Document:

Amendment No. 1 and Joinder to Credit Agreement

 Exhibit 10.2 
 [EXECUTION VERSION] 
 AMENDMENT NO. 1 AND JOINDER TO CREDIT AGREEMENT

 This Amendment No. 1 and Joinder to Credit Agreement (this “Amendment”), dated as of
June 5, 2012 (the “Amendment Effective Date”), is entered into by C&J ENERGY SERVICES, INC., a Delaware corporation (the “Borrower”), the lenders party hereto, BANK OF AMERICA, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”) Swing Line Lender and L/C Issuer, and solely for purposes of Section 8 hereof, the Guarantors (as defined in the Credit Agreement defined below).

 INTRODUCTION 
 Reference is made to the Credit Agreement dated as of April 19, 2011 (as modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party
thereto (collectively, the “Lenders” and individually, a “Lender”), and the Administrative Agent. 
 The Borrower has requested, and the Administrative Agent and the Lenders have agreed, to make certain amendments to the Credit Agreement, to increase the Aggregate Commitments under the Credit Agreement
and to add new Lenders to the Credit Agreement. Furthermore, certain of the Lenders have severally agreed to increase their respective Commitments on the terms and conditions set forth herein. 

In connection with the foregoing, the Lenders and the Administrative Agent have agreed on the terms and conditions set forth herein, to
make certain amendments to the Credit Agreement. 
 THEREFORE, in connection with the foregoing and for other good and
valuable consideration, the Borrower, the Lenders, and the Administrative Agent hereby agree as follows: 
 Section 1.
Definitions; References. Unless otherwise defined in this Amendment, each term used in this Amendment that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement. 

Section 2. Amendment of Credit Agreement. 
 (a) Section 1.01 of the Credit Agreement is hereby amended by inserting the following definitions in appropriate alphabetical order: 

“Casedhole Holdings” means Casedhole Holdings, Inc., a Delaware corporation. 

“Casedhole Acquisition” means the acquisition by the Borrower (or one or more of its Subsidiaries) of all
of the Equity Interests of Casedhole Holdings. 
 “Consolidated Total Assets” means, with
respect to the Borrower and its Subsidiaries, the amount which, in accordance with GAAP, is set forth under the caption “Total Assets” (or any like caption) on the consolidated balance sheet of the Borrower and its Subsidiaries.

 “First Amendment” means the Amendment No. 1 and
Joinder to Credit Agreement, dated as of June 5, 2012 by and between the Borrower, the Guarantors, the Lenders party thereto, and the Administrative Agent. 
 “First Amendment Effective Date” means the first date all the conditions precedent in Section 7 of the First Amendment are satisfied. 

“Immaterial Subsidiary” means, subject to Section 6.12(f), any Subsidiary of the Borrower
designated as such in writing by the Borrower to the Administrative Agent; provided that (a) no Subsidiary may be so designated unless such Subsidiary (i) contributed to Consolidated EBITDA for the most recently completed
Measurement Period for which financial statements have been delivered pursuant to Section 6.01(a) or 6.01(b) less than the lesser of (x) $7,500,000 and (y) 2.5% of such Consolidated EBITDA or (ii) had total assets
having an aggregate book value, as of the end of the fiscal quarter most recently ended and for which financial statements have been delivered pursuant to Section 6.01(a) or 6.01(b), not exceeding the lesser of
(x) $12,500,000 and (y) 2.5% of Consolidated Total Assets as of the end of such fiscal quarter and (b) any Subsidiary shall automatically cease to be an Immaterial Subsidiary if such Subsidiary no longer meets the requirements set
forth in the foregoing clause (a). 
 “Project Foreign Subsidiary” means a direct Foreign
Subsidiary of C&J Spec-Rent Services, Inc. formed or to be formed for the purpose of facilitating the conducting of business in foreign markets. 
 (b) Section 1.01 of the Credit Agreement is hereby amended and restating in their entirety the following definitions as follows: 

“Aggregate Commitments” means the Commitments of all the Lenders. As of the First Amendment Effective
Date, the Aggregate Commitments are $400,000,000. 
 “Applicable Rate” means the applicable
percentage per annum set forth below determined by reference to the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(b): 

 

							
	 Applicable Rate

	 Pricing
Level
	  	 Consolidated

Leverage Ratio
	  	Eurodollar
Rate
(Letters
of
Credit)	 	Base Rate
	 1
	  	< 1.00x	  	2.25%	 	1.25%
	 2
	  	3 1.00x but < 1.50x	  	2.50%	 	1.50%
	 3
	  	3 1.50x but < 2.25x	  	2.75%	 	1.75%
	 4
	  	3 2.25x	  	3.00%	 	2.00%

  
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 Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated
Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b); provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then Pricing Level 4 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and in each case shall remain in effect until
the date on which such Compliance Certificate is delivered. 
 Notwithstanding anything to the contrary contained in this
definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b). 
 “Arrangers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, each in its capacity as co-lead arranger and co-book manager. 

“Capital Expenditures” means, with respect to any Person for any period, any expenditure in respect of
the purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations); provided that Capital Expenditures shall not include expenditures for Capitalized
Leases, purchase money obligations or Synthetic Lease Obligations, in each case, permitted pursuant to Section 7.02(f), for Permitted Acquisitions permitted pursuant to Section 7.03(g), or to the extent made solely with
(i) the proceeds of a common equity contribution to, or issuance of Equity Interests (other than Disqualified Capital Stock) by, the Borrower or (ii) the proceeds from any Disposition pursuant to Section 7.05(c),
(g) or (i). For purposes of this definition, the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment or with insurance proceeds shall be included in Capital Expenditures only to the
extent of the gross amount by which such purchase price exceeds the credit granted by the seller of such equipment for the equipment being traded in at such time or the amount of such insurance proceeds, as the case may be. 

“Cash Equivalents” means any of the following types of Investments, to the extent owned by the Borrower
or any of its Subsidiaries free and clear of all Liens (other than Liens created under the Collateral Documents and other Liens permitted hereunder): 
 (a) U.S. Dollars, Euros, Pound Sterling and other currencies reasonably acceptable to the Administrative Agent (including such currencies as are held as overnight bank deposits and demand deposits
with (i) U.S. banks or (ii) foreign banks having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody’s, respectively); 

(b) readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or
instrumentality thereof having maturities of not more than 24 months from the date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof; 

  
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 (c) time deposits (including Eurodollar time deposits) with, or insured certificates of
deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the principal banking
subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the District of Columbia (including a foreign bank which is a subsidiary of a commercial bank or a holding company of a commercial
bank which is organized under such laws) and (ii) has combined capital and surplus of at least $500,000,000, in each case with maturities of not more than 180 days from the date of acquisition thereof; 

(d) repurchase obligations of any Lender or of any commercial bank satisfying (at the time of acquisition) the requirements of clause
(b) of this definition, having a term of not more than 90 days, with respect to securities issued or fully guaranteed or insured by the United States government; 
 (e) commercial paper issued by (i) any Lender or any Affiliate of any Lender and (ii) any Person organized under the laws of any state of the United States of America and rated at least
“Prime-2” (or the then equivalent grade) by Moody’s or at least “A-2” (or the then equivalent grade) by S&P, in each case with maturities of not more than 180 days from the date of acquisition
thereof; 
 (f) securities with maturities of one year 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 (c) of this definition; 
 (g)
Indebtedness or preferred stock issued by Persons with a rating, at the time of acquisition thereof, of “A” or higher from S&P or “A2” or higher from Moody’s with maturities of one year or less from the date of
acquisition; 
 (h) 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 of the United States, or by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s; and 
 (i) Investments, classified in accordance with GAAP as current assets of the Borrower or any of its Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940,
as amended, which are (i) administered by financial institutions that have one of the two highest ratings obtainable from either Moody’s or S&P, and that have at least 95% of their assets invested continuously in Investments of the
character, quality and maturity described in clauses (a) through (h) of this definition or (ii)(A) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (B) are rated AAA by S&P
and Aaa by Moody’s and (C) have portfolio assets of at least $5,000,000,000. 

  
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 “Consolidated EBITDA” means, at any date of determination,
an amount equal to Consolidated Net Income of the Borrower and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period plus (a) the following to the extent deducted in calculating such Consolidated Net
Income: (i) consolidated interest charges, (ii) the provision for Federal, state, local and foreign income Taxes payable, (iii) depreciation and amortization expense, (iv) non-recurring or unusual charges, (v) any non-cash
expenses or losses for such period that do not constitute reserves and which are not expected to result in cash payments in a future period (including non-cash losses on sales of assets outside the ordinary course of business), (vi) expenses
incurred in connection with the prepayment, amendment, modification or refinancing of Indebtedness during such period, (vii) any non-capitalized transaction costs incurred during such period in connection with an actual or proposed incurrence
of Indebtedness, including a refinancing thereof, issuance of Equity Interests, Investment, Acquisition, Disposition or recapitalization, in each case, to the extent permitted hereunder, (viii) stock based compensation expenses which do not
represent a cash item in such period or any future period (in each case of or by the Borrower and its Subsidiaries for such Measurement Period), (ix) the write-off of unamortized deferred financing, legal and accounting costs in connection with
the refinancing of Indebtedness incurred under Section 7.02(h), and (x) tender premiums, redemption premiums, fees, and other amounts expenses in connection with the tender for and/or redemption of Indebtedness incurred under
Section 7.02(h) and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) Federal, state, local and foreign income Tax credits and (ii) all non-cash items increasing
Consolidated Net Income (in each case of or by the Borrower and its Subsidiaries for such Measurement Period). Consolidated EBITDA shall be calculated for each Measurement Period, on a Pro Forma Basis, after giving effect to, without duplication,
any Material Acquisition (as defined below) and any Material Disposition (as defined below) and, at the Borrower’s election, any other Acquisition or Disposition, in each case, made during each period commencing on the first day of such period
through the date of such transaction (the “Reference Period”) as if such Acquisition or Disposition and any related incurrence or repayment of Indebtedness occurred on the first day of the Reference Period. As used in this
definition, “Material Acquisition” means any Acquisition with Acquisition Consideration of $3,000,000 or more and “Material Disposition” means any Disposition resulting in net sale proceeds of $5,000,000 or more. 

“Consolidated Funded Indebtedness” means, as of any date of determination, for the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder) and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments, (b) all purchase money Indebtedness, (c) all direct (but not contingent) obligations arising under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments, (d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business), (e) all Attributable
Indebtedness, (f) without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (e) above of Persons other than the Borrower or any Subsidiary, and (g) all Indebtedness
of the 

  
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types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which
the Borrower or a Subsidiary is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary, in each case determined on a consolidated basis in accordance with GAAP. 

“Consolidated Interest Charges” means, for any Measurement Period, to the extent payable in cash, the sum
of (a) all interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance
with GAAP, (b) all interest paid or payable with respect to discontinued operations and (c) the portion of rent expense under Capitalized Leases that is treated as interest in accordance with GAAP, in each case, of or by the Borrower and
its Subsidiaries on a consolidated basis for the most recently completed Measurement Period (including to the extent accrued during such Measurement Period). 
 “Consolidated Net Income” means, at any date of determination, the net income (or loss) of the Borrower and its Subsidiaries on a consolidated basis for the most recently completed
Measurement Period; provided that Consolidated Net Income shall exclude (a) extraordinary gains and extraordinary losses for such Measurement Period, (b) the net income of any Subsidiary during such Measurement Period to the extent
that the declaration or payment of dividends or similar distributions by such Subsidiary of such income is not permitted by operation of the terms of its Organization Documents or any agreement, instrument or Law applicable to such Subsidiary during
such Measurement Period, except that the Borrower’s equity in any net loss of any such Subsidiary for such Measurement Period shall be included in determining Consolidated Net Income, (c) any income (or loss) for such Measurement Period of
any Person if such Person is not a Subsidiary, except that the Borrower’s equity in the net income of any such Person for such Measurement Period shall be included in Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such Measurement Period to the Borrower or a Subsidiary as a dividend or other distribution (and in the case of a dividend or other distribution to a Subsidiary, such Subsidiary is not precluded from further
distributing such amount to the Borrower as described in clause (b) of this proviso) and (d) any non-cash effects due to adjustments in the property and equipment, software and other intangible assets, deferred revenue and debt line items
in such Person’s consolidated financial statements pursuant to GAAP resulting from the application of purchase accounting in relation to any consummated acquisition and any increase in amortization or depreciation or other non-cash charges
resulting therefrom and any write-off of any amounts thereof, in any case net of taxes. 
 “Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six, or, if consented
to by all Lenders, nine or twelve months thereafter, as selected by the Borrower in its Revolving Credit Loan Notice; provided that: 

  
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 (a) any Interest Period that would otherwise end on a day that is not a
Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 

(b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 

(c) no Interest Period shall extend beyond the Maturity Date. 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) $200,000,000 and (b) the
Aggregate Commitments. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments. 
 “Permitted Acquisition” means, with respect to the Borrower or any Guarantor, (a) the Casedhole Acquisition, (b) any Acquisition by such Person for which the Acquisition
Consideration does not exceed $30,000,000, (c) any Acquisition by such Person for which the Acquisition Consideration consists solely of Qualified Capital Stock of the Borrower, or (d) any other Acquisition by such Person so long as at the
time of, and after giving effect on a Pro Forma Basis to, such other Acquisition: 
 (i) the pro forma
Consolidated Leverage Ratio as of the end of the most recent Measurement Period for which financial statements of the Borrower are available is less than 2.50 to 1.0 (assuming, for purposes of this clause (i), that such Acquisition, and all other
Acquisitions consummated since the first day of the relevant Measurement Period ending on or prior to the date of such Acquisition, and all Indebtedness incurred, assumed or repaid in connection therewith had occurred on the first day of such
relevant Measurement Period); 
 (ii) pro forma Liquidity is greater than $40,000,000; and 

(iii) the Borrower is in pro forma compliance with all covenants set forth in Section 7.11 as of the end of
the most recent Measurement Period for which financial statements of the Borrower are available (assuming, for purposes of Section 7.11, that such Acquisition, and all other Acquisitions consummated since the first day of the relevant
Measurement Period for each of the financial covenants set forth in Section 7.11 ending on or prior to the date of such Acquisition, and all Indebtedness incurred, assumed or repaid in connection therewith had occurred on the first day
of such relevant Measurement Period); 
 (c) Section 1.01 of the Credit Agreement is hereby amended by deleting the
definition of “Borrower IPO”. 
 (d) Section 1.01 of the Credit Agreement is hereby amended by
replacing the value “$15,000,000” in the definition of “Swing Line Sublimit” with the value “$25,000,000”. 

  
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 (e) Section 1.03(b) of the Credit Agreement is hereby amended by replacing
clause (ii) in the proviso thereto in its entirety with the following: 
 (ii) any operating lease
listed on Schedule 5.22 that later becomes a Capitalized Lease as a result of a change in GAAP shall, during the life of such lease (including any renewals), be treated as an operating lease for all purposes under this Agreement; provided
further that the Borrower shall be entitled for a reasonable period of time after the Casedhole Acquisition to supplement Schedule 5.22 to include the operating leases of Casedhole Holdings or any of its Subsidiaries. 

(f) Section 2.02(a) of the Credit Agreement is hereby amended by replacing the second sentence thereof with the following:

 Each such notice must be received by the Administrative Agent not later than (i) 1:00 p.m. three Business
Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) 11:00 a.m. on the requested date of any Borrowing of Base
Rate Loans; provided, however, that if the Borrower wishes to request Eurodollar Rate Loans having an Interest Period other than one, two, three or six months in duration as provided in the definition of “Interest Period,”
the applicable notice must be received by the Administrative Agent not later than 1:00 p.m. four Business Days prior to the requested date of such Revolving Credit Borrowing, conversion or continuation, whereupon the Administrative Agent shall give
prompt notice to the Lenders of such request and determine whether the requested Interest Period is acceptable to all of them. Not later than 12:00 noon, three Business Days before the requested date of such Revolving Credit Borrowing, conversion or
continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders. 

(g) Section 2.02(b) of the Credit Agreement is hereby amended by replacing “12:00 noon” with “1:00 p.m.”.

 (h) Section 2.02(e) of the Credit Agreement is hereby amended by replacing the word “seven” with
“ten”. 
 (i) Section 2.14(a) of the Credit Agreement is hereby amended by replacing the value
“$75,000,000” therein with the value “$100,000,000”. 
 (j) Section 6.01 of the Credit Agreement
is hereby amended by deleting “, in form and detail satisfactory to the Administrative Agent and the Required Lenders” in the introductory paragraph thereto. 
 (k) Sections 6.02(e) and 6.02(g) of the Credit Agreement are each hereby amended by replacing the value “$15,000,000” therein with the value “$25,000,000”. 

(l) Section 6.02 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause
(h) thereto, relabeling clause (i) thereto as clause (j) and inserting the following clause (i) therein in appropriate alphabetical order: 

  
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 concurrently with the designation of any Subsidiary as an Immaterial
Subsidiary, a duly completed certificate signed by the chief executive officer, chief financial officer, treasurer or controller of the Borrower (which delivery may, unless the Administrative Agent requests executed originals, be by electronic
communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes) setting forth the consolidating financial information of such Immaterial Subsidiary and certifying that such consolidating
financial information fairly presents in all material respects the consolidated financial condition of such Subsidiary; and 

(m) Section 6.03 of the Credit Agreement is hereby amended by deleting clause (f) thereto, replacing “;
and” at the end of clause (e) with “.”, and inserting “and” immediately after clause (d) therein. 
 (n) Section 6.10 of the Credit Agreement is hereby amended by inserting “(which visit, inspection, examination or discussion shall be coordinated by the Administrative Agent)”
immediately after “per fiscal year”; 
 (o) Section 6.11 of the Credit Agreement is hereby amended and
restated in its entirety as follows: 
 Use the proceeds of the Credit Extensions for general corporate purposes
(including the consummation of any Permitted Acquisition) not in contravention of any Law or of any Loan Document. 
 (p)
Section 6.12(a) of the Credit Agreement is hereby amended by replacing the first paragraph immediately preceding clause (i) with the following: 
 Upon the formation or acquisition of any new direct or indirect Subsidiary (other than any CFC, any Subsidiary that is held directly or indirectly by a CFC or any Immaterial Subsidiary) by any Loan Party
(which, for the purpose of this paragraph, shall include any Subsidiary that ceases to be an Immaterial Subsidiary), then the Borrower shall, at the Borrower’s expense: 
 (q) Sections 6.12(a)(iv), 6.12(b)(iii) and 6.12(c)(iii) of the Credit Agreement are each hereby amended by replacing the value “30” therein with the value “45”. 

(r) Section 6.12(e) of the Credit Agreement is amended by replacing the last sentence thereof with the following: 

It is understood and agreed that this Section 6.12(e) shall not apply to (x) any new direct or indirect
Subsidiary that is held directly or indirectly by a CFC or (y) any Immaterial Subsidiary. 
 (s) Section 6.12(f) of the
Credit Agreement is hereby amended by replacing clause (f) thereof in its entirely with the following: 

  
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 (f) Notwithstanding the foregoing, (i) so long as no Event of Default
exists, the Loan Parties shall not be required to provide a deed of trust, mortgage or the items listed in Section 6.12(a)(iii) and (iv)(B) or 6.12(b)(iii)(B) and (b)(v) with respect to any real property with a fair
market value of less than $5,000,000 and (ii) if at any time all Immaterial Subsidiaries, taken as a whole, (x) contribute more than 5% of Consolidated EBITDA for the most recently completed Measurement Period for which financial
statements have been delivered pursuant to Section 6.01(a) or 6.01(b) or (y) contribute more than 5% of Consolidated Total Assets as of the most recently ended fiscal quarter for which financial statements have been delivered
pursuant to Section 6.01(a) or 6.01(b), then the Borrower shall designate which of such Subsidiaries shall no longer constitute “Immaterial Subsidiaries” for purposes of this Credit Agreement to the extent necessary to
cause such excess to be eliminated and, with respect to any Subsidiary that ceases to be an Immaterial Subsidiary as a result of such designation, the Borrower shall take, and cause such Subsidiary to take, such action as is necessary to comply with
this Section 6.12. 
 (t) Section 7.01 of the Credit Agreement is hereby amended by replacing clause
(l) thereto in its entirety with the following: 
 (l) other Liens securing any obligations (including
Indebtedness) outstanding in an aggregate principal amount not to exceed $25,000,000; provided that no such Lien shall (i) extend to or cover any Collateral or (ii) secure obligations under Guarantees provided pursuant to
Section 7.02(e); 
 (u) Section 7.02 of the Credit Agreement is hereby amended by replacing clause
(b) thereto in its entirety with the following: 
 (b) Indebtedness among the Borrower and its
Subsidiaries, which Indebtedness shall (i) in the case of Indebtedness owed to a Loan Party, constitute “Collateral” under the Security Agreement (ii) in the case of Indebtedness owing by a Loan Party to a Subsidiary that is not
a Guarantor or by any Domestic Subsidiary to a Domestic Subsidiary that is not a Guarantor, be subordinated to the Obligations pursuant to terms substantially the same as the subordination terms applicable to the Guarantors pursuant to the Guaranty,
and (iii) be otherwise permitted under the provisions of Section 7.03; 
 (v) Section 7.02(e) of the
Credit Agreement is hereby amended by replacing the value “$20,000,000” in the proviso with the value “$125,000,000”. 
 (w) Section 7.02 of the Credit Agreement is hereby amended by replacing clause (f) thereto in its entirety with the following: 

(f) Indebtedness in respect of Capitalized Leases, Synthetic Lease Obligations and purchase money obligations for fixed or
capital assets within the limitations set forth in Section 7.01(i); provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding (including any such Indebtedness outstanding on the date
hereof) shall not exceed as of the date of incurrence of any such Indebtedness the greater of (i) $75,000,000 and (ii) 15% of Consolidated Tangible Assets of the Borrower and its Subsidiaries as of the most recently ended fiscal quarter
for which financial statements have been delivered pursuant to Section 6.01(a) or 6.01(b); 

  
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 (x) Section 7.02(g)(iii) of the Credit Agreement is hereby amended by replacing
the value “$20,000,000” therein with the value “$40,000,000”. 
 (y) Section 7.02 of the Credit
Agreement is hereby amended by replacing clause (h) thereto in its entirety with the following: 

(h) unsecured Indebtedness in an aggregate principal amount not to exceed $400,000,000 issued by the Borrower or any of
its Subsidiaries; provided that (i) immediately prior to and after giving effect to the issuance of such Indebtedness, there would be no Default under this Agreement, (ii) such Indebtedness’ scheduled maturity is no earlier
than twelve (12) months after the Maturity Date, (iii) such Indebtedness does not require any scheduled repayments, defeasance or redemption (or sinking fund therefor) of any principal amount thereof prior to maturity, and (iv) no
indenture or other agreement governing such Indebtedness contains (A) maintenance financial covenants that are more restrictive than the maintenance financial covenants set forth in this Agreement or (B) covenants or events of default that
are more restrictive in any material respect on the Borrower or any of its Subsidiaries than then applicable market terms and conditions for comparable issuers and issuances, and any refinancings, refundings, renewals or extensions thereof;
provided that (x) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal, or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing, refunding, renewal, or extension and (y) the terms of such refinancing, refunding, renewing, or extending Indebtedness satisfy the requirements of this Section 7.02(h);

 (z) Section 7.02(k) of the Credit Agreement is hereby amended by replacing the value “$20,000,000” with
the value “$125,000,000”. 
 (aa) Section 7.03(g) of the Credit Agreement is hereby amended by deleting
“, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders,” in clause (v) thereto. 
 (bb) Section 7.03 of the Credit Agreement is hereby amended by replacing clause (h) thereto in its entirety with the following: 

(h) other Investments (other than Investments in Foreign Subsidiaries, Foreign Joint Ventures, foreign operations and
foreign assets) not exceeding in the aggregate as of the date of any such Investment 15% of Consolidated Tangible Assets of the Borrower and its Subsidiaries as of the most recently ended fiscal quarter for which financial statements have been
delivered pursuant to Section 6.01(a) or 6.01(b); 
 (cc) Section 7.03(k) of the Credit Agreement
is hereby amended by replacing the value “$25,000,000” in the proviso with the value “$125,000,000”. 

  
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 (dd) Section 7.03 of the Credit Agreement is hereby amended by deleting the word
“and” at the end of clause (n) thereto, replacing the period at the end of clause (o) thereto with the language “; and”, and inserting the following clause (p) therein in appropriate
alphabetical order: 
 (p) the one-time contribution by C&J Spec-Rent Services, Inc. of all of its Equity
Interests in the Project Foreign Subsidiary (or the one-time simultaneous contribution of all of its Equity Interests in multiple Project Foreign Subsidiaries) to another Foreign Subsidiary of C&J Spec-Rent Services, Inc. 

(ee) Section 7.05(c)(ii) of the Credit Agreement is hereby amended by replacing the reference to “60” in clause
(y) thereof with “180”. 
 (ff) Section 7.05 of the Credit Agreement is hereby amended by replacing
clause (g) thereto in its entirety with the following: 
 (g) Dispositions by the Borrower and its
Subsidiaries not otherwise permitted under this Section 7.05; provided that the aggregate book value of all property Disposed of in reliance on this clause (g) in any fiscal year shall not exceed as of the date of any such
Disposition the greater of (i) $10,000,000 and (ii) 10% of Consolidated Tangible Assets of the Borrower and its Subsidiaries as of the most recently ended fiscal quarter for which financial statements have been delivered pursuant to
Section 6.01(a) or 6.01(b); 
 (gg) Section 7.05 of the Credit Agreement is hereby amended by
inserting “(other than Dispositions (i) to the Borrower or any other Loan Party or (ii) constituting the making of Investments permitted under Section 7.03(p))” in the final line thereof immediately before “shall
be for fair market value”. 
 (hh) Section 7.06(d) of the Credit Agreement is hereby amended by inserting
“restricted stock agreement, restricted stock unit agreement,” in the fifth line thereof immediately before “stockholders’ agreement” and by replacing the value “$5,000,000” in the proviso with the value
“$10,000,000”. 
 (ii) Section 7.06(e) of the Credit Agreement is hereby amended by replacing clause
(ii) thereto in its entirety with the following: 
 (ii) any repurchases, redemptions or other
acquisitions or retirements for value of Equity Interests made or deemed to be made in lieu of withholding Taxes in connection with any exercise, vesting, settlement or exchange, as applicable, of stock options, warrants, restricted stock,
restricted stock units or other similar rights; 
 (jj) Section 7.06 of the Credit Agreement is hereby amended by
replacing clause (h) thereto in its entirety with the following: 
 (h) Intentionally deleted; and

 (kk) Section 7.06 of the Credit Agreement is hereby amended by replacing clause (i) thereto in its
entirety with the following: 

  
 -12-

 (i) so long as the Consolidated Leverage Ratio would not exceed 2.50 to 1:00
after giving pro forma effect thereto, the Borrower may make Restricted Payments in an amount not to exceed the sum of (i) $75,000,000 and (ii) 25% of Consolidated Net Income of the Borrower and its Subsidiaries arising after
January 1, 2012 (and computed on a cumulative consolidated basis with other such Restricted Payments by the Borrower since such date). 
 (ll) Section 7.07 of the Credit Agreement is hereby amended by replacing “on the date hereof” with “on the First Amendment Effective Date”. 

(mm) Section 7.08 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

Enter into any transaction of any kind with any Affiliate of the Borrower, whether or not in the ordinary course of
business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person other
than an Affiliate; provided that the foregoing restriction shall not apply to transactions between or among the Loan Parties or any transaction permitted under Section 7.03(p). 

(nn) Section 7.09(a) of the Credit Agreement is hereby amended by replacing clause (i)(B)(1) thereto in its entirety
with the following: 
 (1) in effect on the First Amendment Effective Date and set forth on Schedule 7.09,
or 
 (oo) Section 7.09(a) of the Credit Agreement is hereby amended by replacing clause (ii) thereto in
its entirety with the following: 
 (ii) of any Subsidiary to Guarantee the Obligations or 

(pp) Section 7.11 of the Credit Agreement is hereby amended by replacing clause (b) thereto in its entirety with
the following: 
 (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio at any time
during any period of four fiscal quarters of the Borrower to be greater than 3.25:1.00. 
 (qq) Section 7.12 of the
Credit Agreement is hereby amended and restated in its entirety as follows: 
 Make or become legally obligated
to make any Capital Expenditure, except for Capital Expenditures made by the Borrower or its Subsidiaries in the ordinary course of business not exceeding as of the date of any such Capital Expenditure in the aggregate for the Borrower and its
Subsidiaries during any fiscal year the greater of (a) 12.5% of Consolidated Tangible Assets of the Borrower and its Subsidiaries as of the most recently ended fiscal quarter for which financial statements have been delivered pursuant to

  
 -13-

 
Section 6.01(a) or 6.01(b) and (b) $200,000,000; provided, however, that so long as no Default has occurred and is continuing or would result from such
expenditure, (i) up to 50% of any unused amount set forth above, if not expended in the fiscal year for which it is permitted above, may be carried over for expenditure in the next following fiscal year (such amount, the “CapEx Rollover
Amount”) (provided, further, that (x) in no event shall the CapEx Rollover Amount for any fiscal year exceed $50,000,000 and (y) if a CapEx Rollover Amount is so carried over, it will be deemed used in the
immediately succeeding fiscal year before the amount set forth opposite for such fiscal year above), (ii) for any fiscal year, the amount of Capital Expenditures that would otherwise be permitted in such fiscal year pursuant to this
Section 7.12 (including as a result of the application of any CapEx Rollover Amount) may be increased by an amount not to exceed $50,000,000 of the scheduled amount permitted for the immediately succeeding fiscal year (the “CapEx
Pull-Forward Amount”) (provided that the actual CapEx Pull-Forward Amount in respect of any such fiscal year shall reduce, on a dollar-for-dollar basis, the amount of Capital Expenditures that are permitted to be made in the
immediately succeeding fiscal year), and (iii) Capital Expenditures in excess of the foregoing amounts set forth in parts (a) and (b) above shall be permitted if, as of the date of any such Capital Expenditure (and after giving pro
forma effect to such Capital Expenditure and any concurrent incurrence of Indebtedness), (x) the pro forma Consolidated Leverage Ratio as of the end of the most recently ended fiscal quarter for which financial statements have been delivered
pursuant to Section 6.01(a) or 6.01(b) is less than 2.00 to 1.0, (y) pro forma Liquidity is greater than $40,000,000 and (z) no Default exists and such Capital Expenditure could not reasonably be expected to cause a
Default. 
 (rr) Section 7.15 of the Credit Agreement is hereby amended by replacing the reference to
“1.50” in clause (b)(i) thereof with “2.00” and by deleting “and demonstrating in a manner reasonably satisfactory to the Administrative Agent”. 
 (ss) Section 8.01 of the Credit Agreement is hereby amended by replacing each value of “$15,000,000” therein with “$25,000,000”. 

(tt) Section 8.01(b) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

(b) Specific Covenants. The Borrower fails to perform or observe any term, covenant or agreement contained in any
of Sections 6.03(a), 6.03(b), 6.05(a), 6.11, or Article VII; or 
 (uu)
Section 8.01(c) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

(c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in
Sections 8.01(a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after the earlier to occur of (i) written notice thereof being given to the Borrower
by the Administrative Agent or (ii) a Responsible Officer of a Loan Party otherwise becoming aware of such default; or 

  
 -14-

 (vv) The Credit Agreement is hereby amended by replacing Exhibit D in its entirety
with Exhibit D attached hereto. 
 (ww) The Credit Agreement is hereby amended by replacing Schedule 7.09 in its
entirety with Schedule 7.09 attached hereto. 
 (xx) The Credit Agreement is hereby amended by replacing Schedule
1.01 in its entirety with Schedule 1.01 attached hereto. Upon effectiveness of this Amendment each Lender shall have the Commitment set forth opposite such Lender’s name on Schedule 1.01 attached hereto under the caption
“Revolving Credit Commitment”. 
 Section 3. Increase of Commitments and Addition of New Lenders. To
effectuate the increase in the Aggregate Commitments under the Credit Agreement, certain Lenders have severally agreed to increase their respective Commitments. Effective on the Amendment Effective Date, the Commitment of each such Lender is
increased to the respective Commitment set forth opposite its name on Schedule 1.01 attached hereto under the caption “Revolving Credit Commitment”. Effective on the Amendment Effective Date, each of HSBC Bank USA, National
Association and Regions Bank (collectively, the “New Lenders”) is hereby added to the Credit Agreement as a Lender, with a Commitment as provided on Schedule 1.01 attached hereto, and each such New Lender agrees to be bound
by all of the terms and provisions of the Credit Agreement binding on each Lender. 
 Section 4. Lender Credit Decision.
Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 6.01 of the Credit Agreement and such other documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Amendment and to agree to the various matters set forth herein. Each Lender also acknowledges that it will, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement. 

Section 5. Representations and Warranties. The Borrower represents and warrants that (a) the execution, delivery, and
performance of this Amendment by the Borrower are within the corporate or equivalent power and authority of the Borrower and have been duly authorized by all necessary corporate or other organizational action, (b) this Amendment and the Credit
Agreement as amended hereby constitute legal, valid, and binding obligations of the Borrower, enforceable against the Borrower in accordance with their terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting creditors’ rights generally or by general principles of equity, (c) the representations and warranties of the Borrower and each other Loan Party contained in each Loan Document are true
and correct in all material respects (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) on and as of the Amendment Effective Date, except
to the extent that 

  
 -15-

 
such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (except for such representations and warranties
that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of such earlier date, and except that for purposes of this Section 5(c) the representations and warranties contained in
Sections 5.05(a) and (b) of the Credit Agreement are deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b) of the Credit Agreement, respectively, (d) no Default exists
or will result from this Amendment, and (e) the Liens under the Collateral Documents are valid and subsisting. 
 Section
6. Effect on Credit Documents. (a) Except as amended herein, the Credit Agreement and all other Loan Documents remain in full force and effect as originally executed. Nothing herein shall act as a waiver of any of the Administrative
Agent’s or any Lender’s rights under the Loan Documents as amended, including the waiver of any default or event of default, however denominated. The Borrower acknowledges and agrees that this Amendment shall in no manner impair or affect
the validity or enforceability of the Credit Agreement or any other Loan Document. This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of representations,
warranties, and covenants under this Amendment may be a default or event of default under the other Loan Documents. 
 (b) Any
Loans outstanding on the Amendment Effective Date shall be re-allocated among the Lenders so that the Loans outstanding immediately following the increase in the Aggregate Commitments under this Amendment are held by the Lenders in proportion to the
Lenders’ respective Applicable Percentages (giving effect to such increase). The Borrower shall prepay any Revolving Credit Loans outstanding on the Amendment Effective Date (and pay any additional amounts required pursuant to
Section 3.05 of the Credit Agreement) to the extent necessary to keep the outstanding Revolving Credit Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Commitments in connection with this
Amendment and the Borrower may use advances from the Lenders having new or increased commitments for such prepayment. 
 Section
7. Effectiveness. This Amendment shall become effective, and the Credit Agreement shall be amended as provided for herein as of the Amendment Effective Date, upon the satisfaction of the following conditions: 

(a) the Administrative Agent (or its counsel) shall have received counterparts hereof duly executed and delivered by a duly authorized
officer of the Borrower, each Guarantor, and by the Lenders whose consent is required to effect the amendments contemplated hereby; 
 (b) the Administrative Agent (or its counsel) shall have received each of the following items, each in form and substance reasonably acceptable to the Administrative Agent and, where applicable, duly
executed and delivered by a duly authorized officer of each applicable Loan Party: 
 (i) to the extent requested, a Note for
each New Lender requesting a Note; 

  
 -16-

 (ii) a certificate for each Loan Party dated as of the Amendment Effective Date and signed
by a Responsible Officer of such Loan Party, (w) certifying such Loan Party’s existence and good standing in its state of organization, (x) certifying and attaching a true and correct copy of the governing documents of such Loan Party
as in full force and effect on the Amendment Effective Date, or certifying that the governing documents of such Loan Party have not been modified since previously certified to the Administrative Agent and remain in full force and effect,
(y) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to this Amendment and the increase to the Commitments hereunder, and (z) certifying the incumbency and signatures of each Responsible Officer
of such Loan Party authorized to act as a Responsible Officer in connection with this Amendment, the increase to the Commitments hereunder, and the other Loan Documents to which such Loan Party is to be a party in connection herewith; 

(iii) a certificate dated as of the Amendment Effective Date signed by a Responsible Officer of the Borrower certifying that, before and
after giving effect to this Amendment and the increase to the Commitments hereunder, (A) the representations and warranties of the Borrower and each other Loan Party contained in Article V of the Credit Agreement or any other Loan
Document, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the Amendment
Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (without duplication of any materiality qualifier contained
therein) as of such earlier date, and (B) no Default exists or will result from this Amendment, the increase to the Commitments hereunder, or the application of the proceeds thereof; 

(iv) a certificate signed by a Responsible Officer of the Borrower, delivered in accordance with Section 7.03(g) of the Credit
Agreement, with respect to the acquisition by the Borrower (or one or more of its Subsidiaries) of all of the Equity Interests of Casedhole Holdings, Inc., a Delaware corporation (such acquisition, the “Casedhole Acquisition”);

 (v) an executed Stock Purchase Agreement, in form and substance reasonably satisfactory to the Administrative Agent, relating
to the Casedhole Acquisition; and 
 (vi) pro forma consolidated projections of the Borrower and its Subsidiaries (after giving
effect to the Casedhole Acquisition) for the fiscal years 2012 – 2015 in form and substance reasonably satisfactory to the Administrative Agent; and 
 (c) the Administrative Agent shall have received, or shall concurrently receive (i) for the account of each Lender increasing its Commitment pursuant hereto that has delivered an increased Commitment
with respect to the Credit Agreement to the Administrative Agent (or its 

  
 -17-

 
counsel), an upfront fee in an amount to be agreed, expected to range from 0.40% to 0.50% on the final allocated principal amount by which such Lender’s Commitment is increased hereunder,
(ii) for the account of each New Lender joining the Credit Agreement hereby that has delivered a new Commitment with respect to the Credit Agreement to the Administrative Agent (or its counsel), an upfront fee in an amount to be agreed,
expected to range from 0.40% to 0.50% on the final allocated principal amount of such New Lender’s Commitment as set forth opposite such New Lender’s name on Schedule 1.01 attached hereto, (iii) for the account of each Lender
having a Commitment with respect to the existing Credit Agreement that has delivered a duly executed counterpart of this Amendment to the Administrative Agent (or its counsel), a consent fee in an amount equal to 0.10% of the amount of such
Lender’s Commitment with respect to the existing Credit Agreement (without giving effect to any amounts by which such Lender’s Commitment may be increased under this Amendment), and (iv) for the account of the applicable Person,
payment of all other fees payable in connection with this Amendment. 
 Section 8. Reaffirmation of Guaranty. By its
signature hereto, each Guarantor represents and warrants that such Guarantor has no defense to the enforcement of the Guaranty, and that according to its terms the Guaranty will continue in full force and effect to guaranty the Borrower’s
obligations under the Credit Agreement and the other amounts described in the Guaranty following the execution of this Amendment. 
 Section 9. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
 Section 10. Miscellaneous. The miscellaneous provisions set forth
in Article X of the Credit Agreement apply to this Amendment. This Amendment may be signed in any number of counterparts, each of which shall be an original, and may be executed and delivered by telecopier or other electronic imaging means.

 Section 11. ENTIRE AGREEMENT. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

[Signature pages follows.] 

  
 -18-

 EXECUTED as of the first date above written. 

 

			
	C&J ENERGY SERVICES, INC.
		
	By:	 	/s/ Randall C. McMullen, Jr.
	Name:	 	Randall C. McMullen, Jr.
	Title:	 	 Executive Vice President, Chief Financial
 Officer and Treasurer

  

			
	C&J SPEC-RENT SERVICES, INC.
		
	By:	 	/s/ Randall C. McMullen, Jr.
	Name:	 	Randall C. McMullen, Jr.
	Title:	 	 Vice President, Chief Financial Officer
 and Treasurer

  

			
	TOTAL E&S, INC.
		
	By:	 	/s/ Randall C. McMullen, Jr.
	Name:	 	Randall C. McMullen, Jr.
	Title:	 	 Vice President, Chief Financial Officer
 and Treasurer

  

			
	C&J VLC, LLC 
		
	By:	 	/s/ Randall C. McMullen, Jr.
	Name:	 	Randall C. McMullen, Jr.
	Title:	 	Vice President and Treasurer

  
 Signature Page
to Amendment No. 1 and Joinder to Credit Agreement 

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

		
	By:	 	/s/ Rosanne Parsill
	Name:	 	Rosanne Parsill
	Title:	 	Vice President

  
 Signature Page
to Amendment No. 1 and Joinder to Credit Agreement 

 
			
	 BANK OF AMERICA, N.A.,
 as a Lender, Swing Line Lender and L/C Issuer

		
	By:	 	/s/ Adam Rose
	Name:	 	Adam Rose
	Title:	 	Senior Vice President

  
 Signature Page
to Amendment No. 1 and Joinder to Credit Agreement 

 
			
	 Wells Fargo Bank, N.A.,
 as a Lender

		
	By:	 	/s/ T. Alan Smith
	Name:	 	T. Alan Smith
	Title:	 	Managing Director

  

			
	 Comerica Bank.,
 as a Lender

		
	By:	 	/s/ Cyd Dillahunty
	Name:	 	Cyd Dillahunty
	Title:	 	Vice President

  

			
	 Citibank, N.A.,
 as a Lender

		
	By:	 	/s/ Ysantha Gunaratna
	Name:	 	Ysantha Gunaratna
	Title:	 	Vice President

  

			
	 JPMorgan Chase Bank, N.A.,
 as a Lender

		
	By:	 	/s/ Thomas Okamoto
	Name:	 	Thomas Okamoto
	Title:	 	Authorized Officer

  
 Signature Page
to Amendment No. 1 and Joinder to Credit Agreement 

 
			
	 HSBC Bank USA, N.C.,
 as a Lender

		
	By:	 	/s/ Bruce Robinson
	Name:	 	Bruce Robinson
	Title:	 	Vice President

  

			
	 Regions Bank.,
 as a Lender

		
	By:	 	/s/ Jason Meadows
	Name:	 	Jason Meadows
	Title:	 	Senior Vice President

  

			
	 Amegy Bank National Association,
 as a Lender

		
	By:	 	/s/ Blake Stoehr
	Name:	 	Blake Stoehr
	Title:	 	Senior Vice President

  

			
	 Captial One, N.A.,
 as a Lender

		
	By:	 	/s/ John W. Stam
	Name:	 	John W. Stam
	Title:	 	Vice President

  
 Signature Page
to Amendment No. 1 and Joinder to Credit Agreement 

 EXHIBIT D 

FORM OF COMPLIANCE CERTIFICATE 
 Financial Statement Date:
                ,                 

 

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

Ladies and Gentlemen: 

Reference is made to that certain Credit Agreement, dated as of April 19, 2011 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among C&J Energy Services, Inc., a Delaware corporation (the “Borrower”), the
Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The
undersigned1 hereby certifies as of the date hereof that
he/she is the                     of the Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the
Administrative Agent on the behalf of the Borrower, and that: 
 [Use following paragraph 1 for fiscal year-end financial
statements] 
 1. The Borrower has delivered the year-end audited financial statements required by
Section 6.01(a) of the Agreement for the fiscal year of the Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following paragraph 1 for fiscal quarter-end financial statements] 

1. The Borrower has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal
quarter of the Borrower ended as of the above date. Such financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at
such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 2. The
undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the
accounting period covered by such financial statements. 
 3. A review of the activities of the Borrower during such fiscal
period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents, and 

 

	1 	 This certificate should be from the chief executive officer, chief financial officer, treasurer or controller of the Borrower.

  
 Exhibit D to
Credit Agreement 
 -1- 

 [select one:] 

[to the best knowledge of the undersigned, during such fiscal period the Borrower performed and observed each covenant and condition of
the Loan Documents applicable to it, and no Default has occurred and is continuing.] 
 —or— 

[to the best knowledge of the undersigned, the following covenants or conditions have not been performed or observed and the following is
a list of each such Default and its nature and status:] 
 4. The representations and warranties of the Borrower and each other
Loan Party contained in Article V of the Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof,
except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations
and warranties contained in Sections 5.05(a) and (b) of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b) of the Agreement, respectively.

 5. The financial covenant analyses and information set forth on Schedules 1 and 2 attached hereto are true and
accurate on and as of the date of this Certificate. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate
as of                 ,                 . 

 

			
	C&J ENERGY SERVICES, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit D to
Credit Agreement 
 -2- 

 For the Quarter/Year ended
                        ,             (“Statement
Date”) 
 SCHEDULE 1 
 to the Compliance Certificate 
 ($ in 000’s) 

 

									
	I.	  	Section 7.11 (a) – Consolidated Interest Coverage Ratio.	  			
				
		  	A.	  	Consolidated EBITDA for Measurement Period ending on above date (“Subject Period”) as per Schedule 2:	  	 	$            	  
				
		  	B.	  	Consolidated Interest Charges for Subject Period:	  	 	$            	  
				
		  	C.	  	Consolidated Interest Coverage Ratio (Line I.A. ÷ Line I.B):	  	 	             to 1	  
				
		  		  	Minimum required:	  	 	3.00 to 1	  
			
	II.	  	Section 7.11 (b) – Consolidated Leverage Ratio.	  			
				
		  	A.	  	Consolidated Funded Indebtedness at Statement Date	  	 	$            	  
				
		  	B.	  	Consolidated EBITDA for Subject Period (Line I.A. above):	  	 	$            	  
				
		  	C.	  	Consolidated Leverage Ratio (Line II.A ÷ Line II.B):	  	 	             to 1	  
				
		  		  	Maximum permitted:	  	 	3.25 to 1	  
			
	III.	  	Section 7.12 – Capital Expenditures.	  			
				
		  	A.	  	Capital Expenditures made during fiscal year to date:	  	 	$            	  
				
		  	B.	  	Base permitted Capital Expenditures for such fiscal
year2:	  	 	$            	  
				
		  	C.	  	Amount rolled over from prior year3:	  	 	$            	  
				
		  	D.	  	Amount pulled back from succeeding year4	  	 	$            	  

  

	2 	 Greater of (a) 12.5% of Consolidated Tangible Assets of the Borrower and its Subsidiaries as of the most recently ended fiscal quarter for which
financial statements have been delivered pursuant to Section 6.01(a) or 6.01(b) and (b) $200,000,000 

	3 	 CapEx Rollover Amount cannot exceed 50% of unused amount from prior year and is subject to max carry-over in any fiscal year of $50,000,000.

	4 	 CapEx Pull-Forward Amount cannot exceed $50,000,000. 

  
 Exhibit D to
Credit Agreement 
 -3- 

							
				
		 	E.	  	Amount pulled back from such fiscal year to preceding year	  	$            
				
		 	F.	  	 Excess (deficit) for covenant compliance
 ((Line III.B + III.C + III.D – III.E.) – III.A.):
	  	$            
				
		 	G.	  	If F is negative number, pro forma Consolidated Leverage Ratio5:	  	         to 1
				
		 	H.	  	If F is negative number, pro forma
Liquidity6:	  	$            
				
		 	I.	  	If F is negative number, is G less than 2.00 to 1.00 and H > $40,000,000?	  	[Yes/No]
				
		 	J.	  	Covenant Compliance?	  	[Yes/No]

  

	5 	 Must give pro forma effect to such Capital Expenditure and any concurrent incurrence of Indebtedness 

	6 	 Must give pro forma effect to such Capital Expenditure and any concurrent incurrence of Indebtedness 

  
 Exhibit D to
Credit Agreement 
 -4- 

 For the Quarter/Year ended
                    (“Statement Date”) 
 SCHEDULE 2 
 to the Compliance Certificate 

($ in 000’s) 

Consolidated EBITDA 
 (in accordance with the definition of Consolidated EBITDA 
 as set forth in the
Agreement) 
  

											
	 Consolidated

EBITDA
	  	
Quarter
Ended
	  	
Quarter
Ended
	  	
Quarter
Ended
	  	
Quarter
Ended
	  	Twelve
Months
Ended

						
	 Consolidated Net Income
	  		  		  		  		  	
						
	 +  consolidated interest charges
	  		  		  		  		  	
						
	 +  income taxes
	  		  		  		  		  	
						
	 +  depreciation expense
	  		  		  		  		  	
						
	 +  amortization expense
	  		  		  		  		  	
						
	 +  non-recurring or unusual charges
	  		  		  		  		  	
						
	 +  non-cash expenses or losses that do not constitute reserves and which are not expected to result in cash payments in
a future period (including non-cash losses on sales of assets outside the ordinary course of business)
	  		  		  		  		  	
						
	 +  expenses incurred in connection with the prepayment, amendment, modification or refinancing of
Indebtedness
	  		  		  		  		  	

  
 Exhibit D to
Credit Agreement 

											
						
	 + non-capitalized transaction costs incurred in connection with an actual or proposed incurrence or refinancing of Indebtedness,
issuance of Equity Interests, Investment, Acquisition, Disposition or recapitalization
	  		  		  		  		  	
						
	 + non-cash stock-based compensation expenses
	  		  		  		  		  	
						
	 + costs of refinancing Indebtedness incurred under Section 7.02(h) of the Agreement
	  		  		  		  		  	
						
	 + Amount expensed in connection with tender for / redemption of Indebtedness incurred under Section 7.02(h) of the
Agreement
	  		  		  		  		  	
						
	 - income tax credits
	  		  		  		  		  	
						
	 - non-cash income
	  		  		  		  		  	
						
	 = Consolidated EBITDA
	  		  		  		  		  	

  
 Exhibit D to
Credit Agreement 

 SCHEDULE 1.01 

COMMITMENTS 

AND APPLICABLE PERCENTAGES 
  

									
	Lender	  	Revolving Credit
Commitment	 	  	Revolving Credit Applicable
Percentage	 
	 Bank of America, N.A.
	  	$	65,000,000.00	  	  	 	16.250000000	% 
	 Wells Fargo Bank, National Association
	  	$	65,000,000.00	  	  	 	16.250000000	% 
	 Comerica Bank
	  	$	50,000,000.00	  	  	 	12.500000000	% 
	 JPMorgan Chase Bank, N.A.
	  	$	42,500,000.00	  	  	 	10.625000000	% 
	 Citibank, N.A.
	  	$	42,500,000.00	  	  	 	10.625000000	% 
	 HSBC Bank USA, N.A.
	  	$	40,000,000.00	  	  	 	10.000000000	% 
	 Regions Bank
	  	$	40,000,000.00	  	  	 	10.000000000	% 
	 Amegy Bank N.A.
	  	$	30,000,000.00	  	  	 	7.500000000	% 
	 Capital One, N.A.
	  	$	25,000,000.00	  	  	 	6.250000000	% 
	 TOTAL
	  	$	400,000,000.00	  	  	 	100.000000000	% 

 Schedule 1.01 to Credit Agreement 

 Schedule 7.09 
 Burdensome Agreements 
 1. Office Lease Agreement between Bank of America, N.A. and C&J
Spec-Rent Services, Inc. (500 N. Shoreline, Suite 350, Corpus Christi, Texas 78401) (which Office Lease Agreement requires lessor consent to an assignment by the lessee of its rights and obligations thereunder to a third party, including the
Borrower or any Guarantor) 
 2. Lease, dated Feb. 1, 2011, between C&J Spec-Rent Services and Monell Investments LLC (5717 US Hwy 277,
Carrizo Springs, Texas 78834) (which Lease requires the lessee to notify the lessor upon any assignment of its rights and obligations thereunder to an affiliate, including the Borrower or any Guarantor) 

3. Commercial Lease Contract, dated Aug. 1, 2011, between Total E&S, Inc. and Glen and Lisa Guthrie (2533 and 2535 Hwy 377 West, Granbury, Texas
76048 and adjoining fenced lot) (which Commercial Lease Contract requires lessor consent to an assignment by the lessee of its rights and obligations thereunder to a third party, including the Borrower or any Guarantor) 

4. Industrial Lease, dated Jul. 27, 2011, between C&J Spec-Rent Services, Inc. and Marshall Economic Development Corporation (1108 Commerce Street,
Marshall, Texas 75670) (which Industrial Lease requires lessor consent to an assignment by the lessee of its rights and obligations thereunder to a third party, including the Borrower or any Guarantor) 

5. Master Operating Lease Agreement, dated Jul. 14, 2010, between C&J Spec-Rent Services, Inc., C&J Energy Services, Inc. and BB&T Equipment
Finance Corporation (which Master Operating Lease Agreement forbids assignment by the lessees of their rights and obligations thereunder to a third party, including any Guarantor not party to the Master Operating Lease Agreement) 

6. Master Operating Lease Agreement, dated Jul. 21, 2010, between C&J Spec-Rent Services, Inc., C&J Energy Services, Inc. and AIG Commercial
Equipment Finance, Inc. (which Master Operating Lease Agreement forbids assignment by the lessees of their rights and obligations thereunder to a third party, including any Guarantor not party to the Master Operating Lease Agreement) 

  
 Schedule 7.09
to Credit AgreementDebt Commitment Letter

 Exhibit 10.1 

June 6, 2012 
 KCP Holdco, Inc. 
 603 West 50th Street 
 New York, New York 10019 
 $165,000,000 Senior Secured Credit Facility

 Commitment Letter 
 Ladies and Gentlemen: 
 You have advised each of Wells Fargo Bank, National Association
(“Wells Fargo”) and Wells Fargo Capital Finance, LLC (“WFCF”) that KCP Holdco, Inc. (“Parent”), an entity formed and controlled by Kenneth D. Cole, individually, intends to,
directly or indirectly, acquire (the “Acquisition”) (a) immediately prior to the effective time of the merger (the “Merger Effective Time”) of KCP Mergerco, Inc., a New York corporation
(“Merger Sub”), with and into Kenneth Cole Productions, Inc., a New York corporation (the “Target”), with the Target being the survivor after the merger, a portion of the capital stock (the
“Rollover Equity”) of the Target, pursuant to the Rollover Agreement (as defined in the Agreement and Plan of Merger, dated as of June 6, 2012, by and among Parent, Merger Sub and the Target (together with all exhibits,
disclosure letters and schedules thereto, the “Merger Agreement”)), such Rollover Equity to be contributed to Parent, and (b) at the Merger Effective Time, all of the outstanding capital stock of the Target that is not
then owned by Parent or it subsidiaries. Parent has also informed the Credit Parties (as defined below) that the total funds needed to (a) finance the Acquisition, (b) refinance certain existing indebtedness of the Target (which shall
be accomplished pursuant to an amendment and restatement of the existing credit facility of the Target), (c) pay fees, commissions and expenses incurred in connection with the Transactions (as defined below) and (d) finance ongoing working
capital requirements and other general corporate purposes, shall consist of the following: (i) a proposed senior secured credit facility in an aggregate principal amount of $165,000,000, consisting of a senior secured revolving credit facility
in an aggregate principal amount of $110,000,000 (the “Senior Revolving Facility”) and a senior secured term loan facility in an aggregate principal amount of $55,000,000 (the “Term Loan
Facility”; together with the Revolving Facility, the “Senior Credit Facility”) and (ii) a cash equity contribution, directly or indirectly to Parent. For the avoidance of doubt, the Target and its
subsidiaries shall not have any liability under or obligations with respect to the Senior Credit Facilities until the Merger Effective Time has occurred. 
 The Acquisition and the transactions described above, together with the payment of fees and expenses in connection therewith, are hereinafter referred to collectively as the
“Transactions”. Unless otherwise indicated, references to Parent and its subsidiaries shall be deemed to include, after the Closing Date, the Target and its subsidiaries after giving effect to the Acquisition. The undersigned
Credit Parties (as defined below) are hereby pleased to deliver this commitment letter to you (together with exhibits and annexes attached hereto, this “Commitment Letter”). 

 

	1.	Commitments. 

  

	 	a.	Senior Revolving Facility. Wells Fargo is pleased to advise Parent of its fully-underwritten commitment to provide 100% of the Senior Revolving Facility (in the
amount of $110,000,000) upon the terms and subject solely to the conditions set forth in Section 5 below and the conditions set forth in Exhibit A hereto (under the heading: Conditions Precedent to Closing). Wells Fargo is referred to
herein as the “Revolving Commitment Party”. 

	 	b.	Term Loan Facility. Wells Fargo is pleased to advise Parent of its fully-underwritten commitment to provide 40.91% of the Term Loan Facility (in the amount of
$22,500,000); 1903 Onshore Funding, LLC is pleased to advise Parent of its fully-underwritten commitment to provide 40.91% of the Term Loan Facility (in the amount of $22,500,000); and Special Value Continuation Partners, LP is pleased to advise
Parent of its fully-underwritten commitment to provide 18.18% of the Term Loan Facility (in the amount of $10,000,000), in each case, upon the terms and subject solely to the conditions set forth in Section 5 below and the conditions set forth
in Exhibit A hereto (under the heading: Conditions Precedent to Closing). The foregoing commitments are several and not joint. Wells Fargo, 1903 Onshore Funding, LLC, and Special Value Continuation Partners, LP are referred to herein as the,
“Term Commitment Parties”, and, together with the Revolving Commitment Party, the “Commitment Parties”. 

  

	2.	Titles and Roles. Parent hereby appoints WFCF as sole lead arranger and WFCF hereby agrees, acting alone or through or with affiliates selected by it, to act as
the sole lead arranger and the sole bookrunner (collectively, the “Arranger” and, together with the Commitment Parties, the “Credit Parties”) for the Senior Credit Facility. Wells Fargo will act as
sole and exclusive administrative and collateral agent for the Senior Credit Facility (in such capacity, “Agent”), as well as the sole and exclusive term loan agent for the Term Loan Facility (in such capacity, the
“Term Agent”). Wells Fargo, in its capacity as Arranger may agree (in consultation with Parent) to appoint additional agents or co-agents and grant additional titles, with such compensation thereto as the Arranger may
determine to provide; provided, that the Arranger shall retain the titles of sole lead arranger and sole bookrunner, and Wells Fargo shall retain the titles of sole administrative agent and sole collateral agent and Term Agent and no other party
shall receive compensation in an amount that exceeds the level of compensation provided to Wells Fargo in connection with the Senior Credit Facility and any such other agent or co-agent or holder of a title shall not have any duties or
responsibilities, except as Wells Fargo may expressly agree. Wells Fargo will have “left” and highest placement in the information memoranda and all marketing materials and other documentation used in connection with the Senior Credit
Facility, and shall hold the leading role and responsibilities associated with such “left” placement. 

  

	3.	Expenses and Indemnification. Parent agrees (a) whether or not the Closing Date occurs, to pay or reimburse all reasonable and documented out-of-pocket
fees, costs and expenses incurred by the Credit Parties or their affiliates in connection with their due diligence, approval, documentation, syndication and closing of the Senior Credit Facility, whether incurred before or after the date hereof
(collectively, the “Expenses”), including the preparation and negotiation of this Commitment Letter (including any amendment or modification hereto) and the Fee Letter dated as of June 6, 2012, by and among the Agent,
the Term Loan Agent and Parent (the “Fee Letter”), and including reasonable and documented out-of-pocket attorneys’ fees and legal expenses (provided, that, legal fees shall be limited to the reasonable and documented
out-of-pocket fees and disbursements of one primary counsel for the Revolving Commitment Party and one primary counsel for the Term Commitment Parties, and, in addition, one local counsel for the Credit Parties in each appropriate material
jurisdiction), real estate appraisal fees, environmental due diligence cost and expenses, syndication expenses, expenses related to Patriot Act compliance and background checks, ERS set-up fees, filing and search charges, and recording taxes and in
connection with the enforcement of any of the rights and remedies of the Credit Parties under this Commitment Letter or the Fee Letter, and (b) to indemnify, defend and hold harmless the Credit Parties, each of their respective affiliates and
each of their respective officers, directors, employees, agents, advisors, attorneys and representatives (each an “Indemnified Party”) as set forth in Annex A hereto. All such Expenses are to be paid to the Credit Parties
promptly upon demand. The arrangements with respect to such charges after the closing of the Senior Credit Facility will be governed by the terms of the loan documentation. 

 

	4.	Fees. As consideration for the commitments and agreements of the Credit Parties hereunder, Parent agrees to pay, or cause to be paid, the fees described in the
Summary of Terms and Conditions attached at Exhibit A hereto (the “Term Sheet”), and the Fee Letter on the terms and subject to the conditions set forth therein. The terms of the Fee Letter are an integral part of the
Commitment Parties’ commitments and the Credit Parties’ obligations hereunder. Each of the fees described in the Fee Letter shall be nonrefundable when paid. 

  
 2 

	5.	Conditions. The commitments of the Commitment Parties under this Commitment Letter to enter into the Senior Credit Facility and make the initial loans
contemplated thereunder are subject solely to (a) (i) since December 31, 2011 through the date of this Commitment Letter, except as (x) disclosed in the SEC Reports (as defined in the Merger Agreement) filed with or furnished to
the SEC (as defined in the Merger Agreement) on or after March 9, 2012 through the date that is two (2) Business Days prior to the date of the Merger Agreement (excluding disclosure contained in the “risk factors” section or
constituting “forward-looking statements,” in each case, to the extent such disclosure is cautionary, predictive or speculative in nature) or (y) disclosed to Parent and Merger Sub (as defined in the Merger Agreement) in a letter
delivered to them by the Target prior to the execution of the Merger Agreement, there has not been any event, change or occurrence that, individually or in the aggregate has had, or would reasonable be expected to have, a Material Adverse Effect (as
defined the Merger Agreement), and (ii) from the period beginning on the date of this Commitment Letter, there not having been any state of facts, event, change, effect, development, condition or occurrence (or with respect to facts, events,
changes, effects, developments, conditions or occurrences existing prior to the date hereof, any worsening thereof) that, individually or in the aggregate, has had, or could reasonably be expected to have, a Material Adverse Effect (as defined the
Merger Agreement), (b) the satisfaction of each condition set forth in this Section 5 and in Exhibit A hereto (under the heading: Conditions Precedent to Closing), and (c) the payment of all fees due under the Fee Letter.

 Notwithstanding anything to the contrary in this Commitment Letter, the Fee Letter, the Loan
Documentation (as defined in the Term Sheet) or any other letter agreement or any other written agreement concerning the financing of the Acquisition contemplated hereby to the contrary, (a) the only representations, the accuracy of which shall
be a condition to the initial funding under the Senior Credit Facility on the Closing Date shall be (i) such of the representations made by the Target and its subsidiaries in the Merger Agreement as are material to the interests of the Credit
Parties, but only to the extent that Parent has the right to terminate (or not perform) its obligations under the Merger Agreement as a result of a breach of such representations in the Merger Agreement (the “Merger Agreement
Representations”) and (ii) the Specified Representations (as defined below) and (b) the terms of the Loan Documentation shall be in a form such that they do not impair the making available of initial funding under the Senior
Credit Facility on the Closing Date if the conditions set forth in this Section 5 and in Exhibit A hereto (under the heading: Conditions Precedent to Closing) are satisfied (it being understood that, (A) to the extent any collateral
(including the creation or perfection of any security interest therein) is not or cannot be provided on the Closing Date (other than (I) the pledge and perfection of collateral with respect to which a security interest or lien may be perfected
upon closing solely by the filing of financing statements under the Uniform Commercial Code or by filing of a notice with the United States Patent and Trademark Office or the United States Copyright Office, (II) the pledge and perfection of security
interests in the capital stock of the Target and its wholly-owned domestic subsidiaries (after giving effect to the Acquisition) with respect to which a security interest or lien may be perfected upon closing by the delivery of a stock certificate,
and (III) the pledge of security and mortgage interests in the Target’s real property interest in its headquarters known and maintained as 603 West 50th Street, New York, New York (“Headquarters”) (together with a final title insurance policy,
including gap coverage, in favor of the Agent and Term Loan Agent, in each case, which shall be in form and substance reasonably acceptable to the Agent and Term Loan Agent), the assets described in clauses (I) through (III) being referred to
as “Closing Day Collateral”) after the use of reasonable best efforts by Parent and the Target to do so, then the creation and/or perfection of any such lien or security interest shall not constitute a condition precedent to
the initial funding under the Senior Credit Facility on the Closing Date, but may instead be provided within 90 days after the Closing Date (or such longer periods as Agent may agree) pursuant to arrangements to be mutually agreed), and (B) the
Loan Documentation for the Senior Credit Facility shall be based on the Existing Credit Agreement (as defined in the Term Sheet) subject to modifications necessary to address the terms and conditions set forth in the Term Sheet, including the
addition of the Term Loan Facility and the inclusion of the Intellectual Property and the Headquarters 

  
 3 

 
(as such terms are defined in the Term Sheet) as collateral to be included in either the Revolver Borrowing Base or Term Loan Borrowing Base, as applicable, and in any event giving due regard to
the operational requirements of Parent, the Target and its subsidiaries in light of their industry, size, business and business practices and the Projections. “Specified Representations” means representations of the Loan
Parties in the Loan Documentation relating to existence, organizational power and authority to enter into the Loan Documentation; due execution, delivery and enforceability of such Loan Documentation; solvency of Parent and its subsidiaries on a
consolidated basis on the Closing Date after giving effect to the Acquisition; Federal Reserve margin regulations; the Investment Company Act; OFAC and U.S.A. PATRIOT Act; compliance with anti-terrorism, anti-bribery and anti-money-laundering laws
and regulations; no conflicts between the Loan Documentation for the Senior Credit Facility and the organization documents of the Loan Parties or material applicable law, and the creation, validity, perfection and priority of the security interests
(subject to certain customary permitted liens) of Agent granted in Closing Day Collateral (subject in all respects to the foregoing provisions of this paragraph). 
  

	6.	Confidentiality. Parent agrees that this Commitment Letter (including the Term Sheet) is for its confidential use only and that neither the Commitment Letter nor
the Fee Letter or any of their terms will be disclosed by it to any person without the consent of the Arranger other than (i) to Parent’s officers, directors, employees, accountants, attorneys, and other advisors, and then only on a
“need-to-know” basis in connection with the Transactions contemplated hereby and on a confidential basis or (ii) pursuant to the order of any court or administrative agency in any pending legal, judicial or administrative proceeding
or otherwise as required by applicable law or compulsory legal process or to the extent requested or required by governmental and/or regulatory authorities (in which case Parent agrees to the extent practicable and not prohibited by applicable law
to inform the Credit Parties promptly thereof prior to such disclosure). The foregoing notwithstanding, Parent may (i) disclose this Commitment Letter and the contents hereof (and the Fee Letter, to the extent portions thereof have been
redacted in a manner satisfactory to the Arranger in its sole discretion) to the board of directors of the Target and its officers, directors, employees, accountants, attorneys, and other advisors, in each case then only on a confidential and
“need-to-know” basis in connection with the Transactions, (ii) in each case after prior written notice to the Arranger with such information with respect thereto as the Arranger may request, disclose this Commitment Letter and the
contents hereof (but not the Fee Letter or the contents thereof) to ratings agencies and potential lenders in connection with their review of Target and the Senior Credit Facility, in each case on a confidential basis, and (iii) in each case
after prior written notice to the Arranger with such information thereto as the Arranger may request, disclose this Commitment Letter and the contents hereof (but not the Fee Letter or the contents thereof) in any syndication or other marketing
materials in connection with the Senior Credit Facility or, to the extent permitted by applicable law, in connection with any public filing. 

 The Credit Parties agree that all non-public information provided to the Credit Parties by or on behalf of Parent hereunder or in connection with the Transactions shall be treated by the Credit Parties in
a confidential manner, and shall not be disclosed by the Credit Parties to persons who are not parties to this Commitment Letter, except: (i) to their respective officers, directors, employees, attorneys, advisors, accountants, auditors, and
consultants to the Credit Parties on a “need to know” basis in connection with Transactions contemplated hereby and on a confidential basis, (ii) to subsidiaries and affiliates of the Credit Parties, provided that any such subsidiary
or affiliate shall have agreed to receive such information hereunder subject to the terms of this paragraph, (iii) upon the request or demand of any regulatory authorities with jurisdiction over the Credit Parties and their affiliates or
otherwise in accordance with the regulatory compliance practices of the Credit Parties and their affiliates, to such regulatory authorities, (iv) as may be required by statute, decision, or judicial or administrative order, rule, or regulation,
provided that prior to any disclosure under this clause (iv), the disclosing party agrees to provide Parent with prior notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide
such prior notice to Parent pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or regulation, (v) as may be agreed to by Parent or Target, (vi) as requested or required by any governmental
authority pursuant to any subpoena or other legal process, provided that prior to any disclosure under this clause (vi) the disclosing party agrees to provide Parent with prior notice thereof, to the extent that it is practicable to do so and
to the extent that the disclosing 

  
 4 

 
party is permitted to provide such prior notice to Parent pursuant to the terms of the subpoena or other legal process or law, (vii) as to any such information that is or becomes generally
available to the public (other than as a result of prohibited disclosure by any Credit Party), (viii) in connection with any proposed assignment or participation of a Commitment Party’s interest in the Senior Credit Facility, provided that
any such proposed assignee or participant shall have agreed to receive such information subject to the terms of this paragraph, (ix) to the extent that such information was already in such Credit Party’s possession or is independently
developed by such Credit Party, (x) to ratings agencies in connection with obtaining ratings for the Senior Credit Facility, (xi) to the extent that such information was received by such Credit Party from a third party that is not to its
knowledge subject to confidentiality obligations owing to Parent or any of its subsidiaries and (xii) for purposes of establishing a “due diligence” defense, in connection with the enforcement of this Commitment Letter and the Fee
Letter or otherwise in connection with any litigation or other adverse proceeding involving parties to this Commitment Letter or their affiliates. Notwithstanding anything to the contrary contained herein or in any other agreement, any information
received by any Credit Party concerning the Target in its capacity as a lender to Target under the Existing Credit Facility shall not be subject to the foregoing, but shall be governed by the confidentiality provisions of the existing loan documents
with respect to such Existing Credit Facility. 
 Notwithstanding anything to the contrary in this Commitment Letter or in any
other agreement, (i) Parent agrees that the Projections and all other information provided by or on behalf of Parent or any of its representatives to the Credit Parties regarding Parent and its affiliates (including the Target and its
subsidiaries) and the Transactions may be disseminated by or on behalf of the Credit Parties to prospective lenders and other persons who have agreed to be bound by customary confidentiality undertakings (including, “click-through”
agreements), all in accordance with the Credit Parties’ standard loan syndication practices (whether transmitted electronically by means of a website, e-mail or otherwise, or made available orally or in writing, including at potential lender or
other meetings) and (ii) Parent agrees that the Credit Parties may share with their respective affiliates on a confidential basis any information relating to the Senior Credit Facility or Parent or its affiliates (including the Target and its
subsidiaries) and, after the Closing Date, may disclose information relating to the Senior Credit Facility to Gold Sheets and other publications or for its marketing materials, with such information to consist of deal terms and other information
customarily found in such publications or marketing materials and that, after the Closing Date, the Credit Parties may otherwise use the corporate name and logo of Parent or the Target in “tombstones” or other advertisements, marketing
materials or public statements. 
  

	7.	Information. Parent hereby represents, warrants and covenants that (i) all information, other than Projections (as defined below), and information of a
general economic nature or industry specific information, which has been or is hereafter made available to any Credit Party or any lender by or on behalf of Parent or Target, or any of its or their representatives in connection with Parent, Target,
their respective subsidiaries and the Acquisition (“Information”), is and will be complete and correct as to the subject matter thereof in all material respects as of the date made available to such Credit Party or such
lender and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not materially misleading and (ii) all financial projections concerning Parent,
the Target and their respective affiliates that have been or are hereafter made available to any Credit Party or any lenders by Parent, Target, or any of its or their representatives (the “Projections”), including, but not
limited to, the Projections provided to the Arranger on or about May 18, 2012, have been or will be prepared in good faith based upon reasonable assumptions in light of the past operations of the businesses of Target and its subsidiaries and
based upon estimates and assumptions which Parent has determined to be reasonable and fair in light of the then current conditions and facts (it being understood that projections by their nature are inherently uncertain and that, even though the
Projections are prepared in good faith on the basis of assumptions believed to be reasonable at the time such Projections were prepared, the results reflected in the Projections may not be achieved and actual results may differ). Parent agrees to
furnish, or cause to be furnished, the Arranger such Information and Projections as the Arranger may reasonably request and to supplement the Information and the Projections from time to time until the closing date of the Senior Credit Facility. In
arranging and syndicating the Senior Credit Facility, the Credit Parties and lenders will be using and relying on the Information and the Projections without independent verification thereof. 

  
 5 

	8.	Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities. Parent acknowledges that the Credit Parties or one or more of their respective
affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Credit Parties may have conflicting interests regarding the transactions described herein
or otherwise. Parent also acknowledges that the Credit Parties do not have any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to Parent, confidential information obtained by the Credit
Parties from the Target or any other companies. 

 Parent further acknowledges and agrees that (a) no
fiduciary, advisory or agency relationship between Parent and the Target, on the one hand, and the Credit Parties, on the other hand, is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter,
irrespective of whether the Credit Parties or one or more of their respective affiliates has advised or is advising Parent on other matters, (b) the Credit Parties, on the one hand, and Parent and the Target, on the other hand, have an
arms-length business relationship that does not directly or indirectly give rise to, nor does Parent or any of its affiliates rely on, any fiduciary duty on the part of the Credit Parties in respect of any of the transactions contemplated by this
Commitment Letter, (c) Parent and Target are capable of evaluating and understanding, and each understands and accepts, the terms, risks and conditions of the transactions contemplated by this Commitment Letter, (d) Parent has been advised
that the Credit Parties or one or more of their respective affiliates is engaged in a broad range of transactions that may involve interests that differ from its interests and that the Credit Parties do not have any obligation to disclose such
interests and transactions to it by virtue of any fiduciary, advisory or agency relationship in respect of any of the transactions contemplated by this Commitment Letter, and (e) Parent waives, to the fullest extent permitted by law, any claims
it may have against the Credit Parties for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Credit Parties shall not have any liability (whether direct or indirect) to Parent or Target in respect of such a fiduciary
duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of Parent, including its stockholders, employees or creditors, in each case in connection with the transactions contemplated by this Commitment Letter. 

Parent further acknowledges that one or more of the Credit Parties’ respective affiliates are full service securities firm engaged in
securities trading and brokerage activities as well as providing investment banking and other financial services. In the ordinary course of business, the Credit Parties or one or more of their respective affiliates may provide investment banking and
other financial services to, and/or acquire, hold or sell, for their respective own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, Parent and other
companies with which Parent may have commercial or other relationships. With respect to any debt or other securities and/or financial instruments so held by the Credit Parties or one or more of their respective affiliates or any of their respective
customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion. 

Nothing contained herein shall limit or preclude the Credit Parties or any of their respective affiliates from carrying on any business
with, providing banking or other financial services to, or from participating in any capacity, including as an equity investor, in any party whatsoever, including, without limitation, any competitor, supplier or customer of Parent or its
subsidiaries or any of their affiliates, or any other party that may have interests different than or adverse to such parties. Parent acknowledges that the Credit Parties and their respective affiliates (the term Credit Parties as used in this
paragraph being understood to include such affiliates) may be providing debt financing, equity capital or other services (including financial advisory services) to other companies with which Parent or its subsidiaries or affiliates may have
interests that conflict, that the Credit Parties may act, without violating its contractual obligations to Parent, as it deems appropriate with respect to such other companies (provided, that, the Credit Parties will not provide any material
non-public confidential information as to Parent received from Parent to any competitor, supplier or customer of Parent or its subsidiaries), and that the Credit Parties have no obligation in connection with the Senior Credit Facility to use, or to
furnish to Parent or its subsidiaries or affiliates (including the Target), confidential information obtained from other companies or entities. 

  
 6 

	9.	Acceptance and Termination. This Commitment Letter will be of no force and effect unless a counterpart hereof is accepted and agreed to by Parent and, as so
accepted and agreed to, received by the Arranger by 11:59 p.m. (Eastern time) on June 6, 2012, together with the Fee Letter as duly authorized, executed and delivered by Parent and that certain Reimbursement Letter dated as of June 6,
2012, by and among the Agent, the Term Loan Agent and Kenneth D. Cole, individually. The commitments and obligations of the Credit Parties under this Commitment Letter, if timely accepted and agreed to by Parent, will terminate upon the earliest of
(a) consummation of the Acquisition, (b) the termination of the Merger Agreement in accordance with its terms, (c) the acceptance of a commitment by Parent or Target for any debt financing in lieu of the Senior Credit Facility in any
transaction for the acquisition of Target other than a transaction led or arranged by the Arranger or any of its affiliates, and (d) December 3, 2012 if the initial borrowings under the Senior Credit Facility have not occurred on or prior
to such date. 

  

	10.	Entire Agreement; No Third Party Reliance. This Commitment Letter contains the entire commitment of the Credit Parties for this transaction and, upon acceptance
by Parent supersedes all prior proposals, commitment letters, negotiations, discussions and correspondence. This Commitment Letter may not be contradicted by evidence of any alleged oral agreement. No party has been authorized by the Credit Parties
to make any oral or written statements inconsistent with this Commitment Letter. This Commitment Letter is addressed solely to Parent and is not intended to confer any obligations to or on, or benefits to or on, any third party.

  

	11.	Counterparts. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together,
shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter by facsimile transmission or other electronic means shall be effective as delivery of a manually executed counterpart hereof. 

 

	12.	 Assignment; Governing Law; Jurisdiction. This Commitment Letter may not be assigned by Parent without the prior written consent of the Credit
Parties (other than by Parent to Borrowers, as defined in the Term Sheet, so long as each such entity is controlled by Parent after giving effect to the Transactions and it (directly or through a wholly-owned subsidiary) owns the Target or the
successor to the Target or is a subsidiary of the Target) and may not be amended, waived or modified, except in writing signed by the Credit Parties and Parent. Each Commitment Party may assign or participate all or a portion of its commitments
hereunder, provided, however, such Commitment Party will not be relieved of all or any portion of its commitments hereunder prior to the initial funding under the Senior Credit Facility. This Commitment Letter is governed by and construed in
accordance with the laws of the State of New York, but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the State of New York. Each of the parties hereto
hereby irrevocably and unconditionally (i) submits, for itself and its property, to the exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County, located in the Borough of Manhattan and (b) the United
States District Court for the Southern District of New York and any appellate court from any such court, in any action, suit, proceeding or claim arising out of or relating to the Transactions or the performance of services hereunder or under the
Fee Letter, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action, suit, proceeding or claim may be heard and determined in such New York State court or, to the extent permitted by law, in such
Federal court, (ii) waives, to the fullest extent that it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any action, suit, proceeding or claim arising out of or relating to this
Commitment Letter, the Fee Letter, the Transactions or the performance of services hereunder or under the Fee Letter in any such New York State or Federal court and (iii) waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of any such action, suit, proceeding or claim in any such court. Each of the parties hereto agrees to commence any such action, suit, proceeding or claim either in the United States District Court for the
Southern District of New York or in the Supreme Court of the State of New York, New York County located in the Borough of 

  
 7 

 
Manhattan. Parent agrees, on behalf of itself and its affiliates, that the foregoing provisions of this paragraph shall also apply to Parent’s affiliates to the same extent as to Parent, and
the Credit Parties’ obligations hereunder are being made in reliance on the foregoing. 
  

	13.	JURY TRIAL WAIVER. THE CREDIT PARTIES AND PARENT EACH WAIVE ITS RIGHT TO A JURY TRIAL IN ANY ACTION OR PROCEEDING ARISING OUT OF OR IN ANY WAY RELATING TO THIS
COMMITMENT LETTER OR THE TRANSACTIONS REFERRED TO IN THIS COMMITMENT LETTER. 

  

	14.	Patriot Act. The Credit Parties hereby notify Parent 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”), the Credit Parties may be required to obtain, verify and record information that identifies Borrowers and Guarantors (as defined in the Term Sheet), which information includes the name, address,
tax identification number and other information regarding them that will allow the Credit Parties to identify them in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act.

  

	15.	Surviving Provisions. The expense and indemnification, sharing information; absence of fiduciary relationship; affiliate transactions, confidentiality,
jurisdiction, governing law and waiver of jury trial provisions contained herein shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination or
expiration of this Commitment Letter or termination of the commitments and obligations of the Credit Parties described herein; provided that the obligations of Parent under this Commitment Letter under the expense and indemnification
provisions shall automatically terminate and be superseded by the provisions of the Loan Documentation upon the initial funding thereunder to the extent addressed therein, and Parent shall automatically be released from all liability under the terms
hereof (but not from liability under any corresponding provisions in the Loan Documentation to which it is a party). 

 Each of the parties hereto agree that this Commitment Letter is a binding and enforceable commitment with respect to the subject matter herein. 

If Parent accepts and agrees to the foregoing, please so indicate by executing and arranging for Parent to execute the enclosed copy of
this letter and return it to the Arranger. 
 We look forward to continuing to work with you to complete this transaction.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 8 

			
	Very truly yours,
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION

			
		
	By:	 	 /s/ Irene Rosen Marks

	Name:	 	Irene Rosen Marks
	Title:	 	Managing Director

			
	
	WELLS FARGO CAPITAL FINANCE, LLC

			
		
	By:	 	 /s/ Irene Rosen Marks

	Name:	 	Irene Rosen Marks
	Title:	 	Managing Director

 [Signature Page to Commitment Letter] 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as a Revolving Commitment Party

			
		
	By:	 	 /s/ Irene Rosen Marks

	Name:	 	Irene Rosen Marks
	Title:	 	Managing Director

 [Signature Page to Commitment Letter] 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	as a Term Commitment Party

			
		
	By:	 	 /s/ Sally A. Sheehan

	Name:	 	Sally A. Sheehan
	Title:	 	Director

			
	
	 1903 ONSHORE FUNDING, LLC,
 as a Term Commitment Party

			
		
	By:	 	 /s/ Lawrence Klaff

	Name:	 	Lawrence Klaff
	Title:	 	Principal and Managing Director

			
	
	 SPECIAL VALUE CONTINUATION PARTNERS, LP
 as a Term Commitment Party

			
		
	By:	 	 /s/ Howard Levkowitz

	Name:	 	Howard Levkowitz
	Title:	 	Managing Partner

 [Signature Page to Commitment Letter] 

 The provisions of this Commitment Letter are agreed to and accepted on the date first above written.

  

			
	KCP HOLDCO, INC., as Parent

			
		
	By:	 	 /s/ Kenneth D. Cole

	Name:	 	Kenneth D. Cole
	Title:	 	President and Chief Executive Officer

 [Signature Page to Commitment Letter] 

 ANNEX A 
 to 
 COMMITMENT LETTER 

Indemnification Provisions 
 Each term used, but not defined in this Annex A, shall have the meaning assigned to such term in the Commitment Letter, dated of even date herewith, from the Credit Parties to Parent (the
“Indemnifying Party”), to which this Annex A is attached. 
 To the fullest extent permitted by
applicable law, the Indemnifying Party agrees that it will indemnify, defend, and hold harmless (to the fullest extent permitted by law) each Indemnified Party from and against (i) any and all losses, claims, damages, obligations, penalties,
judgments, awards, liabilities, disbursement, and reasonable and documented out-of-pocket costs and expenses actually incurred in connection therewith, (ii) any and all actions, suits, proceedings and investigations in respect thereof, and
(iii) any and all reasonable and documented out-of-pocket legal fees or other reasonable and documented out-of-pocket costs, expenses or disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise
(including, without limitation, the reasonable and documented out-of-pocket costs, expenses and disbursements, as and when incurred, of investigating, preparing or defending any such action, proceeding or investigation (whether or not in connection
with litigation in which any of the Indemnified Parties is a party) and including, without limitation, any and all losses, claims, damages, obligations, penalties, judgments, awards, and liabilities, reasonable and documented out-of-pocket costs,
expenses and disbursements, resulting from any act or omission of any of the Indemnified Parties), directly or indirectly, caused by, relating to, based upon, arising out of or in connection with (a) the Transactions, (b) the Commitment
Letter or the Senior Credit Facility, (c) any use or intended use of the Senior Credit Facility or (d) any untrue statement or alleged untrue statement of a material fact contained in, or omissions or alleged omissions in, information
furnished by Indemnifying Party or Target, or any of their subsidiaries or affiliates, or any other person in connection with the Transactions or the Commitment Letter, regardless of whether any such Indemnified Party is a party thereto (and
regardless of whether such matter is initiated by a third party or by the Indemnifying Party, Target or any of their respective affiliates or equity holders); provided, however, such indemnity agreement shall not, as to any Indemnified
Party, apply to any portion of any such loss, claim, damage, obligation, penalty, judgment, award, liability, cost, expense or disbursement of an Indemnified Party to the extent a court of competent jurisdiction finally determines such loss, claim,
damage, obligation, penalty, judgment, award, liability, cost, expense or disbursement of an Indemnified Party to have resulted from a material breach by such Indemnified Party of its obligations under this Commitment Letter, or the gross negligence
or willful misconduct of such Indemnified Party. 
 These Indemnification Provisions shall be in addition to (but without
duplication of) any liability which the Indemnifying Party may have to the Indemnified Parties. 
 If any action, suit,
proceeding or investigation is commenced, as to which any of the Indemnified Parties proposes to demand indemnification, it shall notify the Indemnifying Party with reasonable promptness (and, in any event, within ten business days of the date the
Indemnified Parties receive notice of the commencement of such action, suit, proceeding or investigation); provided, however, that any failure by any of the Indemnified Parties to so notify the Indemnifying Party shall not relieve the
Indemnifying Party from its obligations hereunder. The Arranger, on behalf of the Indemnified Parties, shall have the right to retain counsel for all such Indemnified Parties of its choice to represent the Indemnified Parties, and the Indemnifying
Party shall pay the reasonable and documented out-of-pocket fees, expenses, and disbursements of such counsel to the extent required under the second immediately preceding paragraph. The Indemnifying Party shall be liable for any settlement of any
claim against any of the Indemnified Parties that is required to be indemnified by such Indemnifying Party pursuant to the terms hereof (an “Indemnified Claim”) made with its prior written consent, which consent shall not be
unreasonably withheld or delayed. Without the prior written consent of the Arranger, the Indemnifying Party shall not settle or compromise any Indemnified Claim, permit a default or consent to the entry of any judgment in respect thereof, unless
such settlement (i) includes an unconditional release of such Indemnified Party in form and substance reasonably satisfactory to such Indemnified Party 

 
from all liability or claims that are the subject matter of such proceedings and (ii) does not include any statement as to or any admission of fault, culpability, wrongdoing or a failure to
act by or on behalf of any Indemnified Party. 
 In order to provide for just and equitable contribution, if a claim for
indemnification pursuant to these Indemnification Provisions is made but is found by a judgment of a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express
provisions hereof provide for indemnification in such case, then the Indemnifying Party, on the one hand, and the Indemnified Parties, on the other hand, shall contribute to the losses, claims, damages, obligations, penalties, judgments, awards,
liabilities, costs, expenses and disbursements to which the Indemnified Parties may be subject in accordance with the relative benefits received by the Indemnifying Party, on the one hand, and the Indemnified Parties, on the other hand, and also the
relative fault of the Indemnifying Party, on the one hand, and the Indemnified Parties collectively and in the aggregate, on the other hand, in connection with the statements, acts or omissions which resulted in such losses, claims, damages,
obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements and the relevant equitable considerations shall also be considered. No person found liable for a fraudulent misrepresentation that directly resulted in the
relevant losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements shall be entitled to contribution from any other person who is not also found liable for such fraudulent misrepresentation.

 No Indemnified Party shall be liable for any damages arising from the use by others of Information or other materials
obtained through internet, Intralinks, SyndTrak or other similar transmission systems in connection with the Senior Credit Facility except to the extent a court of competent jurisdiction finally determines such damage resulted from the gross
negligence or willful misconduct of such Indemnified Party. In addition, no Indemnified Party shall be responsible or liable for special, indirect, consequential, exemplary, incidental or punitive damages which may be alleged as a result of this
Commitment Letter or the Fee Letter; provided that nothing contained in this sentence shall limit any Indemnifying Parties’ indemnity obligations to the extent such special, indirect, consequential or punitive damages are included in any third
party claim with respect to which the applicable Indemnified Party is entitled to indemnification under this Annex A. 

Notwithstanding any other provision herein, these Indemnification Provisions shall remain operative and continue in full force and effect
until, and shall terminate upon, the time of the execution and delivery of the Loan Documentation. 

  
 2 

 EXHIBIT A1 
 KENNETH COLE PRODUCTIONS, INC. 
 SUMMARY OF TERMS AND CONDITIONS FOR
UNDERWRITTEN 
 $110,000,000 SENIOR REVOLVING CREDIT FACILITY 

AND A $55,000,000 TERM LOAN FACILITY 
 (to be structured as either an amended 
 and restated facility or a new
facility, as the parties agree) 
  

			
	BORROWERS:	  	(i) Initially, KCP Mergerco, Inc., a New York corporation, and (ii) after consummation of the Acquisition, Kenneth Cole Productions, Inc. and certain of its subsidiaries
(collectively, the “Borrowers”). The Borrowers shall be jointly and severally liable for all obligations.
		
	GUARANTORS:	  	KCP Acquisitions, Inc. and all existing and future direct and indirect wholly owned domestic subsidiaries of the Borrowers (collectively, the “Guarantors”,
and, collectively with the Borrowers, the “Loan Parties”). All guarantees will be guarantees of payment and not of collection.
		
	ADMINISTRATIVE AGENT:	  	Wells Fargo Bank, National Association (the “Administrative Agent”).
		
	COLLATERAL AGENT:	  	Wells Fargo Bank, National Association (the “Collateral Agent” and together with the Administrative Agent, the
“Agent”).
		
	TERM LOAN AGENT:	  	Wells Fargo Bank, National Association (the “Term Loan Agent”)
		
	 SOLE LEAD ARRANGER
 AND SOLE BOOK
 MANAGER:
	  	Wells Fargo Capital Finance, LLC (“WFCF”) will act as sole lead arranger and sole book manager (the “Arranger”).
		
	REVOLVING LENDERS:	  	Wells Fargo Bank, National Association (“Wells Fargo”) and a syndicate of financial institutions to be arranged by the Arranger and reasonably acceptable to
the Administrative Agent and the Borrowers (individually, a “Revolving Lender” and, collectively, the “Revolving Lenders”).
		
	TERM LENDERS:	  	 Wells Fargo, 1903 Onshore Funding, LLC, a fund controlled by Tennenbaum Capital Partners, LLC, and such other financial institutions to
be selected by Term Loan Agent (individually, a “Term Lender” and, collectively, the “Term Lenders”).
  

As used herein, “Lender” shall mean any Revolving Lender or Term Lender, individually, and “Lenders” shall
mean the Revolving Lenders and the Term Lenders, collectively.

  

	1 	 Capitalized terms used in this Exhibit A that are not otherwise defined herein shall have the meanings specified in the Commitment Letter dated as
June 6, 2012, to which this Exhibit A is attached. 

  
 1 

			
	ISSUING BANK:	  	Wells Fargo Bank, National Association.
		
	 SENIOR REVOLVING
 FACILITY:
	  	$110,000,000 revolving credit facility (the “Senior Revolving Facility”). The Senior Revolving Facility will include a $50,000,000 sublimit for the issuance
of standby and documentary letters of credit (each a “Letter of Credit”) and a $15,000,000 sublimit for swingline loans (each a “Swingline Loan”).
		
	TERM LOAN FACILITY:	  	$55,000,000 term loan facility (the “Term Loan Facility” and collectively with the Senior Revolving Facility, the “Senior Credit
Facility”).
		
	PURPOSE:	  	The proceeds of the Senior Credit Facility shall be used for (i) repayment of indebtedness under the Borrowers’ existing credit agreement maintained with Wells Fargo Bank,
National Association, as administrative agent (as amended and in effect, the “Existing Credit Agreement”), (ii) to finance a portion of the consideration payable in connection with the Acquisition (provided, however, only
$60,000,000 of the Senior Revolving Facility shall be used to for this clause (ii)), (iii) the payment of transaction expenses, (iv) for working capital, capital expenditures, and other lawful corporate purposes.
		
	CLOSING DATE:	  	A mutually agreed upon date to be determined but in any event on or before December 3, 2012 (the “Closing Date”).
		
	INTEREST RATES:	  	As set forth in Addendum I.
		
	MATURITY:	  	The Senior Credit Facility shall terminate and all amounts outstanding thereunder shall be due and payable in full five (5) years after the Closing Date (the “Maturity
Date”).
		
	 AVAILABILITY / TERM
 LOAN BORROWING BASE:
	  	 Loans and Letters of Credit (subject to the Letter of Credit sublimit set forth above) under the Senior Revolving Facility may be made
on a revolving basis up to the lesser of (i) $110,000,000 (the “Total Revolver Commitments”) and (ii) the Revolver Borrowing Base (the lesser of (i) and (ii) being hereafter referred to as the “Loan
Cap”):
  
 The “Revolver Borrowing Base”
shall be equal to the sum, at the time of calculation of (a) 90% of eligible credit card receivables of the Borrowers; plus (b) 85% of eligible trade receivables (net of receivable reserves) of the Borrowers; plus (c) 90% of the
appraised net orderly liquidation value of eligible inventory (net of inventory reserves); plus (d) 90% of the appraised net orderly liquidation value of eligible in transit inventory (net of inventory reserves), provided that eligible in
transit inventory included in the Borrowing Base shall not exceed $10,000,000 at anytime; plus (e) the Real Estate Component; minus (f) the Term Loan Reserve (as defined below), if any; minus (g) the reserves (including any
realty reserves) established by the Administrative Agent in its discretion.

  
 2 

			
		  	 The “Real Estate Component” shall mean:

 
 (i) on or before the first anniversary of the Closing Date, the
lesser of (1) 65% of the fair market value of the eligible real estate of the Borrowers; and (ii) $27,300,000;
  

(ii) after the first anniversary of the Closing Date through and including the second anniversary of the Closing Date, the lesser of
(1) 60% of the fair market value of the eligible real estate of the Borrowers; and (ii) $25,200,000;
  
 (iii) after the second anniversary of the closing date through and including the third anniversary of the Closing Date, the lesser of (1) 55% of the fair market value of the eligible real estate of the
Borrowers; and (ii) $23,100,000; and
  
 (iv) at all times
after the third anniversary of the Closing Date, the lesser of (1) 50% of the fair market value of the eligible real estate of the Borrowers; and (ii) $21,000,000.
  

Loans under the Term Loan Facility shall be fully funded on the Closing Date in an amount equal to the lesser of (i) $55,000,000 and (ii) the Term Loan
Borrowing Base.
  
 The “Term Loan Borrowing Base”
shall be equal to, at the time of calculation, the lesser of (a) 32.5% of the net orderly liquidation value of eligible intellectual property of the Borrowers, and (b) $55,000,000.

 
 The initial reserves on the Closing Date and the definitions of “eligible credit
card receivables”, “eligible trade receivables” “eligible in transit inventory” and “eligible inventory” shall be determined in a manner generally consistent with the Existing Credit Agreement. The definition of
“eligible intellectual property” shall include such intellectual property subject to the appraisal of Target’s intellectual property received by the Term Loan Agent prior to the date hereof. The definition of “eligible owned real
property” shall be determined based upon the results of due diligence, provided that the Headquarters shall constitute “eligible owned real property” subject to the satisfaction of the conditions set forth in clause (v) below under
“Conditions Precedent to Closing”.

		
	 MANDATORY

PREPAYMENTS:
	  	 If at any time the aggregate amount of the Loans and Letters of Credit under the Senior Revolving Facility exceeds the Loan Cap as at
such date of determination, then the Borrowers will immediately repay outstanding Revolver Loans and, if necessary thereafter, cash collateralize Letters of Credit in an aggregate amount equal to such excess.

 
 If at any time the aggregate amount of the Term Loans exceeds the Term Loan Borrowing
Base as of any date of determination, then an Availability Reserve shall be established and maintained under the Revolver Borrowing Base in the amount of such excess (the “Term Loan Reserve”).

  
 3 

			
		  	 All amounts deposited in the Collection Account (as defined below) will be promptly applied by the Agent to repay outstanding Loans
under the Senior Revolving Facility, and, if an Event of Default exists, to cash collateralize outstanding Letters of Credit and then to repay the Term Loan.
  

All proceeds of Term Loan Priority Collateral (as defined below) except for royalty revenue received in the ordinary course of business shall be applied
to repay the outstanding Term Loans.
  
 All mandatory prepayments in respect
of the Term Loan shall be subject to payment of the Early Termination Fee (as defined below).
  
 If, at any time, the Borrowers elect to terminate the commitments under the Senior Revolving Facility in whole, then the Borrowers will immediately repay all amounts outstanding under the Term Loan
Facility.
  
 Other usual and customary mandatory prepayments of Term Loan and
Revolving Loans; provided, that the Loan Documentation shall not require any prepayment from equity issuances proceeds or extraordinary receipts and any condemnation or casualty proceeds prepayments shall be required only with respect to
proceeds not reinvested in assets within a specified time period to be mutually determined. Mandatory prepayments of the Term Loan shall be applied to the remaining installments, first, in direct order of the payments due over the next 12
months, and, second, pro rata to the remaining installments.

		
	AMORTIZATION:	  	The Term Loan Facility shall be repaid in quarterly installments of $750,000, commencing on the first day of the first full fiscal quarter after the Closing Date and continuing on
the first day of each fiscal quarter thereafter, with any outstanding balance due at maturity.
		
	 OPTIONAL

PREPAYMENTS AND

COMMITMENT

REDUCTIONS:
	  	 The Borrowers may prepay the Senior Revolving Facility in whole or in part at any time without premium or penalty, subject to
reimbursement of breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The commitments under the Senior Revolving Facility may be irrevocably reduced or terminated by the Borrowers at any time without premium or
penalty.
  
 Provided (i) no default or event of default then exist or would
result therefrom; and (ii) the Payment Conditions have been satisfied, the Borrowers may prepay the Term Loan Facility in whole or in part at any time, subject to (a) payment of the applicable Early Termination Fee (as defined below) and (b)
reimbursement of breakage and redeployment costs in the case of prepayment of LIBOR borrowings. Optional prepayments of the Term Loan Facility shall be applied in inverse order of maturity.

  
 4 

			
		  	 As used herein, “Payment Conditions” shall have the same meaning assigned to such term in the Existing Credit
Agreement.
  
 As used herein, “Early Termination Fee”
means (a) prior to the first anniversary of the Closing Date, 2.00% of the Term Loan Facility amount being prepaid; (b) on or after the first anniversary of the Closing Date but prior to the second anniversary of the Closing Date, 1.00% of the Term
Loan Facility amount being prepaid and (c) at all times following the second anniversary of the Closing Date, $0; provided, however, the Borrowers shall be permitted to prepay up to $10,000,000 of the Term Loan Facility without having
to pay the Early Termination Fee.

		
	SECURITY:	  	 As security for the Senior Credit Facility, the Borrowers and the Guarantors shall grant the Agent and the Lenders valid and perfected
first priority mortgage on the Borrowers’ Headquarters and liens and security interests in all of the present and future personal property and assets of the Borrowers and the Guarantors, including, but not limited to, inventory and other goods,
accounts receivable, deposit and securities accounts, general intangibles, financial assets, investment property, equity interests, chattel paper, insurance proceeds, contract rights, supporting obligations, letter-of-credit rights, commercial tort
claims, hedge agreements, documents, instruments, indemnification rights, tax refunds, books and records and cash, license rights, patents, trademarks, tradenames, copyrights, machinery, equipment, and furniture, and all proceeds and products of the
foregoing.
  
 The Security shall also secure the Borrowers’ and
Guarantors’ obligations in respect of the Senior Credit Facility and any cash management obligations, hedging arrangements and other bank products (including, without limitation, factoring and supply chain financing) entered into with or
furnished by any Lender or its affiliates.
  
 Notwithstanding the foregoing,
in no event will Collateral include: (i) any fee-owned real property (other than the Headquarters) or any leasehold interests, (ii) interest in any assets if the grant of a security interest or lien therein is validly prohibited as a matter of law
or under the terms of such contracts, permits, licenses, accounts receivable, general intangibles, payment intangibles, chattel paper, letter of credit rights and notes, in each case after giving effect to Article 9 of the applicable Uniform
Commercial Code, (iii) the issued and outstanding voting capital stock of any first tier foreign subsidiary in excess of 65% thereof to the extent that any such pledge would have material negative tax consequences on the Loan Parties (provided that
use of net operating losses shall be deemed to be material), (iv) assets subject to capital leases, purchase money financing and cash to secure letter of credit reimbursement obligations to the extent such capital leases, purchase money financing or
letters of credit are permitted under the loan documentation (the “Loan Documentation”) and the terms thereof prohibit a grant of a security interest therein, (v) assets sold to a person who is not a Loan Party in compliance
with the Loan Documentation,

  
 5 

			
		  	 (vi) assets owned by a Guarantor after the release of the guaranty of such Guarantor pursuant to the Loan Documentation, (vii) motor
vehicles and other equipment subject to certificates of title, (viii) any application for registration of a trademark filed with the United States Patent and Trademark Office (“PTO”) on an intent-to-use basis until such time
(if any) as a statement of use or amendment to allege use is accepted by the PTO, at which time such trademark shall automatically become part of the Collateral and subject to the security interest pledged, (ix) equity interests in any person other
than wholly owned subsidiaries to the extent a pledge thereof is not permitted by the terms of such subsidiary’s organizational or joint venture documents, and (x) other exceptions to be mutually agreed upon (the foregoing described in clauses
(i) through (x) are collectively, the “Excluded Assets”); provided, however, that such property shall constitute “Excluded Assets”: (1) with respect to clauses (ii), (iv), and (viii) above, only to the
extent and for so long as such license, permit, or applicable law validly prohibits the creation of a Lien on such property in favor of the Agent and Term Loan Agent, (2) with respect to clause (iii), only so long as such material negative tax
consequences exist, and (3) with respect to clause (ix), only to the extent that such organizational or joint venture documents prevent such a pledge; and in each of the foregoing cases, upon the termination of such prohibition (howsoever
occurring), such property shall cease to constitute “Excluded Assets”; provided further, that “Excluded Assets” shall not include the right to receive any proceeds arising therefrom or any other rights referred to
in Sections 9-406(f), 9-407(a) or 9-408(a) of the UCC or any proceeds, substitutions or replacements of any Excluded Assets (unless such proceeds, substitutions or replacements would otherwise constitute Excluded Assets).

 
 Although the following shall be considered Collateral, the Loan Parties shall not be
required to deliver a perfected security interest in such items: (a) letter of credit rights and commercial tort claims with a value of less than an amount to be agreed, and (b) those assets as to which the Agent and Term Loan Agent determine that
the cost of obtaining such a security interest or perfection thereof are excessive in relation to the benefit to the Lenders of the security to be afforded thereby.
  

The Loan Parties shall only be required to use commercially reasonable efforts to deliver landlord lien waivers, estoppels and collateral access letters
(“Access Agreements”) with respect to distribution centers and warehouses and in no event shall Access Agreements be a condition to closing.

		
	 APPLICATION OF
 PROCEEDS:
	  	 To be set forth in greater detail in the Loan Documentation, it being understood that as between the Senior Revolving Facility and the
Term Loan Facility, proceeds of the following collateral shall be applied as follows:
  
 (a) Proceeds of Term Loan Priority Collateral (as defined below) shall be applied to reduce the Term Loans prior to any application to the Senior Revolving Facility.

  
 6 

			
		  	 (b) Proceeds of Revolving Priority Collateral (as defined below) shall be applied to reduce obligations under the
Senior Revolving Facility prior to any application to the Term Loan.
  
 As
used herein, the term “Term Loan Priority Collateral” shall mean the Intellectual Property and all proceeds and products thereof.
  

As used herein, the term “Intellectual Property” shall mean, collectively, the patents, trademarks (including related goodwill),
copyrights, trade secrets; in each case, together with all applications for same and any licenses to use the foregoing; and any and all other industrial, intangible and intellectual property of any type, including mask works and industrial
designs.
  
 As used herein, the term “Revolving Priority
Collateral” shall mean all of the present and future personal property and assets of the Borrowers and the Guarantors other than the Term Loan Priority Collateral.

		
	 CONDITIONS PRECEDENT
 TO CLOSING:
	  	 The closing and the initial extension of credit under the Senior Credit Facility will be subject to satisfaction of the following
conditions precedent:
  
 (i) The negotiation, execution
and delivery of definitive Loan Documentation with respect to the Senior Credit Facility satisfactory to the Borrower, the Agent, the Term Loan Agent, and the Lenders consistent with the terms and conditions set forth herein and in the Commitment
Letter; provided that the Lenders shall have negotiated in good faith to complete the definitive Loan Documentation with respect to the Senior Credit Facility.
  

(ii) The Agent and Term Loan Agent shall have received the results of lien searches with respect to the Borrowers and Guarantors and
all filings, recordations and searches necessary or desirable (as reasonably determined by the Agent and Term Loan Agent) in connection with the liens, mortgages and security interests to reflect the valid and perfected first priority liens,
mortgages and security interests referred to above under Security shall have been duly made; all filing and recording fees and taxes shall have been duly paid. The Agent and Term Loan Agent shall be satisfied with the amount, types and terms and
conditions of all insurance maintained by the Borrowers and their subsidiaries (provided that the Agent and Term Loan Agent agree that the current insurance in place under the Existing Credit Agreement shall satisfy this requirement). The Agent and
Term Loan Agent shall have received endorsements naming the Agent or Term Loan Agent, as applicable, on behalf of the Revolving Lenders or Term Lenders, as applicable, as an additional insured or loss payee, as the case may be, under all insurance
policies.

  
 7 

			
		 	 (iii) The Agent and Term Loan Agent shall have received usual and customary (A) opinions of counsel to the Borrowers
and the Guarantors (which shall cover, among other things, authority, legality, validity, binding effect and enforceability of the documents for the Senior Credit Facility) and of appropriate local counsel and (B) such corporate resolutions,
certificates and other documents as the Agent shall reasonably require, in each case reasonably satisfactory to the Agent and Term Loan Agent.
  

(iv) There shall not have occurred since the date of the Commitment Letter any state of facts, event, change, effect, development,
condition or occurrence (or, with respect to facts, events, changes, effects, developments, conditions or occurrences existing prior to the date hereof, any worsening thereof) that, individually or in the aggregate, has had or could reasonably be
expected to have a Material Adverse Effect (as such term is, and all defined terms used therein are, defined in the Merger Agreement).
  

(v) The Agent and the Term Loan Agent shall have also received with respect to the eligible owned real property, surveys, title
documents, flood zone certificates, as well as a final title insurance policy, including gap coverage, in favor of the Agent and Term Loan Agent, in each case, which shall be in form and substance acceptable to the Agent and Term Loan
Agent.
  
 (vi) All accrued fees and expenses of the
Agent, Term Loan Agent, and Term Lenders (including the fees and expenses of one counsel for Revolving Lenders and one counsel for Term Lenders (including any local counsel)) shall have been paid if due and, in the case of legal fees and expenses,
only if an invoice shall have been provided no later than one business day prior to the Closing Date.
  
 (vii) To the extent the parties do not structure the Senior Credit Facility as an amendment and restatement of the Existing Credit Agreement, the Agent and Term Loan Agent shall have received a payoff
letter with respect to the Existing Credit Agreement (A) evidencing that, upon the making of the initial extension of credit on the Closing Date and the application of such funds in accordance with such payoff letter, all obligations under such
facility will have been paid and satisfied in full, all commitments thereunder will terminate, and (B) confirming that all liens securing the Existing Credit Agreement will be contemporaneously with the initial funding under the Senior Credit
Facility released.
  
 (viii) The following transactions
shall have occurred prior to or concurrently with the initial extension of credit under the Senior Credit Facility:
  

(i) The combined amount of cash equity and the rollover of the existing equity interests (through a holding
company that is formed to acquire Kenneth Cole Productions, Inc.) owned by the Family Stockholders (as

  
 8 

			
		  	 defined in the Merger Agreement, on terms and conditions reasonably satisfactory to Agent and Term Loan Agent, it
being acknowledged by the Agent and the Term Loan Agent that the terms and conditions set forth in the Merger Agreement and the Rollover Agreement as in effect on the date hereof are so satisfactory) shall be equal to $166,300,000 (calculated based
on approximately $132,700,000 in rollover equity from the Family Stockholders (as defined in the Merger Agreement), assuming a per share merger consideration of $15.25, consisting of Company Stock (as defined in the Merger Agreement), in-the-money
Stock Options (as defined in the Merger Agreement) (calculated using the treasury stock method) and Company Awards (as defined in the Merger Agreement) (including restricted shares and performance shares granted, whether or not issued), plus the
balance in new cash equity);
  
 (ii)
the Acquisition shall have been consummated in accordance with all applicable requirements of law for aggregate consideration not exceeding an amount per share previously disclosed to the Administrative Agent and the Term Loan Agent; and

 
 (iii) the Acquisition shall be consummated
substantially concurrently with the Closing Date in accordance in all material respects with the Merger Agreement, without waiver or amendment thereof or any consent thereunder materially adverse to the Lenders unless consented to by the Agent and
the Term Loan Agent (such consent not to be unreasonably withheld, delayed or conditioned).
  
 (ix) After giving effect to the Acquisition and the first funding of any loans under the Senior Credit Facility and all Letters of Credit to be issued at, or immediately subsequent to, the establishment
of the Senior Credit Facility, Excess Availability shall be not less than (A) $33,000,000 if the Closing Date occurs on or before September 10, 2012, or (B) $35,000,000 if the Closing Date occurs on or after September 11, 2012. The
Administrative Agent shall have received a borrowing base certificate dated as of the Closing Date, executed by a financial officer of the Borrowers. As used herein, “Excess Availability” shall mean an amount equal to
(a) the Loan Cap minus (b) the amount of Loans and Letters of Credit outstanding under the Senior Revolving Facility.

		
	 CONDITIONS PRECEDENT

TO ALL EXTENSIONS OF

CREDIT AFTER THE

CLOSING DATE:
	  	Limited to (but shall not be applicable to the extensions of credit made on the Closing Date): (i) all of the representations and warranties in the Loan Documentation shall be true
and correct as of the date of such extension of credit (except to the extent it relates to an earlier date); (ii) no event of default that has not been waived in writing under the Senior Credit Facility or incipient default that has not been cured
within any

  
 9 

			
		  	applicable cure period shall have occurred, or would result from such extension of credit; (iii) in the case of any extension of credit under the Senior Revolving Facility, the
aggregate principal amount of all outstanding Loans and the aggregate undrawn amount of all Letters of Credit outstanding on such date, after giving effect to the applicable borrowing or issuance or renewal of a Letter of Credit, shall not exceed
the Revolver Loan Cap; and (iv) no material adverse effect shall exist or result from such borrowing or issuance.
		
	 REPRESENTATIONS AND
 WARRANTIES:
	  	Limited to: existence, qualification and power; authorization; no contravention; governmental authorization and other consents; binding effect; financial statements; no material
adverse effect; litigation; no default; ownership of property; liens; environmental compliance; insurance; taxes; ERISA compliance; subsidiaries; equity interests; margin regulations; investment company act; disclosure; compliance with laws;
intellectual property, licenses, etc.; labor matters; security documents; solvency; deposit accounts; credit card arrangements; brokers; customer and trade relations; material contracts; and casualty (which, in each case, will be subject to material
ability thresholds, baskets and customary exceptions and qualifications to be mutually agreed upon).
		
	COVENANTS:	  	 Limited to the following:
  

The Borrowers shall at all times maintain Excess Availability equal to at least the greater of (i) 10% of the Loan Cap; and (ii) $9,500,000.

 
 Affirmative covenants: financial statements; certificates, other information;
notices; payment obligations; preservation of existence, etc.; maintenance of properties; maintenance of insurance; compliance with laws; books and records, accountants; inspection rights; use of proceeds; additional loan parties; cash management;
information regarding the collateral; physical inventories; environmental laws; further assurances; compliance with terms of leaseholds; material contracts; and credit card processors (which, in each case, will be subject to material ability
thresholds, baskets and customary exceptions and qualifications to be mutually agreed upon).
  
 Negative covenants: liens; investments; indebtedness, disqualified stock; fundamental changes; dispositions; restricted payments (provided that the Loan Documentation shall permit, without condition, the
payment of all consideration under the Merger Agreement including consideration payable after the Closing Date, provided that such payments are made in accordance with the terms and conditions of the Merger Agreement and solely from the Payment Fund
(as such term is defined in the Merger Agreement) and/or another segregated account funded on the Closing Date solely for the purpose of the payment of the consideration under the Merger Agreement, it being understood that any amounts in the Payment
Fund or any such other segregated account that are no longer required for the payment of the consideration under the Merger Agreement may be transferred to another account of the Borrowers); prepayments of

  
 10 

			
		  	 indebtedness; change in nature of business; transactions with affiliates; burdensome agreements; use of proceeds; amendment of material
documents; fiscal year; and deposit accounts, credit card processors (which, in each case, will be subject to material ability thresholds, baskets and customary exceptions and qualifications to be mutually agreed upon).

 
 The Loan Documentation shall, in any event, (a) permit dividends, stock repurchases,
prepayments of subordinated debt, and investments if Payment Conditions are satisfied, and (b) permit non-hostile acquisitions subject to the provisions of the Existing Credit Agreement.

		
	FINANCIAL COVENANTS:	  	None
		
	FINANCIAL REPORTING:	  	The Borrowers shall provide the financial reporting usual and customary for transactions of this type, including those consistent with the Existing Credit Agreement, as well as:
consolidated monthly financial statements (within 30 days after each fiscal quarter end), including balance sheet, income statement, statement of cash flow and borrowing base availability.
		
	 COLLATERAL

MONITORING:
	  	The Agent shall conduct two field examinations and two inventory appraisals per year at the expense of the Borrowers; or if Excess Availability is less than 25% of the Loan Cap at
any time the Agent shall conduct three field examinations and three inventory appraisals per year at the expense of the Borrowers. The Agent shall conduct one intellectual property appraisal per year at the expense of the Borrowers or, if the
license revenue stream from eligible intellectual property is less than $40,000,000 for the preceding twelve month period, the Agent shall conduct 2 intellectual property appraisals per year at the expense of the Borrowers. The Agent shall conduct
one real estate appraisal per year at the expense of the Borrowers. The Agent may conduct such other field examinations and appraisals at the expense of the Lenders, provided that if an default or event of default exist such field examinations and
appraisals shall be at the expense of the Borrowers. All examiners and appraisers shall be acceptable to the Term Loan Agent.
		
	CASH DOMINION:	  	The Borrowers and Guarantors will implement cash management procedures customary for facilities of this type and reasonably satisfactory to the Agent, including, but not limited to,
customary lockbox arrangements and blocked account agreements, which will provide for the Agent to have control of all deposit and securities accounts as required by the Agent. If, at any time (i) Excess Availability is less than the greater of (A)
$17,500,000 or (B) twenty percent (20%) of the Loan Cap or (ii) a default or event of default exist (“Cash Dominion Event”), cash receipts shall be forwarded to a deposit account (“Collection Account”)
which is subject to a control agreement in favor of the Agent and such receipts shall be applied daily in reduction of the obligations under the Senior Credit Facility (as set forth in the Mandatory Prepayment Section of this summery of terms
and conditions). A Cash Dominion Event shall continue unless and until the Event of Default is waived and Excess Availability exceeds the greater of (i) $17,500,000; or (ii) twenty percent (20%) of the Loan Cap for 60 consecutive
days.

  
 11 

			
	COLLATERAL REPORTING:	  	Borrowing Base Certificates and supporting documentation shall be delivered monthly ten (10) days after the end of each month; provided, that at anytime (i) Excess Availability is
less than twenty five per cent (25%) percent of the Loan Cap or (ii) a default or event of default exist Borrowing Base Certificates will be delivered weekly on Wednesday of each week for the immediately preceding Saturday.
		
	EVENTS OF DEFAULT:	  	Limited to: non-payment; specific covenants; other defaults; representations and warranties; cross-default; insolvency proceedings, etc.; inability to pay debts, attachment;
judgments; ERISA; invalidity of loan documents; change of control; cessation of business; loss of collateral; breach of contractual obligation; indictment; guaranty; and enforceability of subordination provisions (in each case, subject to grace
periods and cure rights, where applicable, to be mutually agreed).
		
	ASSIGNMENTS AND PARTICIPATIONS:	  	 Subject to the consents described below (which consents will not be unreasonably withheld or delayed), each Lender will be permitted to
make assignments to other financial institutions in respect of the Senior Revolving Facility in a minimum amount equal to $5,000,000, and in respect of the Term Loan Facility in a minimum amount equal to $2,500,000.

 
 Consents: The consent of the Borrowers will be required unless (i) a
payment or bankruptcy Event of Default has occurred and is continuing or (ii) the assignment is to a Lender, an affiliate of a Lender or an Approved Fund (as such term shall be defined in the loan documentation); provided, however, the
Agent shall be permitted to assign up to $35,000,000 of the Senior Revolving Facility without the consent of the Borrowers, but Agent agrees any such assignments shall be made in consultation with the Borrowers. The consent of the Administrative
Agent will be required for any assignment to an entity that is not a Lender, an affiliate of a Lender or an Approved Fund. The consent of the Issuing Bank and the Swingline Lender will also be required for any assignment under the Senior Revolving
Facility.
  
 Assignments Generally: An assignment fee (to be
paid by the assigning Lender) in the amount of $3,500 will be charged with respect to each assignment unless waived by the Administrative Agent in its sole discretion. Each Lender will also have the right, without consent of the Borrowers or the
Administrative Agent, to assign as security all or part of its rights under the loan documentation to any Federal Reserve Bank.
  

Participations: Lenders will be permitted to sell participations with voting rights limited to significant matters such as changes in
amount, rate, maturity date and releases of all or substantially all of the collateral securing the Senior Credit Facility or the guaranties of the Borrowers’ obligations made by the Guarantors.

  
 12 

			
	 WAIVERS AND

AMENDMENTS:
	  	Usual and customary for Agent’s and Term Loan Agent’s transactions of this type, which shall include provisions that certain amendments, waivers, and/or exercise of
certain rights will require consent of Lenders holding a majority of Term Loan Facility, Lenders holding a majority of Senior Revolving Facility, Lenders holding a majority of Senior Credit Facility, or unanimous consent of all Lenders, as
applicable. The Loan Documentation will contain usual and customary amend and extend and “yank a bank” provisions.
		
	INDEMNIFICATION:	  	The Borrowers will indemnify and hold harmless the Agent, Term Loan Agent, the Lenders and their respective affiliates, directors, officers, employees, agents and advisors from and
against all losses, claims, damages, liabilities and expenses arising out of or relating to the Senior Credit Facility, the Borrowers’ use of loan proceeds or the commitments, including, but not limited to, reasonable attorneys’ fees and
settlement costs (with usual and customary exclusions for losses arising from the gross negligence or willful misconduct of such indemnified party). This indemnification shall survive and continue for the benefit of all such persons or
entities.
		
	GOVERNING LAW:	  	State of New York.
		
	 PRICING/FEES/

EXPENSES:
	  	As set forth in Addendum I.
		
	COUNSEL TO AGENT:	  	Choate, Hall & Stewart, LLP
		
	 COUNSEL TO TERM LOAN
 AGENT:
	  	Riemer & Braunstein, LLP
		
	OTHER:	  	Each of the parties shall (i) waive its right to a trial by jury and (ii) submit to New York jurisdiction. The Loan Documentation will contain customary increased cost, withholding
tax, capital adequacy and yield protection provisions.

  
 13 

 ADDENDUM I 
 PRICING, FEES AND EXPENSES 
  

			
	INTEREST RATES:	  	 The interest rates per annum applicable to the Senior Revolving Facility will be (i) (a) LIBOR plus (b) the Applicable Margin (as
hereinafter defined) or, at the option of the Borrowers, (ii) (a) the Base Rate (to be defined as the highest of (x) the Wells Fargo Bank, National Association’s prime rate, (y) the Federal Funds rate plus 0.50%, or (z) LIBOR for an interest
period of one month plus 1.00%) plus (b) the Applicable Margin. “Applicable Margin” means a percentage per annum to be determined in accordance with the applicable pricing grid set forth below, based on Excess
Availability.
  
 The interest rate per annum applicable to the Term Loan
Facility will be (i) (a) LIBOR (which shall not be less than 1% per annum) plus (b) 8.50% or, at the option of the Borrowers, (ii) (a) the Base Rate (to be defined as the highest of (x) the Wells Fargo Bank, National Association’s prime
rate, (y) the Federal Funds rate plus 0.50%, or (z) LIBOR (which, in all events, shall not be less than 1.00%) for an interest period of one month plus 1.00%) plus (b) 7.50%.

 
 The Borrowers may select interest periods of one, two, three or six months for LIBOR
loans, subject to availability. Interest on LIBOR loans shall be payable at the end of the selected interest period, but no less frequently than quarterly. Interest on Base Rate loans shall be payable on the first day of each calendar
month.
  
 During the continuance of any Event of Default under the loan
documentation with respect to the Senior Revolving Facility, the Applicable Margin on obligations owing under the loan documentation shall be calculated in accordance with Section 2.08 of the Existing Credit Agreement.

 
 During the continuance of any Event of Default under the loan documentation with
respect to the Term Loan Facility, the Applicable Margin on obligations owing under the loan documentation shall increase by 2% per annum.

		
	COMMITMENT FEE:	  	Commencing on the Closing Date, a commitment fee shall be payable on the average daily unused portions of the Senior Revolving Facility at the rate of 0.375% per annum. Such fee
shall be payable monthly in arrears, commencing on the first monthly payment date to occur after the Closing Date.
		
	LETTER OF CREDIT FEES:	  	Letter of Credit fees shall be payable on the maximum amount available to be drawn under each outstanding Letter of Credit at a rate per annum equal to (a) with respect to standby
Letters of Credit, the Applicable Margin from time to time applicable to LIBOR loans, and (b) with respect to documentary Letters of Credit, the Applicable Margin from time to time applicable to LIBOR loans less 0.50%. Such fees will be payable
monthly in arrears, commencing on the first monthly payment date to occur after the Closing Date.

  
 14 

 PRICING GRID 
 SENIOR REVOLVING FACILITY 
  

											
	 Level
	  	 Average Monthly

Excess Availability
	  	Applicable Margin for
LIBOR Loans / Letter
of Credit Fees	 	 	Applicable Margin
for Base Rate Loans	 
	 I
	  	Greater than or equal to $65,000,000	  	 	1.75	% 	 	 	0.75	% 
	 II
	  	Less than $65,000,000, but greater than or equal to $35,000,000	  	 	2.00	% 	 	 	1.00	% 
	 III
	  	Less than 35,000,000	  	 	2.25	% 	 	 	1.25	% 

 Pricing to be set at Level II for the first 90 days after the Closing Date. 

 

			
	 CALCULATION OF

INTEREST AND FEES:
	  	All calculations of interest and fees shall be made on the basis of actual number of days elapsed in a 360 day year (or, in the case of Loans bearing interest at a rate based on the
Base Rate, 365 or 366 days, as applicable), and changes to the pricing grid level shall be based on average daily Excess Availability for the preceding fiscal month for which the calculation is being made.
		
	 COST AND YIELD

PROTECTION:
	  	Customary for transactions and facilities of this type, including, without limitation, in respect of breakage or redeployment costs incurred in connection with prepayments, changes
in capital adequacy and capital requirements or their interpretation, illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or other taxes.
		
	EXPENSES:	  	The Borrowers will pay all “Expenses” (as defined in the Commitment Letter) in accordance with the terms of the Commitment Letter. The Borrowers will also pay the
reasonable out-of-pocket expenses of the Agent, Term Loan Agent, and Term Commitment Parties, and their affiliates in connection with the enforcement of any of the Loan Documentation.
		
	DEPOSIT:	  	Within two business days of the Borrowers acceptance of these summary terms and conditions, the Borrowers shall pay the Agent, for the benefit of the Agent and Term Loan Agent, the
amount of $75,000 as an initial expense deposit to be applied toward the fees, costs and expenses, including reasonable legal fees, previously incurred and to be incurred in connection with the documentation of the Senior Revolving Facility and the
Term Loan Facility.

  
 15

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