intercompany Loans.

 7.03 INVESTMENTS. Make any Investments (other than by the Borrower in Borrower Real Property as necessary for the Core
Businesses and subject to Section 7.05), except: 
 (a) Cash Equivalents subject to a first priority perfected Lien in
favor of Administrative Agent for the benefit of itself and the Lenders; 
 (b) deposit accounts which are subject to Control
Agreements; 
 (c) Investments in Excluded Assets; 
 (d) Loans to officers, directors, board members, employees, shareholders or affiliates of Borrower made in the ordinary course of such Loan
Party’s business on such terms as are customary and reasonable for similarly situated companies, and in an aggregate principal amount outstanding at any time not in excess of $100,000; 
 (e) Investments in suppliers and customers of Borrower made in the ordinary course of such Loan Party’s business on such terms as are
customary and reasonable for similarly situated companies, and in an aggregate amount outstanding during any rolling twelve (12) month period not in excess of $100,000; 
 (f) Investments existing on the date hereof and set forth on Schedule 7.03(f) hereto; 
 (g) Investments by Borrower in WL Southwest; provided that such Investments (i) consist solely of Units, (ii) at the time any such
Unit is transferred, WL Southwest has entered into a binding purchase and sale agreement with a bona fide arm’s length (other than a sale to an employee in accordance with the provisions of Section 8.01(b)(ii)) all cash purchaser retail
end-user for such Unit, (iii) immediately after the transfer of title to such Unit to WL Southwest such Unit shall be transferred, through the same escrow as part of the same transaction, to such purchaser and (iv) the Net Proceeds from
such sale are paid directly to Borrower; and 
 (h) Investments in accordance with Sections 7.12 or 7.13. 
 7.04 FUNDAMENTAL CHANGES. Do any of the following: 
 (a) merge or consolidate with or into any Person, except that Subsidiaries of Borrower may merge into a Loan Party; provided that such Loan Party must be the survivor; 
 (b) dispose of any Property other than (i) Asset Sales in compliance with Section 2.03(c)(i) (provided that no Asset Sale of all
or substantially all of the property of a Loan Party or Equity Securities of any Loan Party may be made) or (ii) Asset Sales permitted under and in compliance with Article VIII; 
  

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 (c) commence Vertical Construction on the Project listed on Schedule APT; and 
 (d) sell, dispose of or otherwise transfer any Equity Securities of a Subsidiary of Borrower that is the borrower under any Secured
Intercompany Loan at any time that such Secured Intercompany Loan is outstanding. 
 7.05 ACQUISITIONS. Acquire any fee or other
interest in Real Property (whether by exercise of an option or otherwise) unless (i) the member of the Consolidated Group acquiring such Real Property is Borrower, (ii) a fully executed and acknowledged Deed of Trust for the Real Property
shall concurrently with Borrower’s acquisition of the Real Property, be recorded in the Official Records, and upon recordation of the Deed of Trust, Administrative Agent shall have received a Title Policy issued by the Title Company,
(iii) an Appraisal if required under Section 6.16(j)(iv)(C) (obtained at Borrower’s sole cost and expense) of such Real Property showing the Appraised Value of the Real Property at least equal to the gross purchase price of the Real
Property being acquired has been delivered to Administrative Agent, (iv) such Real Property is used in the Core Businesses and (v) the aggregate gross purchase price paid by or on behalf of Borrower for Unentitled Land shall not exceed
$5,000,000 in the aggregate during any twelve (12) month period. In furtherance of the foregoing, Borrower shall, or shall cause the applicable Loan Party, to execute and deliver such financing statements, subordinations and other documents
requested by Administrative Agent, acting at the direction of Majority Lenders, necessary or advisable to grant and convey a first priority perfected Lien in the Real Property. 
 7.06 TRANSACTIONS WITH AFFILIATES. Enter into any agreement to pay any fees, wages, salary, bonus, commission, contributions to benefit
plans or any other compensation for goods or services or otherwise enter into any other agreement or arrangement, including for the transfer of assets, with its Affiliates or to or for the benefit of any Person who is a director or officer of the
Consolidated Group or any of its Affiliates or who has, or any of whose Affiliates has, a beneficial interest in the capital stock or partnership interests of any of the Consolidated Group or any of its Affiliates, except in the ordinary course of
and pursuant to the reasonable requirements of such member’s business and upon terms and conditions materially no more favorable than those such member would be willing to enter into with an unaffiliated third party. At the request of
Administrative Agent, Borrower shall provide computations and evidence of compliance with this Section 7.06. Borrower shall not sell, convey, grant, quitclaim, lease or otherwise transfer any Borrower Real Property to CF Owner, MF Owner, any
Joint Venture, or any Related Parties, Subsidiaries or Affiliates of Borrower. Borrower shall not permit: (i) CF Owner to sell, convey, grant, quitclaim, lease or otherwise transfer any CF Property to any of MF Owner, any Joint Venture, or any
Related Parties, Subsidiaries or Affiliates of CF Owner or Borrower, other than Borrower; or (ii) MF Owner to sell, convey, grant, quitclaim, lease or otherwise transfer any MF Property to any of CF Owner, any Joint Venture, or any Related
Parties, Subsidiaries or Affiliates of MF Owner or Borrower, other than Borrower. No amendment, modification, renewal or extension (other than renewals or extensions on arm’s length market terms) shall be entered into in connection with any
existing documents or agreements between the Borrower, Parent or any of their Affiliates, on the one hand, and any of their Affiliates on the other hand, including the lease agreement referenced in Section 7.08(c). 
  

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 7.07 SENIOR UNSECURED NOTES. 
 (a) Except as contemplated by Section 7.01(e) in connection with refinancings or replacements, issue additional Senior Unsecured Notes.

 (b) Without the prior written consent of Majority Lenders: 
 (i) prepay, purchase, redeem or otherwise acquire any Senior Unsecured Notes, provided, however, that nothing contained in
this Section 7.07 shall prevent any Loan Party from making required payments of principal and interest on any Senior Unsecured Notes if no Default or Event of Default exists and the payments would not cause a Default or Event of Default to
occur; or 
 (ii) permit the modification, waiver or amendment of any of the terms of the Indentures, except for
modifications, waivers or amendments permitted in accordance with Section 7.01(e). 
 7.08 PERMITTED DISTRIBUTIONS. Make
any Distributions; provided that: 
 (a) Subsidiaries may make Distributions to Borrower; 
 (b) The Borrower and Parent may make a Distribution to the extent that (i) such Distribution would be permitted under the terms of each
of the Indentures as in effect on the date hereof (whether or not on the date of the relevant Distribution such Indentures are then in effect), (ii) (x) the Indebtedness incurred under each of the Senior Unsecured Notes is not outstanding
on the date of the proposed Distribution (unless the regularly scheduled maturity date of such Indebtedness shall be after the date which is one year from the Maturity Date) and (y) the Borrower provides evidence reasonably satisfactory to
Majority Lenders of its ability to repay the Loans and its other obligations under the Loan Documents after giving effect to the Distribution; 
 (c) Payments of rent under the that certain Lease Agreement dated and in effect on April 1, 2003, between WHL 1976 T, LLC by: William Harwell Lyon 1976 Trust (its managing member) and William Lyon
Homes, Inc., relating to the headquarters of Borrower, as in effect from April 1, 2003; 
 (d) Distributions by Joint
Ventures; and 
 (e) Investments permitted by Sections 7.03(g) and 7.13 to the extent such Investments would also constitute a
Distribution. 
 7.09 CHANGE IN NATURE OF BUSINESS. Engage in any material line of business different from any of the Core
Businesses. 
 7.10 USE OF PROCEEDS. Use the proceeds of the Loan, in violation of the Margin Regulations, or for the purpose of
purchasing or carrying any “margin stock” as defined in the Margin Regulations or reducing or retiring any Indebtedness which was

  

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originally incurred to purchase or carry “margin stock” or for any other purpose which might make this transaction a “purpose credit” within the meaning of the Margin
Regulations. 
 7.11 NO OTHER NEGATIVE PLEDGE. Covenant or otherwise agree with any Person (other than (a) the Lenders and
Administrative Agent pursuant to this Agreement and (b) with respect to the assets securing Permitted Construction Indebtedness, the lenders of such Permitted Construction Indebtedness), whether in connection with obtaining or modifying credit
accommodations from such Person, or incurring other Indebtedness, or otherwise, to keep its unencumbered assets free of any or all Liens. 
 7.12 INVESTMENTS IN MF OWNER AND CF OWNER. Make any Investments in MF Owner or CF Owner unless: 
 (a) such Investment is in the form of a loan or extension of credit (a “Credit Advance”); 
 (b) the borrower under such Credit Advance is either MF Owner or CF Owner; 
 (c)
such Credit Advance is evidenced by one or more secured promissory notes, which have been delivered to Administrative Agent; 
 (d) such Credit Advance is made solely to repay, in its entirety, and terminate the Existing Secured Indebtedness of MF Owner or CF Owner, as applicable; 
 (e) such Credit Advance is made directly to the lender, agent or trustee under such Existing Secured Indebtedness pursuant to a payoff letter or demand letter pursuant to which such lender, agent or
trustee has agreed to release its Liens on the MF Property or CF Property, as applicable, upon receipt of the amounts set forth in such letter; 
 (f) the documentation evidencing such Credit Advance, including the secured promissory notes, shall be in form and substance satisfactory to Majority Lenders and provide that the proceeds from any asset
sale (including the sale of Lots and Units) by MF Owner or CF Owner shall be paid directly to Borrower; 
 (g) Borrower, for the
benefit of Administrative Agent and as security for MF Owner’s or CF Owner’s obligations under such Credit Advance, is granted a first priority perfected Lien on all assets (including all Real Property and Personal Property) of MF Owner or
CF Owner, as applicable; and 
 (h) Administrative Agent, for itself and the Lenders, is granted a first priority perfected lien
in Borrower’s right, title and interest in and to the Credit Advance, the promissory note or notes issued in connection therewith and an assignment of all collateral pledged by MF Owner or CF Owner, as applicable, in connection with such Credit
Advance. 
 7.13 INVESTMENTS IN LAGUNA AND WHITNEY RANCH. Make any Investments in Laguna or Whitney Ranch unless: 
 (a) such Investment is in the form of a Credit Advance; 
  

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 (b) the borrower under such Credit Advance is either Laguna or Whitney Ranch; 
 (c) such Credit Advance is evidenced by one or more secured promissory notes, which have been delivered to Administrative Agent; 

(d) Laguna and Whitney Ranch may only use the proceeds from such Credit Advance for Vertical Construction and the marketing and sale of
Units; 
 (e) the documentation evidencing such Credit Advance, including the secured promissory notes, shall be in form and
substance satisfactory to Majority Lenders and provide that the proceeds from any asset sale (including the sale of Lots and Units) by Laguna or Whitney Ranch shall be paid directly to Borrower; 
 (f) Borrower, for the benefit of Administrative Agent and as security for Laguna’s or Whitney Ranch’s obligations under such
Credit Advance, is granted a first priority perfected Lien on all assets (including all Real Property and Personal Property) of Laguna or Whitney Ranch, as applicable; 
 (g) Administrative Agent, for itself and the Lenders, is granted a first priority perfected lien in Borrower’s right, title and interest in and to the Credit Advance, the promissory note or notes
issued in connection therewith and an assignment of all collateral pledged by Laguna or Whitney Ranch, as applicable, in connection with such Credit Advance; and 
 (h) all Credit Advances under this Section 7.13 shall not exceed an aggregate amount of $10,500,000. 
 7.14 [RESERVED]. 
 7.15 TANGIBLE NET WORTH. Permit Tangible Net Worth to be less
than $75,000,000 at the end of any fiscal quarter. 
 7.16 SECURED INDEBTEDNESS. 
 (a) Permit at any time Total Outstandings to exceed the Borrowing Base. 
 (b) Permit at any time Total Secured Debt to exceed Maximum Permitted Secured Indebtedness. 
 (c) Permit at any time the aggregate principal amount at any time outstanding of all Existing Secured Indebtedness to exceed $57,036,134.

 7.17 EXPENDITURES OUTSIDE OF CORE BUSINESSES. Permit expenditures (other than expenditures incurred in the acquisition,
development, construction or sale of Aggregate Real Property as part of the Core Businesses or otherwise in furtherance of the Core Business) to exceed $5,000,000 in the aggregate during any Annual Period without the prior written consent of
Majority

  

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Lenders; provided that, any expenditure or series of related expenditures in an amount less than or equal to $100,000 shall not be included in calculating such $5,000,000 limit. 
 7.18 EMPLOYEE COMPENSATION. Permit bonus compensation to be paid to employees of Borrower to exceed the greater of (a) eighteen percent
(18%) of pre-tax, pre-bonus Net Income of Consolidated Group, from which bonus compensation paid to each of General William Lyon and William H. Lyon shall not exceed, in each case, three percent (3%) of the pre-tax, pre-bonus Net Income of
Consolidated Group, or (b) twenty five percent (25%) of the aggregate consolidated annual pre-bonus payroll of Borrower. 
 7.19 [RESERVED]. 
 7.20 CHANGES IN KEY MANAGEMENT. Permit, at any time prior to the Maturity Date,
(a) Matthew R. Zaist (or any other individual approved by Majority Lenders as a substitute for him in accordance with the terms of this Section 7.21) to cease whether voluntarily or involuntarily to devote substantially all of his business
time to the management or operations of Parent or Borrower nor (b) any two of the existing members of Key Management (or any other individuals approved by Majority Lenders as a substitute for such individuals in accordance with the terms of
this Section 7.21) to cease whether voluntarily or involuntarily to devote substantially all of their business time to the management or operations of Parent or Borrower unless, in each case, a substitute or substitutes acceptable to Majority
Lenders is found for such individual or individuals within one hundred eighty (180) days of the date such individual announces his resignation or departure or is removed from his position (each, a “Departure”); provided, however, that
if a substitute or substitutes acceptable to Majority Lenders has not been appointed within such period but Borrower is diligently attempting to recruit such substitute or substitutes, this covenant shall not be deemed in breach until the two
hundred seventieth (270th) day from the date of the
relevant Departure. 
 7.21 EXCLUDED ASSETS. Permit the aggregate fair market value of all Excluded Assets to exceed $20,000,000
at any time. 
 7.22 IMPROVEMENTS. Without limitation of any other provisions of this Agreement regarding the Core Businesses or
use of the Aggregate Real Property, other than in the ordinary course of the Core Businesses, no portion of the Aggregate Real Property shall be removed, demolished or altered in any manner, if it diminishes the value of any Project by at least
$1,000,000, without the prior written consent of Majority Lenders. Further, if any Borrower Real Property or any portion thereof that is condemned, destroyed, removed, demolished or altered in any manner which diminishes the value of any Project,
then the Majority Lenders may exclude such Borrower Real Property from the Borrowing Base. 
 7.23 PAPA OBLIGATION. Neither
Borrower nor any other member of the Consolidated Group will borrow any amount from the holder of any PAPA Obligation, nor permit any advance of funds by the holder of any PAPA Obligation on behalf of Borrower or any member of the Consolidated Group
without prompt repayment of such advance in full. 
 7.24 NEGATIVE PLEDGE. Neither Borrower or any other Loan Party shall permit
or suffer to exist any Lien on or pledge of the Equity Securities of any member of the Consolidated Group. 
  

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 7.25 CF PROPERTY AND MF PROPERTY. Except for individual retail sales of lots or units to end
users in the ordinary course of business at arm’s length to Persons other than Related Parties, subject to the terms of the Existing Secured Indebtedness, Borrower shall not permit the CF Owner to, and the CF Owner shall not, transfer, convey,
grant, pledge, encumber sell, lease or assign the CF Property, or any portion thereof or interest therein, to any Person except Borrower. Except for individual retail sales of lots or units to end users in the ordinary course of business at
arm’s length to Persons other than Related Parties, subject to the terms of the Existing Secured Indebtedness, Borrower shall not permit the MF Owner to, and the MF Owner shall not, transfer, convey, grant, pledge, encumber sell, lease or
assign the MF Property, or any portion thereof or interest therein, to any Person except Borrower. 
 7.26 REFINANCED WACHOVIA
REVOLVING CREDIT AGREEMENT. Borrower shall not make any borrowings against the Refinanced Wachovia Revolving Credit Agreement, and take no action with respect thereto except to terminate the $5,330,000 letter of credit existing as of the Closing
Date in accordance with the terms of the Refinanced Wachovia Revolving Credit Agreement existing on the Closing Date and cause the Refinanced Wachovia Revolving Credit Agreement to be discharged and terminated. 
 7.27 REFINANCED CBT, CNB AND JPM REVOLVING CREDIT AGREEMENTS. Borrower shall neither exercise nor make any borrowings in connection with the
commitments under, nor enter into any amendment, modification, renewal or extension of, any of the Refinanced CBT, CNB and JPM Revolving Credit Agreements unless the applicable Refinanced CBT, CNB and JPM Revolving Credit Agreement meets all of the
conditions in this Agreement to be Permitted Construction Indebtedness. 
 7.28 AMENDMENT TO DOCUMENTS. Amend, modify,
supplement, waive or replace any document, instrument or agreement (or any terms or conditions thereof) entered into in connection with or evidencing the Existing Secured Indebtedness (except to the extent otherwise permitted by the terms hereof) or
any Secured Intercompany Loans unless, in each case, such amendment, modification, supplement, waiver or replacement is consented to in writing by Administrative Agent acting at the direction of Majority Lenders. 
 ARTICLE VIII. 
 RELEASES 
 8.01 GENERAL REQUIREMENTS FOR RELEASES. Administrative Agent shall release the relevant
property described below from the Lien of a Deed of Trust (through an escrow arrangement acceptable to Majority Lenders, concurrent with the closing of the relevant transaction) upon satisfaction of the following conditions precedent, provided that
Borrower requests such release in writing by way of written notice of the request to Administrative Agent not less than ten (10) days prior to the date of the applicable transfer, which request shall be accompanied by a common and legal
description of the relevant property to be released reasonably

  

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satisfactory to Majority Lenders and provided that the release shall not violate any requirements of any document of record or any applicable Law including those regarding subdivisions, tract
maps, parcel maps and the division of land into lots or parcels; and the Collateral remaining after giving effect to the release shall be in compliance with all applicable laws, rules, regulations and ordinances, the un-released Collateral remaining
after giving effect to the release shall not be impaired with respect to Borrower’s ability to diligently proceed with any Improvements, and that Borrower has concurrently submitted to Administrative Agent all documents and instruments
necessary to release the relevant Borrower Real Property from the Liens of the applicable Loan Documents, and in the case of any released property as to which construction has not been fully completed, the Person acquiring the property shall have
agreed, to the reasonable satisfaction of Administrative Agent, to complete the construction and development thereof (and any related Amenities) in accordance with the plans and specifications reasonably approved in writing by Majority Lenders:

 (a) At the time of such release no Default or Event of Default shall have occurred and be continuing. It shall be an
additional condition that no Default or Event of Default shall occur as a result of the transaction that is the subject of the release. 
 (b) Such release shall be either in connection with (i) a bona fide arm’s length all-cash sale in the ordinary course of Borrower’s Core Businesses (or in the case of a Dedication, a
transfer or donation, in the ordinary course of Borrower’s Core Businesses, of a portion of a Project) to an unrelated Person who is either (x) a member of the general home-buying public purchasing a Unit or (y) a merchant builder
purchasing single or multiple Finished Lots or Homes Under Construction in Nevada or Arizona in a transaction of a type which Borrower has customarily done historically and is consistent with its business plan for such Project, and in the case of
either (x) or (y), who is not an Affiliate or Related Party of the Consolidated Group (a “Standard Retail Sale”), (ii) in not more than ten (10) instances in any calendar year, a sale to an employee of any member of
the Consolidated Group for use by such employee as their primary residence, with a discount of not more than three percent (3%) of the purchase price that would be charged for the applicable Lot or Unit in a Standard Retail Sale (a release in
connection with (i) or (ii) is a “Standard Release”) or (iii) Borrower obtaining Permitted Construction Indebtedness secured solely by such Borrower Real Property (in the case of this clause “(iii),” a
“PCI Release”, and the Borrower Real Property so transferred in connection therewith is the “PCI Released Property”). 
 (c) Unless the portion of the Borrower Real Property to be released is an entire parcel with respect to which Administrative Agent has previously approved the Final Map or is a Lot or Lots(or a Unit or
Units) within a subdivision with respect to which Administrative Agent has previously approved a Final Map, Borrower or Title Company shall have delivered to Administrative Agent (i) a legal description of the portion of the Borrower Real
Property to be released, (ii) a map or plat of the portion of the Borrower Real Property to be released, and (iii) copies of any easements for ingress, egress or otherwise to be granted or retained in connection with such release.

 (d) With respect to any Standard Release (but not PCI Releases), unless the portion of the Borrower Real Property to be
released is an entire parcel with respect to which Administrative Agent has previously approved Final Map or is a lot or lots within a subdivision with respect to which Administrative Agent has previously approved a Final Map, prior to such release,
(i) the remaining

  

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unreleased portion of the Borrower Real Property will, after giving effect to such release, have adequate access ingress and egress and will have access to and rights to any Amenities related to
the applicable Project, in the reasonable opinion of Majority Lenders, and (ii) the value of the unreleased portion of the Project will, after giving effect to such release, not otherwise be materially impaired in the reasonable opinion of
Majority Lenders, including LTAA 9 (a.k.a. CLTA 111). Majority Lenders shall have the right to approve any Standard Release, which approval will not be unreasonably withheld, provided however, that unless Majority Lenders have notified Borrower that
Majority Lender’s approval will be required prior to any Standard Release, Borrower shall proceed with Standard Releases without receiving Majority Lender’s prior consent. 
 (e) Borrower shall provide Administrative Agent with such endorsements to the Title Policy as Administrative Agent may reasonably request in
connection with each release. 
 (f) Borrower shall pay all of Administrative Agent’s reasonable costs and expenses,
including reasonable attorneys’ fees, arising in connection with each release. 
 (g) Each release shall be made by
Administrative Agent by delivery of the release documents to a title company or other escrow agent satisfactory to Majority Lenders upon such conditions as shall assure Administrative Agent that all conditions precedent to such release have been
satisfied and that the applicable transaction will be completed. 
 (h) In no event shall any transfer or conveyance be made of
any Amenities (or land slated therefor) except a customary transfer to the homeowners association for the applicable Project, subject to Administrative Agent’s reasonable approval. 
 8.02 STANDARD RELEASES. In connection with and as conditions to any Standard Releases of any Borrower Real Property: 
 (a) Borrower shall satisfy each of the conditions set forth in 8.01. 
 (b) If requested by Administrative Agent, Borrower shall deliver to Administrative Agent a true and correct copy of the applicable Purchase
Contracts. 
 (c) The sale shall be made in the ordinary course of the development and marketing of the applicable Project, and
shall be accompanied by such development covenants, conditions and restrictions, deeds of trust, and other documents, consistent with Borrower’s past practices, as shall be necessary to assure that development of the Project occurs in
accordance with Borrower’s development plans and existing Entitlements. 
 (d) The transaction occurs through an escrow
account over which Lender has a Control Agreement and Borrower then causes the net proceeds of such transfer to be placed in an account over which Lender has a Control Agreement. 
 8.03 DEDICATIONS. In connection with and as conditions to release of any Borrower Real Property as a Dedication: 
 (a) Borrower shall satisfy each of the conditions set forth in Section 8.01. 
  

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 (b) At least ten (10) days prior to a release, Borrower shall have delivered to
Administrative Agent all the terms, conditions and details of such release, including the purpose of such release, evidence of the conformity of such release to the overall development plan for the Project and all Entitlements required in connection
therewith, all of which shall be in form and content reasonably satisfactory to Majority Lenders. 
 8.04 PERMITTED CONSTRUCTION
INDEBTEDNESS. In connection with and as conditions to any PCI Release, the PCI Released Property must, concurrent with the release, become immediately subject to a deed of trust as security in favor of the Revolver Lender for Permitted Construction
Indebtedness and: 
 (a) Borrower shall satisfy the conditions set forth in Section 8.01. 
 (b) Any PCI Released Property must consist only of (i) Finished Lots or Homes Under Construction (for which, all necessary Entitlements
have been obtained and a Final Map has been recorded, so that Vertical Construction may commence or continue upon funding of the Permitted Construction Indebtedness), or (ii) Model Units in the same Phase or Project, and such Permitted
Construction Indebtedness shall only encumber the relevant Finished Lots, Homes Under Construction or Model Units. 
 (c)
Borrower must concurrently with such release close and receive Permitted Construction Indebtedness as contemplated herein and the proceeds thereof, in accordance with the terms thereof shall be deposited directly into an account as to which Lenders
have a Control Agreement in effect. 
 (d) Borrower shall demonstrate its compliance with the Borrowing Base and all other
Financial Covenant and Maximum Secured Indebtedness tests measured both before and after the release to the satisfaction of Administrative Agent. 
 (e) At least 30 days before the PCI Release, Borrower has submitted a business plan for the development, construction, marketing and sale (including details of the proposed timing and amounts for
construction, costs, expenditures, sales and revenues) for the PCI Released Property for review (but not approval) by the Lenders and any conditions and requirements of such Permitted Construction Indebtedness have been met (as of the time of the
requested PCI Release), and the loan documents evidencing such Permitted Construction Indebtedness (including minimum sales price) also shall have been so provided for review (but not approval) by the Lenders (within a reasonable time before the
requested release). 
 (f) If at any time all or any part of the PCI Released Property is released from the Lien of the
Permitted Construction Indebtedness (other than in connection with a sale permitted under this Agreement and permitted under the Permitted Construction Indebtedness), Borrower shall in no event sell, transfer or further encumber the PCI Released
Property, except with other Permitted Construction Indebtedness in compliance with this Section 8.04, the Borrower shall (i) execute, acknowledge and record a Deed of Trust against all such remaining PCI Released Property for the benefit
of Administrative Agent and the Lenders to secure the Loan Parties’ Indebtedness, (ii) deliver a Title Policy insuring a first priority Lien in favor of the Lenders in such PCI Released Property

  

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and (iii) deliver such other documents, agreements, reports and instruments as may be reasonably required by Majority Lenders (which shall include a subordination agreement acceptable to
them with respect to any PAPA Obligations). 
 (g) Borrower shall have entered into binding documentation, for the Permitted
Construction Indebtedness with the Revolver Lender, which Permitted Construction Indebtedness is secured solely by the PCI Released Property. 
 (h) Borrower shall have used commercially reasonable efforts to cause the Revolver Lender of the applicable Permitted Construction Indebtedness to enter into an Intercreditor Agreement providing the
Lenders with notice of any default (and opportunity to cure any default) by Borrower before any acceleration and/or to permit Lenders to purchase such loan from the Revolver Lender at par in such events in form and content reasonably acceptable to
Majority Lenders. 
 ARTICLE IX. 
 EVENTS OF DEFAULT AND REMEDIES 
 9.01 DEFAULT. Any of the following
shall constitute a Default: 
 (a) Non-Payment. Any Loan Party shall fail to pay (i) any principal of any Loan when
the same becomes due or, (ii) any interest, fees or other amounts payable under the terms of this Agreement or any of the other Loan Documents within three (3) Business Days after the same becomes due; or 
 (b) Specific Covenants. (i) Borrower fails to perform or observe any term, covenant or agreement contained in any of
Section 6.05(a) and 6.17(b), Sections 7.07, 7.08, 7.12, 7.15, 7.16, 7.20, 7.21, 7.23, 7.25, 7.26 or 7.27 or Article 8, or (ii) any Guarantor fails to perform or observe any term, covenant or agreement contained in Section 1 of the
Unconditional Guaranty; provided that in the case of Section 7.15, Borrower shall have ten (10) days from the earlier of the date a Responsible Officer of Borrower has knowledge of such failure or written notice thereof to Borrower from
Administrative Agent or any Lender to cure such failure; or 
 (c) Other Defaults. Any Loan Party fails to perform or observe
any other covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for thirty (30) days after the earlier of the date a
Responsible Officer of Borrower has knowledge of such failure or written notice thereof to Borrower from Administrative Agent or any Lender; or 
 (d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of Borrower or any other Loan Party herein, in any other Loan
Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or 
 (e) Cross-Default. Any member of the Consolidated Group (i) fails to make any payment when due (after giving effect to the expiration of any applicable grace periods) (whether by scheduled maturity,
required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder) having an aggregate principal amount

  

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(including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the $10,000,000, or
(ii) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of
which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness
to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; provided that any non-recourse loans to Joint Ventures, to the extent permitted hereunder, shall be excluded from
this Section 9.0 l(e); or 
 (f) Insolvency Proceedings, Etc. Any member of the Consolidated Group institutes or consents
to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for sixty (60) calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and
continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding; or any member of the Consolidated Group shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the foregoing; or 
 (g) Inability to Pay Debts; Attachment. (i) Any member of the
Consolidated Group becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any
material part of the property of the Borrower or the Consolidated Group, taken as a whole, and is not released, vacated or fully bonded within thirty (30) days after its issue or levy; or 
 (h) Judgments. There is entered against any member of the Consolidated Group (i) a final judgment or order for the payment of money in
an aggregate amount exceeding the $10,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or would
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of thirty
(30) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 
 (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of Borrower or another member of
the Consolidated Group under Title IV of ERISA to

  

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the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $3,000,000, or (ii) Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $3,000,000; or 
 (j) Invalidity of Loan Documents. Any material provision of any Loan Document, at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability of
any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document; 
 (k) Security Documents. Any Lien intended to be created by any Security Document shall at any time be invalidated, subordinated or otherwise
cease to be in full force and effect, for whatever reason (except for Liens on Collateral not constituting Real Property to the extent that such non-Real Property Collateral has a fair market value of less than $100,000), or any security interest
purported to be created by any Security Document shall cease to be, or shall be asserted by any Loan Party in writing not to be, a valid, first priority (except as expressly otherwise provided in this Agreement or such Security Document) perfected
Lien in the Collateral covered thereby (except for immaterial items of Collateral); or 
 (l) Default under Certain
Indebtedness. A default or event of default shall have occurred and be continuing under any Permitted Secured Indebtedness; or 
 (m) Indictment. Borrower or any member of Key Management shall be indicted for a federal crime, a punishment for which could include the forfeiture of any of its assets which could reasonably be expected to result in a Material Adverse
Effect; or 
 (n) Guarantors. Any Guarantor shall repudiate or purport to revoke the Unconditional Guaranty; or 
 (o) Designated Person. Any Loan Party shall become a Designated Person; or 
 (p) Delayed Draw Term Loans. Borrower shall fail to borrow the Delayed Draw Term Loans before the Delayed Draw Commitment Termination Date,
for any reason whatsoever; or 
 (q) Prohibited Transfers. The occurrence of any transfer, assignment or encumbrance in
violation of the terms of any Deed of Trust or any provision of this Agreement (including Sections 6.17, 7.06, 7.26 or 7.27); or 
 (r) Title Insurance. (i) If any Title Policy issued (A) reflects Liens or that are not Permitted Exceptions and such Liens or Encumbrances are not removed within thirty (30) days after demand by Administrative Agent or
(B) fails to contain endorsements requested by Administrative Agent and such endorsements are not included within thirty (30) days after demand by Administrative Agent, or (ii) a Title Company becomes insolvent, bankrupt or otherwise
unable to pay claims and the affected Title Policy is not

  

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replaced with another Title Policy approved by Administrative Agent within thirty (30) days after Administrative Agent’s demand therefor, and in the foregoing events, the Borrower Real
Property covered by the Title Policy shall cease to be part of the Borrowing Base; or 
 (s) Material Adverse Effect. Any
Material Adverse Effect shall occur; or 
 (t) Change of Control. There occurs any Change of Control; or 
 (u) Control Agreements. Borrower fails, for any reason whatsoever, to deliver Control Agreements duly executed by the applicable depository
institution and Loan Party in respect of each of the deposit accounts and securities accounts pledged pursuant to the Security Agreement within ten (10) Business Days after the Closing Date; or 
 (v) Mandatory Transfers. Failure of Borrower to cause any transfer of Real Property required under the terms of this Agreement to occur on
the required date, including as set forth in Section 6.18 or 6.19 (including recordation of the required Deed of Trust or amendment and issuance of the required Title Policy or endorsement, as applicable); or 
 (w) Uniform Commercial Code Terminations. Borrower fails to procure the termination of all Uniform Commercial Code Financing Statements
filed in connection with the Refinanced Revolving Credit Agreements within ten (10) days after the Closing Date. 
 9.02
REMEDIES UPON EVENT OF DEFAULT. If any Default occurs and is continuing unremedied, Administrative Agent shall, at the request of, or may, with the consent of, Majority Lenders, take any or all of the following actions; 
 (a) declare an Event of Default, except for an Event of Default described in Section 9.01(f), which shall be an automatic Event of
Default without any further action; 
 (b) (i) terminate the Total Commitments and any other obligations of the Lenders to make
Loans, and/or (ii) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by Borrower; and 
 (c) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or any other applicable Law, including the Uniform Commercial Code, either by suit in equity or by action at
law, or both; 
 provided, however, that immediately upon the occurrence or existence of an Event of Default described in Section 9.01(f),
(i) the Total Commitments and any other obligations of the Lenders to make Loans shall automatically terminate, and (ii) the unpaid principal amount of all outstanding Loans and all interest and all other Obligations, including the Make
Whole Amount and Exit Fee, payable by the Borrower and the other Loan Parties hereunder and under the other Loan Documents shall automatically become due and payable, without presentment, demand, protest, or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein or in the other Loan Documents to the contrary notwithstanding. Borrower acknowledges and agrees that

  

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the Collateral located within the State of California constitutes mixed collateral under Section 9604 of the California Commercial Code, and that Administrative Agent may foreclose upon same
in such order and priority as Administrative Agent determines. 
 9.03 APPLICATION OF FUNDS. After the occurrence and during the
continuance of an Event of Default, any amounts received on account of the Obligations shall be applied by Administrative Agent in the following order: 
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to Administrative Agent and amounts
payable under Article III) payable to Administrative Agent in its capacity as such; 
 Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than principal and interest, but including the Make Whole Amount and the Exit Fee) payable to the Lenders (including fees, charges and disbursements of counsel to the respective
Lenders and fees and time charges for attorneys who may be employees of any Lender and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them; 
 Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and other obligations, ratably
among the Lenders in proportion to the respective amounts described in this clause Third payable to them; 
 Fourth, to payment
of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them; and 
 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to Borrower or as otherwise required by Law.

 9.04 PROTECTIVE ADVANCES/CURE RIGHTS. 
 If at any time a breach, default or event of default, occurs or a member of the Consolidated Group otherwise fails to perform or comply with any of the terms, covenants, and conditions to be performed
and/or complied with, under any Permitted Construction Indebtedness, Existing Secured Indebtedness, PAPA Obligations (or subordination agreements with respect thereto) or other Indebtedness (other than the Indentures), then the Lenders, without
waiving or releasing any of the Obligations, may (but shall not be required to): 
 (a) make advances to Borrower and/or
directly make any payments as Lenders may deem necessary to cure or remedy such event or failure, including, without limitation, to cure or prevent a default or event of default or an exercise of any rights or remedies or options against Borrower,
Lenders or any Real Property (and if such advances are so made to Borrower, then Borrower shall apply such funds advanced, so as to do so); and/or 
 (b) perform any other acts on their part to be performed for such purposes. 
  

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 The making by Lenders of any such advances, payments or performances will not, however, be deemed to cure
any Default or Event of Default under the Loan Documents arising from the predicated events of default. All sums so advanced or paid and all reasonable costs and expenses incurred by Lenders in connection with the performance of any such act shall
be subject to the same terms as any, and shall be deemed to be, a Credit Extension under the Loan Documents (including that such advances shall bear interest at the Applicable Rate and be due on the Maturity Date, shall bear the Upfront Fee, and
payment of the Exit Fee and the Make Whole Amount when due under this Agreement and will be added to the principal of the Loan and the Note and if repaid prior to the Maturity Date will be secured by the Security Documents). All such payments and
advances so actually made shall conclusively be deemed to be protective advances which are required and mandatory to preserve and protect Lenders’ security for the performance of the Obligations under the Loan Documents, and shall be secured by
the Security Documents to the same extent and with the same priority as the other principal, interest and other amounts payable under the Loan Documents. 
 ARTICLE X. 
 ADMINISTRATIVE AGENT 
 10.01 APPOINTMENT AND AUTHORITY. Each of the Lenders hereby irrevocably appoints ColFin WLH Funding, LLC to act on its behalf as
Administrative Agent hereunder and under the other Loan Documents and authorizes Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to Administrative Agent by the terms hereof or thereof, together
with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of Administrative Agent and the Lenders, and neither Borrower nor any other Loan Party shall have rights as a third party
beneficiary of any of such provisions. 
 10.02 RIGHTS AS A LENDER. The Person serving as Administrative Agent hereunder, to the
extent a Lender, shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not Administrative Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include the Person serving as Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in any kind of business with Borrower or any Subsidiary or other Affiliate thereof as if such Person were not Administrative Agent hereunder and without any duty to account
therefor to the Lenders. 
 10.03 EXCULPATORY PROVISIONS. Administrative Agent shall not have any duties or obligations except
those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, Administrative Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that Administrative Agent is required to exercise as directed in writing by Majority Lenders (or such other number or percentage of the Lenders as shall be expressly provided for

  

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herein or in the other Loan Documents), provided that Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose Administrative
Agent to liability or that is contrary to any Loan Document or applicable law; and 
 (c) shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as
Administrative Agent or any of its Affiliates in any capacity. Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of Majority Lenders (or such other number or percentage of
the Lenders as shall be necessary, or as Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 9.02) or (ii) in the absence of its own gross negligence or willful
misconduct. Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to Administrative Agent by Borrower, or a Lender. Administrative Agent shall not be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to Administrative Agent. 
 10.04 RELIANCE BY ADMINISTRATIVE AGENT.
Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of
a Lender, Administrative Agent may presume that such condition is satisfactory to such Lender unless Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. Administrative Agent may consult
with legal counsel (who may be counsel for Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or
experts. 
 10.05 DELEGATION OF DUTIES. Administrative Agent may perform any and all of its duties and exercise its rights and
powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by Administrative Agent. Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties

  

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of Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent. 
 10.06 RESIGNATION OF ADMINISTRATIVE AGENT. Administrative Agent may at any time give
notice of its resignation to the Lenders and Borrower to be effective not earlier than thirty (30) days from the date of such notice. Upon receipt of any such notice of resignation, Majority Lenders shall have the right, in consultation with
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by Majority Lenders and shall have
accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if Administrative Agent shall notify Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such
notice and (1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to be made by, to or through
Administrative Agent shall instead be made by or to each Lender, until such time as Majority Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from
all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). After the retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 11.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as Administrative Agent. 
 10.07 NON-RELIANCE ON
ADMINISTRATIVE AGENT AND OTHER LENDERS. Each Lender acknowledges that it has, independently and without reliance upon Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any
document furnished hereunder or thereunder. 
 10.08 NO OTHER DUTIES ETC. Anything herein to the contrary notwithstanding, the
Initial Lender and Lead Arranger listed on the cover page hereof shall not have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in their capacity, as applicable, as Administrative Agent or a
Lender. 
  

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 10.09 ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent (irrespective of whether the principal of any Loan shall then be
due and payable as herein expressed or by declaration or otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 

(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other
obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative Agent under Sections 2.06 and 11.04) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent
shall consent to the making of such payments directly to the Lenders to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Administrative Agent and its agents and counsel, and any
other amounts due Administrative Agent under Sections 2.06 and 11.04. Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 10.10 COLLATERAL AND GUARANTY MATTERS. The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion:

 (a) to release or cause the release of any Lien on any property granted to or held by or on behalf of Administrative Agent
under any Loan Document (a) upon payment in full of all Obligations, (b) that is sold or to be sold as part of or in connection with any Disposition contemplated under Article 8 hereto or as otherwise contemplated hereunder or under the
Loan Documents, in each case at the direction of Majority Lenders, or (iii) subject to Section 10.01, if approved, authorized or ratified in writing by Majority Lenders, except to the extent that the consent of all Lenders is required
pursuant to Section 11.01(f) hereto; and 
 (b) to release any Guarantor from its obligations under the Unconditional
Guaranty, if (i) such Guarantor does not own any Collateral (or is simultaneously transferring its ownership interest in all remaining Collateral either (x) in connection with a Disposition permitted under Article 8 hereto, or (y) to
Borrower or another Guarantor), and (ii) such Guarantor is dissolving and terminating its existence. 
  

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 ARTICLE XI. 
 MISCELLANEOUS 
 11.01 AMENDMENTS, ETC. Unless
expressly stated otherwise herein, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by
Majority Lenders and Borrower or the applicable Loan Party, as the case may be, and acknowledged by Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that no such amendment, waiver or consent shall: 
 (a) extend or increase the Loans of any Lender without
the written consent of such Lender, or increase the Total Commitment, Total Closing Date Commitment, Total Initial Draw Closing Date Commitment, Total Delayed Draw Closing Date Commitment, Total Second Term Loan Commitment without the written
consent of each Lender; 
 (b) postpone any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 
 (c) reduce the principal of, or the rate of interest specified herein on, any Loan or (subject to clause (ii) of the second proviso to
this Section 11.01) any fees or other amounts payable hereunder or under any other Loan Document; provided, however, that only the consent of Majority Lenders shall be necessary to amend the definition of “Default Rate” or to waive
any obligation of Borrower to pay interest at the Default Rate; 
 (d) change Section 2.10 or Section 9.03 in a manner
that would alter the pro rata sharing of payments required thereby without the written consent of each Lender; 
 (e) change any
provision of this Section or the definition of “Majority Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or
grant any consent hereunder, without the written consent of each Lender affected thereby; or 
 (f) (i) release any Guarantor
except as expressly contemplated under Section 10.10(b), or (ii) except as permitted in Section 10.10(a) or the applicable Security Document, transfer, subordinate or release Liens on, or after foreclosure or other acquisition of
title by Administrative Agent or transfer or sell, any Collateral securing the Obligations at less than fair market value and without payment of Net Proceeds thereon in accordance with the requirements of Section 2.03(c) hereto, in each case,
without the written consent of each Lender affected thereby; 
 provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by Administrative Agent in addition to the Lenders required above, affect the rights or duties of Administrative Agent under this Agreement or any other Loan Document; (ii) the Fee Letters may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties thereto and (iii) the Administrative Agent Fee Letters may be amended, or rights or privileges thereunder waived, in a writing executed only by

  

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the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that
the Loans of such Lender may not be increased or extended without the consent of such Lender. 
 No failure or delay by Administrative Agent or
any Lender in exercising any right under this Agreement or any other Loan Document shall operate as a waiver thereof or of any other right hereunder or thereunder nor shall any single or partial exercise of any such right preclude any other further
exercise thereof or of any other right hereunder or thereunder. The Lenders may condition the giving or making of any amendment, waiver or consent of any term, covenant, agreement or condition of this Agreement or any other Loan Document on payment
of a fee by the Borrower. 
 11.02 NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION. 
 (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows,
and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
 (i) if to Borrower or Administrative Agent, to the address, facsimile number, electronic mail address or telephone number
specified for such Person on Schedule 11.02; and 
 (ii) if to any other Lender, to the address, facsimile
number, electronic mail address or telephone number specified on the signature pages hereto. 
 Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective
as provided in such subsection (b). 
 (b) Electronic Communications. Notices and other communications to the Lenders hereunder
may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to
Article II if such Lender, as applicable, has notified Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. Administrative Agent or Borrower may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. Unless Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by

  

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the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address
therefor. 
 (c) Change of Address, Etc. Each of Borrower and Administrative Agent may change its address, facsimile or
telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to Borrower and
Administrative Agent. 
 (d) Reliance by Administrative Agent and Lenders. Administrative Agent and the Lenders shall be
entitled to rely and act upon any notices purportedly given by or on behalf of Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified
herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. Borrower shall indemnify Administrative Agent and each Lender and the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of Borrower. All telephonic notices to and other telephonic communications with Administrative Agent may be recorded by Administrative Agent, and
each of the parties hereto hereby consents to such recording. 
 11.03 NO WAIVER; CUMULATIVE REMEDIES. No failure by any Lender
or Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. 
 11.04 EXPENSES; INDEMNITY; DAMAGE WAIVER. 
 (a) Costs and Expenses. Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by Administrative Agent, the Initial
Lender and the Lead Arranger (including the reasonable fees, charges and disbursements of counsel for Administrative Agent, the Initial Lender and the Lead Arranger), in connection with the syndication of the credit facilities provided for herein,
the preparation, negotiation, due diligence, execution, delivery and administration of this Agreement and the other Loan Documents, (ii) all out-of-pocket expenses incurred by Administrative Agent, the Initial Lender and the Lead Arranger
(including the reasonable fees, charges and disbursements of counsel for Administrative Agent and the Initial Lender), in connection with any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions
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consummated), and (iii) all out-of-pocket expenses incurred by Administrative Agent or any Lender (including the fees, charges and disbursements of counsel for Administrative Agent or any
Lender), and shall pay all fees and time charges for attorneys who may be employees of Administrative Agent or any Lender, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan
Documents, including its rights under this Section 11.04, or (B) in connection with the Loans hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

 (b) Indemnification by Borrower. Borrower shall indemnify and defend Administrative Agent (and any sub-agent thereof), each
Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, Broker’s Commissions
(including all expenses and attorney’s fees incurred by Administrative Agent or any Lender is connection with the defense of any action or proceeding brought to collect any such Broker’s Commissions), liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred
by any Indemnitee or asserted against any Indemnitee by any third party or by Borrower or any other Loan Party (collectively, “Claims”) arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any Aggregate Real Property, or any Environmental Liability related in
any way to Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the
Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by Lenders. To the extent that Borrower for any reason fails to indefeasibly pay any amount required under subsection
(a) or (b) of this Section to be paid by it to Administrative Agent (or any sub-agent thereof), or any Related Party of any of the foregoing, each Lender severally agrees to pay to Administrative Agent (or any such sub-agent), or such
Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or
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liability or related expense, as the case may be, was incurred by or asserted against Administrative Agent (or any such sub-agent) in its capacity as such, or against any Related Party of any of
the foregoing acting for Administrative Agent (or any such sub-agent) in connection with such capacity. The obligations of the Lenders hereunder to make payments pursuant to this Section 11.04(c) are several and not joint. The failure of any
Lender to make any payment under this Section 11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to make its payment under this Section 11.04(c). 
 (d) Waiver of Consequential Damages, Etc. To the fullest extent
permitted by applicable law, Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee
referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 
 (e)
Payments. All amounts due under this Section 11.04 shall be payable not later than five Business Days after demand therefor. 
 (f) Survival. The agreements in this Section 11.04 shall survive the resignation of Administrative Agent, the replacement of any Lender, the termination of the Aggregate Loans and the repayment, satisfaction or discharge of all the
other obligations. 
 11.05 PAYMENTS SET ASIDE. To the extent that any payment by or on behalf of Borrower is made to
Administrative Agent or any Lender, or Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by Administrative Agent, or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender severally agrees to pay to Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by Administrative Agent. The obligations of the Lenders under clause
(b) of the preceding sentence shall survive the payment in full of the obligations and the termination of this Agreement. 
 11.06 SUCCESSORS AND ASSIGNS. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations
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and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection
(b) of this Section 11.06, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of Administrative Agent and
the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders.
Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of the Loans at the time owing to it); provided that: 
 (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Loans at the time owing
to it and except in the case of an assignment to a Lender or an Affiliate of a Lender or a Related Fund, the aggregate amount of the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of
the date the Assignment and Assumption with respect to such assignment is delivered to Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless
each of Administrative Agent and, so long as no Event of Default has occurred and is continuing, Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); 
 (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement with respect to the Loans and commitments assigned; 
 (iii) the parties to
each assignment shall execute and deliver to Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500, provided that only one such fee shall be payable in the event of contemporaneous assignments to
or by two or more Related Funds and the Eligible Assignee, if shall not be a-Lender, shall deliver to Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and recording thereof by Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations, including, if applicable Commitments, of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01 and 11.04 with respect to facts and circumstances occurring prior
to the effective date of such assignment. Upon request, Borrower (at its expense) shall execute and

  

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deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes
of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. 
 (c) Register. Administrative Agent, acting solely for this purpose as an agent of Borrower, shall maintain at Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it
and a register for the recordation of the names and addresses of the Lenders and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall
be conclusive, and Borrower, Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by Borrower at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request for a consent for a material or substantive change to the Loan
Documents is pending, any Lender wishing to consult with other Lenders in connection therewith may request and receive from Administrative Agent a copy of the Register. 
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, Borrower or Administrative Agent, sell participations to any Eligible Participant (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) Borrower, Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or
other modification described in the first proviso to clauses (a) through (f) of Section 11.01 that affects such Participant. Subject to subsection (e) of this Section, Borrower agrees that each Participant shall be entitled to
the benefits of Section 3.01 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 11.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.10 and Section 11.13 as though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Section 3.01 than the
applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with Borrower’s prior written consent. A Participant that would
be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of Borrower, to comply with
Section 3.01(e) as though it were a Lender. 
  

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 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute any such pledge or assignee for such Lender as a party hereto. 
 (g) Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to
the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act. 
 (h) Bifurcation. In furtherance of each Lender’s ability to assign or grant participations in their Loans, each Lender shall be
entitled to bifurcate its Loans into component, mezzanine or other notes; provided, that no such bifurcation shall, individually or in the aggregate, increase Borrower’s Obligations hereunder. 
 (i) Syndication. Borrower shall provide sufficient financial information as reasonably requested by the Initial Lender for the preparation
of an information memorandum describing Borrower for use in connection with syndication of this credit facility, if any. Such packet will be distributed on a confidential basis to potential transferees of the Loans. In addition, the management of
Borrower and Parent will be available upon reasonable notice to participate in meetings with perspective transferees and to answer questions and actively be involved in the syndication process. 
 11.07 TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY. Each of Administrative Agent and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors, attorneys and representatives (it
being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and its obligations, (g) with the consent of Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a

  

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source other than Borrower. For purposes of this Section, “Information” means all information received from Borrower or any Subsidiary relating to Borrower or any Subsidiary or any of
their respective businesses, other than any such information that is available to Administrative Agent, any Lender on a nonconfidential basis prior to disclosure by Borrower or any Subsidiary, provided that, in the case of information received from
Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to
have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information but no less than a reasonable
standard of care. 
 11.08 RIGHT OF SETOFF. If an Event of Default shall have occurred and be continuing, each Lender and each
of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of Administrative Agent (but without the prior notice to or consent of Borrower, any such notice and consent being
expressly waived by Borrower to the extent permitted by applicable Law), to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or the account of Borrower or any other Loan Party against any and all of the obligations of Borrower or such Loan
Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of
Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender and their respective
Affiliates under this Section 11.08 are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have. Each Lender agrees to notify Borrower and Administrative Agent
promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 11.09 INTEREST RATE LIMITATION. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate
of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the
principal of the Loans or, if it exceeds such unpaid principal, refunded to Borrower. In determining whether the interest contracted for, charged, or received by Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the
extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder. 
 11.10 COUNTERPARTS; INTEGRATION; EFFECTIVENESS. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but
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constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Sections 4.01, 4.02 and 4.03, this Agreement shall become effective when it shall have been executed by Administrative Agent and when
Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective
as delivery of a manually executed counterpart of this Agreement. 
 11.11 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by Administrative Agent and each Lender, regardless of any investigation made by Administrative Agent or any Lender or on their behalf and notwithstanding that Administrative Agent or
any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other obligation hereunder shall remain unpaid or unsatisfied. 
 11.12 SEVERABILITY. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable,
(a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction. 
 11.13 REPLACEMENT OF LENDERS. If Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender, then Borrower may, at its sole expense and effort, upon notice to
such Lender and Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 
 (a) Borrower shall have paid to Administrative Agent the assignment fee specified in Section 11.06(b); 
 (b) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or Borrower (in the case of all other amounts); 
  

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 (c) in the case of any such assignment resulting from a claim for payments required to be
made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and 
 (d) such assignment does not conflict with applicable Laws. A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling
Borrower to require such assignment and delegation cease to apply. 
 11.14 GOVERNING LAW; JURISDICTION; ETC. 
 (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA (WITHOUT REGARD TO THE
CONFLICT OF LAWS PROVISIONS THEREOF). 
 (b) SUBMISSION TO JURISDICTION. BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR CALIFORNIA STATE COURT SITTING IN LOS ANGELES COUNTY, CALIFORNIA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER ANY LOAN DOCUMENTS, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY
NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST
BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. 
 (c) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 
 11.15 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY VOLUNTARILY, KNOWINGLY, UNCONDITIONALLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER

  

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PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.15. 
 11.16 ARBITRATION. 
 (a) Arbitration. Notwithstanding the provisions of Sections 11.14 and 11.15, the parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their
respective employees, officers, directors, attorneys, and other agents), whether in tort, contract or otherwise arising out of or relating to in any way (i) the Loans and related Loan Documents which are the subject of this Agreement and its
negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination, or (ii) requests for additional credit. 
 (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in California selected by the American Arbitration
Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be
conducted by the AAA, or such other administrator as the parties shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed
interest, arbitration fees and costs in which case the arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional
procedures for large, complex commercial disputes to be referred to, as applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Any
party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a
waiver by any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar applicable state law. 
 (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against Aggregate Real Property or any other Collateral; (ii) exercise self-help
remedies relating to Collateral or proceeds of Collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after
the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including those arising from the exercise of the actions
detailed in sections (i), (ii) and (iii) of this subsection. 
 (d) Arbitrator Qualifications and Powers. Any
arbitration proceeding in which the amount in controversy is $5,000,000 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000. Any dispute in which the amount in
controversy exceeds $5,000,000 shall be decided by majority vote of a panel of three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. The arbitrator will

  

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be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal judiciary of California, in either case with a minimum of ten years experience in the
substantive Law applicable to the subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration
proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The
arbitrator shall resolve all disputes in accordance with the substantive Law of California and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make
effective any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules
of Civil Procedure, the California Rules of Civil Procedure or other applicable Law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief
or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief.

 (e) Discovery. In any arbitration proceeding discovery will be permitted in accordance with the Rules. All discovery shall be
expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than twenty (20) days before the hearing date and within one hundred eighty (180) days of the filing of the dispute with the AAA.
Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no
alternative means for obtaining information is available. 
 (f) Class Proceedings and Consolidations. The resolution of any
dispute arising pursuant to the terms of this Agreement shall be determined by a separate arbitration proceeding and such dispute shall not be consolidated with other disputes or included in any class proceeding. 
 (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses of the arbitration proceeding. 
 (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude
any arbitration proceeding within one hundred eighty (180) days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures
of information by a party required in the ordinary course of its business or by applicable Law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most
directly related to the Loan Documents or the subject matter of the dispute shall control. The arbitration provisions set forth in this Section 11.16 shall survive termination, amendment or expiration of any of the Loan Documents or any
relationship between the parties. 
  

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 11.17 RELATIONSHIP OF PARTIES. The relationship between the Borrower, on the one hand, and
the Lenders and Administrative Agent, on the other, is, and at all times shall remain, solely that of Borrower and lenders. Neither the Lenders nor Administrative Agent shall under any circumstances be construed to be partners or joint venturers of
the Borrower or any of its Affiliates; nor shall the Lenders nor Administrative Agent under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with the Borrower or any of its Affiliates, or to owe
any fiduciary duty to the Borrower or any of its Affiliates. The Lenders and Administrative Agent do not undertake or assume any responsibility or duty to the Borrower or any of its Affiliates to select, review, inspect, supervise, pass judgment
upon or otherwise inform the Borrower or any of its Affiliates of any matter in connection with its or its property, any security held by Administrative Agent or any Lender or the operations of the Borrower or any of its Affiliates. The Borrower and
each of its Affiliates shall rely entirely on their own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Lender or Administrative Agent in
connection with such matters is solely for the protection of the Lenders and Administrative Agent and neither the Borrower nor any of its Affiliates is entitled to rely thereon. 
 11.18 USA PATRIOT ACT NOTICE. Each Lender that is subject to the Patriot Act and Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Borrower that pursuant to the requirements of the Patriot Act it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information
that will allow such Lender or Administrative Agent, as applicable, to identify Borrower in accordance with the Patriot Act. 
 11.19 DISCRETION STANDARD. Whenever in this Agreement or any of the Loan Documents, any act, consent, decision, election, satisfaction, opinion or approval by any Lender, Majority Lenders or Administrative Agent (including with respect to
any act, consent, decision, election, satisfaction, opinion or approval), such act, consent, decision, election, satisfaction, opinion or approval may be given, withheld, made or not made, taken or not taken, as applicable, in Administrative
Agent’s, Majority Lenders’ or Lender’s sole and absolute discretion except as otherwise expressly provided herein, that such act, consent, decision, election, satisfaction, opinion or approval shall be reasonably exercised.

 11.20 TIME OF THE ESSENCE. Time is of the essence of the Loan Documents. 
  

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 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered
under seal as of the date first set forth above. 
  

			
	BORROWER:
	
	WILLIAM LYON HOMES, INC.
	
	  

	Name:	 	
	Title:	 	
	
	Address for Notices:
	[                            ]
	[                            ]
	[                            ]

 [SIGNATURES CONTINUED ON FOLLOWING PAGE] 
  

 120 

			
	ADMINISTRATIVE AGENT:
	
	[                            ]
	
	  

	Name:	 	
	Title:	 	
	
	Address for Notices:
	[                            ]
	[                            ]
	[                            ]
	
	INITIAL LENDER AND LEAD ARRANGER:
	
	[                            ]
	
	  

	Name:	 	
	Title:	 	
	
	Address for Notices:
	[                            ]
	[                            ]
	[                            ]

  

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